To appreciate this presentation [and insure that it is not a mess], you need Microsoft fonts: NOTE: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” Tom Peters’ EXCELLENCE. ALWAYS. Action. New Master/05 September 2008 Part 7.2 Ten Parts P1.1, P1.2, P1.3, P1.4/Generic P2/Leadership P3/Talent P4/“Value-added Ladder” P5/“New” Markets P6/“The Equations” P7.1/Implementation P7.2/Action P8/13 “Guru Gaffes” P9/Health“care” P10/“The Lists” Tom Peters’ EXCELLENCE. ALWAYS. Action. New Master/06 September 2008 This presentation has taken me years 40+ to write.* *Twenty-three-year-old Navy Seabee in Vietnam to 40-year-old coauthor of In Search of Excellence from Palo Alto-Silicon Valley to 65-year-old “management guy”/“teller of tales” in Vermont “A year from now you may wish You had started today.” —Karen Lamb “The secret of getting ahead is getting started.” — Agatha Christie “Action is the foundational key of all success.” —Picasso BLAME NO one. EXPECT NOTHING. DO SOMETHING. Source: Locker room sign posted by football coach Bill Parcells “To Be somebody or to Do something” BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) “The secret to having good ideas is to have a lot of ideas, then throw the bad ones away.” —Linus Pauling “Intelligent people can always come up with intelligent reasons to do nothing.” —Scott Simon “Ninety percent of what we call ‘management’ consists of making it difficult for people to get things done.” – Peter Drucker EXCELLENCE. CIRCA 1982. A BIAS FOR ACTION. “We design intelligent strategies— but they fail or fall miles short of their apparent potential for one reason—poor organizational alignment which in turn leads to a gaping ‘implementation deficit.’ Tom, I want you to get a handle on the best thinking and best practices on ‘organization effectiveness’ from around the world.” —Ron Daniel, Managing Director, McKinsey & Co., 1977, charge to the team (Tom Peters & Jim Bennett) that five years later produced In Search of Excellence (Tom Peters & Bob Waterman) Daniel was McKinsey’s new Managing Director in 1977. Under competitive threat from the upstart Boston Consulting Group, Daniel decided to re-stock McKinsey’s intellectual capital (as we call it today) inventory. He started “the Big Project” in New York (headquarters) …a fresh look at business strategy. As an afterthought, more or less, he started a little project on the way organizations work—and called on me, junior but fresh from having just finished what Stanford business school organizations guru Professor Gene Webb called “the first Ph.D. dissertation on implementation per se.” Guided by my designated overseer, Jim Bennett, I began an around-the-world tour searching for the most innovative ideas on the subject. (Two decades later, the spinoffs from that “little” project had generated what became McKinsey’s biggest “practice”—Organization Effectiveness.) 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” After two years of research, I produced a “famous” presentation with its title taken from the world of football: “Two Yards and a Cloud of Dust.” The idea was a focus on the “grubby basics” that underlie a winning obsession with execution. The presentation eventually morphed into In Search of Excellence. And, in turn, the centerpiece of the book was our so-called “eight basics.” The first of these was labeled “a bias for action.” “too much talk, too little do” TP/BW on BigCompany Sin #1: “Operations is policy.” —Fred Malek (1974) “Execution is strategy.” —TP (1983) “Never forget implementation boys. In our work it’s what I call the ‘missing 98 percent’ of the client puzzle.” —Al McDonald, former Managing Director, McKinsey & Co, to a project team that included TP EXCELLENCE. CIRCA 2008. A BIAS FOR ACTION. 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” A quarter of a century has passed since In Search of Excellence, but as the pace of change accelerates madly, “a bias for action” is, if possible, more important than ever—and as elusive as ever in sizeable organizations. (For that matter, the rest of the “eight basics” are still just that—basic and as about as relevant as ever.) EXCELLENCE. INNOVATE. OR. DIE. I have said in many settings that, alas, but more or one forty less seriously, I have only had idea in the professional career … years of my ry it. Try it. Screw up. Try it. Try it. Try t. Try it. Try it. Try t. Try it. Screw it up rew it up. Try it. Tr . try it. Try it. Scre … and that one idea? He/she who has the most tries wins. Are there caveats? Of course! But more or less the person who proceeds by … try it … adjust it … try it again. And again & again & again. (And do it all at flank speed.) (As you’ll subsequently see, one wise commentator goes so far as to say, “Whoever makes the most mistakes wins.” I agree!) Jane Jacobs: Variety Exuberant vs. the Great Blight of Dullness. F.A. Spontaneous Discovery Process. Hayek: Joseph Schumpeter: the Gales of Creative Destruction. There are several grand philosophers who champion my view—and in whose footprints I humbly walk. Nobel prize winner F.A. Hayek, our foremost philosopher of free markets. (His writing was mostly done in the face of totalitarian planned economies.) Hayek called progress via free markets the “spontaneous discovery process.” (Most tries = Most innovation = Longterm economic excellence.) Urban philosopher Jane Jacobs flew in the face of centralizing urban planners—who brought us the debacle of high-rise public housing, among other things. She said the most vital communities were marked by “exuberant variety”—all sorts of uses mixed wildly together was the winning formula for quality of life and economic prowess. Economist Joseph championed the “gales of creative destruction” as the key to economic renewal. As I see it, each of these says, more or less, “most tries wins.” What makes God laugh? People making plans! "Life is what happens while you're busy making other plans.” —John Lennon “The secret of fast progress is inefficiency, fast and furious and numerous failures.” —Kevin Kelly “Active mutators in placid times tend to die off. They are selected against. Reluctant mutators in quickly changing times are also selected against.” —Carl Sagan & Ann Druyan, Shadows of Forgotten Ancestors do things. “We have a ‘strategic plan.’ It’s called doing things.” — Herb Kelleher do what needs to A man approached JP Morgan, held up an envelope, and said, “Sir, in my hand I hold a guaranteed formula for success, which I will gladly sell you for $25,000.” “Sir,” JP Morgan replied, “I do not know what is in the envelope, however if you show me, and I like it, I give you my word as a gentleman that I will pay you what you ask.” The man agreed to the terms, and handed over the envelope. JP Morgan opened it, and extracted a single sheet of paper. He gave it one look, a mere glance, then handed the piece of paper back to the gent. And paid him the agreed upon $25,000. 1. Every morning, write a list of the things that need to be done that day. 2. Do them. Source: Hugh MacLeod/tompeters.com/NPR try things. “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 Hizzonor and the Governator*: “The New Action Heroes” (Time/07.23.07) *Bloomberg, Schwarzenegger “This is so simple it sounds stupid, but it is amazing how few oil people really understand that you only find oil if you drill wells. You may think you’re finding it when you’re drawing maps and studying logs, but you have to drill.” Source: The Hunters, by John Masters, Canadian O & G wildcatter Dick (“Just build the damn thing.”) Dan vs. (“Don’t you know the difference between ‘tangible’ and ‘palpable’?”) “Experiment fearlessly” Source: BW0821.06, Type A Organization Strategies/ “How to Hit a Moving Target”—Tactic #1 "I think it is very important for you to do two things: act on your temporary conviction as if it was a real conviction; and when you realize that you are wrong, correct course very quickly.” —Andy Grove “We ground up more pig brains!”/ “We did more procedures” The True Logic* of Decentralization: 6 divisions = 6 “tries” 6 divisions = 6 DIFFERENT leaders = 6 INDEPENDENT “tries” = Max probability of “win” 6 divisions = 6 very DIFFERENT leaders = 6 very INDEPENDENT “tries” = Max probability of “far out”/”3-sigma” “win” *“Driver”: Law of Large #s SERIOUS PLAY Culture of Prototyping “Effective prototyping may the most valuable core competence an be innovative organization can hope to have.” —Michael Schrage Think about It!? Innovation = Reaction to the Prototype Source: Michael Schrage “You can’t be a serious innovator unless and until you are ready, willing and able to seriously play. ‘Serious play’ is not an oxymoron; it is the essence of innovation.” —Michael Schrage, Serious Play “Learn not to be careful.” —Photographer Diane Arbus to her students (Careful = The sidelines, from Harriet Rubin in The Princessa) “If it’s not fun you’re not doing it right.” —Fran Tarkenton “The key to a great painting is the nerve, after weeks of effort, to ‘bet the painting’ on the next brush stroke,” Master musician, San Francisco Screw. things. “Natural selection is death. ... Without huge amounts of death, organisms do not change over time. ... Death is the mother of structure. ... It took four billion years of death ... to invent the human mind ...” — The Cobra Event “The secret of fast progress is inefficiency, fast and furious and numerous failures.” —Kevin Kelly “The Silicon Valley of today is built less atop the spires of earlier triumphs than upon the rubble of earlier debacles.”—Newsweek/ Paul Saffo “FAIL, FAIL AGAIN. FAIL BETTER.” —Samuel Beckett “Fail . Forward. Fast.” High Tech CEO, Pennsylvania “Fail faster. Succeed Sooner.” David Kelley/IDEO Sam’s Secret #1! “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec “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) “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) Read This! Richard Farson & Ralph Keyes: Whoever Makes the Most Mistakes Wins: The Paradox of Innovation “[other] admirals more frightened of losing than anxious to win” On NELSON: try. Miss. READY. FIRE! “We are in a brawl with no rules.” Paul Allaire/Xerox: TP: “There’s [literally] only one Screw Around Vigorously! possible answer … Ideas. Plans. Actions. RAF RFA RFFFA RFFFA … FFFFA RAAAAAAAAAAA … IID DSS* INID DSS** *If In Doubt … Do Some S$%^ (stuff) **If Not In Doubt … Do Some S%*& Life 101: A 40-year Reflection Go on offense. Give everybody a shot. Decentralize. Try a bunch of stuff. Make it up as you go along. Get some stuff wrong. Laugh a lot. Get some stuff right. Become a “success.” Extract “lessons learned” or “best practices.” Thicken the Book of Rules for Success. Become evermore serious. Enforce the rules to increasingly tight tolerances. Go on defense. Install walls. Protect-at-all-costs today’s franchise. Centralize. Calcify. Install taller walls. Write more rules. Become irrelevant and-or die. Just say “no” to “no.” “Intelligent people can always come up with intelligent reasons to do nothing.” —Scott Simon “Andrew Higgins , who built landing craft in WWII, refused to hire graduates of He believed that they only teach you what you can’t do in engineering school. He engineering schools. started off with 20 employees, and by the middle of the war had 30,000 working for him. He turned out 20,000 landing craft. D.D. Eisenhower told me, ‘Andrew Higgins won the war for us. He did it without engineers.’ ” —Stephen Ambrose/Fast Company No try. No deal. “You miss 100% of the shots you never take.” —Wayne Gretzky Try. Try. Try. Try. try. Try. Try. Try. Try. try. Try. Try. Try. Try. try. Try. Try. Try. Try. try. Try. Try. Try. Try. 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” Innovation: mad. Start Doing something about it. Now. Get The Limits of “Systems Thinking”: Surprise, Transformation & Excellence Through Spontaneous Discovery “By indirections find directions out.” —Hamlet, II. i The Limits of “Systems Thinking”: Surprise, Transformation & Excellence Through Spontaneous Discovery (1 of 2) This summer was the summer of brush clearing. And, it turned out, much more. It started as simple exercise. After a day or two, scratches from head to toe, and enjoyment, I set myself a goal of clearing a little space to get a better view of one of the farm ponds. That revealed something else … to my surprise. At a casual dinner, I sat next to a landscaper, and we got to talking about our farm and my skills with clipper, saw, etc. In particular, she suggested that I do some clearing around a few of our big boulders. Intrigued, I set about clearing, on our main trail, around a couple of said boulders. I was again amazed at the result. That in turn led to attacking some dense brush and brambles around some barely visible rocks that had always intrigued me—which led to “finding,” in effect, a great place for a more or less “Zen garden,” as we’ve taken to calling it. Which led to … more and more. And more. (Especially a rock wall, a hundred or so yards long, that is a massive wonder— next year I’ll move up the hill behind it—I can already begin to imagine what I’ll discover, though my hunch will be mostly “wrong,” and end up leading me somewhere else.) The Limits of “Systems Thinking”: Surprise, Transformation & Excellence Through Spontaneous Discovery (2 of 2) To make a long story short: I now have a new hobby, and maybe, ye gads, my life’s work for years to come. This winter I’ll do a little, but I also plan to read up on outdoor spaces, Zen gardens, etc; visit some rock gardens—spaces close by or amidst my travels; and, indeed, concoct a more or less plan (rough sketches) for next spring’s activities—though I’m sure that what I do will move forward mostly by what I discover as I move forward. (what discovers itself may actually be a better way to put it—there’s a “hidden hand” here.) As I’m beginning to see it, this is at least a 10-year project—maybe even a multi-generation project. I proceeded by trial and error and instinct, and each experiment led to/suggested another experiment (or 2 or 10) and to a greater understanding of potential—the “plan,” though there was none, made itself. And it was far, far better (more ambitious, more interesting, more satisfying) than I would have imagined. In fact, the result to date bears little or no relationship to what I was thinking about at the start—a trivial self-designed chore may become the engine of my next decade; the “brushcutting project” is now leading Susan and me to view our entire property, and what it might represent, in a new light. I was able to do much more than I’d dreamed—overall, and project by project. “Systems thinking”? It would have killed the whole thing. Is “everything connected to every thin else”? Well, duh. But I had no idea how everything was connected to everything else until I began (thank you, Michael Schrage) “serious play.” I proceeded by trial and error and instinct, and each experiment led to/suggested another experiment (or 2 or 10) and to a greater understanding of potential—the “plan,” though there was none, made itself. And it was far, far better (more ambitious, more interesting, more satisfying) than I would have imagined. In fact, the result to date bears little or no relationship to what I was thinking about at the start—a trivial self-designed chore may become the engine of my next decade; the “brushcutting project” is now leading Susan and I to view our entire property, and what it might becomerepresent, in a new light. Note (more of the same): Last year I got a pacemaker for Christmas (13 December, actually); the #1 no-no is using a chain saw. (The magnetic field is fearsome.) Taking that warning a step farther, I decided to do this project entirely with hand tools. Of course that means more exercise—a good thing. But the “great wonder,” again unexpected, is that the resultant slowness and quiet is the de facto engine of my entire spontaneous discovery process. Note: Some of you will have discovered my implicit debt to the economist-of-freedom, F.A. Hayek. His stunningly clear view of market capitalism as a “spontaneous discovery process” is my intellectual bedrock, my “context” for three decades in Silicon Valley, and now even for my recreational pursuits (which are, as noted, becoming so much more than that). “How do I know what I think until I see what I say.” —C.K. Chesterton “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 “This is so simple it sounds stupid, but it is amazing how few oil people really understand that you only find oil if you drill wells. You may think you’re finding it when you’re drawing maps and studying logs, but you have to drill.” —The Hunters, by John Masters, Canadian Oil & Gas wildcatter “Experiment fearlessly” —BusinessWeek, in a Special Report, on the premier innovation strategy of the best innovators “The secret of fast progress is inefficiency, fast and furious and numerous failures.” —Kevin Kelly, founding editor, Wired “How do I know what I think until I see what I say.” —C.K. Chesterton “My only goal is to have no goals. The goal, every time, is that film, that very moment.” —Bernardo Bertolucci Speed/ Tempo/ o.o.d.a. loops/ “Metabolic Management” Messin’ with their minds: He who has the quickest “O.O.D.A. Loops”* wins! *Observe. Orient. Decide. Act. /Col. John Boyd “Blitzkrieg is far more than lightning thrusts that most people think of when they hear the term; rather it was all about high operational tempo and the rapid exploitation of opportunity.” —Robert Coram, Boyd “Re-arrange the mind of the enemy” “Float like a butterfly, sting like a bee” —T.E. Lawrence —Ali BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) “Active mutators in placid times tend to die off. They are selected against. Reluctant mutators in quickly changing times are also selected against.” —Carl Sagan & Ann Druyan, Shadows of Forgotten Ancestors “If things seem under control, you’re just not going fast enough.” —Mario Andretti FedEx Economy” “the —headline/New York Times Anything/ Anywhere/ Anytime “Any3”: ry it. Try it. Screw up. Try it. Try it. Try t. Try it. Try it. Try t. Try it. Screw it up rew it up. Try it. Tr . try it. Try it. Scre BLAME NOBODY. EXPECT NOTHING. DO SOMETHING. Source: Locker room sign posted by football coach Bill Parcells Think! vs. do! “Never forget implementation , boys. In our work, it’s what I call the ‘last 98 percent’ of the client puzzle.” —Al McDonald, former Managing Director, McKinsey & Co, to a project team that included TP The (Strange) Case of Peter Drucker & Michael Porter vs. The “Non-linearists” HERBERT SIMON. (Administrative Behavior.) JAMES MARCH. KARL WEICK. (The Social Psychology of Organizing.) EUGENE WEBB. Henry MINTZBERG. (The Rise and Fall of Strategic Planning.) JAMES UTTERBACK. THOMAS KUHN. (The Structure of Scientific Revolutions.) CHARLES LINDBLOM. Daniel goleman. INNOVATION BIOGRAPHERS.* (*Transcontinental Railroad, Electrification, Radio, Television, Containerization, DNA, MOST POLITICAL SCIENTISTS. SILICON VALLEY. Etc. Computers, Military History, Etc.) think! “Non-linearist”: do! “Linearist”: Plan it! “Non-linearist”: Try it! “Linearist”: “Linearist”: hypothesize! “Non-linearist”: experiment! failure = unnecessary “Linearist”: “Non-linearist”: failure = life a>b* “Non-linearist”: b>a** “Linearist”: *Attitude shapes behavior **Behavior shapes attitude deliberate!* “Non-linearist”: relentless!** “Linearist”: * “Do it right the first time” (Hero: Phil Crosby) **Never retreat (Hero: U.S. Grant) “Linearist”: logical! “Non-linearist”: passionate! give me genius! “Non-linearist”: give me luck! “Linearist”: spotless academic record! “Non-linearist”: a.d.d. “Linearist”: measured pace! “Non-linearist”: Tempo! Tempo! Tempo! “Linearist”: think! Plan! (r.a.f.*) “Non-linearist”: Try it! Screw it up! Fix it! Try it again! (r.f.a.**) “Linearist”: *Ready. Aim. Fire. **ready. Fire. Aim. (Or, circa 2006: fire. Fire. Fire.) Cheap Shot minimize cost. “Non-linearist”: maximize revenue. “Linearist”: marketing rules. “Non-linearist”: sales rules. “Linearist”: “Linearist” Background: planning, marketing & finance. “Non-linearist” background: sales & operations. “Linearist” likes: ideas. “Non-linearist” likes: people. “Linearist” office: walls. “Non-linearist” office: none. “Linearist” style: meetings. “Non-linearist” style: m.b.w.a.* *Managing by wandering around “Linearist” reads: michael porter. Peter drucker.* “Non-linearist” reads: waterman & peters. Tom clancy.** *Michael & peter **Bob & tom & tom “Linearist” reads: michael porter. Peter drucker. “Non-linearist” reads: doesn’t “Linearist” preferred baseball score: 1-0. “Non-linearist” preferred baseball score: 11-9. “Linearist” preferred football score: 7-0. “Non-linearist” preferred football score: 41-38. “Linearist” criminal record: none. “Non-linearist” criminal record: disorderly conduct. Chronic jaywalking. “Linearist” drives: lincoln town car. Ford explorer (weekends). “Non-linearist” drives: bmw. Harleydavidson (weekends). The (Strange) Case of Peter Drucker & Michael Porter vs. The “Non-linearists” HERBERT SIMON. (Administrative Behavior.) JAMES MARCH. KARL WEICK. (The Social Psychology of Organizing.) EUGENE WEBB. Henry MINTZBERG. (The Rise and Fall of Strategic Planning.) JAMES UTTERBACK. THOMAS KUHN. (The Structure of Scientific Revolutions.) CHARLES LINDBLOM. Daniel goleman. INNOVATION BIOGRAPHERS.* (*Transcontinental Railroad, Electrification, Radio, Television, Containerization, DNA, MOST POLITICAL SCIENTISTS. SILICON VALLEY. Etc. Computers, Military History, Etc.) “METABOLIC MANAGEMENT” The Leadership11 1. Talent Management 2. Metabolic Management 3. Technology Management 4. Barrier Management 5. Forgetful Management 6. Metaphysical Management 7. Opportunity Management 8. Portfolio Management 9. Failure Management 10. Cause Management 11. Passion Management “The secret of fast progress is inefficiency, fast and furious and numerous failures.” —Kevin Kelly “Active mutators in placid times tend to die off. They are selected against. Reluctant mutators in quickly changing times are also selected against.” —Carl Sagan & Ann Druyan, Shadows of Forgotten Ancestors “How we feel about the evolving future tells us who we are as Do we search for stasis—a regulated, engineered world? Or do we embrace dynamism—a world of constant creation, discovery and competition? individuals and as a civilization: Do we value stability and control or evolution and learning? Do we think that progress requires a central blueprint, or do we see it as a decentralized, evolutionary process?? Do we see mistakes as permanent disasters, or the correctable byproducts of experimentation? Do we crave predictability or relish surprise? These two poles, stasis and dynamism, increasingly define our political, intellectual and cultural landscape.” —Virginia Postrel, The Future and Its Enemies “If things seem under control, you’re just not going fast enough.” —Mario Andretti “The most successful people are those who are good at plan B.” —James Yorke, mathematician, on chaos theory in The New Scientist “I’m not comfortable unless I’m uncomfortable.” —Jay Chiat “If it works, it’s obsolete.” —Marshall McLuhan Mbwa The magic number 25. Mbwa. Calendars never lie. Excellence. Always. MBWA When Bob Waterman and I wrote In Search of Excellence in 1982, business was “by the numbers”—and the Americans were struggling (to put it mildly) with hands on, tactile stuff, like Japanese quality. Then, at Hewlett Packard, we were introduced to the famed “HP Way,” the centerpiece of which was in-touch management. HP had a term (Managing By Wandering Around.) Bob and I for this … MBWA. fell in immediate love. Not only was the idea per se important and cool, but it symbolized everything we were coming to cherish—enterprises where bossesleaders were in immediate touch with and emotionally attached to workers, customers, the product. The idea is as important or more important in fast-paced 2007 as it was in 1982. CWVA to MBWA: “In these days of telegraph and steam I can command while traveling and visiting about.” —U.S. Grant Managing by wandering around” —HP circa 1980 General Grant got there first—as usual! Though his empire is enormous, and his executive team strong, Starbucks founder Howard Schultz still … visits at least 25 S’bucks shops … per week! religiously … “Regardless of our size,” he told me, “we still sell it one-cup-at-a-time, one customer-at-a-time, one server-ata-time. I need to see it and touch it and feel it.” “The first and greatest imperative of command is to be present in person. Those who impose risk must be seen to share it.” —John Keegan, The Mask of Command True for business as well as war. “20-minute rule” —Craig Johnson/30 yrs Craig Johnson, a famed Venture Capitalist for three decades … refuses to invest in companies that are more than a 20-minute drive from his office. To guide them through the serpentine path ahead, he insists that he must be in constant touch as banker, advisor, friend. * *Hank Paulson, China visits, Fortune 1127.06 China is clearly our most important economic partner. Our dialog with China was not what it might have been when Hank Paulson took over as Secretary of the Treasury. Immediate improvement occurred for numerous reasons, not least of which were Paulson’s SEVENTY TRIPS to China while at Goldman Sachs. “I call 60 CEOs to wish them happy New Year. …” [in the first week of the year] —Hank Paulson, former CEO, Goldman Sachs Source: Fortune, “Secrets of Greatness,” 0320.05 MBWA, Grameen Style! “Conventional banks ask their clients to come to their office. It’s a terrifying place for the poor and illiterate. … The entire Grameen Bank system runs on the principle that people should not come to the bank, the bank should go to the people. … If any staff member is seen in the office, it should be taken as a violation of the rules of the Grameen Bank. … It is essential that [those setting up a new village Branch] have no office and no place to stay. The reason is to make us as different as possible from government officials.” Source: Muhammad Yunus, Banker to the Poor “You must be the change you wish to see in the world.” Gandhi “It’s always showtime.” —David D’Alessandro, Career Warfare You = Your calendar* *Calendars never lie All we have is our time. The way we spend our time is our priorities, is our “strategy.” Your calendar knows what you really care about. Do you? “… a blinding flash of the obvious” —Manny Garcia “All this” [this little riff] is indeed, as seminar participant and leading Burger King franchisee Many Garcia once said to me, “obvious.”* But observation over four decades** suggests that amidst the hubbub and travails of a typical day’s work, the socalled obvious is often-usually left unattended. For perfectly good reasons, another week passes without a visit to our equivalent of the Starbucks shops or HP R&D labs, without the equivalent to Hank Paulsen’s “How ya doin’?” call to a key customer. My [Tom Peters] Job One in life? Remind busy folks of the obvious! *Manny Garcia/1983: “Tom, I hope you won’t be insulted when I say this was the best seminar I’ve ever been to—and it was a blinding flash of the obvious.” **I had two commanding officers during my two Vietnam tours in U.S. Naval Mobile Construction Battalion NINE. One was a Shultz look-alike—instinctively in the field. The other was an in the office “leader.” The one produced. The other didn’t. At age 24 I learned an incredible life lesson, though I couldn’t describe it well until tripping over HP’s MBWA/Managing By Wandering Around. The older I get the less boring the “basics” become! “The one thing you need to know about sustained individual success: Discover what you don’t like doing and stop doing it.” —Marcus Buckingham, The One Thing You Need to Know EXCELLENCE. 4/40. 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 “HOW THE COAST GUARD GETS IT RIGHT” —Headline, Time, 10.31.2005 (on the USCG and hurricane Katrina) *Autonomy *Flexibility *“Perhaps the most important distinction of the Coast Guard is that it trusts itself” The True Logic* of Decentralization: 6 divisions = 6 “tries” 6 divisions = 6 DIFFERENT leaders = 6 INDEPENDENT “tries” = Max probability of “win” 6 divisions = 6 very DIFFERENT leaders = 6 very INDEPENDENT “tries” = Max probability of “far out”/”3-sigma” “win” *“Driver”: Law of Large #s 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 “I saw that leaders placed too much emphasis on what some call ‘high-level strategy,’ on intellectualizing and philosophizing, and not enough on implementation. People would agree on a project or initiative—and then nothing would come of it.” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done “The person who is a little less conceptual but is absolutely determined to succeed will usually find the right people and get them together to achieve objectives. I’m not knocking education or looking for But if you have to choose between someone with a staggering IQ and an elite education who’s gliding along, and someone with a lower IQ but who is absolutely determined to succeed, you’ll always do better with the second person.” —Larry Bossidy/Execution: dumb people. The Discipline of Getting Things Done “Never forget implementation boys. In our work it’s what I call the ‘missing 98 percent’ of the client puzzle.” —Al McDonald Ac-counta-bil-ity! “Realism is the heart of execution.” —Larry Bossidy & Ram Charan/Execution: The Discipline of Getting Things Done “robust dialogue” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done “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) 6:15A.M. ???????? Work Hard > Work Smart A man approached JP Morgan, held up an envelope, and said, “Sir, in my hand I hold a guaranteed formula for success, which I will gladly sell you for $25,000.” “Sir,” JP Morgan replied, “I do not know what is in the envelope, however if you show me, and I like it, I give you my word as a gentleman that I will pay you what you ask.” The man agreed to the terms, and handed over the envelope. JP Morgan opened it, and extracted a single sheet of paper. He gave it one look, a mere glance, then handed the piece of paper back to the gent. And paid him the agreed-upon $25,000 … 1. Every morning, write a list of the things that need to be done that day. 2. Do them. Source: Hugh MacLeod/tompeters.com/NPR DECENTRALIZATION. EXECUTION. ACCOUTABILITY. 6:15A.M. Execution Is Strategy: Howard’s Lesson “We Have … Thank you, Howard (Starbucks)! Starbucks, more or less for the first time, and before the Recession, began to have some significant problems. The “good news,” as it were, is that Howard Schultz’s S’bucks has no new competition; hence we are left with only one possible cause for Starbucks’ slump— Starbucks! Sports: You beat yourself! Sure, your opponent in sports can be having a “lucky day”—but mostly, when one stinks up, say, the presentation … one beats oneself! Principal diagnostic tool for Starbucks or you and me? Spend $2.95, and buy a mirror. Internal organizational excellence* ** = Deepest “Blue Ocean” *A “Blue ocean” is by definition very profitable … and will be quickly copied. “sustainable blue” (Internal organizational excellence) is far more difficult to copy. **Internal organizational excellence = “Brand inside” B(I) > B(O) Sure, I am well aware of internally focused organizations. Nonetheless, I still (mostly) cast my vote for XX … eXcellence in eXecution. When The “Enemy” Really Wins “Lose Your Nemesis”: “Obsessing about your competitors, trying to match or best their offerings, spending time each day wanting to know what they are doing, and/or measuring your company against them—these activities have no great or winning outcome. Instead you are simply prohibiting your company from finding its own way to be truly meaningful to its clients, staff and prospects. You block your company from finding its own identity and engaging with the people who pay the bills. … Your competitors have never paid your bills and they never will.” —Howard Mann, Your Business Brickyard: Getting Back to the Basics to Make Your Business More Fun to Run* *Mr Mann also quotes Mike McCue, former VP/Technology at Netscape: “At Netscape the competition with Microsoft was so severe, we’d wake up in the morning thinking about how we were going to deal with them instead of how we would build something great for our customers. What I realize now is that you can never, ever take your eye off the customer. Even in the face of massive competition, don’t think about the competition. Literally don’t think about them.” K.I.S.S. 450/8 First Steps: “Beauty Contest”! 1. Select one form/document: invoice, airbill, sick leave policy, customer returns claim form. 2. Rate the selected doc on a scale of 1 to 10 [1 = Bureaucratica Obscuranta/ Sucks; 10 = Work of Art] on four dimensions: Beauty. Grace. Clarity. Simplicity. 3. Re-invent! 4. Repeat, with a new selection, every 15 working days. “Beautiful” “Graceful” “Aesthetic Triumph” “Breathtaking” “Game-changing” Rodale’s on “Grace” … elegance … charm … loveliness … poetry in motion … kindliness .. benevolence … benefaction … compassion … beauty “I wanted GE to operate with the speed, informality, and open communication of a corner store. Corner stores often have strategy right. With their limited resources, they have to rely on laser-like focus on doing one thing very well.” —Jack Welch/Fortune Lee’s Rule: Run It off a Blackberry! “Really Important Stuff”: Roger’s Rule of Three! “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 on Simplicity, from Napoleon on Project Management by Jerry Manas. The Planning, Planning Systems, Intelligence & Measures50 The Planning, Planning Systems, Intelligence & Measures50 *K.I.S.S. (!!) (450/8.) (500/50—GB.) (Lee’s Blackberry.) *Complexity accretes one day/person/item at a time! *There must be a “Systems & Measures Undesigner.” (Rem Koolhaas: “Often my job is to undo things.”) *Focus!!!! *5 or fewer key indicators. (Enrico’s “Rule of Three.”) *Key indicators must be backed up by unmistakable impact on evals and compensation! (JW & 6-sigma) *Prune 50% of your measures … TODAY. The Planning, Planning Systems, Intelligence & Measures50 *“Measurement Architecture” = (Real) Corporate Strategy. (PERIOD.) *CIOs & CFOs & C“R”Os will become Soulmates in effective organizations! *Can a fourth grader understand it (Paul Sherlock, JW)? *Overall “systems architecture” should be in the heads of no more than three people. (Fred Brooks jr./360.) *Nothing is easier than lying with statistics. (Measurement is not Reality.) *Hard is Soft. Soft is Hard. (TP-RWjr.) (c.f. Enron.) The Planning, Planning Systems, Intelligence & Measures50 *Fanatically measure Customer Satisfaction regarding systems/measures! *If the Customer says it’s confusing … it’s confusing. PERIOD. *Systems & Measures planning must be “Bottom Up”! (Buy-in Rules in “systems world.”) *If, as a “systems’ guy/gal,” it “turns you on” … BEWARE! (Jefferson’s Rule. Lessons from Clio.) The Planning, Planning Systems, Intelligence & Measures50 *Systems & Measures should be/can be/ought to be Works of Art! *Great systems are about aesthetics! *Is it “beautiful”? *Is it “graceful”? *Is it Surprising? *Use a great Graphic Designer on all systems development teams … and a damn good Psychologist. (Steve world.) *Systems design is not innocent: It is the Ultimate Power Game! *She/He who controls the primary measures … Rules the World! The Planning, Planning Systems, Intelligence & Measures50 *“Budgets” as we’ve known them are more than a “wretched waste”: They are Danger #1 in Turbulent Times! *Budgets are exercises in Negotiated Timidity. *“Managing to budget” is a/the Mortal Sin. *Plan, then burn the plan! (Koppers.) *“Continuous” and “rolling” are superb ideas … but beware so much “plasticity” that one forgets the starting point! Hard. Comparative data is a “very good thing.” The Planning, Planning Systems, Intelligence & Measures50 *“Intelligence” is always obvious after the fact. *B.I.: Remember HUMINT!! *Great BizIntelligence depends on Freaks & Whackos, from Langley to the Board Room. (I.e., Be Incredibly Eclectic in terms of sources of Intelligence.) *All intelligence gathering is a Political Activity. (C.f. CIA, FBI.) *B.I. is about “outliers.” (?? If you can measure it, it’s not on the leading edge??) The Planning, Planning Systems, Intelligence & Measures50 *If a system/measure gives you a stupid answer, it’s probably a stupid system/measure. *Measures should routinely produce Surprises (if not, discard them). *Perform systems & Measures post-mortems after major fiascos (“Why didn’t this stick out like a sore thumb?”) *The half-life of Measures is 3 years. (Effective “gaming” begins in year #2, reaches a crescendo by year #4.) The Planning, Planning Systems, Intelligence & Measures50 *Intangibles rule! *Measure intangibles! (!!!!) *Be(very)ware the tangibles becoming Total Reality, thence crowding out Real Reality. *Constantly review what’s not being measured. (Ever tried to drive a car using only the dashboard?) *“Models” are incredibly Stupid (very rough approximations of reality): Make sure everyone understands that! *Business is Art! The Planning, Planning Systems, Intelligence & Measures50 *Planning systems should support execution! (PERT/CPM.) *Uniformity of measurement/presentation across units is fantastic up to a point. *“Let a thousand flowers bloom, let a hundred schools contend”: Let a 100 flowers bloom, let a dozen schools contend. *“Do it right the first time” is as stupid in “systems world” as in TQM. *Selection of measurements is one of the Most Creative Acts in the Enterprise! *Are there Freaks aplenty in the Systems & Measures & Intelligence activities? EXCELLENCE. ACTION. ROOTS. GRANT NELSON BOYD FISHER BOSSIDY PEROT MASTERS HERB McDONALD PETERS-WATERMAN HAMLET+ GRANT “The only way to whip an army is to go out and fight it.” —Grant Source: John Mosier, Grant “recognized the value of momentum … throw [opponent] off balance … blitzkrieg … traveling light … headquarters in the saddle” —Jean Edward Smith/GRANT “almost inhuman disinterestedness in … strategy” —Josiah Bunting on U.S. Grant (from Ulysses S. Grant) “He never credited the enemy with the capacity to take the offensive.”/185 “tenacity [like Wellington]”/187 “I haven’t despaired of whipping them yet” [at a very low point]/195 “Both sides seemed defeated and whoever assumed the offensive was sure to win.”/200 … “inchoate bond [between Grant and soldiers]”/201 … “The genius of Grant’s command style lay in its simplicity. Grant never burdened his division commanders with excessive detail. … no elaborate staff conferences, no written orders prescribing deployment. … Grant recognized the battlefield was in flux. By not specifying movements in detail, he left his subordinate commanders free to exploit whatever opportunities developed.”/202 “If anyone other than Grant had been in command, the Union army certainly would have retreated.”/204 Lincoln (urged to fire Grant): “I can’t spare this man; he fights.”/205 “Grant turned defeat into Union victory.”/206 “moved on intuition, which he often could not explain or justify.”/208 “instinctive recognition that victory lay in relentlessly hounding a defeated army into surrender.”/213 Nathan Bedford Forrest, successful Confederate commander: “amenable to no known rules of procedure, was a law unto himself for all military acts, and was constantly doing the unexpected at all times and places.”/213 “The genius of Grant’s command style lay in its simplicity. Grant never burdened his division commanders with excessive detail. … no elaborate staff conferences, no written orders prescribing deployment. … Grant recognized the battlefield was in flux. By not specifying movements in detail, he left his subordinate commanders free to exploit whatever opportunities developed.” —Jean Edward Smith/GRANT “A generation of American officers had been schooled to believe the art of generalship required rigid adherence to certain textbook theorems.”/151 “The nature of Grant’s greatness has been a riddle to many observers. … did not hedge his bets … disregarded explicit instructions … nothing to fall back on … violating every maxim held dear by the military profession … new dimension: ability to learn from the battlefield … finished near the bottom of his [West Point] class in tactics … carried the fight to the enemy … maintain the momentum of the attack … military greatness is the ability to recognize and respond to opportunities presented.”/152-3 “Grant had an aversion to digging in.”/153 “Grant had an intangible advantage. He knew what he wanted.”/153 “Grant’s seven-mile dash changed the course of the war.”/157 “The one who attacks first will be victorious.”/158 “dogged”/159 “unconditional surrender”/162 “simplicity and determination”/166 “quickness of mind that allowed him to make on the spot adjustments … [his] battles were not elegant set-piece operations”/166 “[other Union general] preferred preparation to execution … became a friend of detail … suffered from ‘the slows’ …”/170 Message to Halleck from McClellan: “Do not hesitate to arrest him” [following great victory]/172 … “learned how to withstand attacks from the rear” [Army politics]/179 “The commanding general would be in the field”/228 Lincoln: “What I want, and what the people want, is generals who will fight battles and win victories. Grant has done this and I propose to stand by him.”/231 “retains his hold upon the affections of his men”/232 “Grant’s moral courage—his willingness to choose a path from which there could be no return—set him apart from most commanders … were [Grant and Lee] were uniquely willing to take full responsibility for their actions.”/233 “ … modest … honest … nothing could perturb … never faltered …”/233 “plan was breathtakingly simple but fraught with peril”/235 “demonstrating the flexibility that had become his hallmark”/238 “But like any West Point trained general, he had difficulty comprehending what Grant was up to …”/240 “recognized the value of momentum … throw off balance … blitzkrieg … traveling light … headquarters in the saddle”/243 “acted as quartermaster”/243 [rushed away so that he couldn’t receive Halleck’s order] … “like Lord Nelson … telescope to his blind eye” … “pressing ahead on his own”/245 “focus on the enemy’s weakness rather than his own”/250 “recognized the value of momentum … throw [opponent] off balance … blitzkrieg … traveling light … headquarters in the saddle” —Jean Edward Smith/GRANT “Above all the troops appreciated Grant’s unassuming manner. Most generals went about attended by a retinue of immaculately tailored staff officers. Grant usually rode alone, except for an orderly or two to carry messages if the need arose. Another soldier said the soldiers looked on Grant ‘as a friendly partner, not an arbitrary commander.’ Instead of cheering as he rode by, they would ‘greet him as they would address one of their neighbors at home. ‘Good morning, General,’ ‘Pleasant day, General’ … There was no nonsense, no sentiment; only a plain businessman of the republic, there for the one single purpose of getting that command over the river in the shortest time possible.’” [Grant: 5-feet 8-inches with a slouch]/232 After the victory at Chattanooga: “The [Union senior] officers rode past the Confederates smugly without any sign of recognition except by one. ‘When General Grant reached the line of ragged, filthy, bloody, despairing prisoners strung out on each side of the bridge, he lifted his hat and held it over his head until he passed the last man of that living funeral cortege. He was the only officer in that whole train who recognized us as being on the face of the earth.’”/ 281 “Grant was unhappy about going into winter quarters. He saw no reason to keep the army idle, and the pause would give the rebels time to reorganize.”/282 “The [Union senior] officers rode past the Confederates smugly without any sign of recognition except by one. ‘When General Grant reached the line of ragged, filthy, bloody, despairing prisoners strung out on each side of the bridge, he lifted his hat and held it over his head until he passed the last man of that living funeral cortege. He was the only officer in that whole train who recognized us as being on the face of the earth.’*” *quote within a quote from diary of a Confederate soldier From LEE KENNETT’s SHERMAN: “Grant tended to be a simple listener when these two strategies [for taking Vicksburg] were being discussed. His own preference may have been impelled as much by natural inclination as by any arguments he heard. He wrote afterward: ‘One of my superstitions had always been when I started to go anywhere or to do anything, not to turn back, or stop, until the thing intended was accomplished.’”/ 202 CWVA to MBWA: “In these days of telegraph and steam I can command while traveling and visiting about.” —U.S. Grant Managing by wandering around” —HP circa 1980 Source: Ulysses S. Grant, by Geoffrey Perret "The art of war is simple enough. Find out where your enemy is. Get at him as soon as you can. Strike at him as hard as you can and as often as you can, and keep moving on." —Grant, courtesy Richard Cauley at tompeters.com (original source unknown) “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 on Simplicity, from Napoleon on Project Management by Jerry Manas. “This [adolescent] incident [of getting from point A to point B] is notable not only because it underlines Grant’s fearless horsemanship and his determination, but also it is the first known example of a very important peculiarity of his character: Grant had an extreme, almost phobic dislike of turning back and retracing his steps. If he set out for somewhere, he would get there somehow, whatever the difficulties that lay in his way. This idiosyncrasy would turn out to be one the factors that made him such a formidable general. Grant would always, always press on— turning back was not an option for him.” —Michael Korda, Ulysses Grant Relentless: “One of my superstitions had always been when I started to go anywhere or not to turn back , or stop, to do anything, until the thing intended was accomplished.” —Grant Relentless: “One of my superstitions had always been when I started to go anywhere, or to do anything, not to turn back, or stop, until the thing intended was accomplished. I have frequently started to go places where I had never been and to which I did not know the way, depending upon making inquiries along the road. And if I got past the place without knowing it, I would not turn back but instead go on until a road was found turning in the right direction, take that, and come in on the other side.” —Grant TP’s take: Intuition takes precedence (listen attentively but act on intuition) … Move today > perfect plan tomorrow [subsequent Patton line] … Great advantage: When moving, you know what you’re up to and you’re moving [the one sitting still is, thence, always reactive] [Boyd: quickest O.O.D.A. loops/Observe. Orient. Decide. Act. Disorient enemy] … Action! ... Keep moving! … Engage! … Offense! [weakness-strength: can’t even imagine enemy counter-attacking; little conception of defense] … Momentum! …. Keep ’em off balance … … Adjust … Adapt … … Opportunism! … Constantly revise in accordance with conditions and opportunities in the field [life = excellence at “Plan B”] … Doggedness … Relentless!! [trait shaped in early childhood] … Never retreat … Simplicity! … Wide latitude for division commanders … minimum written orders, conferences, etc … keep his own council … HQ is Grant & his horse … no retinue! … commune with soldiers/exude quiet confidence/Approachable … decent … Self-accountability! … Evade orders (or ignore) … Share harm & hardship … total victory/ demand “unconditional surrender”—G’s first claim to fame [Nelson: other Admirals avoid loss, friend and foe as in Grant’s case vs Nelson’s seek victory] … [Life 101: politics between the Generals: E.g., Grant & Halleck] Insubordinate (when it comes to delays)/N Action-oriented/Offense/ Total victory/N Relentless Troop Commander par Excellence/N Leeway to Commanders/N GRANT Simplicity and clarity (written orders, view of movement) Action-action-action (always forward; job only done when 100% done; when the job is done, start the next job) Tactics >>>> Strategy (FM: “Operations is policy”; HK: “We have a strategy; it’s called ‘doing things.’”) Movement (perpetual movement, other guy perpetually off balance and reactive; O.O.D.A. loops--Boyd) Offense (not so good at defensive battlements) Decency! CBWA (on the move, no aides) “Lean staff” (“simple form, lean staff”) Unflappable (Fearless) Visual (mapmaker) Logistician Relentless!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Autonomy to Commanders Self-contained Do it with what he has Antsy Mastery (horsemanship) “Western” attitude mimicked boss twice removed (Lincoln) U. S. Grant *No interest in grand strategy. *Do the thing until it is done. *Do not over complicate. *Do the next thing. *Pleasure in perseverance per se. *Not ask for help or advice. *Not complain of difficulties or ask for more time or resources McClellan: delay; plead for more forces Grant: “When do I start? What I want is to advance.” Source: Josiah Bunting, Ulysses S. Grant NELSON “[other] admirals more frightened of losing than anxious to win” On NELSON: The Nelson Baker’s Dozen 1. Simple-clear scheme (“Plan”) (Not wildly imaginative) (Patton: “A good plan executed with vigor right now tops a ‘perfect’ plan executed next week.”) 2. SOARING/BOLD/CLEAR/UNEQUIVOCAL/WORTHY/NOBLE/INSPIRING “GOAL”/“MISSION”/“PURPOSE”/“QUEST” 3. “Conversation”: Engagement of All Leaders 4. Leeway for Leaders: Select the Best/Dip Deep/Initiative demanded/Accountability swift/Micromanagement absent 5. LED BY “LOVE” (Lambert), NOT “AUTHORITY” (Identify with sailors!) 6. Instinct/Seize the Moment/“Impetuosity” (Boyd’s “OODA Loops”: React more quickly than opponent, destroy his “world view”) 7. VIGOR! (Zander: leader as “Dispenser of Enthusiasm”) 8. Peerless Basic Skills/Mastery of Craft (Seamanship) 9. Workaholic! (“Duty” first, second, and third) 10. LEAD BY CONFIDENT & DETERMINED & CONTINUOUS & VISIBLE EXAMPLE (In Harm’s Way) (Gandhi: “You must be the change you wish to see in the world”/ Giuliani: Show up!) 11. Genius (“Transform the world to conform to their ideas,” “Triumph over rules”) (Gandhi, Lee-Singapore) , not Greatness (“Make the most of their world”) 12. Luck! (Right time, right place; survivor) (“Lucky Eagle” vs “Bold Eagle”) 13. Others principal shortcoming: “ADMIRALS MORE FRIGHTENED OF LOSING THAN ANXIOUS TO WIN” Source: Andrew Lambert, Nelson: Britannia’s God of War Nelson’s Way: A Baker’s Dozen/Short 1. Simple scheme. 2. Noble purpose! 3. Engage others. 4. Find great talent, let it soar! 5. Lead by Love! 6. Trust your gut, not the focus group: Seize the Moment! 7. Vigor! 8. Master your craft. 9. Work harder than the next person. 10. Show the way, walk the talk, exude confidence! Start a Passion Epidemic! 11. Change the rules: Create your own game! 12. Shake of the pain, get back up off the ground, the timing may well be right tomorrow! (E.g., Get lucky!) 13. By hook or by crook, quash your fear of failure, savor your quirkiness and participate fully in the fray! Source: Andrew Lambert, Nelson: Britannia’s God of War “He above all encouraged (and prepared) his subordinates to seize the initiative whenever necessary, particularly in the fog of war—and the men who served under him knew what he expected.” —Jay Tolson, on “The Nelson Touch,” The Battle That Changed The World … tireless self-promoter, sought hero status, sought patronage [suck up] … guts, courage, master of his craft … passion for pleasures of the flesh, driven by duty, obsessed (no “work-life balance”) … autocratic, dictatorial … team player, practitioner of participative management 200 years before it was popularized, loved hanging out with the lads … man’s man, lady’s man … diligent manager (e.g., logistics), powerfully inspirational, spiritual, passionate … ambitious, aggressive, confident, impulsive, rarely cautious or circumspect, risk-taker … emotional, spiritual, expressed feelings openly, classless, fair, self-sacrificing, encouraging, optimistic … unconventional, did not get along well with superiors … xenophobic, immodest, impatient, intolerant, imprudent in public and in private … led from the front, zeal for action, despair over bureaucrats (“I hate the pen and ink men”), … lucky … —Stephanie Jones & Jonathan Gosling, Nelson’s Way: Leaderhip Lessons from the Great Commander FISHER “We must have no tinkering! No pandering to sentiment! No regard for susceptibilities! We must be ruthless, relentless, and remorseless.” —Jan Morris, Fisher’s Face, Or, Getting to Know the Admiral Fisherisms Do right and damn the odds. Stagnation is the curse of life. The best is the cheapest. Emotion can sway the world. Mad things come off. Haste in all things. Any fool can obey orders. History is a record of exploded ideas. Life is phrases. Source: Jan Morris, Fisher’s Face, Or, Getting to Know the Admiral “extraordinary arrogance, superciliousness, humor, kindness, effrontery” —Jan Morris on Lord Admiral Jack Fisher, Fisher’s Face, Or, Getting to Know the Admiral BOYD “The most successful people are those who are good at plan B.” —James Yorke, mathematician, on chaos theory in The New Scientist He who has the quickest “O.O.D.A. Loops”* wins! *Observe. Orient. Decide. Act. /Col. John Boyd OODA Loop/Boyd Cycle “Unraveling the competition” Quick Transients/Quick Tempo (NOT JUST SPEED!) Agility “So quick it is disconcerting” [adversary over-reacts or under-reacts] “Winners used tactics that caused the enemy to unravel before the fight” (NEVER HEAD TO HEAD) BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) “The stuff has got to be implicit. If it is explicit, you can’t do it fast enough.” —John Boyd BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) “Blitzkrieg is far more than lightning thrusts that most people think of when they hear the term; rather it was all about high operational tempo and the rapid exploitation of opportunity.” —Robert Coram, Boyd “Re-arrange the mind of the enemy” “Float like a butterfly, sting like a bee” —T.E. Lawrence —Ali BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) F86 vs. MiG/Korea/10:1 Bubble canopy (360 degree view) Full hydraulic controls (“The F86 driver could go from one maneuver to another faster than the MiG driver”) MiG: “faster in raw acceleration and F86: “quicker in changing maneuvers” turning ability.” BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) “kept the enemy off-balance; they knew Delta Company [RVN] could show up anywhere, anytime” USMC COL Mike Wyly: BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) Tempo!* 70-10 *Boyd/O.O.D.A. Loops/Mike Leach/Texas Tech 70-10/Nebraska/Unk QB 643 yards K.State/ Linemen spread wide/All legals go out for pass/Defenders confused & tire (Boyd/Tempo is not speed/“Re-arrange the mind of the enemy”—T.E. “By changing the geometry of the game, and pushing the limits of space and time on the gridiron, Mike Leach is taking Texas Tech to some far out places.” —Michael Lewis (NY Times Lawrence)/ Magazine, 12.04.05, on Mike Leach/Texas Tech) “In war, delay is fatal.” —Napoleon “The only way to whip an army is to go out and fight it.” —Grant “ … demonstrating the tactic that would become his hallmark: the immediate move to seek out the enemy and attack him” —John Mosier, on Grant “A good plan executed right now is far preferable to a ‘perfect’ plan executed next week.” —Patton Relentless!* *Churchill, Grant, Patton, Welch & Bossidy & Nardelli (past GE execs), UPS, FedEx, Microsoft/Gates-Ballmer, Eisner, Weill, eBay, Nixon-Kissinger, Gerstner, Rice, Jordan, Armstrong The Leadership11 1. Talent Management 2. Metabolic Management 3. Technology Management 4. Barrier Management 5. Forgetful Management 6. Metaphysical Management 7. Opportunity Management 8. Portfolio Management 9. Failure Management 10. Cause Management 11. Passion Management BOSSIDY “I saw that leaders placed too much emphasis on what some call high-level strategy, on intellectualizing and philosophizing, and not enough on implementation. People would agree on a project or initiative, and then nothing would come of it.” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done “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 “Realism is the heart of execution.” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done “robust dialogue” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done “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) The Leader’s Seven Essential Behaviors *Know your people and your business *Insist on realism *Set clear goals and priorities *Follow through *Reward the doers *Expand people’s capabilities *Know yourself Source: Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done Action8/VPMR+/Peters on Bossidy *Knowledge/External Focus (Competitors/Customers) *Realism/Truth-telling *Vision *Projects (Must add up to Vision) *Milestones *Commitment/Energy *RapidReview *Consequences (+/-) “The person who is a little less conceptual but is absolutely determined to succeed will usually find the right people and get them together to achieve objectives. I’m not knocking education or looking for dumb But if you have to choose between someone with a staggering IQ and an elite education who’s gliding along, and someone with a lower IQ but who is absolutely determined to succeed, you’ll always do better with the second person.” —Larry people. Bossidy/Execution: The Discipline of Getting Things Done Duct Tape Rules! “Andrew Higgins, who built landing craft in WWII, refused to hire graduates of engineering schools. He believed that they only teach you what you can’t do in engineering school. He started off with 20 employees, and by the middle of the war had 30,000 working for him. He turned out 20,000 landing craft. D.D. Eisenhower told me, ‘Andrew Higgins won the war for us. He did it without engineers.’ ” —Stephen Ambrose/Fast Company PEROT READY. FIRE! AIM. Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985) READY. FIRE! AIM. READY. FIRE! MASTERS “This is so simple it sounds stupid, but it is amazing how few oil people really understand that you only find oil if you drill wells. You may think you’re finding it when you’re drawing maps and studying logs, but you have to drill.” Source: The Hunters, by John Masters, Canadian O & G wildcatter You only find oil if you drill wells. Source: The Hunters, by John Masters, Canadian O & G wildcatter drill. Source: The Hunters, by John Masters, Canadian O & G wildcatter HERB doing things. — Herb Kelleher McDONALD “Never forget implementation boys. In our work it’s what I call the ‘missing 98 percent’ of the client puzzle.” —Al McDonald PETERSWATERMAN “too much talk, too little do” TP/BW on BigCo Sin #1: “Ninety percent of what we call ‘management’ consists of making it difficult for people to get things done.” – Peter Drucker “Do it. Fix it. Try it.” Tom Peters/Business Week/07.1978 (Principal #1/first anticipation of “Excellence”) In Search of Excellence/1982/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” Importance of Success Factors by Various “Gurus”/ Estimates (Unreliable) by Tom Peters Strategy Systems Passion/ Execution Leadership Porter 45% 20 20 15 Drucker 35% 30 15 20 Bennis 20% 20 35 25 Peters 15% 20 30 35 PETERS: THE “ACT. THINK.” CHRONICLES “Think” vs “Do” A>B vs B>A CK Chesterton: “How do I know what I think until I see what I say?” Reporter: “Mr Drucker, why are you still giving speeches at 90?” PD: “How else can I figure out what I’m thinking?” TP: No plan, total accountability SOP: Perfect plan, no accountability* *What Lou Gerstner inherited at IBM and what Larry Bossidy inherited at Allied Signal “My only goal is to have no goals. The goal, every time, is that film, that very moment.” —Bernardo Bertolucci “Experiment fearlessly” Source: BW0821.06, Type A Organization Strategies/ “How to Hit a Moving Target”—Tactic #1 Power of the … “Small Win”/ String of (TP/1977; KW;EJW) “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 No. 5. By the time our rivals are ready with wires and screws, we are on version No. 10. It gets back to planning version versus acting: We act from day one; others plan how to plan— for months.” —Bloomberg by Bloomberg HAMLET+ “By indirections find directions out.” —Hamlet, II. i “My only goal is to have no goals. The goal, every time, is that film, that very moment.” —Bernardo Bertolucci “A year from now you may wish You had started today.” —Karen Lamb