Conrad Hilton …

Conrad Conrad Hilton …Hilton …

Conrad Hilton, at a gala Conrad Hilton, at a gala celebrating his career,celebrating his career,

was asked, was asked, “What was the most important lesson you’ve learned in you

long and distinguished career?” His immediate His immediate

answer …answer …

““remember remember to tuck the to tuck the

shower curtain shower curtain inside the inside the bathtubbathtub””

““Execution Execution isis strategy.”strategy.”

—Fred Malek—Fred Malek

““The art of war does not The art of war does not require complicated require complicated

maneuvers; the simplest maneuvers; the simplest are the best and common are the best and common

sense is fundamental. From sense is fundamental. From which one might wonder which one might wonder how it is generals make how it is generals make

blunders; blunders; it is because theit is because theyy trtryy to be clever to be clever.”.” —Napoleon—Napoleon

LONGLONG

Tom Peters’Tom Peters’

Excellence.Excellence.Always.Always.

Towards EXCELLENCE in Public Sector PerformanceTowards EXCELLENCE in Public Sector PerformanceRiyadh/2 November 2009Riyadh/2 November 2009(Slides at tompeters.com)(Slides at tompeters.com)

NOTENOTE:: To appreciateTo appreciate this presentation this presentation [and ensure [and ensure

that it is not a that it is not a messmess],], you need you need Microsoft fonts:Microsoft fonts:

“Showcard Gothic,”“Showcard Gothic,” “Ravie,”“Ravie,” “Chiller”“Chiller”

andand “Verdana”“Verdana”

Public Sector Public Sector

*U.S. Navy #1/Combat Engineer, Vietnam,*U.S. Navy #1/Combat Engineer, Vietnam, 1966-1968.1966-1968.*U.S. Navy #2/Pentagon, Naval Construction*U.S. Navy #2/Pentagon, Naval Construction Forces policy co-ordination, 1968-1970.Forces policy co-ordination, 1968-1970.*Co-founder, Stanford Graduate School of*Co-founder, Stanford Graduate School of Business “UMP”/“PMP” (Urban Business “UMP”/“PMP” (Urban ManagementManagement Program, Public Management Program),Program, Public Management Program), 1972-1977 1972-1977 *White House, 1973-1974 (Executive *White House, 1973-1974 (Executive Director,Director, Cabinet Committee on InternationalCabinet Committee on International Narcotics Control; Assistant to Director,Narcotics Control; Assistant to Director, Office of Management and Budget, FederalOffice of Management and Budget, Federal Drug Policy) Drug Policy) *Consultant-Advisor to Bob Stone, Director,*Consultant-Advisor to Bob Stone, Director, National Performance Review (“Re-National Performance Review (“Re-inventinginventing Government,” Al Gore initiative), 1992-Government,” Al Gore initiative), 1992-1996. 1996.

Lesson #1:Lesson #1: Captain “Day” vs. vs. Captain “Night”

#1#1

The greatest dangerThe greatest dangerfor most of usfor most of us

is not that our aim isis not that our aim istoo hightoo high

and we miss it,and we miss it,but that it isbut that it is

too lowtoo lowand we reach it.and we reach it.

MichelangeloMichelangelo

The failure to The failure to pursue pursue

EXCELLENCEEXCELLENCE is is incomprehensible incomprehensible

to me.to me.

Excellence. Always.Excellence. Always.If not Excellence, If not Excellence, what?what?If not Excellence If not Excellence now, when?now, when?

““Strive for Strive for Excellence. Excellence.

Ignore Ignore success.”success.” —Bill Young, race

car driver (courtesy Andrew Sullivan)

““Excellence can be obtained if you:Excellence can be obtained if you:

... care more than others think... care more than others think is wise;is wise; ... risk more than others think ... risk more than others think is safe;is safe; ... dream more than others think ... dream more than others think is practical;is practical; ... expect more than others think ... expect more than others think is possible.”is possible.”

Source: Anon.Source: Anon. (Posted @ tompeters.com by (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)K.Sriram, November 27, 2006 1:17 AM)

““If a man is called to be a street If a man is called to be a street sweeper, he should sweep streets sweeper, he should sweep streets even as Michelangelo painted, or even as Michelangelo painted, or Beethoven composed music, or Beethoven composed music, or Shakespeare wrote poetry. He Shakespeare wrote poetry. He should sweep streets so well should sweep streets so well

that all the hosts of heaven and that all the hosts of heaven and earth will pause to say, here livedearth will pause to say, here lived

a great street sweeper who did his a great street sweeper who did his job well.” job well.” —Martin Luther King Jr.—Martin Luther King Jr.

#2#2

14,00014,00020,00020,000

14,00014,00020,00020,000

3030

14,000/14,000/eeBayBay20,000/Amazon20,000/Amazon

3030/Craigslist/Craigslist

#3#3

19771977

MBWMBWAA

19821982

Excellence1982: The Bedrock “Eight Basics”Excellence1982: The Bedrock “Eight Basics”

1. A Bias for 1. A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. 3. AutonomAutonomyy and and EntreEntreppreneurshireneurshipp4. Productivity Through 4. Productivity Through PeoPeopplele5. 5. Hands OnHands On, , Value-DrivenValue-Driven6. 6. Stick toStick to the Knitting the Knitting7. 7. SimSimpplele Form, Form, LeanLean Staff Staff8. Simultaneous 8. Simultaneous Loose-TightLoose-Tight Properties” Properties”

““Breakthrough” 82*Breakthrough” 82*

People! People! CustomersCustomers

! ! Action! Action! Values! Values!

**In Search of ExcellenceIn Search of Excellence

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

Hard Is Hard Is SoftSoft (Plans, (Plans, ##ss))

Soft Is Soft Is HardHard (people, (people, customers, values, customers, values,

relationships)relationships)

““If I could have chosen not to tackle the IBM culture If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of comparison, changing the attitude and behaviors of

hundreds of thousands of people is very, very hard.hundreds of thousands of people is very, very hard.

[Yet] I came to see in my [Yet] I came to see in my time at IBM that culture time at IBM that culture

isn’t just one aspect of the isn’t just one aspect of the

game game ——it is the it is the gamegame.”.” —Lou Gerstner,—Lou Gerstner,

Who Says Elephants Can’t DanceWho Says Elephants Can’t Dance

20072007SiberiaSiberia

Why in Why in the the World did World did youyou go to go to SiberiaSiberia??

EnterpriseEnterprise* ** (*at its best):* ** (*at its best): An An emotionalemotional, , vitalvital, , innovativeinnovative, , joyfuljoyful, , creativecreative, , entrepreneurialentrepreneurial endeavor that endeavor that elicits maximum elicits maximum

concerted human concerted human potential potential in the in the wholeheartedwholehearted serviceservice of othersof others.****Employees, Customers, Suppliers, Communities, Owners, Temporary **Employees, Customers, Suppliers, Communities, Owners, Temporary partnerspartners

20072007SydneSydne

yy

Organizations Organizations existexist to to serveserve. Period.. Period.

Leaders Leaders live live toto serveserve. Period.. Period.

… … no less than no less than CathedralsCathedrals

in which the full and in which the full and awesome power of the awesome power of the

Imagination and Spirit and Imagination and Spirit and native Entrepreneurial flairnative Entrepreneurial flair

of diverse individualsof diverse individuals is is unleashed in passionate unleashed in passionate pursuit of … pursuit of … ExcellenceExcellence..

““The role of the Director is to The role of the Director is to create a space where the create a space where the

actors and actresses canactors and actresses can become more than become more than they’ve ever been they’ve ever been before, more than before, more than

they’ve dreamed of they’ve dreamed of beingbeing.”.” —Robert Altman, Oscar acceptance —Robert Altman, Oscar acceptance

speechspeech

““No matter what the No matter what the situation, situation, [the great manager’s][the great manager’s] first first

resrespponse is alwaonse is alwayys to think s to think about the individual about the individual

concerned and how thinconcerned and how thinggs s can be arrancan be arrangged to ed to helhelpp that that

individual exindividual expperience erience successsuccess.”.” —Marcus Buckingham, —Marcus Buckingham,

The One Thing You Need to KnowThe One Thing You Need to Know

““You have to You have to treat your treat your

employees like employees like customers.”customers.” —Herb Kelleher, —Herb Kelleher,

complete answer, upon being asked his “secrets to success”complete answer, upon being asked his “secrets to success”

Source: Joe Nocera, Source: Joe Nocera, NYTNYT, “Parting Words of an Airline Pioneer,” on the occasion , “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots 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; union took out a full-page ad in USA Today thanking HK for all he had done; across theacross the

way in Dallas American Airlines’ pilots were picketing the Annual Meeting)way in Dallas American Airlines’ pilots were picketing the Annual Meeting)

Thank you Peter Drucker/AIMThank you Peter Drucker/AIM

Our goal is to serve our customers brilliantly Our goal is to serve our customers brilliantly and profitably over the long haul.and profitably over the long haul.

Serving our customers brilliantly and profitably Serving our customers brilliantly and profitably over the long haul is a product of brilliantly over the long haul is a product of brilliantly serving, over the long haul, the people who serving, over the long haul, the people who

serve the customer.serve the customer.Hence, our job as leaders—the alpha and the Hence, our job as leaders—the alpha and the

omega and everything in between—is abetting omega and everything in between—is abetting the sustained growth and success and the sustained growth and success and

engagement and enthusiasm and commitment engagement and enthusiasm and commitment to Excellence of those, one at a time, who to Excellence of those, one at a time, who

directly or indirectly serve the ultimate directly or indirectly serve the ultimate customer.customer.

Source:Source: The Little BIG Things: 163 Ways to Pursue EXCELLENCE The Little BIG Things: 163 Ways to Pursue EXCELLENCE

We—leaders of every stripe—are in the “Human We—leaders of every stripe—are in the “Human Growth and Development and Success and Growth and Development and Success and

Aspiration to Excellence business.”Aspiration to Excellence business.”““We” [leaders] only grow when “they” [each and We” [leaders] only grow when “they” [each and

every one of our colleagues] are growing.every one of our colleagues] are growing.““We” [leaders] only succeed when “they” [each We” [leaders] only succeed when “they” [each and every one of our colleagues] are succeeding.and every one of our colleagues] are succeeding.

““We” [leaders] only energeticallyWe” [leaders] only energetically march toward Excellence when “they” [each and march toward Excellence when “they” [each and

every one of our colleagues] are energetically every one of our colleagues] are energetically marching toward Excellence.marching toward Excellence.

Period.Period.

Source:Source: The Little BIG Things: 163 Ways to Pursue EXCELLENCE The Little BIG Things: 163 Ways to Pursue EXCELLENCE

#4#4

““The ONE Question”:The ONE Question”: “In the last year [3 years, current job], name “In the last year [3 years, current job], name

the … the … three three peoplepeople … whose growth you’ve … whose growth you’ve

most contributed to. Please explain where they were at the most contributed to. Please explain where they were at the beginning of the year, where they are today, and where they are beginning of the year, where they are today, and where they are heading in the next 12 months. Please explain your development heading in the next 12 months. Please explain your development strategy in each case. Please tell me your biggest development strategy in each case. Please tell me your biggest development disappointment—looking back, could you or would you have done disappointment—looking back, could you or would you have done

anything differently? Please tell me about your greatest anything differently? Please tell me about your greatest development triumph—and disaster—in the last ten years. Whatdevelopment triumph—and disaster—in the last ten years. What are the ‘three big things’ you’ve learned about helping people are the ‘three big things’ you’ve learned about helping people

grow along the way.”grow along the way.”

#5#5

#1#1 cause of cause ofDis-satisfaction?Dis-satisfaction?

Employee retention & satisfaction:Employee retention & satisfaction:

OverwhelminOverwhelminggllyy, based on the , based on the

first-line first-line manamanagger!er!

Source: Marcus Buckingham & Curt Coffman, Source: Marcus Buckingham & Curt Coffman, First, Break All First, Break All the Rules: What the World’s Greatest Managers Do Differentlythe Rules: What the World’s Greatest Managers Do Differently

#6#6

““The doctor The doctor interruptsinterrupts after …*after …*

*Source: Jerome Groopman, *Source: Jerome Groopman, How Doctors ThinkHow Doctors Think

18”18”

[An obsession with] Listening is ... the ultimate mark[An obsession with] Listening is ... the ultimate mark of of RespectRespect..Listening is ... the heart and soul of Listening is ... the heart and soul of EngagementEngagement..Listening is ... the heart and soul of Listening is ... the heart and soul of KindnessKindness..Listening is ... the heart and soul of Listening is ... the heart and soul of ThoughtfulnessThoughtfulness..Listening is ... the basis for true Listening is ... the basis for true Collaboration.Collaboration.Listening is ... the basis for true Listening is ... the basis for true PartnershipPartnership..Listening is ... a Listening is ... a Team SportTeam Sport..Listening is ... a Listening is ... a Developable Individual SkillDevelopable Individual Skill.* .* (*Though women (*Though women are are farfar better at it than men.) better at it than men.)

Listening is ... the basis for Listening is ... the basis for CommunityCommunity..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures that workJoint Ventures that work..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures thatJoint Ventures that lastlast..Listening is ... the core of Listening is ... the core of effective Cross-functional effective Cross-functional Communication* Communication* (*Which is in turn Attribute #1 of (*Which is in turn Attribute #1 of organizational effectiveness.)organizational effectiveness.)

[cont.][cont.]

Listening is ... the engine of Listening is ... the engine of superior EXECUTION.superior EXECUTION.Listening is ... the key to Listening is ... the key to making the Sale.making the Sale.Listening is ... the key to Listening is ... the key to Keeping the Customer’s BusinessKeeping the Customer’s Business..Listening is ... the engine of Listening is ... the engine of Network development.Network development.Listening is ... the engine of Listening is ... the engine of Network maintenanceNetwork maintenance..Listening is ... the engine of Listening is ... the engine of Network expansionNetwork expansion..Listening is ... Social Networking’s Listening is ... Social Networking’s “secret weapon.”“secret weapon.”Listening is ... Listening is ... Learning.Learning.Listening is ... the Listening is ... the sine qua non of Renewalsine qua non of Renewal..Listening is ... the Listening is ... the sine qua non of Creativitysine qua non of Creativity..Listening is ... the Listening is ... the sine qua non of Innovationsine qua non of Innovation..Listening is ... the core of Listening is ... the core of taking Diverse opinions aboardtaking Diverse opinions aboard..Listening is ... Listening is ... StrategyStrategy..Listening is ... Listening is ... Source #1 of “Value-added.”Source #1 of “Value-added.”Listening is ... Listening is ... Differentiator #1.Differentiator #1.Listening is ... Listening is ... Profitable.*Profitable.* (*The “R.O.I.” from listening is higher than(*The “R.O.I.” from listening is higher than from any other single activity.)from any other single activity.)

Listening is … the bedrock which underpins a Listening is … the bedrock which underpins a Commitment toCommitment to EXCELLENCEEXCELLENCE

*Listening is of the*Listening is of the

utmost … utmost … strategicstrategic importance! importance!

*Listening is a proper … *Listening is a proper …

core core valuevalue ! !

*Listening is … *Listening is … trainabletrainable !!

*Listening is a … *Listening is a … professionprofession ! !

#7#7

““The The fourfour most most importantimportant wordswords in in any organization any organization

are …are …

The four most important words in any organizationThe four most important words in any organization

are …are … “What do “What do youyou

think?”think?”

Source: courtesy Dave Wheeler, posted at tompeters.comSource: courtesy Dave Wheeler, posted at tompeters.com

““The deepest human The deepest human

need is the …need is the … need to be need to be

appreciated.”appreciated.”—William James—William James

*appreciation is of the*appreciation is of the

utmost … utmost … strategicstrategic importance! importance!

*appreciation is a proper … *appreciation is a proper …

core core valuevalue ! !

*appreciation is … *appreciation is … trainabletrainable !!

*appreciation is a … *appreciation is a … professionprofession ! !

Tomorrow: How Tomorrow: How many times will many times will

you “ask the you “ask the question”?question”? [Count] [Count]

[Practice makes better] [Practice makes better]

[This is a [This is a STRATEGICSTRATEGIC skill.] skill.]

And the answer is ….And the answer is ….

otisotis

#8#8

Little =Little =

BIBIGG

Big carts =Big carts =

1.5X1.5XSource: Wal*MartSource: Wal*Mart

Socks = Socks = 10,00010,000

#9#9

<TG<TGWWand …and …

>TG>TGRR[Things Gone [Things Gone WRONGWRONG-Things Gone -Things Gone RIGHTRIGHT]]

““May I clean May I clean your your

glasses, glasses, sir?”sir?”

2-cent 2-cent candycandy

7X.7X. 7:30A-8:00P. 7:30A-8:00P.

F12A.F12A.7:30AM = 7:30AM = 7:15AM.7:15AM.

8:00PM = 8:00PM = 8:15PM.8:15PM.

It It BEGINSBEGINS (and (and ENDSENDS) )

in the …in the …

parkingparking lotlot**

*Disney*Disney

(1)(1) Amenable to rapid Amenable to rapid experimentation/experimentation/ failure “free” (PR, $$)failure “free” (PR, $$)(2)(2) Quick to implement/ Quick to implement/ Quick to Roll outQuick to Roll out(3)(3) Inexpensive to Inexpensive to implement/Roll outimplement/Roll out(4)(4) Huge multiplier Huge multiplier(5)(5) An “Attitude” An “Attitude”

““Experiences Experiences are as distinct are as distinct

from services as from services as services are from services are from goods.”goods.” —Joe Pine & Jim Gilmore, The

Experience Economy: Work Is Theatre & Every Business a Stage

#10#10

nonenone!!

Press Ganey AssocPress Ganey Assoc:: 139,380139,380 former former patients from patients from 225225 hospitals: hospitals:

nonenone of THE top 15 of THE top 15

factors determining factors determining PPatient atient

SSatisfaction referred to patient’s atisfaction referred to patient’s health health outcomeoutcome

P.S.P.S. directldirectly related to y related to StaffStaff InteractionInteraction

P.P.S.P.P.S. directldirectly correlated with y correlated with EmploEmployyee ee SatisfactionSatisfaction

Source: Source: Putting Patients FirstPutting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel, Susan Frampton, Laura Gilpin, Patrick Charmel

““There is a misconception that supportive interactions require There is a misconception that supportive interactions require more staff or more time and are therefore more costly. Although more staff or more time and are therefore more costly. Although

labor costs are a substantial part of any hospital budget, the labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget. interactions themselves add nothing to the budget.

Kindness is Kindness is freefree.. Listening to patients or answering their Listening to patients or answering their

questions costs nothing. It can be argued that negative questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive to their interactions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very costly. … needs or limiting their sense of control—can be very costly. …

Angry, frustrated or frightened patients may be combative, Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring far more time withdrawn and less cooperative—requiring far more time than it would have taken to interact with them initially in a than it would have taken to interact with them initially in a

positive way.”positive way.” ——Putting Patients FirstPutting Patients First, Susan Frampton, , Susan Frampton, Laura Gilpin, Patrick CharmelLaura Gilpin, Patrick Charmel

““KindnesKindness is s is

free.”free.”

““We are We are thoughtful in thoughtful in all we do.”all we do.”

ThoughtfulnessThoughtfulness is key to is key to customer retentioncustomer retention..ThoughtfulnessThoughtfulness is key to is key to emempploloyyee recruitmentee recruitment and satisfactionand satisfaction..Thoughtfulness Thoughtfulness is key to is key to brand perceptionbrand perception..ThoughtfulnessThoughtfulness is key to your ability to is key to your ability to look in look in the mirrorthe mirror —and tell your kids about your job. —and tell your kids about your job.

““ThoughtfulnessThoughtfulness is is freefree.”.”ThoughtfulnessThoughtfulness is key to is key to ssppeedineedingg thin thinggs us up—p— it it reduces frictionreduces friction..ThoughtfulnessThoughtfulness is key to is key to transtranspparencarency and y and eveneven cost containmentcost containment—it abets rather than stifles—it abets rather than stifles truth-telling.truth-telling.

*Thoughtfulness is of the*Thoughtfulness is of the

utmost … utmost … strategicstrategic importance! importance!

*thoughtfulness is a proper … *thoughtfulness is a proper …

core core valuevalue ! !

*Thoughtfulness is … *Thoughtfulness is … trainabletrainable !!

*Thoughtfulness is a … *Thoughtfulness is a …

professionprofession !!

““Courtesies of a small Courtesies of a small and trivial character are and trivial character are

the ones which strike the ones which strike deepest in the grateful deepest in the grateful

and appreciating heart.”and appreciating heart.”

—Henry Clay

#11#11

1/401/40

try it. Try it. Try it. try it. Try it. Try it. Try it. Try it. Try it.Try it. Try it. Try it.

Try it. Try it. Try it. Try it. Screw it Screw it up.up. Try it. Try it. Try Try it. Try it. Try

it. Try it. Try it. Try it. it. Try it. Try it. Try it. Try it. Try it. Screw it up.Screw it up. it. it. Try it. Try it. try it. Try it. Try it. try it. Try it.Try it. Screw it up.Screw it up.

Try it. Try it. Try it. Try it. Try it. Try it.

““We made mistakes, of course. Most of them were We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the omissions we didn’t think of when we initially wrote the

software. software. We fixed them by doing it over and over, We fixed them by doing it over and over, again and again.again and again. We do the same today. While our We do the same today. While our competitors are still sucking their thumbs trying to competitors are still sucking their thumbs trying to

make the design perfect, we’re already on prototype make the design perfect, we’re already on prototype

versionversion ##55.. By the time our rivals areBy the time our rivals are

ready with wires and screws, we are on versionready with wires and screws, we are on version

##1010.. It gets back to It gets back to

planning versus actingplanning versus acting: : We act We act from day onefrom day one; ; others plan how others plan how toto planplan——for monthsfor months.”.” —Bloomberg by —Bloomberg by

BloombergBloomberg

Culture of PrototypingCulture of Prototyping

“Effective prototyping may “Effective prototyping may

be be thethe most most valuablevaluable core core competencecompetence an an

innovative organization can innovative organization can hope to have.”hope to have.” —Michael Schrage—Michael Schrage

Think about It!?Think about It!?

Innovation Innovation = = Reaction to the Reaction to the

PrototypePrototype

Source: Michael SchrageSource: Michael Schrage

“SkunkWorks”/ “ParallelUniverse”

“the 1%1%

solution”Source: Scott Bedbury (Others: 3M, Google, Shell, NAVFAC)

Build a “School on top of a school”/Continuing-Exec

Ed (The Parallel (The Parallel Universe Strategy)Universe Strategy)

““Fail .Fail . Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

Read This!Read This!

Richard Farson & Ralph Keyes:Richard Farson & Ralph Keyes:

Whoever Makes Whoever Makes the Most Mistakes the Most Mistakes Wins: The Paradox Wins: The Paradox

of Innovationof Innovation

““It is not enough to It is not enough to ‘tolerate’ failure—‘tolerate’ failure—

you must you must

‘celebrate’‘celebrate’ failure.”failure.” —Richard Farson (—Richard Farson (Whoever Makes the Whoever Makes the

Most Mistakes WinsMost Mistakes Wins))

““RewardReward excellent failures.

PunishPunish mediocre successes.”

Phil Daniels, Sydney exec

#11A#11A

““Some people look for Some people look for things that went wrong things that went wrong

and try to fix them. I and try to fix them. I look for look for things that things that

went rightwent right,, and try to and try to build off them.”build off them.” —Bob Stone (Mr

ReGo)

““Somewhere in your Somewhere in your organization, groups of organization, groups of

people are people are alreadalreadyy doin doingg thinthinggs differentls differentlyy and and

better. To create lasting better. To create lasting change, find these areas change, find these areas of positive deviance and of positive deviance and

fan the flamesfan the flames.”.”

—Richard Pascale & Jerry Sternin, “Your Company’s Secret Change Agents,” HBR

““Where Where pplannerslanners ** raise high expectations raise high expectations but take no responsibility for meeting them, but take no responsibility for meeting them,

searcherssearchers prefer to work case-by-case, prefer to work case-by-case, using trial and error to tailor solutions to using trial and error to tailor solutions to

individual problems, fully aware that most individual problems, fully aware that most remedies must be homegrown.” remedies must be homegrown.” ——WSJWSJ, 0822.06 (on malaria , 0822.06 (on malaria

eradication, eradication, and hedge fund manager Lance Laifer)and hedge fund manager Lance Laifer)

[*“Planners [*“Planners [WHO, World Bank, etc][WHO, World Bank, etc] see poverty as a see poverty as a technical engineering problem that their technical engineering problem that their

answers will solve.” answers will solve.” —William Easterly—William Easterly]]

“All sorts of approaches need to be “All sorts of approaches need to be tried and we need feedback.” tried and we need feedback.” —Roger Bate—Roger Bate

Demos!Demos! Heroes! Heroes! Stories!Stories!

Best Best story story wins!wins!

Demo = Story“A key – perhaps the key –

to leadership is thethe effective communication effective communication

of a storof a story.”y.”—Howard Gardner, Leading Minds:

An Anatomy of Leadership

““StorytellinStorytelling g

is the core is the core of culture.”of culture.”

—Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell

#12#12

We We areare the the companycompany we keepwe keep

Measure “Strangeness”/Portfolio QualityMeasure “Strangeness”/Portfolio Quality

StaffStaffConsultantsConsultants

VendorsVendorsOut-sourcing Partners Out-sourcing Partners (#, Quality)(#, Quality)

Innovation Alliance PartnersInnovation Alliance PartnersCustomersCustomers

Competitors Competitors (who we “benchmark” against)(who we “benchmark” against)

Strategic Initiatives Strategic Initiatives Product Portfolio Product Portfolio (LineEx v. Leap)(LineEx v. Leap)

IS/IT ProjectsIS/IT ProjectsHQ LocationHQ LocationLunch MatesLunch Mates

LanguageLanguageBoardBoard

The “We are what we eat”The “We are what we eat”

axiom: axiom: At its core, At its core, evereveryy (!!!) (!!!) relationship-partnership decision relationship-partnership decision

(employee, vendor, customer, etc) is (employee, vendor, customer, etc) is a a stratestrateggicic decision about: decision about:

“Innovate,“Innovate, ‘Yes’ or ‘Yes’ or ‘No’ ” ”

““Who’s the most Who’s the most interesting person interesting person you’ve met in the you’ve met in the last 90 days? How last 90 days? How do I get in touch do I get in touch

with them?”with them?” —Fred Smith—Fred Smith

Vanity Fair:Vanity Fair: “What is your most “What is your most marked characteristic?”marked characteristic?”

Mike Bloomberg:Mike Bloomberg:

““Curiosity.”Curiosity.”

#13#13

4/404/40

De-cent-De-cent-ral-iz-ral-iz-a-tion!a-tion!

“‘Decentralization’ is not a piece of paper. It’s not me. It’s either in

your heart, or not.”

—Brian Joffe/BIDvest

“Best practice” = Best practice” =

ZEROZERO Standard Standard DeviationDeviation

volcanic volcanic struggle!struggle!

Enemy Enemy #1#1

I.C.D.I.C.D.Note 1:Note 1: Inherent/Inevitable/Inherent/Inevitable/Immutable Centralist DriftImmutable Centralist Drift

Note 2: Jim Burke’s 1-word vocabulary: “No.”Note 2: Jim Burke’s 1-word vocabulary: “No.”

Ex-e-Ex-e-cu-cu-

tion!tion!

““ExecutionExecution is is thethe jobjob of the of the

businessbusiness leaderleader.”.” —Larry Bossidy—Larry Bossidy & Ram

Charan/ Execution: The Discipline of Getting Things Done

“Execution is a

systematic systematic processprocess of rigorously

discussing hows and whats, tenaciously following through, and

ensuring accountability.” —Larry Bossidy & Ram Charan/ Execution:

The Discipline of Getting Things Done

(1)(1) sum of Projects sum of Projects == Goal (“Vision”) Goal (“Vision”)

(2)(2) sum of sum of Milestones =Milestones = project project

(3)(3) rapid Review + rapid Review + Truth-telling = Truth-telling = accountability accountability

““Costco figured out Costco figured out the the bigbig, , simplesimple things things

and and executedexecuted with with total total fanaticismfanaticism.”.”

—Charles Munger, Berkshire Hathaway

Ac-count-Ac-count-a-bil-ity!a-bil-ity!

““Mr Zetsche, Mr Zetsche, head of head of

Chrysler from Chrysler from 2000 to 2005, 2000 to 2005,

denied he denied he shouldshould

take any take any responsibility responsibility

forfor the U.S. the U.S.

carmaker’scarmaker’s troubles …” troubles …” ——Financial Financial

TimesTimes /05.29.07 /05.29.07

““GE has set a GE has set a standard of candor. standard of candor.

… There is no … There is no puffery. … puffery. … There isn’t There isn’t an ounce of denial in an ounce of denial in the placethe place.”.” —Kevin Sharer, CEO

Amgen, on the “GE mystique” (Fortune)

6:15A.M6:15A.M..

DECENTRALIZATIONDECENTRALIZATION..

EXECUTION.EXECUTION.ACCOUTABILITY.ACCOUTABILITY.

66:15A.M. :15A.M.

#14#14

“I am often asked by would-be entrepreneurs seeking

escape from life within huge corporate structures, ‘How do I build a small firm for

myself?’ The answer seems obvious …

“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How

do I build a small firm for myself?’ The answer seems

obvious: Buy a very Buy a very largelarge

one and just one and just waitwait.”.” —Paul Ormerod, Why Most Things

Fail: Evolution, Extinction and Economics

““Mr. Foster and his McKinsey colleagues Mr. Foster and his McKinsey colleagues collected detailed performance data stretching collected detailed performance data stretching

back back 4040 years for years for 1,0001,000 U.S. companies. U.S. companies.

TheTheyy found that found that nonenone ofof

the lon the longg-term survivors mana-term survivors managged to ed to outoutpperform the market. Worse, the erform the market. Worse, the lonlongger comer comppanies had been in the anies had been in the

database, the worse thedatabase, the worse theyy did did.” .” —Financial Times—Financial Times

““Data drawn from the real world Data drawn from the real world attest to a fact that is beyond attest to a fact that is beyond

our control:our control: Everything in existence tends to deteriorate.”

—Norberto Odebrecht, —Norberto Odebrecht, Education Through WorkEducation Through Work

#4 Japan#4 Japan#3 USA#3 USA

#2 China#2 China

#1 #1 GermanyGermany

Reason!!!Reason!!!

MittelstandMittelstand

Productivity Productivity (Small/All) (Small/All) >>

Productivity (Big)Productivity (Big)(USA-9%)(USA-9%)

(China.)(China.)

2626 = = 7373 – – 4747

Jim Penman/Jim Penman/Jim’s GroupJim’s Group

Jim’s Mowing CanadaJim’s Mowing CanadaJim’s Mowing UKJim’s Mowing UKJim’s AntennasJim’s Antennas

Jim’s BookkeepingJim’s BookkeepingJim’s Building MaintenanceJim’s Building Maintenance

Jim’s Carpet CleaningJim’s Carpet CleaningJim’s Car CleaningJim’s Car Cleaning

Jim’s Computer ServicesJim’s Computer Services

Jim’s Dog WashJim’s Dog WashJim’s Driving SchoolJim’s Driving School

Jim’s FencingJim’s FencingJim’s FloorsJim’s Floors

Jim’s PaintingJim’s PaintingJim’s PavingJim’s Paving

Jim’s Pergolas [gazebos]Jim’s Pergolas [gazebos]Jim’s Pool CareJim’s Pool Care

Jim’s Pressure CleaningJim’s Pressure CleaningJim’s RoofingJim’s Roofing

Jim’s Security DoorsJim’s Security DoorsJim’s TreesJim’s Trees

Jim’s Window CleaningJim’s Window CleaningJim’s WindscreensJim’s Windscreens

Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group

#15#15

problem #1.Opportunity

#1.

X X =XFX*=XFX*

**ExcellenceExcellence = Cross-functional Excellence = Cross-functional Excellence

Never Never waste a waste a lunch!lunch!

????????

% XF % XF lunches*lunches*

*Measure!*Measure!

(Way) Underutilized Lever(Way) Underutilized Lever

Space!Space!Space!Space!Space!Space!Space!Space!

Geologists + Geologists + Geophysicists + Geophysicists +

A little bit of love =A little bit of love =

OilOil

Lunch Lunch > SAP/> SAP/OracleOracle

The “XF-50”: 50 Ways to The “XF-50”: 50 Ways to Enhance Cross-Functional Enhance Cross-Functional Effectiveness and Deliver Effectiveness and Deliver

Speed, “Service Speed, “Service Excellence” and “Value-Excellence” and “Value-

added Customer added Customer ‘Solutions’”‘Solutions’”

#15#15

450/8450/8

Lisbon/New Biz:Lisbon/New Biz:

WeeksWeeks to …to …

Minutes Minutes (!!!!)(!!!!)

“One bank is currently One bank is currently claiming to … claiming to …

‘leverage its global footprint to provide effective financial solutions for its customers by providing a

gateway to diverse markets.’”

——Charles HandyCharles Handy

“I assume that it is I assume that it is just saying that it isjust saying that it is

there tothere to ‘‘helhelpp its its customers customers

wherever thewherever theyy are’are’.”.”

—Charles Handy

#16#16

#1 Truthteller …#1 Truthteller …

You = You = Your Your

calendarcalendar***Calendars *Calendars nevernever lielie

““I used to have a rule for myself that at any point in I used to have a rule for myself that at any point in time I wanted to have in mind time I wanted to have in mind — as it so happens, — as it so happens, also in writing, on a little card I carried around with also in writing, on a little card I carried around with me — the three big things I was trying to get done. me — the three big things I was trying to get done.

ThreeThree..

Not two. Not two. Not four. Not four. Not five.Not five.Not ten.Not ten.Three.”Three.”

— Richard Haass, — Richard Haass, The Power to PersuadeThe Power to Persuade

““Dennis, you need a … Dennis, you need a …

‘To-don’t ’‘To-don’t ’

List !”List !”

““You must You must bebe the change you the change you

wish to see in the wish to see in the world.”world.”

Gandhi

John Sawhill/Major StrategicJohn Sawhill/Major Strategic

Initiative: Initiative: “What areas should “What areas should the Conservancy focus on the Conservancy focus on

and more important— and more important—

what activities what activities should we stoshould we stopp

doindoing?”g?”Source: Bill Birchard, Source: Bill Birchard, Nature’s Keepers: The Remarkable Story of How The Nature Nature’s Keepers: The Remarkable Story of How The Nature

Conservancy Became the Largest Environmental Organization in the WorldConservancy Became the Largest Environmental Organization in the World

““To develop others, To develop others, start with yourself.”start with yourself.”

—Marshall Goldsmith—Marshall Goldsmith

““Being aware of Being aware of yourself and how you yourself and how you

affect everyone around affect everyone around you you is what is what

distindistingguishes a suuishes a supperior erior leaderleader.”.” —Edie Seashore (—Edie Seashore (Strategy + BusinessStrategy + Business

#45)#45)

#17#17

L(+21) = L(-L(+21) = L(-21)21)

Leadership(21A.D.) = Leadership(21A.D.) = Leadership(21B.C.)Leadership(21B.C.)

GiveGive good good tea! tea!

The Real World’s “Little” Rule BookThe Real World’s “Little” Rule Book

Ben/teaBen/teaNorm/teaNorm/tea

DDE/make friendsDDE/make friendsWFBuckley/make friends-help friendsWFBuckley/make friends-help friends

Gust/Suck downGust/Suck downCharlie/poker pal-BOFCharlie/poker pal-BOF

Eddie VII/dance-flatter-mingle-learn the languageEddie VII/dance-flatter-mingle-learn the languageVlad/birthday party of outgroup guy’s wifeVlad/birthday party of outgroup guy’s wife

CIO/finance networkCIO/finance networkERP installer/consult-“one line of code”ERP installer/consult-“one line of code”

GE Energy/make friends risk assessmentGE Energy/make friends risk assessment

GWB/check the invitation listGWB/check the invitation listGHWB/T-notesGHWB/T-notesHank/60 callsHank/60 callsMarkM/5K-5MMarkM/5K-5M

Delaware/show upDelaware/show up

Oppy/snub Lewis StraussOppy/snub Lewis StraussNM/smileNM/smile

-$4.3T/tin ear-$4.3T/tin eartp.com/Big 4-What do you think?tp.com/Big 4-What do you think?

Women/genesWomen/genesBanker/after churchBanker/after church

Total Bloody Mess/Can they pay back the loan?Total Bloody Mess/Can they pay back the loan?

THE PROBLEM IS THE PROBLEM IS RARELY/NEVER THE RARELY/NEVER THE

PROBLEM. THE PROBLEM. THE RESPONSE TO THE RESPONSE TO THE

PROBLEM INVARIABLY PROBLEM INVARIABLY ENDS UP BEING THE ENDS UP BEING THE

REAL PROBLEMREAL PROBLEM.**PERCEPTION IS ALL THERE IS!*PERCEPTION IS ALL THERE IS!

““I regard I regard aappoloologgizinizing as the g as the most magical, healing, most magical, healing,

restorative gesture human restorative gesture human beings can make. It is the beings can make. It is the

centerpiece of my work with centerpiece of my work with executives who want to get executives who want to get better.”better.” —Marshall Goldsmith—Marshall Goldsmith, What Got You , What Got You

Here Won’t Get You There: How Successful People BecomeHere Won’t Get You There: How Successful People Become Even More SuccessfulEven More Successful

#18#18

Excellence.Excellence.Always.Always.

If not Excellence, If not Excellence, what?what?If not Excellence If not Excellence now, when?now, when?

““Breakthrough” 82*Breakthrough” 82*

People! People! CustomersCustomers

! ! Action! Action! Values! Values!

**In Search of ExcellenceIn Search of Excellence