To appreciate
this presentation [and
insure that it is not a mess], you
need Microsoft fonts:
NOTE:
“Showcard Gothic,”
“Ravie,” “Chiller”
and “Verdana”
Tom Peters
Excellence:
14H
The
“Theory of Everything”
National Business Growth Summit/Workshop
16 February 2011/Sydney Convention Center
“Business has to give
people enriching,
rewarding lives … or
it's simply not worth
doing.”
—Richard Branson
The Moral Basis For
& societal Role of
Enterprise.
Organizations
exist to serve.
Period.
Leaders live to
serve. Period.
“It is not enough for an agency to
be respected for its professional
competence. Indeed, there isn’t much
to choose between the competence
of big agencies.
“What so often makes the difference is
the character of the men and women who
represent the agency at the top level,
with clients and the business community.
“If they are respected as admirable
people, the agency gets business—
whether from present clients or
prospective ones.” —David Ogilvy
Why in the
World did you
go to Siberia?
An
emotional, vital, innovative,
joyful, creative,
entrepreneurial endeavor
that elicits maximum
Enterprise* ** (*at its best):
concerted human
potential in the
wholehearted service of
others.**
**Employees, Customers, Suppliers, Communities, Owners, Temporary partners
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
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.”
The Memories That Matter
Belly laughs at some of the stupid-insane things you and your mates
tried.
Less than a closet full of “I should have …”
A frighteningly consistent record of having
invariably said, “Go for it!”
Not intervening in the face of considerable loss—recognizing that to
develop top talent means tolerating failures and allowing the
person who screwed up to work their own way through and out of
their self-created mess.
Dealing with one or more crises with particular/memorable aplomb.
CIVILITY
Demanding …
… regardless of circumstances.
Turning around one or two or so truly dreadful situations—and
watching almost everyone involved rise to the occasion (often to
their own surprise) and acquire a renewed sense of purpose in the
process.
Leaving something behind of demonstrable-lasting worth. (On short as
well as long assignments.)
The Memories That Matter
Having almost always (99% of the time) put “Quality” and “Excellence”
ahead of “Quantity.” (At times an unpopular approach.)
A few “critical” instances where you stopped short and could have
“done more”—but to have done so would have compromised your and
your team’s character and integrity.
A sense of time well and honorably spent.
The expression of “simple” human kindness and consideration—no
matter how harried you may be/may have been.
Understood that your demeanor/expression of character always set
the tone—especially in difficult situations.
Never (rarely) let your external expression of enthusiasm/
determination flag—the rougher the times, the more your expressed
energy and bedrock optimism and sense of humor showed.
The respect of your peers.
A stoic unwillingness to badmouth others—even in private.
The Memories That Matter
An invariant creed: When something goes amiss, “The buck stops with
me”; when something goes right, it was their doing, not yours.
A Mandela-like “naïve” belief that others will
rise to the occasion if given the opportunity.
A reputation for eschewing the “trappings of power.” (Strong selfmanagement of tendencies toward arrogance or dismissiveness.)
Intense, even “driven” … but not to the point of being careless of others
in the process of forging ahead.
Willing time and again to be surprised by ways of doing things that are
inconsistent with your “certain hypotheses.”
Humility in the face of others, at every level,
who know more than you about “the way
things really are.”
Bit your tongue on a thousand occasions—and listened, really
really listened. (And been constantly delighted when, as a result, you
invariably learned something new and invariably increased your
connection with the speaker.)
The Memories That Matter
Unalloyed pleasure in being informed of the fallaciousness of your
beliefs by someone 15 years your junior and several rungs below you
on the hierarchical ladder.
Selflessness. (A sterling reputation as “a guy always willing to help out
with alacrity despite personal cost.”)
As thoughtful and respectful, or more so, toward thine “enemies” as
toward friends and supporters.
Always and relentlessly put at the top of your list/any
list being first and foremost “of service” to your
internal and external constituents. (Employees/Peers/
Customers/Vendors/Community.)
Treated the term “servant leadership” as holy writ. (And “preached”
“servant leadership” to others—new “non-managerial” hire or old
pro, age 18 or 48.)
The Memories That Matter
Created the sort of workplaces you’d like your kids to
inhabit. (Explicitly conscious of this “Would I want my
kids to work here?” litmus test.)
A “certifiable” “nut” about quality and safety and integrity. (More or
less regardless of any costs.)
A notable few circumstances where you resigned rather than
compromise your bedrock beliefs.
Perfectionism just short of the paralyzing variety.
A self- and relentlessly enforced group standard of
“EXCELLENCE-in-all-we-do”/“EXCELLENCE in our
behavior toward one another.”
Joe J. Jones
1942 – 2010
Net Worth
$21,543,672.48
“In a way, the world is a great liar.
It shows you it worships and admires
money, but at the end of the day it doesn’t.
It says it adores fame and celebrity, but it
doesn’t, not really. The world admires, and
wants to hold on to, and not lose,
goodness. It admires virtue. At the end it
gives its greatest tributes to generosity,
honesty, courage, mercy, talents well used,
talents that, brought into the world, make
it better. That’s what it really admires.
That’s what we talk about in eulogies,
because that’s what’s important. We don’t
say, ‘The thing about Joe was he was rich!’
We say, if we can …
“We say, if we can …
‘The thing about
Joe was he took
good care of
people.’”
—Peggy Noonan, “A Life’s Lesson,” on the astounding response to the passing of Tim Russert ,
The Wall Street Journal, June 21-22, 2008
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?
#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
I am sure you “spend time”
on this. My question: Is it an
OBSESSION
…
…worthy of the impact it has
on enterprise performance?
E.g.: Do you have the ...
ABSOLUTE BEST
TRAINING PROGRAM
IN THE INDUSTRY ...
(or some subset thereof)
for first-line supervisors?
Suggested addition to your statement of Core
“We are obsessed with
developing a cadre of 1st line
managers that is second to
none—we understand that this
cadre per se is arguably one of
our top two or three most
important ‘Strategic Assets.’”
Values:
Problem #1.
Opportunity #1.
XFX = #1*
*Cross-Functional eXcellence
Never
waste a
lunch!
“Allied commands depend
on mutual confidence
and this confidence is
gained, above all
through the development
of friendships.”
—General D.D. Eisenhower, Armchair General*
*“Perhaps his most outstanding ability [at West Point]
was the ease with which he made friends and earned
the
trust of fellow cadets who came from widely varied
backgrounds; it was a quality that would pay great
dividends during his future coalition command.”
R.O.I.R.
Return On
Investment In
Relationships
% XF
lunches*
Measure! Monthly! Part of
*
evaluation! [The PAs Club.]
Lunch
> SAP/
Oracle
XFX: Social
accelerators …
“XFX
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. Invite counterparts in other functions to your team meetings.
Religiously. Ask them to present “cool stuff” from “their world” to your
group. (B-I-G deal; useful and respectful.)
5. PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO
ACKNOWLEDGE—PRIVATELY AND PUBLICLY. (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 All-Star Supporters
[from other groups] Banquet” modeled after superstar salesperson
banquets.
7. Discuss—A SEPARATE AGENDA ITEM—good and problematic acts of
cross-functional co-operation at every Team Meeting.
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.
“XFX
Social
Accelerators.”
8. When someone in another function asks for assistance, respond
with … more … alacrity than you would if it were the person in the
cubicle next to yours—or even more than you would for a key external
customer. (Remember, XFX is the key to Customer Retention which is
in turn the key to “all good things.”)
9. Do not bad mouth ... “the damned accountants,” “the bloody HR
guy.” Ever. (Bosses: Severe penalties for this—including public tonguelashings.)
10. Get physical!! “Co-location” may well be the most powerful “culture
change lever.” Physical X-functional proximity is almost a …
guarantee … of remarkably improved co-operation—to aid this one
needs flexible workspaces that can be mobilized for a team in a flash.
11. Formal evaluations. Everyone, starting with the receptionist,
should have a significant XF rating component in their evaluation. (The
“XFX Performance” should be among the Top 3 items in all managers’
evaluations.)
12. Demand XF experience for, especially, senior jobs. For example,
the U.S. military requires all would-be generals and admirals to have
served a full tour in a job whose only goals were cross-functional
achievements.
13. XFX is … PERSONAL … as well as about organizational
effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to
personal success—in terms of organizational career, freelancer/Brand
You, or as an entrepreneur.
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.
“Incidentally” …
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”
“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
.
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
is
is
is
is
is
is
is
is
is
is
is
is
is
is
is
is
is
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
EXECUTION
the engine of superior
.
the key to making the Sale.
the key to Keeping the Customer’s Business.
Service.
the engine of Network development.
the engine of Network maintenance.
the engine of Network expansion.
Social Networking’s “secret weapon.”
Learning.
the sine qua non of Renewal.
the sine qua non of Creativity.
the sine qua non of Innovation.
the core of taking diverse opinions aboard.
Strategy.
Source #1 of “Value-added.”
Differentiator #1.
Profitable.* (*The “R.O.I.” from listening is higher than
from any other single activity.)
Listening is … the bedrock which underpins a Commitment to
EXCELLENCE
If
you agree with the above, shouldn’t listening be ... a
Core Value?
If you agree with the above, shouldn’t listening be ...
perhaps Core Value #1?* (*“We are Effective Listeners—
we treat Listening EXCELLENCE as the Centerpiece of our
Commitment to Respect and Engagement and Community
and Growth.”)
If you agree, shouldn’t listening be
If you agree, shouldn’t listening be
#1?
If you agree, shouldn’t listening be
item” at every Meeting?
If you agree, shouldn’t listening be
se? (Listening = Strategy.)
If you agree, shouldn’t listening be
for in Hiring (for every job)?
... a Core Competence?
... Core Competence
... an explicit “agenda
... our Strategy—per
... the #1 skill we look
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:
If you agree, shouldn’t listening be ... the #1 attribute
we examine in our Evaluations?
If you agree, shouldn’t listening be ... the #1 skill we
look for in Promotion decisions?
If you agree, shouldn’t listening be ... the #1 Training
priority at every stage of everyone’s career—from Day
#1 to Day LAST?
If you agree, what are you going to do about it ... in the
next 30 MINUTES?
If you agree, what are you going to do about it ... at your
NEXT meeting?
If you agree, what are you going to do about it ... by the
end of the DAY?
If you agree, what are you going to do about it ... in the
next 30 DAYS?
If you agree, what are you going to do about it ... in the
next 12 MONTHS?
*Listening is of the
utmost … strategic
importance!
*Listening is a proper …
core value !
*Listening is …
trainable !
*Listening is a …
profession !
Listen! Ask!
•Listening Leaders: The Ten Golden Rules To
Listen, Lead & Succeed—Lyman Steil and
Richard Bommelje
•The Zen of Listening—Rebecca Shafir
•Effective Listening Skills—Dennis Kratz and
Abby Robinson Kratz
•Are You Really Listening?—Paul Donoghue and
Mary Siegel
•Active Listening: Improve Your Ability to Listen
and Lead—Michael Hoppe
•Listening: The Forgotten Skill
—Madelyn Burley-Allen
•Leading with Questions: How Leaders Find the Right Solutions
by Knowing What to Ask—Michael Marquardt
•Smart Questions: Learn to Ask the Right Questions for Powerful
Results—Gerald Nadler and William Chandon
•The Art of Asking: Ask Better Questions, Get Better Answers
—Terry Fadem
•How to Ask Great Questions—Karen Lee-Thorp
•Change Your Questions, Change Your Life—Marilee Adams
•Asking the Right Questions: A Guide to Critical Thinking
—Neil Browne and Stuart Keeley
1/8 seconds
20 years
Date: 1/1/11
Activity: Boomers start
turning 65
Rate: 7.5 per minute/
10,000 per day/
4,000,000 per year
Duration: 20 years
Impacted: EVERYTHING
!!!!!!!!!!!!!!!!!
“People turning 50
more
than half of
today have
their adult life
ahead of them.”
—Bill Novelli,
50+: Igniting a Revolution to Reinvent America
55+ > 55-*
*“[55-plus] are more active in online
finance, shopping and entertainment than
those under 55?”—Forrester Research
(USA Today, 8 January 2009)
44-65:
“New
Customer
Majority”
Source: Ageless Marketing, David Wolfe & Robert Snyder
“Marketers attempts at reaching
those over 50 have been miserably
No market’s
motivations and
needs are so
poorly understood.”
unsuccessful.
—Peter Francese, founding publisher, American Demographics
“Baby-boomer
Women: The
Sweetest of
Sweet Spots for
Marketers”
—David Wolfe and Robert Snyder, Ageless Marketing
Median Household Net Worth
<35: $7K
35-44: $44K
45-54: $83K
55-64: $112K
65-69: $114K
70-74: $120K
>74: $100K
Source: U.S. Census
Suggested addition to your statement of Core
We understand that
there is an “aging
tsunami” that will alter the
marketplace
dramatically—and we
stand ready to respond
to/shape this humongous
market’s needs and
desires.
Values:
Four [really]
First things
Before First
Things …
Four First Things Before First Things:
Core Values/Surpassing Business Assets/
Sustainable Competitive Advantages
1. EXCELLENCE … First-line management
cadre as engine of enterprise
performance!
2. EXCELLENCE … Value-added opportunity #1
through seamless
cross-functional integration!
3. EXCELLENCE … “Strategic” listening as
peerless enterprise
differentiator!
4. EXCELLENCE … Seizing the stupendous
aging market opportunity!
All you need to know …
Hilton
Howard
Herb
Henry I
Henry II
Hamel
Hill
Harley
Handy
Hartville
Heather
Hewlett
Hsieh
Hillis
Conrad Hilton, at a gala
celebrating his career,
“What was the
most important lesson
you’ve learned in your
long and distinguished
career?” His answer …
was asked,
“remember
to tuck the
shower curtain
inside the
bathtub”
is
“Execution
strategy.”
—Fred Malek
“We have a
strategic plan.
It’s called doing
things.”
—Herb Kelleher
“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
“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
Does/will the next
presentation you
give/review allot more
time to the
process/details of
“implementing” than to
the “analysis of
problem/opportunity”?
“In real life, strategy
is actually very
straightforward. Pick
a general direction
… and implement
like hell.” —Jack Welch
“The art of war does not
require complicated
maneuvers; the simplest are
the best and common sense is
fundamental. From which one
might wonder how it is
it
is because they try to
be clever.”
generals make blunders;
—Napoleon
Internal
organizational
excellence =
Deepest “Blue
Ocean”
“The score
takes care of
itself.”
—Bill Walsh
All you need to know …
Hilton
Howard
Herb
Henry I
Henry II
Hamel
Hill
Harley
Handy
Hartville
Helgesen
Hewlett
Hsieh
Hillis
“I’m always stopping by our
at least 25
a week. I’m also in other
stores—
places: Home Depot, Whole Foods,
Crate & Barrel. … I try to be
a sponge to pick up as much
as I can. …” —Howard Schultz
Source: Fortune, “Secrets of Greatness”
MBWA
Managing By Wandering Around/HP
50%.
Un-scheduled.
Source: Dov Frohman
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
“If there is any one
‘secret’ to effectiveness,
it is concentration.
Effective executives do
first things first … and
they do one thing at a
time.” —Peter Drucker
… and they
do one thing
at a time.
“You must
be
the change you
wish to see in the
world.”
Gandhi
“It’s always
showtime.”
—David D’Alessandro, Career Warfare
“Script”
your first 5-10
“plays.” (I.e., carefully
Monday/Tomorrow:
launch the day/week in a
purposeful fashion.)
“I am a
dispenser of
enthusiasm.”
—Ben Zander
“Nothing is so
contagious as
enthusiasm.”
—Samuel Taylor Coleridge
“A leader is
a dealer in
hope.”
—Napoleon
(+TP’s writing room pics)
“It suddenly
occurred to me
that in the space
of two or three
hours …
“It suddenly occurred to me that in the space
he
never talked
about cars.”
of two or three hours …
—Les Wexner
All you need to know …
Hilton
Howard
Herb
Henry I
Henry II
Hamel
Hill
Harley
Handy
Hartville
Helgesen
Hewlett
Hsieh
Hillis
“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)
"If you want staff to
give great service,
give great service to
staff."
—Ari Weinzweig, Zingerman's
“A Nice Place to Work”
“Some of our people spend their
entire working lives in our agency.
We do our damnedest to make it a
happy experience. I put this first,
believing that superior service to our
clients, and profits for our
stockholders, depend on it. …”
—David Ogilvy, on Ogilvy & Mather’s corporate culture
“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.
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. …
“We are a
‘Life Success’
Company.”
Dave Liniger, founder, RE/MAX
“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
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.
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.
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.)
“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
PARC’s Bob Taylor:
“Connoisseur
of Talent”
53 = 53
People are not
“Standardized.”
Their evaluations
should not be
standardized. Ever.
“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
“In short, hiring is
remains woefully
misunderstood.”
Source: Wall Street Journal, 10.29.08,
review of Who: The A Method for Hiring,
Geoff Smart and Randy Street
What will you
do in the next 90
days to begin the
journey to “all
pro” hire-er??
“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 up-and-comers
clawed their way to all-conference
and All-America teams.” —Bo Schembechler
(and John Bacon), “Recruit for Character,”
Bo’s Lasting Lessons
“How to throw
$500,000 into
the sea in one
easy lesson!!”
TP:
< CAPEX
> People!
Source: Container Store/Goal: increase average sale per shopper
Exhibitions of
bravery: All hail
the … TRAINING
… department.
No company ever
Expended too much
thought/Effort/
$$$$ on training!*
*ESPECIALLY … small company
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
Tomorrow: How
many times will you
“ask the WDYT
question”?
[Count ‘em!!]
[Practice makes better!] [This is a
STRATEGIC skill!]
What do managers do for a living?
Help!
Right?
How many of us could call ourselves “professional helpers,” meaning that we have
studied—like a professional mastering her musical craft—“helping”? (Not many, I’d
judge.)
Ed Schein:
Helping: How to Offer, Give, and Receive Help
Last chapter: 7 “principles.” E.g.:
PRINCIPLE 2: “Effective Help Occurs When the Helping Relationship Is
Perceived to Be Equitable.
PRINCIPLE 4: “Everything You Say or Do Is an Intervention that
Determines the Future of the Relationship..
PRINCIPLE 5: “Effective Helping Begins with Pure Inquiry.
PRINCIPLE 6: “It Is the Client Who Owns the Problem.”*
“Client”
(*Love the idea that the employee is a
! Words matter!! Read a quote from NFL
player-turned lawyer-turned professional football coach, calling his players “my clients.”)
Employee as Client!
“Helping” is what we [leaders] “do” for a living!
STUDY/PRACTICE “helping” as you would neurosurgery!
(“Helping” is your neurosurgery!)
2%
/98%
“Be kind, for
everyone you
meet is fighting a
great battle.”
—Philo of Alexandria
“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
All you need to know …
Hilton
Howard
Herb
Henry I
Henry II
Hamel
Hill
Harley
Handy
Hartville
Helgesen
Hewlett
Hsieh
Hillis
“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)
none!
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; Plantree 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 screwups.
“Over”-reacts to screwups 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.
“The deepest
human need is
the … need to be
appreciated.”
—William James
“One kind
word can
warm three
winter
months.”
– Japanese Proverb
Tomorrow: How many
times will you mange to
blurt out, “Thank you”?
[Count ‘em!]
[Practice makes better!] [This is a STRATEGIC skill!]
*appreciation is of the
utmost … strategic
importance!
*appreciation is a proper …
core value !
*appreciation is … trainable
!
*appreciation is a … profession
!
A CANDIDATE FOR THE “VALUES STATEMENT”:
“We habitually express
appreciation for one
another’s efforts—because
we do in fact consciously
appreciate everyone’s
‘ordinary’ ‘daily’
contributions, let alone the
extraordinary ones.”
“Ladies and
gentlemen serving
ladies and
gentlemen.”
—Ritz Carlton credo
“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
Toro, the lawn mower
folks, reduced the average cost
of settling a claim from
$115,000 in 1991 to $35,000
in 2008—and the company
hasn’t been to trial in the last
15 years!
apologies …
Source: John Kador, Effective Apology
“Keep a short
enemies list. One
enemy can do more
damage than the
good done by a
hundred friends.”
—Bill Walsh (from The Score Takes Care of Itself)
“One of the secrets of
a long and fruitful life
is to forgive everybody
of everything every
night right before
going to bed.” —Bernard Baruch
“It’s a simple fact.
Many people will
remember a
‘simple’ sleight
for decades!
Beware!”
—consumer goods exec
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.
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.”
Service >
Sales
Sales >
Marketing
All you need to know …
Hilton
Howard
Herb
Henry I
Henry II
Hamel
Hill
Harley
Handy
Hartville
Helgesen
Hewlett
Hsieh
Hillis
READY.
FIRE!
AIM.
H. Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)
“This is so simple it sounds stupid, but it is amazing
how few oil people really understand that
you only find
oil if you drill
wells.
You may think you’re finding it
when you’re drawing maps and
studying logs, but you have to drill.”
Source: The Hunters, by John Masters,
wildly successful Canadian Oil & Gas wildcatter
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
/45
What makes
God laugh?
People
making
plans!
“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
Mickey Drexler/The Gap-J Crew
**Bias for instant action/Towering impatience with in-action
**Impatient but not brutal
**Relentless/Speed-of-light experimentation; more ASAP if works,
drop if not
**Vibrates
with energy (literally)
**Always on the prowl—anywhere, everywhere—for ideas
**Lots of team-standing-around-making-instant-assessments-decisions—all contributing
**Likes working with women more than men because F more intuitive than M
**Dresses like the brand—at 66
**Offense, not defense
**Communicates
all the time [removes fear of CEO presence]. Everyone,
including most junior, made part of the decision-making team
**Listens attentively regardless of age/seniority
**Obvious in his transparent respect for young employees
**Trusts intuition plus fanatic about the numbers
**Expects everyone to know their numbers cold from memory
**Always aware of “the business case”—as well as fashion-master
**Aggressive pricing
**MBWA/Managing By Wandering Around
**Open with everyone, from youth to folks at Earnings Call
**Constant customer contact-dialogue/Reacts instantly
**Willing to act (experiment) based on one datapoint
**Engages with the most junior of his people
**At 66, comfortably uses “hot” words like “Cool” “Wow”
Source: The New Yorker/0920.10
to customer feedback
“Experiment
fearlessly”
Source: BusinessWeek, “Type A Organization Strategies:
How to Hit a Moving Target”—Tactic
#1
“relentless
trial and
error”*
*Cornerstone of effective approach to “rebalancing” company
portfolios in the face of changing and uncertain global
economic conditions (Wall Street Journal, 11.08.10)
Read It
Richard Farson & Ralph Keyes:
Whoever Makes
the Most Mistakes
Wins: The Paradox
of Innovation
“Fail.
Forward.
Fast.”
High Tech CEO, Pennsylvania
“Fail. Fail
again. Fail
better.”
—Samuel Beckett
“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)
“You miss
100% of
the shots you
never take.”
—Wayne Gretzky
BLAME NOBODY.
EXPECT NOTHING.
DO SOMETHING.
Source: Locker room sign posted by NFL
football coach Bill Parcells
All you need to know …
Hilton
Howard
Herb
Henry I
Henry II
Hamel
Hill
Harley
Handy
Hartville
Helgesen
Hewlett
Hsieh
Hillis
“You will become
like the five people
you associate with
the most—this can
be either a blessing
or a curse.”
—Billy Cox
We are What
We Eat/We Are
the company
we keep
Measure “Strangeness”/Portfolio Quality
Staff
Consultants
Vendors
Out-sourcing Partners (#, Quality)
Innovation Alliance Partners
Customers
Competitors (who we “benchmark” against)
Strategic Initiatives
Product Portfolio (LineEx v. Leap)
IS/IT Projects
HQ Location
Lunch Mates
Language
Board
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’”
“[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
“Future-defining
customers may account
for only 2% to 3% of
your total, but they
CUSTOMERS:
represent a crucial
window on the future.”
Adrian Slywotzky, Mercer Consultants
Axiom: Never use a
vendor who is not in
the top quartile
(decile?) in their
industry on R&D
spending!
“Don’t
benchmark,
futuremark!”
Impetus: “The future is already here; it’s just
not evenly distributed” —William Gibson
“d”iversity
Can you pass the …
“Squint
test”?
“Who’s the most
interesting person
you’ve met in the
last 90 days? How
do I get in touch
with them?”
—Fred Smith
“The
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
All you need to know …
Hilton
Howard
Herb
Henry I
Henry II
Hamel
Hill
Harley
Handy
Hartville
Helgesen
Hewlett
Hsieh
Hillis
2,000,000
7X.
7:30A-8:00P.
F12A.
7:30AM = 7:15AM.
8:00PM = 8:15PM.
Conveyance: Kingfisher Air
Location: Approach to New Delhi
“May I
clean your
glasses,
sir?”
BEGINS
(and ENDS)
It
in the …
parking
lot*
*Disney
Carl’s
StreetSweeper
<TGW
and …
>TGR
[Things Gone WRONG-Things Gone RIGHT]
TGRs.
Manage ‘em.
Measure ‘em.
Little =
Big carts =
Source: Walmart
Bag sizes = New markets:
Source: PepsiCo
“Broken windows”: Clean
the streets, fix the
broken windows, ticket
the open-beer-can
holders, etc, etc
= Sense of order
= Crime way down
All you need to know …
Hilton
Howard
Herb
Henry I
Henry II
Hamel
Hill
Harley
Handy
Hartville
Helgesen
Hewlett
Hsieh
Hillis
And in
Milwaukee …
Experience: “Rebel Lifestyle!”
“What we sell is the
ability for a 43year-old accountant
to dress in black
leather, ride through
small towns and have
people be afraid
of him.”
Source:
Harley exec, quoted in Results-Based Leadership
“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
Words!
— Magician of Magical Moments
— Maestro of Moments of Truth
— Recruiter of Raving Fans
— Impresario of First Impressions
—Chief of Last Impressions
— Wizard of WOW!
— Captain of Brilliant Comebacks
— Director of Electronic Customer Experiences
— Conductor of Customer Intimacy
— King of Customer Community
— Queen of Customer Retention
— CEO of Ownership Experience
— Managing Director of After-sales Experience
The Value-Added Ladder
Spellbinding
Experiences
Services
Goods
Raw Materials
All you need to know …
Hilton
Howard
Herb
Henry I
Henry II
Hamel
Hill
Harley
Handy
Hartville
Helgesen
Hewlett
Hsieh
Hillis
All Equal Except …
“At Sony we assume that all
products of our competitors
have basically the same
technology, price, performance
Design is the
only thing that
differentiates one
product from another in
the marketplace.” —Norio Ohga
and features.
“Design is
treated like
a religion at
BMW.” —Fortune
“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
Hypothesis:
DESIGN is
the principal
difference
between love
and hate!*
*Not “like” and “dislike”
Design is …
never
neutral.
O*
C
*Chief
Design
Officer
“Design is everything.
Everything is design.”
“We are all designers.”
Inspiration: The Power of Design: A Force for
Transforming Everything, Richard Farson
“One bank is currently
claiming to …
‘leverage its global
footprint to provide effective
financial solutions for its customers
by providing a gateway to diverse
markets.’”
—Charles Handy
“I assume that it is just saying
that it is there to …
‘help
its customers
wherever they
are.’”
—Charles Handy
Beauty.
Grace.
Clarity.
Simplicity.
CGRO*
*CGRO/ Chief Grunge Removal Officer
(CDC/ Chief of De-Complexification)
(CAO/ Chief Anti-systems Officer)
(CBSEO/ Chief BS Eradication Officer)
All you need to know …
Hilton
Howard
Herb
Henry I
Henry II
Hamel
Hill
Harley
Handy
Hartville
Helgesen
Hewlett
Hsieh
Hillis
“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 …
“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
“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
#4 Japan
#3 USA
#2 China
#1 Germany
MittELstand*
*“agile creatures darting between
the legs of the multinational
monsters"
(Bloomberg BusinessWeek, 10.10)
Larry Janesky
Rocks …
*Basement Systems Inc.
(Seymour CT)
*Dry Basement Science
(115,000 copies!)
*1990: $0; 2003: $13M;
2008:
$62,000,000
The Red
Carpet
Store
(Joel Resnick/Flemington NJ)
“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
Retail Superstars:
Inside the 25 Best
Independent Stores
in America
—by George Whalin
Hartville Hardware
pop <2,500
100,000 square feet (plus catalog,
Hartville, Ohio,
Web serve location)
Family run
“One of biggest and best tool merchants
in USA”
Customers from 100s of miles away
Renowned semi-annual tool sale (12,000
transactions at recent incarnation)
Anchor for 110-independent shops @
Hartville MarketPlace
Staff are premier trainers
Etc.
Etc.
Source: Retail Superstars: Inside the 25 Best Independent Stores in America, George Whalin
Jungle Jim’s International Market, Fairfield, Ohio: “An
‘shoppertainment,’
adventure in
as Jungle
Jim’s call it, begins in the parking lot and goes on to
1,600 cheeses and, yes, 1,400 varieties of hot sauce—not
to mention 12,000 wines priced from $8 to $8,000 a
bottle; all this is brought to you by 4,000 vendors.
Customers come from every corner of the globe.”
Bronner’s Christmas Wonderland, Frankenmuth, Michigan,
pop 5,000: 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 Christmas.
Source: George Whalin, Retail Superstars
Abt Electronics/Family/1936
Insane competition (Chicagoland!)
Campus/350K sq.ft./37 acres/$300M revenue
Design Center (Classes on every-damn-thing, etc.)
“Destination” like Ikea (restaurant, atrium
with spectacular flowers, 7,500 gallon
aquarium, etc.)
In-house delivery teams (spiffy uniforms, etc.)
Training/knowledge training!!!!!!!!
“Yes.” Period. NO EXCUSES.
“Over”-staffed
Merchandising (boats displaying marine
electronics, cars with various systems, etc.)
Web (encyclopedic info re almost all stuff sold,
blog, live chat with live experts “24/7”, etc.)
Rating of services (>>> Home Depot, Lowes, etc.)
Source: George Whalin, Retail Superstars
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
YOU CAN
HOLD IT.
Billboard …
ONLY 262 MILES TO
BUC-EE’S
YOU CAN HOLD IT.*
*“If I weren’t already married, I’d have my wedding
there.” —Dallas Morning News Metro blogger
All you need to know …
Hilton
Howard
Herb
Henry I
Henry II
Hamel
Hill
Harley
Handy
Hartville
Heather
Hewlett
Hsieh
Hillis
“Forget China, India
and the Internet:
Economic Growth Is
Driven by
Women.”
Source: Headline, Economist
W>
2X (C + I)*
*“Women now drive the global economy. Globally, they control about $20
trillion in consumer spending, and that figure could climb as high as
$28 trillion in the next five
years
. Their $13 trillion in total yearly earnings could reach $18
trillion in the same period.
In aggregate, women represent a growth market bigger than China and
India combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate
the female consumer. And yet many companies do just that—even ones that are confident 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
“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
“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.
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
“We simply had
stopped being
relevant to women.”
—Kay Napier, SVP Marketing, McDonald’s (Fara Warner, The
Power of the Purse, “From Minority to Majority: McDonald’s
Discovers the Woman Inside the Mom”)
“McDonald’s shifted its strategy
toward women from one of
‘minority’ consumers who served as
a conduit to the important
children’s market to one in which
women are the company’s majority
consumers and the main driver
behind menu and promotion
innovation.” —Fara Warner,
The Power of the Purse, “From Minority to Majority:
McDonald’s Discovers the Woman Inside the Mom”
Lowe’s!
“Women don’t ‘buy’
They
‘join’ them.”
brands.
—Faith Popcorn, EVEolution
2.6 vs.
Purchasing Patterns
Harder to convince;
more loyal once convinced.
Women:
Men:
Snap decision; fickle.
Source: Martha Barletta, Marketing to Women
H11.5
“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
“Power Women 100”/Forbes 10.25.10
26 female CEOs of Public Companies:
Vs. Men/Market:
+28% *
(*Post-appointment)
Vs. Industry:
+15%
“TAKE THIS QUICK QUIZ: Who manages more things
at once? Who puts more effort into their
appearance? Who usually takes care of the
details? Who finds it easier to meet new
people? Who asks more questions in a
conversation? Who is a better listener? Who
has more interest in communication skills?
Who is more inclined to get involved? Who
encourages harmony and agreement? Who has
better intuition? Who works with a longer ‘to
do’ list? Who enjoys a recap to the day’s
events? Who is better at keeping in touch
with others?”
Selling Is a Woman’s Game:
15 Powerful Reasons Why Women Can Outsell
Men, Nicki Joy & Susan Kane-Benson
Source/from the back cover:
“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
*Women
*Women
*Women
*Women
decide.
save.
spend.
rule.
*Women
*Women
*Women
*Women
decide
save
spend
rule
*In the developed world
*In the developing world
*The trend is accelerating
Not Just America …
“Boys Falling
Seven Years
Behind Girls
at GCSE Level”
—headline, Weekly Telegraph, UK, 10.25.06
“Girls are
the new
boys.”
Source: The Daily Mail, 0425.2007,“Why today’s women want a girl”
All you need to know …
Hilton
Howard
Herb
Henry I
Henry II
Hamel
Hill
Harley
Handy
Hartville
Heather
Hewlett
Hsieh
Hillis
“HP to acquire
EDS for
billion”
$13.9
—Hewlett-Packard press release, 05.13.2008
Huge: Customer
Satisfaction
versus
Customer
Success
“ ‘Results’ are
measured by the
success of all those
who have purchased
your product or
service” —Jan Gunnarsson & Olle Blohm, The
Welcoming Leader
IBM:
$55B*
*IBM Global Services/
“Systems integrator of choice”
“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
MasterCard
Advisors
I. LAN Installation Co.
II. Geek Squad.
(3%)
(30%.)
III. Acquired by BestBuy.
IV. Flagship of BestBuy
Wholesale “Solutions”
Strategy Makeover.
Up,
Up,
Up,
Up
the Value-added Ladder.
All you need to know …
Hilton
Howard
Herb
Henry I
Henry II
Hamel
Hill
Harley
Handy
Hartville
Heather
Hewlett
Hsieh
Hillis
Zappos 10 Corporate Values
Deliver
“WOW!”
through service.
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
“Insanely Great”
Steve Jobs
“Radically thrilling”
BMW
“Astonish me!”
(Sergei Diaghlev)
“Build something great!”
(Hiroshi Yamauchi)
“Make it immortal!”
(David Ogilvy).
“Every project we undertake starts
with the same question : ‘How
can we do what
has never been
done before?’”
—Stuart Horney, Lend Lease
“Let us create such
a building that
future generations
will take us for
lunatics.”
—the church hierarchs at Seville
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!
“You can’t behave
in a calm, rational
manner. You’ve got
to be out there on
the lunatic fringe.”
— Jack Welch
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
All you need to know …
Hilton
Howard
Herb
Henry I
Henry II
Hamel
Hill
Harley
Handy
Hartville
Heather
Hewlett
Hsieh
Hillis
“The computers
are in control.
We just live in
their world.”
“In some sense you can
argue that the science
fiction scenario is already
starting to happen. The
computers are in control.
We just live in their
world.”
—Danny Hillis, Thinking Machines (Wired 01.2011)
“It is not the
strongest of the
species that survives,
nor the most
intelligent, but the
one most responsive
to change.”
—Charles Darwin
“You must be
the change you
wish to see in
the world.”
—Gandhi
Summary:
The Moral Basis For
& societal Role of
Enterprise
Really first things
before first things
H15 (The Theory of
Everything)
Summary:
The Moral Basis For
& societal Role of
Enterprise
Organizations
exist to serve.
Period.
Leaders live to
serve. Period.
Summary:
Really first things
before first things
First Things Before First Things:
Core Values/Surpassing Business Assets/
Sustainable Competitive Advantages
1. EXCELLENCE … First-line management
cadre as engine of enterprise
performance!
2. EXCELLENCE … Value-added opportunity #1
through seamless
cross-functional integration!
3. EXCELLENCE … “Strategic” listening as
peerless enterprise
differentiator!
4. EXCELLENCE … Seizing the stupendous
aging market opportunity!
Summary:
14H (The Theory of
Everything)
The 14H Theory of Everything
*Conrad Hilton/Sweat the details!/EXECUTION is Strategy!
*Howard Schultz/MBWA!!!!/Best LISTENER wins!
*Herb Kelleher/It’s always all about the PEOPLE!!!!!!!!!!!!!!!!!!!!
*Henry Clay/Big payoff from SMALL COURTESIES!
*H. Ross Perot/Most TRIES & SCREWUPS are alpha & omega!
*Gary Hamel/You are who you HANG OUT with!
*Vernon Hill/“TGRs”! [Things Gone RIGHT]/Little BIG Things!
*Harley Davidson/EXPERIENCES to die for!/Feel the LOVE!
*Charles Handy/Everything is DESIGN!
*Hartville Hardware/MONOPLY through EXCELLENCE!
*Heather Schultz/WOMEN buy!/WOMEN roar!/WOMEN rule!
*Hewlett Packard/Make our customer a RAGING SUCCESS!
*Tony Hsieh/WOW!/Radically thrilling!/Insanely great!
*Danny Hillis/YEOW! The “singularity” may be upon us!
“Excellence …
can be obtained if you:
... care more than others think
is wise;
... risk more than others think
is safe;
... dream more than others think
is practical;
... expect more than others think
is possible.”
Source: Anon. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)