Tom Peters
Excellence:
15H (8H)
The
“Theory of Everything”
National Business Growth Summit
15 February 2011/Sydney Convention Center
“Business has to give
people enriching,
rewarding lives … or
it's simply not worth
doing.”
—Richard Branson
The Moral Basis For
& societal Role of
Enterprise.
Organizations
exist to serve.
Period.
Leaders live to
serve. Period.
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
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 longshots (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.”
Joe J. Jones
1942 – 2011
Net Worth
$21,543,672.48
“In a way, the world is a great liar.
It shows you it worships and admires
money, but at the end of the day it doesn’t.
It says it adores fame and celebrity, but it
doesn’t, not really. The world admires, and
wants to hold on to, and not lose,
goodness. It admires virtue. At the end it
gives its greatest tributes to generosity,
honesty, courage, mercy, talents well used,
talents that, brought into the world, make
it better. That’s what it really admires.
That’s what we talk about in eulogies,
because that’s what’s important. We don’t
say, ‘The thing about Joe was he was rich!’
We say, if we can …
“We say, if we can …
‘The thing about
Joe was he took
good care of
people.’”
—Peggy Noonan, “A Life’s Lesson,” on the astounding response to the passing of Tim Russert ,
The Wall Street Journal, June 21-22, 2008
Four [really]
First things
Before First
Things …
If the regimental commander lost most of his
2nd lieutenants and 1st lieutenants and captains
If he
lost his sergeants it
would be a
catastrophe. The Army and the
and majors, it would be a tragedy.
Navy are fully aware that success on the
battlefield is dependent to an extraordinary
degree on its Sergeants and Chief Petty
Officers. Does industry have the same
awareness?
#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
E.g.: Do you have the ...
ABSOLUTE BEST
TRAINING PROGRAM
IN THE INDUSTRY ...
(or some subset thereof)
for first-line supervisors?
Suggested addition to your statement of Core
“We are obsessed with
developing a cadre of 1st line
managers that is second to
none—we understand that this
cadre per se is arguably one of
our top two or three most
important ‘Strategic Assets.’”
Values:
XFX = #1*
*Cross-Functional eXcellence
Never
waste a
lunch!
% XF
lunches*
Measure! Monthly! Part of
*
evaluation! [The PAs Club.]
“XFX
Social
Accelerators.”
1. EVERYONE’s [more or less] JOB #1: Make friends in other functions!
(Purposefully. Consistently. Measurably.)
2. “Do lunch” with people in other functions!! Frequently!! (Minimum
10% to 25% for everyone? Measured.)
3. Ask peers in other functions for references so you can become
conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMNism.)
4. Invite counterparts in other functions to your team meetings.
Religiously. Ask them to present “cool stuff” from “their world” to your
group. (B-I-G deal; useful and respectful.)
5. PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO
ACKNOWLEDGE—PRIVATELY AND PUBLICLY. (Bosses: ONCE A DAY …
make a short call or visit or send an email of “Thanks” for some sort of
XFX gesture by your folks and some other function’s folks.)
6. Present counterparts in other functions awards for service to your
group. Tiny awards at least weekly; and an “Annual All-Star Supporters
[from other groups] Banquet” modeled after superstar salesperson
banquets.
7. Discuss—A SEPARATE AGENDA ITEM—good and problematic acts of
cross-functional co-operation at every Team Meeting.
“XFX
Social
Accelerators.”
8. When someone in another function asks for assistance, respond
with … more … alacrity than you would if it were the person in the
cubicle next to yours—or even more than you would for a key external
customer. (Remember, XFX is the key to Customer Retention which is
in turn the key to “all good things.”)
9. Do not bad mouth ... “the damned accountants,” “the bloody HR
guy.” Ever. (Bosses: Severe penalties for this—including public tonguelashings.)
10. Get physical!! “Co-location” may well be the most powerful “culture
change lever.” Physical X-functional proximity is almost a …
guarantee … of remarkably improved co-operation—to aid this one
needs flexible workspaces that can be mobilized for a team in a flash.
11. Formal evaluations. Everyone, starting with the receptionist,
should have a significant XF rating component in their evaluation. (The
“XFX Performance” should be among the Top 3 items in all managers’
evaluations.)
12. Demand XF experience for, especially, senior jobs. For example,
the U.S. military requires all would-be generals and admirals to have
served a full tour in a job whose only goals were cross-functional
achievements.
13. XFX is … PERSONAL … as well as about organizational
effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to
personal success—in terms of organizational career, freelancer/Brand
You, or as entrepreneur.
Everyone,
starting with the
receptionist, should have a
significant XFX rating
component in their
evaluation. (The “XFX
Performance” should be
among the Top 3 items in all
managers’ evaluations.)
Formal evaluations.
Suggested addition to your statement of Core
“We will not rest until
seamless cross-functional
integration/communication
has become our primary
source of value-added.
EXCELLENCE in crossfunctional integration shall
become a daily operational
passion for 100% of us.”
Values:
“Incidentally” …
Women’s Negotiating Strengths
*Ability to put themselves in their
counterparties’ shoes
*Comprehensive, attentive, and detailed
communication style
*Empathy that facilitates trust-building
*Curious and attentive listening
*Less competitive attitude
*Strong sense of fairness and ability to persuade
*Proactive risk manager
*Collaborative decision-making
Source: Horacio Falcao, cover story, World Business, “Say It Like a
Woman: Why the 21st-century negotiator will need the female touch”
“The doctor
interrupts
after …*
*Source: Jerome Groopman, How Doctors Think
18 …
seconds!
[An obsession with] Listening is ... the ultimate mark
of
Listening
Listening
Listening
Listening
Listening
Listening
Listening
is
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Listening
Listening
Listening
Listening
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the heart and soul of Engagement.
the heart and soul of Kindness.
the heart and soul of Thoughtfulness.
the basis for true Collaboration.
the basis for true Partnership.
a Team Sport.
a Developable Individual Skill.* (*Though women
are far better at it than men.)
the basis for Community.
the bedrock of Joint Ventures that work.
the bedrock of Joint Ventures that grow.
the core of effective Cross-functional
Communication* (*Which is in turn Attribute #1 of
organizational effectiveness.)
[cont.]
Respect
.
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
is
is
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EXECUTION
the engine of superior
.
the key to making the Sale.
the key to Keeping the Customer’s Business.
Service.
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
that from any other single activity.)
Listening is … the bedrock which underpins a Commitment to
EXCELLENCE
Suggested addition to your statement of Core
“We are Effective
Listeners—we treat
Listening EXCELLENCE as
the Centerpiece of our
Commitment to Respect
and Engagement and
Community and Growth.”
Values:
*Listening is of the
utmost … strategic
importance!
*Listening is a proper …
core value !
*Listening is …
trainable !
*Listening is a …
profession !
1/8 seconds
20 years
Date: 1/1/11
Activity: Boomers start
turning 65
Rate: 7.5 per minute/
10,000 per day/
4,000,000 per year
Duration: 20 years
Impacted: EVERYTHING
!!!!!!!!!!!!!!!!!
“People turning 50
more
than half of
today have
their adult life
ahead of them.”
—Bill Novelli,
50+: Igniting a Revolution to Reinvent America
55+ > 55-*
*“[55-plus] are more active in online
finance, shopping and entertainment than
those under 55?”—Forrester Research
(USA Today, 8 January 2009)
44-65:
“New
Customer
Majority”
Source: Ageless Marketing, David Wolfe & Robert Snyder
“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
Median Household Net Worth
<35: $7K
35-44: $44K
45-54: $83K
55-64: $112K
65-69: $114K
70-74: $120K
>74: $100K
Source: U.S. Census
Four [really]
First things
Before First
Things …
Four First Things Before First Things:
Core Values/Surpassing Business Assets/
Sustainable Competitive Advantages
1. EXCELLENCE … First-line management
cadre as engine of enterprise
performance!
2. EXCELLENCE … Value-added opportunity #1
through seamless
cross-functional integration!
3. EXCELLENCE … “Strategic” listening as
peerless enterprise
differentiator!
4. EXCELLENCE … Seizing the stupendous
aging market opportunity!
Excellence:
The
15H
“Theory of Everything”
14 February 2011/Tom Peters
All you need to know …
Hilton
Hiram
Howard
Herb
Henry I
Henry II
Hamel
Hill
Harley
Handy
Hartville
Heather
Hewlett
Hsieh
Hillis
Conrad Hilton …
Conrad Hilton, at a gala
celebrating his career,
“What was the
most important lesson
you’ve learned in your
long and distinguished
career?” His answer …
was asked,
“remember
to tuck the
shower curtain
inside the
bathtub”
is
“Execution
strategy.”
—Fred Malek
“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
“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
it
is because they try to
be clever.”
generals make blunders;
—Napoleon
All you need to know …
Hilton
Hiram
Howard
Herb
Henry I
Henry II
Hamel
Hill
Harley
Handy
Hartville
Helgesen
Hewlett
Hsieh
Hillis
“I’m always stopping by our
at least 25
a week. I’m also in other
stores—
places: Home Depot, Whole Foods,
Crate & Barrel. … I try to be
a sponge to pick up as much
as I can. …” —Howard Schultz
Source: Fortune, “Secrets of Greatness”
MBWA
Managing By Wandering Around/HP
50%.
Un-scheduled.
Source: Dov Frohman
You = Your
calendar*
*The calendar
never lies.
“Dennis, you need a …
‘To-don’t ’
List !”
Don’t >
Do*
* “Don’ting” must be systematic >
WILLPOWER
“If there is any one
‘secret’ to effectiveness,
it is concentration.
Effective executives do
and
they do one thing
at a time.”
first things first …
—Peter Drucker
“It’s always
showtime.”
—David D’Alessandro, Career Warfare
“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
All you need to know …
Hilton
Hiram
Howard
Herb
Henry I
Henry II
Hamel
Hill
Harley
Handy
Hartville
Helgesen
Hewlett
Hsieh
Hillis
“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 AA’s Annual Meeting)
"If you want staff to
give great service,
give great service to
staff."
—Ari Weinzweig, Zingerman's
“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
renovation.’
Instead of redoing bathrooms, dining
rooms, and guest rooms, we gave employees new uniforms, bought flowers and
Our focus was
totally on the staff. They were
the ones we wanted to make
happy.
fruit, and changed colors.
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.
Zabar’s
Parking
Garage*
*Retail Superstars: Inside the 25 Best Independent Stores in America, by George Whalin
List 5 (10?) (2?)
“Zabar’s garage”
equivalents
in your
organization. …
“We are a
‘Life Success’
Company.”
Dave Liniger, founder, RE/MAX
“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
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
… 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.
7 Steps to Sustaining Success
You take care of the people.
The people take care of the service.
The service takes care of the customer.
The customer takes care of the profit.
The profit takes care of the re-investment.
The re-investment takes care of the re-invention.
The re-invention takes care of the future.
(And at every step the only measure is EXCELLENCE.)
7 Steps to Sustaining Success
You take care of the people.
The people take care of the service.
The service takes care of the customer.
The customer takes care of the profit.
The profit takes care of the re-investment.
The re-investment takes care of the re-invention.
The re-invention takes care of the future.
(And at every step the only measure is EXCELLENCE.)
“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?”
Promotion Decisions
“life and
death
decisions”
Source: Peter Drucker, The Practice of Management
“A man should never
be promoted to a
managerial position if his
vision focuses on people’s
weaknesses rather than on
their strengths.”
—Peter Drucker, The Practice of Management
Andrew Carnegie’s Tombstone Inscription …
Here lies a man
Who knew how to enlist
In his service
Better men than himself.
Source: Peter Drucker, The Practice of Management
“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 and 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
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
What do managers do for a living?
Help!
Right?
How many of us could call ourselves “professional helpers,” meaning that we have
studied—like a professional mastering her musical craft—“helping”? (Not many, I’d
judge.)
Ed Schein:
Helping: How to Offer, Give, and Receive Help
Last chapter: 7 “principles.” E.g.:
PRINCIPLE 2: “Effective Help Occurs When the Helping Relationship Is
Perceived to Be Equitable.
PRINCIPLE 4: “Everything You Say or Do Is an Intervention that
Determines the Future of the Relationship..
PRINCIPLE 5: “Effective Helping Begins with Pure Inquiry.
PRINCIPLE 6: “It Is the Client Who Owns the Problem.”*
“Client”
(*Love the idea that the employee is a
! Words matter!! Read a quote from NFL
player-turned lawyer-turned professional football coach, calling his players “my clients.”)
Employee as Client!
“Helping” is what we [leaders] “do” for a living!
STUDY/PRACTICE “helping” as you would neurosurgery!
(“Helping” is your neurosurgery!)
Exhibitions of
bravery: All hail
the … TRAINING
… department.
No company ever
Expended too much
thought/Effort/
$$$$ on training!*
*ESPECIALLY … small company
Source: Container Store/Goal: increase average sale per shopper
All you need to know …
Hilton
Hiram
Howard
Herb
Henry I
Henry II
Hamel
Hill
Harley
Handy
Hartville
Helgesen
Hewlett
Hsieh
Hillis
“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)
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.
Instead: directly related to Staff
Interaction; directly correlated with
Employee Satisfaction
Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel
none!
“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
Kindness is
free.
budget.
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.”
Source: Putting Patients First, Susan Frampton,
Laura Gilpin, Patrick Charmel
(Griffin Hospital/Derby CT; Plantree Alliance)
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.
Understands 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.
“The deepest
human need is
the … need to be
appreciated.”
—William James
“One kind
word can
warm three
winter
months.”
– Japanese Proverb
“Ladies and
gentlemen serving
ladies and
gentlemen.”
—Ritz Carlton credo
“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.*
*divorce, loss of a BILLION $$$ aircraft sale, etc., etc.
THE PROBLEM IS
RARELY/NEVER THE
PROBLEM. THE
RESPONSE TO THE
PROBLEM INVARIABLY
ENDS UP BEING THE
REAL PROBLEM.*
*PERCEPTION IS ALL THERE IS!
Acquire vs. maintain:
5X*
*Hence: Service >> Sales (!!)
With a new and forthcoming policy on
Toro, the lawn
mower folks, reduced the
average cost of settling a
claim from $115,000 in 1991
to $35,000 in 2008—and the
company hasn’t been to trial
in the last 15 years!
apologies …
Source: John Kador, Effective Apology
“Will you guys
please come up
front. Will you
guys please move
to the rear.”
Service >
Sales
All you need to know …
Hilton
Hiram
Howard
Herb
Henry I
Henry II
Hamel
Hill
Harley
Handy
Hartville
Helgesen
Hewlett
Hsieh
Hillis
2,000,000
7X.
7:30A-8:00P.
F12A.
7:30AM = 7:15AM.
8:00PM = 8:15PM.
Conveyance: Kingfisher Air
Location: Approach to New Delhi
“May I
clean your
glasses,
sir?”
BEGINS
(and ENDS)
It
in the …
parking
lot*
*Disney
Carl’s
StreetSweeper
<TGW
and …
>TGR
[Things Gone WRONG-Things Gone RIGHT]
TGRs.
Manage ‘em.
Measure ‘em.
“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
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
Design is the
only thing that
differentiates one
product from another in
the marketplace.” —Norio Ohga
and features.
“Design is
treated like
a religion at
BMW.” —Fortune
Hypothesis:
DESIGN is
the principal
difference
between love
and hate!*
*Not “like” and “dislike”
Design is …
never
neutral.
O*
C
*Chief
Design
Officer
Beauty.
Grace.
Clarity.
Simplicity.
CGRO*
*CGRO/ Chief Grunge Removal Officer
(CDC/ Chief of De-Complexification)
(CAO/ Chief Anti-systems Officer)
(CBSEO/ Chief BS Eradication Officer)
All you need to know …
Hilton
Hiram
Howard
Herb
Henry I
Henry II
Hamel
Hill
Harley
Handy
Hartville
Helgesen
Hewlett
Hsieh
Hillis
“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
MittELstand*
*“agile creatures darting between
the legs of the multinational
monsters"
(Bloomberg BusinessWeek, 10.10)
Larry Janesky
Rocks …
*Basement Systems Inc.
(Seymour CT)
*Dry Basement Science
(115,000 copies!)
*1990: $0; 2003: $13M;
2008:
$62,000,000
The Red
Carpet
Store
(Joel Resnick/Flemington NJ)
Hartville Hardware
pop <2,500
100,000 square feet (plus catalog,
Hartville, Ohio,
Web serve location)
Family run
“One of biggest and best tool merchants
in USA”
Customers from 100s of miles away
Renowned semi-annual tool sale (12,000
transactions at recent incarnation)
Anchor for 110-independent shops @
Hartville MarketPlace
Staff are premier trainers
Etc.
Etc.
Source: Retail Superstars: Inside the 25 Best Independent Stores in America, George Whalin
Retail Superstars:
Inside the 25 Best
Independent Stores
in America
—by George Whalin
Lessons [for Everyone] from Retail Superstars!
1. Courses/Workshops/Demos/Engagement
2. Instructional guides/material/books
3. Events & Events & Events …
4. Create “Community” of customers
5. Destination
6. Women-as-customer
7. Staff selection/training/retention (FANATICISM)
8. Fanaticism/Execution
9. Design/Atmospherics/Ambience
10. Tableaus/Products-in-use
11. Flow/starts & finishes (Disney-like)
12. 100% orchestrated experience/focus: “Moments of truth”
13. Constant experimentation/Pursue Little BIG Things
14. Social Media/Ongoing conversation with customers
15. Community star
16. Aim high
17. PASSION
Billboard …
ONLY 262 MILES TO
BUC-EE’S
YOU CAN HOLD IT.*
*“If I weren’t already married, I’d have my wedding
there.” —Dallas Morning News Metro blogger
YOU CAN
HOLD IT.
“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
All you need to know …
Hilton
Hiram
Howard
Herb
Henry I
Henry II
Hamel
Hill
Harley
Handy
Hartville
Heather
Hewlett
Hsieh
Hillis
“Forget China, India
and the Internet:
Economic Growth Is
Driven by
Women.”
Source: Headline, Economist
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 confident that they have a winning
strategy when it comes to women. Consider Dell’s …”
Source: Michael Silverstein and Kate Sayre, “The Female Economy,” HBR, 09.09
“Women are
the majority
market”
—Fara Warner/The Power of the Purse
Women as Decision Makers/Various sources
Home Furnishings … 94%
Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)
Houses … 91%
D.I.Y. (major “home projects”) … 80%
Consumer Electronics … 51% (66% home computers)
Cars … 68% (influence 90%)
All consumer purchases …
83% *
Bank Account … 89%
Household investment decisions … 67%
Small business loans/biz starts … 70%
Health Care …
80%
*In the USA women hold >50% managerial positions including >50% purchasing officer
positions; hence women also make the majority of commercial purchasing decisions.
The Perfect Answer
Jill and Jack buy
slacks in black…
Cases! Cases! Cases!
McDonald’s
(“mom-centered” to F as
“majority consumer”; not via kids)
Home Depot (“Do it [everything!] Herself”)
P&G (more than F as “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
“Women don’t ‘buy’
They
‘join’ them.”
brands.
—Faith Popcorn, EVEolution
2.6 vs.
“AS LEADERS,
WOMEN
RULE:
New Studies find that
female managers outshine their male
counterparts in almost every measure”
TITLE/ Special Report/ BusinessWeek
“Power Women 100”/Forbes 10.25.10
26 female CEOs of Public Companies:
Vs. Men/Market:
+28% *
(*Post-appointment)
Vs. Industry:
+15%
*Women
*Women
*Women
*Women
decide.
save.
spend.
rule.
“Women Beat
Men at Art of
Investing”
Source: Headline, Miami Herald, reporting on a study by Profs. Terrance Odean and
(Cause: Guys are “in and out” of
stocks more often; women choose carefully
and hold on for the long term)
Brad Barber, UC Davis
All you need to know …
Hilton
Hiram
Howard
Herb
Henry I
Henry II
Hamel
Hill
Harley
Handy
Hartville
Heather
Hewlett
Hsieh
Hillis
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
“Insanely Great”
Steve Jobs
“Radically thrilling”
BMW
“Astonish me!”
(Sergei Diaghlev)
“Build something great!”
(Hiroshi Yamauchi)
“Make it immortal!”
(David Ogilvy).
Raise your sights!
Blaze new trails!
Compete with the
immortals!
—David Ogilvy, on Ogilvy & Mather’s corporate culture
Wanted by Ogilvy & Mather
International
Trumpeter
Swans
—David Ogilvy
“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!
There is more
than one way to
skin a cat!*
REQUIRES
*Every project
(if you’re smart) an
outside look by one/some Seriously Weird Cat/s
—in pursuit of whacked-out options.
14,000
20,000
14,000/eBay
20,000/Amazon
30/Craigslist
Where’s your
“Craig’s List
[WOW!]
option”???
The 15H Theory of Everything
*Conrad Hilton/Sweat the details!/EXECUTION is Strategy!
*Hiram Ulysses Grant/RELENTLESS!!!/OFFENSE!!!
*Howard Schultz/MBWA!!!!/Best LISTENER wins!
*Herb Kelleher/It’s always all about the PEOPLE!!!!!!!!!!!!!!!!!!!!
*Henry Clay/Big payoff from SMALL COURTESIES!
*H. Ross Perot/Most TRIES & SCREWUPS are alpha & omega!
*Gary Hamel/You are who you HANG OUT with!
*Vernon Hill/“TGRs”! [Things Gone RIGHT]/Little BIG Things!
*Harley Davidson/EXPERIENCES to die for!/Feel the LOVE!
*Charles Handy/Everything is DESIGN!
*Hartville Hardware/MONOPLY through EXCELLENCE!
*Heather Schultz/WOMEN buy!/WOMEN roar!/WOMEN rule!
*Hewlett Packard/Make our customer a RAGING SUCCESS!
*Tony Hsieh/WOW!/Radically thrilling!/Insanely great!
*Danny Hillis/YEOW! The “singularity” may be upon us!
“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)