Tom Peters’
EXCELLENCE.
ALWAYS.
Bunge/Senior Managers’ Meeting
11 June 2008/Buenos Aires
To appreciate
this presentation [and ensure
that it is not a mess], you need
Microsoft fonts:
NOTE:
“Showcard Gothic,”
“Ravie,” “Chiller”
and “Verdana”
Slides at …
tompeters.com
“We Have …
Thank
you,
Starbucks!
Sports: You
beat
yourself!
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)
Thank
you Herb
“You have to
treat your
employees like
customers.”
—Herb Kelleher,
upon being asked his “secret to success”
Source: Joe Nocera, NYT, “Parting Words of an Airline Pioneer,”
on the occasion of Herb Kelleher’s retirement after 37 years
at Southwest Airlines (SWA’s pilots union took out a full-page
ad in USA Today thanking HK for all he had done; across the
way in Dallas American Airlines’ pilots were picketing the
Annual Meeting)
Thank
you Ben,
Norm, Ike
and
Delaware
Give
good
tea!
“Allied commands depend
on mutual confidence
[and this confidence]
is gained, above all
through the development
of friendships.”
—General D.D. Eisenhower,
Armchair General* (05.08)
*“Perhaps his most outstanding ability [at West Point] was
the ease with which he made friends and earned the trust
of fellow cadets who came from widely varied backgrounds;
it was a quality that would pay great dividends during his
future coalition command
“Ninety percent
of success is
showing up.”
—Woody Allen
Thank
you Rich!
“Mapping your
competitive
position”*
or …
*Rich D’Aveni/HBR
The “Have
you …” 50*
*See Appendix One
1. Have you in the
last 10 days …
visited a customer?
2. Have you called a
customer … TODAY?
*
*
*
Thank
you
Dr. Groopman
Thank
you Dick &
Dan
Dick (Build!)
Dan (Report on
what not built)
Thank
you Walter
itics politics politi
itics politics politi
itics politics politi
itics politics politi
itics politics politi
itics politics politi
???????
“Success doesn’t depend on the number of
people you know; it depends on the number
of people you know in
high places!”
or
“Success doesn’t depend on the number of
people you know; it depends on the number
of people you know in
low
places!”
Thank
you
Heather
10 UNASSAILABLE REASONS WOMEN RULE
Women make [all] the financial decisions.
Women control [all] the wealth.
Women [substantially] outlive men.
Women start most of the new businesses.
Women’s work force participation rates have
soared worldwide.
Women are closing in on “same pay for same
job.”
Women are penetrating senior ranks rapidly
[even if the pace is slow for the corner
office per se].
Women’s leadership strengths are exceptionally well
aligned with new organizational effectiveness
imperatives.
Women are better salespersons than men.
Women buy [almost] everything—commercial
as well as consumer goods.
So what exactly is the point of men?
Thank
you Sheik
Mohammad
Single
greatest act
of pure
imagination
Thank
you Bob
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
Thank
you Siberia
in May!
Why in the
World did you
go to Siberia?
An
emotional, vital, innovative,
joyful, creative,
entrepreneurial endeavor
that elicits maximum
Enterprise* ** (*at its best):
concerted human
potential in the
wholehearted service of
others.**
**Employees, Customers, Suppliers, Communities, Owners, Temporary partners
“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
“Forbes100” from 1917 to 1987
: 39
members of
the Class of ’17 were alive in ’87; 18 in ’87
F100; 18 F100 “survivors” significantly
underperformed the market;
just
2 (2%), GE & Kodak,
outperformed the market from
1917 to 1987.
S&P 500 from 1957 to 1997:
’97;
74 members of the Class of ’57 were alive in
12 (2.4%) of 500 outperformed the market from 1957 to 1997.
Source: Dick Foster & Sarah Kaplan, Creative Destruction:
Why Companies That Are Built to Last Underperform the Market
GE
Decentralization to the point of failure to pursue
synergies
Accountability (extreme, merciless, all levels)
Profitability
Metric madness (not portable—the Nardelli case
Six-sigma religion (limits innovation? 3M, Boeing?)
Execution (Bossidy)
Truth-telling
Decentralized staff except for financial integrity, risk,
management, management development
Operational excellence
Centralized major initiatives with teeth, but not to the
detriment of decentralization, accountability (e.g., via
best practices
Management development (Deep)
Succession effectiveness (Jones, Welch, Immelt)
(universal)
Up or out
Targeted acquisitions
“Mr. Foster and his McKinsey
colleagues collected detailed
performance data stretching back 40
years for 1,000 U.S. companies. They
found that
none
of the
long-term survivors managed to
outperform the market. Worse, the
longer companies had been in the
database, the worse they did.” —Financial
Times
“Data drawn from the real world
attest to a fact that is beyond
Everything
in existence tends
to deteriorate.”
our control:
—Norberto Odebrecht, Education Through Work
$10,000,000/Day
Mission impossible?
$36B/’98
minus
$675M/‘07
$10,000,000/Day
“Citigroup merger a mistake ”
“sad story”
“The stockholders have not
benefited. The employees
certainly have not benefited and
I don’t think the customers
have benefited because our
franchises are weaker than
they have been.”
Source: Financial Times, 0404.2008 (All quotes
courtesy John Reed, who crafted the CitiTravelers merger in 1998 in a $166B deal)
“Despite a decade of
banking mergers, there is no
evidence that big banks are
any more efficient or
profitable than their smaller
rivals.” —Financial Times, 0329, on
possible Barclays-ABN Amro merger (“When it
comes to asking the stock market whether
bigger banks are better, the current answer is a
resounding ‘no.” —Citigroup analysis, 2006)
“When asked to name just one big
merger that had lived up to
expectations, Leon Cooperman,
former cochairman of Goldman Sachs’
Investment Policy Committee,
I’m sure there are
success stories out
there, but at this
moment I draw a blank.”
answered:
—Mark Sirower, The Synergy Trap
You don’t
get better
by being
bigger. You
Dick Kovacevich:
“A pattern emphasized in the case
studies in this book is the degree to
which powerful competitors not
only resist innovative threats,
but actually resist all efforts to
understand them, preferring to
further their positions in older
products. This results in a surge of
productivity and performance that
may take the old technology to
unheard of heights. But in most cases
this is a sign of impending death.”
—Jim Utterback, Mastering the Dynamics of Innovation
There’s “A”
and then
there’s “A.”
Winning the Merger Game
Is
Possible
--Lots of deals
--Little deals
--Friendly deals
—Stay close to core competence
—Strategy is easy to understand
Source: “The Mega-merger Mouse Trap”/Wall Street Journal/02.17.2004 /
David Harding & Sam Rovit, Bain & Co./re Comcast-Disney
#1.1
The last
word:
There is
no “last
word.”
Flat as a Pancake (Or Worse)
Wal*Mart … Dell … Intel
… Yahoo … Home Depot
… Microsoft … GE
“It is not the
strongest of the
species that survives,
nor the most
intelligent, but the
one most responsive
to change.”
—Charles Darwin
C.E.O.
to
C.D.O.
Chief
Destruction
Officer
Q4/2006
+500,000
Source: Barron’s 0922.07
Q4/2006
+500,000 = ?
Source: Barron’s 0922.07
Q4/2006
+500,000 =
+7,700,000
-7,200,000
Source: Barron’s 0922.07
#2
#1 Exporter?
#4 Japan
#3 USA
#2 China
#1 Germany
Reason!!!
Mittelstand
Or …
Goldmann
Produktions
(11/50%/$5M/”dip and coat,” expensive pigments
vs “through coloring,” fades Bekro Chemie)
Focus: “A recent study by [Stanford]
Business School faculty shows that
producers whose offerings or
expertise are more clearly
associated with one or two product
categories have better sales
than those whose goods or
professional identity span multiple
categories. More focused producers throw off
subtle hints that they know their stuff, which is
not lost on customers. In short, says professor
Michael Hannan, ‘The jack of all trades is the
master of none governs consumer choices of
whose goodies to buy.’ ” —Stanford Business, 0208
#3
The
black
swan
1982 (-) =
200
Years (+)
1982/Default Latin
America =
years
200
[Total historical earnings]
The Black Swan: The Impact of the
Highly Improbable, Nassim Nicholas Taleb
Career =
1 or 2
black swans
Black Swan: This is
how you earn
your pay!* **
*See: The Black Swan: The Impact of the Highly
Improbable, Nassim Nicholas Taleb
**WSC: “When the seas are calm all ships alike show
mastership in sailing.”
“Character is more crucial now
than ever, because in times of
great uncertainty past
performance is no indicator of
future performance. Experience
falls away and all you’re left
with is character.” —David Rothkopf,
founder of a firm that helps chief executives manage
risks
“Diverse groups of problem solvers—
groups of people with diverse tools—
consistently outperformed groups of the
best and the brightest. If I formed two
groups, one random (and therefore
diverse) and one consisting of the best
individual performers, the first group
almost always did better. …
Diversity trumped
ability.”
—Scott Page, The Difference: How
the Power of Diversity Creates Better Groups,
Firms, Schools, and Societies Diversity
“This book
is about luck disguised and perceived as non-luck (that is, skills) and more
generally randomness disguised and perceived as non-randomness. It manifests
itself in the shape of the lucky fool, defined as a person who benefited from a
disproportionate share of luck but attributed his success to some other,
generally precise reason.”
Fooled by Randomness: The Hidden Role of Chance in Life and the Markets, Nassim Nicholas Taleb
The Black Swan: The Impact of the Highly Improbable, Nassim Nicholas Taleb
“A fox, the thinker who
knows many little things, draws from an eclectic array of disciplines, and is better
able to improvise in response to changing events, is more successful in
predicting the future than the hedgehog, who knows one big thing, toils devotedly
within one tradition, and imposes formulaic solutions on ill defined problems.”
Expert Political Judgment: How Good Is It? How Can We know? Philip Tetlock
The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies , Scott Page
“Diverse groups of problem solvers—groups of people with diverse tools—
consistently outperformed groups of the best and the brightest. If I formed
two groups, one random (and therefore diverse) and one consisting of the best
individual performers, the first group almost always did better. … Diversity
trumped ability.”
The Wisdom of Crowds, James Surowiecki
Full House: The Spread of Excellence from Plato to Darwin, Stephen Jay Gould
Judgment under Uncertainty: Heuristics and Biases, Daniel Kahneman, Paul Slovic, and Amos Tversky
“Your brain has some shifty
habits that leave the truth distorted and disguised. Your brain is vainglorious. It’s
emotional and immoral. It deludes you. It is pigheaded, secretive and weak willed.
Oh, and it’s also a bigot.”
A Mind of Its Own: How Your Brain Distorts and Deceives , Cordelia Fine
General David Petraeus’
“White lines along the road”:
“Secure and serve the population.
Live among the people.
Promote reconciliation.
Move mounted, work dismounted;
situational awareness can only be
achieved by operating face-to-face,
not separated by ballistic glass.
Walk.*”
—David Petraeus, Men’s Journal (06.08)
* “I love that last one for its simplicity.” —DP
“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
You = Your
calendar*
*Calendars
never lie
ell sell sell sell
ell sell sell sell
ell sell sell sell
ell sell sell sell
ell sell sell sell
Listen.
Talk.
Conrad Hilton, at a gala
celebrating his life,
was asked, “What was the
most important lesson
you’ve learned in your long
and distinguished career?”
His immediate answer …
“remember
to tuck the
shower curtain
inside the
bathtub”
#6.1
Howard
Hilton
Herb
Conrad Hilton, at a gala celebrating his life,
was asked, “What was the most important lesson you’ve learned
in your long and distinguished career?”
His immediate answer:
“remember
to tuck the
shower curtain
inside the
bathtub”
“You have to
treat your
employees like
customers.”
—Herb Kelleher,
upon being asked his “secret to success”
Source: Joe Nocera, NYT, “Parting Words of an Airline Pioneer,”
on the occasion of Herb Kelleher’s retirement after 37 years
at Southwest Airlines (SWA’s pilots union took out a full-page
ad in USA Today thanking HK for all he had done; across the
way in Dallas American Airlines’ pilots were picketing the
Annual Meeting)
3H: Howard, Hilton, Herb
**Stay in touch!
**Sweat the
details!
**It’s the people,
stupid!
2-cent
candy
<TGW
vs.
>TGR
Master of “TGR” Cont.
Granite Rock Co.
(Cross it out if you think we did it poorly)
“one idea.”
1966-2008.
“We have a
‘strategic plan.’
It’s called doing
things.”
— Herb Kelleher
“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
“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
"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
“Experiment
fearlessly”
Source: BW0821.06, Type A Organization Strategies/
“How to Hit a Moving Target”—Tactic #1
“Fail .
Forward.
Fast.”
High Tech CEO, Pennsylvania
“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
“FAIL, FAIL
AGAIN. FAIL
BETTER.”
—Samuel Beckett
“The secret of fast
progress is
inefficiency, fast
and furious and
numerous failures.”
—Kevin Kelly
“Reward
excellent failures.
Punish mediocre
successes.”
Phil Daniels, Sydney exec
“You miss
100% of
the shots you
never take.”
—Wayne Gretzky
“Intelligent people
can always come up
with intelligent
reasons to do
nothing.”
—Scott Simon
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”
“one idea.”
1966-2008.
ry it. Try it. Screw
t up. Try it. Try it
Try it. Try it. Try it
ry it. Screw it up
Try it. Try it. try i
ry it. Screw it up
What “We” Know “For Sure” About Innovation
Big mergers [by & large] don’t work
Scale is over-rated
Strategic planning is the last refuge of scoundrels
Focus groups are counter-productive
“Built to last” is a chimera (stupid)
Success kills
“Forgetting” is impossible
Re-imagine is a charming idea
“Orderly innovation process” is an oxymoronic phrase
(= Believed only by morons with ox-like brains)
“Tipping points” are easy to identify …
long after they will do you any good
“Facts” aren’t
All information making it to the top is filtered
to the point of danger and hilarity
“Success stories” are the illusions of egomaniacs (and “gurus”)
If you believe the memoirs of CEOs you should be institutionalized
“Herd behavior” (XYZ is “hot”) is ubiquitous
… and amusing
“Top teams” are “Dittoheads”
“Expert” prediction is rarely better than rolling the dice
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
The
“Havlicek
Principle”
John Havlicek, Boston Celtics, Basketball
Hall of Fame:
“He was out on the court
ALL THE TIME [still among the top all-time in
minutes played] and he KEPT MOVING, on
offense and defense, ALL THE TIME.
This meant he was effective even
against bigger or faster opponents—
he HARRIED AND WORRIED THEM
TO DEATH on both ends of the court.”
Source: Tim Walker/tompeters.com
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
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
Enemy
#1
I.C.D.
Inherent/Inevitable/
Immutable Centralist Drift
Note 1:
Note 2: Jim Burke’s 1-word vocabulary: “No.”
Decentralization
vs Centralization
= “That’s All
There Is” (from childrearing
101 to the Federalist Papers to Org.2007)
“Parallel
Universe” …
China!!!!!!!
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
“almost inhuman
disinterestedness in
… strategy” —Josiah Bunting
on
U.S. Grant (from Ulysses S. Grant)
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
Drucker, Strategy, Leadership
Classic Drucker (from the HBR),
221 pages: “strategy,” 3 p
(infotech); “leadership,” 0.
The Practice of Management,
404 p: “strategy,” 0;
“leadership,” 3 p.
Management, 568 p: “strategy,”
8 p (all on systems, none on
content), “leadership,” 12 p.
Excellence in
Execution =
Deepest “Blue
Ocean”
Ac-counta-bil-ity!
“Mr Zetsche, head of
Chrysler from 2000 to
2005, denied he should
take any responsibility for
the U.S. carmaker’s
troubles …”
—Financial Times /05.29.07
“GE has set a standard
of candor. … There is no
puffery. … There isn’t
an ounce of denial in
the place.”
—Kevin Sharer, CEO Amgen,
on the “GE mystique” (Fortune)
30%
MH: 80%
CF:
(no salesfolk)
(salesfolk)
SECDEF Bob Gates:
Walter Reed, Army
Sec’y; Nucs, USAF
Sec’y & COS
“Pay It Back
If You Didn’t
Earn It” —headline, New
York Times, 0616.08, on 300 “clawback”
provisions for execs, often when earnings restatements occur
6:15A.M.
DECENTRALIZATION.
EXECUTION.
ACCOUTABILITY.
6:15A.M.
“But it’s
only
2am!”
“Where are you going? … But it’s
only 2am. … You see, you can live
your life at 120 miles an hour, and
that’s pretty impressive. But it’s not
good enough. Unless you live at 150
miles an hour, the world will pass
you by,” HRH Prince Alwaleed*
*1 day: 573 people met separately, 200 phone calls, 100 text messages, etc
Source: “Prince Alwaleed, Inside the private world of the Middle East’s
most powerful investor” cover story, The Business, 0519.07
DECENTRALIZATION.
EXECUTION.
ACCOUTABILITY.
2a.m.
#9.1
Excellence: The SE22:
ORIGINS OF SUSTAINABLE
ENTREPRENEURSHIP*
*Maybe
SE22/Origins of Sustainable Entrepreneurship
1. Genetically disposed to Innovations that upset apple carts (3M, Apple,
FedEx, Virgin, BMW, Sony, Nike, Schwab, Starbucks, Oracle, Sun,
Fox, Stanford University, MIT)
2. Perpetually determined to outdo oneself, even to
the detriment of today’s $$$ winners (Apple, Cirque du Soleil, Nokia, FedEx)
3. Treat History as the Enemy (GE)
4. Love the Great Leap/Enjoy the Hunt (Apple, Oracle, Intel, Nokia, Sony)
5. Use “Strategic Thrust Overlays” to Attack Monster Problems (Sysco,
GSK, GE, Microsoft)
6. Establish a “Be on the COOL Team” Ethos. (Most PSFs, Microsoft)
7. Encourage Vigorous Dissent/Genetically “Noisy” (Intel, Apple,
Microsoft, CitiGroup, PepsiCo)
8.
“Culturally” as well as
organizationally Decentralized
(GE, J&J, Omnicom)
9. Multi-entrepreneurship/Many Independent-minded Stars (GE, PepsiCo)
SE22/Origins of Sustainable Entrepreneurship
18. Unmistakable Results & Accountability focus from
the get-go to the grave (GE, New York Yankees, PepsiCo)
19. Up
or Out (GE, McKinsey, big consultancies and law
firms and ad agencies and movie studios in general)
20. Competitive to a fault! (GE, New York Yankees, News
Corp/Fox, PepsiCo)
21. “Bi-polar” Top Team, with “Unglued” Innovator #1,
powerful Control Freak #2 (Oracle, Virgin) (Watch out when
#2 is missing: Enron)
22. Masters of Loose-Tight/Hard-nosed about a very few
Core Values, Open-minded about everything else
(Virgin)
X =XFX*
*Excellence = Cross-functional Excellence
The “XF-50”: 50 Ways to
Enhance CrossFunctional
Effectiveness and
Deliver Speed, “Service
Excellence” and “Valueadded Customer
‘Solutions’”
1. It’s
our organization to make work—or not. It’s not “them,” the
outside world that’s the problem. The enemy is us. Period.
2. Friction-free! Dump 90% of “middle managers”—most are advertent or inadvertent “power
freaks.” We are all—every one of us—in the Friction Removal Business, one moment at a time,
now and forevermore.
3. No “stovepipes”! “Stove-piping,” “Silo-ing” is an Automatic Firing Offense. Period. No
appeals. (Within the limits of civility, somewhat “public” firings are not out of the question—that
is, make one and all aware why the axe fell.)
4. Everything on the Web. This helps. A lot. (“Everything” = Big word.)
5. Open access. All available to all. Transparency, beyond a level that’s “sensible,” is a de facto
imperative in a Burn-the-Silos strategy.
Project managers rule!! Project managers running XF (crossfunctional) projects are the Elite of the organization, and seen as
such and treated as such. (The likes of construction companies
have practiced this more or less forever.)
6.
7. “Value-added Proposition” = Application of integrated resources. (From the entire supplychain.) To deliver on our emergent business raison d’etre, and compete with the likes of our
Chinese and Indian brethren, we must co-operate with anybody and everybody “24/7.” IBM, UPS
and many, many others are selling far more than a product or service that works—the new “it” is
pure and simple a product of XF co-operation; “the product is the co-operation” is not much of a
stretch.
Never
waste a
lunch!*
????
% XF
lunches*
*Measure!
K.i.s.s.
*Keep It Simple, Stupid
Case: The
“simple”
Checklist!
90K in U.S.A. ICUs on any
given day; 178 steps/day
in ICU.
50%
stays result
in “serious complication”
Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07)
**Peter Pronovost, Johns Hopkins,
2001
**Checklist, line infections
**1/3rd at least one error when he started
**Nurses/permission to stop procedure
if doc, other not following checklist
**In 1 year, 10-day line-infection rate:
11% to …
0%
Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07)
“Beware of the
tyranny of making
Small Changes to Small
Things. Rather, make
Big
Changes to
Things.”
Big
—Roger Enrico, former Chairman, PepsiCo
“Beware of the tyranny of making
Small
Things.
Small
Changes to
Rather, make Big
Big Things …
using Small, Almost
Invisible
Straightforward
Levers with Big
Systemic Impact.”
Changes to
—TP
“Everything matters”
-80%
Source: Nudge, Richard Thaler and Cass
Sunstein, etching of fly in the urinal
reduces “spillage” by 80%, Schiphol Airport
Lisbon/New Biz:
Weeks
to …
Minutes
(!!!!)
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.
Beauty
Grace
Clarity
Simplicity
“One bank is currently
claiming to … ‘leverage its global
footprint to provide effective financial
solutions for its customers by providing
a gateway to diverse markets.’”
—Charles Handy
“I assume that it is just
saying that it is there to
‘help its customers
wherever they are’.”
—Charles Handy
“Seek honest, minimalist management.
Look for companies run by a team that
explains things clearly and briefly. …
You can tell a lot about the firm by
reading an annual report or two. If
management can’t explain the
business in plain English, move
on to another firm. If you see
phrases like ‘creating knowledge-based
value in emerging markets’ … someone
is trying to pull the wool over your eyes,
you lazy Fool. Run.” —Seth Jayson, “Stocks for the
Lazy Investor,” The Motley Fool
“How to flush
$500,000 down
the toilet in one
easy lesson!!”
TP:
< CAPEX
> People!
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
#12.1
Organizations exist to serve. Period.
Leaders live to serve. Period.
Passionate servant leaders, determined to create a
legacy of earthshaking transformation in their domain
create/must necessarily create organizations which
no less than Cathedrals in
which the full and awesome
power of the Imagination and
Spirit and native
Entrepreneurial flair of
diverse individuals is
unleashed … In passionate pursuit of jointly
are …
perceived soaring purpose and personal and community
and client service Excellence.
… no less than
Cathedrals
in which the full and
awesome power of the
Imagination and Spirit and
native Entrepreneurial flair
of diverse individuals is
unleashed in passionate
pursuit of … Excellence.
#12.2
Hire very
good
people!
“We believe companies can increase their market cap
50 percent in 3 years. Steve Macadam at Georgia-
Pacific …
changed
20 of his
40 box plant managers
to put more talented,
higher paid managers in
charge. He increased profitability from
$25
million to
$80
million in
—Ed Michaels, War for Talent
2
years.”
#12.3
PUT HR AT THE
HEAD OF THE HEAD
TABLE. BEST
PEOPLE. NOBLEST
MISSION.
#12.4
Organizing Genius / Warren Bennis
and Patricia Ward Biederman
“Groups become great only when
everyone in them, leaders and
members alike, is free to do his or
her absolute best.”
“The best thing a leader can do for a
Great Group is to allow its
members to discover their
greatness.”
Leaders’ “Mt Everest Test”
“free to do his or her
absolute best” …
“allow its members to
discover their
greatness.”
“The role of the Director is to create a
space where the actors and
become more
than they’ve ever been
before, more than
they’ve dreamed of
being.”
actresses can
—Robert Altman, Oscar acceptance speech
#12.5
“… but Tom, how do we find out
what it is that people really want?”
Exec:
Tom (after a long pause and a lot of thought
—and I’m not kidding):
“Ask
‘em.”
“The four most important
words in any
organization
‘What do
you think?’ ”
are …
Source: courtesy Dave Wheeler,
posted at tompeters.com, source of
original unknown (0609.08)
#12.6
EMPHASIZE
THE “SOFT
SKILLS.”
#12.7
#12.8
2/year =
legacy.
#12.9
#1 cause of
Dis-satisfaction?
Employee retention & satisfaction:
Overwhelmingly,
based on their
immediate manager!
Source: Marcus Buckingham & Curt Coffman, First, Break All
the Rules:
What the World’s Greatest Managers Do Differently
#12.10
‘do’
“Leaders
people.
Period.”
—Anon.
“The leaders of Great Groups
love talent and know
where to find it. They
revel in the talent
of others.”
—Warren Bennis &
Patricia Ward Biederman, Organizing Genius
PARC’s Bob Taylor:
“Connoisseur
of Talent”
(from Warren Bennis & Patricia Ward Biederman, Organizing Genius)
#12.11
“Leaders
‘SERVE’
people.
Period.”
—inspired by Robert Greenleaf
“No matter what the situation,
[the great manager’s] first response is
always to think about the
individual concerned and how
things can be arranged to help
that individual experience
success.” —Marcus Buckingham,
The One Thing You Need to Know
“I have always
believed that the
purpose of the
corporation is to be a
blessing to the
employees.” *
—Boyd Clarke
*TP: An “organization” is, in fact and after all
is said and done, a/the “house” in which
most of us “live” most of the time.
#12.12
“Every child is
born an artist.
The trick is to
remain an
artist.” —Picasso
Single
greatest act
of pure
imagination
No Wiggle Room!
“Incrementalism
is innovation’s
worst enemy.”
—Nicholas Negroponte
3M’s Innovation
Crisis: How Six Sigma
Almost Smothered
Its Idea Culture
Source: Title/Cover Story, BW, 0611.07 (“What’s remarkable is
how fast a culture can be torn apart,” 3M lead scientist; “In
an innovation economy, [6 Sigma] is no longer a cure all”/BW)
“Do one thing
every day
that scares
you.”
—Eleanor Roosevelt
Kevin Roberts’ Credo
1. Ready. Fire! Aim.
2. If it ain’t broke ... Break it!
3. Hire crazies.
4. Ask dumb questions.
5. Pursue failure.
6. Lead, follow ... or get out of the way!
7. Spread confusion.
8. Ditch your office.
9. Read odd stuff.
10.
Avoid moderation!
Stay Hungry.
Stay Foolish.
Steve Jobs
We are the
company
we keep
The “Hang Out Axiom”: At
its core, every (!!!)
relationship-partnership
decision (employee,
vendor, customer, etc)
is a strategic decision
about:
“Innovate,
‘Yes’ or ‘No’ ”
Measure “Strangeness”/Portfolio Quality
Staff
Consultants
Vendors
Out-sourcing Partners (#, Quality)
Innovation Alliance Partners
Customers
Competitors (who we “benchmark” against)
Strategic Initiatives
Product Portfolio (LineEx v. Leap)
IS/IT Projects
HQ Location
Lunch Mates
Language
Board
“Future-defining
customers may account for
only 2% to 3% of your total,
CUSTOMERS:
but they represent a
crucial window on the
future.”
Adrian Slywotzky, Mercer Consultants
Axiom: Never use a vendor
who is not in the top
quartile (decile?) in
their industry on R&D
spending!*
*Inspired by Hummingbird
“Normal” =
“o for 800”
“Freak
Fridays”
—once a month
invite somebody interesting, in any field, to have lunch
with your gang
“We are crazy. We should do
something when people say it is
If people say
something is ‘good’, it
means someone else
is already doing it.”
‘crazy.’
—Hajime Mitarai, Canon
Gary Hamel says …
“The
Bottleneck Is at
the Top of the Bottle”
“Where are you likely to find people with the least diversity of
experience, the largest investment in the past, and the greatest
reverence for industry dogma:
At the top!”
— Gary Hamel/Harvard Business Review
Hard Is Soft
Soft Is Hard
Hard Is Soft (Plans, #s)
Soft Is Hard (people,
customers, values,
relationships))
“If I could have chosen not to tackle the IBM culture head-on, I
probably wouldn’t have. My bias coming in was toward strategy,
analysis and measurement. In comparison, changing the
attitude and behaviors of hundreds of thousands of people is
[Yet] I came to see in
my time at IBM that culture
isn’t just one aspect of the
very, very hard.
game —it is the
game.”
—Lou Gerstner,
Who Says Elephants Can’t Dance
Hard Is Soft
Soft Is Hard
R.O.I.R.
Return On
Investment In
Relationships
“The capacity to develop close and
enduring relationships is the mark of
a leader. Unfortunately, many leaders
of major companies believe their job
is to create the strategy, organization
structure and organizational
processes—then they just delegate
the work to be done, remaining aloof
from the people doing
the work.” —Bill George, Authentic Leadership
Hard Is Soft
Soft Is Hard
Q/Systems Salesperson: “I make the
sale, and then the company screws up
the engineering or delivery or one of a
dozen things. Any suggestions?
“Spend less
time with your
customers!”
A/TP:
C(I)>C(E)
???????
“Success doesn’t depend on the number of
people you know; it depends on the number
of people you know in
high places!”
or
“Success doesn’t depend on the number of
people you know; it depends on the number
of people you know in
low
places!”
Loser:
“He’s such a
suck-up!”
Winner:
“He’s such a
suck-down.”
#16.3
Hard Is Soft
Soft Is Hard
Relationships
(of all varieties):
THERE
ONCE WAS A TIME WHEN A
THREE-MINUTE
PHONE CALL WOULD
HAVE AVOIDED SETTING OFF THE
DOWNWARD SPIRAL THAT RESULTED
IN A COMPLETE RUPTURE.
THE PROBLEM IS
RARELY/NEVER THE
PROBLEM. THE
RESPONSE TO THE
PROBLEM INVARIABLY
ENDS UP BEING THE
REAL PROBLEM.
“I screwed
up.”*
*The virtuous “circle of blame
#16.4
Hard Is Soft
Soft Is Hard
“Courtesies of a small and
trivial character are the
ones which strike
deepest in the grateful
and appreciating heart.”
—Henry Clay
The Manager’s Book
of Decencies: How
Small /gestures
Build Great
Companies.
—Steve Harrison, Adecco
“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
“It was much later that I realized
Dad’s secret. He gained respect by
giving it. He talked and listened to
the fourth-grade kids in Spring Valley
who shined shoes the same way he
talked and listened to a bishop or a
He was
seriously interested in
who you were and what
you had to say.”
college president.
Sara Lawrence-Lightfoot, Respect
#16.5
itics politics politi
itics politics politi
itics politics politi
itics politics politi
itics politics politi
itics politics politi
love it or
leave it!
A pox on
“micromarketing”
Who buys “it” I:
Sunset for men!
“Forget China,
India and the
Internet: Economic
Growth Is Driven
by
Women.”
—Headline,
Economist, April 15, 2006, Leader, page 14
“Women are
the majority
market”
—Fara Warner/The Power of the Purse
“Goldman Sachs in Tokyo has
developed an index of 115
companies poised to benefit from
women’s increased purchasing
power; over the past decade the
value of shares in Goldman’s
basket has risen by 96%, against
the Tokyo stockmarket’s rise
of 13%.” —Economist, April 15
#17.1
“AS LEADERS,
WOMEN
RULE:
New Studies find that
female managers outshine their male
counterparts in almost every measure”
TITLE/ Special Report/ BusinessWeek
#17.1.1
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”
“[Women] see power
in terms of
influence,
not rank.” —Fortune
“Guys want to put everybody in
their hierarchical place. Like,
should I have more respect for
you, or are you somebody that’s
south of me?” —Paul Biondi, Mercer Consultants
[from It’s Not Business, It’s Personal, Ronna Lichtenberg]
Bob Reich’s women
“No
worries.”*
students:
*Men: “Can’t do it. _____ outranks me.”
“There is always an
easy solution to
every human
problem—neat,
plausible, and …
wrong.”
—H.L. Mencken:
Mrs Coach K
#17.1.2
For projects involving children or
health or education or community
development or sustainable
small-business growth (most
women
projects),
are by
far the most reliable and most
central and most indirectly
powerful local players even in the
most chauvinist settings.
#17.2
Who buys “it” II:
Sunrise for old folks!
!!!!!!!!!!!!!!!!!
“People turning 50
more
than half of
today have
their adult life
ahead of them.”
—Bill Novelli,
50+: Igniting a Revolution to Reinvent America
“Sixty Is
the New
Thirty”
—Cover/AARP
“EIGHTY IS
THE NEW
FIFTY”
—Headline, Newsweek, 0616.08
We are the Aussies & Kiwis & Americans &
Canadians. We are the Western Europeans &
Japanese. We are the fastest growing, the
biggest, the wealthiest, the boldest, the
most (yes) ambitious, the most experimental &
exploratory, the most different, the most
indulgent, the most difficult & demanding,
the most service & experience obsessed, the
most vigorous, (the least vigorous,) the most
health conscious, the most female, the most
profoundly important commercial market in
the history of the world—and we will be the
Center of your universe for the next twentyfive years. We have arrived!
Up,
Up,
Up,
Up
the Value-added Ladder.
Auckland/pm
taipei/vp
singapore/pm
bangkok/dpm
flanders
amsterdam/MPs
barcelona/ma
Kuala Lumpur/CM
lisbon/ma
dublin/pm
buenos aires
sao paulo
Warsaw/MPs
london/mps
milan
SEOUL/Ma
mexico d.f./m
istanbul/dpm
dubai/rfm
oman/rfm
usa
stockholm/mps
shanghai
mauritius/pm
johannesburg
bucharest/CM
EXCELLENCE.
VALUE ADDED.
UP THE LADDER.
NoT Optional.
The Value-added Ladder/ “BEDROCK”
Raw Materials*
*Farmers and Miners (“Degree”: Weightlifting)
The Value-added Ladder/ THINGS
Goods*
Raw Materials
*Engineers and Factory Workers (Degree: Engineering)
The Value-added Ladder/TRANSACTIONS
Services*
Goods
Raw Materials
*Clerks (Degree: Process Engineering)
EXCELLENCE.
VALUE-ADDED LADDER I.
SOLVE IT.
IB :
$55B*
M
*Also HP-EDS
“THE GIANT STALKING BIG OIL: How
Schlumberger Is
Rewriting the Rules of the Energy
Game.”: “IPM [Integrated Project
Management] strays from
[Schlumberger’s] traditional role
as a service provider and moves
deeper into areas once dominated
by the majors.”
Source: BusinessWeek cover story, January 2008
IBM
HP
Schlumberger
GE Energy
GE Infrastructure
UPS
MasterCard
etc
etc
etc
Huge: Customer
Satisfaction
versus
Customer
Success
The Value-added Ladder/TRANSFORMATION
Customer Success/
Gamechanging
Solutions
Services
Goods
Raw Materials
#18.1.1
EXCELLENCE.
SOLVE IT.
NO OPTION.
PSF.
“support function” /
“cost center”/
“overhead”
or …
Department Head
to …
Managing
Partner,
IS Inc.
[HR, R&D, etc.]
Cost
(at All Costs*) Minimization
Professional?
Or/to: Full Partner“Purchasing Officer” Thrust #1:
Leader in Lifetime
Value-added
Maximization?
(*Lopez: “Arguably ‘Villain #1’ in GM tragedy”/Anon VSE-Spain)
Up,
Up,
Up,
Up
the Value-added Ladder.
#18.2
EXCELLENCE.
VALUE-ADDED LADDER II.
EXPERIENCE IT.
Experience: “Rebel Lifestyle!”
“What we sell is the
ability for a 43year-old accountant
to dress in black
leather, ride through
small towns and have
people be afraid
of him.”
Harley exec, quoted in Results-Based Leadership
The Value-added Ladder/ MEMORABLE CONNECTION
Spellbinding Experiences
Customer Success/
Implemented Gamechanging Solutions
Services
Goods
Raw Materials
*
*Blending Beauty, Usability, Theatricality (Degree: MFA/
Master of Fine Arts, “D-school,” Cultural Anthropology)
“You know a
design is good
when you want
to lick it.”
—Steve Jobs
Source: Design: Intelligence Made Visible,
Stephen Bayley & Terence Conran
#18.3
EXCELLENCE.
VALUE-ADDED LADDER III.
DREAM IT.
Furniture vs. Dreams
“We do not sell ‘furniture’ at Domain.
We sell dreams. This
is accomplished by addressing the
half-formed needs in our customers’
heads. By uncovering these needs,
we, in essence, fill in the blanks. We
convert ‘needs’ into ‘dreams.’
Sales are the inevitable
result.”
— Judy George, Domain Home Fashions
The Value-added Ladder/ EMOTION
Dreams Come True*
Design-driven Spellbinding
Experiences
Customer Success/Implemented
Gamechanging Solutions
Services
Goods
Raw Materials
*Psychologists (Degree: Psychology)
#18.4
EXCELLENCE.
VALUE-ADDED LADDER III.
ALL YOU NEED IS LOVE.
Kevin Roberts:
Lovemarks!
Tattoo Brand: What %
of users would tattoo the
brand name on their body?
Top 10 “Tattoo Brands”*
Harley .… 18.9%
Disney .... 14.8
Coke …. 7.7
Google .... 6.6
Pepsi .... 6.1
Rolex …. 5.6
Nike …. 4.6
Adidas …. 3.1
Absolut …. 2.6
Nintendo …. 1.5
*BRANDsense: Build Powerful Brands through Touch,
Taste, Smell, Sight, and Sound, Martin Lindstrom
Top 10 “Tattoo Brands”*
Harley .… 18.9%
Disney .... 14.8
Coke …. 7.7
Google .... 6.6
Pepsi .... 6.1
Rolex …. 5.6
Bunge … ??
Nike …. 4.6
Adidas …. 3.1
Absolut …. 2.6
Nintendo …. 1.5
*BRANDsense: Build Powerful Brands through Touch,
Taste, Smell, Sight, and Sound, Martin Lindstrom
Up,
Up,
Up,
Up
the Value-added Ladder.
The Value-added Ladder/ ECSTASY
Lovemark*
Dreams Come True/
Best Story Wins
Spellbinding Experiences/
“Soul” Through Design
Customer Success/Implemented
Gamechanging Solutions
Services
Goods
Raw Materials
*Passion (Degree: ????)
Up,
Up,
Up,
Up
the Value-added Ladder.
#18.5
Ladder.2008: 4 of 7!
Lovemark
Dreams Come True
Spellbinding Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
#18.6
EXCELLENCE.
DOES MATTER
MATTER?
“What Isn’t
Matter Is What
Matters”
—section title, Branded Nation: The Marketing of Megachurch,
College Inc., and Museumworld, James Twitchell
VA “Teaching Moment”
“Andy pointed to
a molding,
about halfway
up the wall …”
The Boot … and
Timberland
The Tomato/
Farmer … and
Campbell’s
Ladder.2008: 4 of 7!
Lovemark
Dreams Come True
Spellbinding Experiences
Gamechanging Solutions
Services
Goods
Raw Materials
New Old
Basics
Lessons Learned 42/1966-2008
**Decentralization
**Accountability
**Wild-ass imagination
**Human development
**XFX (Cross-functional Excellence)
**Untapped Markets
**Value-added fanaticism
**Base Principles I
**Base Principles II
**Base Principles III
**Leadership
Decentralization
USA: Constitution, 50 states, immigrant nation (>50% Silicon Valley),
independent-minded (students “no respect teachers”), entrepreneurial,
Energizer Bunny (Zakaria—1960/26%, 1980/22%, 2000/27%, 2007/26%),
pragmatic (Rommel), relatively unregulated market economy
Research via wildly competitive universities
William Easterly, economic development (“trust the development experts
—all seven billion of them”)
J&J/DePuy (Decentralization as decentralization was meant to be)
More “statistically independent tries” (if “independent” holds)
Focus! (Focus pays.)
“Economies of scale” run out (much) earlier than we think
Focus: on the “lowest operating unit”: retail store-district; union and 250person distribution center, call center; parish
Spread ideas via “go see this-these demos” (infection through “best practices”
rather than central edict); innovation by prototyping anywhere and
everywhere (e.g., “the 1% rule”); innovation by “parallel universe”
(mgt ed new via autonomous exec ed “division”—main body conservativerecalcitrant; Jill Ker Conway @ Smith—new money sources for new people and
new programs)
“You own the damn place; no bullshit excuses” (i.e., Major Consequences
—up & down)
“No such thing as ‘Scalability’”
Limits to “synergy”
Power of “no” (Jim Burke Rule—e.g., no centralization following screw-up,
in 9 of 10 cases, even after major boo-boo)
“‘Decentralization’ is not a piece of paper. It’s not me. It’s either in your heart,
or not.”—Brian Joffe/BIDvest
Accountability
“30%-80% rule”—own your budget (Mark Hurd-HP)
Make a promise keep a promise (GE, Milliken)
Optimism but honesty
No: “Kill the messenger”
Transparency
Starts at the top!!!!!!!! (Bob Gates and Walter Reed-USAF)
Fragile???
Clear expectations at the time of hiring
Self-responsibility
Decency-culture of respect
Wild-ass imagination
“Dubai rule”
Hang out with freaks as a matter of course (lead customers, small-but-hot
vendors, odd backgrounds, etc, etc—more or less measured)
Wee “cool” acquisitions (hold on to founders at all costs—Disney and Pixar and
Jobs on Board; Cisco)
Measure division-level bosses on “crazy-assed experiments” (plus Wexner Rule—
no screw-ups is Black Mark); and Daniels Rule—”Reward excellent failures,
punish mediocre successes” (!!!)
Failure tolerated-encouraged (“He who makes the most mistakes wins”)
5-year Blockbuster Initiatives with major consequences (Demo-driven)
Diversity for creativity (bottom to top)
Decentralization with teeth
Accountability (“Dreamers with deadlines”)
World-class research universities
Government support for R&D (computers, Internet, biotech)
Human development
“Cathedral model” (“This is what we do”)
WPP Mission
HR (GE model); Chief Human Development Officer (post-cop world)
“You will be measured on Human Development Effectiveness” (e.g., how many
folks go on to be promoted at least two levels, or are headhunted)
Resilience—XP/eXtreme Preparation (Black Swan world)
“Character”
MBQ (Management By Quest)
Project structure—PM leadership early
Commitment to decency—premium on thoughtfulness
Squint test (diversity, top team “looks like” customer base)
Go for the “people people” (emphasize intangibles!!)
“Putting the customer second”
Goal: “greatest places to work” recognition
Servant leadership
XFX (Cross-functional Excellence)
Constant reinforcement with major rewards, punishments (Puckett, Robinson)
Mundane tactics > Edict (% lunches)
MBWA-demo-”best practices” > Edict
“The way we do things around here” (focus on operating unit)
Manage conflict with decentralization—artistry
Reward “what the hell does he do all day” sorts
Customer-centric Departments (PSF model; prove your worth, serve your
customers or else, principal engines of value added)
“Partnerships Model” (PSF and internal customers—measure satisfaction;
union boss and facility boss; vendor-customer teams; sales and client teams
“Friends in low places”
Power Nudges (e.g., facilities management)
Transparency!
Everything on the Web
Untapped Markets
Big Two!!!!!! (Strategic-level enterprise-organizing principle)
She is your customer! (So she’d better be your boss!)
Old Farts Rule! And will rule for the next quarter century! (Welcome to
Boomer-Geezer Time!)
Value-added Fanaticism
TGR > TGW (experience) (emphasis on “little touches”—“the case of the 2-cent
candy”)
Customer Success >>>> Customer Satisfaction
Schlumberger-IBM-UPS (“We are bold integrated services provision”) (HP-EDS)
PSF structure
Design driven nation (Korea!), “we are design” (Apple)
Ladder (Raw materials-Goods-Services-Solutions-Experience-Dreams come
true-Lovemark)
Base Principles I
“Try It”
Base Principles II
“Try It”
Decentralization
MBWA
Excellence
Servant leadership
Base Principles III
“Try It”
Decentralization
O.O.D.A. (tempo, “metabolic management”, speed-of-light prototyping)
MBWA/“Walk” (25 Rule, 60-call Rule, 3K5M Rule, Texas Bix Bender Rule)
Excellence (“I’ll know it when I see it”; no non-excellence—Watson
Rule; > OpX)
Women as key leadership-senior leadership source, masters of implementation
(Yunus), primary market
Decency-respect-transparency
K.I.S.S. (Pronovost Model—check list; Bossidy Model—sum of projects equals
promise, etc; “Beautiful Systems)
We are all in Sales around here!
Cool is cool (design primacy)
We thrive on ambiguity
Execution > Strategy (“Execution is strategy”) (Drucker)
Execution > “Great leaders” (“Execution is leadership”) (Drucker)
Servant leadership—”Cathedral Model”
You could do worse than In Search of Excellence (People. Customers.
Action. Entrepreneurial spirit. Values. Focus. K.I.S.S.)
Leadership
+21L = -21L
MBWA
Excellence
Servant leaders
EXCELLENCE.
BEDROCK.
LEADERSHIP.
THE 9Ps.
THE 1M.
THE 1E.
THE 9Ps.
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“People want to be part of
something larger than
themselves. They want to be
part of something they’re
really proud of, that they’ll
fight for, sacrifice for ,
trust.”
—Howard Schultz, Starbucks (IBD/09.05)
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“I am a …
Dispenser of
Enthusiasm!”
—Ben Zander
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“The role of the Director is to create a
space where the actors and
become more
than they’ve ever been
before, more than
they’ve dreamed of
being.”
actresses can
—Robert Altman, Oscar acceptance speech
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
MBWA
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“You must
be
the change you
wish to see in the
world.”
Gandhi
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
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
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
‘do’
“Leaders
people.
Period.”
—Anon.
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
Kevin Roberts’ Credo
1. Ready. Fire! Aim.
2. If it ain’t broke ... Break it!
3. Hire crazies.
4. Ask dumb questions.
5. Pursue failure.
6. Lead, follow ... or get out of the way!
7. Spread confusion.
8. Ditch your office.
9. Read odd stuff.
10.
Avoid moderation!
“Do one thing
every day
that scares
you.”
—Eleanor Roosevelt
“Ever notice that
‘what the hell’ is
always the right
decision?”
Source: unknown Hollywood script writer (courtesy The Borealis Press)
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“[other]
admirals more
frightened of
losing than
anxious to win”
On NELSON:
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
The 1m.
The greatest danger
for most of us
is not that our aim is
too high
and we miss it,
but that it is
too low
and we reach it.
Michelangelo
The 1E.
“Excellence can be obtained if you:
... care more than others think
is wise;
... risk more than others think
is safe;
... dream more than others think
is practical;
... expect more than others think
is possible.”
Source: Anon. (Posted @ tompeters.com by
K.Sriram, November 27, 2006 1:17 AM)
If Not
Excellence,
What?