LONG Tom Peters’ EXCELLENCE. ALWAYS. ZIM Integrated Shipping Services NEWAVE08/AgenTeam 02 July 2008/Macau (Taipa-Coloane)

LONGLONG

Tom Peters’ Tom Peters’

EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.

ZIM Integrated Shipping ServicesZIM Integrated Shipping ServicesNEWAVE08/AgenTeamNEWAVE08/AgenTeam

02 July 2008/Macau (Taipa-Coloane)02 July 2008/Macau (Taipa-Coloane)

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”

Auckland/pmAuckland/pmtaipei/vptaipei/vp

singapore/pmsingapore/pmbangkok/dpmbangkok/dpm

flandersflandersamsterdam/MPamsterdam/MPss

barcelona/mbarcelona/maa

Kuala Lumpur/CMKuala Lumpur/CMlisbon/mlisbon/maa

dublin/pmdublin/pmbuenos airesbuenos aires

são paulosão pauloWarsaw/MPWarsaw/MPss

london/mplondon/mpss

milanmilanSEOUL/MSEOUL/Maa

mexico d.f./mmexico d.f./mistanbul/dpmistanbul/dpm

dubai/rfmdubai/rfmoman/rfmoman/rfm

usausastockholm/mpstockholm/mpss

mauritius/pmmauritius/pmjohannesburgjohannesburgbucharest/CMbucharest/CM

Slides at …Slides at …

tompeters.comtompeters.com

Thank you Thank you Ike, Ben Ike, Ben

and Delawareand Delaware

““Allied commands depend Allied commands depend on mutual confidence on mutual confidence [and this confidence] [and this confidence] is gained, above all is gained, above all

through the through the develodeveloppmentment of friendshiof friendshippss.”.”

——General D.D. Eisenhower, General D.D. Eisenhower, Armchair GeneralArmchair General* (05.08)* (05.08)

*“Perhaps his most outstanding ability [at West Point] was*“Perhaps his most outstanding ability [at West Point] was the ease with which he made friends and earned the trust the ease with which he made friends and earned the trust of fellow cadets who came from widely varied backgrounds;of fellow cadets who came from widely varied backgrounds; it was a quality that would pay great dividends during his it was a quality that would pay great dividends during his

future coalition commandfuture coalition command

GiveGive good good tea! tea!

““eighty eighty percent of percent of success is success is

showing up.” showing up.” ——Woody AllenWoody Allen

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

ThankThank you Rich! you Rich!

““Mapping your Mapping your competitive competitive position”*position”*

or …or …

*Rich D’Aveni/*Rich D’Aveni/HBRHBR

The The “Have “Have you …”you …”

50*50**See *See Appendix OneAppendix One

1. Have you in the1. Have you in the last last 1010 daysdays … … visitedvisited a a customer?customer?2. Have you called a 2. Have you called a customer … customer … TODAYTODAY?? * * * *Note: See Note: See APPENDIXAPPENDIX ONEONE for full list for full list

““We Have …We Have …

ThankThank you, you,

Howard!Howard!

InternalInternal organizational organizational excellence = excellence =

Deepest “Blue Deepest “Blue Ocean”Ocean”

““New technology, by itself, has little economic New technology, by itself, has little economic benefit. … The economic benefits arise not from benefit. … The economic benefits arise not from

innovation itself, but from the entrepreneurs who innovation itself, but from the entrepreneurs who eventually discover ways to put innovation to eventually discover ways to put innovation to

practical use— practical use— and, most critically, and, most critically, from the from the ororgganizationalanizational chanchangges es through which through which

businesses reshape businesses reshape themselves to take themselves to take advantage of new advantage of new

technology.”technology.” —Marc Levinson, The Box: —Marc Levinson, The Box: How the Shipping Container Made the World Smaller and How the Shipping Container Made the World Smaller and

the World Economy Biggerthe World Economy Bigger

ThankThank you , Phil you , Phil

““RewardReward excellent failures.

PunishPunish mediocre

successes.”Phil Daniels, Sydney exec

Thank you, Thank you, EleanorEleanor

““Do one Do one thing every thing every

day that day that scares you.”scares you.”

—Eleanor Roosevelt

#1#1

“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 Buy a very large one very large one and just waitand just wait.”.”

—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 collected detailed performance data

stretching back stretching back 4040 years for years for 1,0001,000 U.S. U.S. companies.companies. They found that

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—Financial Times

Dick Kovacevich: You don’t get better by

being bigger. You get worse.”

““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

#1.1#1.1

#1 Exporter?#1 Exporter?

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

#2 China#2 China

#1 #1 GermanyGermany

Reason!!!Reason!!!

MittelstandMittelstand

Or …Or … Goldmann Goldmann ProduktionProduktion

ss(11/50%/$5M/”dip and coat,” expensive (11/50%/$5M/”dip and coat,” expensive

pigments vs “through coloring,” fades Bekro pigments vs “through coloring,” fades Bekro Chemie)Chemie)

#2#2

1/421/42

“This is so simple it sounds stupid, but it is amazing how few oil people really

understand that you only you only find oil if you find oil if you drill wellsdrill 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 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, again We fixed them by doing it over and over, again and again.and again. We do the same today. While our competitors We do the same today. While our competitors are still sucking their thumbs trying to make the design are still sucking their thumbs trying to make the design

perfect, we’re already on prototype versionperfect, we’re already on prototype version ##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

““ExperimenExperiment t

fearlessly”fearlessly”Source: BW0821.06, Type A Organization Strategies/

“How to Hit a Moving Target”—Tactic #1Tactic #1

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

““FAIL, FAIL FAIL, FAIL AGAIN. FAIL AGAIN. FAIL BETTER.”BETTER.”

—Samuel Beckett

““You miss You miss

100100%%

of the shots of the shots you never you never

take.”take.” —Wayne—Wayne GretzkyGretzky

Excellence1982: The Bedrock “Eight Basics”

1. 1. A Bias for ActionA Bias for Action2. Close to the Customer2. Close to the Customer3. Autonomy and Entrepreneurship3. Autonomy and Entrepreneurship4. Productivity Through People4. Productivity Through People5. Hands On, Value-Driven5. Hands On, Value-Driven6. Stick to the Knitting6. Stick to the Knitting7. Simple Form, Lean Staff7. Simple Form, Lean Staff8. Simultaneous Loose-Tight Properties” 8. Simultaneous Loose-Tight Properties”

#2.1#2.1

Speed/ Speed/ Tempo/Tempo/

o.o.d.a. loops/ o.o.d.a. loops/ “Metabolic “Metabolic

Management”Management”

Messin’ with Messin’ with their minds: He their minds: He

who has the who has the quickest quickest

“O.O.D.A. “O.O.D.A. Loops”* wins!Loops”* wins!

*Observe. Orient. Decide. Act. /Col. John Boyd

#3#3

2-2-5/425/42

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

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.”

The True Logic* of Decentralization:

6 divisions = 6 “tries”6 divisions = 6 “tries”

6 divisions = 6 6 divisions = 6 DIFFERENTDIFFERENT leaders = 6 leaders = 6 INDEPENDENTINDEPENDENT

“tries” = Max probability of “tries” = Max probability of “win”“win”

6 divisions = 6 6 divisions = 6 veryvery DIFFERENT DIFFERENT leaders = 6 leaders = 6 veryvery INDEPENDENT INDEPENDENT

“tries” = Max probability of “tries” = Max probability of ““far outfar out”/””/”3-sigma3-sigma”” “win” “win”

*“Driver”: Law of Large #s

“Best practice” = Best practice” =

ZEROZERO Standard Standard DeviationDeviation

““Parallel Parallel Universe” …Universe” … China!!!!!!!China!!!!!!!

Decentralization Decentralization vs Centralization vs Centralization

= “That’s = “That’s AllAll There Is”There Is” (from (from

childrearing 101 to the childrearing 101 to the Federalist PapersFederalist Papers to Org.2007)to Org.2007)

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

(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

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

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

… There is no … There is no puffery. … puffery. … There There isn’t an ounce of isn’t an ounce of

denial in the placedenial in the place.”.” —

Kevin Sharer, CEO Amgen, on the “GE mystique” (Fortune)

CF: CF: 30%30% (no (no

salesfolk)salesfolk)

MH: MH: 80%80% (salesfolk)(salesfolk)

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

DECENTRALIZATIONDECENTRALIZATION..

EXECUTION.EXECUTION.ACCOUTABILITY.ACCOUTABILITY.

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

#3.1#3.1

K.i.s.s.K.i.s.s.*Keep It Simple, Stupid*Keep It Simple, Stupid

Case: The Case: The “simple” “simple” Checklist!Checklist!

90K in U.S.A. 90K in U.S.A. ICUsICUs on any on any given day; given day; 178178 steps/day steps/day

in ICU. in ICU.

50%50% stays result stays result

in “serious complication”in “serious complication”

Source: Atul Gawande, “The Checklist” (Source: Atul Gawande, “The Checklist” (New YorkerNew Yorker, 1210.07), 1210.07)

****Peter PronovostPeter Pronovost, Johns Hopkins, , Johns Hopkins, 20012001**Checklist, line infections**Checklist, line infections**1/3**1/3rdrd at least one error when he started at least one error when he started**Nurses/permission to stop procedure **Nurses/permission to stop procedure if doc, other not following checklistif doc, other not following checklist**In 1 year, 10-day line-infection rate:**In 1 year, 10-day line-infection rate:

11% to … 11% to … 0%0%

Source: Atul Gawande, “The Checklist” (Source: Atul Gawande, “The Checklist” (New YorkerNew Yorker, 1210.07), 1210.07)

**Docs, nurses make own **Docs, nurses make own checklists on whateverchecklists on whatever process-procedure they choose process-procedure they choose**Within **Within weeksweeks, average stay in , average stay in

ICUICU down down 50%50%Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07)Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07)

“Beware of the Beware of the tyranny of making tyranny of making SmallSmall

Changes to Changes to SSmallmall Things. Things.

Rather, make Rather, make BiBig g Changes to Changes to BiBigg

Things.”Things.” —Roger Enrico, former Chairman, —Roger Enrico, former Chairman,

PepsiCoPepsiCo

““Beware of the tyranny of making Beware of the tyranny of making SSmallmall Changes to Changes to

SSmallmall Things.Things. Rather, Rather, make make BigBig Changes to Changes to Big Big ThingsThings … …

using using Small, Almost Small, Almost Invisible Invisible

Straightforward Straightforward LeversLevers with with BiBigg

SSyystemic Imstemic Imppactact.”.” —TP—TP

““Everything matters”Everything matters”

-80%-80%Source:Source: Nudge,Nudge, Richard Thaler and Cass Richard Thaler and Cass

Sunstein, etching of fly in the urinalSunstein, etching of fly in the urinal reduces “spillage” by 80%, Schiphol Airportreduces “spillage” by 80%, Schiphol Airport

#4#4

+1/+1/4242

X X =XFX*=XFX*

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

**Stanford/Hagadorn/Interdisciplinary **Stanford/Hagadorn/Interdisciplinary raison d’ raison d’êêtretre**Conoco/geologists-geophysicists**Conoco/geologists-geophysicists**Old HP/R&D-Sales**Old HP/R&D-Sales**Schlumberger IPM-IBM Global Services-**Schlumberger IPM-IBM Global Services- UPS Logistics, HP-EDS (“bet the company” on UPS Logistics, HP-EDS (“bet the company” on integrating others’ product and service integrating others’ product and service delivery throughout the supply chain) delivery throughout the supply chain)**GSK/7 CEDDs**GSK/7 CEDDs**Chiat/Day**Chiat/Day**Batalden/DHMC/“clinical microsystems”**Batalden/DHMC/“clinical microsystems”**JCS assignment pre-Flag**JCS assignment pre-Flag**Etc.**Etc.**Etc.**Etc.

The “XF-50”: 50 Ways The “XF-50”: 50 Ways to Enhance to Enhance CrossCross--

Functional Functional EffectivenessEffectiveness and and

Deliver Speed, Deliver Speed, “Service Excellence” “Service Excellence”

and “Value-added and “Value-added Customer ‘Solutions’”Customer ‘Solutions’”

1. 1. It’s our organization to make work—or not. It’s not “them,” the It’s our organization to make work—or not. It’s not “them,” the outside world that’s the problem. outside world that’s the problem. The enemy is us.The enemy is us. Period. Period.

2. Friction-free! Dump 90% of “middle managers”—most are advertent or inadvertent “power 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, freaks.” We are all—every one of us—in the Friction Removal Business, one moment at a time, now and forevermore.now and forevermore.3. No “stovepipes”! “Stove-piping,” “Silo-ing” is an 3. No “stovepipes”! “Stove-piping,” “Silo-ing” is an Automatic Firing OffenseAutomatic Firing Offense. Period. No . Period. No appeals. (Within the limits of civility, somewhat “public” firings are not out of the question—that 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.)is, make one and all aware why the axe fell.)4.4. Everything Everything on the Web. This helps. A lot. (“Everything” = Big word.)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 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.imperative in a Burn-the-Silos strategy.

6.6. Project managers rule!!Project managers rule!! Project managers running XF (cross- Project managers running XF (cross-functional) projects are the Elite of the organization, and seen as functional) projects are the Elite of the organization, and seen as such and treated as such. (The likes of construction companies such and treated as such. (The likes of construction companies have practiced this more or less forever.)have practiced this more or less forever.)

7. “Value-added Proposition” = Application of integrated resources. (From the entire supply-7. “Value-added Proposition” = Application of integrated resources. (From the entire supply-chain.) To deliver on our emergent business raison d’etre, and compete with the likes of our chain.) 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 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” 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 pure and simple a product of XF co-operation; “the product isis the co-operation” is not much the co-operation” is not much of a stretch.of a stretch.

Never Never waste a waste a lunch!*lunch!*

????????

% XF % XF luncheslunches**

*Measure!*Measure!

??????????????

“Success doesn’t depend on the number of “Success doesn’t depend on the number of people you know; it depends on the number people you know; it depends on the number

of people you know in of people you know in hihigghh places!”places!”

oror

“Success doesn’t depend on the number of “Success doesn’t depend on the number of people you know; it depends on the number people you know; it depends on the number

of people you know in of people you know in lowlow places!” places!”

Promote “FRSs” (Promote “FRSs” (Friction Friction Reduction SpecialistsReduction Specialists—nobody —nobody can figure out what they “do’” can figure out what they “do’” but when they’re around things but when they’re around things mysteriously get done mysteriously get done (Women? Not clear)(Women? Not clear)

FRSs kin to HROs, IROs (FRSs kin to HROs, IROs (Hurdle Hurdle Removal OfficersRemoval Officers, , Impedance Impedance Reduction OfficersReduction Officers))

8.8. “XF work” is the direct work of leaders! “XF work” is the direct work of leaders!9.9. “Integrated solutions” = Our “Culture.” “Integrated solutions” = Our “Culture.” (Therefore: XF = Our culture.) (Therefore: XF = Our culture.)10. Partner with “best-in-class” only. Their pursuit of Excellence helps us get beyond 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 petty bickering. An all-star team has little time for anything other than delivering on the (big) Client promise.the (big) Client promise.11.11. All functions are created equal! All functions are created equal! All functions contribute equally! All = All. All functions contribute equally! All = All.12. All functions are “PSFs,” Professional Service Firms. “Professionalism” is the 12. All functions are “PSFs,” Professional Service Firms. “Professionalism” is the watchword—and true Professionalism rise above turf wars. You are your projects, 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, your legacy is your projects—and the legacy will be skimpy indeed unless you pass, with flying colors, the “works well with others” exam!with flying colors, the “works well with others” exam!13.13. We are all in sales! We are all in sales! We all (a-l-l) “sell” those Integrated Client Solutions. Good 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 don’t blame others for screw-ups—the Clint doesn’t care. Good salespeople are “quarterbacks” who make the system work-deliver.salespeople are “quarterbacks” who make the system work-deliver.

14. 14. We all invest in “wiring” the Client organization—we We all invest in “wiring” the Client organization—we develop comprehensive relationships in every part develop comprehensive relationships in every part (function, level) of the Client’s organization. (function, level) of the Client’s organization. We pay We pay special attention to the so-called “lower levels,” short special attention to the so-called “lower levels,” short on glamour, long on the ability to make things happen at on glamour, long on the ability to make things happen at the “coalface.”the “coalface.”

15. We all “live the Brand”—which is Delivery of Matchless Integrated Solutions 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 which transform the Client’s organization. To “live the brand” is to become a raving fan of XF co-operation.fan of XF co-operation.

16. We use the word 16. We use the word “partner”“partner” until we want to barf! (Words matter! A lot!) until we want to barf! (Words matter! A lot!)17. We use the word 17. We use the word “team”“team” until we want to barf. (Words matter! A lot!) until we want to barf. (Words matter! A lot!)18. We use the word 18. We use the word “us”“us” until we want to barf. (Words matter! A lot!) until we want to barf. (Words matter! A lot!)19. We obsessively seek Inclusion—and abhor exclusion. We want more 19. We obsessively seek Inclusion—and abhor exclusion. We want more people from more places (internal, external—the whole “supply chain”) people from more places (internal, external—the whole “supply chain”) aboard in order to maximize systemic benefits.aboard in order to maximize systemic benefits.20. Buttons & Badges matter—we work relentlessly at team (XF team) 20. Buttons & Badges matter—we work relentlessly at team (XF team) identity and solidarity. (“Corny”? Get over it.)identity and solidarity. (“Corny”? Get over it.)21.21. All (almost all) rewards are team rewards. All (almost all) rewards are team rewards.22. We keep base pay rather low—and give whopping bonuses for 22. We keep base pay rather low—and give whopping bonuses for excellent team delivery of “seriously cool” cross-functional Client benefits.excellent team delivery of “seriously cool” cross-functional Client benefits.

23.23. WE NEVER BLAME OTHER PARTS OF THE WE NEVER BLAME OTHER PARTS OF THE ORGANIZATION FOR SCREWUPSORGANIZATION FOR SCREWUPS..24.24. WE TAKE THE HEAT—THE WHOLE TEAM. (For WE TAKE THE HEAT—THE WHOLE TEAM. (For anything and everything.) (Losing, like winning, is a anything and everything.) (Losing, like winning, is a team affair.)team affair.)25.25. “BLAMING” IS AN AUTOMATIC FIRING OFFENSE. “BLAMING” IS AN AUTOMATIC FIRING OFFENSE.

26.26. “Women rule.” “Women rule.” Women are simply better at the XF communications Women are simply better at the XF communications stuff—less power obsessed, less hierarchically inclined, more group-team stuff—less power obsessed, less hierarchically inclined, more group-team oriented.oriented.

27. Every member of our team is an honored contributor. “XF project Excellence” 27. Every member of our team is an honored contributor. “XF project Excellence” is an “all hands” affair.is an “all hands” affair.28. We 28. We are are our XF Teams! XF project teams are how we get things done.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 29. “Wow Projects” rule, large or small—Wow projects demand by definition XF Excellence.Excellence.30. We routinely attempt to unearth and then reward “small gestures” of XF co-30. We routinely attempt to unearth and then reward “small gestures” of XF co-operation.operation.31. We invite Functional Bigwigs to our XF project team reviews.31. We invite Functional Bigwigs to our XF project team reviews.32. We 32. We insist insist on Client team participation—from all functions of the Client on Client team participation—from all functions of the Client organization.organization.33. An “Open talent market” helps make the projects “silo-free.” People want in on 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 the project because of the opportunity to do something memorable—no one will tolerate delays based on traditional functional squabbling. tolerate delays based on traditional functional squabbling. 34. Flat! Flat = Flattened Silos. Flat = Excellence based on XF project outcomes, 34. Flat! Flat = Flattened Silos. Flat = Excellence based on XF project outcomes, not power-hoarding within functional boundaries. not power-hoarding within functional boundaries. 35. New “C-level”? 35. New “C-level”? We more or less need a “C-level” job titled Chief Bullshit We more or less need a “C-level” job titled Chief Bullshit Removal Officer.Removal Officer. That is, some kind of formal watchdog whose role in life is to 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.make cross-functionality work, and I.D. those who don’t get with the program.

36.36. Huge (H-U-G-E) co-operation bonuses.Huge (H-U-G-E) co-operation bonuses. Senior team members Senior team members who conspicuously shine in the “working together” bit are who conspicuously shine in the “working together” bit are rewarded or punished Big Time. (A million bucks in one case I rewarded or punished Big Time. (A million bucks in one case I know—and a non-cooperating very senior was sacked.)know—and a non-cooperating very senior was sacked.)

37.37. Get physical!!Get physical!! “Co-location” is the most powerful “culture changer. “Co-location” is the most powerful “culture changer. Physical X-functional proximity is almost a guarantee (yup!) of remarkably Physical X-functional proximity is almost a guarantee (yup!) of remarkably improved co-operation—to aid this one needs flexible workspaces that can be improved co-operation—to aid this one needs flexible workspaces that can be mobilized for a team in a flash.mobilized for a team in a flash.38.38. Ad hoc. Ad hoc. To improve the new “X-functional Culture,” little XF teams should be 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, 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.”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 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.some one who has been pro-active on the XF dimension.

40. 40. Formal evaluations. Everyone, starting with the receptionist, Formal evaluations. Everyone, starting with the receptionist, should have an important XF rating component in their should have an important XF rating component in their evaluation.evaluation.41. Demand XF experience for, especially, senior jobs. The military requires all 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 would-be generals and admirals to have served a full tour in a job whose only goals were cross-functional. Great idea! goals were cross-functional. Great idea! 42. Early project “management” experience. Within days, literally, of coming 42. Early project “management” experience. Within days, literally, of coming aboard folks should be “running” some bit of a project, working with folks from aboard folks should be “running” some bit of a project, working with folks from other functions—hence, “all this” becomes as natural as breathing.other functions—hence, “all this” becomes as natural as breathing.43. “Get ’em out with the customer.” Rarely does the accountant or bench 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 scientist call one the customer. Reverse that. Give everyone more or less regular “customer-facing experiences.” One learns quickly that the customer is not “customer-facing experiences.” One learns quickly that the customer is not interested in our in-house turf battles!interested in our in-house turf battles!

44. Put “it” on the–every agenda. XF “issues to be resolved” should be on every 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 agenda—morning project team review, weekly exec team meeting, etc. A “next step” within 24 hours (4?) ought to be part of the resolution.step” within 24 hours (4?) ought to be part of the resolution.45. XF “honest broker” or ombudsman. The ombudsman examines XF “friction 45. XF “honest broker” or ombudsman. The ombudsman examines XF “friction events” and acts as Conflict Resolution Counselor. (Perhaps a formal conflict events” and acts as Conflict Resolution Counselor. (Perhaps a formal conflict resolution agreement?)resolution agreement?)46. Lock it in! XF co-operation, central to any value-added mission, should be an 46. Lock it in! XF co-operation, central to any value-added mission, should be an explicit part of the “Vision Statement.”explicit part of the “Vision Statement.”47. Promotions. 47. Promotions. Every promotion, no exceptions, should put XF Excellence in the Every promotion, no exceptions, should put XF Excellence in the top 5 (3?) evaluation criteria.top 5 (3?) evaluation criteria.48. Pick partners based on their “co-operation proclivity.” Everyone must be on 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 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 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 access anyone at any level in any function of their organization without bureaucratic barriers?bureaucratic barriers?49. Fire vendors who don’t “get it”—more than “get it,” welcome “it” with49. Fire vendors who don’t “get it”—more than “get it,” welcome “it” withopen arms.”open arms.”50.50. Jaw. Jaw. Jaw. Jaw. Jaw. Jaw. Talk XF cooperation-value-added at every opportunity. Become Talk XF cooperation-value-added at every opportunity. Become a relentless bore!a relentless bore!

51.51. Excellence! There is a state of XF Excellence! There is a state of XF Excellence per se. Talk about it. Pursue Excellence per se. Talk about it. Pursue it. Aspire to nothing less.it. Aspire to nothing less.

1.1. Most Tries Wins Most Tries Wins2.2. DECENTRALIZATION.DECENTRALIZATION.3.3. EXECUTION. EXECUTION.4.4. ACCOUTABILITY. ACCOUTABILITY.5.5. 6 6:15A.M.:15A.M.6.6. XFX XFX

#5#5

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

“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 very, very hard. [Yet] I came to see in my time at IBM that culture

isn’t just one aspect of the

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

Who Says Elephants Can’t Dance

#5.1#5.1


R.O.I.RR.O.I.R..

RReturn eturn OOn n

IInvestment In nvestment In

RRelationshipselationships

““The capacity to develop close and The capacity to develop close and enduring relationships is the mark of enduring relationships is the mark of a leader. Unfortunately, many leaders a leader. Unfortunately, many leaders of major companies believe their job of major companies believe their job is to create the strategy, organization is to create the strategy, organization

structure and organizational structure and organizational processes—then they just delegate processes—then they just delegate

the work to be done, remaining aloof the work to be done, remaining aloof from the people doing from the people doing

the work.”the work.” —Bill George, —Bill George, Authentic LeadershipAuthentic Leadership

FYI:FYI: “Relationship “Relationship power” = power” =

““MonopolyMonopoly powerpower””

FYI:FYI: “Sustainable “Sustainable competitive competitive

advantage” = advantage” = “Relationship-based “Relationship-based

advantage” advantage” (period.)(period.)

#5.2#5.2

““The four most The four most important words in any important words in any

organizationorganization

are …are … ‘What do ‘What do you think?’you think?’ ” ”

Source: courtesy Dave Wheeler,Source: courtesy Dave Wheeler, posted at tompeters.com, source ofposted at tompeters.com, source of

original unknown (0609.08) original unknown (0609.08)

1818””

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

#5.3#5.3


Relationships (of all varieties): THERE THERE ONCE WAS A TIME WHEN A ONCE WAS A TIME WHEN A

THREETHREE--MINUTEMINUTE PHONEPHONE CALLCALL WOULD HAVE AVOIDED WOULD HAVE AVOIDED

SETTING OFF THE DOWNWARD SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A SPIRAL THAT RESULTED IN A

COMPLETE RUPTURE.COMPLETE RUPTURE.

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

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

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

REAL PROBLEMREAL PROBLEM.

#5.4#5.4

““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

The Manager’s The Manager’s Book of Book of DecenciesDecencies: :

How Small How Small /gestures Build /gestures Build

Great Companies.Great Companies. —Steve Harrison, Adecco

#5.5#5.5

Attending toAttending to the “Last 98%”:the “Last 98%”:

The New The New Management Management

“Science,” or …“Science,” or … “ “Hard Is Soft,Hard Is Soft, Soft Is Hard”Soft Is Hard”

NOTE: Complete section at APPENDIX 2NOTE: Complete section at APPENDIX 2

S = f( ___ )S = f( ___ )Success Is aSuccess Is a

Function of …Function of …

S = ƒ(#&DR; -2L, -3L, 4L; I&E)S = ƒ(#&DR; -2L, -3L, 4L; I&E)Number and depth of relationships 2, 3, and 4 levels down,Number and depth of relationships 2, 3, and 4 levels down,inside and outside the organizationinside and outside the organization

S = ƒ(SD>SU)S = ƒ(SD>SU)Sucking down is more important than sucking up—the idea is to haveSucking down is more important than sucking up—the idea is to havethe entire organization working for you.the entire organization working for you.

S = ƒ(#non-FF, #non-FL)S = ƒ(#non-FF, #non-FL)Number of friends, number of lunches with people not in my functionNumber of friends, number of lunches with people not in my function

S = ƒ(#FF)S = ƒ(#FF)Number of friends in the finance function-organizationNumber of friends in the finance function-organization

S = ƒ(OF)S = ƒ(OF)Oddball friendsOddball friends

S = ƒ(PDL)S = ƒ(PDL)Purposeful, deep listening—Purposeful, deep listening—this is very hardthis is very hard

#6#6

EXCELLENCE.EXCELLENCE.

VALUE ADDED. VALUE ADDED.UP THE LADDER.UP THE LADDER.

NoT Optional.NoT Optional.

The Value-added Ladder/ The Value-added Ladder/ “BEDROCK” “BEDROCK”

Raw Materials*Raw Materials*

**Farmers and Miners (“Degree”: Weightlifting)Farmers and Miners (“Degree”: Weightlifting)

The Value-added Ladder/ The Value-added Ladder/ THINGSTHINGS

Goods*Goods* Raw MaterialsRaw Materials

**Engineers and Factory Workers (Degree: Engineering)Engineers and Factory Workers (Degree: Engineering)

The Value-added Ladder/TRANSACTIONSTRANSACTIONS

Services*Services*GoodsGoods

Raw Materials Raw Materials

**Clerks (Degree: Process Engineering)Clerks (Degree: Process Engineering)

#6.1#6.1

LEAVE ITLEAVE IT

TO TO BEAVER.BEAVER.

Trapper:

<$20<$20 per beaver pelt.

Source: WSJ

wdcp/“Wildlife wdcp/“Wildlife Damage-control Damage-control

Professional”:Professional”: $$150150 to “remove” “problem to “remove” “problem

beaver”; beaver”; $$750750-$-$1,0001,000 for flood-control piping … for flood-control piping … so that beavers can stay.so that beavers can stay.

Source: Source: WSJWSJ

Trapper = Trapper = RedneckRedneck

WDCP = WDCP = PSF/ PSF/ Professional Professional

Services ProviderServices Provider

7X7X toto 40X40Xfor for

“Solution”“Solution” [rather than “service transaction”][rather than “service transaction”]


VALUE-ADDED LADDER.VALUE-ADDED LADDER. SOLVE IT. SOLVE IT.

““M” = M” = $0$0

IBIBMM: : $55B*$55B*

*Also HP-EDS*Also HP-EDS

And the “M” Stands for … ?

Gerstner’s IBM: “Systems Integrator of choice.”/BW

(“Lou, help us turn ‘all this’ into that long-promised ‘revolution.’ ” )

IBM Global ServicesIBM Global Services* (*Integrated Systems

Services Corp.): $$55B55B

Planetary Rainmaker-in-Chief!

“Palmisano’s strategy is “Palmisano’s strategy is to expand tech’s borders to expand tech’s borders by pushing users—and by pushing users—and

entire industries—entire industries—toward toward radicallradicallyy different different

business modelsbusiness models.. The payoff for IBM

would be access to an ocean of revenue—Palmisano estimates it at $500 billion a year$500 billion a year —that technology

companies have never been able to touch.” —Fortune

““By making the Global Delivery Model both legitimate and mainstream, By making the Global Delivery Model both legitimate and mainstream, we have brought the battle to our territory. That is, after all, the purpose we have brought the battle to our territory. That is, after all, the purpose of strategy. We have become the leaders, and incumbents of strategy. We have become the leaders, and incumbents [IBM, Accenture][IBM, Accenture]

are followers, forever playing catch-up. … However, creating a new are followers, forever playing catch-up. … However, creating a new business innovation is not enough for rules to be changed. The business innovation is not enough for rules to be changed. The

innovation must impact clients, competitors, investors, and society. We innovation must impact clients, competitors, investors, and society. We have seen all this in spades. Clients have embraced the model and are have seen all this in spades. Clients have embraced the model and are

demanding it in even greater measure. The acuteness of their demanding it in even greater measure. The acuteness of their circumstance, coupled with the capability and value of our solution, has circumstance, coupled with the capability and value of our solution, has made the choice not a choice. Competitors have been dragged kicking made the choice not a choice. Competitors have been dragged kicking

and screaming to replicate what we do. They face trauma and disruption, and screaming to replicate what we do. They face trauma and disruption,

but the game has changed forever.but the game has changed forever. Investors have Investors have ggrasraspped that this is not a ed that this is not a ppassinassingg

fancfancyy, but a , but a ppotential otential restructurinrestructuringg of the wa of the wayy the world the world

oopperates and how value will be erates and how value will be created in the futurecreated in the future.”.” —Narayana Murthy,

chairman’s letter, Infosys Annual Report

““THE GIANT STALKING BIG OIL: THE GIANT STALKING BIG OIL:

How How SchlumbergerSchlumberger Is Rewriting the Rules of the Is Rewriting the Rules of the

Energy Game.”:Energy Game.”: “IPM [Integrated “IPM [Integrated Project Management] strays from Project Management] strays from [Schlumberger’s] traditional role [Schlumberger’s] traditional role as a service provider and moves as a service provider and moves

deeper into areas once dominated deeper into areas once dominated by the majors.”by the majors.”

Source: Source: BusinessWeekBusinessWeek cover story, January 2008 cover story, January 2008

““Big Brown’s New Bag: UPS Big Brown’s New Bag: UPS Aims to Be the Traffic Aims to Be the Traffic

Manager for Corporate Manager for Corporate AmericaAmerica”” —Headline/—Headline/BWBW

““UPS wants to take over the UPS wants to take over the sweet spot in the endless sweet spot in the endless loop of goods, information loop of goods, information

and capital that all the and capital that all the packages packages [it moves][it moves] represent represent.”.” ——

ecompany.com ecompany.com (E.g., (E.g., UPS LogisticsUPS Logistics manages the logistics of 4.5M Ford vehicles, manages the logistics of 4.5M Ford vehicles,

from 21 mfg. sites to 6,000 NA dealers) from 21 mfg. sites to 6,000 NA dealers)

MasterCard MasterCard AdvisorsAdvisors

““We want to be We want to be the air traffic the air traffic controllers of controllers of

electrons.”electrons.”Bob Nardelli, Bob Nardelli, GE Power SystemsGE Power Systems

California Closets:California Closets: “a “a whole-life upgrade, not whole-life upgrade, not just a tidy bedroom.”just a tidy bedroom.” —WSJ/0329.07, —WSJ/0329.07, “Why the Container-“Why the Container-

Store Guy Wants to Be Your Therapist”Store Guy Wants to Be Your Therapist”

HuHuggee:: Customer

SatisfactionSatisfaction versus Customer

SuccessSuccess

““Customer Satisfaction” to “Customer Customer Satisfaction” to “Customer

Success”:Success”: “We’re getting better at “We’re getting better at [Six [Six Sigma]Sigma] every day. But we really need every day. But we really need

to think about the customer’s to think about the customer’s

profitability: profitability: Are customers’ Are customers’ bottom lines really bottom lines really

benefiting from benefiting from what we provide what we provide

them?” them?” —Bob Nardelli, then chief of —Bob Nardelli, then chief of

GE Power SystemsGE Power Systems

The Value-added Ladder/The Value-added Ladder/TRANSFORMATIONTRANSFORMATION

Customer Success/ Customer Success/ Gamechanging Gamechanging

SolutionsSolutions

ServicesServicesGoodsGoods


““The business of selling is not just about matching viable The business of selling is not just about matching viable

solutions to the customers that require them. solutions to the customers that require them. It’s It’s equally about managing the equally about managing the

change process the customer change process the customer will need to go through to will need to go through to

implement the solution and implement the solution and achieve the value promised achieve the value promised

by the solutionby the solution.. One of the key One of the key

differentiators of our position in the market is our attention to differentiators of our position in the market is our attention to managing change and making change stick in our customers’ managing change and making change stick in our customers’

organization.”organization.”* (*E.g.: CRM failure rate/Gartner: * (*E.g.: CRM failure rate/Gartner: 7070%)%) —Jeff Thull, —Jeff Thull, The Prime Solution: Close the Value Gap, The Prime Solution: Close the Value Gap,

Increase Margins, and Win the Complex SaleIncrease Margins, and Win the Complex Sale

Era #1/Obvious ValueEra #1/Obvious Value: “Our ‘it’ works, is : “Our ‘it’ works, is delivered on time” (“Close”)delivered on time” (“Close”)

Era #2/Augmented ValueEra #2/Augmented Value: : “How our ‘it’ “How our ‘it’ can add value—a ‘useful it’ ” (“Solve”)can add value—a ‘useful it’ ” (“Solve”)

Era #3/Complex Value NetworksEra #3/Complex Value Networks: : “How “How our ‘system’ can change you and deliver our ‘system’ can change you and deliver

‘business advantage‘business advantage’’ ” (“Culture- ” (“Culture-Strategic change”)Strategic change”)

Source: Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale

The Value-added Ladder/The Value-added Ladder/TRANSFORMATIONTRANSFORMATION

Customer Success through Customer Success through ImImpplementedlemented

Gamechanging Solutions*Gamechanging Solutions*ServicesServicesGoodsGoods


**Subject-matter Professionals andSubject-matter Professionals and Organization Effectiveness Experts (Degree: MBA, Organization Effectiveness Experts (Degree: MBA,

Organizational Psychology)Organizational Psychology)

#6.1.1#6.1.1


SOLVE IT.SOLVE IT. NO OPTION. NO OPTION.PSF. (PSF++)PSF. (PSF++)

“Organizations will Organizations will still be critically still be critically important in the important in the

world, but as world, but as ‘organizers,’ not ‘organizers,’ not

‘employers’!”‘employers’!” — Charles — Charles

HandyHandy

Department Head

to …

ManaginManaging g

PartnerPartner, , ISIS [HR, R&D, etc.] IncInc..

Answer:

PSFPSF

Are you the …

““PrinciPrincippal al EnEnggineine of of

Value Added”Value Added”*E.g.: Your R&D budget as robust as the New Products team?

#6.1.2#6.1.2

TheThe ““PSF35PSF35””:: Thirty-Five Thirty-Five

Professional Service Firm Professional Service Firm Marks of ExcellenceMarks of Excellence

The PSF35: The Work & The Legacy

1.1. CRYSTAL CLEAR POINT OF VIEWCRYSTAL CLEAR POINT OF VIEW

(E very Practice Group: “If you can’t explain your position in eight(E very Practice Group: “If you can’t explain your position in eight words or less, you don’t have a position”—Seth Godin)words or less, you don’t have a position”—Seth Godin)2. 2. DRAMATIC DIFFERENCEDRAMATIC DIFFERENCE (“We are the only ones who do what (“We are the only ones who do what we do”—Jerry Garcia)we do”—Jerry Garcia)3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)4. Eye-Appetite for Game-changer Projects (Excellence at Assembling4. Eye-Appetite for Game-changer Projects (Excellence at Assembling “ “Best Team”—Fast) Best Team”—Fast) 5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change the World)the World)6. Small “Uneconomic” Clients with Big Aims6. Small “Uneconomic” Clients with Big Aims7. Life Is Too Short to Work with Jerks (Fire lousy clients)7. Life Is Too Short to Work with Jerks (Fire lousy clients)8. 8. OBSESSED WITH LEGACYOBSESSED WITH LEGACY (Practice Group and Individual: “Dent the (Practice Group and Individual: “Dent the Universe”—Steve Jobs)Universe”—Steve Jobs)9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/ I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ”I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ”10. Consistent with #9 above … 10. Consistent with #9 above … DO NOT SHY AWAY FROM THEDO NOT SHY AWAY FROM THE WORD (IDEA) “RADICAL”WORD (IDEA) “RADICAL”

Pointed Pointed Point of Point of View!View!

The PSF35: The Client Experience11. Always team with client: “full partners in 11. Always team with client: “full partners in achieving memorable results” achieving memorable results” (Wanted: “Chimeras(Wanted: “Chimeras of Moonstruck Minds”!) of Moonstruck Minds”!)12. We will seek assistance Anywhere to assemble the Best-in-12. We will seek assistance Anywhere to assemble the Best-in- Planet Team for the Project Planet Team for the Project13. Client Team Members routinely declare that working with us13. Client Team Members routinely declare that working with us was “the Peak Experience of my Career” was “the Peak Experience of my Career”14. The job’s not done until implementation is14. The job’s not done until implementation is “100.00% complete” (Those who don’t “get it” must go) “100.00% complete” (Those who don’t “get it” must go)

15.15. IMPLEMENTATION IS IMPLEMENTATION IS NOTNOT COMPLETECOMPLETE UNTIL UNTIL THE CLIENT HAS EXPERIENCED “CULTURE THE CLIENT HAS EXPERIENCED “CULTURE CHANGE” CHANGE”16.16. IMPLEMENTATION IS IMPLEMENTATION IS NOTNOT COMPLETECOMPLETE UNTIL UNTIL SIGNIFICANT “TECHNOLOGY TRANSFER HAS SIGNIFICANT “TECHNOLOGY TRANSFER HAS TAKEN PLACE-ROOT TAKEN PLACE-ROOT (“Teach a man to fish …”)(“Teach a man to fish …”)

17.17. The Final Exam: The Final Exam: DID WE MAKE A DRAMATIC,DID WE MAKE A DRAMATIC, LASTING, GAME-CHANGING DIFFERENCE? LASTING, GAME-CHANGING DIFFERENCE?

“The business of selling is not just about matching viable solutions to the customers that require

them. It’s eIt’s eqqualluallyy about mana about managginingg the chanthe changge e pprocess the customer rocess the customer

will need to will need to ggo through to o through to imimpplement the solution and lement the solution and

achieve the value achieve the value ppromised byromised by the solutionthe solution.”*

(*E.g.: CRM failure rate/Gartner: 70%) —Jeff Thull, The Prime Solution: Close the Value Gap,

Increase Margins, and Win the Complex Sale

UniCredit Group/UniCredit Group/ UniCredito Italiano* ** UniCredito Italiano* **

—3—3rdrd party measurement party measurement—Customer-initiated—Customer-initiated measurement measurement—Primary $$$$ incentives—Primary $$$$ incentives—“Factories”—“Factories”—Primary Corporate Initiative—Primary Corporate Initiative—Etc—Etc*#13*#13**TP/#1**TP/#1

Ideal “finance staffer”:Ideal “finance staffer”: Full-scale Full-scale “business partner” “business partner” [CFO?] to the/each [CFO?] to the/each

department she department she serves.serves.

Ideal “finance staffer”: Ideal “finance staffer”:

**Full-scale “business partner”**Full-scale “business partner” [CFO?] to the/each department [CFO?] to the/each department she serves.she serves.**Not cop—obsessed instead with**Not cop—obsessed instead with value-addedvalue-added**Integration first, “stovepipe” **Integration first, “stovepipe” secondarysecondary**MBWA/bigtime**MBWA/bigtime**Networker to the rest of Finance**Networker to the rest of Finance

The PSF35: The People & The Leadership

18. 18. TALENT FANATICSTALENT FANATICS (“Best-Coolest place to work”) (PERIOD) (“Best-Coolest place to work”) (PERIOD)19. 19. EYE FOR THE PECULIAREYE FOR THE PECULIAR (Hiring: Go beyond “same old, (Hiring: Go beyond “same old, same old”) same old”) 20. Early Opportunities (vs. “Wait your turn”) 20. Early Opportunities (vs. “Wait your turn”) 21. Up or Out (Based on “Legacy”/Mentoring as much as21. Up or Out (Based on “Legacy”/Mentoring as much as “ “Billings”/“Rainmaking”)Billings”/“Rainmaking”)22. Slide the Old Aside/Make Room for Youth (Find oldsters22. Slide the Old Aside/Make Room for Youth (Find oldsters new roles?)new roles?)23. 23. TALENT IS OBSESSED WITH RENEWAL FROM DAY #1 TO TALENT IS OBSESSED WITH RENEWAL FROM DAY #1 TO DAY #“R” DAY #“R” [R = Retirement][R = Retirement]24. Office/Practice Leaders Evaluated Primarily on 24. Office/Practice Leaders Evaluated Primarily on Mentoring-Team Building SkillsMentoring-Team Building Skills25. 25. A “PROPRIETARY” TALENT DEVELOPMENT PROCESS (GE)A “PROPRIETARY” TALENT DEVELOPMENT PROCESS (GE)26. Team Leadership Skills Valued Early26. Team Leadership Skills Valued Early27. Partner with B.I.W. [Best In World] Outsiders as Needed27. Partner with B.I.W. [Best In World] Outsiders as Needed and to Infuse Different Viewsand to Infuse Different Views

The PSF35: The Firm & The Brand

28. 28. EAT-SLEEP-BREATHE-OOZE INTEGRITYEAT-SLEEP-BREATHE-OOZE INTEGRITY (“My life (“My life is my message”—Gandhi)is my message”—Gandhi)

29. Excellence+ in 29. Excellence+ in EXECUTIONEXECUTION … 100.00% of the Time… 100.00% of the Time30. “Drop everything”/“Swarm” to Support a Harried-On30. “Drop everything”/“Swarm” to Support a Harried-On The Verge TeamThe Verge Team

31. 31. SPEND ON R&D LIKE A TECH FIRM.SPEND ON R&D LIKE A TECH FIRM.32. 32. A PROPRIETARY METHODOLOGYA PROPRIETARY METHODOLOGY (FBR, McKinsey, (FBR, McKinsey, Chiat Day, IDEO, old EDS)Chiat Day, IDEO, old EDS)

33. 33. BRAND MANIACSBRAND MANIACS (Organize Around a Point of View Worth(Organize Around a Point of View Worth BROADCASTING)BROADCASTING)

3434. . PASSION! ENTHUSIASM!PASSION! ENTHUSIASM!

35.35. EXCELLENCE. ALWAYS.EXCELLENCE. ALWAYS.

Static/Imitative

Integrity.Integrity.Quality.Quality.

Continuous Improvement.Continuous Improvement.Superior Service Superior Service (Exceeds Expectations.)(Exceeds Expectations.)

Completely Satisfactory Transaction.Completely Satisfactory Transaction.Smooth Evolution.Smooth Evolution.

Market Share.Market Share.

Dynamic/Different

Dramatic Difference!Dramatic Difference!Disruptive!Disruptive!

Insanely Great! Insanely Great! (Quality++++)(Quality++++)

Life-(Industry-)changing Experience!Life-(Industry-)changing Experience!Game-changing!Game-changing!

WOW!WOW!Surprise!Surprise!Delight!Delight!

Breathtaking!Breathtaking!Punctuated Equilibrium!Punctuated Equilibrium!

Market Creation!Market Creation!

EXCELLENCEEXCELLENCE = =

Flawless Flawless EXECUTIONEXECUTION + Continuous + Continuous IMPROVEMENTIMPROVEMENT

+ Brilliantly Trained + Brilliantly Trained PEOPLEPEOPLE

+Gamechanging Gamechanging QUESTSQUESTS + +

WEIRD WEIRD Rosters +Rosters + GASPWORTHYGASPWORTHY Results Results

#6.1.3#6.1.3

Psf.Psf.Bedrock.Bedrock.

“Purchasing Officer” Thrust #1: Cost (at All Costs*) Minimization

Professional? Or/to: FullFull Partner-Partner-Leader in Lifetime Leader in Lifetime

Value-added Value-added MaximizationMaximization?

(*Lopez: “Arguably ‘Villain #1’ in GM tragedy”/Anon VSE-Spain)

Fleet Manager

Rolling Stock Cost Minimization Officer

vs/or

Chief of Fleet LifetimeChief of Fleet Lifetime Value Value MaximizationMaximization

StrategicStrategic Supply-chain Executive Supply-chain Executive

Customer Customer ExperienceExperience Director Director (via drivers)

HCare CIO: “Technology Executive” (workin’ in a hospital)

Or/to: Full-scale, Full-scale, AccountableAccountable (life or death)

Member-Partner of XYZ Member-Partner of XYZ Hospital’s Hospital’s Senior Senior HealinHealingg-Services -Services TeamTeam (who happens to be a techie)

PSF Transformation: Credit Department/Trek

Was Is

Credit Dept Financial ServicesFinancial Services

Hammer on dealers until Make dealers successful so theyMake dealers successful so theythey pay CAN payCAN pay

AR sold to 3rd party Trek is the commercial financialTrek is the commercial financialcommercial co. CompanyCompany

23 employees 12 employees12 employees

Oversee peak AR of $70M Oversee peak AR of $160MOversee peak AR of $160M

Identify risky dealers Identify opportunitiesIdentify opportunities

Cost Center Profit CenterProfit Center

No products Products: Consulting, MC/Visa,Products: Consulting, MC/Visa, Stored value of gift cards, Gift cardStored value of gift cards, Gift card peripherals, Online paymentsperipherals, Online payments

Source: John Burke/0330.06

Big Idea:

“Corporation” as “Corporation” as

Mega-“PSFMega-“PSF”” (Professional (Professional Service Firm*)Service Firm*)

* “Virtual” Collection of Entrepreneurially-minded Professionals (“Talent”/“Roster”)

Creating/Applying Intellectual Capital (“Work Product”)

Are you the …

““PrinciPrincippal al EnEnggineine of of

Value Added”Value Added”*E.g.: Your R&D budget as robust as the New Products team?

The FEVP/Fundamental EnterThe FEVP/Fundamental Enterpprise Value-Added rise Value-Added Proposition-EProposition-Eqquation/Mark2008uation/Mark2008

(1) 100% (1) 100% “WOW PROJECTS”“WOW PROJECTS” (New Org “DNA”/“The Work”)(New Org “DNA”/“The Work”)

++ (2) Incredible (2) Incredible “TALENT”“TALENT” Transformed intoTransformed into (3) Entrepreneurial (3) Entrepreneurial “BRAND YOUs”“BRAND YOUs” and and

(4) Given Room-to-Roam & Launched on(4) Given Room-to-Roam & Launched on Awesome Awesome “QUESTS”“QUESTS”

== (5) Internal (5) Internal ““Rockin’ PSFs”Rockin’ PSFs” (Staff Depts. Morphed into (Staff Depts. Morphed into

Wildly Innovative Wildly Innovative PProfessional rofessional SService ervice FFirms) … irms) … (6) Which Coalesce to Transform the FEVP/Fundamental Enterprise (6) Which Coalesce to Transform the FEVP/Fundamental Enterprise

Value Proposition from “Superior Products & Services” to Value Proposition from “Superior Products & Services” to “ENCOMPASSING SOLUTIONS” “ENCOMPASSING SOLUTIONS” &&

“GAME-CHANGING CLIENT“GAME-CHANGING CLIENT SUCCESS” SUCCESS”

#6.2#6.2


VALUE-ADDED LADDER.VALUE-ADDED LADDER. EXPERIENCE IT. EXPERIENCE IT.

““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

“The [Starbucks] Fix” Is on …

“We have “We have identified a identified a

‘third place.’‘third place.’ And

I really believe that sets us apart. The third place is that place that’s not work or home. It’s the place our customers come for refuge.” —Nancy Orsolini, District

Manager

Experience: “Rebel Lifestyle!”

“What we sell is the “What we sell is the ability for a 43-year-old ability for a 43-year-old accountant to dress in accountant to dress in

black leather, ride black leather, ride through small towns and through small towns and

have people be afraidhave people be afraid of him.” of him.”

HarleyHarley exec, quoted in Results-Based Leadership

The Value-added Ladder/ The Value-added Ladder/ MEMORABLE CONNECTIONMEMORABLE CONNECTION

Spellbinding Spellbinding Experiences*Experiences*

Customer Success/Implemented Customer Success/Implemented Gamechanging SolutionsGamechanging Solutions

ServicesServicesGoodsGoods


**Theatrical Skills (Degree: Theater Arts)Theatrical Skills (Degree: Theater Arts)

Beyond the “Transaction”/ “Satisfaction” Mentality

“Good hotel”/ “Happy guest”/ “Exceeded Expectations”

vs.

“Great “Great VacationVacation”/ ”/ “Great “Great ConferenceConference”/”/ “Operation “Operation PersonalPersonal

RenewalRenewal””

<TG<TGWWvs.vs.

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

2-cent 2-cent candycandy

3-cent 3-cent lemon!lemon!

CCXXOO**Chief eXperience Officer

#7#7

We We areare the the companycompany we keepwe keep

The “Hang Out Axiom”:The “Hang Out Axiom”: At its core, At its core, evereveryy (!!!) (!!!)

relationship-partnership relationship-partnership decision (employee, decision (employee,

vendor, customer, etc)vendor, customer, etc) is a is a stratestrateggicic decision decision

about: about:

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

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

““Diverse groups of problem solvers—Diverse groups of problem solvers—groups of people with diverse tools—groups of people with diverse tools—

consistently outperformed groups of the consistently outperformed groups of the best and the brightest. If I formed two best and the brightest. If I formed two

groups, one random (and therefore groups, one random (and therefore diverse) and one consisting of the best diverse) and one consisting of the best individual performers, the first group individual performers, the first group

almost always did better. … almost always did better. …

DiversityDiversity trumped trumped abilityability.”.” —Scott Page, —Scott Page, The Difference: How The Difference: How

the Power of Diversity Creates Better Groups,the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Diversity Firms, Schools, and Societies Diversity

#8#8

TP: TP: “How to flush

$500,000 down

the toilet in one easy

lesson!!”

< CAPEX< CAPEX> People!> People!

Brand Brand = =

Talent.Talent.

#8.1#8.1

Hire Hire ververy y good good

people!people!

“We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia-

Pacific … changed 2020 of his

4040 box plant managers to put more talented,

higher paid managers in charge. He increased profitability from

$$2525 million to $$8080 million in 22

years.”

—Ed Michaels, War for Talent

#8.2#8.2

PUT HR AT THE PUT HR AT THE HEAD OF THE HEAD OF THE HEAD TABLE. HEAD TABLE. BEST PEOPLE. BEST PEOPLE.

NOBLEST NOBLEST MISSION.MISSION.

#8.3#8.3

2/year 2/year = =

legacy.legacy.

#8.4#8.4

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

Employee retention & satisfaction:Employee retention & satisfaction: OverwhelminOverwhelmingglly, y, based on their based on their

immediateimmediate manamanaggerer!!

Source: Marcus Buckingham & Curt Coffman, Source: Marcus Buckingham & Curt Coffman, First, Break All First, Break All the Rules: the Rules:

What the World’s Greatest Managers Do DifferentlyWhat the World’s Greatest Managers Do Differently

#8.5#8.5

““Leaders Leaders

‘‘dodo’’ people. people.

Period.”Period.” —Anon.

““The leaders of Great The leaders of Great

Groups Groups lovelove talent talent and know where to find and know where to find

it. They it. They revel revel in the in the talent of others.”talent of others.”

—Warren Bennis & Patricia Ward Biederman, —Warren Bennis & Patricia Ward Biederman, Organizing Organizing GeniusGenius

PARC’s Bob Taylor:

“Connoisseur “Connoisseur of Talent”of Talent”

(from Warren Bennis & Patricia Ward Biederman, (from Warren Bennis & Patricia Ward Biederman, Organizing Genius)Organizing Genius)

#8.6#8.6


‘‘SERVESERVE’’ people. people.

Period.”Period.” —inspired by Robert Greenleaf

… … 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 … Excellence.pursuit of … Excellence.

#9#9

EXCELLENCE. EXCELLENCE.

BEDROCK.BEDROCK.LEADERSHIP. LEADERSHIP.

THE 9Ps. THE 9Ps.

PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..

PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. . PotentPotent..

PositivePositive..



PositivePositive..

““People want to be part People want to be part of something larger than of something larger than themselvesthemselves.. They want to They want to

be part of something they’re be part of something they’re really really proudproud of, that they’ll of, that they’ll

fight fight forfor,, sacrifice sacrifice forfor , , trusttrust.”.” —Howard Schultz, Starbucks (IBD/09.05)

PURPOSEPURPOSE..

PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..


PositivePositive..

““I am a … I am a … Dispenser of Dispenser of EnthusiasmEnthusiasm!”!”

—Ben Zander—Ben Zander

PURPOSEPURPOSE..PASSIONPASSION..

PotentialPotential..PresencePresence..PersonalPersonal..


PositivePositive..

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

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

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

PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..

PresencePresence..PersonalPersonal..


PositivePositive..

MBWAMBWA

PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..

PersonalPersonal..PERSISTENCEPERSISTENCE..

PEOPLEPEOPLE. . PotentPotent..

PositivePositive..

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

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

Gandhi



PositivePositive..

RelentlessRelentless:: “One of “One of

my superstitions had always been my superstitions had always been when I started to go anywhere or when I started to go anywhere or

to do anything,to do anything, notnot to to turnturn backback ,, or stop, or stop,

until the thing intended was until the thing intended was accomplished.”accomplished.” —Grant


PERSISTENCEPERSISTENCE..

PEOPLEPEOPLE. . PotentPotent..

PositivePositive..


‘‘dodo’’ people. people.

Period.”Period.” —Anon.


PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. .

PotentPotent..PositivePositive..

““Do one Do one thing every thing every

day that day that scares you.”scares you.”

—Eleanor Roosevelt



PositivePositive..

On NELSON: “[other] “[other] admirals more admirals more frightened of frightened of losing than losing than

anxious to win”anxious to win”



PositivePositive..

#10#10

““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)

Excellence IsExcellence Is a Universal Striving.a Universal Striving.

If Not Excellence, If Not Excellence, What? If not What? If not

excellence now, when?excellence now, when?

Appendix Appendix oneone

The The “Have “Have you …”you …” 50 50

““Mapping your Mapping your competitive competitive position”position”

or …or …

While waiting last week [early December 2007] in the Albany While waiting last week [early December 2007] in the Albany airport to board a Southwest Airlines flight to Reagan, I airport to board a Southwest Airlines flight to Reagan, I

happened across the latest happened across the latest Harvard Business ReviewHarvard Business Review, on the , on the cover of which was a yellow sticker. The sticker had on it the cover of which was a yellow sticker. The sticker had on it the words “Mapping your competitive position.” It referred to a words “Mapping your competitive position.” It referred to a

feature article by my friend Rich D’Aveni. His work is uniformly feature article by my friend Rich D’Aveni. His work is uniformly good—and I have said as much publicly on several occasions good—and I have said as much publicly on several occasions dating back 15 years. I’m sure this article is good, too—though 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 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 reaction” as my wife calls it. Of course I believe you should

worry about your “competitive position.”worry about your “competitive position.” But instead of But instead of obsessing on competitive position and other obsessing on competitive position and other

abstractions, as the B-schools and abstractions, as the B-schools and consultants would always have us do, I consultants would always have us do, I

instead wondered about some “practical instead wondered about some “practical stuff” which I believe is more important to stuff” which I believe is more important to

the short- and long-term health of the the short- and long-term health of the enterprise, tiny or enormous.enterprise, tiny or enormous.

““Unfortunately many Unfortunately many leaders of major leaders of major

companies believe their companies believe their job is to create the job is to create the

strategy, organization strategy, organization and organization and organization

processes—remaining processes—remaining aloof from the people aloof from the people doing the work.”doing the work.” —George —George

Kohlrieser, Kohlrieser, Hostage at the Table Hostage at the Table (GK is, among other things, (GK is, among other things, a hostage negotiator with a 95% success rate)a hostage negotiator with a 95% success rate)

1. 1. Have you in the last 10 days … visited a Have you in the last 10 days … visited a customecustomer?r?2. 2. Have you called a customer … Have you called a customer … TODAYTODAY??

3. Have you in the last 60-90 days … had a seminar in which several folks from the 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, customer’s operation (different levels, different functions, different divisions) interacted, via facilitator, with various of your folks?via facilitator, with various of your folks?

4. 4. Have you thanked a front-line employee for a Have you thanked a front-line employee for a small act of helpfulness … in the last three days?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 5. Have you thanked a front-line employee for a small act of helpfulness … in the last three last three hourshours??6. Have you thanked a frontline employee for carrying around a great 6. Have you thanked a frontline employee for carrying around a great attitude attitude … today?… today?7. Have you in the last week recognized—publicly—one of your folks for a small act of 7. Have you in the last week recognized—publicly—one of your folks for a small act of cross-functional co-operationcross-functional co-operation??8. Have you in the last week recognized—publicly—one of “their” folks (another 8. Have you in the last week recognized—publicly—one of “their” folks (another function) for a small act of cross-functional co-operation?function) for a small act of cross-functional co-operation?9. Have you invited in the last month a leader of 9. Have you invited in the last month a leader of another functionanother function to your weekly team to your weekly team priorities meeting?priorities meeting?10. Have you personally in the last week-month called-visited an internal or external 10. Have you personally in the last week-month called-visited an internal or external customer to customer to sort out, inquire, or apologizesort out, inquire, or apologize for some little or big thing that went awry? 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 (No reason for doing so? If true—in your mind—then you’re more out of touch than I dared imagine.)dared imagine.)

1. Have you in 1. Have you in the last 10 days the last 10 days … visited a … visited a customecustomer?r?2. Have you 2. Have you called a customer called a customer … … TODAYTODAY??

Blog1231.07

FLASH!FLASH!FLASH!FLASH!FLASH!FLASH!FOR IMMEDIATE ACTION!FOR IMMEDIATE ACTION!FOR IMMEDIATE ACTION!FOR IMMEDIATE ACTION!FOR IMMEDIATE ACTION!FOR IMMEDIATE ACTION!OLD YEAR’S RESOLUTION!OLD YEAR’S RESOLUTION!Call (C-A-L-L!) (NOT E-MAIL!) 25-50 (NO LESS THAN 25) Call (C-A-L-L!) (NOT E-MAIL!) 25-50 (NO LESS THAN 25) people … TODAY people … TODAY ** …to thank them for their support this …to thank them for their support this year (2007) …year (2007) …and wish them and their families and colleagues a and wish them and their families and colleagues a Happy 2008!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!!!Happy 2008!!!

I posted this at I posted this at tompeters.comtompeters.com on New on New

Year’s Eve 2007.Year’s Eve 2007.

11. Have you in the last two days had a chat with someone (a couple of levels down?) about 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?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 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 specific deadlines concerning a project’s next steps … and what specifically you can do to you can do to remove a hurdleremove a hurdle? (“Ninety percent of what we call management consists of making it difficult for ? (“Ninety percent of what we call management consists of making it difficult for people to get things done.”—Peter “His eminence” Drucker.)people to get things done.”—Peter “His eminence” Drucker.)13. Have you celebrated in the last week a “small” (or large!) 13. Have you celebrated in the last week a “small” (or large!) milestone milestone reached? (I.e., are you a reached? (I.e., are you a milestone fanatic?)milestone fanatic?)14. Have you in the last week or month revised some estimate in the “wrong” direction and 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 apologized for making a lousy estimate? (Somehow you must publicly reward the telling of reward the telling of difficult truthsdifficult truths.).)

15. 15. Have you installed in your tenure a very Have you installed in your tenure a very comprehensive customer satisfaction scheme comprehensive customer satisfaction scheme for all for all internalinternal customers? customers? (With major consequences for hitting or (With major consequences for hitting or

missing the mark.)missing the mark.)

16. Have you in the last six months had a week-long, visible, very intensive 16. Have you in the last six months had a week-long, visible, very intensive visit-“tour”visit-“tour” of of external customers?external customers?17. Have you in the last 60 days called an abrupt halt to a meeting and “ordered” everyone to get 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 out of the office, and “into the field” and in the next eight hoursnext eight hours, after asking those involved, fixed , after asking those involved, fixed (f-i-x-e-d!) a nagging “small” problem through practical action?(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 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 has come across—away from your industry or function—at a Web site, in a product or its packaging? packaging? 19. Have you in the last two weeks had an informal meeting—at least an hour long—with a 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 frontline employee to discuss things we do right, things we do wrong, what it would take to meet your mid- to long-term aspirations?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” … 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 that we can fix in the next fourteen daysfourteen days??

UniCredit Group/UniCredit Group/ UniCredito Italiano* ** UniCredito Italiano* **

—3—3rdrd party measurement party measurement—Customer-initiated—Customer-initiated measurement measurement—Primary $$$$ incentives—Primary $$$$ incentives—“Factories”—“Factories”—Primary Corporate Initiative—Primary Corporate Initiative—Etc—Etc*#13*#13**TP/#1**TP/#1

The director of staff services The director of staff services at the giant financial services at the giant financial services

firm, UniCredit Group, firm, UniCredit Group, installed the most thorough installed the most thorough

internal customer satisfaction internal customer satisfaction measures scheme I have seenmeasures scheme I have seen—with exceptional rewards for —with exceptional rewards for

those who make the grade those who make the grade with their internal customers. with their internal customers.

21. Have you had in the last year a one-day, intense offsite with each (?) of your 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”?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 22. Have you in the last week pushed someone to do some family thing that you fear might be overwhelmed by deadline pressure?might be overwhelmed by deadline pressure?23. 23. Have you learned the names of the children of everyone who reports to you?Have you learned the names of the children of everyone who reports to you? (If (If not, you have six months to fix it.)not, you have six months to fix it.)24. Have you taken in the last month an interesting-24. Have you taken in the last month an interesting-weirdweird outsider to lunch? outsider to lunch?25. Have you in the last month invited an interesting-weird outsider to sit in on an25. Have you in the last month invited an interesting-weird outsider to sit in on animportant meeting?important meeting?26. Have you in the last three days discussed something interesting, beyond your 26. Have you in the last three days discussed something interesting, beyond your industry, that you ran across in a meeting, reading, etc?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 27. Have you in the last 24 hours injected into a meeting “I ran across this interesting idea in [strange place]”?idea in [strange place]”?28. Have you in the last two weeks asked someone to report on something, anything 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, that constitutes an act of brilliant service rendered in a “trivial” situation—restaurant, car wash, etc? (And then discussed the relevance to your work.)car wash, etc? (And then discussed the relevance to your work.)

29. 29. Have you in the last 30 days examined in detail (hour Have you in the last 30 days examined in detail (hour by hour) your calendar to evaluate the degree “time by hour) your calendar to evaluate the degree “time actually spent” mirrors your “espoused priorities”? actually spent” mirrors your “espoused priorities”? (And repeated this exercise with everyone on team.)(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” 30. Have you in the last two months had a presentation to the group by a “weird” outsider? outsider?

You = Your You = Your calendarcalendar***Calendars *Calendars nevernever lielie

All we have is our time. The All we have is our time. The

way we spend our time way we spend our time isis

our priorities, our priorities, isis our our “strategy.”“strategy.” Your calendar Your calendar knows what you really knows what you really care about. Do you?care about. Do you?

31. Have you in the last two months had a presentation to the group by a customer, 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 internal customer, vendor featuring “working folks” 3 or 4 levels down in the vendor organization? organization? 32. Have you in the last two months had a presentation to the group of a cool, 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?beyond-our-industry ideas by two of your folks?33. Have you at every meeting today (and forever more) re-directed the conversation 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?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 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 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 this list public—and followed up in 48 hours.) And made sure everyone has at least one such item.)one such item.)35. Have you had a discussion in the last six months about what it would take to get 35. Have you had a discussion in the last six months about what it would take to get recognition in local-national poll of recognition in local-national poll of “best places to work”?“best places to work”?36. Have you in the last month approved a 36. Have you in the last month approved a cool-different training coursecool-different training course for one for one of your folks?of your folks?

37. 37. Have you in the last month Have you in the last month taught taught a front-line a front-line training course?training course?38. Have you in the last week discussed the idea of 38. Have you in the last week discussed the idea of ExcellenceExcellence? (What it means, how? (What it means, howto get there.)to get there.)39. Have you in the last week discussed the idea of 39. Have you in the last week discussed the idea of “Wow”?“Wow”? (What it means, how (What it means, howto inject it into an ongoing “routine” project.)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 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 of the “experience,” as well as results, it provides to its external or internal customers?customers?

41. Have you in the last month had one of your folks attend a meeting you were supposed to go 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?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 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?“management style”—and its long- and short-term impact on the group?

43. 43. Have you in the Have you in the last three dayslast three days considered a professional considered a professional relationship that was a little rocky and made a call to the person relationship that was a little rocky and made a call to the person involved to discuss issues and smooth the waters? (Taking the involved to discuss issues and smooth the waters? (Taking the “blame,” fully deserved or not, for letting the thing-issue fester.)“blame,” fully deserved or not, for letting the thing-issue fester.)

44. Have you in the last … 44. Have you in the last … two hourstwo hours … stopped by someone’s (two-levels “down") office- … stopped by someone’s (two-levels “down") office-workspace for 5 minutes to ask “What do you think?” about an issue that arose at a more or workspace 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 less just completed meeting? (And then stuck around for 10 or so minutes to listen—and visibly taken notes.)visibly taken notes.)45. Have you … in the last day … looked around you to assess whether the diversity pretty 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 …) 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 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, normally reticent person was engaged in a conversation—and then thanked him or her, perhaps privately, for their contribution?perhaps privately, for their contribution?47. Have you during your tenure instituted very public (visible) presentations of performance?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 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 “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 folks, including front-line folks? (And with a determined effort to keep the conversation restricted to “real world” “small” cases—not theory.) restricted to “real world” “small” cases—not theory.) 49. Have you in the last six months talked about the 49. Have you in the last six months talked about the Internal Brand PromiseInternal Brand Promise??50. Have you in the last year had a full-day off site to talk about individual (and group) 50. Have you in the last year had a full-day off site to talk about individual (and group) aspirations?aspirations?

Appendix Appendix TWOTWO

Attending to the Attending to the “Last 98%”: The “Last 98%”: The

New “Management New “Management Science,” or “Hard” Science,” or “Hard”

Is “Soft,” “Soft”Is “Soft,” “Soft” Is “Hard”Is “Hard”

Alternate title …Alternate title …

Attending to Attending to the “Last the “Last

98%”: 98%”: fflloowweerr power!power!

Tom Peters/17 April 2008Tom Peters/17 April 2008

FFLLOOWWEERRPPOOWWEERRFFLLOOWWEERRPPOOWWEERR

Hold in your mind the idea of “flower power”Hold in your mind the idea of “flower power”—more to come!—more to come!

S = ƒS = ƒ ( ___ )( ___ )Success Is aSuccess Is a

Function of …Function of …

SF50: SF50: SuccessSuccess

Is a Function Is a Function of* ...of* ...

*What follows are not in fact true mathematical formulae—*What follows are not in fact true mathematical formulae—obviously. Nonetheless, in tribute to my own scientific obviously. Nonetheless, in tribute to my own scientific

background, and, more important, that of many seminar background, and, more important, that of many seminar participants, I have chosen this format—which seems to work participants, I have chosen this format—which seems to work

for those of “my ilk” to whom it has been exposedfor those of “my ilk” to whom it has been exposed

SF50:SF50: 50 “Equations” 50 “Equations”

on achieving on achieving success … at success … at pretty much pretty much

anythinganything

S = ƒ(#&DR; -2L, -3L, 4L, I&E)S = ƒ(#&DR; -2L, -3L, 4L, I&E)Success is a function of: Number and depth of relationships Success is a function of: Number and depth of relationships 2, 3, and 4 levels down inside and outside the organization2, 3, and 4 levels down inside and outside the organization

S = ƒ(SD>SU)S = ƒ(SD>SU)Sucking down is more important than sucking up—the idea Sucking down is more important than sucking up—the idea is to have the [your] entire organization working for you.is to have the [your] entire organization working for you.

S = ƒ(#non-FF, #non-FL)S = ƒ(#non-FF, #non-FL)Number of friends not in my functionNumber of friends not in my function

S = ƒ(#XFL/m)S = ƒ(#XFL/m)Number of lunches with colleagues in otherNumber of lunches with colleagues in otherfunctions per monthfunctions per month

S = ƒ(#FF)S = ƒ(#FF)Number of friends in the finance organizationNumber of friends in the finance organization

Loser:Loser: “He’s such a“He’s such a suck-up!” suck-up!”

Winner:Winner: “He’s such a“He’s such a suck-down.” suck-down.”

Never* Never* waste a waste a lunch!lunch!

*More or less*More or less

S =ƒ(#PK“S =ƒ(#PK“WW”P)”P)S = ƒ(#PK“S = ƒ(#PK“LL”P)”P) # of people you know in the “wrong” places# of people you know in the “wrong” places# people you know in “low” places# people you know in “low” places

It helps to know people in …It helps to know people in …

highhigh places!”places!”

It helps It helps moremore to know people in … to know people in …

lowlow places!”places!”

Gust Avarkotos’ “boiler room” CIA palsGust Avarkotos’ “boiler room” CIA palsWalter’s “enabler” P.M. Thank You notesWalter’s “enabler” P.M. Thank You notesFlexirent’s XSec’s Customer PA lunchesFlexirent’s XSec’s Customer PA lunches

Anybody’sAnybody’s XSec XSecAnybody’s Anybody’s PAPA

AllAll customer Purchasing Dept receptionists customer Purchasing Dept receptionistsSecy Chaffee’s letter writerSecy Chaffee’s letter writerMcKinsey report prep staffMcKinsey report prep staff

McKinsey research staffMcKinsey research staffAdmiral’s AideAdmiral’s Aide

Congressional Committee staff drafterCongressional Committee staff drafterCongressman’s appropriate LACongressman’s appropriate LA

Anybody Anybody in Financein Finance

The previous entries are shorthand for stories about “low level” The previous entries are shorthand for stories about “low level” relationships determining “high level” decisions—or at least relationships determining “high level” decisions—or at least having surprising impact. Flexirent is an Australian consumer having surprising impact. Flexirent is an Australian consumer

financial services company. Its offerings are mostly made financial services company. Its offerings are mostly made through retailers—and following the “80-20 rule,” a small # of through retailers—and following the “80-20 rule,” a small # of

retailers control a large share of Flexirent’s business. The retailers control a large share of Flexirent’s business. The Executive Secretary-“PA” (Personal Assistant) to Flexirent’s CEO Executive Secretary-“PA” (Personal Assistant) to Flexirent’s CEO is a bright, energetic, outgoing person. Along the way, and not is a bright, energetic, outgoing person. Along the way, and not accidentally, she has developed very close relationships to the accidentally, she has developed very close relationships to the Pas of most of the CEOs of Flexirent’s major customers. Among Pas of most of the CEOs of Flexirent’s major customers. Among

other things, she more or less regularly (quarterly, roughly) other things, she more or less regularly (quarterly, roughly) takes her PA pals out for lunch. The goal on both sides is clear, takes her PA pals out for lunch. The goal on both sides is clear,

understood and shameless—to enhance unvarnished understood and shameless—to enhance unvarnished communications among these true “power players.” One can communications among these true “power players.” One can

only imagine the number of times, over, say, five years, that this only imagine the number of times, over, say, five years, that this “back channel” (“front Channel,” in reality) has paved the way “back channel” (“front Channel,” in reality) has paved the way for success and staved off disasters. The rest of the entries on for success and staved off disasters. The rest of the entries on

the slide are of the same ilk.the slide are of the same ilk.

S = ƒ(OF)S = ƒ(OF)Number of oddball friendsNumber of oddball friends

S = ƒ(PDL)S = ƒ(PDL)Purposeful, deep listening—this is Purposeful, deep listening—this is very very hardhard

S = ƒ(“DSTM,” EH, TTAGFG)S = ƒ(“DSTM,” EH, TTAGFG)Don’t shoot the messenger—embrace him! Truth-tellers are Don’t shoot the messenger—embrace him! Truth-tellers are gifts from God!gifts from God!

S = ƒ(#EODD3MC)S = ƒ(#EODD3MC)Number of end-of-the-day difficult (you’d rather avoid) “3-Number of end-of-the-day difficult (you’d rather avoid) “3-minutecalls” that sooth raw feelings, mend fences, etc.minutecalls” that sooth raw feelings, mend fences, etc.

S = ƒ(UFP, UFK, OAPS)S = ƒ(UFP, UFK, OAPS)Unsolicited favors performed, UFs involving co-workers’ kids, Unsolicited favors performed, UFs involving co-workers’ kids, overt acts politeness-solicitude toward co-workers’ spouses, overt acts politeness-solicitude toward co-workers’ spouses, parents, etc.parents, etc.

Relationships (of all varieties): THERE THERE ONCE WAS A TIME WHEN A ONCE WAS A TIME WHEN A

THREETHREE--MINUTEMINUTE PHONEPHONE CALLCALL WOULD HAVE AVOIDED WOULD HAVE AVOIDED

SETTING OFF THE DOWNWARD SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A SPIRAL THAT RESULTED IN A

COMPLETE RUPTURE.COMPLETE RUPTURE.

S= ƒ(TSHRO)S= ƒ(TSHRO)Time spent ... Hurdle Removing for OthersTime spent ... Hurdle Removing for Others

Peter Drucker once famously said, Peter Drucker once famously said, “Ninety-percent of “Ninety-percent of what we call ‘management’ consists of making it difficult what we call ‘management’ consists of making it difficult

for people to get things done.”for people to get things done.” There is more than a There is more than a grain of truth to that. On the other side, and there grain of truth to that. On the other side, and there can can be be

an “other side,” I see the manager’s principal role as an “other side,” I see the manager’s principal role as identifying things that get in people’s way (by asking identifying things that get in people’s way (by asking

them!) and meticulously getting those things out of their them!) and meticulously getting those things out of their way. Thence, you could cal the boss the CIRO, or way. Thence, you could cal the boss the CIRO, or Chief Chief Impedance Reduction OfficerImpedance Reduction Officer, or my choice, CHR, , or my choice, CHR, Chief Chief

Hurdle RemoverHurdle Remover. In any event the idea is that this is a/the . In any event the idea is that this is a/the primary task the boss performs—and that it is a primary task the boss performs—and that it is a

systematic, pro-active affair (e.g., on the daily agenda).systematic, pro-active affair (e.g., on the daily agenda).

S = ƒ(A#C, PTS/“OLC”, SAPA)S = ƒ(A#C, PTS/“OLC”, SAPA)Absolute # of consultations, perception of being taken seriously Absolute # of consultations, perception of being taken seriously (Responsible for “one line of code”), small acts of public (Responsible for “one line of code”), small acts of public appreciationappreciation

S = ƒ(1D)S = ƒ(1D)Seeking the assignment of writing first drafts, minutes, etc. (1787)Seeking the assignment of writing first drafts, minutes, etc. (1787)

S = ƒ(#SEAs)S = ƒ(#SEAs)Number of solid relationships with Executive AssistantsNumber of solid relationships with Executive Assistants

S = ƒ(%UL/w-m)S = ƒ(%UL/w-m)% useful lunches per week, month% useful lunches per week, month

S = ƒ(FG, FOC-BOF, CMO)S = ƒ(FG, FOC-BOF, CMO)Favors given, favors owed collectively, balance of favors, conscious Favors given, favors owed collectively, balance of favors, conscious management thereofmanagement thereof

““Buy in”- Buy in”- “Ownership”-“Ownership”-

Authorial bragging Authorial bragging rights-“Born again” rights-“Born again”

Champion = Champion = OneOne LineLine ofof CodeCode!!

““It works this way, Tom. You’re talking to a guy who’s It works this way, Tom. You’re talking to a guy who’s important to implementation down where the rubber important to implementation down where the rubber

meets the road. He’s skeptical—he either really is, or it’s meets the road. He’s skeptical—he either really is, or it’s the act he chooses to play. You go over the thing with him the act he chooses to play. You go over the thing with him

and he has a thousand objections. You nod your head a and he has a thousand objections. You nod your head a lot, and take copious notes. Then you go back to your lot, and take copious notes. Then you go back to your guys, and you find a few places where you can very guys, and you find a few places where you can very

specifically accommodate him. You make the changes, specifically accommodate him. You make the changes, even if they are pretty ugly. Then you go back to him,even if they are pretty ugly. Then you go back to him, and show him exactly what you’ve done. You have a and show him exactly what you’ve done. You have a ‘born again’ supporter. You took him seriously—and ‘born again’ supporter. You took him seriously—and

through the changes, he’s now your co-inventor, your through the changes, he’s now your co-inventor, your savior. Now he’s doing the selling for you. Hey, the whole savior. Now he’s doing the selling for you. Hey, the whole

damn thing wouldn’t have worked were it not for his damn thing wouldn’t have worked were it not for his interjections—that’s the way he frames it to his folks. I interjections—that’s the way he frames it to his folks. I

tell you, it never fails.”tell you, it never fails.”

Source: Australian IS-IT chief, mid-sized company in financial servicesSource: Australian IS-IT chief, mid-sized company in financial services

S = ƒ(SU)S = ƒ(SU)Showing upShowing up (Woody Allen, Delaware’s ridiculous influence on the (Woody Allen, Delaware’s ridiculous influence on the Constitution of the USA)Constitution of the USA)

S = ƒ(KSU, R)S = ƒ(KSU, R)Keep showing upKeep showing up; relentlessness (U.S. Grant!!); relentlessness (U.S. Grant!!)

S = ƒ(DW, TMSTTOG)S = ƒ(DW, TMSTTOG)Drill wells, try more stuffDrill wells, try more stuff than the other guy (John Masters, Mike than the other guy (John Masters, Mike Bloomberg)Bloomberg)

““Ninety Ninety percent of percent of success is success is

showing up.” showing up.” —Woody Allen

“This is so simple it sounds stupid, but it is amazing how few oil people really

understand that you only you only find oil if you find oil if you drill wellsdrill 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

S= ƒ(CM)S= ƒ(CM)Conscious calendar managementConscious calendar management

(the calendar never lies)(the calendar never lies)

You = Your You = Your calendarcalendar**

*Calendars *Calendars nevernever lie!lie!

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

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

Gandhi

S = ƒS = ƒ(CPRM, TS)(CPRM, TS)Conscious-planned Relationship management, Conscious-planned Relationship management,

time spent thereontime spent thereon

R.O.I.RR.O.I.R..

Far more important than “ROI”!Far more important than “ROI”!

RReturn eturn OOn n

IInvestment In nvestment In

RRelationshipselationships

FYI:FYI: “Relationship “Relationship power” = power” =

“Monopoly “Monopoly power”power”

The goal is clear—an “unfair” share of attention The goal is clear—an “unfair” share of attention from an internal staffer, a vendor, a customer. from an internal staffer, a vendor, a customer. We unabashedly pursue through good-better-We unabashedly pursue through good-better-

best relationships de facto monopoly—the best relationships de facto monopoly—the monopolization of other important folks’ love monopolization of other important folks’ love

and affection, as it were.and affection, as it were.

FYI:FYI: “Sustainable “Sustainable competitive competitive

advantage” = advantage” = “Relationship-based “Relationship-based

advantage” advantage” (period.)(period.)

Some Resources: RelationshipsSome Resources: Relationships

The Manager’s Book of DecenciesThe Manager’s Book of Decencies:: How Small Gestures How Small Gestures Build Great CompaniesBuild Great Companies—Steve Harrison—Steve HarrisonRespectRespect—Sara Lawrence-Lightfoot—Sara Lawrence-LightfootHostmanship:Hostmanship: The Art of Making People Feel Welcome The Art of Making People Feel Welcome—— Jan Gunnarsson & Olle Blohm (leader as host to his-Jan Gunnarsson & Olle Blohm (leader as host to his- her employees)her employees)The SPEED of Trust:The SPEED of Trust: The One Thing that Changes The One Thing that Changes EverythingEverything—Stephen M.R. Covey—Stephen M.R. CoveyThe Dream ManagerThe Dream Manager —Matthew Kelly—Matthew KellyThe Customer Comes Second:The Customer Comes Second: Put Your People First and Put Your People First and Watch ’Em Kick ButtWatch ’Em Kick Butt—Hal Rosenbluth and Diane—Hal Rosenbluth and Diane McFerrin Peters (no relation—be delighted if she was)McFerrin Peters (no relation—be delighted if she was)Crucial ConversationsCrucial Conversations—Kerry Patterson, Joseph Grenny,—Kerry Patterson, Joseph Grenny, Ron McMillan, Al SwitzlerRon McMillan, Al Switzler Crucial ConfrontationsCrucial Confrontations —Kerry Patterson, Joseph —Kerry Patterson, Joseph Grenny, Ron McMillan, Al SwitzlerGrenny, Ron McMillan, Al SwitzlerInfluence:Influence: Science and Practice Science and Practice—Robert Cialdini—Robert CialdiniEmotional IntelligenceEmotional Intelligence: Why It Can Matter More: Why It Can Matter More Than IQThan IQ—Daniel Goleman—Daniel Goleman

A few of my favorite “reads” on this topic—A few of my favorite “reads” on this topic—especially #1. The idea of “competitive-especially #1. The idea of “competitive-

advantage-through-decency” is extraordinary. advantage-through-decency” is extraordinary. Of course, “we know this”—but to see it spelled Of course, “we know this”—but to see it spelled

out this way may change the course of your out this way may change the course of your professional life.professional life.

S = ƒ(TN/d, FG/m, AA/d)S = ƒ(TN/d, FG/m, AA/d)Thank you notes per Thank you notes per DayDay, flowers given per Month, Acts of , flowers given per Month, Acts of Appreciation per DayAppreciation per Day

S = ƒ(WLHAO)S = ƒ(WLHAO)Willingness to laugh heartily at oneselfWillingness to laugh heartily at oneself

S = ƒ(PTA100%A“T”S, E“NMF, TTT)S = ƒ(PTA100%A“T”S, E“NMF, TTT)Proactive, timely, 100% apologies for “tiny” screw-ups, even if not Proactive, timely, 100% apologies for “tiny” screw-ups, even if not my fault (it always takes two to tango)my fault (it always takes two to tango)

S = ƒ(AMR, NBS-SG)S = ƒ(AMR, NBS-SG)Acceptance of mutual responsibilities for all affairs, no blame-Acceptance of mutual responsibilities for all affairs, no blame-shifting, scape-goatingshifting, scape-goating

S = ƒ(RP, PRP>>P)S = ƒ(RP, PRP>>P)Never forget, and act accordingly: Response to the screwup-Never forget, and act accordingly: Response to the screwup-problem and problem and perceptionperception thereof is (far, far) more important thereof is (far, far) more important than the problem itself! than the problem itself!

S = ƒ(APLSLFCT)S = ƒ(APLSLFCT)Awareness, perception of little snubs—and lightening fastAwareness, perception of little snubs—and lightening fast correction thereofcorrection thereof

S= ƒ(RCV)S= ƒ(RCV)Reduced customer visits (& more time on internal “customer” Reduced customer visits (& more time on internal “customer” relationships—that allow us to deliver on customer promises)relationships—that allow us to deliver on customer promises)

S= ƒ(U“PIATI”)S= ƒ(U“PIATI”)Understanding … “Perception is all there is!”Understanding … “Perception is all there is!”

S= ƒ(“EM”/NSTLT; “F”ITU, -80%)S= ƒ(“EM”/NSTLT; “F”ITU, -80%)““Everything matters”/No such thing as a “little thing”—etching of fly Everything matters”/No such thing as a “little thing”—etching of fly in the urinal in Amsterdam airport reduces “spillage” by 80%in the urinal in Amsterdam airport reduces “spillage” by 80%

S= ƒ(A“L”IOE)S= ƒ(A“L”IOE)Attention to “little” Indicators Of Excellence—e.g. fresh flowersAttention to “little” Indicators Of Excellence—e.g. fresh flowersat the reception deskat the reception desk

S= ƒ(“GGT”)S= ƒ(“GGT”)““Give good tea”—Ben Franklin in Paris in 1777, Norm Schwarzkopf Give good tea”—Ben Franklin in Paris in 1777, Norm Schwarzkopf with the Saudi Crown Prince during Gulf War I; effectiveness at with the Saudi Crown Prince during Gulf War I; effectiveness at

socializing with the “power behind the throne”socializing with the “power behind the throne”

GiveGive good good tea!* tea!*

*Norm S, Ben F*Norm S, Ben F

S = ƒ(TN/d, FG/m, AA/d)S = ƒ(TN/d, FG/m, AA/d)Thank you notes per Thank you notes per DayDay, flowers given per Month, Acts of , flowers given per Month, Acts of Appreciation per DayAppreciation per Day

S = ƒ(WLHAO)S = ƒ(WLHAO)Willingness to laugh heartily at oneselfWillingness to laugh heartily at oneself

S = ƒ(RP, PRP>>P)S = ƒ(RP, PRP>>P)Never forget, and act accordingly: Response to the screwup-Never forget, and act accordingly: Response to the screwup-problem and problem and perceptionperception thereof is (far, far) more important thereof is (far, far) more important than the problem itself! than the problem itself!

S = ƒ(APLSLFCT)S = ƒ(APLSLFCT)Awareness, perception of little snubs—and lightening fastAwareness, perception of little snubs—and lightening fast correction thereofcorrection thereof

S= ƒ(3X“O”C)S= ƒ(3X“O”C)““Over”-communicate (status, problems)Over”-communicate (status, problems)

by a factor of threeby a factor of three

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

THE RESPONSE TO THE RESPONSE TO THE PROBLEM THE PROBLEM

INVARIABLY ENDS INVARIABLY ENDS UP BEING THE REAL UP BEING THE REAL

PROBLEMPROBLEM.

FFLLOOWWEERRPPOOWWEERR

S = ƒ(Thank you notesS = ƒ(Thank you notes per per DayDay, , fflloowweerrss given per Month,given per Month, Acts of Appreciation Acts of Appreciation per Week)per Week)

““The deepest The deepest human need is human need is the need to be the need to be appreciated.”appreciated.”

William JamesWilliam James

““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

S = ƒ(PTA100%A“T”S, E“NMF, TTT)S = ƒ(PTA100%A“T”S, E“NMF, TTT)Proactive, timely, 100% apologies for “tiny” screw-ups, even if not Proactive, timely, 100% apologies for “tiny” screw-ups, even if not my fault (it always takes two to tango)my fault (it always takes two to tango)

S = ƒ(AMR, NBS-SG)S = ƒ(AMR, NBS-SG)Acceptance of mutual responsibilities for all affairs, Acceptance of mutual responsibilities for all affairs, no blame-no blame-shiftingshifting, scape-goating, scape-goating

Power phrase:Power phrase: “I’m “I’m really really sorry.”sorry.”

Amazing how rare this is—which of courseAmazing how rare this is—which of course is why it’s so powerful. is why it’s so powerful.

Power phrase:Power phrase: “I “I screwed screwed

up.”up.”

S = ƒ(G)S = ƒ(G)GraceGrace

S = ƒ(GA)S = ƒ(GA)Grace toward adversaryGrace toward adversary

S = ƒ(GW)S = ƒ(GW)Grace toward the wounded in bureaucratic firefightsGrace toward the wounded in bureaucratic firefights

S = ƒ(PD)S = ƒ(PD)Purposeful decencyPurposeful decency

S = ƒ(MB“TSS”MR)S = ƒ(MB“TSS”MR)Purposeful management of this Soft Stuff by people reporting Purposeful management of this Soft Stuff by people reporting to meto me

S = ƒ(EC, MMO)S = ƒ(EC, MMO)Emotional connection, mgt & maintenance ofEmotional connection, mgt & maintenance of

S = ƒ(IMDOP)S = ƒ(IMDOP)Investment in Mastery of detailed organizational processesInvestment in Mastery of detailed organizational processes

““What I learned from my What I learned from my years as a hostage negotiator years as a hostage negotiator is that we do not have to feel is that we do not have to feel

powerless—and that powerless—and that

bondinbondingg is the is the antidote to the hostage antidote to the hostage

situation.”situation.”

—George Kohlrieser, —George Kohlrieser, Hostage at the Table Hostage at the Table (GK’s (GK’s

negotiation success rate is negotiation success rate is >95%>95%))

S = ƒ(H-TS)S = ƒ(H-TS)Time spent on HiringTime spent on Hiring

S = ƒ(TSPD, TSP-L1)S = ƒ(TSPD, TSP-L1)Time spent on promotion decisions, especially for 1st Time spent on promotion decisions, especially for 1st level managerslevel managers

S = ƒ(%“SS,” H-PD)S = ƒ(%“SS,” H-PD)% soft stuff involved in Hiring, Promotion decisions% soft stuff involved in Hiring, Promotion decisions

S = ƒ(%WLP)S = ƒ(%WLP)% women in leadership positions% women in leadership positions

S = ƒ(TWA, P, NP)S = ƒ(TWA, P, NP)Time wandering around, purposeful, non-plannedTime wandering around, purposeful, non-planned

S = ƒ(SBS)S = ƒ(SBS)Slack built into ScheduleSlack built into Schedule

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find

that female managers outshine their male counterparts in almost every measure”

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

Women’s NeWomen’s Neggotiatinotiatingg Stren Strenggthsths

*Ability to put themselves in their *Ability to put themselves in their counterparties’ shoes counterparties’ shoes*Comprehensive, attentive and detailed*Comprehensive, attentive and detailed communication style communication style*Empathy that facilitates trust-building*Empathy that facilitates trust-building*Curious and attentive listening*Curious and attentive listening*Less competitive attitude*Less competitive attitude*Strong sense of fairness and ability to *Strong sense of fairness and ability to persuadepersuade*Proactive risk manager*Proactive risk manager*Collaborative decision-making*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”

This “relationship stuff” comes naturally to This “relationship stuff” comes naturally to women (for starters, from the genes); and is women (for starters, from the genes); and is

painfully difficult for many-most men.painfully difficult for many-most men.

““TAKE THIS QUICK QUIZTAKE THIS QUICK QUIZ: Who manages more Who manages more things at once?things at once? Who puts more effort into their Who puts more effort into their appearance?appearance? Who usually takes care of the Who usually takes care of the

details?details? Who finds it easier to meet new Who finds it easier to meet new people?people? Who asks more questions in a Who asks more questions in a

conversation?conversation? Who is a better listener?Who is a better listener? Who Who has more interest in communication skills?has more interest in communication skills? Who is more inclined to get involved?Who is more inclined to get involved? Who Who encourages harmony and agreement?encourages harmony and agreement? Who Who

has better intuition?has better intuition? Who works with a longer Who works with a longer ‘to do’ list?‘to do’ list? Who enjoys a recap to the day’s Who enjoys a recap to the day’s events?events? Who is better at keeping in touchWho is better at keeping in touch

with others?”with others?”

Source: Selling Is a Woman’s Game: 15 Powerful Reasons WhySelling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell MenWomen Can Outsell Men, Nicki Joy & Susan Kane-Benson, Nicki Joy & Susan Kane-Benson

S = ƒS = ƒ

(%TM“TSS,” (%TM“TSS,” PM“TSS,” PM“TSS,”

D“TD”“TSS”)D“TD”“TSS”)% of time, measured, on This % of time, measured, on This Soft StuffSoft Stuff, ,

purposeful management of this purposeful management of this Soft StuffSoft Stuff, , daily “to do” concerning “this daily “to do” concerning “this Soft StuffSoft Stuff””

Q: Q: But where’sBut where’s the beef?the beef?

A: A: This This isis the beef!the beef!

““The terms ‘hard facts,’ The terms ‘hard facts,’ and ‘the soft stuff’ used and ‘the soft stuff’ used in business imply that in business imply that data are somehow real data are somehow real

and strong while and strong while emotions are weak and emotions are weak and

less important.”less important.”

—George Kohlrieser, —George Kohlrieser, Hostage at the TableHostage at the Table

O(B) = O(B) = ƒƒ(XX)(XX)O(B), the “blueness” of one’s “ocean” [think O(B), the “blueness” of one’s “ocean” [think Blue Ocean Blue Ocean StrategyStrategy, the popular book], is directly proportional to , the popular book], is directly proportional to

one’s one’s eXcellence in eXecution/XXeXcellence in eXecution/XX, per , per me. [If one finds a “strategic” “blue ocean,” one will, me. [If one finds a “strategic” “blue ocean,” one will,

especially in today’s world, copied immediately; the only especially in today’s world, copied immediately; the only “defense”—possibility of sustaining success—is “defense”—possibility of sustaining success—is

XX/eXcellence in eXecution. Think EXXON MOBIL; they and XX/eXcellence in eXecution. Think EXXON MOBIL; they and their rivals know where the hydrocarbons are—but EXXON their rivals know where the hydrocarbons are—but EXXON

MOBIL handily out-executes the competition.]MOBIL handily out-executes the competition.]

““Equations” #48, #49 and #50 are more Equations” #48, #49 and #50 are more about organizational effectiveness than about organizational effectiveness than

individual effectiveness—and thus round out individual effectiveness—and thus round out this brief presentation.this brief presentation.

S(O) =S(O) = ƒ ƒ(XXFX)(XXFX)The single most important cause of failure to execute The single most important cause of failure to execute

effectively is the lack of effective cross-functional effectively is the lack of effective cross-functional communication-execution. Hence, Organizational Success is a communication-execution. Hence, Organizational Success is a

function of function of eXcellence (X) in cross-eXcellence (X) in cross-functional (XF) eXecution (X).functional (XF) eXecution (X). Attached Attached as Appendix II is my: as Appendix II is my: The “XF-50”: 50 Ways to Enhance Cross-The “XF-50”: 50 Ways to Enhance Cross-

Functional Effectiveness and Deliver Speed, “Service Functional Effectiveness and Deliver Speed, “Service Excellence” and “Value-added Customer ‘Solutions.’”Excellence” and “Value-added Customer ‘Solutions.’”

S(O) =S(O) = ƒ ƒ(X“SIT”)(X“SIT”)In 1982 in In 1982 in In Search of ExcellenceIn Search of Excellence, Bob Waterman and I , Bob Waterman and I

wrote about the idea of “MBWA,” or Managing By wrote about the idea of “MBWA,” or Managing By Wandering Around; we came across “MBWA” at Hewlett-Wandering Around; we came across “MBWA” at Hewlett-

Packard, then a much smaller company, and it was love at Packard, then a much smaller company, and it was love at first sight! For reasons described in Appendix III, I recently first sight! For reasons described in Appendix III, I recently returned to the centrality of that notion—and created a list returned to the centrality of that notion—and created a list of 50 “Have Yous.” That is, instead of worrying ceaselessly of 50 “Have Yous.” That is, instead of worrying ceaselessly about “strategy” and “blue oceans,” how good a job have about “strategy” and “blue oceans,” how good a job have you done at Staying In Touch with your extended internal you done at Staying In Touch with your extended internal

and external “organizational family”? That is: S(O), and external “organizational family”? That is: S(O),

Organizational Success, is a function of Organizational Success, is a function of X “SIT,” X “SIT,” eXcellence at Staying In Touch.eXcellence at Staying In Touch.


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 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 very, very hard. [Yet] I came to see in my time at IBM that culture

isn’t just one aspect of the

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

Who Says Elephants Can’t Dance

The tough-minded Mr Gerstner becameThe tough-minded Mr Gerstner became a reluctant convert to the power of a reluctant convert to the power of

this “soft stuff.”this “soft stuff.”

FFLLOOWWEERRPPOOWWEERRFFLLOOWWEERRPPOOWWEERR

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