LONG
Tom Peters’
Re-Imagine EXCELLENCE
INNOVATE
… or Perish
Guadalajara/29 October 2014
(For more see tompeters.com and our fully annotated 23-part Master
Compendium [Mother of All Presentations] at excellencenow.com)
CONRAD HILTON …
CONRAD HILTON, at a gala celebrating
his career, was called to the podium and
“What were the
most important
lessons you learned
in your long and
distinguished
career?” His answer …
asked,
“Remember
to tuck the
shower curtain
inside the
bathtub.”
IS
“EXECUTION
STRATEGY.”
—Fred Malek
“COSTCO FIGURED OUT
BIG,
SIMPLE THINGS
THE
AND
EXECUTED
WITH TOTAL
FANATICISM.”
—Charles Munger, Berkshire Hathaway
-1/+1/2
S&P 500
+1/-1*
*Every …
!
2 weeks
Source: Richard Foster (via Rita McGrath/HBR/12.26.13
“I am often asked by
would-be entrepreneurs
seeking escape from life
within huge corporate
structures, ‘How do I build
a small firm for myself?’
The answer seems
obvious …
Source: Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics
“I am often asked by would-be entrepreneurs seeking escape from
life within huge corporate structures, ‘How do I build a small firm for
Buy a
very large
one and just
wait.”
myself?’ The answer seems obvious:
—Paul Ormerod, Why Most Things Fail:
Evolution, Extinction and Economics
“Mr. Foster and his McKinsey colleagues collected
detailed performance data stretching back
years for
1,000
found that
U.S. companies.
40
They
NONE
of
the long-term survivors managed to
outperform the market. Worse, the
longer companies had been in the
database, the worse they did.”
—Financial Times
“Data drawn from the real world
attest to a fact that is beyond
EVERYTHING
IN EXISTENCE TENDS
TO DETERIORATE.”
our control:
—Norberto Odebrecht, Education Through Work
THE RED
CARPET
STORE
(Joel Resnick/Flemington NJ)
*Basement Systems Inc.
(Larry Janesky/Seymour CT)
*Dry Basement Science
(100,000++ copies!)
*1990: $0; 2003: $13M;
2010:
$80,000,000
The Magicians of Motueka (PLUS)
!
W.A. Coppins Ltd.*
(Coppins Sea Anchors/
PSA/para sea anchors)
*Textiles, 1898; thrive on
“wicked problems”
U.S. Navy STLVAST (Small To Large Vehicle At Sea
Transfer); custom fabric from W. Wiggins Ltd./Wellington
(specialty nylon, “Dyneema,” from DSM/Netherlands)
—e.g.,
JUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OH:
“An adventure in
‘shoppertainment,’ begins in the parking lot
and goes on to
1,600
cheeses and
1,400
varieties of hot sauce—not to mention 12,000 wines priced from
$8-$8,000
4,000
a bottle; all this is brought to you by
vendors. Customers from every corner of the globe.”
BRONNER’S CHRISTMAS WONDERLAND, FRANKENMUTH, MI, POP
5,000: 98,000-square-foot “shop” features
ornaments,
50,000
6,000
Christmas
trims, and anything else you can
name pertaining to Christmas. …”
“BE THE BEST.
IT’S THE ONLY
MARKET THAT’S
NOT CROWDED.”
From: Retail Superstars: Inside the 25 Best
Independent Stores in America, George Whalin
Going “Social”: Location and Size Independent
“Today, despite the fact that we’re just a little swimming
pool company in Virginia, we have the most trafficked
swimming pool website in the world. Five years ago, if
you’d asked me and my business partners what we do, the
answer would have been simple, ‘We build in-ground
‘We
are the best teachers
… in the world … on the
fiberglass swimming pools.’ Now we say,
subject of fiberglass swimming pools,
and we also happen to build them.’”
—Jay Baer, Youtility: Why Smart Marketing Is About Help, Not Hype
Where the +201,000 new private-sector
jobs came from …
51% Small firms
41% Medium-sized*
8% Big
Source: ADP National Employment Report/March 2011
*E.g., German MITTELSTAND
Small (Entrepreneurial) BUSINESS:
Training Inc. , a 14-person
unit* in a 50-person HR
department in a $200M
business unit in a $3B
corporation—aiming for
Excellence & WOW!
*PSF/
Professional Service Firm (See my …
Professional Service Firm 50: Fifty Ways to Transform Your
“Department” Into A Professional Service Firm Whose
Trademarks Are Passion and Innovation.)
Middle-sized
NicheMicro-niche
Dominators!
I love …
"Own" a niche through EXCELLENCE
!
(Writ large: Germany’s MITTELSTAND: “agile creatures darting
between the legs of the multinational monsters” )
Middle-sized
NicheMicro-niche
Dominators!
I love …
"Own" a niche through EXCELLENCE
!
(Writ large: Germany’s MITTELSTAND: “agile creatures darting
between the legs of the multinational monsters” )
Michael Raynor and Mumtaz Ahmed: THE THREE RULES:
How Exceptional Companies Think*:
1. Better before cheaper.
2. Revenue before cost.
3. There are no other rules.
(*From a database of over 25,000 companies from hundreds of industries covering 45 years, they
uncovered 344 companies that qualified as statistically “exceptional.”)
Jeff Colvin, Fortune: “The Economy Is Scary … But Smart
Companies Can Dominate”:
They manage for value—not for EPS.
They keep developing human capital.
They get radically customer-centric.
!
EXCELLENCE
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.
EXCELLENCE is not a “longterm” "aspiration.”
EXCELLENCE is the ultimate
short-term strategy.
EXCELLENCE is … THE
NEXT
5
MINUTES.*
(*Or NOT.)
EXCELLENCE is not an "aspiration."
EXCELLENCE is … THE NEXT FIVE MINUTES.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
is your next conversation.
is your next meeting.
is shutting up and listening—really listening.
is your next customer contact.
is saying “Thank you” for something “small.”
is the next time you shoulder responsibility and apologize.
is waaay over-reacting to a screw-up.
is the flowers you brought to work today.
is lending a hand to an “outsider” who’s fallen behind schedule.
is bothering to learn the way folks in finance (or IS or HR) think.
is waaay “over”-preparing for a 3-minute presentation.
is turning “insignificant” tasks into models of … EXCELLENCE.
“Strive for
Excellence.
Ignore
success.”
—
—Bill Young, race car driver
SERVICE.
PERIOD.
ORGANIZATIONS
EXIST TO SERVE.
PERIOD.
LEADERS LIVE TO
SERVE. PERIOD.
People!
People!
People!
1/4,096
“Business has to
give people
enriching,
rewarding lives …
1/4,096: excellencenow.com
“Business has to give people enriching,
or it's
simply not
worth doing.”
rewarding lives …
—Richard Branson
“You have to
treat your
employees like
customers.”
—Herb Kelleher,
upon being asked his “secret to success”
Source: Joe Nocera, NYT, “Parting Words of an Airline Pioneer,”
on the occasion of Herb Kelleher’s retirement after 37 years at Southwest
Airlines (SWA’s pilots union took out a full-page ad in USA Today
thanking HK for all he had done) ; across the way in Dallas, American
Airlines’ pilots were picketing AA’s Annual Meeting)
“We look for ...
listening, caring,
smiling, saying
‘Thank you,’ being
warm.”
— Colleen Barrett, former President, Southwest Airlines
“May I help
you down the
jetway.”
Rocket Science.
NOT.
“If you want staff to
give great service,
give great service
to staff.”
—Ari Weinzweig, Zingerman’s
Source: Small Giants: Companies That Choose to Be Great
Instead of Big, Bo Burlingham
"When I hire
someone, that's
when I go to
work for
them.”
—John DiJulius, "What's the Secret
to Providing a World-class Customer Experience"
“I start with the
premise that the
function of
leadership is to
produce more
leaders, not more
followers.”
—Ralph Nader
EXCELLENT
customer experience
depends … entirely …
on EXCELLENT
employee experience!
If you want to WOW your
FIRST
customers,
you
must WOW those who
WOW the customers!
Wegmans
(was #1 in USA)
Container Store
(was #1 in USA)
Whole Foods
Costco
Publix
Darden Restaurants
Build-A-Bear
Workshops
Starbucks
“The greatest satisfaction for management has come not from the
Camellia
financial growth of
itself, but rather from having
participated in the vast improvement in the living and working conditions
of its employees, resulting from the investment of many tens of millions of
pounds into the tea gardens’ infrastructure of roads, factories, hospitals,
employees’ housing and amenities. … Within the Camellia Group there is a
strong aesthetic dimension, an intention that it should comprise
companies and assets of the highest quality, operating from inspiring
Above
all, there is a deep concern for the welfare
of each employee. This arises not only
from a sense of humanity, but also from
the conviction that the loyalty of a secure
and enthusiastic employee will in the
long-term prove to be an invaluable
company asset.” —Camellia: A Very Different Company
offices and manufacturing in state of the art facilities. …
($600M enterprise/$160M pretax profit/#3 tea producer/etc.)
Brand =
Talent.
Our Mission
TO DEVELOP AND MANAGE TALENT;
TO APPLY THAT TALENT,
THROUGHOUT THE WORLD,
FOR THE BENEFIT OF CLIENTS;
TO DO SO IN PARTNERSHIP;
TO DO SO WITH PROFIT.
WPP
“G-E-N-I-U-S”
Getting more and more cantankerous (short tempered!)
about this:
Job #1 (& #2 & #3)
is to abet peoples' personal
growth. All other good things
flow there from.
My idea of a gen-u-ine "genius“
If you work your
heart out to help people grow,
they'll work their hearts out
to give customers a great
experience.
"breakthrough" idea:
“It may sound radical, unconventional, and
bordering on being a crazy business idea.
However— as ridiculous as it sounds—joy is the
core belief of our workplace.
Joy
is the reason my company,
Menlo Innovations, a customer software design
and development firm in Ann Arbor, exists. It
defines what we do and how we do it. It is the
single shared belief of our entire team.”
Joy, Inc.:
How We Built a Workplace People Love
—Richard Sheridan,
THE MORAL
IMPERATIVE:
PEOPLE
DEVELOPMENT
Your principal
moral obligation as a leader is to
develop the skillset, “soft” and
“hard,” of every one of the people
in your charge (temporary as well
as semi-permanent) to the
maximum extent of your abilities.
The good news: This is also the
#1 mid- to long-term …
profit maximization strategy!
CORPORATE MANDATE #1 2014:
In Good Business, Mihaly Csikszentmihalyi argues persuasively
that business has become the center of society. As such, an
obligation to community is front & center. Business as societal
RESPONSIBILITY to
increase the “SUM OF HUMAN
WELL-BEING.” Business is NOT "part of the
bedrock, has the
community." In terms of how adults collectively spend their
BUSINESS IS THE
COMMUNITY. And should act accordingly. The
waking hours …
(REALLY) good news: Community mindedness
is a great way (THE best way?) to have
spirited/committed/ customer-centric work force—and,
ultimately, increase (maximize?) profitability!
“The role of the Director is to
create a space where the actors
become
more than they’ve ever
been before,
more than they’ve
dreamed of being.”
and actresses can
—Robert Altman, Oscar acceptance speech
#2: Help people be
successful.*
#1: Help people
grow.** ***
*Especially circa 2014; “Grow or die (professionally)” is fact, not hyperbole.
**With a nod to Matthew Kelly’s The Dream Manager
***#2 and #1 are clearly related, but #1/grow has more to do with
long-term preparedness.
human
beings are
entrepreneurs. When we
Muhammad Yunus:
“All
were in the caves we were all self-employed
... 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.”
—Muhammad Yunus,
Nobel Laureate/The News Hour/PBS/1122.2006
Training =
Investment
#1
6/2/3*
SIX MONTHS to develop
THREE MINUTES of new material
*It takes Jerry Seinfeld
TWO
or
(documentary: Comedian)
In the Army, 3-star
generals worry about
training. In most
businesses, it's a
“ho-hum” mid-level
staff function.
Is your CTO/Chief
Training Officer your top
paid “C-level” job (other
than CEO/COO)?
If not, why not?
Are your training courses
so good they make you
giggle and tingle?
If not, why not?
Gamblin’ Man
>> 5 of 10 CEOs see training as expense
rather than investment.
Bet #2: >> 5 of 10 CEOs see training as defense
rather than offense.
Bet #3: >> 5 of 10 CEOs see training as
“necessary evil” rather than “strategic
opportunity.”
Bet #1:
>> 8 of 10 CEOs, in a
45-minute “tour d’horizon”
of their business, would
NOT mention training.
Bet #4:
Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?
If not, why not?
Are your top trainers paid as much as your top marketers and engineers?
If not, why not?
Are your training
courses so good they
make you giggle and
tingle?
If not, why not?
Randomly stop an employee in the hall: Can she/he meticulously describe her/his development plan for the next 12
months?
If not, why not?
Why is your world of business any different than the (competitive) world of rugby, football, opera, theater,
the military?
If “people/talent first” and hyper-intense continuous training are laughably obviously for them, why not you?
Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?
If not, why not?
Are your top trainers paid as much as your top marketers and engineers?
If not, why not?
Are your training courses so good they make you giggle and tingle?
If not, why not?
Randomly stop an employee
in the hall: Can she/he
meticulously describe her/his
development plan for the
next 12 months?
If not, why not?
Why is your world of business any different than the (competitive) world of rugby, football, opera,
theater,
the military?
If “people/talent first” and hyper-intense continuous training are laughably obviously for them,
why not you?
Your (boss) job is
safer if every one of your
team members is
committed to
Boss & RPD:
RPD/Radical
Personal Development.
Actively support one
and all!
What is the best reason to go
bananas over training?
GREED. (It pays off.)
(Training should be an official part of the
R&D budget and a capital expense.)
2/Year =
Legacy
Promotion Decisions
“life and
death
decisions”
Source: Peter Drucker, The Practice of Management
st
1 -Line
Bosses
(Cadre of) =
Productivity Asset
#1!
If the regimental commander lost most of his
2nd lieutenants and 1st lieutenants and captains
If he
lost his sergeants it
would be a
catastrophe. The Army and the
and majors, it would be a tragedy.
Navy are fully aware that success on the
battlefield is dependent to an extraordinary
degree on its Sergeants and Chief Petty
Officers. Does industry have the same
awareness?
“People leave
managers not
companies.”
—Dave Wheeler
Is there ONE “secret” to
productivity and
employee satisfaction?
YES!
The Quality of your
FULL CADRE of …
1st-line Leaders.
WOMEN RULE
(WOMEN BUY
!
!)
[EVERYTHING]
“AS LEADERS, WOMEN RULE: New studies find
that female managers outshine their male
counterparts in almost every measure”
—TITLE, Special Report, BusinessWeek
“Research suggests that to
succeed, start by promoting
women.” —Nicholas Kristof, NYTimes, 1024.13
“In my experience, women make
much better executives than men.”
—Kip Tindell, CEO, Container Store, from UNCONTAINABLE
“Research
suggests
that to succeed, start
by promoting women.”
“McKinsey & Company found that the international companies
with more women on their corporate boards far outperformed the
average company in return on equity and other measures.
Operating profit was
56%
higher.”
Source: Nicholas Kristof, “Twitter, Women, and Power,” NYTimes, 1024.13
“Forget CHINA,
INDIA and the
INTERNET: Economic
Growth Is Driven by
WOMEN.”*
Source: Headline, Economist
*W > 2X (C + I) = $28T
W>
2X (C + I)*
*“Women now drive the global economy. Globally, they control about $20
trillion in consumer spending, and that figure could climb as high as
$28 trillion
in the next five years. Their
$13 trillion in total yearly earnings could reach $18 trillion in the same
period. In aggregate, women represent a growth market bigger than China and India combined—more than
twice as big, in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer. And
yet many companies do just that—even ones that are confident that they have a winning strategy when it comes to
women. Consider Dell’s …”
Source: Michael Silverstein and Kate Sayre, “The Female Economy,” HBR, 09.09
“Women are
THE majority
market”
—Fara Warner/The Power of the Purse
Context:
1,000,000
China/Foxconn:
1,000,000
robots/next 3 years
Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfee
“Just like other members of
the board, the algorithm gets
to vote on whether the firm
makes an investment in a
specific company or not. The
program will be the sixth
member of DKV's board.”
Source: Business Insider, 13 May 2014: “A Hong Kong VC fund
has just appointed an algorithm to its board.”
“Automation has become so
sophisticated that on a typical
passenger flight, a human pilot holds
the controls for a grand total of
3 minutes
…
.
[Pilots] have become, it’s not
much of an exaggeration to say,
computer operators.”
Source: Nicholas Carr, “The Great Forgetting,” The Atlantic, 11.13
“Meet Your
Next Surgeon:
Dr. Robot”
Source: Feature/Fortune/15 JAN 2013/on Intuitive Surgical’s
da Vinci
/multiple bypass heart-surgery robot
“The root of our problem is not
that we’re in a Great Recession
or a Great Stagnation, but rather
that we are in the early
Great
Restructuring
throes of a
.
Our technologies are racing ahead,
but our skills and organizations
are lagging behind.”
Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfee
CORPORATE MANDATE #1/MORAL IMPERATIVE 2014:
Your principal moral obligation as
a leader is to develop the skillset,
“soft” and “hard,” of every one of
the people in your charge
(temporary as well as semipermanent) to the maximum
extent of your abilities. The good
news: This is also the
#1 mid- to long-term …
profit maximization strategy!
INNOVATE
… or PERISH
/48
Lesson48:
WTTMSW
WHOEVER
TRIES
THE
MOST
STUFF
WINS
Excellence82: 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
READY.
FIRE!
AIM.
H. Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)
I want to be a Photographer.
Take a ton of photos. Start a photo blog.
Organize an art show for your best work. Make stuff.
I want to be a Writer.
Write a ton of pieces. Establish a voice on social media.
Start a blog. Write guest posts for friends. Make stuff.
Talk is cheap.
Just make stuff.
—Reid Shilperoot, brand strategist, on the one piece of
advice that has helped him overcome creative blocks
“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
“DEMO
OR DIE!”
Source: This was the approach championed by Nicholas Negroponte
which vaulted his MIT Media Lab to the forefront of IT-multimedia
innovation. It was his successful alternative to the traditional
MIT-academic “publish or perish.” Negroponte’s rapid-prototyping
version was emblematic of the times and the pace and the enormity
of the opportunity. (NYTimes/0426.11)
“EXPERIMENT
FEARLESSLY”
Tactic #1
Source: BusinessWeek, “Type A Organization Strategies: How to Hit a Moving Target”—
“RELENTLESS TRIAL
AND ERROR”
Source: Wall Street Journal, cornerstone of effective approach to “rebalancing” company
portfolios in the face of changing and uncertain global economic conditions (11.08.10)
“FAIL.
FORWARD.
FAST.”
High Tech CEO, Pennsylvania
Ideas Economy:
CAN YOUR
BUSINESS FAIL
FAST ENOUGH TO
SUCCEED?
Source: ad for Economist Conference/0328.13/Berkeley CA (caps are Economist’s)
“It is not enough to
‘tolerate’ failure—
you must
‘celebrate’
failure.”
—Richard Farson (Whoever Makes the
Most Mistakes Wins)
We Are
What
We Eat
We Are What
We Eat
We Are Who We
Hang Out With
“You will become like
the five people you
associate with the
most—this can be
either a blessing or a
curse.”
—Billy Cox
The “We are what we eat”/
“We are who we hang out with”
Axiom: At its core,
every (!!!)
relationship-partnership decision
(employee, vendor, customer, etc.,
etc.) is a strategic decision about:
“Innovate,
‘Yes’ or ‘No’ ”
Measure/Manage: Portfolio “Strangeness”/“Quality”
1. Customers
2. Vendors
3. Out-sourcing Partners
4. Acquisitions
5. Purposeful “Theft”
6. Diversity/“d”iversity
7. Diversity/Crowd-sourcing
8. Diversity/Weird
9. Diversity/Curiosity
10. Benchmarks
11. Calendar
12. MBWA
13. Lunch/General
14. Lunch/Other functions
15. Location/Internal
16. Location/HQ
17. Top team
18. Board
“The Billion-man
Research Team:
Companies offering
work to online
communities are
reaping the benefits of
crowdsourcing.”
—Headline, FT
“Who’s the most
interesting person
you’ve met in the last
90 days? How do I
get in touch with
them?”
—Fred Smith
Ouch!
“The Bottleneck …
“The Bottleneck is at the …
“Where are you likely to find people with
the least diversity of experience, the
largest investment in the past,
and the greatest reverence for
industry dogma …
Top of the
Bottle”
— Gary Hamel/Harvard Business Review
XFX =
#1
NEVER
WASTE A
LUNCH!
% XF
lunches*
*Measure!
evaluation!
Monthly! Part of
Innovate
or Die:
Measure It!
Innovation Index: How many
of your Top 5 Strategic
Initiatives/Key Projects
score 8 or higher [out of 10]
on a “Weird”/“Profound”/
“Wow”/“Game-changer”
Scale? (At least 3???)
Innovation Index: Move every
2
project (definition)
notches up on the
“WOWification
Scale” … THIS WEEK.
VALUE-ADDED
STRATEGIES
TGRs:
8/80
Customers describing their service
experience as “superior”:
8%
Companies describing
the service experience they provide as
“superior”:
80%
—Source: Bain & Company survey of 362 companies, reported in John DiJulius,
What's the Secret to Providing a World-class Customer Experience?
Conveyance: Kingfisher Air
Location: Approach to New Delhi
“May I clean
your glasses,
sir?”
BEGINS
(and ENDS)
It
in the …
PARKING
LOT*
*Disney
<TGW
and …
>TGR
[Things Gone
WRONG-Things Gone RIGHT]
“Experiences
are as distinct
from services
as services are
from goods.”
—Joe Pine & Jim Gilmore, The Experience Economy:
Work Is Theatre & Every Business a Stage
C
*Chief e
O*
Xperience Officer
TGRs:
3 Minutes
“I regard apologizing as the
most magical, healing,
restorative gesture human
beings can make. It is the
centerpiece of my
work with executives who
want to get better.”
—Marshall Goldsmith, What Got You Here Won’t Get You There:
How Successful People Become Even More Successful.
TGRs:
LBTs*
*Little BIG Things
LITTLE =
Big carts =
Source: Walmart
Bag sizes = New markets:
Source: PepsiCo
2X: “When Friedman
slightly
curved
the right angle of an
entrance corridor to one property, he
was ‘amazed at the magnitude of
change in pedestrians’ behavior’—the
percentage who entered increased from
one-third to nearly two-thirds.”
—Natasha Dow Schull, Addiction By Design: Machine Gambling in Las Vegas
Machine Gambling
“Pleasing” odor #1 vs.
“pleasing” odor #2:
+45% revenue
Source: “Effects of Ambient Odors on Slot-Machine Useage in Las Vegas
Casinos,” reported in Natasha Dow Schull, Addiction By Design:
Machine Gambling in Las Vegas (66% revenue, 85% profit)
(1) AMENABLE TO RAPID
EXPERIMENTATION/FAILURE “FREE”
(NO BAD “PR,” NO $$)
(2) QUICK TO IMPLEMENT/QUICK TO
ROLL OUT
(3) INEXPENSIVE TO IMPLEMENT/
ROLL OUT
(4) HUGE MULTIPLIER
(5) AN “ATTITUDE”
(6) DOES NOT BY AND LARGE REQUIRE A
“POWER POSITION” FROM WHICH
TO LAUNCH EXPERIMENTS.
Social Business/
Customer
Engagement
“Customer engagement is moving
from relatively isolated market
transactions to deeply connected
and sustained social
relationships. This basic change
in how we do business will make
an impact on just about
everything we do.”
Social Business By Design: Transformative Social Media Strategies
For the Connected Company —Dion Hinchcliffe & Peter Kim
Biz 2014: Get Aboard the “S-Train”
SM/Social Media.
SX/Social eXecutives.
SE/Social Employees.
SO/Social Organization.
SB/Social Business.
Seven Characteristics of the Social Employee
1. Engaged
2. Expects Integration of the
Personal and Professional
3. Buys Into the Brand’s Story
4. Born Collaborator
5. Listens
6. Customer-Centric
7. Empowered Change Agent
Source: Cheryl Burgess & Mark Burgess,
The Social Employee
DESIGN
Design Rules!
APPLE market cap
> Exxon Mobil*
*August 2011
“Design is
treated like a
religion at
BMW.” —Fortune
“Design is everything.
Everything is design.”
“We are all designers.”
Inspiration: The Power of Design: A Force for
Transforming Everything, Richard Farson
The (ENORMOUS)
“Services Added”
Opportunity
M
IBM
IB
to
PS
UPS
U
to
“Rolls-Royce now earns
more from tasks such
as managing clients’ overall
procurement strategies and
maintaining aerospace
engines it sells than it does
from making them.”
—Economist
Era #1/Obvious Value: “Our ‘it’ works, is
delivered on time” (“Close”)
Era #2/Augmented Value: “How our ‘it’
can add value—a ‘useful it’” (“Solve”)
Era #3/Complex Value Networks: “How
our ‘system’ can change you and
deliver ‘BUSINESS ADVANTAGE’”
(“Culture-Strategic change”)
Source: Jeff Thull, The Prime Solution: Close the Value Gap,
Increase Margins, and Win the Complex Sale
Leading
25/50
“To develop
others, start
with yourself.”
—Marshall Goldsmith
“I’m always stopping by our
at least
a week.
stores—
25
I’m also in other
places: Home Depot, Whole Foods, Crate &
Barrel. I try to be a sponge to pick up as
much as I can.”—Howard Schultz
Source: Fortune, “Secrets of Greatness”
MBWA
Managing
By
Wandering
Around
“Most managers spend a great deal of time thinking about what they plan to do, but relatively little time thinking about what
they plan not to do. As a result, they become so caught up … in fighting the fires of the moment that they cannot really
attend to the long-term threats and risks facing the organization. So the first soft skill of leadership the hard way is to
cultivate the perspective of Marcus Aurelius: avoid busyness, free up your time, stay focused on what really matters.
Let me put it bluntly: every leader should
routinely keep a substantial portion of
his or her time—I would say as much as
50
percent—unscheduled.
…
Only when you have substantial ‘slop’ in your schedule—unscheduled time—will you have the space to reflect on what you
are doing, learn from experience, and recover from your inevitable mistakes. Leaders without such free time end up tackling
issues only when there is an immediate or visible problem. Managers’ typical response to my argument about free time is,
Yet we waste so much time in
unproductive activity—it takes an enormous effort on the part of the
leader to keep free time for the truly important things.”
‘That’s all well and good, but there are things I have to do.’
—Dov
Frohman (& Robert Howard), Leadership The Hard Way: Why Leadership Can’t Be Taught—
And How You Can Learn It Anyway (Chapter 5, “The Soft Skills Of Hard Leadership”)
You = Your
calendar*
*The calendar
NEVER
lies.
Meetings are
#1
do. Therefore,
thing bosses
100% of
those meetings:
EXCELLENCE.
ENTHUSIASM.
ENGAGEMENT.
LEARNING. TEMPO.
“If there is any
ONE
‘secret’ to
effectiveness, it is concentration.
Effective executives do first things first …
and they do
ONE thing at a
time.”
—Peter Drucker
“The
4 most
important
words in any
organization are …
“Courtesies of a small and trivial
character are the ones which
strike deepest in the grateful and
appreciating heart.” —Henry Clay
“The deepest principle in human nature
is the craving to be appreciated.”
—William James
“The deepest urge in human nature is
the desire to be important.” —John Dewey
THE FOUR MOST IMPORTANT WORDS IN ANY ORGANIZATION
“WHAT
DO YOU
THINK?” *
ARE …
Source: courtesy Dave Wheeler, posted at tompeters.com
*“Employees who don't feel significant rarely make
significant contributions.” —Mark Sanborn
8
MBWA
:
Change the World With EIGHT Words
What do you think?*
How can I help?**
*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”
**Boss as CHRO/Chief Hurdle Removal Officer **********************************
12
MBWA
:
Change the World
With TWELVE Words
What do you think?*
How can I help?**
What have you learned?***
*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”
**Boss as CHRO/Chief Hurdle Removal Officer **********************************
***What (new thing) have you learned (in the last 24 hours)? ********************* *
“The doctor
interrupts
after …*
*Source: Jerome Groopman, How Doctors Think
18 …
18 …
seconds!
Suggested
Core Value
#1: “We are Effective
Listeners—we treat
Listening EXCELLENCE as
the Centerpiece of our
Commitment to Respect
and Engagement and
Community and Growth.”
Listen!
An [obsession
Listening is ...
Listening is ...
Listening is ...
Listening is ...
Listening is ...
Listening is ...
Listening is ...
Listening is ...
Listening is ...
Listening is ...
Listening is ...
with] Listening is ... the ultimate mark of Respect.
the heart and soul of Engagement.
the heart and soul of Kindness.
the heart and soul of Thoughtfulness.
the basis for true Collaboration.
the basis for true Partnership.
a Team Sport.
a Developable Individual Skill.
the basis for Community.
the bedrock of Joint Ventures that work.
the bedrock of Joint Ventures that grow.
the core of effective Cross-functional Communication.*
(*Which is in turn Attribute #1 of organization effectiveness.)
Listening is ... the engine of superior EXECUTION.
Listening is ... the key to making the Sale.
Listening is ... the key to Keeping the Customer’s Business.
Listening is ... Service.
Listening is ... the engine of Network development.
Listening is ... the engine of Network maintenance.
Listening is ... the engine of Network expansion.
Listening is ... Social Networking’s “secret weapon.”
Listening is ... Learning.
Listening is ... the sine qua non of Renewal.
Listening is ... the sine qua non of Creativity.
Listening is ... the sine qua non of Innovation.
Listening is ... the core of taking diverse opinions aboard.
Listening is ... Strategy.
Listening is ... Source #1 of “Value-added.”
Listening is ... Differentiator #1.
Listening is ... Profitable.* (*The “R.O.I.” from listening is higher than from any
other single activity.)
Listening is … the bedrock which underpins a Commitment to EXCELLENCE!
*8 of 10 sales presentations fail
*50% failed sales
talking
“at” before
listening!
presentations …
—Susan Scott, “Let Silence Do the Heavy Lifting,” chapter title,
Fierce Conversations: Achieving Success at Work and in Life,
One Conversation at a Time
“I always write
‘LISTEN’ on
the back of my hand
before a meeting.”
Source: Tweet viewed @tom_peters
“EXPERIMENT
FEARLESSLY”
Tactic #1
Source: BusinessWeek, “Type A Organization Strategies: How to Hit a Moving Target”—
“RELENTLESS TRIAL
AND ERROR” *
Source: Wall Street Journal, cornerstone of effective approach to “rebalancing” company
portfolios in the face of changing and uncertain global economic conditions (11.08.10)
*WTTMSW/Whoever Tries The Most Stuff Wins
“If I had to
pick one failing
of CEOs, it’s
that …
—Co-founder of one of the largest investment services firms in the USA/world
“If I had to pick one failing of
they
don’t read
enough.”
CEOs, it’s that …
0/800
“Normal” =
“0
*There are …
for
ZERO
800”
… “normal people” in the history books.
“Insanely Great”
STEVE JOBS
“Radically Thrilling”
BMW
“Astonish me!”
(Sergei Diaghlev, to a lead dancer)
“Build something great!”
(Hiroshi Yamauchi, Nintendo, to a senior game designer)
“Make it immortal!”
(David Ogilvy, to a copywriter)
“You can’t behave in
a calm, rational
manner. You’ve got
to be out there on
the lunatic fringe.”
— Jack Welch
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!