Welcome to Tom Peters “PowerPoint World”! Beyond the set of slides here, you will find at tompeters.com the last eight years of presentations, a basketful of “Special Presentations,” and, above all, Tom’s constantly updated Master Presentation—from which most of the slides in this presentation are drawn. There are about 3,500 slides in the 7-part “Master Presentation.” The first five “chapters” constitute the main argument: Part I is context. Part II is devoted entirely to innovation—the sine qua non, as perhaps never before, of survival. In earlier incarnations of the “master,” “innovation” “stuff” was scattered throughout the presentation— now it is front and center and a stand-alone. Part III is a variation on the innovation theme—but it is organized to examine the imperative (for most everyone in the developed-emerging world) of an ultra high value-added strategy. A “value-added ladder” (the “ladder” configuration lifted with gratitude from Joe Pine and Jim Gilmore’s Experience Economy) lays out a specific logic for necessarily leaving commodity-like goods and services in the dust. Part IV argues that in this age of “micro-marketing” there are two macro-markets of astounding size that are dramatically underattended by all but a few; namely women and boomers-geezers. Part V underpins the overall argument with the necessary bedrock—Talent, with brief consideration of Education & Healthcare. Part VI examines Leadership for turbulent times from several angles. Part VII is a collection of a dozen Lists—such as Tom’s “Irreducible 209,” 209 “things I’ve learned along the way.” Enjoy! Download! “Steal”—that’s the whole point! To appreciate this presentation [and ensure that it is not a mess], you need Microsoft fonts: NOTE: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” Tom Peters’ EXCELLENCE. ALWAYS. Global Leaders Gallagher Estate/12.03.2008 Slides at … tompeters.com Part I EXCELLENCE. ALWAYS. Essentials. #1/14 “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) MBWA “20-minute rule” —Craig Johnson/30 yrs 5,000 miles for a 5-minute face-to -face meeting * *Hank Paulson, China visits, Fortune 1127.06 “I call 60 CEOs to wish them happy New Year. …” [in the first week of the year] —Hank Paulson, former CEO, Goldman Sachs Source: Fortune, “Secrets of Greatness,” 0320.05 MBWA, Grameen Style! “Conventional banks ask their clients to come to their office. It’s a terrifying place for the poor and illiterate. … The entire Grameen Bank system runs on the principle that people should not come to the bank, the bank should go to the people. … If any staff member is seen in the office, it should be taken as a violation of the rules of the Grameen Bank. … It is essential that [those setting up a new village Branch] have no office and no place to stay. The reason is to make us as different as possible from government officials.” Source: Muhammad Yunus, Banker to the Poor The “Have you …” 50 “Mapping your competitive position” or … 1. Have you in the last 10 days … visited a customer? 2. Have you called a customer … TODAY? 3. Have you in the last 60-90 days … had a seminar in which several folks from the customer’s operation (different levels, different functions, different divisions) interacted, via facilitator, with various of your folks? 4. Have you thanked a front-line employee for a small act of helpfulness … in the last three days? 5. Have you thanked a front-line employee for a small act of helpfulness … in the last three hours? 6. Have you thanked a frontline employee for carrying around a great attitude … today? 7. Have you in the last week recognized—publicly—one of your folks for a small act of cross-functional co-operation? 8. Have you in the last week recognized—publicly—one of “their” folks (another function) for a small act of cross-functional co-operation? 9. Have you invited in the last month a leader of another function to your weekly team priorities meeting? 10. Have you personally in the last week-month called-visited an internal or external customer to sort out, inquire, or apologize for some little or big thing that went awry? (No reason for doing so? If true—in your mind—then you’re more out of touch than I dared imagine.) 1. Have you in the last 10 days … visited a customer? 2. Have you called a customer … TODAY? You = Your calendar* *Calendars never lie Conrad Hilton, at a gala celebrating his life, was asked, “What was the most important lesson you’ve learned in you long and distinguished career?” His immediate answer: “remember to tuck the shower curtain inside the bathtub” 2-cent candy <TGW vs. >TGR “one idea.” 1966-2008. What makes God laugh? People making plans! “This is so simple it sounds stupid, but it is amazing how few oil people really understand that you only find oil if you drill wells. You may think you’re finding it when you’re drawing maps and studying logs, but you have to drill.” Source: The Hunters, by John Masters, Canadian O & G wildcatter “We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the software. We fixed them by doing it over and over, again and again. We do the same today. While our competitors are still sucking their thumbs trying to make the design perfect, we’re already on prototype version #5. By the time our rivals are ready with wires and screws, we are on version #10. It gets back to planning versus acting: We act from day one; others plan how to plan— for months.” —Bloomberg by Bloomberg “Fail . Forward. Fast.” High Tech CEO, Pennsylvania “You miss 100% of the shots you never take.” —Wayne Gretzky Joe J. Jones 1942 – 2008 HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN’T HIM! LET “one idea.” 1966-2008. ry it. Try it. Screw t up. Try it. Try it Try it. Try it. Try it ry it. Screw it up Try it. Try it. try i ry it. Screw it up “one point one idea/s.” 1966-2007. “Execution is strategy.” —Fred Malek “Execution is the job of the business leader.” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done “Execution = Deepest “Blue Ocean” The “XF-50”: 50 Ways to Enhance CrossFunctional Effectiveness and Deliver Speed, “Service Excellence” and “Valueadded Customer ‘Solutions’” 1. It’s our organization to make work—or not. It’s not “them,” the outside world that’s the problem. The enemy is us. Period. 2. Friction-free! Dump 90% of “middle managers”—most are advertent or inadvertent “power freaks.” We are all—every one of us—in the Friction Removal Business, one moment at a time, now and forevermore. 3. No “stovepipes”! “Stove-piping,” “Silo-ing” is an Automatic Firing Offense. Period. No appeals. (Within the limits of civility, somewhat “public” firings are not out of the question—that is, make one and all aware why the axe fell.) 4. Everything on the Web. This helps. A lot. (“Everything” = Big word.) 5. Open access. All available to all. Transparency, beyond a level that’s “sensible,” is a de facto imperative in a Burn-the-Silos strategy. Project managers rule!! Project managers running XF (crossfunctional) projects are the Elite of the organization, and seen as such and treated as such. (The likes of construction companies have practiced this more or less forever.) 6. 7. “Value-added Proposition” = Application of integrated resources. (From the entire supplychain.) To deliver on our emergent business raison d’etre, and compete with the likes of our Chinese and Indian brethren, we must co-operate with anybody and everybody “24/7.” IBM, UPS and many, many others are selling far more than a product or service that works—the new “it” is pure and simple a product of XF co-operation; “the product is the co-operation” is not much of a stretch. The last word: There is no “last word.” TP#1*: Netscape! *Where would you rather have worked for those 5 years, Netscape or IBM-HP-Microsoft-Oracle? (Where, 25 years from now, would you rather to be able to tell someone—e.g., grandchild—that you worked?) Built to Last vs Built to Change/Rock the World “How to flush $500,000 down the toilet in one easy lesson!!” TP: < CAPEX > People! Brand = Talent. 2/year = legacy. #1 cause of Dis-satisfaction? ‘do’ “Leaders people. Period.” —Anon. “The role of the Director is to create a space where the actors and become more than they’ve ever been before, more than they’ve dreamed of being.” actresses can —Robert Altman, Oscar acceptance speech “Leaders ‘SERVE’ people. Period.” —inspired by Robert Greenleaf “No matter what the situation, [the excellent manager’s] first response is always to think about the individual concerned and how things can be arranged to help that individual experience success.” —Marcus Buckingham, The One Thing You Need to Know “We are a ‘Life Success’ Company.” Dave Liniger, founder, RE/MAX “Do one thing every day that scares you.” —Eleanor Roosevelt Kevin Roberts’ Credo 1. Ready. Fire! Aim. 2. If it ain’t broke ... Break it! 3. Hire crazies. 4. Ask dumb questions. 5. Pursue failure. 6. Lead, follow ... or get out of the way! 7. Spread confusion. 8. Ditch your office. 9. Read odd stuff. 10. Avoid moderation! “Normal” = “o for 800” The “Hang Out Axiom”: At its core, every (!!!) relationship-partnership decision (employee, vendor, customer, etc) is a strategic decision about: “Innovate, ‘Yes’ or ‘No’ ” “Every child is born an artist. The trick is to remain an artist.” —Picasso “My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding refrigerator artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How could any child—let alone our child—receive a poor His teacher informed us that he had refused to color within the lines, which was a state requirement for demonstrating ‘grade-level motor skills.’ ” grade in art at such a young age? —Jordan Ayan, AHA! Muhammad Yunus: “All human beings are entrepreneurs. When we were in the caves we were all selfemployed . . . finding our food, feeding ourselves. That’s where human history began . . . As civilization came we suppressed it. We became labor because they stamped us, ‘You are labor.’ We forgot that we are entrepreneurs.” Source: Muhammad Yunus/2006 Nobel Peace prize winner, father of micro-lending /The News Hour—PBS/1122.2006 Single greatest act of pure imagination “Strive for Excellence. Ignore success.” —Bill Young, race car driver (courtesy Andrew Sullivan) 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 Hard Is Soft Soft Is Hard Hard Is Soft (Plans, #s) Soft Is Hard (people, customers, values, relationships)) “If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of people is [Yet] I came to see in my time at IBM that culture isn’t just one aspect of the very, very hard. game —it is the game.” —Lou Gerstner, Who Says Elephants Can’t Dance Hard Is Soft Soft Is Hard “What I learned from my years as a hostage negotiator is that we do not have to feel powerless—and that bonding is the antidote to the hostage situation.” —George Kohlrieser, Hostage at the Table “The terms ‘hard facts,’ and ‘the soft stuff’ used in business imply that data are somehow real and strong while emotions are weak and less important.” — George Kohlrieser, Hostage at the Table 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” Hard Is Soft Soft Is Hard R.O.I.R. Return On Investment In Relationships “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?” Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson “Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” —Henry Clay Thank you!!! Relationships (of all varieties): THERE ONCE WAS A TIME WHEN A THREE-MINUTE PHONE CALL WOULD HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE. THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM. “I’m really sorry.” “I screwed up.” Attending to the “Last 98%”: The New Management “Science,” or … “Hard Is Soft, Soft Is Hard” Tom Peters/12.03.2008 S = f( ___ ) Success Is a Function of … S = f(#&DR; -2L, -3L, 4L; I&E) Number and depth of relationships 2, 3, and 4 levels down, inside and outside the organization S = f(SD>SU) Sucking down is more important than sucking up—the idea is to have the entire organization working for you. S = f(#non-FF, #non-FL) Number of friends, number of lunches with people not in my function S = f(#FF) Number of friends in the finance function-organization S = f(OF) Oddball friends S = f(PDL) Purposeful, deep listening—this is very hard S + f(#EODD3MC) Number of end-of-the-day difficult (you’d rather avoid) “3-minutecalls” that soothe raw feelings, mend fences, etc S = f(UFP, UFK, OAPS) Unsolicited favors performed, UFs involving co-workers’ kids, overt acts politeness-solicitude toward co-workers’ spouses, parents, etc. S = f(#TN) Number of thank you notes sent S = f(#C, PTS/“OLC”, SAPA) # of consultations, perception of being taken serious (Responsible for “one line of code,” small act of public appreciation S = f(SU) Showing up (Woody Allen, Deleware’s ridiculous influence on the U.S. Constitution) S = f(1D) Seeking the assignment of writing first drafts, minutes, etc (1787) S = f(#SEAs) Number of solid relationships with Executive Assistants S = f(%UL/w-m) % useful lunches per week, month S = f(FG,FOC-BOF, CMO) Favors given, favors owed collectively, balance of favors, conscious management thereof S = f(CPRM, TS) Conscious-planned Relationship management, time spent thereon S = f(TN/d, FG/m, AA/d) Thank you notes per Day, flowers given per Month, Acts of Appreciation per Day S = f(PT100%A“T”S, E“NMF”—TTT) Proactive, timely, 100% apologies for “tiny” screwups, even if not my fault (it always takes two to tango) FLOWER FLOWER POWER POWER S = f(AMR, NBS-SG) Acceptance of mutual responsibilities for all affairs, no blameshifting, scape-goating S = f(APLSLFCT) Awareness, perception of little snubs—and lightening fast correction thereof S = f(G) Grace S = f(GA) Grace toward adversary S = f(GW) Grace toward the wounded in bureaucratic firefights S = f(PD) Purposeful decency S = f(TSPD, TSP-L1) Time spent on promotion decisions, especially for 1st level managers S = f(%“SS”, H-PD) % soft stuff involved in Hiring, Promotion decisions S = (TWA, P, NP) Time wandering around, purposeful, non-planned S = f(SBS) Slack built into Schedule S= f(TSHR) Time spent … Hurdle Removing S = f(%TM“TSS,” PM“TSS,” D“TD”“TSS”) % of time, measured, on This Soft Stuff, purposeful management of this Soft Stuff, daily “to do” concerning “this Soft Stuff” S = f(MB“TSS”MR) Purposeful management of this Soft Stuff by people reporting to me S = f(EC, MMO) Emotional connection, mgt & maintenance of S = f(IMDOP) Investment in Mastery of detailed organization processes S = f(H-TS) Time spent on Hiring S = f(%TM“TSS,” PM“TSS,” D“TD”“TSS”) % of time, measured, on This Soft Stuff, purposeful management of this Soft Stuff, daily “to do” concerning “this Soft Stuff” Q: But where’s the beef? A: This is the beef! “Hard” is “soft.” “Soft” Is “hard.” Don’t forget the “it”! “It suddenly occurred to me … “It suddenly occurred to me that in the space of two or three hours never he talked about cars.” —Les Wexner Franchise Lost! TP: “How many of you really [600] crave a new Chevy?” NYC/IIR/061205 Did one of ’em ever turn to the other and say: “Wow I wonder what unimaginable new tools, otherwise not possible, will be quickly brought forth for my 19-year-old daughter Anne because of this deal?” Who buys “it” I: Sunset for men! “Forget China, India and the Internet: Economic Growth Is Driven by Women.” —Headline, Economist, April 15, 2006, Leader, page 14 “Women are the majority market” —Fara Warner/The Power of the Purse “Goldman Sachs in Tokyo has developed an index of 115 companies poised to benefit from women’s increased purchasing power; over the past decade the value of shares in Goldman’s basket has risen by 96%, against the Tokyo stockmarket’s rise of 13%.” —Economist, April 15 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… “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 boys in the school For a number of observers, we have already entered the age of ‘womenomics,’ the economy as thought out and practiced by a woman.” —Aude Zieseniss de Thuin, Financial Times, 10.03.2006 system. “AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” TITLE/ Special Report/ BusinessWeek Women Leaders’ Time Has Come … Project team (old): 23 people, all from our company (More or less amenable to “orders”) Project team (new): 43 people from 7 companies in 4 countries on 3 continents (Moved only by effective persuasion and development of common commitment) “Worker,” circa 1982: Rote work, incl. most white-collar work (Amenable to “orders,” power exercised directly) “Worker,” circa 2007: Project work, team work, mixedgroup work, creative work, co-creation with client— microprocessors do the “rote stuff” (Commitment is voluntary, leadership is by developing positive relationships, inducing “creatives” to stretch, power exercised indirectly) “So ….” TP: “Okay, okay, you got me. ExCom, at start, 2F of 11, 18months later, 9F of 18.” CEO/F: 10 UNASSAILABLE REASONS WOMEN RULE Women make [all] the financial decisions. Women control [all] the wealth. Women [substantially] outlive men. Women start most of the new businesses. Women’s work force participation rates have soared worldwide. Women are closing in on “same pay for same job.” Women are penetrating senior ranks rapidly [even if the pace is slow for the corner office per se]. Women’s leadership strengths are exceptionally well aligned with new organizational effectiveness imperatives. Women are better salespersons than men. Women buy [almost] everything—commercial as well as consumer goods. So what exactly is the point of men? Who buys “it” II: Sunrise for old folks! 2000-2010 Stats 18-44: -1% 55+: +21% (55-64: +47%) !!!!!!!!!!!!!!!!! “People turning 50 more than half of today have their adult life ahead of them.” —Bill Novelli, 50+: Igniting a Revolution to Reinvent America “gurugate”: The Gurus’ fixation with “the wrong stuff”* *Not “they,” but “us.” Over-rated: Big companies! Public companies! “Cool” industries! Stability (“Built to last”)! Famous CEOs! Over-rated: Big companies! Public companies! “Cool” industries! Stability (“Built to last”)! Famous CEOs! You don’t get better by being bigger. You get worse.” Dick Kovacevich: “Mr. Foster and his McKinsey colleagues collected detailed performance data stretching back 40 years for 1,000 U.S. companies. They none found that of the longterm survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did.” —Financial Times “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 #4 Japan #2T china #2t USA #1 Germany Reason!!! Mittelstand Over-rated: Big companies! Public companies! “Cool” industries! Stability (“Built to last”)! Famous CEOs! Family Businesses Two-thirds of total #s of companies One-half of biggest companies >One-half GDP >One-half employment 6% more profitable 7% better ROA Higher income growth Higher revenue growth Source: John Davis, HBS Over-rated: Big companies! Public companies! “Cool” industries! Stability (“Built to last”)! Famous CEOs! Jim’s Group Jim’s Mowing Canada Jim’s Mowing UK Jim’s Antennas Jim’s Bookkeeping Jim’s Building Maintenance Jim’s Carpet Cleaning Jim’s Car Cleaning Jim’s Computer Services Jim’s Dog Wash Jim’s Driving School Jim’s Fencing Jim’s Floors Jim’s Painting Jim’s Paving Jim’s Pergolas [gazebos] Jim’s Pool Care Jim’s Pressure Cleaning Jim’s Roofing Jim’s Security Doors Jim’s Trees Jim’s Window Cleaning Jim’s Windscreens Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group Over-rated: Big companies! Public companies! “Cool” industries! Stability (“Built to last”)! Famous CEOs! “Natural selection is death. ... Without huge amounts of death, organisms do not change over time. ... Death is the mother of structure. ... It took four billion years of death ... to invent the human mind ...” — The Cobra Event Over-rated: Big companies! Public companies! “Cool” industries! Stability (“Built to last”)! Famous CEOs! Mission impossible? $36B/’98 minus $675M/‘07 Market capitalization lost per day, 19982007: $10,000,000/Day *Lived in same town all adult life *First generation that’s wealthy/ no parental support *“Don’t look like millionaires, don’t dress like millionaires, don’t eat like millionaires, don’t act like millionaires” *“Many of the types of businesses [they] are in could be classified as ‘dull-normal.’ [They] are welding contractors, auctioneers, scrap-metal dealers, lessors of portable toilets, dry cleaners, re-builders of diesel engines, paving contractors …” Source: The Millionaire Next Door, Thomas Stanley & William Danko Over-rated: Big companies! Public companies! “Cool” industries! Stability (“Built to last”)! Famous CEOs! The “Fabulous Five”: *SMEs! *Private companies! *“Dull” industries! *Productive churn: Built to Rock the World! *Laudable CEOs! And in conclusion … Sir Richard’s Rules: Follow your passions. Keep it simple. Get the best people to help you. Re-create yourself. Play. Source: Fortune on Branson The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo And in conclusion … The Common CEO Lament: “If everything had been good, then everything would have been fine.”* *Annual Reports: Good, “Our strategy … Bad, “Unexpected …” Black Swans: This is how you earn your pay!* ** *See: The Black Swan: The Impact of the Highly Improbable, Nassim Nicholas Taleb *WSC: “When the seas are calm all ships alike show mastership in sailing.” #14/14 “Excellence can be obtained if you: ... care more than others think is wise; ... risk more than others think is safe; ... dream more than others think is practical; ... expect more than others think is possible.” Source: Anon. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM) If Not Excellence, What? bonus The Eight Basics of Excellence: Two Points of View One: A bias for action: a preference for doing something anything - rather than sending a question through cycles and cycles of analyses and committee reports. One: A bias for action: a preference for doing something anything - rather than sending a question through cycles and cycles of analyses and committee reports. Understanding that experimentation (trial & error), not theory, is the bedrock of the scientific method and enterprise Excellence alike. Two: Staying close to the customer – learning his preferences and catering to them. Two: Staying close to the customer – learning her preferences, catering to her needs, engaging her in a partnership, creating experiences for her that unleash the sustainability of loyalty and the power of word-of-mouth recommendation. Three: Autonomy and entrepreneurship - breaking the corporation into small companies and encouraging them to think independently and competitively. Three: Autonomy and entrepreneurship - breaking the corporation into small companies, and the company into small groups—and encouraging them all to think imaginatively, to “own” their part of the enterprise, and to be accountable for their results. Four: Productivity through people – creating in all employees the awareness that their best efforts are essential and that they will share in the rewards of the company’s success. Four: Productivity through people – practicing “servant leadership,” realizing that the leader’s job in pursuit of Excellence is first and last and foremost to develop unsurpassable competitive advantage through turned on, eternally growing, highly committed talent in every position. To a large extent, This Is Our Mission! Five: Hands-on, value driven – insisting that executives keep in touch with the firm’s essential business. Five: Hands-on, value driven – staying in close personal touch with the action and actors “on the ground,” no matter the distractions of other priorities, through daily MBWA/Managing By Wandering Around., Preaching and “living” the “Gospel” of Excellence. Six: Stick to the knitting – remaining with the business the company knows best. Six: Stick to the knitting – learning, growing, branching out, but favoring organic growth and not straying beyond the core competencies that are the basis of our sustainable Excellence. Seven: Simple form, lean staff – few administrative layers, few people at the upper levels. Seven: Simple form, lean staff – few administrative layers, few people at the upper levels, “employees” each acting as Brand You, constant pursuit of Excellence in Execution through Simplicity and Clarity and IntegrityCharacter. Eight: Simultaneous loose-tight properties – fostering a climate where there is dedication to the central values of the company combined with tolerance for all employees who accept those values. Eight: Simultaneous loose-tight properties – fostering a climate where there is dedication and “buy in” and excitement about the central values and the Ideal of Excellence throughout the enterprise, combined with a passion for constant growth and experimentation within or close to the bounds of those shared values. Doing “to” vs doing “with” Job “done well” vs “openended Quest for growth, full of surprises” “Motivate” vs “Engage” “Tolerance” vs “Expectation” “Director” vs “Servant” Unspecified vs “Excellence” “Him” vs “Her” Part II Excellence: The Leadership 50 Tom Peters/Global Leaders Gallagher Estate/12.03.2008 bedrock. 1. Leaders … serve. Organizations exist to serve. Period. Leaders live to serve. Period. The Basic Mechanism. 2. Leadership Is a Mutual Discovery Process. … “Ninety percent of what we call ‘management’ consists of making it difficult for people to get things done.” – Peter Drucker Organizing Genius / Warren Bennis and Patricia Ward Biederman “Groups become great only when everyone in them, leaders and members alike, is free to do his or her absolute best.” “The best thing a leader can do for a Great Group is to allow its members to discover their greatness.” Leaders’ “Mt Everest Test” “free to do his or her absolute best” … “allow its members to discover their greatness.” The Dream Manager —Matthew Kelly E.g.: “An organization can only become the-best-version-of-itself to the extent that the people who drive that organization are striving to become better-versions-of-themselves.” “A company’s purpose is to become the-best-version-of-itself. The question is: What is an employee’s purpose? Most would say, ‘to help the company achieve its purpose’—but they would be wrong. That is certainly part of the employee’s role, but an employee’s primary purpose is to become thebest-version-of-himself or –herself. … When a company forgets that it exists to serve customers, it quickly goes out of business. Our employees are our first customers, and our most important customers.” Quests! Cause Space (worthy of commitment) (room for/encouragement for initiative) Decency (respect, humane) Cause Space (worthy of commitment) (room for/encouragement for initiative-adventures) Decency (respect, grace, integrity, humane) service (worthy of our clients’ & extended family’s continuing custom) excellence (period) Cause Space Decency service (worthy of commitment) (room for/encouragement for initiative-adventures) (respect, grace, integrity, humane) (worthy of our clients’ & extended family’s continuing custom) excellence servant leadership (period) Cause Space Decency service excellence servant leadership “I have always believed that the purpose of the corporation is to be a blessing to the employees.” * —Boyd Clarke *TP: An “organization” is, in fact and after all is said and done, a/the “house” in which most of us “live” most of the time. 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 … 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. Organizations Exist to Serve. Period. Leaders Live to Serve. Period. Passionate servant leaders, determined to create a legacy of earthshaking transformation in their domain (a 600SF retail space, a 4-person training department, an urban school, a rural school, a city, a nation), create/ must necessarily create organizations which are no less than Cathedrals in which the full and awesome power of the Imagination and Spirit and native Entrepreneurial flair (We are all entrepreneurs—Muhammad Yunus) of diverse individuals (100% creative Talent—from checkout to lab, from Apple to Wegmans to Jane’s one-person accountancy in is unleashed in passionate pursuit of jointly perceived soaring purpose (= win a Nobel peace Invercargill NZ) prize like Yunus, or at least do something worthy of bragging about 25 years from and personal and community and client service Excellence. now to your grandkids) Such Talent unbound pursue Quests (rapidly and relentlessly experimenting and failing and trying which surprise and surpass and redefine the expectations of the individual and the servant leader alike. The collective “products” of these Quests offer the best chance of achieving rapid organizational and individual adaptation to fast-transforming environments, and provide the nutrition for continuing (and sometimes dramatic) reimaginings which re-draw the boundaries of industries and communities and human achievement and the very conception of what is possible. again) In turn, such organizations, bent upon excellence and re-imaginings based on maximizing human creativity and achievement, will automatically create cadres of imaginative and inspiring and determined servant leaders who stick around to take the organization to another level, and then another—or, equally or more important, leave to spread the virus of Freedom-CreativityExcellence-Transforming Purpose by pathfinding new streets, highways and alleyways which vitalize and revitalize, through creative destruction, Entrepreneurial Capitalism, which is the best hope for maximizing collective human Freedom, Happiness, Prosperity, Wellbeing—and, one prays, some measure of Peace on earth. … such organizations, bent upon excellence and re-imaginings based on maximizing human creativity and achievement … vitalize and revitalize, through creative destruction, Entrepreneurial Capitalism, which is the best hope for maximizing collective human Freedom, Happiness, Prosperity, Wellbeing—and, one prays, some measure of Peace on earth. Internal organizational excellence* ** = Deepest “Blue Ocean” *A “Blue ocean” is by definition very profitable … and will be quickly copied. “sustainable blue” (Internal organizational excellence) is far more difficult to copy. **Internal organizational excellence = “Brand inside” B(I) > B(O) “If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands [Yet] I came to see in my time at IBM that culture isn’t just one aspect of the game—it is the game.” of people is very, very hard. —Lou Gerstner, Who Says Elephants Can’t Dance The Leadership Types. 3. Great Leaders on White Horses Are Great Talent Developers (Type I Leadership) are the Bedrock Important – but of Organizations that Perform Over the Long Haul. Whoops: Jack didn’t have a vision! 4. But There Are Times When the “visionary” “Type” (Type II Leadership) Matters! “A leader is a dealer in hope.” —Napoleon 5. Find the “Businesspeople”! (Type III Leadership) I.P.M. (Inspired Profit Mechanic) 6. All Organizations Need … the Golden Leadership Triangle. The Golden Leadership Triangle: (1) Talent Fanatic … (2) Visionary … (3) Inspired Profit Mechanic. 7. Leadership Mantra #1: IT ALL DEPENDS! Renaissance Men are … a snare, a myth, a delusion! 8. The Leader Is Rarely/Never the Best Performer. The Leadership Dance. 9. Leaders … SHOW UP! MBWA “A body can pretend to care, but they can’t pretend to be there.” — Texas Bix Bender “It’s always showtime.” —David D’Alessandro, Career Warfare 10. Leaders … LOVE the MESS! “If things seem under control, you’re just not going fast enough.” —Mario Andretti 11. Leaders “We have a ‘strategic’ plan. It’s called doing things.” — Herb Kelleher “This is so simple it sounds stupid, but it is amazing how few oil people really understand that you only find oil if you drill wells. You may think you’re finding it when you’re drawing maps and studying logs, but you have to drill.” Source: The Hunters, by John Masters, Canadian O & G wildcatter 12. Leaders Re -do. Phil Crosby is an idiot! “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 13. BUT … Leaders Know When to Wait. Tex Schramm: The “too hard” box! 14. Leaders Are … Optimists. Hackneyed but none the less LEADERS SEE CUPS AS “HALF FULL.” true: “[Ronald Reagan] radiated an almost transcendent happiness.” Half-full Cups: —L ou Cannon 15. Leaders FOCUS! “Dennis, you need a … ‘To-don’t ’ List !” “I used to have a rule for myself that at any point in time I wanted to have in mind — as it so happens, also in writing, on a little card I carried around with me — the three big things I was trying to get done. Three. Not two. Not four. Not five. Not ten. Three.” — Richard Haass, The Power to Persuade “The one thing you need to know about sustained individual success: Discover what you don’t like doing and stop doing it.” —Marcus Buckingham, The One Thing You Need to Know 16. Leaders … Send V-E-R-Y Clear Signals About What’s Important! “Really Important Stuff”: Roger’s Rule of Three! Robinson/American Express Puckett/Hughes Olsen/Digital Mozilo/Countrywide Milliken/Milliken Welch/GE Danger: S.I.O. (Strategic Initiative Overload) If It Ain’t Broke … Break It. 17. Leaders … FORGET!/ Leaders … DESTROY! Forget>“Learn” “The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.” —Dee Hock “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 18. BUT … Leaders Have to Deliver, So They Worry About “Throwing the Baby Out with the Bathwater.” “Damned If You Do, Damned If You Don’t, Just Plain Damned.” Subtitle in the chapter, “Own Up to the Great Paradox: Success Is the Product of Deep Grooves/ Deep Grooves Destroy Adaptivity,” Liberation Management (1992) 19. Leaders … HONOR THE USURPERS. Saviors-in-Waiting Disgruntled Customers Upstart Competitors Rogue Employees Fringe Suppliers Source: Wayne Burkan, Wide Angle Vision 20. Leaders Make [Lots of] Mistakes – and MAKE NO BONES ABOUT IT! “Fail faster. Succeed sooner.” —David Kelley/IDEO 21. Leaders Make … BIG MISTAKES! “Reward excellent failures. Punish mediocre successes.” —Phil Daniels Create. 22. Leaders Know that THERE’S MORE TO LIFE THAN “LINE EXTENSIONS.” Leaders Love to … CREATE NEW MARKETS. “Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” —Peter Job, CEO, Reuters YESBANK* *Commerce Bank 23. Leaders … Make Their Mark / Do Stuff That Matters Leaders … “I never, ever thought of myself as a businessman. I was interested in creating things I would be proud of.” —Richard Branson 24. Leaders Push Their W-a-y Up the Valueadded Chain. Organizations … And the “M” Stands for … ? “Systems Integrator of choice.”/BW Gerstner’s IBM: (“Lou, help us turn ‘all this’ into that long-promised ‘revolution.’ ” ) IBM Global Services* Services Corp.): $55B (*Integrated Systems “Big Brown’s New Bag: UPS Traffic Manager for Corporate America” Aims to Be the —Headline/BW/2004 “Every project we undertake starts with ‘How can we do what has never been done before?’” the same question: —Stuart Hornery, Lend Lease 25. Leaders Push Past Service “Transactions” to … Scintillating Experiences. “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 Experience: “Rebel Lifestyle!” “What we sell is the ability for a 43year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.” Harley exec, quoted in Results-Based Leadership 26. Leaders LOVE the New Technology! Power Tools For Power Strategies/ ARD 40K 27. Needed? Type IV Leadership: Technology Dreamer-True Believer The Golden Leadership Quadrangle: (1) Talent Fanatic … (2) Visionary … (3) Inspired Profit Mechanic … (4) Technology DreamerTrue Believer. Talent. 28. Leaders … DO TALENT! ‘do’ “Leaders people. Period.” —Anon. Brand = Talent. 29. When It Comes TALENT to … Leaders Always Go Berserk! From “1, 2 or you’re out” [JW] to … “Best Talent in each industry segment to build best proprietary intangibles” [EM] Source: Ed Michaels, War for Talent 30. Leaders Listen. Leaders Consult. The “One line of code” Theorem: All we-“they”me want is (1) to be consulted, (2) to be taken seriously, (3) a tiny show of appreciation Passion. 31. Leaders … “Sell” PASSION! “People want to be part of something larger than themselves. They want to be part of something they’re really proud of, that they’ll fight for, sacrifice for , trust.” —Howard Schultz, Starbucks (IBD/09.05) “Create a ‘cause,’ not a ‘business.’ ” Gary Hamel: 32. Leaders Know: ENTHUSIASM BEGETS ENTHUSIASM! BZ: “I am a … Dispenser of Enthusiasm!” “Nothing is so contagious as enthusiasm.” —Samuel Taylor Coleridge 33. Leaders Are … in a Hurry “We don’t sell insurance We sell speed.” anymore. Peter Lewis, Progressive “Metabolic Management” 34. Leaders Focus on the SOFT STUFF! “Hard” is “soft.” “Soft” Is “hard.” Message: Leadership is all about love! [Passion, Enthusiasms, Appetite for Life, Engagement, Commitment, Great Causes & Determination to Make a Damn Difference, Shared Adventures, Bizarre Failures, Growth, Insatiable Appetite for Change.] The “Job” of Leading. 35. Leaders Know It’s ALL SALES ALL THE TIME. If you don’t LOVE SALES … find another life. (Don’t pretend you’re a “leader.”) 36. Leaders LOVE “POLITICS.” If you don’t LOVE POLITICS … find another life. (Don’t pretend you’re a “leader.”) All success is a Matter of implementation. All implementation is a matter of politics. 37. But … Leaders Also Break a Lot of China. Characteristics of the “Also rans”* “Minimize risk” “Respect the chain of command” “Support the boss” “Make budget” *Fortune, “Most Admired Global Corporations” 38. Leaders Give … RESPECT! “It was much later that I realized Dad’s secret. He gained respect by giving it. He talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a bishop or a He was seriously interested in who you were and what you had to say.” college president. Source: Sara Lawrence-Lightfoot, Respect Amen! “What creates trust, in the end, is the leader’s manifest respect for the followers.” — Jim O’Toole, Leading Change 39. Leaders Say “Thank You.” “The deepest human need to be appreciated.” need is the William James FLOWER FLOWER POWER POWER 40. Leaders Are … Curious. The Three Most Important Letters … WHY? 41. Leadership Is a… Performance. “It is necessary for the President to be the No. 1 actor.” nation’s FDR 42. Leaders … Are The Brand “You must be the change you wish to see in the world.” Gandhi “It’s always showtime.” —David D’Alessandro, Career Warfare 43. Leaders … GREAT STORY! Have a “A key – perhaps the key – to leadership is the effective communication of a story.” Howard Gardner Leading Minds: An Anatomy of Leadership “Leaders don’t just make products and make decisions. Leaders make meaning.” – John Seely Brown Leader Job 1 Paint Portraits of Excellence! Introspection. 44. Leaders … Enjoy Leading. “Tom, you left out one thing …” 45. Leaders LAUGH! 46. Leaders … KNOW THEMSELVES. Individuals (would-be leaders) cannot engage in a liberating mutual discovery process unless they are comfortable with their own skin. (“Leaders” who are not comfortable with themselves become petty control freaks.) Questions: What do others think of you? [Are you sure?] What do you think of you? [Are you sure?] What is your impact on others? [Are you sure?] What is your impact on others? [Are you sure?] What is your impact on others? [Are you sure?] What are the “little things” you (perhaps unconsciously) do that cause people to shrivel—or blossom? [Are you sure?] What do you want? [Are you sure?] Are you aware of your changing moods? [Are you sure?] How fragile is your ego? [Are you sure?] Do you have a true confidant? [Are you sure?] Do you perform brief or not-so-brief self-assessments? Do you talk too much? [Are you sure?] Do you know how to listen? [Are you sure?] Do you listen? [Are you sure?] What is your style of “hashing things out”? Are you perceived as (a) arrogant, (b) abrasive (c) attentive, (d) genuinely interested in people, (e) etc? [Are you sure?] Are you flexible? Have you changed your mind about anything important in a while? Are you comfortable-uncomfortable with folks on the front line? Do you think you’re “in touch with the pulse of things around here”? [Are You Sure?] Are you too emotional/intuitive? Are you too unemotional/rational? Do you spend much time with people who are new to you? [Do you think questions like this are “so much BS”?] 47. But … Leaders have MENTORS. Upon having the Leadership Mantle placed upon one’s head, he/she never shall hear the unvarnished truth again!* (*Therefore, she/he needs one faithful compatriot to lay it on with no jelly.) The End Game. 48. Leaders are … RELENTLESS. “This [adolescent] incident [of getting from point A to point B] is notable not only because it underlines Grant’s fearless horsemanship and his determination, but also it is the first known example of a very important Grant had an extreme, almost phobic dislike of turning back and retracing his steps. peculiarity of his character: If he set out for somewhere, he would get there somehow, whatever the difficulties that lay in his way. This idiosyncrasy would turn out to be one the factors that made him such a formidable general. Grant would always, always press on—turning back was not an option for him.” —Michael Korda, Ulysses Grant Relentless: “One of my superstitions had always been when I started to go anywhere or not to turn back , or stop, to do anything, until the thing intended was accomplished.” —Grant “Success seems to be largely a matter of hanging on after others have let go.” —William Feather, author 49. Leaders ???: “Leadership is the PROCESS of ENGAGING PEOPLE in CREATING a LEGACY of EXCELLENCE.” “LEADERS NEED TO BE THE ROCK OF GIBRALTAR ON ROLLER BLADES.” 50. Leaders Free the Lunatic Within! The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo 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 51. Leaders Relentlessly Pursue … Excellence “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) Excellence Is a Universal Striving. If Not Excellence, What? Part IiI people power: talent The 50 Tom Peters/Global Leaders Gallagher Estate/12.03.2008 “I have always believed that the purpose of the corporation is to be a blessing to the employees.” —Boyd Clarke 1. People First! “How to piss away $500,000 in one easy lesson!!” TP: < CAPEX > People! 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 2. “Soft” Is “Hard.” Excellence1982: The Bedrock “Eight Basics” 1. 2. 3. 4. 5. 6. 7. 8. A Bias for Action Close to the Customer Autonomy and Entrepreneurship Productivity Through People Hands On, Value-Driven Stick to the Knitting Simple Form, Lean Staff Simultaneous Loose-Tight Properties” 3. FUNDAMENTAL PREMISE: We Are in an Age of Talent/ Creativity/ Intellectual-capital Added. Agriculture Age (farmers) Industrial Age (factory workers) Information Age (knowledge workers) Conceptual Age (creators and empathizers) Source: Dan Pink, A Whole New Mind “Human creativity is the ultimate economic resource.” —Richard Florida, The Rise of the Creative Class 4. Talent “Excellence” in Every Part of Every Organization. Wegmans: #1/100 “Best Companies to Work for”/2005 5. Talent “Excellence” Stretches Far Beyond Our Borders. We become who we hang out with 1 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 6. P.O.T./ Pursuit Of Talent = OBSESSION. “The leaders of Great Groups love talent and know where to find it. They revel in the talent of others.” —Warren Bennis & Patricia Ward Biederman, Organizing Genius PARC’s Bob Taylor: “Connoisseur of Talent” 7. Talent Masters Understand Talent’s Intangibles. A Few Lessons from the Arts Each hired and developed and evaluated in unique ways (23 contributors = 23 unique contributions = 23 pathways = 23 personalities = 23 sets of motivators) Attitude/Enthusiasm/Energy paramount Re-lent-less! “Practice is cool” (G Leonard/Mastery) Team and individual Aspire to EXCELLENCE = Obvious Ex-e-cu-tion Talent = Brand = Duh “The Project” rules Emotional language Bit players. No. B.I.W. (everything) Delta events = Delta rosters (incl leader/s) 8. HR Is “Cool.” Chicago: HRMAC “support function” / “cost center” / “bureaucratic drag” or … Are you … “Rock Stars of the Age of Talent”? 9. HR Sits at The Head Table. A review of Jack and Suzy Welch’s Winning claims there are but two key differentiators that set GE “culture” apart from the herd: First: Separating financial forecasting and performance measurement. Performance measurement based, as it usually is, on budgeting leads to an epidemic of gaming the system. GE’s performance measurement is divorced from budgeting—and instead reflects how you do relative to your past performance and relative to competitors’ performance; i.e., it’s about how you actually do in the context of what happened in the real world, not as compared to a gamed-abstract plan developed last year. Putting HR on a par with finance and marketing. Second: 10. Re-name “HR.” Talent Department “H.R.” to “H.E.D.” ??? Human Enablement Department People Department Center for Talent Excellence Seriously Cool People Who Recruit & Develop Seriously Cool People Etc. 11. There Is an “HR Strategy”/ “HR Vision” EVP/ IBP?* What’s your company’s … *Employee Value Proposition, per Ed Michaels et al., The War for Talent; IBP/Internal Brand Promise per TP EVP/IBP = Remarkable challenge, rapid professional growth, respect, satisfaction, fun, stunning opportunity, exceptional reward, amazing peer group, full membership in Club Adventure, maximized future employability Source: Ed Michaels, The War for Talent; TP 12. Acquire for Talent! Omnicom's acquisitions: “not for “buying talent;” “deepen a size per se”; relationship with a client.” Source: Advertising Age 13. There Is a FORMAL Recruitment Strategy. “Busy Executives Fail To Give Recruiting Attention It Deserves” —Headline, WSJ, 1121.05 C O* *Chief talent acquisition Officer 14. There Is a FORMAL Leadership Development Strategy. Crotonville! DD: 0 to 60mph in a flash (months) 15. There Is a FORMAL STRATEGIC HR Review Process. “In most companies, the Talent Review Process is a farce. At GE, Jack Welch and his two top HR people visit each division for a day. They review the top 20 to 50 people by name. They talk about Talent Pool The Talent Review Process is a contact sport at GE; it has the intensity and the importance of the budget process at most companies.”—Ed Michaels strengthening issues. 16. “People”/ Talent” Reviews Are the FIRST Reviews. 17. HR Strategy = BUSINESS Strategy. Wegmans: #1/100 Best Companies to Work for 84%: Grocery stores “are all alike” 46%: additional spend if customers have an “emotional connection” to a grocery store rather than “are satisfied” (Gallup) “Going to Wegmans is not just shopping, it’s an event.” —Christopher Hoyt, grocery consultant “You cannot separate their strategy as a retailer from their strategy as an employer.” —Darrell Rigby, Bain & Co. Cirque du Soleil! 18. Make it a “Cause Worth Signing Up For.” “People want to be part of something larger than themselves. They want to be part of something they’re really proud of, that they’ll fight for, sacrifice for , trust.” —Howard Schultz, Starbucks (IBD/09.05) 19. Unleash “Their” Full Potential! “We are a ‘Life Success’ Company.” Dave Liniger, founder, RE/MAX “No matter what the situation, [the great manager’s] first response is always to think about the individual concerned and how things can be arranged to help that individual experience success.” —Marcus Buckingham, The One Thing You Need to Know 20. Set Sky High Standards. “The role of the Director is to create a space where the actors and become more than they’ve ever been before, more than they’ve dreamed of being.” actresses can —Robert Altman, Oscar acceptance speech 21. Enlist Everyone in Challenge Century21. “If there is nothing very special about your work, no matter how hard you apply yourself you won’t get noticed, and that increasingly means you won’t get paid much either.” —Michael Goldhaber, Wired Distinct … … or Extinct 22. Pursue the Best! “We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia- Pacific … changed 20 of his 40 box plant managers to put more talented, higher paid managers in charge. He increased profitability from $25 million to $80 million in —Ed Michaels, War for Talent 2 years.” 23. Up or Out. 24. Ensure that the Review Process Has INTEGRITY. 25 = 100* * “But what do I do that’s more important than developing people? I don’t do the damn work. They do.”—GK 25. Pay Up! “Top performing companies are two to four times more likely than the rest to pay what it takes prevent losing top performers.” to —Ed Michaels, War for Talent 26. Training I: Train! Train! Train! 27. Training II: 100% “Business People.” New Work SurvivalKit.2008 1. MASTERY! (Best/Absurdly Good at Something!) 2. “Manage” to Legacy (All Work = “Memorable”/“Braggable” WOW Projects!) 3. A “USP”/UNIQUE SELLING PROPOSITION 4. Rolodex Obsession (From vertical/hierarchy/“suck up” loyalty to horizontal/“colleague”/“mate” loyalty) 5. ENTREPRENEURIAL INSTINCT (A sleepless … Eye for Opportunity! 6.CEO/LEADER/BUSINESSPERSON/CLOSER (CEO, Me Inc. 24/7!) 7. Master of Improv (Play a dozen parts simultaneously, from Chief Strategist to Chief Toilet Scrubber) 8. Sense of Humor (A willingness to Screw Up & Move On) 9. Comfortable with Your Skin (Bring “interesting you” to work!) 10. Intense Appetite for Technology (E.g.: How Cool-Active is your Web site? Do you Blog?) 11. EMBRACE “MARKETING” (Your own CSO/Chief Storytelling Officer) 12. PASSION FOR RENEWAL (Your own CLO/Chief Learning Officer) 13. EXECUTION EXCELLENCE! (Show up on time! Leave last!) 28. Training III: 100% LEADERS. 29. Training IV: Boss as Trainerin-Chief. “Workout” = 24 DPY in the Classroom 30. Training V: The REAL Bedrock of the “Talent Thing.” “My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding refrigerator artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How could any child—let alone our child—receive a poor grade in art at such His teacher informed us that he had refused to color within the lines, which was a state requirement for demonstrating ‘grade-level motor skills.’ ” —Jordan Ayan, AHA! a young age? 31. Wide-open Communication: NO BARRIERS. “The organizations we created have become tyrants. They have taken control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls that no one can scale or penetrate or even peer over.” —Frank Lekanne Deprez & René Tissen, Zero Space: Moving Beyond Organizational Limits 32. RESPECT! “What creates trust, in the end, is the leader’s manifest respect for the followers.” — Jim O’Toole, Leading Change “Don’t belittle!” —OD Consultant 33. Embrace the Whole Individual. 34. Build Places of “Grace.” Rodale’s on “Grace” … elegance … charm … loveliness … poetry in motion … kindliness ... benevolence … benefaction … compassion … beauty The Manager’s Book of Decencies: How Small gestures Build Great Companies. —Steve Harrison, Adecco Servant Leadership —Robert Greenleaf One: The Art and Practice of Conscious Leadership —Lance Secretan, founder of Manpower, Inc. 35. MBWA: Visible Leadership! 36. Thank You! “Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” —Henry Clay 37. Promote for “people skills.” (THE REST IS DETAILS.) “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?” Bossidy, Honeywell/AlliedSignal, in Execution —Larry 38. Honor Youth. “Why focus on these late teens and twentysomethings? Because they are the first young who are both in a position to change the world, and are actually doing so. … For the first time in history, children are more comfortable, knowledgeable and literate than their parents about an innovation central to society. … The Internet has triggered the first industrial revolution in history to be led by the young.” The Economist 39. Provide Early Leadership Assignments. The WOW! Project 40. Create a FORMAL System of Mentoring. W. L. Gore Quad/Graphics 41. Diversity! CM Prof Richard Florida on “Creative “You cannot get a technologically innovative place … unless it’s open to weirdness, eccentricity and difference.” Capital”: Source: New York Times/06.01.2002 42. WOMEN RULE. “AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” TITLE/ Special Report/ BusinessWeek Women’s Strengths Match New Economy Imperatives: Link [rather than rank] workers; favor interactive-collaborative leadership style [empowerment beats 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. —Judy B. Rosener, America’s Competitive Secret: Women Managers Period??!!* Start: 3 0f 14 18 months later: 10 of 18 (“deep dip”!) *AIM/September 2007 “Forget China, India and the Internet: Economic Growth Is Driven by Women.” —Headline, Economist, April 15, 2006, Leader, page 14 10 UNASSAILABLE REASONS WOMEN RULE Women make [all] the financial decisions. Women control [all] the wealth. Women [substantially] outlive men. Women start most of the new businesses. Women’s work force participation rates have soared worldwide. Women are closing in on “same pay for same job.” Women are penetrating senior ranks rapidly [even if the pace is slow for the corner office per se]. Women’s leadership strengths are exceptionally well aligned with new organizational effectiveness imperatives. Women are better salespersons than men. Women buy [almost] everything—commercial as well as consumer goods. So what exactly is the point of men? 43. Hire (& Protect!) Weird! “Are there enough weird people in the lab these days?” —V. Chmn., pharmaceutical house, to a lab director Why Do I love Freaks? (1) Because when Anything Interesting happens … it was a freak who did it. (Period.) (2) Freaks are fun. (Freaks are also a pain.) (Freaks are never boring.) (3) We need freaks. Especially in freaky times. (Hint: These are freaky times, for you & me & the CIA & the Army & Avon.) (4) A critical mass of freaks-in-our-midst automatically make us-who-are-not-so-freaky at least somewhat more freaky. (Which is a Good Thing in freaky times—see immediately above.) (5) Freaks are the only (ONLY) ones who succeed—as in, make it into the history books. (6) Freaks keep us from falling into ruts. (If we listen to them.) (We seldom listen to them.) (Which is why most organizations are in ruts. Make that chasms.) 44. We Are All Unique. One size NEVER fits all. One size fits Beware Standardized Evals: one. Period. “Never, ever again will I evaluate anyone using a standardized instrument devised by a “professional” in inhuman Resources.” Promise #1: 53 Players = 53 Projects = 53 different success measures. “Things don’t stay the same. You have to understand that not only your business situation changes, but the people you’re working with aren’t the same day to day. Someone is sick. Someone is having a wedding. [You must] gauge the mood, the thinking level of the team that day.” —Coach K [Krzyzewski] 220 workdays = 220 “rosters” Source: Coach K new goal … every game! Source: Coach K 45. Capitalize on Strengths. “The key difference between checkers and chess is that in checkers the pieces all move the same way, whereas in chess all the pieces move differently. … Discover what is unique about each person and capitalize on it.” —Marcus Buckingham, The One Thing You Need to Know “The mediocre manager believes that most things are learnable and therefore that the essence of management is to identify ach person’s weaker areas and eradicate them. The great manager believes the opposite. He believes that the most influential qualities of a person are innate and therefore that the essence of management is to deploy these innate qualities as effectively as possible and so drive performance.” —Marcus Buckingham, The One Thing You Need to Know 46. Bosses “Win People Over.” “Coaching is winning players over.” PJ: 47. GOAL: Voyages of Mutual Discovery. “The organization would ultimately win not because it gave agents more money, but because it gave them a chance for better lives.” —Everybody Wins, Phil Harkins & Keith Hollihan Quests! C O* *Chief quest-meister 48. Foster Independence. “You must realize that how you invest your human capital matters as much as how you invest your financial capital. Its rate of return determines your future options. Take a job for what it teaches you, not for what it pays. Instead of a potential employer asking, ‘Where do you see yourself in 5 years?’ you’ll ask, ‘If I invest my mental assets with you for 5 years, how much will they appreciate? How much will my portfolio of career options grow?’ ” Source: Stan Davis & Christopher Meyer, futureWEALTH 49. En- thus-iasm! “I am a dispenser of enthusiasm.” —Ben Zander 50. Talent = Brand. The Top 5 “Revelations” Better talent wins. Talent management is my job as leader. Talented leaders are looking for the moon and stars. Over-deliver on people’s dreams – they are volunteers. Pump talent in at all levels, from all conceivable sources, all the time. Source: Ed Michaels et al., The War for Talent BRAND = TALENT. Part Iv Tom peters on implementation 19 January 2008 “Never forget implementation , boys. In our work, it’s what I call the ‘last 98 percent’ of the client puzzle.” —Al McDonald, former Managing Director, McKinsey & Co, to a project team, reported by subsequent McKinsey MD, Ron Daniel 1. The “Have you …” 50 “Mapping your competitive position” or … While waiting last week [early December 2007] in the Albany airport to board a Southwest Airlines flight to Reagan, I happened across the latest Harvard Business Review, on the cover of which was a yellow sticker. The sticker had on it the words “Mapping your competitive position.” It referred to a feature article by my friend Rich D’Aveni. His work is uniformly good—and I have said as much publicly on several occasions dating back 15 years. I’m sure this article is good, too—though I didn’t read it. In fact it triggered a furious negative “Tom reaction” as my wife calls it. Of course I believe you should But instead of obsessing on competitive position and other abstractions, as the B-schools and consultants would always have us do, I instead wondered about some “practical stuff” which I believe is more important to the short- and long-term health of the enterprise, tiny or enormous. worry about your “competitive position.” “Unfortunately many leaders of major companies believe their job is to create the strategy, organization and organization processes—remaining aloof from the people doing the work.” —George Kohlrieser, Hostage at the Table (GK is, among other things, a hostage negotiator with a 95% success rate) 1. Have you in the last 10 days … visited a customer? 2. Have you called a customer … TODAY? 3. Have you in the last 60-90 days … had a seminar in which several folks from the customer’s operation (different levels, different functions, different divisions) interacted, via facilitator, with various of your folks? 4. Have you thanked a front-line employee for a small act of helpfulness … in the last three days? 5. Have you thanked a front-line employee for a small act of helpfulness … in the last three hours? 6. Have you thanked a frontline employee for carrying around a great attitude … today? 7. Have you in the last week recognized—publicly—one of your folks for a small act of cross-functional co-operation? 8. Have you in the last week recognized—publicly—one of “their” folks (another function) for a small act of cross-functional co-operation? 9. Have you invited in the last month a leader of another function to your weekly team priorities meeting? 10. Have you personally in the last week-month called-visited an internal or external customer to sort out, inquire, or apologize for some little or big thing that went awry? (No reason for doing so? If true—in your mind—then you’re more out of touch than I dared imagine.) 1. Have you in the last 10 days … visited a customer? 2. Have you called a customer … TODAY? Blog1231.07 FLASH! FLASH! FLASH! FOR IMMEDIATE ACTION! FOR IMMEDIATE ACTION! FOR IMMEDIATE ACTION! OLD YEAR’S RESOLUTION! Call (C-A-L-L!) (NOT E-MAIL!) 25-50 (NO LESS THAN 25) people … TODAY * …to thank them for their support this year (2007) … and wish them and their families and colleagues a Happy 2008! ** *** **** ***** ****** *Today = TODAY = N-O-W (not “within the hour”) **Remember: ROIR > ROI. ROIR = Return On Investment in Relationships. Success = f(Relationships). ***This is the most important piece of advice I have provided this year. ****This is … Not Optional. *****Trust me: This is fun!!!! ******Trust me: This “works.” Happy 2008!!! I posted this at tompeters.com on New Year’s Eve 2007. 11. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines concerning a project’s next steps? 12. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines concerning a project’s next steps … and what specifically you can do to remove a hurdle? (“Ninety percent of what we call management consists of making it difficult for people to get things done.”—Peter “His eminence” Drucker.) 13. Have you celebrated in the last week a “small” (or large!) milestone reached? (I.e., are you a milestone fanatic?) 14. Have you in the last week or month revised some estimate in the “wrong” direction and apologized for making a lousy estimate? (Somehow you must publicly reward the telling of difficult truths.) 15. Have you installed in your tenure a very comprehensive customer satisfaction scheme for all internal customers? (With major consequences for hitting or missing the mark.) 16. Have you in the last six months had a week-long, visible, very intensive visit-“tour” of external customers? 17. Have you in the last 60 days called an abrupt halt to a meeting and “ordered” everyone to get out of the office, and “into the field” and in the next eight hours, after asking those involved, fixed (f-i-x-e-d!) a nagging “small” problem through practical action? 18. Have you in the last week had a rather thorough discussion of a “cool design thing” someone has come across—away from your industry or function—at a Web site, in a product or its packaging? 19. Have you in the last two weeks had an informal meeting—at least an hour long—with a frontline employee to discuss things we do right, things we do wrong, what it would take to meet your mid- to long-term aspirations? 20. Have you had in the last 60 days had a general meeting to discuss “things we do wrong” … that we can fix in the next fourteen days? UniCredit Group/ UniCredito Italiano* ** —3rd party measurement —Customer-initiated measurement —Primary $$$$ incentives —“Factories” —Primary Corporate Initiative —Etc *#13 **TP/#1 The director of staff services at the giant financial services firm, UniCredit Group, installed the most thorough internal customer satisfaction measures scheme I have seen—with exceptional rewards for those who make the grade with their internal customers. 21. Have you had in the last year a one-day, intense offsite with each (?) of your internal customers—followed by a big celebration of “things gone right”? 22. Have you in the last week pushed someone to do some family thing that you fear might be overwhelmed by deadline pressure? 23. Have you learned the names of the children of everyone who reports to you? (If not, you have six months to fix it.) 24. Have you taken in the last month an interesting-weird outsider to lunch? 25. Have you in the last month invited an interesting-weird outsider to sit in on an important meeting? 26. Have you in the last three days discussed something interesting, beyond your industry, that you ran across in a meeting, reading, etc? 27. Have you in the last 24 hours injected into a meeting “I ran across this interesting idea in [strange place]”? 28. Have you in the last two weeks asked someone to report on something, anything that constitutes an act of brilliant service rendered in a “trivial” situation— restaurant, car wash, etc? (And then discussed the relevance to your work.) 29. Have you in the last 30 days examined in detail (hour by hour) your calendar to evaluate the degree “time actually spent” mirrors your “espoused priorities”? (And repeated this exercise with everyone on team.) 30. Have you in the last two months had a presentation to the group by a “weird” outsider? You = Your calendar* *Calendars never lie All we have is our time. The way we spend our time is our priorities, is our “strategy.” Your calendar knows what you really care about. Do you? 31. Have you in the last two months had a presentation to the group by a customer, internal customer, vendor featuring “working folks” 3 or 4 levels down in the vendor organization? 32. Have you in the last two months had a presentation to the group of a cool, beyond-our-industry ideas by two of your folks? 33. Have you at every meeting today (and forever more) re-directed the conversation to the practicalities of implementation concerning some issue before the group? 34. Have you at every meeting today (and forever more) had an end-of-meeting discussion on “action items to be dealt with in the next 4, 48 hours? (And then made this list public—and followed up in 48 hours.) And made sure everyone has at least one such item.) 35. Have you had a discussion in the last six months about what it would take to get recognition in local-national poll of “best places to work”? 36. Have you in the last month approved a cool-different training course for one of your folks? Have you in the last month taught a front-line training course? 37. 38. Have you in the last week discussed the idea of Excellence? (What it means, how to get there.) 39. Have you in the last week discussed the idea of “Wow”? (What it means, how to inject it into an ongoing “routine” project.) 40. Have you in the last 45 days assessed some major process in terms of the details of the “experience,” as well as results, it provides to its external or internal customers? 41. Have you in the last month had one of your folks attend a meeting you were supposed to go to which gives them unusual exposure to senior folks? 42. Have you in the last 60 (30?) days sat with a trusted friend or “coach” to discuss your “management style”—and its long- and short-term impact on the group? 43. Have you in the last three days considered a professional relationship that was a little rocky and made a call to the person involved to discuss issues and smooth the waters? (Taking the “blame,” fully deserved or not, for letting the thing-issue fester.) 44. Have you in the last … two hours … stopped by someone’s (two-levels “down") officeworkspace for 5 minutes to ask “What do you think?” about an issue that arose at a more or less just completed meeting? (And then stuck around for 10 or so minutes to listen—and visibly taken notes.) 45. Have you … in the last day … looked around you to assess whether the diversity pretty accurately maps the diversity of the market being served? (And …) 46. Have you in the last day at some meeting gone out of your way to make sure that a normally reticent person was engaged in a conversation—and then thanked him or her, perhaps privately, for their contribution? 47. Have you during your tenure instituted very public (visible) presentations of performance? 48. Have you in the last four months had a session specifically aimed at checking on the “corporate culture” and the degree we are true to it—with all presentations by relatively junior folks, including front-line folks? (And with a determined effort to keep the conversation restricted to “real world” “small” cases—not theory.) 49. Have you in the last six months talked about the Internal Brand Promise? 50. Have you in the last year had a full-day off site to talk about individual (and group) aspirations? 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. R.O.I.R. Return On Investment In Relationships Job One. “You must care.” —General Melvin Zais “Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” —Henry Clay 2. The “XF-50”: 50 Ways to Enhance CrossFunctional Effectiveness and Deliver Speed, “Service Excellence” and “Valueadded Customer ‘Solutions’” X =XFX* *Excellence = Cross-functional Excellence A 2007 letter from John Hennessy, president of (1) Stanford University, to alumni laid out his long-term “vision” for that esteemed institution. The core of the vision’s promise was more multi-disciplinary research, aimed at solving some of the world’s complex systemic problems. (2) The chief of GlaxoSmithKline, a few years ago, announced a “revolutionary” new drug discovery process—human-scale centers of interdisciplinary excellence, called Centers of Excellence in Drug Discovery. (It worked.) (3) Likewise, amidst a study of organization effectiveness in the oil industry’s exploration sector, I came across a particularly successful firm—one key to that success was their physical and organizational mingling of formerly warring (two sets of prima donnas) geologists and geophysicists. (4) The cover story in Dartmouth Medicine, the Dartmouth med school magazine, featured a “revolutionary” approach, “microsystems,” as “the big idea that [might] save U.S. healthcare.” The nub is providing successful patient outcomes in hospitals by forming multi-function patient-care teams, including docs, nurses, labtechs and others. (“Co-operating doc” may top the oxymoron scale.) (5) One of the central responses to 911 is an effort to get intelligence services, home to some of the world’s most viscous turf wars, talking to one another—we may have seen some of the fruits of that effort in the recently released National Intelligence Estimate. And in the military, inter-service co-operation has increased by an order of magnitude since Gulf War One—some of the services’ communication systems can actually be linked to those of other services, a miracle almost the equal of the Christmas miracle in my book! 1. It’s our organization to make work—or not. It’s not “them,” the outside world that’s the problem. The enemy is us. Period. 2. Friction-free! Dump 90% of “middle managers”—most are advertent or inadvertent “power freaks.” We are all—every one of us—in the Friction Removal Business, one moment at a time, now and forevermore. 3. No “stovepipes”! “Stove-piping,” “Silo-ing” is an Automatic Firing Offense. Period. No appeals. (Within the limits of civility, somewhat “public” firings are not out of the question—that is, make one and all aware why the axe fell.) 4. Everything on the Web. This helps. A lot. (“Everything” = Big word.) 5. Open access. All available to all. Transparency, beyond a level that’s “sensible,” is a de facto imperative in a Burn-the-Silos strategy. Project managers rule!! Project managers running XF (crossfunctional) projects are the Elite of the organization, and seen as such and treated as such. (The likes of construction companies have practiced this more or less forever.) 6. 7. “Value-added Proposition” = Application of integrated resources. (From the entire supplychain.) To deliver on our emergent business raison d’etre, and compete with the likes of our Chinese and Indian brethren, we must co-operate with anybody and everybody “24/7.” IBM, UPS and many, many others are selling far more than a product or service that works—the new “it” is pure and simple a product of XF co-operation; “the product is the co-operation” is not much of a stretch. “We have met the enemy and he is us.” — Walt Kelly/“Pogo” Schlumberger! A January 2008 BusinessWeek cover story informed us that Schlumberger may well take over the world: “THE GIANT STALKING BIG OIL: How Schlumberger Is Rewriting the Rules of the Energy Game.” In short, Schlumberger knows how to create and run oilfields, anywhere, from drilling to fullscale production to distribution. And the nugget is hardcore, relatively small, technically accomplished, highly autonomous teams. As China and Russia, among others, make their move in energy, state run companies are eclipsing the major independents. (China’s state oil company just surpassed Exxon in market value.) At the center of it all, abetting these new players who are edging out the Exxons and BPs, the Kings of Large-scale, Long-term Project Management wear Schlumberger overalls. (The pictures in the article from Siberia alone are worth the cover price.) At the center of the center of the Schlumberger “empire” is a relatively newly configured outfit, reminiscent of IBM’s Global Services and UPS’ integrated logistics’ experts and even Best Buy’s now ubiquitous “Geek Squads.” The Schlumberger version is simply called IPM, for Integrated Project Management. It lives in a nondescript building near Gatwick Airport, and its chief says it will do “just about anything an oilfield owner would want, from drilling to production”—that is, as BusinessWeek put it, “[IPM] strays from [Schlumberger’s] traditional role as a service provider* and moves deeper into areas once dominated by the majors.” (*My old pal was solo on remote offshore platforms interpreting geophysical logs and the like.) 8. “XF work” is the direct work of leaders! 9. “Integrated solutions” = Our “Culture.” (Therefore: XF = Our culture.) 10. Partner with “best-in-class” only. Their pursuit of Excellence helps us get beyond petty bickering. An all-star team has little time for anything other than delivering on the (big) Client promise. 11. All functions are created equal! All functions contribute equally! All = All. 12. All functions are “PSFs,” Professional Service Firms. “Professionalism” is the watchword—and true Professionalism rise above turf wars. You are your projects, your legacy is your projects—and the legacy will be skimpy indeed unless you pass, with flying colors, the “works well with others” exam! 13. We are all in sales! We all (a-l-l) “sell” those Integrated Client Solutions. Good salespeople don’t blame others for screw-ups—the Clint doesn’t care. Good salespeople are “quarterbacks” who make the system work-deliver. 14. We all invest in “wiring” the Client organization—we develop comprehensive relationships in every part (function, level) of the Client’s organization. We pay special attention to the so-called “lower levels,” short on glamour, long on the ability to make things happen at the “coalface.” 15. We all “live the Brand”—which is Delivery of Matchless Integrated Solutions which transform the Client’s organization. To “live the brand” is to become a raving fan of XF co-operation. C(I)>C(E)* *Internal customer relations [C(I)] are perhaps-often more important than external relationships [C(E)]. That is, if you Internal Relationships are excellent, you’ll have your whole company working for you to get your jobs to the head of the queue. 16. We use the word “partner” until we want to barf! (Words matter! A lot!) 17. We use the word “team” until we want to barf. (Words matter! A lot!) 18. We use the word “us” until we want to barf. (Words matter! A lot!) 19. We obsessively seek Inclusion—and abhor exclusion. We want more people from more places (internal, external—the whole “supply chain”) aboard in order to maximize systemic benefits. 20. Buttons & Badges matter—we work relentlessly at team (XF team) identity and solidarity. (“Corny”? Get over it.) 21. All (almost all) rewards are team rewards. 22. We keep base pay rather low—and give whopping bonuses for excellent team delivery of “seriously cool” cross-functional Client benefits. WE NEVER BLAME OTHER PARTS OF THE ORGANIZATION FOR SCREWUPS. 24. WE TAKE THE HEAT—THE WHOLE TEAM. (For anything and everything.) (Losing, like winning, is a team affair.) 25. “BLAMING” IS AN AUTOMATIC FIRING OFFENSE. 23. 26. “Women rule.” Women are simply better at the XF communications stuff—less power obsessed, less hierarchically inclined, more group-team oriented. Women’s Negotiating Strengths *Ability to put themselves in their counterparties’ shoes *Comprehensive, attentive and detailed communication style *Empathy that facilitates trust-building *Curious and attentive listening *Less competitive attitude *Strong sense of fairness and ability to persuade *Proactive risk manager *Collaborative decision-making Source: Horacio Falcao, Cover story/May 2006, World Business, “Say It Like a Woman: Why the 21st-century negotiator will need the female touch” Women’s Strengths Match New Economy Imperatives: Link [rather than rank] workers; favor interactive-collaborative 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. —Judy B. Rosener, America’s Competitive Secret: Women Managers “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?” Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson 27. Every member of our team is an honored contributor. “XF project Excellence” is an “all hands” affair. 28. We are our XF Teams! XF project teams are how we get things done. 29. “Wow Projects” rule, large or small—Wow projects demand by definition XF Excellence. 30. We routinely attempt to unearth and then reward “small gestures” of XF cooperation. 31. We invite Functional Bigwigs to our XF project team reviews. 32. We insist on Client team participation—from all functions of the Client organization. 33. An “Open talent market” helps make the projects “silo-free.” People want in on the project because of the opportunity to do something memorable—no one will tolerate delays based on traditional functional squabbling. 34. Flat! Flat = Flattened Silos. Flat = Excellence based on XF project outcomes, not power-hoarding within functional boundaries. 35. New “C-level”? We more or less need a “C-level” job titled Chief Bullshit Removal Officer. That is, some kind of formal watchdog whose role in life is to make cross-functionality work, and I.D. those who don’t get with the program. 36. Huge (H-U-G-E) co-operation bonuses. Senior team members who conspicuously shine in the “working together” bit are rewarded or punished Big Time. (A million bucks in one case I know—and a noncooperating very senior was sacked.) James Robinson III: $500K (on the spot, collaboration) Alan Puckett: Fire the best! (failure to collaborate) 37. Get physical!! “Co-location” is the most powerful “culture changer. Physical X-functional proximity is almost a guarantee (yup!) of remarkably improved cooperation—to aid this one needs flexible workspaces that can be mobilized for a team in a flash. 38. Ad hoc. To improve the new “X-functional Culture,” little XF teams should be formed on the spot to deal with an urgent issue—they may live for but ten days, but it helps the XF habit, making it normal to be “working the XF way.” 39. “Deep dip.” Dive three levels down in the organization to fill a senior role with some one who has been pro-active on the XF dimension. 40. Formal evaluations. Everyone, starting with the receptionist, should have an important XF rating component in their evaluation. 41. Demand XF experience for, especially, senior jobs. The military requires all would-be generals and admirals to have served a full tour in a job whose only goals were cross-functional. Great idea! 42. Early project “management” experience. Within days, literally, of coming aboard folks should be “running” some bit of a project, working with folks from other functions—hence, “all this” becomes as natural as breathing. 43. “Get ’em out with the customer.” Rarely does the accountant or bench scientist call one the customer. Reverse that. Give everyone more or less regular “customer-facing experiences.” One learns quickly that the customer is not interested in our in-house turf battles! 44. Put “it” on the–every agenda. XF “issues to be resolved” should be on every agenda—morning project team review, weekly exec team meeting, etc. A “next step” within 24 hours (4?) ought to be part of the resolution. 45. XF “honest broker” or ombudsman. The ombudsman examines XF “friction events” and acts as Conflict Resolution Counselor. (Perhaps a formal conflict resolution agreement?) 46. Lock it in! XF co-operation, central to any value-added mission, should be an explicit part of the “Vision Statement.” 47. Promotions. Every promotion, no exceptions, should put XF Excellence in the top 5 (3?) evaluation criteria. 48. Pick partners based on their “co-operation proclivity.” Everyone must be on board if “this thing” is going to work; hence every vendor, among others, should be formally evaluated on their commitment to XF transparency—e.g., can we access anyone at any level in any function of their organization without bureaucratic barriers? 49. Fire vendors who don’t “get it”—more than “get it,” welcome “it” with open arms.” 50. Jaw. Jaw. Jaw. Talk XF cooperation-value-added at every opportunity. Become a relentless bore! Excellence! There is a state of XF Excellence per se. Talk about it. Pursue it. Aspire to nothing less. 51. X =XFX* *Excellence = Cross-functional Excellence “C-levels” to Abet Cross-functional Excellence CGRO/Chief Grunge Removal Officer CXFCO/Chief Cross-functional Communication Officer CIS-CDO/Chief Information Sharing & Common Database Officer CHRO(PL) /Chief Human resources Officer (Project Managers, Love and Care of) CPMFO/Chief Project Management Finance Officer CTAO/Chief Team-space Assignments Officer CE(XFNC) /Chief Executioner (Cross-functional Non-cooperation!) CXFBPO/Chief Cross-functional Brownie-points Officer In We have “C-level” officers for any damn thing you can mention. So I thought I’d add my voice to the fray. If XF (Cross-functional) performance is a/the paramount issue for modern enterprise effectiveness (where one is bringing to bear the wherewithal of the entire enterprise to provide high-value, systemic “solutions” for customers), then XFX/Cross-functional excellence is necessarily priority #1. And we need an exec to lead the charge—try these job titles on for size! The “XF Bible” Building a Knowledge-driven Organization: Overcome Resistance to the Free Flow of Ideas. Turn Knowledge into New Products and Services. Move to a Knowledge-based Strategy —Robert Buckman The 180-degree “Middle Manager Flip” @ Buckman Labs … From: “information choke points” To: “knowledge transfer facilitators,” with 100% (!!!) of their rewards based on spurring co-operation across former barriers. Bob Buckman runs Buckman Labs, a half-billion dollar, Memphis-based specialty chemicals company. You might well roll your eyes at the overused “customer solutions” moniker—but Buckman does just that with panache and for profit, creating and applying chemical compounds in customized ways to deal with production and cleanup issues for specific customer facilities in the likes of the paper and leather-making industries. The devotion to custom “solutions” is the bedrock, the alpha to omega, of the firm’s extraordinary new-product and financial record. Those closer to the intellectual fray than me claim that Bob gets “inventor” rights in the now ubiquitous “knowledge management” arena. In any event, this book is the Buckman Labs saga in extraordinary detail—it is particularly valuable because it moves so far beyond the relatively easy softwaretechnology bit and emphasizes the way in which a company’s culture must be jerked around 180-degrees to destroy former functional barriers. E.g., middle managers, typically choke points guarding information and access to their domain, became “knowledge transfer facilitators,” with 100% (!!!) of their rewards based on spurring co-operation across former barriers. 3. The Checklist: The Power of a “Blinding Flash of the Obvious”! Tom Peters/11 December 2007 Hospital (patient safety) problems are a bad joke— killing us in America alone at a rate far in excess of 100,000 per year. In the home [U.S.] of the world’s sexiest acute-care equipment, often the fix is as lowtech as it gets. E.g., concocting and then religiously using (pilot-like) the humble paper checklist. The idea came to Johns Hopkins doc Peter Pronovost. In short, it has revolutionary impact, as some of the figures in this brief presentation suggest. Humans being humans, and brittle professionals (docs) being brittle professionals, the widespread implementation has been far slower than it needs to be or ought to be. But my purpose here is to endorse the simple ideas—a paper checklist in 2008—that can change the world. 90K in ICU on any given day 178 steps/day 50% “serious complication” Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07) **Peter Pronovost, Johns Hopkins, 2001 **Checklist, line infections **1/3rd at least one error **Nurses/permission to stop procedure **1 year/10-day line-infection rate: 11% to 0% (43 infections, 8 deaths, $2M saved) Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07) **Docs, nurses make own checklists on whatever process-procedure they choose **Within weeks, average stay in ICU down 50% Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07) **Replicate in Inner City Detroit (resource strapped—$$$, staff cut 1/3rd, poorest patients in USA) **Nurses QB **Project manager **Exec involvement (help with “little things”—it’s all “little things”) **Blues, small bonuses for participating **6 months, 66% decrease in infection rate; USA: bottom 25% to top 10% Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07) “[Pronovost] is focused on work that is not normally considered a significant contribution in academic medicine. As a result, few others are venturing to extend Yet his work has already saved more lives than that of any laboratory scientist in the last decade.” his achievements. —Atul Gawande, “The Checklist” (New Yorker, 1210.07) “Beware of the tyranny of making Small Changes to Small Things. Rather, make Big Changes to Things.” Big —Roger Enrico, former Chairman, PepsiCo “Beware of the tyranny of making Small Things. Small Changes to Rather, make Big Big Things … using Small, Almost Invisible Levers with Big Systemic Impact.” Changes to —TP 4. Excellence 1/40: Try It! Tom Peters 1/40 I lied. I’ve actually only learned one thing in the last 40 years—“Try it!” Try it. Try it. Try it ry it. Try it. Screw up. Try it. Try it. Try t. Try it. Try it. Try t. Try it. Screw it up t. Try it. Try it. try What makes God laugh? People making plans! "Life is what happens while you're busy making other plans.” —John Lennon “The secret of fast progress is inefficiency, fast and furious and numerous failures.” —Kevin Kelly “Active mutators in placid times tend to die off. They are selected against. Reluctant mutators in quickly changing times are also selected against.” —Carl Sagan & Ann Druyan, Shadows of Forgotten Ancestors “We have a ‘strategic plan.’ It’s called doing things.” — Herb Kelleher A man approached JP Morgan, held up an envelope, and said, “Sir, in my hand I hold a guaranteed formula for success, which I will gladly sell you for $25,000.” “Sir,” JP Morgan replied, “I do not know what is in the envelope, however if you show me, and I like it, I give you my word as a gentleman that I will pay you what you ask.” The man agreed to the terms, and handed over the envelope. JP Morgan opened it, and extracted a single sheet of paper. He gave it one look, a mere glance, then handed the piece of paper back to the gent. And paid him the agreed upon $25,000. 1. Every morning, write a list of the things that need to be done that day. 2. Do them. Source: Hugh MacLeod/tompeters.com/NPR “This is so simple it sounds stupid, but it is amazing how few oil people really understand that you only find oil if you drill wells. You may think you’re finding it when you’re drawing maps and studying logs, but you have to drill.” Source: The Hunters, by John Masters, Canadian O & G wildcatter “We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the software. We fixed them by doing it over and over, again and again. We do the same today. While our competitors are still sucking their thumbs trying to make the design perfect, we’re already on prototype version #5. By the time our rivals are ready with wires and screws, we are on version #10. It gets back to planning versus acting: We act from day one; others plan how to plan— for months.” —Bloomberg by Bloomberg Hizzonor and the Governator*: “The New Action Heroes” (Time/07.23.07) *Bloomberg, Schwarzenegger “Experiment fearlessly” Source: BW0821.06, Type A Organization Strategies/ “How to Hit a Moving Target”—Tactic #1 "I think it is very important for you to do two things: act on your temporary conviction as if it was a real conviction; and when you realize that you are wrong, correct course very quickly.” —Andy Grove “We ground up more pig brains!” The True Logic* of Decentralization: 6 divisions = 6 “tries” 6 divisions = 6 DIFFERENT leaders = 6 INDEPENDENT “tries” = Max probability of “win” 6 divisions = 6 very DIFFERENT leaders = 6 very INDEPENDENT “tries” = Max probability of “far out”/”3-sigma” “win” *“Driver”: Law of Large #s SERIOUS PLAY Culture of Prototyping “Effective prototyping may the most valuable core competence an be innovative organization can hope to have.” —Michael Schrage Think about It!? Innovation = Reaction to the Prototype Source: Michael Schrage “You can’t be a serious innovator unless and until you are ready, willing and able to seriously play. ‘Serious play’ is not an oxymoron; it is the essence of innovation.” —Michael Schrage, Serious Play “Learn not to be careful.” —Photographer Diane Arbus to her students (Careful = The sidelines, from Harriet Rubin in The Princessa) “If it’s not fun you’re not doing it right.” —Fran Tarkenton “The key to a great painting is the nerve, after weeks of effort, to ‘bet the painting’ on the next brush stroke,” Master musician, San Francisco Screw. things. “Natural selection is death. ... Without huge amounts of death, organisms do not change over time. ... Death is the mother of structure. ... It took four billion years of death ... to invent the human mind ...” — The Cobra Event “FAIL, FAIL AGAIN. FAIL BETTER.” —Samuel Beckett “Fail . Forward. Fast.” High Tech CEO, Pennsylvania “Fail faster. Succeed Sooner.” David Kelley/IDEO Sam’s Secret #1! “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec “If people tell me they skied all day and never fell down, I tell them to try a different mountain.” —Michael Bloomberg (BW/0625.07) “In business, you reward people for taking risks. When it doesn’t work out you promote them-because they were willing to try new things. If people tell me they skied all day and never fell down, I tell them to try a different mountain.” —Michael Bloomberg (BW/0625.07) Read This! Richard Farson & Ralph Keyes: Whoever Makes the Most Mistakes Wins: The Paradox of Innovation “The Silicon Valley of today is built less atop the spires of earlier triumphs than upon the rubble of earlier debacles.”—Newsweek/ Paul Saffo “The secret of fast progress is inefficiency, fast and furious and numerous failures.” --Kevin Kelly “[other] admirals more frightened of losing than anxious to win” On NELSON: try. Miss. READY. FIRE! Ideas. Plans. Actions. “We are in a brawl with no rules.” Paul Allaire/Xerox: TP: “There’s [literally] only one Screw Around Vigorously! possible answer … RAF RFA RFFFA RFFFA … FFFFA RAAAAAAAAAAA … IID DSS* INID DSS** *If In Doubt … Do Some S$%^ (stuff) **If Not In Doubt … Do Some S%*& Life 101: A 40-year Reflection Go on offense. Give everybody a shot. Decentralize. Try a bunch of stuff. Make it up as you go along. Get some stuff wrong. Laugh a lot. Get some stuff right. Become a “success.” Extract “lessons learned” or “best practices.” Thicken the Book of Rules for Success. Become evermore serious. Enforce the rules to increasingly tight tolerances. Go on defense. Install walls. Protect-at-all-costs today’s franchise. Centralize. Calcify. Install taller walls. Write more rules. Become irrelevant and-or die. No try. No deal. “You miss 100% of the shots you never take.” —Wayne Gretzky “Intelligent people can always come up with intelligent reasons to do nothing.” —Scott Simon “Andrew Higgins , who built landing craft in WWII, refused to hire graduates of He believed that they only teach you what you can’t do in engineering school. He engineering schools. started off with 20 employees, and by the middle of the war had 30,000 working for him. He turned out 20,000 landing craft. D.D. Eisenhower told me, ‘Andrew Higgins won the war for us. He did it without engineers.’ ” —Stephen Ambrose/Fast Company Try. Try. Try. Try. try. Try. Try. Try. Try. try. Try. Try. Try. Try. try. Try. Try. Try. Try. try. Try. Try. Try. Try. 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” Innovation: mad. Start Doing something about it. Now. Get The Limits of “Systems Thinking”: Surprise, Transformation & Excellence Through Spontaneous Discovery The Limits of “Systems Thinking”: Surprise, Transformation & Excellence Through Spontaneous Discovery (1 of 2) This summer was the summer of brush clearing. And, it turned out, much more. It started as simple exercise. After a day or two, scratches from head to toe, and enjoyment, I set myself a goal of clearing a little space to get a better view of one of the farm ponds. That revealed something else … to my surprise. At a casual dinner, I sat next to a landscaper, and we got to talking about our farm and my skills with clipper, saw, etc. In particular, she suggested that I do some clearing around a few of our big boulders. Intrigued, I set about clearing, on our main trail, around a couple of said boulders. I was again amazed at the result. That in turn led to attacking some dense brush and brambles around some barely visible rocks that had always intrigued me—which led to “finding,” in effect, a great place for a more or less “Zen garden,” as we’ve taken to calling it. Which led to … more and more. And more. (Especially a rock wall, a hundred or so yards long, that is a massive wonder— next year I’ll move up the hill behind it—I can already begin to imagine what I’ll discover, though my hunch will be mostly “wrong,” and end up leading me somewhere else.) The Limits of “Systems Thinking”: Surprise, Transformation & Excellence Through Spontaneous Discovery (2 of 2) To make a long story short: I now have a new hobby, and maybe, ye gads, my life’s work for years to come. This winter I’ll do a little, but I also plan to read up on outdoor spaces, Zen gardens, etc; visit some rock gardens—spaces close by or amidst my travels; and, indeed, concoct a more or less plan (rough sketches) for next spring’s activities—though I’m sure that what I do will move forward mostly by what I discover as I move forward. (what discovers itself may actually be a better way to put it—there’s a “hidden hand” here.) As I’m beginning to see it, this is at least a 10-year project—maybe even a multi-generation project. I proceeded by trial and error and instinct, and each experiment led to/suggested another experiment (or 2 or 10) and to a greater understanding of potential—the “plan,” though there was none, made itself. And it was far, far better (more ambitious, more interesting, more satisfying) than I would have imagined. In fact, the result to date bears little or no relationship to what I was thinking about at the start—a trivial self-designed chore may become the engine of my next decade; the “brushcutting project” is now leading Susan and I to view our entire property, and what it might represent, in a new light. I was able to do much more than I’d dreamed—overall, and project by project. “Systems thinking”? It would have killed the whole thing. Is “everything connected to every thin else”? Well, duh. But I had no idea how everything was connected to everything else until I began (thank you, Michael Schrage) “serious play.” I proceeded by trial and error and instinct, and each experiment led to/suggested another experiment (or 2 or 10) and to a greater understanding of potential—the “plan,” though there was none, made itself. And it was far, far better (more ambitious, more interesting, more satisfying) than I would have imagined. In fact, the result to date bears little or no relationship to what I was thinking about at the start—a trivial self-designed chore may become the engine of my next decade; the “brushcutting project” is now leading Susan and I to view our entire property, and what it might becomerepresent, in a new light. Note (more of the same): Last year I got a pacemaker for Christmas (13 December, actually); the #1 no-no is using a chain saw. (The magnetic field is fearsome.) Taking that warning a step farther, I decided to do this project entirely with hand tools. Of course that means more exercise—a good thing. But the “great wonder,” again unexpected, is that the resultant slowness and quiet is the de facto engine of my entire spontaneous discovery process. Note: Some of you will have discovered my implicit debt to the economist-of-freedom, F.A. Hayek. His stunningly clear view of market capitalism as a “spontaneous discovery process” is my intellectual bedrock, my “context” for three decades in Silicon Valley, and now even for my recreational pursuits (which are, as noted, becoming so much more than that). Note (more of the same): Last year I got a pacemaker for Christmas (13 December, actually); the #1 no-no is using a chain saw. (The magnetic field is fearsome.) Taking that warning a step farther, I decided to do this project entirely with hand tools. Of course that means more exercise—a good thing. But the “great wonder,” again unexpected, is that the resultant slowness and quiet is the de facto engine of my entire spontaneous discovery process. Note: Some of you will have discovered my implicit debt to the economist-of-freedom, F.A. Hayek. His stunningly clear view of market capitalism as a “spontaneous discovery process” is my intellectual bedrock, my “context” for three decades in Silicon Valley, and now even for my recreational pursuits (which are, as noted, becoming so much more than that). “How do I know what I think until I see what I say.” —C.K. Chesterton “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 “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.” —The Hunters, by John Masters, Canadian Oil & Gas wildcatter “Experiment fearlessly” —BusinessWeek, in a Special Report, on the premier innovation strategy of the best innovators “The secret of fast progress is inefficiency, fast and furious and numerous failures.” —Kevin Kelly, founding editor, Wired “How do I know what I think until I see what I say.” —C.K. Chesterton Your call. BLAME NOBODY. EXPECT NOTHING. DO SOMETHING. Source: Locker room sign posted by football coach Bill Parcells The End