Conrad Hilton …
Excellence
NOW
Tom Peters/8 November 2011
BRG/Johannesburg
(slides @ tompeters.com)
To appreciate
this presentation [and ensure
that it is not a mess], you need
Microsoft fonts:
NOTE:
“Showcard Gothic,”
“Ravie,” “Chiller”
and “Verdana”
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.”
You get ’em in the door
with “location, location,
location.” You keep
’em coming back
with the tucked in
shower curtain.*
*Profit rarely comes from transaction #1;
it is a byproduct of transaction #2, #3, #4 …
is
“Execution
strategy.”
—Fred Malek
You beat
yourself!
Sports:
“Execution is
the job of the
business
leader.”
—Larry Bossidy & Ram Charan/
Execution: The Discipline of Getting Things Done
“When assessing candidates, the
first thing I looked for was energy
and enthusiasm for execution.
Does she talk about the thrill
of getting things done, the
obstacles overcome, the role
her people played —or does she
keep wandering back to strategy
or philosophy?” —Larry Bossidy, Execution
Observed closely:
The use of
or
“I”
“We” during a
job interview.
Source: Leonard Berry & Kent Seltman, chapter 6, “Hiring for Values,”
Management Lessons From Mayo Clinic
“Execution is a
systematic
process
of rigorously
discussing hows and whats,
tenaciously following through, and
ensuring accountability.”
—Larry Bossidy & Ram Charan/ Execution:
The Discipline of Getting Things Done
(1) sum of Projects =
Goal (“Vision”)
(2) sum of Milestones =
project
(3) rapid Review +
Truth-telling =
accountability
“Realism is
the heart of
execution.”
—Larry Bossidy & Ram Charan/Execution:
The Discipline of Getting Things Done
Does/will the next
presentation you
give/review allot more
time to the
process/details of
“implementing” than to
the “analysis of
problem/opportunity”
“Costco figured out the
big, simple things and
executed with total
fanaticism.”
—Charles Munger, Berkshire Hathaway
People First!
People Second
People Third!
eople Fourth
“Business has to give people enriching,
or it's
simply not
worth
doing.”
rewarding lives …
—Richard Branson
“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)
"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"
Amen!
“What creates trust,
in the end, is the
leader’s manifest
respect for
the followers.”
— Jim O’Toole, Leading Change
“We are ladies
and gentlemen
serving ladies and
gentlemen.”
—Horst Schulze (Ritz Carlton Credo)
“Employees who
don't feel significant
rarely make
significant
contributions.”
—Mark Sanborn
"If you want staff to
give great service,
give great service to
staff."
—Ari Weinzweig, Zingerman's
If you want to
WOW your
customers then
must first WOW
those who WOW the
customers!
“My
employees
are my #1
Customer.”
Carry it around on a card:
Zabar’s
Parking
Garage*
*Retail Superstars: Inside the 25 Best Independent Stores in America, by George Whalin
List 5 (10?) (2?)
“Zabar’s garage”
equivalents
in your
organization. …
“consideration
renovation”
“The path to a
hostmanship
culture paradoxically does not
go through the guest. In fact it wouldn’t be totally wrong to say that the guest has
nothing to do with it. True hostmanship leaders focus on their employees. What
drives exceptionalism is finding the right people and getting them to love their
work and see it as a passion. ... The guest comes into the picture only when you are
ready to ask, ‘Would you prefer to stay at a hotel where the staff love their work or
where management has made customers its highest priority?’” “We went through
the hotel and made a ...
‘consideration
renovation.’
Instead of redoing bathrooms, dining
rooms, and guest rooms, we gave employees new uniforms, bought flowers and
Our focus was
totally on the staff. They were
the ones we wanted to make
happy.
fruit, and changed colors.
We wanted them to wake up every morning excited about a
new day at work.”
Source: Jan Gunnarsson and Olle Blohm, Hostmanship: The Art of Making People Feel Welcome.
“ … 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?’”
“I didn’t have a ‘mission statement’
at Burger King. I had a dream.
Very simple. It was something
‘Burger King is
250,000 people, every
one of whom gives a
damn.’ Every one. Accounting.
like,
Systems. Not just the drive through.
Everyone is ‘in the brand.’ That
is what we’re talking about,
nothing less.”— Barry Gibbons
“We are a
‘Life Success’
Company.”
Dave Liniger, founder, RE/MAX
“The organization would
ultimately win not
because it gave agents
more money, but
because it gave them
a chance for better
lives.” —Phil Harkins & Keith Hollihan,
Everybody Wins (the story of
RE/MAX)
By definition, the
manager cannot do all
the work herself.
Hence, effectively, the
manager's sole task is
to make others—one at
a time—successful.
If the manager’s sole task is to
make team members
successful— then what is
your [manager] plan to
make each individual
more successful within
the coming week?
“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
“I believe that you
can get everything
in life you want if you
will just help enough
other people get what
they want.” —Zig Ziglar
“No matter what the
situation, [the great manager’s] first
response is always to think
about the individual
concerned and how things
can be arranged to help that
individual experience
success.”
—Marcus Buckingham,
The One Thing You Need to Know
Brand =
Talent.
Our Mission
To develop and manage talent;
to apply that talent,
throughout the world,
for the benefit of clients;
to do so in partnership;
to do so with profit.
WPP
… no less than
Cathedrals
in which the full and
awesome power of the
Imagination and Spirit and
native Entrepreneurial flair
of diverse individuals is
unleashed in passionate
pursuit of … Excellence.
‘do’
“Leaders
people.
Period.”
—Anon.
Oath of Office: Managers/Servant Leaders
Our goal is to serve our customers brilliantly and profitably over
the long haul.
Serving our customers brilliantly and profitably over the long
haul is a product of brilliantly serving, over the long haul, the
people who serve the customer.
Hence, our job as leaders—the alpha and the omega and
everything in between—is abetting the sustained growth and
success and engagement and enthusiasm and commitment to
Excellence of those, one at a time, who directly or indirectly
serve the ultimate customer.
We—leaders of every stripe—are in the “Human Growth and
Development and Success and Aspiration to Excellence
business.”
“We” [leaders] only grow when “they” [each and every one of our colleagues] are
growing.
“We” [leaders] only succeed when “they” [each and every one of our colleagues]
are succeeding.
“We” [leaders] only energetically march toward Excellence when
“they” [each and every one of our colleagues] are energetically marching
toward Excellence.
Period.
“Tom, you
left out one
thing …”
“Tom, you left out one
Leaders
enjoy
leading!”
thing …
7 Steps to Sustaining Success
You take care of the people.
The people take care of the service.
The service takes care of the customer.
The customer takes care of the profit.
The profit takes care of the re-investment.
The re-investment takes care of the re-invention.
The re-invention takes care of the future.
(And at every step the only measure is EXCELLENCE.)
7 Steps to Sustaining Success
You take care of the people.
The people take care of the service.
The service takes care of the customer.
The customer takes care of the profit.
The profit takes care of the re-investment.
The re-investment takes care of the re-invention.
The re-invention takes care of the future.
(And at every step the only measure is EXCELLENCE.)
Leadership
is a sacred
trust.*
*President, classroom teacher, CEO, shop foreman
Goal/Skill #1:
The “Adaptive”
Organization
Enterprise adaptivity a function of more
energy
and spirit and
engagement of
and autonomy
granted to the
workforce.
or less only one thing:
Goal/Skill #1: The “Adaptive” Organization
Adaptive organizations will have workforces which …
*Are hired for attitude and character and proven teamwork as
much or more than for skill
*Are respected and trusted and visibly appreciated and
celebrated
*Are in on pretty much everything in an environment of
information sharing and transparency
*Are trained and re-trained ad infinitum—you can, in effect, never
spend too much time or money on training and re-training
*Treat “learning new stuff”—each and every day —as a near holy
responsibility
*Believe that every one of us and every outsider has something
worthy to teach us
*Are routinely exposed to an “insane” variety of outsiders who
offer constant stimulation and direct challenges to conventional
organizational/marketplace wisdom
*Are given the autonomy (with concomitant accountability) to
and encouragement to “try it,” almost any “it,” at the drop of a
hat—and then try it and try it again and again
Adaptive organizations
will have workforces
which are hired for
attitude and character
and proven teamwork
as much or more than
for skill.
“I can’t tell you how many
times we passed up hotshots
for guys we thought were
better people … and watched our
guys do a lot better than the big
names, not just in the classroom, but
on the field—and, naturally, after they
graduated, too. Again and again, the
blue chips faded out, and our little upand-comers clawed their way to allconference and All-America teams.”
—Bo Schembechler (and John Bacon), “Recruit for
Character,” Bo’s Lasting Lessons
Goal/Skill #1: The “Adaptive” Organization (cont.)
Adaptive organizations will have workforces which …
*Are guaranteed that “useful failures” are cheered rather than
jeered
*Are bound by a creed that shouts “good enough is never good
enough”
*Are all “dreamers with deadlines,” committed to pursuit of the
novel and disruptive—and equally committed to flawless and
timely execution
*Laugh a lot at themselves and their foibles and pratfalls
*Are, while civil to a fault, irreverent about damn near anything
other than integrity and decency
*Are responsible for each other’s mentoring and growth
*Believe that their role—each and everyone—is to serve, to serve
each other and to serve each member of our family of
organizations (vendors, customers, communities, etc)
*Are diverse to a fault—not legalistically diverse, but from every
background imaginable
*Are insistent that each and every one is treated as an utterly
indispensable member of the team—there are no bit players
*Relentlessly pursue no less than EXCELLENCE in all we do, in
tough times even more than in times of economic good health
Three
People!
“The
ONE Question”: “In the last year [3 years, current job],
three
people
name the …
… whose growth you’ve
most contributed to. Please explain where they were at the
beginning of the year, where they are today, and where they are
heading in the next 12 months. Please explain … in painstaking
detail … your development strategy in each case. Please tell me
your biggest development disappointment—looking back, could you
or would you have done anything differently? Please tell me about
your greatest development triumph—and disaster—in the last five
years. What are the ‘three big things’ you’ve learned about helping
people grow along the way?”
2/year =
legacy.
Promotion Decisions
“life and
death
decisions”
Source: Peter Drucker, The Practice of Management
“A man should never
be promoted to a
managerial position if his
vision focuses on people’s
weaknesses rather than on
their strengths.” —Peter Drucker,
The Practice of Management
Andrew Carnegie’s Tombstone Inscription …
Here lies a man
Who knew how to enlist
In his service
Better men than himself.
Source: Peter Drucker, The Practice of Management
From
sweaters to
people!
Les Wexner:
“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
“Unremarkable” except
for RESULTS: Superb
people developer
(her/his folks invariably
amazed at what
they’ve accomplished!)
53 = 53
People are not
“Standardized.”
Their evaluations
should not be
standardized. Ever.
“The key difference between checkers and
chess is that in checkers the pieces all move
the same way, whereas in chess all the pieces
Discover what
is unique about each
person and capitalize
on it.”
move differently. …
—Marcus Buckingham, The One Thing You Need to Know
Evaluating people =
#1 differentiator
Source: Jack Welch/Jeff Immelt on GE’s
strategic skill (
!!!!)
#1
The Talent Review
Process is a contact
sport at GE. it has the
intensity and the
importance of the
budget process at
most companies.
70 cents
“Development can help great
but if
I had a dollar to
spend, I’d spend 70
cents getting the
right person in the
door.”
people be even better—
—Paul Russell, Director, Leadership and Development, Google
the
most important
aspect of business
and yet 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
KEY Idea: Student/Professional
Have you read
any/some
Who: The A
Method for
Hiring????
books like:
“How to throw
$500,000 into
the sea in one
easy lesson!!”
TP:
< CAPEX
> People!
Source: Container Store/Goal: increase average sale per shopper
“C-level”?
Heroism: Training >
Patriotism
No company ever
Expended too much
thought/Effort/
$$$$ on training!*
*ESPECIALLY … small company
In the Army, 3-star
generals worry about
training. In most
businesses, it's a “ho
hum” mid-level staff
function.
Why is intensiveextensive training
obvious for the army &
navy & sports teams &
performing arts
groups--but not for
the average business?
(1) Training merits
“C-level” status!
(2) Top trainers should
be paid a king’s
ransom—and be of
the same caliber as
top marketers or
researchers.
Meanwhile in
Rochester NY …
Wegmans.
Luiza Helena,
Magazine
Luiza
“Ask ’em.”
four most
important
words in any
“The
organization are …
The four most important words in any organization
are …
“What do
you
think?”
Source: courtesy Dave Wheeler, posted at tompeters.com
“WDYT” =
Certification of me as
a person of
Importance whose
opinion is valued.
Tomorrow: How
many times will you
“ask the WDYT
question”?
[Count ’em!!]
[Practice makes better!] [This is a
STRATEGIC skill!]
Helping
Some Help With Helping …
Help works when the recipient subsequently feels
smarter—not dumber.
Regularly help too soon—and you will set up expectation of
inaction until your "help" is provided.
Help poorly conveyed spawns powerlessness
and resentment in recipient.
Helping requires a sniper's rifle or surgeon's
scalpel—not a shotgun or machete.
Helping strategies vary [significantly] from individual to
individual—leave the “cookie cutter” at home.
Effectively "helping" may be the most difficult
leadership task of all!
"Help" is only truly successful when the recipient
says, and believes: "I did it myself!"
Near truism: Nobody wants help. But we would
all liked to have received help.
Guitarist Robert Fripp: "Don't be helpful. Be available.
Helpful people are a nuisance."
“To be an effective
leader, you have to
first have a desire
and a commitment to
helping people.”
—Harry Rhoads, Co-founder and CEO,
Washington Speakers Bureau
New day.
New Game.
“Things don’t stay the same. You
have to understand that not only
your business situation changes,
but the people you’re working with
aren’t the same day to day.
Someone is sick. Someone is
having a wedding. You must gauge
the mood, the thinking level of the
team that day.” —Coach K [Krzyzewski]
“What …
Precisely …
Is your goal
for your team
for … today??
2%
/98%
“Be kind, for
everyone you
meet is fighting a
great battle.”
—Philo of Alexandria
2%
/98%
“I believe that it is more
important for a leader to be
trained in psychiatry than
cybernetics. The head of a big
company recently said to me, ‘I
am no longer a Chairman.
I have had to become a
psychiatric nurse.’ Today’s
executive is under pressure
unknown to the last
generation.” —David Ogilvy
The Memories
That Matter.
The Memories That Matter
The people you developed who went on to
stellar accomplishments inside or outside
the company.
The (no more than) two or three people you developed who went on to
create stellar institutions of their own.
The longshots (people with “a certain something”) you bet on who
surprised themselves—and your peers.
The people of all stripes who 2/5/10/20 years
later say “You made a difference in my life,”
“Your belief in me changed everything.”
The sort of/character of people you hired in general. (And the bad
apples you chucked out despite some stellar traits.)
A handful of projects (a half dozen at most) you doggedly pursued that
still make you smile and which fundamentally changed the way
things are done inside or outside the company/industry.
The supercharged camaraderie of a handful of Great Teams aiming to
“change the world.”
Joe J. Jones
1942 – 2010
Net Worth
$21,543,672.48
Not.
People First!
People Second
People Third!
eople Fourth
Excellence
NOW
Tom Peters/8 November 2011
BRG/Johannesburg
(slides @ tompeters.com)
Service/
Excellence
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
Hard is Soft.
Soft is Hard.
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
EXCELLENCE is not
an "aspiration.”
EXCELLENCE is …
THE NEXT FIVE
MINUTES.
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.
EXCELLENCE
is … THE
NEXT FIVE
MINUTES.
Or not.
Four [really]
First things
Before First
Things …
If the regimental commander lost most of his
2nd lieutenants and 1st lieutenants and captains
If he
lost his sergeants it
would be a
catastrophe. The Army and the
and majors, it would be a tragedy.
Navy are fully aware that success on the
battlefield is dependent to an extraordinary
degree on its Sergeants and Chief Petty
Officers. Does industry have the same
awareness?
“In great armies, the
job of generals is to
back up their
sergeants.”
—COL Tom Wilhelm, from Robert Kaplan,
“The Man Who Would Be Khan,” The Atlantic
The
sergeants
run the
army. Period.
#1
cause of
employee
Dis-satisfaction?
Employee retention & satisfaction:
Overwhelmingly
based on the
first-line
manager!
Source: Marcus Buckingham & Curt Coffman, First, Break All
the Rules: What the World’s Greatest Managers Do Differently
“People leave
managers not
companies.”
—Dave Wheeler
I am sure you “spend time”
on this. My question: Is it an
OBSESSION
…
…worthy of the impact it has
on enterprise performance?
Do you absolutely
understand and act
upon the fact that the
first-line boss is the …
KEY LEADERSHIP
ROLE … in the
organization?
E.g.: Do you have the ...
ABSOLUTE BEST
TRAINING &
DEVELOPMENT
PROGRAMS
IN THE INDUSTRY ...
(or some subset thereof)
for first-line supervisors?
STRIKING
A NERVE …
18-month report:
XFX = #1*
*Cross-Functional eXcellence
explicitly &
visibly &
relentlessly
manage to XFX
standard!
Lunch!
Never
waste a
lunch!
“Personal relationships
are the fertile soil from
which all advancement,
all success, all
achievement in real
life grow.” —Ben Stein
“Allied commands depend on
mutual confidence
and this confidence is
gained, above all
development
of friendships.”
through the
—General D.D. Eisenhower, Armchair General*
*“Perhaps his most outstanding ability [at West Point]
he made friends and earned
the trust of fellow cadets who came from
widely varied backgrounds; it was a quality that would pay
was the ease with which
great dividends during his future coalition command.”
% XF
lunches*
*
Measure!
Monthly! Part of
evaluation! [The PAs Club.]
XFX: Social
accelerators …
XFX/Typical Social Accelerators
1. EVERYONE’s [more or less] JOB #1: Make friends in other
functions! (Purposefully. Consistently. Measurably.)
2. “Do lunch” with people in other functions!! Frequently!!
(Minimum 10% to 25% for everyone? Measured.)
3. Ask peers in other functions for references so you can
become conversant in their world. (It’s one helluva sign of ...
GIVE-A-DAMN-ism.)
4. Religiously invite counterparts in other functions to your
team meetings. Ask them to present “cool stuff” from “their
world” to your group. (Useful. Mark of respect.)
5. PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX”
TO ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses:
ONCE A DAY … make a short call or visit or send an email of
“Thanks” for some sort of XFX gesture by your folks and some
other function’s folks.)
6. Present counterparts in other functions awards for service
to your group. Tiny awards at least weekly; and an “Annual AllStar Supporters [from other groups] Banquet” modeled after
superstar salesperson banquets.
Present counterparts in other
functions recognition/awards for
service to your group: Tiny
awards at least weekly. An
“Annual All-Star Supporters
[from other groups] Banquet”
modeled after [and equivalent
to!] superstar salesperson
banquets.
Everyone,
starting with the
receptionist, should have a
significant XFX rating
component in their
evaluation. (The “XFX
Performance” should be
among the Top 3 items in all
managers’ evaluations.)
Formal evaluations.
ALL HAIL …
THOSE
WHO
HELP!
GIVE THE “OTHER
GUYS” THE CREDIT
FOR EVERY-DAMNTHING AS A MATTER
OF COURSE—NEVER
EVER FORGET THIS.
“You’re
spending too
much time
with your
customers!”
[bill-paying]
C(I)>C(E)
Loser:
“He’s such a
suck-up!”
Winner:
“He’s such a
suck-down.”
“Success doesn’t depend on the number of
people you know; it depends on the number
high places!”
of people you know in
or
“Success doesn’t depend on the number of
people you know; it depends on the number
of people you know in
‘low’
places!”
“Suck down
for
success!”
If you can make
someone junior to
you look good to
their boss—you
will have made a
supporter for life!
Case!
"When I was in medical school, I
spent hundreds of hours looking
into a microscope—a skill I never
needed to know or ever use. Yet
I didn't have a single class that
taught me communication or
teamwork skills—something I
need every day I walk into the
hospital.” —Peter Pronovost, Safe Patients, Smart Hospitals
“Teamwork
isn’t
optional.”
—Fast Company
on the Mayo Clinic, from Leonard Berry & Kent Seltman, , “Practicing Team Medicine,”
Chapter 3 from Management Lessons From Mayo Clinic
William Mayo, 1910, on the Clinic’s
Two Core Values:
Patient-centered care
Team medicine
(“medicine as a cooperative science”)
Source: Leonard Berry & Kent Seltman, “Orchestrating the Clues of Quality,” Chapter 7 from
Management Lessons From Mayo Clinic
“Competency is
irrelevant if we don’t
share common
values.”
—Mayo Clinic exec, from Leonard Berry & Kent Seltman,
“Orchestrating the Clues of Quality,” Chapter 7 from Management Lessons From Mayo Clinic
hundreds of
times better here
“I am
[than
because of
the support system. It’s like
you were working in an
organism; you are not a
single cell when you are out
there practicing.’”
in my prior hospital assignment]
—quote from Dr. Nina Schwenk, in
Chapter 3, “Practicing Team Medicine,” from Leonard Berry & Kent Seltman,
from Management Lessons From Mayo Clinic
THE WHOLE POINT HERE IS THAT
#1
“XFX” IS
ALMOST CERTAINLY THE
OPPORTUNITY FOR
STRATEGIC DIFFERENTIATION. WHILE MANY WOULD
LIKELY AGREE, IN OUR MOMENT-TO-MOMENT AFFAIRS,
XFX PER SE IS NOT SO OFTEN VISIBLY & PERPETUALLY
AT THE
TOP
EVERY
OF
AGENDA. I ARGUE
HERE FOR NO LESS THAN …
VISIBLE.
CONSTANT.
OBSESSION.
one damn
Act of XFX
Enhancement
every day!
Promote into
functional leadership
positions based
primarily on …
temperament.
“The doctor
interrupts
after …*
*Source: Jerome Groopman, How Doctors Think
18 …
seconds!
[An obsession with] Listening is ... the ultimate mark
of
Listening
Listening
Listening
Listening
Listening
Listening
Listening
is
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
organizational effectiveness.)
[cont.]
Respect
.
“I wasn’t bowled over by [David Boies]
intelligence … What impressed me was
that when he asked a question, he waited
He not only
listened … he made me feel
like I was the only person
in the room.”
for an answer.
—Lawyer _____, on his first,
inadvertent meeting with renown attorney David Boies, from Marshall
Goldsmith, “The One Skill That Separates,” Fast Company
“Aggressive
listening”
“It’s amazing how this
seemingly small thing—
simply paying fierce
attention to another, really
asking, really listening,
even during a brief
conversation—can evoke
such a wholehearted
response.”
Fierce Conversations:
—Susan Scott,
Achieving Success at Work and in Life, One Conversation at a Time
Best Listeners Win …
“if you don’t
listen, you don’t
sell anything.”
—Carolyn Marland
**8 of 10 sales
presentations fail
**50% failed sales
presentations … talking
“at” before listening!
—Susan Scott, “Let Silence Do the Heavy Listening,” chapter title,
Fierce Conversations: Achieving Success at Work and in Life,
One Conversation at a Time
Listen = “Profession”
= Study = practice =
evaluation =
Enterprise value
“Fierce conversations
often do take time.
The problem is,
anything else takes
longer.”
—Susan Scott, Fierce Conversations:
Achieving Success at Work and in Life, One Conversation at a Time
Bitch all you
want, but
meetings
are what you
[boss] do!
Meetings = #1
leadership
opportunity
#1 thing bosses
do. Therefore, 100% of
Meetings are
those meetings:
EXCELLENCE.
ENTHUSIASM.
ENGAGEMENT.
LEARNING. TEMPO.
Every meeting that
does not stir the imagination
and curiosity of attendees and
increase bonding and cooperation and engagement
and sense of worth and
motivate rapid action and
enhance enthusiasm is a
permanently lost opportunity.
Meeting:
FYI: This is … not
… a rant about
“conducting
better meetings.”
Meeting = Theater
Prepare for a
meeting/every meeting
as if your professional
life and legacy
depended on it.
It does.
Meetings.
Phone calls.
Emails.
Conversations.
MBWA
5KKM/5M
Source: Mark McCormack
Even when
times are tight
… don’t short
change travel!
MBWA
Managing By Wandering Around/HP
MBWA 8
MBWA 12
MBWA 8:
Change the World With EIGHT Words
What do you think?*
How can I help?**
*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”
**Boss as CHRO/Chief Hurdle Removal Officer **********************************
MBWA 12:
Change the World
With TWELVE Words
What do you think?*
How can I help?**
What have you learned?***
*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”
**Boss as CHRO/Chief Hurdle Removal Officer **********************************
***What [new thing] have you learned [in the last 24 hours]? ********************* *
You = Your
calendar
You = Your
calendar*
*The calendar
never
lies.
Your calendar
knows Precisely
what you
really care about.
Do you????
“Dennis, you need a …
‘To-don’t ’
List !”
Don’t >
Do*
* “Don’ting” must be systematic >
WILLPOWER
one
“If there is any
‘secret’
to effectiveness, it is
concentration. Effective
executives do first things first
and they do
one thing at a
time.”
…
—Peter Drucker
?????
50%.
Un-scheduled.*
*Courtesy Dov Frohman
“It’s always
showtime.”
—
“It’s always
showtime.”
—David D’Alessandro, Career Warfare
“You must
be
the change you
wish to see in the
world.”
Gandhi
“I am a
dispenser of
enthusiasm.”
—Ben Zander
“Nothing is so
contagious as
enthusiasm.”
—Samuel Taylor Coleridge
“The leader must have
infectious optimism. …
The final test of a leader
is the feeling you have
when you leave his
presence after a
conference. Have you a
feeling of uplift and
confidence?”
—Field Marshall Bernard Montgomery
Be explicit!
Hire it!
Promote it!
“Make it fun to work at your
agency. … Encourage
Get rid
of sad dogs
who spread
doom.”
exuberance.
—David Ogilvy
“Script”
your first 5-10
“plays.” (I.e., carefully
Monday/Tomorrow:
launch the day/week in a
purposeful fashion.)
Me first!
“Being aware of
yourself and how you
affect everyone around
you is what
distinguishes a superior
leader.” —Edie Seashore (Strategy +
Business #45)
“How can a high-level leader like _____ be so out
of touch with the truth about himself? It’s more
common than you would imagine. In fact, the
higher up the ladder a leader climbs,
the less accurate his self-assessment is
likely to be. The problem is an acute lack of
feedback [especially on people issues].”
—Daniel Goleman (et al.), The New Leaders
"Everyone thinks
of changing the
world, but no one
thinks of changing
himself"
- Leo Tolstoy
The “Have
you …” 50
“Mapping your
competitive
position”
or …
1. Have you in the
last 10 days …
visited a customer?
2. Have you called a
customer …
TODAY ?
1. Have you … in the last 10 days … visited a
customer?
2. Have you called a customer … TODAY?
3. Have you in the last 60-90 days … had a seminar in which several folks from the customer’s
operation (different levels, different functions, different divisions) interacted, via facilitator, with
various of your folks?
4. Have you thanked a front-line employee for a
small act of helpfulness … in the last three
days?
5. Have you thanked a front-line employee for a small act of helpfulness …
last three hours?
in the
6. Have you thanked a front-line employee for carrying around a great attitude … today?
7. Have you in the last week recognized—publicly—one of your folks for a small act of crossfunctional co-operation?
8. Have you in the last week recognized—publicly—one of “their” folks (another function) for a
small act of cross-functional co-operation?
9. Have you invited in the last month a leader of another function to your weekly team priorities
meeting?
10. Have you personally in the last week-month called-visited an internal or external customer to
sort out, inquire, or apologize for some little or big thing that went awry? (No reason for doing
so? If true—in your mind—then you’re more out of touch than I dared imagine.)
The Recession 44:
Forty-four “Secrets”
and “clever Strategies”
For dealing
Progressively with the
Great Recession of 2007++
44 “Secrets” and “Clever Strategies” For
Dealing with the Recession of 2007++
You come in earlier.
You leave later.
You work harder.
You may well work for less; and, if so, you
adapt to the untoward circumstances with a
smile—even if it kills you inside.
You volunteer to do more.
You dig deep and always bring a good attitude
to work.
You fake it if your good attitude flags.
You literally practice your "game face" in the
mirror in the morning, and in the loo
mid-morning.
You give new meaning to the idea and intensive
practice of “visible management.”
44 “Secrets” and “Clever Strategies” For
Dealing with the Recession of 2008-XXXX
You take better than usual care of yourself and
encourage others to do the same—physical
well-being determines mental well-being and
response to stress.
You shrug off shit that flows downhill in your
direction—buy a shovel or a “pre-worn”
raincoat on eBay.
You try to forget about “the good old days”—
nostalgia is self-destructive.
You buck yourself up with the thought that
“this too shall pass”—but then remind yourself
that it might not pass any time soon, and so
you re-dedicate yourself to making the
absolute best of what you have now.
44 “Secrets” and “Clever Strategies” For
Dealing with the Recession of 2008-XXXX
You work the phones and then work the
phones some more—and stay in touch with
positively everyone.
You frequently invent breaks from routine,
including “weird” ones—“changeups” prevent
wallowing and bring a fresh perspective.
You eschew all forms of personal excess.
You simplify.
You sweat the details as never before.
You sweat the details as never before.
You sweat the details as never before.
You raise to the sky and maintain at all
costs the Standards of Excellence by which
you unfailingly evaluate your own performance.
You are maniacal when it comes to responding
to even the slightest screw-up.
44 “Secrets” and “Clever Strategies” For
Dealing with the Recession of 2008-XXXX
You find ways to be around young people and
to keep young people around—they are less
likely to be members of the “sky is falling”
school.
You learn new tricks of your trade.
You remind yourself that this is not just
something to be “gotten through”—it is the
Final Exam of character.
You network like a demon.
You network inside the company—get to know
more of the folks who “do the real work.”
You network outside the company—get to
know more of the folks who “do the real
work” in vendor-customer outfits.
44 “Secrets” and “Clever Strategies” For
Dealing with the Recession of 2008-XXXX
You thank others by the truckload if good
things happen—and take the heat yourself if
bad things happen.
You behave kindly, but you don't sugarcoat or
hide the truth--humans are startlingly
resilient and rumors are the real killers.
You treat small successes as if they were
Super Bowl victories—and celebrate and
commend accordingly.
You shrug off the losses (ignoring what's going
on in your tummy), and get back on the
horse and immediately try again.
You avoid negative people to the extent you
can—pollution kills.
You eventually read the gloom-sprayers the
riot act.
44 “Secrets” and “Clever Strategies” For
Dealing with the Recession of 2008-XXXX
You give new meaning to the word "thoughtful.“
You don’t put limits on the flowers budget—
“bright and colorful” works marvels.
You redouble, re-triple your efforts to "walk in
your customer's shoes." (Especially if the
shoes smell.)
You mind your manners—and accept others’
lack of manners in the face of their strains.
You are kind to all mankind.
You keep your shoes shined.
You leave the blame game at the office door.
You call out the congenital politicians in no
uncertain terms.
You become a paragon of personal accountability.
And then you pray.
“ALWAYS Remember: You
will be measured by what
you accomplish during
tough times. (And
remembered by how
you accomplished it.)
K=R=P
“Courtesies of a small and
trivial character are the
ones which strike
deepest in the grateful
and appreciating heart.”
—Henry Clay,
American Statesman (1777-1852)
"Let's not forget
that small
emotions are the
great captains of
our lives."
–—Van Gogh
“Kindness
Is Free.”
139,380 former
patients from 225 hospitals:
Press Ganey Assoc:
none
of THE top 15 factors
determining Patient Satisfaction
referred to patient’s health outcome.
Instead: directly related to Staff
Interaction; directly correlated with
Employee Satisfaction
Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel
“There is a misconception that supportive interactions require
more staff or more time and are therefore more costly.
Although labor costs are a substantial part of any hospital
budget, the interactions themselves add nothing to the
Kindness is
free.
budget.
Listening to patients or answering
their questions costs nothing. It can be argued that negative
interactions—alienating patients, being non-responsive to
their needs or limiting their sense of control—can be very
costly. … Angry, frustrated or frightened patients may be
combative, withdrawn and less cooperative—requiring far
more time than it would have taken to interact with them
initially in a positive way.”
Source: Putting Patients First, Susan Frampton,
Laura Gilpin, Patrick Charmel
(Griffin Hospital/Derby CT; Planetree Alliance)
K=R=P
Kindness =
Repeat Business =
Profit.
K = R = P/Kindness = Repeat business = Profit
Kindness:
Kind.
Thoughtful.
Decent.
Caring.
Attentive.
Engaged.
Listens well/obsessively.
Appreciative.
Open.
Visible.
Honest.
Responsive.
On time all the time.
Apologizes with dispatch for screw-ups.
“Over”-reacts to screw-ups of any magnitude.
“Professional” in all dealings.
Optimistic.
Understands that kindness to staff breeds kindness to others/outsiders.
Applies throughout the “supply chain.”
Applies to 100% of customer’s staff.
Explicit part of values statement.
Basis for evaluation of 100% of our staff.
Kindness … WORKS!
Kindness … PAYS!
“We look for ...
listening, caring,
smiling, saying
‘Thank you,’ being
warm.”
— Colleen Barrett, former President, Southwest Airlines
Acknowledgement/
Appreciation/
“Thank you!”
“The deepest
human need is
the need to be
appreciated.”
William James
"Appreciative words are
the most powerful force
for good on earth.”
—George W. Crane, physician, columnist
“The two most powerful
things in existence:
a kind word and a
thoughtful gesture.”
—Ken Langone, co-founder, Home Depot
A good friend scored a
big win yesterday—
her "target" was feeling
un-acknowledged; by
“merely” “showing up,”
she, in effect,
acknowledged that
person.
“Acknowledge” …
perhaps the most
powerful word (and
idea) in the English
language—and
manager’s tool kit!
Tomorrow: How many
times will you mange to
blurt out, “Thank you”?
[Count ’em!]
[Practice makes better!] [This is a STRATEGIC skill!]
Responsiveness/
Apology/
“I’m sorry!”
“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.
With a new and forthcoming policy on
apologies … Toro, the lawn mower folks,
reduced the average cost of settling a
$115,000 in 1991 to
$35,000 in 2008 … and the
claim from
company hasn’t been
to trial in the last
15 years!
Relationships
(of all varieties):
THERE
ONCE WAS A TIME WHEN A
THREE-MINUTE
PHONE CALL WOULD
HAVE AVOIDED SETTING OFF THE
DOWNWARD SPIRAL THAT RESULTED
IN A COMPLETE RUPTURE.*
*divorce, loss of a BILLION $$$ aircraft sale, etc., etc.
MAKE THE
DAMN CALL.
The completed “three-minute
call” often-usually-invariably
leads to a strengthening
of the relationship. It not only
acts as atonement but also
paves the path for a “better
than ever” trajectory. And
having taken the initiative per
se is worth its weight in …
THE PROBLEM IS
RARELY/NEVER THE
PROBLEM. THE
RESPONSE TO THE
PROBLEM INVARIABLY
ENDS UP BEING THE
REAL PROBLEM.*
*PERCEPTION IS ALL THERE IS!
Comeback
[big, quick response]
>>
Perfection
Acquire vs. maintain:
5X*
*Hence: Service >> Sales (!!)
“Will you guys
please come up
front. Will you
guys please move
to the rear.”
—TP
Service >
Sales
R.O.I.R.
Return On
Investment In
Relationships
R.O.I.R.
>>
R.O.I.
“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
What …
PRECISELY … is
this week’s
Relationship
Investment
Plan?
Track & Manage …
your investments in
relationships/your
relationships portfolio
as closely as you
would track &
manage budget
numbers.
R.F.A.
READY.
FIRE.
AIM.
H. Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)
“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
you only
find oil if you
drill wells.
understand that
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,
wildly successful Canadian Oil & Gas wildcatter
“What are Rutan’s management rules? He
insists he doesn’t have any. ‘I don’t like
rules,’ he says. ‘Things are so easy to change
if you don’t write them down.’ Rutan feels
good management works in much the same
Instead
of trying to figure out the best
way to do something and
sticking to it, just try out an
approach and keep fixing it.”
way good aircraft design does:
—Eric Abrahamson & David Freedman, Chapter 8, “Messy Leadership,”
from A Perfect Mess: The Hidden Benefits of Disorder
“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
Culture of Prototyping
“Effective prototyping may
the most
valuable core
competence an
be
innovative organization can
hope to have.” —Michael Schrage
/45
In Search of Excellence /1982:
The Bedrock “Eight Basics”
1.
2.
3.
4.
5.
6.
7.
8.
A Bias for Action
Close to the Customer
Autonomy and Entrepreneurship
Productivity Through People
Hands On, Value-Driven
Stick to the Knitting
Simple Form, Lean Staff
Simultaneous Loose-Tight
Properties
Lesson45:
WTTMSW
Whoever
Tries
The
Most
Stuff
Wins
Whoever
Tries
The
Most
Stuff
Wins.
Period.
Better yet:
WTTMSASTMSUTFW
Whoever
Tries
The
Most
Stuff
And
Screws
The
Most
Stuff
Up
The
Fastest
Wins
“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)
“Fail.
Forward.
Fast.”
“Fail.
Forward.
Fast.”
High Tech CEO, Pennsylvania
Read It
Richard Farson & Ralph Keyes:
Whoever Makes
the Most Mistakes
Wins: The Paradox
of Innovation
“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
“It is not enough to
‘tolerate’ failure—
you must
‘celebrate’
failure.”
—Richard Farson (Whoever Makes the
Most Mistakes Wins)
“No man ever
became great
except through
many and great
mistakes.”
—William Gladstone
(from Timeless Wisdom, compiled by Gary Fenchuk)
1/5000
“You miss
100% of
the shots you
never take.”
—Wayne Gretzky
“We Are
What
We Eat.”
“You will become
like the five people
you associate with
the most.”
We
are What We
Eat/We Are the
company
we keep
The “Hang Out Axiom I”:
“You will become
like the five people
you associate with
the most—this can
be either a blessing
or a curse.”
—Billy Cox
“Spend
time with ‘Interesting,’ and
thou shall become more
interesting. Spend time
with ‘dull’ and thou shall
become more dull.”
The “Hang Out Axiom II”:
We Are the
company
we keep!
Manage it!
Measure/Manage: Portfolio “Strangeness”/ “Quality”
1. Customers
2. Vendors
3. Out-sourcing Partners
4. Acquisitions
5. Purposeful “Theft”
6. Diversity/“d”iversity
7. Diversity/Crowd-sourcing
8. Diversity/Weird
9. Diversity/Curiosity
10. Benchmarks
11. Calendar
12. MBWA
13. Lunch/General
14. Lunch/Other functions
15. Location/Internal
16. Location/HQ
17. Top team
18. Board
The “We are what we eat”/
“We are who we associate with”
Axiom: At its core, every (!!!)
relationship-partnership decision
(employee, vendor, customer, etc,
etc) is a strategic decision about:
“Innovate,
‘Yes’ or ‘No’ ”
“Futuredefining customers may
account for only 2% to
3% of your total, but
CUSTOMERS:
they represent a
crucial window on the
future.”
—Adrian Slywotzky, Mercer Consultants
“[CEO A.G.] Lafley has shifted P&G’s focus on
inventing all its own products to developing …
others’
inventions at
least half the
time.
One successful
example, Mr. Clean Magic Eraser, based on a product
found in an Osaka market.” —Fortune
“Don’t
benchmark,
futuremark!”
Impetus: “The future is already here; it’s just
not evenly distributed” —William Gibson
“Don’t
benchmark,
‘Other’ mark!”
“To grow, companies need to
break out of a vicious cycle of
competitive benchmarking and
imitation.”
—W. Chan Kim & Rene Mauborgne, “”Think for Yourself —Stop Copying a
Rival,” Financial Times/08.11.03
“Companies have defined so
much ‘best practice’ that
they are now more or less
identical.”
—Jesper Kunde, Unique Now ... or Never
“The short road
to ruin is to
emulate the
methods of your
adversary.”
— Winston Churchill
Whoops …
“The
Bottleneck …
“The Bottleneck … Is at
the Top of the Bottle”
“Where are you likely to find people
with the least diversity of experience,
the largest investment in the past,
and the greatest reverence for
industry dogma …
At the top!”
— Gary Hamel/Harvard Business Review
Diversity/
Curiosity/
Creativity
“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 … per se
… is a key … maybe
the key … to
effective and
innovative
decision making.
“d”iversity
“Where do good new ideas
come from? That’s simple!
From differences. Creativity
comes from unlikely
juxtapositions. The best
way to maximize differences
is to mix ages, cultures and
disciplines.” —Nicholas Negroponte, MIT Media Lab
“Who’s the most
interesting person
you’ve met in the
last 90 days? How
do I get in touch
with them?”
—Fred Smith
Vanity Fair:
“What is your most marked
characteristic?”
Mike Bloomberg:
“Curiosity.”
“Do one thing
every day that
scares you.”
—Eleanor Roosevelt
“Normal” =
“o for 800”
CQ/Curiosity
Quotient*
*Hire for it in more or less 100% slots/Promote for it
Co-creation
Rob McEwen/CEO/
Goldcorp Inc./
Red Lake
gold
Wikinomics: How Mass
Collaboration Changes Everything,
Don Tapscott & Anthony Williams
Source:
“The Billion-man
Research Team:
Companies offering
work to online
communities are
reaping the benefits of
‘crowdsourcing.’”
—Headline, FT
Forgetfulness
Forget>“Learn”
“The problem is never
how to get new,
innovative thoughts
into your mind, but
how to get the old
ones out.”
—Dee Hock
Forgetting >>
Learning
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’ ”
TGRs/
LBTs
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?”
“Let me
help you
down the
jetway.”
Carl’s
StreetSweeper
BEGINS
(and ENDS)
It
in the …
parking
lot*
*Disney
<TGW
and …
>TGR
[Things Gone WRONG-Things Gone RIGHT]
TGRs.
Manage ’em.
Measure ’em.
“Experiences are
as distinct
from services
as services are
from goods.”
—Joe Pine & Jim Gilmore, The Experience Economy:
Work Is Theatre & Every Business a Stage
“At our core, we’re a
coffee company, but the
opportunity we have to
extend the brand is
it’s
entertainment.”
beyond coffee;
—Howard Schultz (“The Starbucks Aesthetic,” NYT)
C
*Chief e
O*
Xperience Officer
Little =
“If God spoke to me by
saying, ‘Mark, you’re down
to your last three words:
What would you want to say
to your fellow humans that
would make the most
positive impact?’ It would
be a close call between
Love Thy Neighbor and …
“If God spoke to me by saying, ‘Mark, you’re down to your last three words: What
would you want to say to your fellow humans that would make the most positive
impact?’ It would be a close call between Love Thy Neighbor and …
Wash
Your
Hands
—Mark Pettus, M.D., The Savvy Patient
Socks =
10,000
>100 feet =
100 miles
120-oz container to ketchup-bottle size
laundry-detergent concentrate (100%
conversion): 1/4th packaging; 1/4th
weight; 1/4th cost to ship; 1/4th
space on ships, trucks, shelves. 3
years: 95M #s plastic resin saved,
125M #s cardboard conserved,
400M less gallons of water
shipped, 500K gallons less diesel
fuel, 11M less #s CO2 released)
Source: Force of Nature: The Unlikely Story of Walmart’s
Green Revolution, Edward Humes
Big carts =
Source: Walmart
(1) Half-day/Generate
25 ideas
(2) One week/5 experiments
(3) One month/Select best 2
(4) 60-90 days/Roll out
Design!
Design Rules!
APPLE market cap
> Exxon Mobil*
*August 2011
“Design is everything.
Everything is design.”
“We are all designers.”
Inspiration: The Power of Design: A Force for
Transforming Everything, Richard Farson
“Only one company
can be the cheapest.
All others must use
design.”
—Rodney Fitch, Fitch & Co.
Source: Insights, definitions of design, the Design Council [UK]
“Design is
treated like
a religion at
BMW.”* —Fortune
*APPLE market cap > Exxon Mobil (August 2011)
“We don’t have a good language to talk
about this kind of thing. In most people’s
vocabularies, design means veneer. …
But to me, nothing could be further from
Design is
the fundamental
soul of a man-made
creation.”
the meaning of design.
—Steve Jobs
“With its carefully conceived mix of colors and textures,
Starbucks
aromas and music,
is more
indicative of our era than the iMac. It is to the Age of
Aesthetics what McDonald’s was to the Age of
Convenience or Ford was to the Age of Mass
Production—the touchstone success story, the exemplar
‘Every
Starbucks store is carefully
designed to enhance the quality
of everything the customers see,
touch, hear, smell or taste,’ writes
of … the aesthetic imperative. …
CEO Howard Schultz.”
—Virginia Postrel, The Substance of Style: How the Rise of Aesthetic
Value Is Remaking Commerce, Culture and Consciousness
“Packages
… are
about containing and labeling and
informing and celebrating. They
are about power and flattery and
trying to win people’s trust. They
are about beauty and
craftsmanship and comfort. They
are about color, protection,
survival.” –Thomas Hine, The Total Package
Charles Handy: “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.’”
“I assume that it is just saying that it
‘help its
customers
wherever they
are’.”
is there to …
—Charles Handy
“I make all the launch teams
tell me what the magazine’s
five words
or less. You can’t
about in
run alongside millions of
consumers and explain what
you mean. It forces some
discipline on you.”
—Ann Moore, CEO, Time Inc., on new mags
Hypothesis:
DESIGN is
the principal
difference
between love
and hate!*
*Not “like” and “dislike”
Design is …
never
neutral.
O*
C
*Chief
Design
Officer
“Businesspeople don’t
need to ‘understand
designers better.’
Businesspeople need
to be designers.”
—Roger Martin/Dean/Rotman Management School/University of Toronto
Design is …
*The reception area
*The loo
*Dialogues at the call center
*Every electronic [or paper] form
*Every business process “map”
*Every email
*Every meeting agenda/setting/etc.
*Every square meter of every facility
*Every new product proposal
*Every manual
*Every customer contact
*A consideration in every promotion decision
*The presence and ubiquity of an “Aesthetic sensibility”/
“Design mindfulness”
*An encompassing “design review” process
*Etc.
*Etc.
New Zealand
(“Better By Design”)
Korea
Vermont
Hypothesis: Men
cannot
design for women’s
!!??
needs
… this will be
the woman’s
century …
“I speak to you with a feminine
voice. It’s the voice of democracy,
of equality. I am certain, ladies
and gentlemen, that this will be
the woman’s century. 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
… this will be
the woman’s
century …
“Forget China, India
and the Internet:
Economic Growth Is
Driven by
Women.”
Source: Headline, Economist
“One thing is certain: Women’s rise to power, which is
linked to the increase in wealth per capita, is happening
in all domains and at all levels of society. Women are no
longer content to provide efficient labor or to be
consumers with rising budgets and more autonomy to
spend. … This is just the beginning. The phenomenon
will only grow as girls prove to be more successful than
For a number of
observers, we have already
entered the age of
‘womenomics,’ the economy as
thought out and practiced
by a woman.”
boys in the school system.
—Aude Zieseniss de Thuin, Women’s Forum for the Economy and Society
“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
“Since 1970, women
have held two
out of every
three new jobs
created.”
—FT/2006
“The increased number of women in the working
population compensates for the negative demographic
effects of an ageing population and lower birth rates.
The same trend is now also visible in emerging
Southeast Asia’s economic
success is due primarily to women,
who hold two-thirds of the jobs in
the export industry, the region’s
most dynamic sector.”
countries.
Source: “Women Are Drivers of Global Growth,” Aude Zieseniss de Thuin, founder
and president of the Women’s Forum for the Economy and Society (FT)
WOMEN
Are The
Market
W = 28T > 2(C + I)
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
Women as Decision Makers/Various sources
Home Furnishings … 94%
Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)
Houses … 91%
D.I.Y. (major “home projects”) … 80%
Consumer Electronics … 51% (66% home computers)
Cars … 68% (influence 90%)
All consumer purchases …
83% *
Bank Account … 89%
Household investment decisions … 67%
Small business loans/biz starts … 70%
Health Care …
80%
*In the USA women hold >50% managerial positions including >50% purchasing officer
positions; hence women also make the majority of commercial purchasing decisions.
Sales/Aftersales Process
1.
2.
3.
4.
5.
Kick-off – women
Research – women
Purchase – men
Ownership – women
Word-of-mouth – women
Source: Marti Barletta
most significant
variable in every
“The
sales situation is the
gender
of the buyer, and
more importantly, how the
salesperson communicates
to the buyer’s gender.”
—Jeffery Tobias Halter, Selling to Men, Selling to Women
The Perfect Answer
Jill and Jack buy
slacks in black…
Cases! Cases! Cases!
McDonald’s
(“mom-centered” to F as
“majority consumer”; not via kids)
Home Depot (“Do it [everything!] Herself”)
P&G (more than F as “house cleaner”)
DeBeers (“right-hand rings”/$4B)
AXA Financial
Kodak (women = “emotional centers of the household”)
Nike
(> jock endorsements; new def sports; majority consumer)
Avon
Bratz (young girls want “friends,” not a blond stereotype)
Source: Fara
Warner/The Power of the Purse
Lowe’s!
“Home Depot is still very much a guy’s
chain. But women, according to Lowe’s
research, initiate 80 percent of all
home-improvement purchase decisions—
especially the big ticket orders
like kitchen cabinets,
flooring and bathrooms. ‘We focused
on a customer nobody in home
Don’t get
me wrong, but women are far
more discriminating than men,’
improvement has focused on.
says CEO Robert Tillman, a Lowe’s lifer.”
—Forbes.com
“Women don’t ‘buy’
They
‘join’ them.”
brands.
—Faith Popcorn, EVEolution
Men: Individual perspective.
“Core unit is ‘me.’ ”
Pride in self-reliance.
Women: Group perspective.
“Core unit is ‘we.’ ” Pride in
team accomplishment.
Source: Martha Barletta, Marketing to Women
Age 3
days, baby
girls 2X eye
contact.
“People powered”:
Source: Martha Barletta, Marketing to Women
Purchasing Patterns
Harder to convince;
more loyal once convinced.
Women:
Men:
Snap decision; fickle.
Source: Martha Barletta, Marketing to Women
2.6 vs.
WOMEN
RULE!
… this will be
the woman’s
century …
“Headline 2020:
Women Hold
80 Percent of
Management and
Professional Jobs”
Source: The Extreme Future: The Top Trends That Will
Reshape the World in the Next 20 Years, James Canton
“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 interactivecollaborative leadership style
[empowerment beats top-down decision
making]; sustain fruitful collaborations;
comfortable with sharing information; see
redistribution of power as victory, not
surrender; favor multi-dimensional 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”
!!!!!!!!!!!!!!!
14 168*
to
*Leadership Positions/D&T/1992-2002/WIAR
(Women’s Initiative Annual Report)
“Power Women 100”/Forbes 10.25.10
26 female CEOs of Public Companies:
Vs. Men/Market:
+28% *
(*Post-appointment)
Vs. Industry:
+15%
“Women Beat
Men at Art of
Investing”
Source: Headline, Miami Herald, reporting on a study by Profs. Terrance Odean and
(Cause: Guys are “in and out” of
stocks more often; women choose carefully
and hold on for the long term)
Brad Barber, UC Davis
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:
*Women
*Women
*Women
*Women
*Women
decide.
save.
spend.
start businesses.
rule.
*Women
*Women
*Women
*Women
*Women
decide
save
spend
start businesses
rule
*In the developed world
*In the developing world
[Developing = Growing middle class]
*The trend is accelerating
94%
of loans to …
women*
*Microlending; “Banker to the poor”; Grameen Bank;
Muhammad Yunus; 2006 Nobel Peace Prize winner
“There are countless reasons rescuing girls is the right thing to do. It’s also
the smart thing to do. Consider the virtuous circle: An extra year of primary
school boosts girls’ eventual wages by 10-20%. An extra year of secondary
school adds 15-25%. Girls who stay in school for seven or more years marry
four years later and have two fewer children than girls who drop out. Fewer
When
girls and women earn income, they
re-invest 90% in their families.
They buy books, medicine, bed
nets. For men the figure is more
like 30-40%. ‘Investment in girls’ education may well be the
dependents per worker allows for greater economic growth. …
highest-return investment available in the developing world,’ Larry Summers
wrote when he was chief economist at the World Bank. The benefits are so
obvious, you wonder why we haven’t paid attention. Less than two cents of
every development dollar goes to girls—and that
is a victory compared to a few years ago when it was something
like one-half cent. Roughly 9 of 10 youth programs are aimed at boys. …”
—Nancy Gibbs, “The Best Investment: If you really want to fight poverty
, fuel growth and combat extremism, try girl power,” TIME (0214.2011)
“The growth and
success of womenowned businesses is
one of the most
profound changes
taking place in the
business world
today.” —
Margaret Heffernan, How She Does It
Girl
Power!
“Investment in girls’
education may well be
the highest-return
investment available
in the developing
world.”
—Larry Summers (as chief economist at the World Bank)
“Progress is
achieved
through
women.”
—Bernard Kouchner,
founder, Doctors Without Borders (and French foreign minister)
“Are men
obsolete?”
—Headline, USN&WR
“Men Are
Finished”
Source: Slate conference 0920/NYU
“agile creatures
darting between
the legs of the
multinational
monsters"
“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
40 years for 1,000
They found that
U.S. companies.
none
of
the long-term survivors managed to
outperform the market. Worse, the
longer companies had been in the
database, the worse they did.”
—Financial Times
You don’t
get better
by being
bigger. You
Dick Kovacevich:
“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
M & A success rate as measured
by adding value to the
acquirer:
15%
Source: Mark Sirower, The Synergy Trap
Spinoffs
…
systematically perform
better than IPOs … track
record, profits … “freed
from the confines of the
parent … more
entrepreneurial, more
nimble” —Jerry Knight/ Washington Post/ 08.05
#4 Japan
#3 USA
#2 China
#1 Germany
MittELstand* **
*
“agile creatures darting between
the legs of the multinational
monsters" (Bloomberg BusinessWeek, 10.10)
**E.g. Goldmann Produktion
Retail Superstars:
Inside the 25 Best
Independent Stores
in America
—by George Whalin
Jungle Jim’s International Market, Fairfield, Ohio: “An
adventure in
‘shoppertainment,’
as Jungle Jim’s
1,600
cheeses and, yes, 1,400 varieties of hot
sauce —not to mention 12,000 wines priced
from $8 to $8,000 a bottle; all this is brought to
you by 4,000 vendors. Customers come from every
call it, begins in the parking lot and goes on to
corner of the globe.”
Bronner’s Christmas Wonderland, Frankenmuth, Michigan,
98,000-square-foot “shop” features the
likes of 6,000 Christmas ornaments, 50,000
trims, and anything else you can name if it pertains to
pop 5,000:
Christmas.
Source: George Whalin, Retail Superstars
“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
Lessons [for Everyone] from Retail Superstars!
1. Courses/Workshops/Demos/Engagement
2. Instructional guides/material/books
3. Events & Events & Events …
4. Create “Community” of customers
5. Destination
6. Women-as-customer
7. Staff selection/training/retention (FANATICISM)
8. Fanaticism/Execution
9. Design/Atmospherics/Ambience
10. Tableaus/Products-in-use
11. Flow/starts & finishes (Disney-like)
12. 100% orchestrated experience/focus: “Moments of truth”
13. Constant experimentation/Pursue Little BIG Things
14. Social Media/Ongoing conversation with customers
15. Community star
16. Aim high
17. PASSION
Small Giants:
Companies That Choose to Be
Great Instead of Big
“Satisfaction”
to
“Success”
“ ‘Results’ are
measured by the
success of all those
who have purchased
your product or
service” —Jan Gunnarsson & Olle Blohm,
The Welcoming Leader
Huge: Customer
“Satisfaction with
product/Service”
versus
Customer
“Success”
M
IB
to
B
I
M
$55B*
*IBM Global Services/
“Systems integrator of choice”
Planetary Rainmaker-in-Chief!
“[CEO Sam] Palmisano’s
strategy is to expand tech’s
borders by pushing users—
and entire industries—toward
radically different business
models. The payoff for IBM would be
access to an ocean of revenue—Palmisano
estimates it at $500 billion a year —
that technology companies have never been
able to touch.” —Fortune
UPS
“WHAT CAN BROWN DO FOR YOU?”
“It’s all about solutions. We
talk with customers about
how to run better, stronger,
cheaper supply chains. We
have 1,000 engineers who
work with customers …”
—Bob Stoffel, UPS senior exec
“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
“We’ll do
just about anything
an oilfield owner
would want, from
drilling to
production.”
IPM’s Chief:
MasterCard
Advisors
I. LAN Installation Co.
II. Geek Squad.
(3%)
(30%.)
III. Acquired by Best Buy.
IV. Flagship of Best Buy
Wholesale “Solutions”
Strategy Makeover.
Wow
Zappos 10 Corporate Values
Deliver
“WOW!”
Embrace and drive change.
Create fun and a little weirdness.
Be adventurous, creative and open-minded.
Pursue growth and learning.
Build open and honest relationships with
communication.
Build a positive team and family spirit.
Do more with less.
Be passionate and determined.
Be humble.
Source: Delivering Happiness, Tony Hsieh, CEO, Zappos.com
through service.
“Insanely Great”
Steve Jobs
“Radically thrilling”
BMW
“We are crazy. We should do
something when people say
If people
say something is
‘good’, it means
someone else is
already doing it.”
it is ‘crazy.’
—Hajime Mitarai, Canon
There is more
than one way to
skin a cat!*
REQUIRES
*Every project
(if you’re smart) an
outside look by one/some Seriously Weird Cat/s
—in pursuit of whacked-out options.
14,000
20,000
14,000/eBay
20,000/Amazon
30/Craigslist
Where’s your
“Craig’s List
[WOW!]
option”??
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!