LONG
Tom Peters’
Re-Imagine
EXCELLENCE
!
e-town Festival
Edmonton Economic Development
Edmonton/12 September 2014
(For more see tompeters.com and our fully annotated 23-part Master
Compendium [Mother of All Presentations] at excellencenow.com)
BE THE BEST.
IT’S THE ONLY
MARKET THAT’S
NOT CROWDED.
-1/+1
S&P 500
+1/-1*
*Every …
!
2 weeks
Source: Richard Foster (via Rita McGrath/HBR/12.26.13
“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 …
Source: Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics
“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
years for
1,000
found that
U.S. companies.
40
They
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
THE RED
CARPET
STORE
(Joel Resnick/Flemington NJ)
1,600 cheeses
1,400 varieties of hot sauce
12,000 wines priced from
$8 to $8,000 a bottle
6,000 Christmas ornaments
50,000 trims
PASSION
RETAIL SUPERSTARS: INSIDE THE 25 BEST INDEPENDENT
STORES IN AMERICA—George Whalin
JUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OH:
“An adventure in ‘shoppertainment,’ begins in the parking lot and
goes on to
1,600
cheeses and, yes,
1,400
varieties of hot sauce—not to mention 12,000 wines priced from
$8-$8,000
4,000
a bottle; all this is brought to you by
vendors. Customers come from every corner of the
globe.”
BRONNER’S CHRISTMAS WONDERLAND, FRANKENMUTH, MI,
POP 5,000: 98,000-square-foot “shop” features
Christmas ornaments,
50,000
6,000
trims, and anything else
you can name pertaining to Christmas.
Retail Superstars:
Inside the 25 Best
Independent Stores
in America
—by George Whalin
Jim’s Mowing
Jim’s Antennas
Jim’s Bookkeeping
Jim’s Building Maintenance
Jim’s Carpet Cleaning
Jim’s Car Cleaning
Jim’s Computer Services
Jim’s Dog Wash
Jim’s Driving School
Jim’s Fencing
Jim’s Floors
Jim’s Painting
Jim’s Paving
Jim’s Pergolas [gazebos]
Jim’s Pool Care
Jim’s Pressure Cleaning
Jim’s Roofing
Jim’s Security Doors
Jim’s Trees
Jim’s Window Cleaning
Jim’s Windscreens
Etc.*
*1982/3,200+ franchises/$300M+/“world’s largest home services franchise business”/
Mooroolbark, Victoria
Sources: Jim Penman, What Will They Franchise Next? The Story of Jim’s Group; Management Today; Business Review Weekly; etc.
The Magicians of Motueka (PLUS)
!
W.A. Coppins Ltd.*
(Coppins Sea Anchors/
PSA/para sea anchors)
*Textiles, 1898; thrive on
“wicked problems”
U.S. Navy STLVAST (Small To Large Vehicle At Sea
Transfer); custom fabric from W. Wiggins Ltd./Wellington
(specialty nylon, “Dyneema,” from DSM/Netherlands)
—e.g.,
Going “Social”: Location and Size Independent
“Today, despite the fact that we’re just a little swimming
pool company in Virginia, we have the most trafficked
swimming pool website in the world. Five years ago, if
you’d asked me and my business partners what we do, the
answer would have been simple, ‘We build in-ground
‘We
are the best teachers
… in the world … on the
fiberglass swimming pools.’ Now we say,
subject of fiberglass swimming pools,
and we also happen to build them.’”
—Jay Baer, Youtility: Why Smart Marketing Is About Help, Not Hype
Small (Entrepreneurial) BUSINESS:
Training Inc. , a 14-person
unit* in a 50-person HR
department in a $200M
business unit in a $3B
corporation—aiming for
Excellence & WOW!
*PSF/
Professional Service Firm (See my …
Professional Service Firm 50: Fifty Ways to Transform Your
“Department” Into A Professional Service Firm Whose
Trademarks Are Passion and Innovation.)
“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
“INSANELY GREAT”
STEVE JOBS
“RADICALLY THRILLING”
BMW
Middle-sized
NicheMicro-niche
Dominators!
I love …
"Own" a niche through EXCELLENCE
(Writ large: Germany’s MITTELSTAND)
!
Hilton’s
Law …
CONRAD HILTON, at a gala celebrating
his career, was called to the podium and
“What were the
most important
lessons you learned
in your long and
distinguished
career?” His answer …
asked,
“Remember
to tuck the
shower curtain
inside the
bathtub.”
IS
“EXECUTION
STRATEGY.”
—Fred Malek
“COSTCO FIGURED OUT
BIG,
SIMPLE THINGS
THE
AND
EXECUTED
WITH TOTAL
FANATICISM.”
—Charles Munger, Berkshire Hathaway
!
Excellence
Excellence1982: The Bedrock “Eight Basics”
1.
2.
3.
4.
5.
6.
7.
8.
A Bias for Action
Close to the Customer
Autonomy and Entrepreneurship
Productivity Through People
Hands On, Value-Driven
Stick to the Knitting
Simple Form, Lean Staff
Simultaneous Loose-Tight
Properties
“Breakthrough” 82*
People!
Customers!
Action!
Values!
*In Search of Excellence
“It may sound radical, unconventional, and
bordering on being a crazy business idea.
However— as ridiculous as it sounds—joy is the
core belief of our workplace.
Joy
is the reason my company,
Menlo Innovations, a customer software design
and development firm in Ann Arbor, exists. It
defines what we do and how we do it. It is the
single shared belief of our entire team.”
Joy, Inc.:
How We Built a Workplace People Love
—Richard Sheridan,
“What matters most
to a company over time?
Strategy or culture?
WSJ/0910.13:
Dominic Barton, MD, McKinsey & Co.:
“Culture.”
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 pursuit of
EXCELLENCE in
service of others.**
**Employees, Customers, Suppliers, Communities, Owners, Temporary partners
LEADERSHIP
25/50/5/4/1
“I’m always stopping by our
at least
a week.
stores—
25
I’m also in other
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
Source: Dov Frohman
“Most managers spend a great deal of time thinking about what they plan to do, but relatively little time thinking about what
they plan not to do. As a result, they become so caught up … in fighting the fires of the moment that they cannot really
attend to the long-term threats and risks facing the organization. So the first soft skill of leadership the hard way is to
cultivate the perspective of Marcus Aurelius: avoid busyness, free up your time, stay focused on what really matters.
Let me put it bluntly: every leader should
routinely keep a substantial portion of
his or her time—I would say as much as
50
percent—unscheduled.
…
Only when you have substantial ‘slop’ in your schedule—unscheduled time—will you have the space to reflect on what you
are doing, learn from experience, and recover from your inevitable mistakes. Leaders without such free time end up tackling
issues only when there is an immediate or visible problem. Managers’ typical response to my argument about free time is,
Yet we waste so much time in
unproductive activity—it takes an enormous effort on the part of the
leader to keep free time for the truly important things.”
‘That’s all well and good, but there are things I have to do.’
—Dov
Frohman (& Robert Howard), Leadership The Hard Way: Why Leadership Can’t Be Taught—
And How You Can Learn It Anyway (Chapter 5, “The Soft Skills Of Hard Leadership”)
EXCELLENCE is not a “longterm” "aspiration.”
EXCELLENCE is the ultimate
short-term strategy.
EXCELLENCE is … THE
NEXT
5
MINUTES.*
(*Or NOT.)
EXCELLENCE is not an "aspiration."
EXCELLENCE is … THE NEXT FIVE MINUTES.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
is your next conversation.
is your next meeting.
is shutting up and listening—really listening.
is your next customer contact.
is saying “Thank you” for something “small.”
is the next time you shoulder responsibility and apologize.
is waaay over-reacting to a screw-up.
is the flowers you brought to work today.
is lending a hand to an “outsider” who’s fallen behind schedule.
is bothering to learn the way folks in finance (or IS or HR) think.
is waaay “over”-preparing for a 3-minute presentation.
is turning “insignificant” tasks into models of … EXCELLENCE.
“The
4 most
important
words in any
organization are …
THE FOUR MOST IMPORTANT WORDS IN ANY ORGANIZATION
“WHAT
DO YOU
THINK?”
ARE …
Source: courtesy Dave Wheeler, posted at tompeters.com
“Employees who
don't feel significant
rarely make
significant
contributions.”
—Mark Sanborn
“If there is any
ONE
‘secret’ to
effectiveness, it is concentration.
Effective executives do first things first …
and they do
ONE thing at a
time.”
—Peter Drucker
You = Your
calendar*
*The calendar
NEVER
lies.
Meetings are
#1
do. Therefore,
thing bosses
100% of
those meetings:
EXCELLENCE.
ENTHUSIASM.
ENGAGEMENT.
LEARNING. TEMPO.
#1
CEO Failing?
“If I had to
pick one failing
of CEOs, it’s
that …
—Co-founder of one of the largest investment services firms in the USA/world
“If I had to pick one failing of
they
don’t read
enough.”
CEOs, it’s that …
“In my whole life, I have known no
wise people (over a broad subject
matter area) who didn’t read all the
time—none.
Zero.
You’d be
amazed at how much Warren
[Buffett] reads—and how much I
read.”—Charlie Munger (Berkshire Hathaway)
Leadership By the Numbers
18
“The doctor
interrupts
after …*
*Source: Jerome Groopman, How Doctors Think
18 …
18 …
seconds!
(An obsession with) Listening is ... the ultimate mark
of
Listening
Listening
Listening
Listening
Listening
Listening
Listening
is
is
is
is
is
is
is
...
...
...
...
...
...
...
Listening
Listening
Listening
Listening
is
is
is
is
...
...
...
...
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
organization effectiveness.)
[cont.]
Respect
.
*8 of 10 sales presentations fail
*50% failed sales
talking
“at” before
listening!
presentations …
—Susan Scott, “Let Silence Do the Heavy Lifting,” chapter title,
Fierce Conversations: Achieving Success at Work and in Life,
One Conversation at a Time
Suggested
Core Value
#1: “We are Effective
Listeners—we treat
Listening EXCELLENCE as
the Centerpiece of our
Commitment to Respect
and Engagement and
Community and Growth.”
“I always write
‘LISTEN’ on
the back of my hand
before a meeting.”
Source: Tweet viewed @tom_peters
LISTEN =
“PROFESSION” =
STUDY = PRACTICE =
EVALUATION =
ENTERPRISE VALUE
Are you a full-fledged
“professional” when it
comes to helping?
“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.
THERE ONCE
WAS A TIME WHEN A
Relationships
(of all varieties):
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!
People
People
People
People
1/4,096
“Business has to
give people
enriching,
rewarding lives …
1/4,096: excellencenow.com
“Business has to give people enriching,
or it's
simply not
worth doing.”
rewarding lives …
—Richard Branson
“In a world where customers wake up
every morning asking, ‘What’s new, what’s
success
depends on a company’s
ability to unleash initiative,
imagination and passion of
employees at all levels —and this
different, what’s amazing?’
can only happen if all those folks are
connected heart and soul to their work
[their ‘calling’], their company and their
mission.” —John Mackey and Raj Sisoda, Conscious Capitalism:
Liberating the Heroic Spirit of Business
“Contrary to conventional
corporate thinking,
treating retail workers
much better may make
everyone (including
their employers) much
richer.” * **
*Duh!
**Cited in particular, “The Good Jobs Strategy,” by M.I.T. professor
Zeynep Ton.
Wegmans
(was #1 in USA)
Container Store
(was #1 in USA)
Whole Foods
Costco
Publix
Darden Restaurants
Build-A-Bear
Workshops
Starbucks
“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)
EMPLOYEES FIRST, CUSTOMERS SECOND:
Turning Conventional Management Upside Down
Vineet Nayar/CEO/HCL Technologies
“hostmanship”/
“consideration
renovation”
hostmanship
“The path to a
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
“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 fruit, and
changed colors. Our focus was totally on
management has made customers its highest priority?’”
the staff. They were the ones we wanted
to make happy. We wanted them to wake up every morning excited
about a new day at work.” —Jan Gunnarsson and Olle Blohm, Hostmanship:
The Art of Making People Feel Welcome.
“ … 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?’”
Rocket Science.
NOT.
“If you want staff to
give great service,
service, give great
service to staff.”
—Ari Weinzweig, Zingerman’s
Source: Small Giants: Companies That Choose to Be Great
Instead of Big, Bo Burlingham
EXCELLENT
customer experience
depends … entirely …
on EXCELLENT
employee experience!
If you want to WOW your
FIRST
customers,
you
must WOW those who
WOW the customers!
“G-E-N-I-U-S”
Getting more and more cantankerous (short tempered!)
about this:
Job #1 (& #2 & #3)
is to abet peoples' personal
growth. All other good things
flow there from.
My idea of a gen-u-ine "genius“
If you work your
heart out to help people grow,
they'll work their hearts out
to give customers a great
experience.
"breakthrough" idea:
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.
“The role of the Director is to
create a space where the actors
become
more than they’ve ever
been before,
more than they’ve
dreamed of being.”
and actresses can
—Robert Altman, Oscar acceptance speech
“The leaders of Great
Groups … love talent
… and know where to find
revel in …
the talent of
others.”
it. They …
—Warren Bennis & Patricia Ward Biederman,
Organizing Genius
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
FROM
FASHION TRENDS
GURU TO PICKING
AND DEVELOPING
PEOPLE!*
Les Wexner:
*Limited Brands founder Les Wexner queried on astounding longterm success:
It happened because “I got as excited about developing people”
as he had been about predicting fashion trends in his early years
(PARC’s Bob Taylor: “CONNOISSEUR OF TALENT” )
“The role of the Director is to
create a space where the actors
become
more than they’ve ever
been before,
more than they’ve
dreamed of being.”
and actresses can
—Robert Altman, Oscar acceptance speech
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
THE MORAL
IMPERATIVE
Your principal
moral obligation as a leader is to
develop the skillset, “soft” and
“hard,” of every one of the people
in your charge (temporary as well
as semi-permanent) to the
maximum extent of your abilities.
The good news: This is also the
#1 mid- to long-term …
profit maximization strategy!
CORPORATE MANDATE #1 2014:
In Good Business, Mihaly Csikszentmihalyi argues
persuasively that business has become the center of
society. As such, an obligation to community is front &
center. Business as societal bedrock, has the
“SUM OF
HUMAN WELL-BEING.”
RESPONSIBILITY to increase the
Business is NOT "part of the community." In terms of
how adults collectively spend their waking
BUSINESS IS THE
COMMUNITY. And should act accordingly.
hours …
The (REALLY) good news: Community mindedness
is a great way (THE best way?) to have
spirited/committed/ customer-centric work
force—and, ultimately, increase (maximize?)
profitability!
The Memories That Matter
The people you developed who went on to
stellar accomplishments inside or outside
the company.
The (no more than) two or three people you developed who went on to
create stellar institutions of their own.
The long shots (people with “a certain something”) you bet on who
surprised themselves—and your peers.
The people of all stripes who 2/5/10/20 years
later say “You made a difference in my life,”
“Your belief in me changed everything.”
The sort of/character of people you hired in general. (And the bad
apples you chucked out despite some stellar traits.)
A handful of projects (a half dozen at most) you doggedly pursued that
still make you smile and which fundamentally changed the way
things are done inside or outside the company/industry.
The supercharged camaraderie of a handful of Great Teams aiming to
“change the world.”
Hiring*
*Deconstructing leadership
“development can help great people
be even better— but
if
I had a dollar to spend, I’d
70 cents
spend
getting the right person in
the door.”
—Paul Russell, Director, Leadership and
Development, Google
the
most important
aspect of business
and yet remains woefully
misunderstood.”
“In short, hiring is
Source: Wall Street Journal, 10.29.08,
review of Who: The A Method for Hiring,
Geoff Smart and Randy Street
"When I hire
someone, that's
when I go to
work for
them.”
—John DiJulius, "What's the Secret
to Providing a World-class Customer Experience"
"When I hire
someone, that's
when I go to
work for
them.”
—John DiJulius, "What's the Secret
to Providing a World-class Customer Experience"
Quiet
“We live with a value system that I call the Extrovert Ideal—the
omnipresent belief that the ideal self is gregarious, alpha, and
comfortable in the spotlight. The archetypal extrovert prefers action to
contemplation, risk-taking to heed-taking, certainty to doubt. … We think
that we value individuality, but all too often we admire one type of
individual … Introversion is now a second-class personality trait. … The
Extrovert Ideal has been documented in many studies.
Talkative people, for example, are rated as smarter,
better looking, more interesting, and more desirable as
friends. Velocity of speech counts as well as volume: We
rank fast talkers as more competent and likeable than
slow ones. But we make a grave mistake to embrace the
Extrovert Ideal so unthinkingly. … As the science journalist
Winifred Gallagher writes, ‘The glory of the disposition that stops to
consider stimuli rather than rushing to engage with them is its long
association with intellectual and artistic achievement. Neither E = mc
squared or Paradise Lost was dashed off by a party animal.’ Even in less
obviously introverted occupations, like finance, politics, and activism,
some of the greatest leaps forward were made by introverts … figures
like Eleanor Roosevelt, Warren Buffett and Gandhi achieved what they
did not in spite of but because of their introversion.” —Susan Cain,
Quiet: The Power of Introverts in a World That Can’t Stop Talking
2/Year =
Legacy
Promotion Decisions
“life and
death
decisions”
Source: Peter Drucker, The Practice of Management
Evaluation
EVALUATING
#1
PEOPLE =
DIFFERENTIATOR
Source: Jack Welch, now Jeff Immelt on
GE’s top strategic skill (
!!!!)
Self-
Evaluation
“To develop
others, start
with yourself.”
—Marshall Goldsmith
“How can a high-level leader like _____ be
so out of touch with the truth about
himself? It’s more common than you
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
would imagine.
feedback [especially on people issues].”
—Daniel Goleman (et al.), The New Leaders
Training =
Investment
#1
6/2/3*
SIX MONTHS to develop
THREE MINUTES of new material
*It takes Jerry Seinfeld
TWO
or
(documentary: “Comedian”)
In the Army, 3-star
generals worry about
training. In most
businesses, it's a “ho
hum” mid-level staff
function.
“training,
TRAINING and
M-O-R-E
T-R-A-I-N-I-N-G”
—CINCPAC Nimitz to CNO King/1943
(punctuation Nimitz’s)
—
Training = Investment
#1
: In the Army,
3-star generals worry about
training. In most businesses,
the top training post is a
“ho-hum” mid-level staff slot.
Why is intensiveextensive training
obvious for the army &
navy & sports teams &
performing arts groups--
not
but
for the
average business?
Is your CTO/Chief
Training Officer your top
paid “C-level” job (other
than CEO/COO)?
Are your top trainers
paid/cherished as much as
your top marketers/
engineers?
Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?
If not, why not?
Are your top trainers paid as much as your top marketers and engineers?
If not, why not?
Are your training courses so
good they make you giggle and
tingle?
If not, why not?
Randomly stop an employee in the hall: Can she/he meticulously describe her/his
development plan for the next 12 months?
If not, why not?
Why is your world of business any different than the (competitive) world of rugby,
football, opera, theater,
the military?
If “people/talent first” and hyper-intense continuous training are laughably
obviously for them, why not you?
Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?
If not, why not?
Are your top trainers paid as much as your top marketers and engineers?
If not, why not?
Are your trai
ning courses so good they make you giggle and tingle?
If not, why not?
Randomly stop an employee in
the hall: Can she/he
meticulously describe her/his
development plan for the next
12 months?
If not, why not?
Why is your world of business any different than the (competitive) world of rugby,
football, opera, theater,
the military?
If “people/talent first” and hyper-intense continuous training are laughably
obviously for them, why not you?
Gamblin’ Man
>> 5 of 10 CEOs see
training as expense rather than
investment.
Bet #2: >> 5 of 10 CEOs see
training as defense rather than
offense.
Bet #3: >> 5 of 10 CEOs see
training as “necessary evil”
rather than “strategic
opportunity.”
Bet #1:
>> 8 of 10
CEOs, in 45-min
“tour d’horizon” of
their biz, would
NOT mention
training.
Bet #4:
What is the best reason to go
bananas over training?
GREED. (It pays off.)
(Training should be an official part of the
R&D budget and a capital expense.)
Training #1: Bottom Line
NOBODY gets off the
hook! “Training & Development
Maniac” applies as much to the
leader of the
4-person
business as to the chief of
the 44,444-person business.
st
1 -Line
Bosses
(Cadre of) =
Productivity Asset
#1!
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?
“People leave
managers not
companies.”
—Dave Wheeler
Is there ONE “secret” to
productivity and
employee satisfaction?
YES!
The Quality of your
FULL CADRE of …
1st-line Leaders.
!
WOMEN RULE
“I speak to you with a feminine voice.
It’s the voice of democracy, of equality.
that
this will be
the woman’s
century.
I am certain, ladies and gentlemen,
In the Portuguese language,
words such as life, soul, and hope are of the feminine
gender, as are other words like courage and sincerity.”
—President Dilma Rousseff of Brazil, 1st woman to
keynote the United Nations General Assembly (2011)
“Research
suggests
that to succeed, start
by promoting women.”
“McKinsey & Company found that the international companies
with more women on their corporate boards far outperformed the
average company in return on equity and other measures.
Operating profit was
56%
higher.”
Source: Nicholas Kristof, “Twitter, Women, and Power,” NYTimes, 1024.13
“AS
LEADERS,
WOMEN
RULE:
New Studies find that
female managers outshine their male
counterparts in almost every measure”
TITLE/ Special Report/ BusinessWeek
Women’s Strengths Match New
Economy Imperatives: Link [rather than
rank] workers; favor interactive-collaborative
leadership style [empowerment beats topdown decision making]; sustain fruitful
collaborations; comfortable with sharing
information; see redistribution of power
as victory, not surrender; favor multidimensional feedback; value technical &
interpersonal skills, individual & group
contributions equally; readily accept
ambiguity; honor intuition as well as pure
“rationality”; inherently flexible; appreciate
cultural diversity.
Source: Judy B. Rosener, America’s Competitive Secret: Women Managers
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/May 2006, World Business, “Say It
Like a Woman: Why the 21st-century negotiator will need the female touch”
Warren Buffett
Invests Like a Girl:
And Why You
Should Too
—Louann Lofton
Portrait of a Female Investor
1. Trade less than men do
2. Exhibit less overconfidence—more likely to know
what they don’t know
3. Shun risk more than male investors do
4. Less optimistic, more realistic than their male
counterparts
5. Put in more time and effort researching possible
investments—consider details and alternate points
of view
6. More immune to peer pressure—tend to make
decisions the same way regardless of who’s watching
7. Learn from their mistakes
8. Have less testosterone than men do, making them
less willing to take extreme risks, which, in turn,
could lead to less extreme market cycles
Warren Buffett Invests Like a Girl: And Why
You Should Too, Louann Lofton, Chapter 2, “The Science Behind the Girl”
Source:
CONTEXT
EXPONENTIAL
“Just like other members of
the board, the algorithm gets
to vote on whether the firm
makes an investment in a
specific company or not. The
program will be the sixth
member of DKV's board.”
Source: Business Insider, 13 May 2014: “A Hong Kong VC fund
has just appointed an algorithm to its board.”
Persado
(vs. copywriter): emotion words, product
characteristics, “call to action,” position of text, images
Up To $250 To Spend On
All Ships In All
Destinations. 2 Days Left
(1.3%)
vs.
No kidding! You Qualify
Experience An Incredible
Vacation With Us :-)
(4.1)
“A creative person is good but random. We’ve taken the
randomness out by building an ontology of language”
—Lawrence Whittle, head of sales
Source: Wall Street Journal/ 0825.14/ “It’s Finally Time to Take AI Seriously”
1,000,000
China/Foxconn:
1,000,000
robots/next 3 years
Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfee
“The greatest
shortcoming of the
human race is our
inability to
understand the
exponential
function.”
1/721:
—Albert A. Bartlett
“Meet Your
Next Surgeon:
Dr. Robot”
Source: Feature/Fortune/15 JAN 2013/on Intuitive Surgical’s
da Vinci
/multiple bypass heart-surgery robot
Persado
(vs. copywriter): emotion words, product
characteristics, “call to action,” position of text, images
Up To $250 To Spend On
All Ships In All
Destinations. 2 Days Left
(1.3%)
vs.
No kidding! You Qualify
Experience An Incredible
Vacation With Us :-)
(4.1)
“A creative person is good but random. We’ve taken the
randomness out by building an ontology of language”
—Lawrence Whittle, head of sales
Source: Wall Street Journal/ 0825.14/ “It’s Finally Time to Take AI Seriously”
“Just like other members of
the board, the algorithm gets
to vote on whether the firm
makes an investment in a
specific company or not. The
program will be the sixth
member of DKV's board.”
Source: Business Insider, 13 May 2014: “A Hong Kong VC fund
has just appointed an algorithm to its board.”
“Human level
capability has not
turned out to be a
special stopping point
from an engineering
perspective. ….”
Source: Illah Reza Nourbakhsh, Professor of Robotics, Carnegie Mellon, Robot Futures
IoT/The Internet of Things
IoE/The Internet of
Everything
M2M/Machine-to-Machine
Ubiquitous computing
Embedded computing
Pervasive computing
Industrial Internet
Etc.* ** ***
*“More Than 50
BILLION connected devices by 2020” —Ericsson
**Estimated 212 BILLION connected devices by 2020—IDC
***“By 2025 IoT could be applicable to $82 TRILLION of output or
approximately one half the global economy”—GE (The WAGs to end all WAGs!)
“The root of our problem is not
that we’re in a Great Recession
or a Great Stagnation, but rather
that we are in the early
Great
Restructuring
throes of a
.
Our technologies are racing ahead,
but our skills and organizations
are lagging behind.”
Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfee
“The median
worker is losing
the race against
the machine.”
—Erik Brynjolfsson and Andrew McAfee, Race Against The Machine
INNOVATION:
TWO TACTICS
/48
(No kidding)
Lesson48:
WTTMSW
WHOEVER
TRIES
THE
MOST
STUFF
WINS
Excellence82: 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
READY.
FIRE!
AIM.
H. Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)
Screw it.
Just do it.
—book title, Richard Branson
“WE HAVE A
‘STRATEGIC
PLAN.’ IT’S
CALLED DOING
THINGS.”
— Herb Kelleher
“EXPERIMENT
FEARLESSLY”
Tactic #1
Source: BusinessWeek, “Type A Organization Strategies: How to Hit a Moving Target”—
“RELENTLESS TRIAL
AND ERROR”
Source: Wall Street Journal, cornerstone of effective approach to “rebalancing” company
portfolios in the face of changing and uncertain global economic conditions (11.08.10)
“We made mistakes, of course. Most of them were omissions
We
fixed them by doing it over and over,
again and again. We do the same today. While our
we didn’t think of when we initially wrote the software.
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
“FAIL.
FORWARD.
FAST.”
High Tech CEO, Pennsylvania
“REWARD
excellent failures.
PUNISH mediocre
successes.”
—Phil Daniels, Sydney exec
Ideas Economy:
CAN YOUR
BUSINESS FAIL
FAST ENOUGH TO
SUCCEED?
Source: ad for Economist Conference/0328.13/Berkeley CA (caps are Economist)
“The secret of fast
progress is
inefficiency, fast
and furious and
numerous failures.”
—Kevin Kelly
1T/4,096
“YOU MISS
100%
OF
THE SHOTS YOU
NEVER TAKE.”
—Wayne Gretzky
WTTMSASTMSUTFW
WHOEVER
TRIES
THE
MOST
STUFF
AND
SCREWS
THE
MOST
STUFF
UP
THE
FASTEST
WINS
Act fast.
Fail fast.
Correct fast.
Make bigger and more
interesting mistakes.
All of life is an
experiment.
We Are
What
We Eat
“You will become like
the five people you
associate with the
most—this can be
either a blessing or a
curse.”
—Billy Cox
The “We are what we eat”/
“We are who we hang out with”
Axiom: At its core, every (!!!)
relationship-partnership decision
(employee, vendor, customer, etc.,
etc.) is a strategic decision about:
“Innovate,
‘Yes’ or ‘No’ ”
WE ARE THE
COMPANY
WE KEEP!
MANAGE IT!
“Who’s the most
interesting person
you’ve met in the last
90 days? How do I
get in touch with
them?”
—Fred Smith
“The Billion-man
Research Team:
Companies offering
work to online
communities are
reaping the benefits of
‘crowdsourcing.’”
—Headline, FT
Innovate
or Die:
Measure It!
Innovation Index: How many
of your Top 5 Strategic
Initiatives/Key Projects
score 8 or higher [out of 10]
on a “Weird”/“Profound”/
“Wow”/“Game-changer”
Scale? (At least 3???)
Innovation Index: Move every
2
project (definition)
notches up on the
“WOWification
Scale” … THIS WEEK.
“WOWification”
…
TOTALLY UN-related
!
to project size
Innovate
or Die:
Ubiquitous
Iron Innovation Equality Law:
The quality and
quantity and
imaginativeness
of innovation shall be
the same in all
functions —e.g., in HR and
purchasing as much as in marketing or
product development.*
SOME
VALUE-ADDED
STRATEGIES
TGRs:
8/80
Customers describing their service
experience as “superior”:
8%
Companies describing
the service experience they provide as
“superior”:
80%
—Source: Bain & Company survey of 362 companies, reported in John DiJulius,
What's the Secret to Providing a World-class Customer Experience?
Conveyance: Kingfisher Air
Location: Approach to New Delhi
“May I clean
your glasses,
sir?”
BEGINS
(and ENDS)
It
in the …
PARKING
LOT*
*Disney
<TGW
and …
>TGR
(Things Gone
WRONG-Things Gone RIGHT)
“Experiences
are as distinct
from services
as services are
from goods.”
—Joe Pine & Jim Gilmore, The Experience Economy:
Work Is Theatre & Every Business a Stage
C
*Chief e
O*
Xperience Officer
TGRS.
MANAGE ’EM.
MEASURE ’EM.*
*I use “manage-measure” a lot. Translation: These are
not “soft” ideas; they are exceedingly important things
that can be managed—AND measured.
TGRs:
LBTs
LITTLE =
Big carts =
Source: Wal*Mart
Bag sizes = New markets:
Source: PepsiCo
2X: “When Friedman
slightly
curved
the right angle of an
entrance corridor to one property, he
was ‘amazed at the magnitude of
change in pedestrians’ behavior—the
percentage who entered increased from
one-third to nearly two-thirds.”
—Natasha Dow Schull, Addiction By Design: Machine Gambling in Las Vegas
Social Business/
Customer
Engagement
“Customer engagement is moving
from relatively isolated market
transactions to deeply connected
and sustained social
relationships. This basic change
in how we do business will make
an impact on just about
everything we do.”
Social Business By Design: Transformative Social Media Strategies
For the Connected Company —Dion Hinchcliffe & Peter Kim
Biz 2014: Get Aboard the “S-Train”
SM/Social Media.
SX/Social eXecutives.
SE/Social Employees.
SO/Social Organization.
SB/Social Business.
Seven Characteristics of the Social Employee
1. Engaged
2. Expects Integration of the
Personal and Professional
3. Buys Into the Brand’s Story
4. Born Collaborator
5. Listens
6. Customer-Centric
7. Empowered Change Agent
Source: Cheryl Burgess & Mark Burgess,
The Social Employee
Marbles, a Ball and Social Employees ay IBM
“Picture a ball and a bag of marbles side by side. The two
items might have the same volume—that is, if you dropped
them into a bucket, they would sisplace the same amount of
water. The difference, however, lies in the surface area,
Because a bag of marbles is comprised
of several individual pieces, the
combined surface area of all the
marbles far outstrips the surface area
of a single ball. The expanded surface area
represents a social brand’s increased diversity. These
surfaces connect and interact with each other in unique
ways, offering customers and employees alike a variety of
paths toward a myriad of solutions. If none of the paths prove
to be suitable, social employees can carve out new paths on
their own.” —Ethan McCarty, Director of Enterprise Social Strategy, IBM (from Cheryl
Burgess & Mark Burgess,
The Social Employee
“Amy Howell
[social marketer extraordinaire,
ignites
epidemics. In a good way,
of course. Epidemics of
excitement. Epidemics of
business connections.
Epidemics of influence.”
founder of Howell Marketing]
—Mark Schaeffer, ROI/Return on Influence: The Revolutionary
Power of Klout, Social Scoring, and Influence Marketing
DESIGN
Design Rules!
APPLE market cap
> Exxon Mobil’s*
*August 2011
Hypothesis: Men
CANNOT
design for women’s
!!??
needs
Women BUY
!
“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 confidant 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
The Perfect Answer
Jill and Jack buy
slacks in black…
Sales/After-sales Process
1.
2.
3.
4.
5.
Kick-off – Women
Research – Women
Purchase – Men
Ownership – Women
Word-of-mouth – Women
Source: Martha Barletta, Marketing to Women: How to Increase Your Share of the World’s Largest Market
We
[old farts like me]
Got the
$$$$$$
1/8/20
!!!!!!!!!!!!!!!!!
“PEOPLE TURNING 50
MORE
THAN HALF OF
TODAY HAVE
THEIR ADULT LIFE
AHEAD OF THEM.”
—BILL NOVELLI,
50+: IGNITING A REVOLUTION TO REINVENT AMERICA
“In 2009, households headed by
adults ages 65 and older ... had
47 times
as much
net wealth as the typical
household headed by someone
under 35 years of age. In 1984,
this had been a less lopsided
10-to-1 ratio.”
Source: Pew Research/10.11
“NEW
CUSTOMER
MAJORITY”
44-65:
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
The
[ENORMOUS??]
Services
Opportunity
M
IBM
IB
to
$55B*
*IBM Global Services/
“Systems integrator of choice”
PS
UPS
U
to
“Big Brown’s New Bag: UPS Aims to
Be the Traffic Manager for
Corporate America” —Headline/BW
“UPS wants to take over the sweet
spot in the endless loop of goods,
information and capital that all the
packages [it moves] represent.” —ecompany.com
“It’s all about solutions. We work
with customers on creating and
running better, stronger, cheaper
supply chains.” —Bob Stoffel, UPS senior exec
“Rolls-Royce now
earns more from tasks
such as managing clients’
overall procurement
strategies and
maintaining aerospace
engines it sells than it
does from making them.”
—Economist
Era #1/Obvious Value: “Our ‘it’ works, is
delivered on time” (“Close”)
Era #2/Augmented Value: “How our ‘it’
can add value—a ‘useful it’ ” (“Solve”)
Era #3/Complex Value Networks: “How
our ‘system’ can change you and
deliver ‘BUSINESS ADVANTAGE’”
(“Culture-Strategic change”)
Source: Jeff Thull, The Prime Solution: Close the Value Gap,
Increase Margins, and Win the Complex Sale
0/800
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!
“INSANELY GREAT”
STEVE JOBS
“RADICALLY THRILLING”
BMW
“Normal” =
“0
*There are …
for
ZERO
800”
… “normal people” in the history books.
“The reasonable man adapts
himself to the world; the
unreasonable one persists in
trying to adapt the world to
himself. Therefore all progress
depends on the unreasonable
man.” —G.B. Shaw, Man and Superman: The Revolutionist’s Handbook
“Whenever anything is being
accomplished, it is being done, I
have learned, by a monomaniac
with a mission.” —Peter Drucker