-1/+1
S&P 500
-1/+1*
*Every …
!
2 weeks
Source: Richard Foster (via Rita McGrath/HBR/12.26.13
Silicon
Valley
= #1
“The Silicon Valley of
today is built less atop
the spires of earlier
triumphs than upon
the rubble of earlier
debacles.”
—Paul Saffo
“The essence
of capitalism is
encouraging failure,
not rewarding
success.”
—Nassim Nicholas Taleb/Antifragile
“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
(APPLE cover story/June 2014)
Motueka,
New Zealand
The Magicians of Motueka & the Mittelstand Trifecta
W.A. Coppins Ltd.*
(Coppins Sea Anchors/
PSA/para sea anchors)
*Textiles, 1898; thrive on
“wicked problems”
—e.g., U.S. Navy STLVAST (Small To Large Vehicle At Sea Transfer);
W. Wiggins Ltd./Wellington
(specialty nylon, “Dyneema,” from DSM/Netherlands)
custom fabric from
MITTELSTAND*
*“agile creatures darting between
the legs of the multinational
monsters”
(Bloomberg BusinessWeek, 10.10)
“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
1,600 cheeses
1,400 varieties of hot sauce
12,000 wines priced from
$8 to $8,000 a bottle
6,000 Christmas ornaments
50,000 trims
PASSION
“INSANELY GREAT”
STEVE JOBS
“RADICALLY THRILLING”
BMW
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
“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
ORGANIZATIONS
EXIST TO SERVE.
PERIOD.
LEADERS LIVE TO
SERVE. PERIOD.
Michael Raynor and Mumtaz Ahmed: THE THREE RULES:
How Exceptional Companies Think*:
1. Better before cheaper.
2. Revenue before cost.
3. There are no other rules.
(*From a database of over 25,000 companies from hundreds of industries covering 45 years, they
uncovered 344 companies that qualified as statistically “exceptional.”)
Jeff Colvin, Fortune: “The Economy Is Scary … But Smart
Companies Can Dominate”:
They manage for value—not for EPS.
They get radically customer-centric.
THEY KEEP DEVELOPING HUMAN CAPITAL.
CORPORATE [And GOVERNMENT ]MANDATE #1 2014:
Your principal moral obligation as
a business leader is to develop the
skillset, “soft” and “hard,” of every
one of the people in your charge
(temporary as well as semipermanent) to the maximum
extent of your abilities. The good
news: This is also the
#1 mid- to long-term …
profit maximization strategy!
In Good Business, Mihaly Csikszentmihalyi argues
persuasively that business has become the center of
society. As such, an obligation to community is front &
center. Business as societal bedrock, has the
“SUM OF
HUMAN WELL-BEING.”
RESPONSIBILITY to increase the
Business is NOT "part of the community." In terms of
how adults collectively spend their waking
BUSINESS IS THE
COMMUNITY. And should act accordingly.
hours …
The (REALLY) good news: Community mindedness
is a great way [THE best way?] to have
spirited/committed/ customer-centric work
force—and, ultimately, increase [maximize?]
profitability!
1. Giant STUMBLES
2. MITTELSTAND mainstays/
Be the BEST
3. NUMBERS game/
FAILURE “encouraged”
4. EXCELLENCE/SERVICE
5. MORAL imperative/
PEOPLE DEVELOPMENT
Tom Peters’
Re-Imagine
!
EXCELLENCE
Gulf International Convention & Exhibition Center/10 June 2014
(slides at tompeters.com; also see excellencenow.com)
Part
Part
Part
Part
Part
1:
2:
3:
4:
5:
INTRODUCTION/EXCELLENCE
PEOPLE FIRST, SECOND …
INNOVATION IMPERATIVE
VALUE-ADDED STRATEGIES
LEADERSHIP/EXTREME
SOLUTIONS
Part
Part
Part
Part
Part
1:
2:
3:
4:
5:
INTRODUCTION
PEOPLE FIRST, SECOND …
INNOVATION IMPERATIVE
VALUE-ADDED STRATEGIES
LEADERSHIP/EXTREME
SOLUTIONS
1,000,000
“The root of our problem is not
that we’re in a Great Recession
or a Great Stagnation, but rather
that we are in the early
Great
Restructuring
throes of a
.
Our technologies are racing ahead,
but our skills and organizations
are lagging behind.”
Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfee
China/Foxconn:
1,000,000
robots/next 3 years
Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfee
“Automation has become so
sophisticated that on a typical
passenger flight, a human pilot holds
the controls for a grand total of …
3 minutes
. [Pilots]
have become, it’s not much of
an exaggeration to say,
computer operators.”
Source: Nicholas Carr, “The Great Forgetting,” The Atlantic, 11.13
“Meet Your
Next Surgeon:
Dr. Robot”
Source: Feature/Fortune/15 JAN 2013/on Intuitive Surgical’s
da Vinci
/multiple bypass heart-surgery robot
“Human level
capability has not
turned out to be a
special stopping point
from an engineering
perspective. ….”
Source: Illah Reza Nourbakhsh, Professor of Robotics, Carnegie Mellon, Robot Futures
Robot Wars/$100M/millisecond
“The combination of new
market rules and new
technology was turning
the stock market into,
a war
of robots.”
in effect,
—Michael Lewis
“Just like other members of
the board, the algorithm gets
to vote on whether the firm
makes an investment in a
specific company or not. The
program will be the sixth
member of DKV's board.”
EVERYTHING.
EVERYBODY.
EVERYWHERE.
IoT
IoE
IoT/The Internet of Things
IoE/The Internet of
Everything
M2M/Machine-to-Machine
Ubiquitous computing
Embedded computing
Pervasive computing
Industrial Internet
Etc.* ** ***
*“More Than 50
BILLION connected devices by 2020” —Ericsson
**Estimated 212 BILLION connected devices by 2020—IDC
***“By 2025 IoT could be applicable to $82 TRILLION of output or
approximately one half the global economy”—GE [The WAGs to end all WAGs!]
“Ford is working with the
healthcare industry on a
solution that would notify a
nearby hospital if you were
having a heart attack in your
car, which can send an
ambulance before you even
know you’re having one. …”
—Daniel Kellmereit & Daniel Obodovski, The Silent Intelligence: The Internet of Things
SENSOR PILLS: “… Proteus Digital Health is one of several
pioneers in sensor-based health technology. They make a silicon
chip the size of a grain of sand that is embedded into a safely
When the chip mixes with
stomach acids, the processor is powered by the
body’s electricity and transmits data to a patch
worn on the skin. That patch, in turn, transmits
data via Bluetooth to a mobile app, which then
transmits the data to a central database where a
health technician can verify if a patient has taken
her or his medications. This is a bigger deal than it may
digested pill that is swallowed.
seem. In 2012, it was estimated that people not taking their
prescribed medications cost $258 BILLION in emergency
room visits, hospitalization, and doctor visits. An average of
130,000 Americans die each year because they don’t follow
their prescription regimens closely enough.” (The FDA approved
placebo testing in April 2012; sensor pills are ticketed to come to
market in 2015 or 2016.)
Source: Robert Scoble and Shel Israel, Age of Context: Mobile, Sensors, Data and the Future of Privacy
Walmart SV =
1,500
[MUCH] More
to Come
G
R
I
N
enetics
obotics
nformatics
anotechnology
“The greatest
shortcoming of the
human race is our
inability to
understand the
exponential
function.”
1/721:
—Albert A. Bartlett
“If I had to
pick one failing
of CEOs, it’s
that …
—Co-founder of one of the largest investment services firms in the USA/world
“If I had to pick one failing of
they
don’t read
enough.”
CEOs, it’s that …
Part
Part
Part
Part
Part
1:
2:
3:
4:
5:
INTRODUCTION
PEOPLE FIRST, SECOND …
INNOVATION IMPERATIVE
VALUE-ADDED STRATEGIES
LEADERSHIP/EXTREME
SOLUTIONS
“Business has to
give people
enriching,
rewarding
lives …
#1/4,096
“Business has to give people enriching,
or it's
simply not
worth doing.”
rewarding lives …
—Richard Branson
"If you want staff to
give great service,
give great service to
staff."
—Ari Weinzweig, Zingerman's
“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"
“In a world where customers wake up
every morning asking, ‘What’s new, what’s
success
depends on a company’s
ability to unleash initiative,
imagination and passion of
employees at all levels —and this
different, what’s amazing?’
can only happen if all those folks are
connected heart and soul to their work
[their ‘calling’], their company and their
mission.” —John Mackey and Raj Sisoda, Conscious Capitalism:
Liberating the Heroic Spirit of Business
Wegmans (was #1 in USA)
Container Store (was #1 in USA)
Whole Foods
Costco
Publix
Darden Restaurants
Build-A-Bear Workshops
Starbucks
“The greatest satisfaction for management has come not from the
financial growth of Camellia itself, but rather from having participated
in the vast improvement in the living and working conditions of its
employees, resulting from the investment of many tens of millions of
pounds into the tea gardens’ infrastructure of roads, factories,
hospitals, employees’ housing and amenities. … Within the Camellia
Group there is a strong aesthetic dimension, an intention that it
should comprise companies and assets of the highest quality,
operating from inspiring offices and manufacturing in state of the
Above all, there is a deep
concern for the welfare of each
employee. This arises not only from
a sense of humanity, but also from
the conviction that the loyalty of a
secure and enthusiastic employee
will in the long-term prove to be an
invaluable company asset.”
art facilities. …
—Camellia: A Very Different Company [$600M/$160M/$100M]
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.
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
Training As
Investment
#1
In the Army, 3-star
generals worry about
training. In most
businesses, it's a “ho
hum” mid-level staff
function.
Training [OBVIOUSLY!]
#1:
Police. Fire.
Military. Opera.
Symphony.
Theater. Sports.
Etc.
Is your CTO/Chief Training Officer your top paid
“C-level” job (other than CEO/COO)?
If not, why not?
Are your top trainers paid as much as your top
marketers and engineers?
If not, why not?
Are your training courses so good they make you
giggle and tingle?
If not, why not?
Why is your world of business any different than
the (competitive) world of rugby, football, opera,
theater, the military?
If “people first” and hyper-intense
continuous training are laughably
obviously for them, why not you?
Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?
If not, why not?
Are your top trainers paid as much as your top marketers and engineers?
If not, why not?
Are your training courses so good they make you giggle and tingle?
If not, why not?
Randomly stop an employee in
the hall: Can she/he
meticulously describe her/his
development plan for the next
12 months?
If not, why not?
Why is your world of business any different than the (competitive) world of rugby,
football, opera, theater,
the military?
If “people/talent first” and hyper-intense continuous training are laughably
obviously for them, why not you?
Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?
If not, why not?
Are your top trainers paid as much as your top marketers and engineers?
If not, why not?
Are your training courses so good they make you giggle and tingle?
If not, why not?
Should be able to get immediate
answer upon stopping anyone at
any time and asking, “What have
you learned today?”
If not, why not?
Why is your world of business any different than the (competitive) world of rugby,
football, opera, theater,
the military?
If “people/talent first” and hyper-intense continuous training are laughably
obviously for them, why not you?
“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
Gamblin’ Man
Bet: >> 5 of 10 CEOs see training as
expense rather than investment.
Bet: >> 5 of 10 CEOs see training as
defense rather than offense.
Bet: >> 5 of 10 CEOs see training as
“necessary evil” rather than “strategic
opportunity.”
>> 8 of 10 CEOs, in 45min “tour d’horizon” of their
business, would not
mention training.
Bet:
A 15-Point
Human Capital
Asset Development
Manifesto
World Strategy Forum/
The New Rules: Reframing Capitalism
Tom Peters/Seoul/0615.12
A 15-Point Human Capital Development
Manifesto
“Corporate social responsibility” starts at
home—i.e., inside the enterprise! MAXIMIZING
1.
GDD/Gross Domestic Development of the
workforce is the primary source of mid-term and
beyond growth and profitability—and maximizes
national productivity and wealth. (Re
profitability: If you want to serve the customer
with uniform Excellence, then you must FIRST
effectively and faithfully serve those who serve
the customer—i.e. our employees, via
maximizing tools and professional development.)
2. Regardless of the transient external situation,
development of “human capital” is always the #1
priority. This is true in general, in particular in
difficult times which demand resilience—and
uniquely true in this age in which IMAGINATIVE
brainwork is de facto the only plausible survival
strategy for higher wage nations. (Generic
“brainwork,” traditional and dominant “whitecollar activities, is increasingly being performed
by exponentially enhanced artificial intelligence.)
The training budget takes precedence over
the capital budget. PERIOD. It’s easier fun to get
5.
your picture taken next to a new machine. But
how do you get a photo of a new and much
improved attitude in a key distribution center?
But the odds are 25:1 that the new attitude will
add more to the bottom line than will the
glorious state-of-the-art machine.
Human capital development should routinely
sit atop any agenda or document associated
with enterprise strategy. Most any initiative you
6.
undertake should formally address implications
for and contributions to human capital asset
development.
The very best and the
very brightest and the
most energetic and
enthusiastic and
entrepreneurial and techsavvy of our university
graduates must—must,
not should—be lured
into teaching!
Part
Part
Part
Part
Part
1:
2:
3:
4:
5:
INTRODUCTION
PEOPLE FIRST, SECOND …
INNOVATION IMPERATIVE
VALUE-ADDED STRATEGIES
LEADERSHIP/EXTREME
SOLUTIONS
/48
(No kidding)
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
“We made mistakes, of course. Most of them were omissions
We
fixed them by doing it over and over,
again and again. We do the same today. While our
we didn’t think of when we initially wrote the software.
competitors are still sucking their thumbs trying to make the
design perfect, we’re already on prototype version
#5.
By the time our rivals are ready with wires and
screws, we are on version
#10.
It gets
back to planning versus acting: We act
from day one; others plan how to plan—
for months.” —Bloomberg by Bloomberg
“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)
Scrum Management
1. Organize the work in short cycles.
2. Management doesn’t interrupt the team during
a work cycle.
3. The team reports to the client, not the manager.
4. The team decides how much time work will
take.
5. The team decides how much work it can do in
an iteration.
6. The team decides how to do the work in the
iteration.
7. The team measures its own performance.
8. Define work goals before each cycle starts.
9. Define work goals through user stories.
10. Systematically remove impediments.
Source: Steve Denning/Forbes/0429.11
Lesson47:
WTTMSW
WHOEVER
TRIES
THE
MOST
STUFF
WINS
"How often I found
where I should be
going only by setting
out for somewhere
else.”
— Buckminster Fuller
FAIL.
FORWARD.
FAST.
“FAIL.
FORWARD.
FAST.”
High Tech CEO, Pennsylvania
“REWARD
excellent failures.
PUNISH mediocre
successes.”
—Phil Daniels, Sydney exec
Ideas Economy:
CAN YOUR
BUSINESS FAIL
FAST ENOUGH TO
SUCCEED?
Source: ad for Economist Conference/0328.13/Berkeley CA (caps are Economist)
WTTMSASTMSUTFW
WTTMSASTMSUTFW
WHOEVER
TRIES
THE
MOST
STUFF
AND
SCREWS
THE
MOST
STUFF
UP
THE
FASTEST
WINS
Pursuing
Inefficiency
“The secret of fast
progress is
inefficiency, fast
and furious and
numerous failures.”
—Kevin Kelly
We Are
What
We Eat
“You will become like
the five people you
associate with the
most—this can be
either a blessing or a
curse.”
—Billy Cox
The “We are what we eat”/
“We are who we hang out with”
Axiom: At its core, every (!!!)
relationship-partnership decision
(employee, vendor, customer, etc.,
etc.) is a strategic decision about:
“Innovate,
‘Yes’ or ‘No’ ”
“It is hardly possible to
overrate the value of placing human
beings in contact with persons dissimilar to themselves, and with
modes of thought and action unlike
those with which they are familiar.
Such communication has always
been, and is peculiarly in the
present age, one of the primary
sources of progress.” —John Stuart Mill
Diversity:
WE ARE THE
COMPANY
WE KEEP!
MANAGE IT!
“Who’s the most
interesting person
you’ve met in the last
90 days? How do I
get in touch with
them?”
—Fred Smith
“DON’T
BENCHMARK,
FUTURE
MARK!”
Impetus: “The future is already here; it’s just not evenly distributed” —William Gibson
“DON’T
BENCHMARK,
‘OTHER’ MARK!”
!
CROWD POWER
“The Billion-man
Research Team:
Companies offering
work to online
communities are
reaping the benefits of
‘crowdsourcing.’”
—Headline, FT
Oops
“The Bottleneck …
“The Bottleneck is at the …
“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 …
Top of the
Bottle”
— Gary Hamel/Harvard Business Review
REVERSE
Ageism
Merited?
60 IS THE NEW 40!
70 IS THE NEW 50!
?
35 IS THE NEW 65
Innovate
or Die:
Measure It!
Innovation Index: How many of your
“Top Five Projects” score eight or
higher (out of 10) on a “Weird”/
“Profound”/“WOW”/“Game-changer”
Scale?
WOW-ification Index: Move every
project (definition) that scores six
or less two notches up on the
“WOW-ification Scale” within the next
two weeks. If your principal current
project scores six or less, bring it up
one (or two!) notches by noon on
Monday.* (*This tweet was written on a Sunday.)
Iron Innovation Equality Law:
The quality and
quantity and
imaginativeness
of innovation shall be
the same in all
functions —e.g., in HR and
purchasing as much as in marketing
or product development.
Part
Part
Part
Part
Part
1:
2:
3:
4:
5:
INTRODUCTION
PEOPLE FIRST, SECOND …
INNOVATION IMPERATIVE
VALUE-ADDED STRATEGIES
LEADERSHIP/EXTREME
SOLUTIONS
TGRs:
8/80
Customers describing their service
experience as “superior”:
8%
Companies describing
the service experience they provide as
“superior”:
80%
—Source: Bain & Company survey of 362 companies, reported in John DiJulius,
What's the Secret to Providing a World-class Customer Experience?
“May I clean
your glasses,
sir?”
BEGINS
(and ENDS)
It
in the …
PARKING
LOT*
*Disney
“It’s simple, really,
Tom. Hire for s,
and, above all,
promote for s.”
—Starbucks regional manager,
on why so many smiles at Starbucks shops
<TGW
and …
>TGR
[Things Gone
WRONG-Things Gone RIGHT]
“Experiences
are as distinct
from services
as services are
from goods.”
—Joe Pine & Jim Gilmore, The Experience Economy:
Work Is Theatre & Every Business a Stage
TGRS.
MANAGE ’EM.
MEASURE ’EM.*
*I use “manage-measure” a lot. Translation: These are
not “soft” ideas; they are exceedingly important things
that can be managed—AND measured.
C
*Chief e
O*
Xperience Officer
LBTs
LITTLE =
Big carts =
Source: Walmart
2X: “When Friedman
slightly curved
the right angle of an entrance corridor to
one property, he was ‘amazed at the
magnitude of change in pedestrians’
behavior’—the percentage who entered
one-third to
nearly two-thirds.”
increased from
—Natasha Dow Schull, Addiction By Design: Machine Gambling in Las Vegas
Machine Gambling
“Pleasing” odor #1 vs.
“pleasing” odor #2:
+45% revenue
Source: “Effects of Ambient Odors on Slot-Machine Useage in Las Vegas
Casinos,” reported in Natasha Dow Schull, Addiction By Design:
Machine Gambling in Las Vegas (66% revenue, 85% profit)
DESIGN
Design Rules!
APPLE market cap
> Exxon Mobil*
*August 2011
“Design is
treated like
a religion at
BMW.”* —Fortune
*APPLE market cap > Exxon Mobil (August 2011)
“With its carefully conceived mix of colors and
textures, aromas and music,
STARBUCKS
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 of … the
aesthetic imperative. … ‘Every Starbucks
store is carefully designed to
enhance the quality
of everything the customers see,
touch, hear, smell or taste,’ writes
CEO Howard Schultz.”
—Virginia Postrel, The Substance of Style: How the Rise of Aesthetic
Value Is Remaking Commerce, Culture and Consciousness
Hypothesis:
DESIGN is the
principal difference
love and
hate!*
between
*Not “like” and “dislike”
C
*Chief
O*
Design Officer
“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]
“Businesspeople don’t
need to ‘understand
designers better.’
Businesspeople need
to be designers.”
—Roger Martin/Dean/Rotman Management School/University of Toronto
“Design is everything.
Everything is design.”
“We are all designers.”
Inspiration: The Power of Design: A Force for
Transforming Everything, Richard Farson
Initiate a …
“Design Review”
Today
(Of Everything)
“Social
Business”
CMO/Marketing
CXO/eXperience
CNO/eNgagement
“Customer engagement is moving
from relatively isolated market
transactions to deeply connected
and sustained social
relationships. This basic change
in how we do business will make
an impact on just about
everything we do.”
Social Business By Design: Transformative Social Media Strategies
For the Connected Company —Dion Hinchcliffe & Peter Kim
Biz 2014: Get Aboard the “S-Train”
SM/Social Media.
SX/Social eXecutives.
SE/Social Employees.
SO/Social Organization.
SB/Social Business.
IBM Social Business Markers/2005-2012
*433,000 employees on IBM Connection
*26,000 individual blogs
*91,000 communities
*62,000 wikis
*50,000,000 IMs/day
*200,000 employees on Facebook
*295,000 employees/800,000 followers
of the brand
*35,000 on Twitter
Source: IBM case, in Cheryl Burgess & Mark Burgess, The Social Employee
Seven Characteristics of the Social Employee
1. Engaged
2. Expects Integration of the
Personal and Professional
3. Buys Into the Brand’s Story
4. Born Collaborator
5. Listens
6. Customer-Centric
7. Empowered Change Agent
Source: Cheryl Burgess & Mark Burgess,
The Social Employee
“Success” >>
“Satisfaction”
“You are headed
for commodity
hell if you don’t
have services.”
)
M
IBM
IB
to
“Lou, with all the money
I’ve spent with you guys
on ‘the best this or that,’
in fact this AND that,
why in the hell hasn’t
my business been
transformed?”
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
PS
UPS
U
to
“Big Brown’s New Bag: UPS Aims to
Be the Traffic Manager for
Corporate America” —Headline/BW
“UPS wants to take over the sweet
spot in the endless loop of goods,
information and capital that all the
packages [it moves] represent.” —ecompany.com
“It’s all about solutions. We work
with customers on creating and
running better, stronger, cheaper
supply chains.” —Bob Stoffel, UPS senior exec
“Rolls-Royce now
earns more from tasks
such as managing clients’
overall procurement
strategies and
maintaining aerospace
engines it sells than it
does from making them.”
—Economist
discrete
boxes* to
UTC/Otis + UTC/Carrier:
“integrated
building
systems”
*elevators, air conditioners
MasterCard
Advisors
Huge: “Customer Satisfaction
with product/Service”
to
“CUSTOMER
[ENTERPRISE]
SUCCESS”
PSF Ubiquity: The Professional Service Firm50:
Fifty Ways to Transform Your “Department” into a
Professional Service Firm Whose Trademarks are
Passion and Innovation!
Small (Entrepreneurial) BUSINESS:
Training Inc. , a 14-person
unit* in a 50-person HR
department in a $200M
business unit in a $3B
corporation—aiming for
Excellence & WOW!
*PSF/
Professional Service Firm (See my …
Professional Service Firm 50: Fifty Ways to Transform Your
“Department” Into A Professional Service Firm Whose
Trademarks Are Passion and Innovation.)
Are you/your gang the …
“Principal
Engine of
Value Added”
Part
Part
Part
Part
Part
1:
2:
3:
4:
5:
INTRODUCTION
PEOPLE FIRST, SECOND …
INNOVATION IMPERATIVE
VALUE-ADDED STRATEGIES
LEADERSHIP/EXTREME
SOLUTIONS
Conrad
Hilton …
CONRAD HILTON, at a gala celebrating
his career, was called to the podium
“What were
the most important
lessons you learned
in your long and
distinguished
career?” His answer …
and asked,
“Remember
to tuck the
shower curtain
inside the
bathtub.”
IS
“EXECUTION
STRATEGY.”
—Fred Malek
“EXECUTION IS
THE JOB OF
THE BUSINESS
LEADER.”
—Larry
Bossidy &
Ram Charan/Execution: The Discipline of Getting Things Done
“Amateurs talk
about strategy.
Professionals
talk about
logistics.”
—General Omar Bradley
MBWA
Managing
By
Wandering
Around
You = Your
calendar/
Your calendar
NEVER lies.
You = Your
calendar*
*The calendar
NEVER
lies.
MBWA 4
MBWA 8
MBWA 12
“The
4 most
important
words in any
organization are …
THE FOUR MOST IMPORTANT WORDS IN ANY ORGANIZATION
“WHAT
DO YOU
THINK?”
ARE …
Source: courtesy Dave Wheeler, posted at tompeters.com
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]? ********************* *
Acknowledgement.
“The deepest principal
in human nature is the
craving* to be
appreciated.”
—William James
*“Craving,” not “wish” or “desire” or “longing”/Dale
Carnegie, How to Win Friends and Influence People
(“The BIG Secret of Dealing With People”)
“Employees who
don't feel significant
rarely make
significant
contributions.”
—Mark Sanborn
ONE at
a Time
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
1 Mouth,
Ears
“The doctor
interrupts
after …*
*Source: Jerome Groopman, How Doctors Think
18 …
18 …
seconds!
[An obsession with] Listening is ... the ultimate mark
of
Listening
Listening
Listening
Listening
Listening
Listening
Listening
is
is
is
is
is
is
is
...
...
...
...
...
...
...
Listening
Listening
Listening
Listening
is
is
is
is
...
...
...
...
the heart and soul of Engagement.
the heart and soul of Kindness.
the heart and soul of Thoughtfulness.
the basis for true Collaboration.
the basis for true Partnership.
a Team Sport.
a Developable Individual Skill.* (*Though women
are far better at it than men.)
the basis for Community.
the bedrock of Joint Ventures that work.
the bedrock of Joint Ventures that grow.
the core of effective Cross-functional
Communication* (*Which is in turn Attribute #1 of
organization effectiveness.)
[cont.]
Respect
.
*Listening is of the
utmost … STRATEGIC
importance!
*Listening is a proper …
CORE VALUE !
*Listening is … TRAINABLE !
*Listening is a …
PROFESSION !
Suggested addition to your statement of Core
“We are Effective
Listeners—we treat
Listening EXCELLENCE as
the Centerpiece of our
Commitment to Respect
and Engagement and
Community and Growth.”
Values:
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.
THE PROBLEM IS
RARELY/NEVER THE
PROBLEM. THE
RESPONSE TO THE
PROBLEM INVARIABLY
ENDS UP BEING THE
REAL PROBLEM.*
*PERCEPTION IS ALL THERE IS!
THERE ONCE
WAS A TIME WHEN A
Relationships
(of all varieties):
THREE-MINUTE
PHONE CALL WOULD
HAVE AVOIDED SETTING OFF THE
DOWNWARD SPIRAL THAT
RESULTED IN A COMPLETE
RUPTURE.*
*divorce, loss of a BILLION $$$ aircraft sale, etc., etc.
XFX =
#1
NEVER
WASTE A
LUNCH!
% XF
lunches*
*
Measure!
Monthly! Part of
evaluation! [The PAs Club.]
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-DAMNism.)
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.)
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.)
5.
6. Present counterparts in other functions awards for service to your
group. Tiny awards at least weekly; and an “Annual All-Star
Supporters [from other groups] Banquet” modeled after superstar
salesperson banquets.
!
The ONE Secret
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?
Is there ONE “secret” to
productivity and employee
satisfaction?
YES!
The Quality of your Full
Cadre of …
1st-line Leaders.
“People leave
managers not
companies.”
—Dave Wheeler
Hiring.
“development can help great people
be even better— but
if
I had a dollar to spend, I’d
70 cents
spend
getting the right person in
the door.”
—Paul Russell, Director, Leadership and
Development, Google
the
most important
aspect of business
and yet remains woefully
misunderstood.”
“In short, hiring is
Source: Wall Street Journal, 10.29.08,
review of Who: The A Method for Hiring,
Geoff Smart and Randy Street
Evaluation.
EVALUATING
#1
PEOPLE =
DIFFERENTIATOR
Source: Jack Welch, now Jeff Immelt on
GE’s top strategic skill (
!!!!)
Promotion.
2/year =
legacy.
Promotion Decisions
“life and
death
decisions”
Source: Peter Drucker, The Practice of Management
SelfEvaluation.
“Being aware of
yourself and how you
affect everyone
around you is what
distinguishes a
superior leader.”
—Edie Seashore
“How can a high-level leader like _____ be
so out of touch with the truth about
himself? It’s more common than you
In fact, the higher
up the ladder a leader
climbs, the less accurate his
self-assessment is likely to
be. The problem is an acute lack of
would imagine.
feedback [especially on people issues].”
—Daniel Goleman (et al.), The New Leaders
"Everyone thinks
of changing the
world, but no one
thinks of changing
himself"
- Leo Tolstoy
Reductionist (!!)
Leadership
Training
Are you a
“professional”
when it comes to
HIRING people?
Are you a
“professional”
when it comes to
EVALUATING
people?
14,000
20,000
14,000/eBay
20,000/Amazon
30/Craigslist
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!
“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
HOT Times
HOT Language
“Insanely great” —Steve Jobs
“Radically thrilling” —BMW
“Astonish me!” —Sergei Diaghilev
“Build something great!” —Hiroshi Yamauchi/CEO Nintendo, to a game designer
“Make it immortal!” —David Ogilvy, to an ad copywriter
Raise your sights!
Blaze new trails!
Compete with the immortals!
—David Ogilvy, on Ogilvy & Mather’s corporate culture
Wanted by Ogilvy & Mather International:
Trumpeter Swans —David Ogilvy
“Every project starts with the same question: ‘How can we do what has never been done before?’”
—Stuart Hornery, Lend Lease
“Let us create such a building that future generations will take us for …
lunatics.” —church hierarchs at Seville
“We are crazy.
We should do something when people say it is ‘crazy.’ When people say something is ‘good,’
it means someone else is already doing it.” —Hajime Mitarai, former CEO, Canon
“You can’t behave in a calm, rational manner. You’ve got to be out on the …
lunatic fringe.”
—Jack Welch
Kevin (“Lovemarks”) Roberts’ Credo
1.
2.
3.
4.
5.
6.
7.
8.
9.
Ready. Fire! Aim.
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!
Note:
TWO Americans; EIGHT non-Americans (Scotsman,
2 Japanese, Aussie, Russian, German, Spaniard, Kiwi)
WINNERS’
!
Rules
Michael Raynor and Mumtaz Ahmed’: THE THREE RULES:
How Exceptional Companies Think*:
1. Better before cheaper.
2. Revenue before cost.
3. There are no other rules.
(*From a database of over 25,000 companies from hundreds of industries covering 45 years, they
uncovered 344 companies that qualified as statistically “exceptional.”)
Jeff Colvin, Fortune: “The Economy Is Scary … But Smart
Companies Can Dominate”:
They manage for value—not for EPS.
They keep developing human capital.
They get radically customer-centric.