Tom Peters’Tom Peters’

Action ChroniclesAction Chronicles

EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.

Think-Do.ACTION.Grant+.4-40.1103Think-Do.ACTION.Grant+.4-40.1103

Think!Think!vs.vs.

do!do!

“Never forget Never forget implementationimplementation , , boys. boys. In our work, it’s what I In our work, it’s what I

call the call the ‘‘last 98 last 98 percentpercent’’ of the client of the client puzzle.”puzzle.” —Al McDonald, former Managing

Director, McKinsey & Co, to a project team that included TP

The (Strange) Case of Peter Drucker & Michael Porter vs. The “Non-linearists”

HERBERT SIMON. HERBERT SIMON. (Administrative Behavior.) (Administrative Behavior.) JAMES MARCH. KARL WEICK. JAMES MARCH. KARL WEICK. (The (The

Social Psychology of Organizing.) Social Psychology of Organizing.) EUGENE WEBB. EUGENE WEBB. Henry MINTZBERG. Henry MINTZBERG. (The Rise and Fall of (The Rise and Fall of

Strategic Planning.)Strategic Planning.) JAMES UTTERBACK. JAMES UTTERBACK. THOMAS KUHN. THOMAS KUHN. (The Structure of Scientific (The Structure of Scientific

Revolutions.)Revolutions.) CHARLES LINDBLOM. CHARLES LINDBLOM. Daniel goleman. INNOVATION Daniel goleman. INNOVATION BIOGRAPHERS.*BIOGRAPHERS.* (*Transcontinental Railroad,

Electrification, Radio, Television, Containerization, DNA,

Computers, Military History, Etc.) MOST MOST POLITICAL SCIENTISTS. SILICON POLITICAL SCIENTISTS. SILICON

VALLEY. Etc.VALLEY. Etc.

“Linearist”: think!think!“Non-linearist”: do!do!

“Linearist”: Plan it!Plan it!“Non-linearist”: Try it!Try it!

“Linearist”:

hypothesize!hypothesize!“Non-linearist”:

experiment!experiment!

“Linearist”: failure = failure = unnecessaryunnecessary

“Non-linearist”:

failure = lifefailure = life

“Linearist”: a>b*a>b*“Non-linearist”: b>a**b>a**

*Attitude shapes behavior**Behavior shapes attitude

“Linearist”: deliberate!*deliberate!*

“Non-linearist”: relentless!relentless!****

* “Do it right the first time” (Hero: Phil Crosby) * “Do it right the first time” (Hero: Phil Crosby) **Never retreat (Hero: U.S. Grant)**Never retreat (Hero: U.S. Grant)

“Linearist”: logical!logical!“Non-linearist”:

passionate!passionate!

“Linearist”: give me give me genius!genius!

“Non-linearist”: give give me luck!me luck!

“Linearist”: spotless spotless academic academic record!record!

“Non-linearist”: a.d.d.a.d.d.

“Linearist”:

measured pace!measured pace!“Non-linearist”:

Tempo! Tempo! Tempo! Tempo! Tempo!Tempo!

“Linearist”: think! Plan! think! Plan! (r.(r.a.a.f.*)f.*)

“Non-linearist”: Try it! Try it! Screw it up! Fix it! Screw it up! Fix it!

Try it again! Try it again! (r.(r.f.f.a.**) a.**)

*Ready. *Ready. Aim.Aim. Fire. Fire.**ready. **ready. Fire.Fire. Aim. (Or, circa 2006: Aim. (Or, circa 2006: fire. Fire. Fire.fire. Fire. Fire.))

Cheap Shot

“Linearist”: minimize minimize cost.cost.

“Non-linearist”: maximize maximize revenue.revenue.

“Linearist”: marketing marketing rules.rules.

“Non-linearist”: sales sales rules.rules.

“Linearist”

Background: Background: planning, marketing planning, marketing

& finance.& finance.“Non-linearist”

background:background: sales & operations. sales & operations.

“Linearist”

likes: ideas.likes: ideas.“Non-linearist”

likes: people.likes: people.

“Linearist”

likes: parts.likes: parts.“Non-linearist”

likes: wholes.likes: wholes.

“Linearist”

office: walls.office: walls.“Non-linearist”

office: none.office: none.

“Linearist”

style: meetings.style: meetings.“Non-linearist”

style: m.b.w.a.* style: m.b.w.a.* *Managing by wandering around*Managing by wandering around

“Linearist”

reads: michael porter. reads: michael porter. Peter drucker.*Peter drucker.*

“Non-linearist”

reads: waterman & reads: waterman & peters.peters. Tom clancy.** Tom clancy.**

*Michael & peter*Michael & peter**Bob & tom & tom**Bob & tom & tom

“Linearist”

reads: michael porter. reads: michael porter. Peter drucker.Peter drucker.

“Non-linearist”

reads: doesn’treads: doesn’t

“Linearist”

preferred baseball preferred baseball score: 1-0.score: 1-0.

“Non-linearist”

preferred baseball preferred baseball score: 11-9.score: 11-9.

“Linearist”

preferred football preferred football score: 7-0.score: 7-0.

“Non-linearist”

preferred football preferred football score: 41-38.score: 41-38.

“Linearist”

criminal record: criminal record: none.none.

“Non-linearist”

criminal record: criminal record: disorderly conduct.disorderly conduct.Chronic jaywalking.Chronic jaywalking.

“Linearist”

drives: lincoln town drives: lincoln town car. Ford explorer car. Ford explorer

(weekends).(weekends).

“Non-linearist”

drives: bmw. Harley-drives: bmw. Harley-davidson davidson (weekends).(weekends).

The (Strange) Case of Peter Drucker & Michael Porter vs. The “Non-linearists”

HERBERT SIMON. HERBERT SIMON. (Administrative Behavior.) (Administrative Behavior.) JAMES MARCH. KARL WEICK. JAMES MARCH. KARL WEICK. (The (The

Social Psychology of Organizing.) Social Psychology of Organizing.) EUGENE WEBB. EUGENE WEBB. Henry MINTZBERG. Henry MINTZBERG. (The Rise and Fall of (The Rise and Fall of

Strategic Planning.)Strategic Planning.) JAMES UTTERBACK. JAMES UTTERBACK. THOMAS KUHN. THOMAS KUHN. (The Structure of Scientific (The Structure of Scientific

Revolutions.)Revolutions.) CHARLES LINDBLOM. CHARLES LINDBLOM. Daniel goleman. INNOVATION Daniel goleman. INNOVATION BIOGRAPHERS.*BIOGRAPHERS.* (*Transcontinental Railroad,

Electrification, Radio, Television, Containerization, DNA,

Computers, Military History, Etc.) MOST MOST POLITICAL SCIENTISTS. SILICON POLITICAL SCIENTISTS. SILICON

VALLEY. Etc.VALLEY. Etc.

EXCELLENCE.EXCELLENCE.ACTION.ACTION.

M.I.A.Action!Action! *

Implementation!Implementation! **The Work Itself!The Work Itself! ***

*R.F.A.**Execution

***WOW Projects!

““We design intelligent strategies—We design intelligent strategies—but they fall miles short of their for but they fall miles short of their for

one reason. Poor organizational one reason. Poor organizational effectiveness which in turn leads to effectiveness which in turn leads to a gaping ‘implementation deficit.’ a gaping ‘implementation deficit.’ Tom, I want you to get a handle on Tom, I want you to get a handle on

the best thinking and best the best thinking and best

practices from around the world.”practices from around the world.” —Ron Daniel (1977*)

*TP/1977/first (?) Stanford Ph.D. thesis studying implementation per se.

1979-2006

Still missing Still missing after all these after all these

years …years …

““Ninety percent of Ninety percent of what we call what we call

‘management’ ‘management’ consists of making it consists of making it difficult for people to difficult for people to get things doneget things done.”.” – Peter

Drucker

TP/BW on BigCo Sin #1: “too “too much talk, much talk, too little too little

do”do”

Excellence1982: The Bedrock “Eight Basics”

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

“Never forget imimpplementationlementation boys. In our work it’s what I

call the ‘missinmissingg 98 98 percentpercent’’ of the client puzzle.” —Al McDonald, former Managing

Director, McKinsey & Co, to a project team that included TP

““Operations Operations isis policy.”policy.” —Fred Malek (1974)

“Execution “Execution isis strategy.”strategy.” —TP (1983)

““METABOLIC METABOLIC MANAGEMENT”MANAGEMENT”

The Leadership11

1. Talent Management2. Metabolic Management3. Technology Management4. Barrier Management5. Forgetful Management6. Metaphysical Management7. Opportunity Management8. Portfolio Management9. Failure Management10. Cause Management11. Passion Management

““The secret of fast The secret of fast progress is progress is

inefficiencinefficiencyy, fast , fast and furious and and furious and

numerous numerous failures.”failures.”

—Kevin Kelly

““Active mutators in Active mutators in placid times tend to die placid times tend to die off. They are selected off. They are selected

against. against. Reluctant Reluctant mutators in quickly mutators in quickly

changing times are also changing times are also selected against.”selected against.”

—Carl Sagan & Ann Druyan, Shadows of Forgotten Ancestors

“How we feel about the evolving future tells us who we

are as individuals and as a civilization: Do we Do we search for stasissearch for stasis——a rea reggulated, ulated, enenggineered world? Or do we ineered world? Or do we

embrace dembrace dyynamismnamism——a world of a world of constant creation, discoverconstant creation, discoveryy

and comand comppetitionetition?? Do we value stability and control or evolution and learning? Do we think that progress requires a central blueprint, or do we see it as

a decentralized, evolutionary process?? Do we see mistakes as permanent disasters, or the correctable

byproducts of experimentation? Do we crave predictability or relish surprise? These two poles, stasis

and dynamism, increasingly define our political, intellectual and cultural landscape.”

—Virginia Postrel, The Future and Its Enemies

““If things seem If things seem under control, under control, you’re just not you’re just not

going fast going fast enough.”enough.” —Mario Andretti

““The most The most successful successful

people are those people are those who are good at who are good at

plan B.”plan B.” —James Yorke,

mathematician, on chaos theory in The New Scientist

““I’m not comfortable I’m not comfortable unless I’m unless I’m

uncomfortable.”uncomfortable.”—Jay Chiat

“If it works, If it works, it’s obsolete.”it’s obsolete.”

—Marshall McLuhan

Boyd on Boyd on TEMPOTEMPO

He who has the He who has the quickest quickest

O.O.D.A. LoopsO.O.D.A. Loops* * wins!wins!

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

““The stuff has got The stuff has got to be implicit. If it to be implicit. If it

is explicit, you is explicit, you can’t do it fast can’t do it fast enough.”enough.” —John Boyd

BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)

Tempo!*

70-70-1010

*Boyd/O.O.D.A. Loops/Mike Leach/Texas TechBoyd/O.O.D.A. Loops/Mike Leach/Texas Tech

70-10/Nebraska/ UnkUnk QB 643 QB 643 yyardsards K.State/ Linemen spread wide/All legals go

out for pass/Defenders confused & tire (Boyd/Tempo is not speed/“Re-arrange the mind of the

enemy”—T.E. Lawrence)/ ““BBy y chanchangginingg the the geometrgeometryy of the of the ggame, and ame, and ppushinushingg the limits of sthe limits of sppace and time on the ace and time on the

ggridiron, Mike Leach is takinridiron, Mike Leach is takingg Texas Texas Tech to some far out Tech to some far out pplaceslaces.”.”

—Michael Lewis (NY Times, on Mike Leach/Texas Tech)

“In war, delay is fatal.”In war, delay is fatal.” —Napoleon “The only way to whip an The only way to whip an

army isarmy is to go out and fight it.” to go out and fight it.” —Grant “ … demonstrating the tactic “ … demonstrating the tactic

that would become his that would become his hallmark: the immediate hallmark: the immediate

move to seek out the enemy move to seek out the enemy and attack him”and attack him” —John Mosier,

on Grant “A good plan executed A good plan executed right now is far preferable to right now is far preferable to a ‘perfect’ plan executed next a ‘perfect’ plan executed next

week.”week.” —Patton

Relentless!*Relentless!**Churchill, Grant, Patton, Welch, Bossidy, Nardelli (GE execs), UPS, FedEx, Microsoft/Gates-Ballmer,

Eisner, Weill, eBay, Nixon-Kissinger, Gerstner, Rice, Jordan, Armstrong

EXCELLENCE. EXCELLENCE.

ACTION.ACTION.ROOTS.ROOTS.

GRANTGRANTNELSONNELSON

BOYDBOYDFISHERFISHER

BOSSIDYBOSSIDYPEROTPEROT

MASTERSMASTERSHERBHERB

McDONALDMcDONALDPETERS-WATERMANPETERS-WATERMAN

HAMLET+HAMLET+

GRANTGRANT

““The only way to The only way to whip an army iswhip an army is to go out and to go out and fight it.”fight it.” —Grant

Source: John Mosier, Grant

““He never credited the enemy with the capacity to take the He never credited the enemy with the capacity to take the offensive.”/185 “tenacity [like Wellington]”/187 “I haven’t despaired offensive.”/185 “tenacity [like Wellington]”/187 “I haven’t despaired of whipping them yet” [at a very low point]/195 “Both sides seemed of whipping them yet” [at a very low point]/195 “Both sides seemed defeated and whoever assumed the offensive was sure to win.”/200 defeated and whoever assumed the offensive was sure to win.”/200 … “inchoate bond [between Grant and soldiers]”/201 … … “inchoate bond [between Grant and soldiers]”/201 … “The genius “The genius of Grant’s command style lay in its simplicity. Grant never burdened of Grant’s command style lay in its simplicity. Grant never burdened his division commanders with excessive detail. … no elaborate staff his division commanders with excessive detail. … no elaborate staff

conferences, no written orders prescribing deployment. … Grant conferences, no written orders prescribing deployment. … Grant recognized the battlefield was in flux. By not specifying movements recognized the battlefield was in flux. By not specifying movements

in detail, he left his subordinate commanders free to exploit in detail, he left his subordinate commanders free to exploit whatever opportunities developed.”whatever opportunities developed.”//202 202 “If anyone other than “If anyone other than

Grant had been in command, the Union army certainly would have Grant had been in command, the Union army certainly would have retreated.”retreated.”//204204 Lincoln (urged to fire Grant): “I can’t spare this Lincoln (urged to fire Grant): “I can’t spare this

man; he fights.”man; he fights.”//205 “Grant turned defeat into Union victory.”/206 205 “Grant turned defeat into Union victory.”/206 “moved on intuition, which he often could not explain or “moved on intuition, which he often could not explain or

justify.”/208 “instinctive recognition that victory lay in justify.”/208 “instinctive recognition that victory lay in relentlesslyrelentlessly hounding a defeated army into surrender.”/213 Nathan Bedford hounding a defeated army into surrender.”/213 Nathan Bedford Forrest, successful Confederate commander: “amenable to no Forrest, successful Confederate commander: “amenable to no

known rules of procedure, was a law unto himself for all military known rules of procedure, was a law unto himself for all military acts, and was constantly doing the unexpected at all timesacts, and was constantly doing the unexpected at all times

and places.”/213 and places.”/213

““The genius of Grant’s command The genius of Grant’s command style lay in its simplicity. Grant never style lay in its simplicity. Grant never

burdened his division commanders burdened his division commanders with excessive detail. … no elaborate with excessive detail. … no elaborate staff conferences, no written orders staff conferences, no written orders

prescribing deployment. … prescribing deployment. … Grant Grant recognized the battlefield was in flux. recognized the battlefield was in flux.

By not specifying movements in By not specifying movements in detail, he left his subordinate detail, he left his subordinate

commanders free to exploit whatever commanders free to exploit whatever opportunities developed.” opportunities developed.”

—Jean Edward Smith/GRANT

““A generation of American officers had been schooled to believe the A generation of American officers had been schooled to believe the art of generalship required rigid adherence to certain textbook art of generalship required rigid adherence to certain textbook

theorems.”/151 “The nature of Grant’s greatness has been a riddle theorems.”/151 “The nature of Grant’s greatness has been a riddle to many observers. … did not hedge his bets … disregarded explicit to many observers. … did not hedge his bets … disregarded explicit instructions … nothing to fall back on … violating every maxim held instructions … nothing to fall back on … violating every maxim held

dear by the military profession … new dimension: ability to learn dear by the military profession … new dimension: ability to learn from the battlefield … finished near the bottom of his [West Point] from the battlefield … finished near the bottom of his [West Point]

class in tactics … class in tactics … carried the fight to the enemy … maintain the carried the fight to the enemy … maintain the momentum of the attack … military greatness is the ability to momentum of the attack … military greatness is the ability to

recognize and respond to opportunities presentedrecognize and respond to opportunities presented.”/152-3 “Grant .”/152-3 “Grant had an aversion to digging in.”/153 had an aversion to digging in.”/153 “Grant had an intangible “Grant had an intangible

advantage. He knew what he wanted.”/153advantage. He knew what he wanted.”/153 “Grant’s seven-mile dash “Grant’s seven-mile dash changed the course of the war.”/157 “The one who attacks first will changed the course of the war.”/157 “The one who attacks first will be victorious.”/158 be victorious.”/158 “dogged”“dogged”//159 “unconditional surrender”/162 159 “unconditional surrender”/162

“simplicity and determination”/166 “simplicity and determination”/166 “quickness of mind that allowed “quickness of mind that allowed him to make on the spot adjustments … [his] battles were not him to make on the spot adjustments … [his] battles were not

elegant set-piece operations”elegant set-piece operations”//166 166 “[other Union general] preferred “[other Union general] preferred preparation to executionpreparation to execution … became a friend of detail … suffered … became a friend of detail … suffered

from ‘the slows’ …”/170 Message to Halleck from McClellan: “Do not from ‘the slows’ …”/170 Message to Halleck from McClellan: “Do not hesitate to arrest him” [following great victory]/172 … “learned how hesitate to arrest him” [following great victory]/172 … “learned how

to withstand attacks from the rear” [Army politics]/179 to withstand attacks from the rear” [Army politics]/179

““The commanding general would be in the field”/228 Lincoln: The commanding general would be in the field”/228 Lincoln: “What I want, and what the people want, is generals who will fight “What I want, and what the people want, is generals who will fight

battles and win victories. Grant has done this and I propose to stand battles and win victories. Grant has done this and I propose to stand by him.”/231 “retains his hold upon the affections of his men”/232 by him.”/231 “retains his hold upon the affections of his men”/232

“Grant’s moral courage—his willingness to choose a path from “Grant’s moral courage—his willingness to choose a path from which there could be no return—set him apart from most which there could be no return—set him apart from most

commanders … were [Grant and Lee] were uniquely willing to take commanders … were [Grant and Lee] were uniquely willing to take full responsibility for their actions.”/full responsibility for their actions.”/233 “ … modest … honest … 233 “ … modest … honest …

nothing could perturb … never faltered …”/233 “plan was nothing could perturb … never faltered …”/233 “plan was breathtakingly simple but fraught with peril”/235 “demonstrating breathtakingly simple but fraught with peril”/235 “demonstrating

the flexibility that had become his hallmark”/238 “But like any West the flexibility that had become his hallmark”/238 “But like any West Point trained general, he had difficulty comprehending what Grant Point trained general, he had difficulty comprehending what Grant

was up to …”/240 was up to …”/240 “recognized the value of momentum … throw off “recognized the value of momentum … throw off balance … blitzkrieg … traveling light … headquarters in the balance … blitzkrieg … traveling light … headquarters in the

saddle”saddle”//243 “acted as quartermaster”/243 [rushed away so that he 243 “acted as quartermaster”/243 [rushed away so that he couldn’t receive Halleck’s order] … couldn’t receive Halleck’s order] … “like Lord Nelson … telescope “like Lord Nelson … telescope

to his blind eye” … “pressing ahead on his own”to his blind eye” … “pressing ahead on his own”//245 “focus on the 245 “focus on the enemy’s weakness rather than his own”/250enemy’s weakness rather than his own”/250

“recognized the value of recognized the value of momentum … throw momentum … throw

[opponent] off balance … [opponent] off balance … blitzkrieg … traveling light blitzkrieg … traveling light

… headquarters in the … headquarters in the saddle”saddle” —Jean Edward Smith/GRANT

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

maneuvers; the simplest are maneuvers; the simplest are the best, and common sense the best, and common sense is fundamental.is fundamental. From which From which one might wonder how it is one might wonder how it is

generals make blunders; it is generals make blunders; it is because they try to be because they try to be

clever.”clever.” —Napoleon on Simplicity, from Napoleon on Project Management by Jerry Manas.

““Above all the troops appreciated Grant’s unassuming manner. Most Above all the troops appreciated Grant’s unassuming manner. Most generals went about attended by a retinue of immaculately tailored generals went about attended by a retinue of immaculately tailored staff officers. Grant usually rode alone, except for an orderly or two staff officers. Grant usually rode alone, except for an orderly or two

to carry messages if the need arose. Another soldier said the to carry messages if the need arose. Another soldier said the soldiers looked on Grant ‘as a friendly partner, not an arbitrary soldiers looked on Grant ‘as a friendly partner, not an arbitrary

commander.’ Instead of cheering as he rode by, they would ‘greet commander.’ Instead of cheering as he rode by, they would ‘greet him as they would address one of their neighbors at home. ‘Good him as they would address one of their neighbors at home. ‘Good

morning, General,’ ‘Pleasant day, General’ … There was no morning, General,’ ‘Pleasant day, General’ … There was no nonsense, no sentiment; only a plain businessman of the republic, nonsense, no sentiment; only a plain businessman of the republic, there for the one single purpose of getting that command over the there for the one single purpose of getting that command over the river in the shortest time possible.’” [Grant: 5-feet 8-inches with a river in the shortest time possible.’” [Grant: 5-feet 8-inches with a slouch]/232 After the victory at Chattanooga: slouch]/232 After the victory at Chattanooga: “The [Union senior] “The [Union senior] officers rode past the Confederates smugly without any sign of officers rode past the Confederates smugly without any sign of

recognition except by one. ‘When General Grant reached the line of recognition except by one. ‘When General Grant reached the line of ragged, filthy, bloody, despairing prisoners strung out on each side ragged, filthy, bloody, despairing prisoners strung out on each side

of the bridge, he lifted his hat and held it over his head until he of the bridge, he lifted his hat and held it over his head until he passed the last man of that living funeral cortege. He was the only passed the last man of that living funeral cortege. He was the only

officer in that whole train who recognized us as being on the face of officer in that whole train who recognized us as being on the face of the earth.’”the earth.’”/ / 281 “Grant was unhappy about going into winter 281 “Grant was unhappy about going into winter

quarters. He saw no reason to keep the army idle, and the pause quarters. He saw no reason to keep the army idle, and the pause would give the rebels time to reorganize.”/282would give the rebels time to reorganize.”/282

““The The [Union senior][Union senior] officers rode past the officers rode past the Confederates smugly without any sign Confederates smugly without any sign of recognition except by one. ‘When of recognition except by one. ‘When

General Grant reached the line of General Grant reached the line of ragged, filthy, bloody, despairing ragged, filthy, bloody, despairing

prisoners strung out on each side of prisoners strung out on each side of the bridge, he lifted his hat and held it the bridge, he lifted his hat and held it over his head until he passed the last over his head until he passed the last man of that living funeral cortege. He man of that living funeral cortege. He was the only officer in that whole train was the only officer in that whole train

who recognized us as being on the who recognized us as being on the face of the earth.’*”face of the earth.’*”

*quote within a quote from diary of a Confederate soldier

From LEE KENNETT’s From LEE KENNETT’s SHERMANSHERMAN: “Grant tended to be a simple : “Grant tended to be a simple listener when these two strategies [for taking Vicksburg] were listener when these two strategies [for taking Vicksburg] were

being discussed. His own preference may have been impelled as being discussed. His own preference may have been impelled as much by natural inclination as by any arguments he heard. He much by natural inclination as by any arguments he heard. He

wrote afterward: wrote afterward: ‘One of my superstitions had always been when I ‘One of my superstitions had always been when I started to go anywhere or to do anything, not to turn back, or stop, started to go anywhere or to do anything, not to turn back, or stop,

until the thing intended was accomplisheduntil the thing intended was accomplished.’.’”/ 202”/ 202

CWVA to MBWACWVA to MBWA: “In these days of telegraph and steam I can ccommand ommand

wwhile traveling and hile traveling and vvisiting isiting aabout.”bout.” —U.S. Grant

Managing by wandering around” —HP circa 1980

Source: Ulysses S. Grant, by Geoffrey Perret

TP’s take:TP’s take: IntuitionIntuition takes precedence (listen attentively but act on takes precedence (listen attentively but act on intuition) … intuition) … Move todayMove today > perfect plan tomorrow [subsequent > perfect plan tomorrow [subsequent Patton line] … Great advantage: When moving, you know what Patton line] … Great advantage: When moving, you know what you’re up to and you’re moving [the one sitting still is, thence, you’re up to and you’re moving [the one sitting still is, thence,

always reactive] [Boyd: quickest O.O.D.A. loops/Observe. Orient. always reactive] [Boyd: quickest O.O.D.A. loops/Observe. Orient.

Decide. Act. Disorient enemy]Decide. Act. Disorient enemy] … … Action!Action! ... ... Keep moving!Keep moving! … … Engage!Engage! … Offense! [weakness-strength: can’t even imagine enemy … Offense! [weakness-strength: can’t even imagine enemy

counter-attacking; little conception of defense] … Momentum! …. counter-attacking; little conception of defense] … Momentum! …. Keep ’em off balance … … Keep ’em off balance … … AdjustAdjust … … AdaptAdapt … … … … OpportunismOpportunism! … ! …

Constantly revise in accordance with conditions and opportunities Constantly revise in accordance with conditions and opportunities in the field [life = excellence at “Plan B”] … Doggedness … in the field [life = excellence at “Plan B”] … Doggedness …

Relentless!!Relentless!! [trait shaped in early childhood] … Never retreat … [trait shaped in early childhood] … Never retreat … Simplicity!Simplicity! … … Wide latitudeWide latitude for division commanders … minimum for division commanders … minimum written orders, conferences, etc … keep his own council … HQ is written orders, conferences, etc … keep his own council … HQ is Grant & his horse … Grant & his horse … no retinue!no retinue! … … commune with soldierscommune with soldiers/exude /exude

quiet confidence/Approachable … decent … Self-accountability! … quiet confidence/Approachable … decent … Self-accountability! … Evade orders (or ignore) … Evade orders (or ignore) … Share harm & hardshipShare harm & hardship … total victory/ … total victory/

demand “unconditional surrender”—G’s first claim to fame [Nelson: demand “unconditional surrender”—G’s first claim to fame [Nelson: other Admirals avoid loss, friend and foe as in Grant’s case vs other Admirals avoid loss, friend and foe as in Grant’s case vs

Nelson’s seek victory] … [Life 101: politics between the Generals: Nelson’s seek victory] … [Life 101: politics between the Generals: E.g., Grant & Halleck]E.g., Grant & Halleck]

"The art of war is simple enough. Find out where

your enemy is. Get at him as soon as you can. Strike at him as hard as you can and as often as you can,

and keep moving on." —Grant, courtesy Richard Cauley at tompeters.com

(original source unknown)

““One of my superstitions had One of my superstitions had always been when I started to always been when I started to

go anywhere or to do go anywhere or to do

anything,anything, not to not to turn backturn back ,, or or

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

NELSONNELSON

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

anxious to win”anxious to win”

The Nelson Baker’s Dozen

1. Simple-clear scheme (“Plan”) (Not wildly imaginative) (Patton: “A good plan1. Simple-clear scheme (“Plan”) (Not wildly imaginative) (Patton: “A good plan executed with vigor right now tops a ‘perfect’ plan executed next week.”)executed with vigor right now tops a ‘perfect’ plan executed next week.”)2. 2. SOARING/BOLD/CLEAR/UNEQUIVOCAL/WORTHY/NOBLE/INSPIRINGSOARING/BOLD/CLEAR/UNEQUIVOCAL/WORTHY/NOBLE/INSPIRING “ “GOAL”/“MISSION”/“PURPOSE”/“QUEST”GOAL”/“MISSION”/“PURPOSE”/“QUEST”3. “Conversation”: Engagement of All Leaders3. “Conversation”: Engagement of All Leaders4. Leeway for Leaders: Select the Best/Dip Deep/Initiative demanded/Accountability4. Leeway for Leaders: Select the Best/Dip Deep/Initiative demanded/Accountability swift/Micromanagement absentswift/Micromanagement absent5. 5. LED BY “LOVE” LED BY “LOVE” (Lambert),(Lambert), NOT “AUTHORITY” NOT “AUTHORITY” (Identify with sailors!)(Identify with sailors!)6. Instinct/Seize the Moment/“Impetuosity” (Boyd’s “OODA Loops”: React more 6. Instinct/Seize the Moment/“Impetuosity” (Boyd’s “OODA Loops”: React more quickly than opponent, destroy his “world view”)quickly than opponent, destroy his “world view”)7. 7. VIGOR! VIGOR! (Zander: leader as “Dispenser of Enthusiasm”)(Zander: leader as “Dispenser of Enthusiasm”)8. Peerless Basic Skills/Mastery of Craft (Seamanship)8. Peerless Basic Skills/Mastery of Craft (Seamanship)9. Workaholic! (“Duty” first, second, and third)9. Workaholic! (“Duty” first, second, and third)10. 10. LEAD BY CONFIDENT & DETERMINED & CONTINUOUS & VISIBLE EXAMPLE LEAD BY CONFIDENT & DETERMINED & CONTINUOUS & VISIBLE EXAMPLE (In (In Harm’s Way) (Gandhi: “You must be the change you wish to see in the world”/Harm’s Way) (Gandhi: “You must be the change you wish to see in the world”/ Giuliani: Show up!)Giuliani: Show up!)11. Genius (“Transform the world to conform to their ideas,” “Triumph over rules”)11. Genius (“Transform the world to conform to their ideas,” “Triumph over rules”) (Gandhi, Lee-Singapore) , not Greatness (“Make the most of their world”) (Gandhi, Lee-Singapore) , not Greatness (“Make the most of their world”) 12. Luck! (Right time, right place; survivor) (“Lucky Eagle” vs “Bold Eagle”)12. Luck! (Right time, right place; survivor) (“Lucky Eagle” vs “Bold Eagle”)13. Others principal shortcoming:13. Others principal shortcoming: “ADMIRALS MORE FRIGHTENED OF LOSING “ADMIRALS MORE FRIGHTENED OF LOSING THAN ANXIOUS TO WIN” THAN ANXIOUS TO WIN”

Source: Andrew Lambert, Source: Andrew Lambert, Nelson: Britannia’s God of WarNelson: Britannia’s God of War

Nelson’s Way: A Baker’s Dozen/Short

1. Simple scheme.1. Simple scheme.2. 2. Noble purpose!Noble purpose!3. Engage others.3. Engage others.4. 4. Find great talent, let it soar!Find great talent, let it soar!5. 5. Lead by Love!Lead by Love!6. 6. Trust your gut, not the focus group: Seize the Moment!Trust your gut, not the focus group: Seize the Moment!7. 7. Vigor!Vigor! 8. Master your craft.8. Master your craft.9. Work harder than the next person.9. Work harder than the next person.10. 10. Show the way, walk the talk, exude confidence! Start a PassionShow the way, walk the talk, exude confidence! Start a Passion Epidemic!Epidemic!11. 11. Change the rules: Create your own game!Change the rules: Create your own game!12. 12. Shake of the pain, get back up off the ground, the timing may Shake of the pain, get back up off the ground, the timing may well bewell be right tomorrow! right tomorrow! (E.g., Get lucky!)(E.g., Get lucky!)13. 13. By hook or by crook, quash your fear of failure, savor your By hook or by crook, quash your fear of failure, savor your quirkinessquirkiness and participate fully in the fray!and participate fully in the fray!

Source: Andrew Lambert, Nelson: Britannia’s God of War

BOYDBOYD

He who has the He who has the quickest quickest

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

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

“Blitzkrieg is far more than lightning thrusts that most people think of when they hear the term; rather it was all

about high operational tempo and the rapid exploitation of opportunity.” —Robert Coram, Boyd

“Re-arrange the mind “Re-arrange the mind of the enemy”of the enemy” —T.E. Lawrence

“Float like a butterfly, “Float like a butterfly, sting like a bee”sting like a bee” —Ali

BOYD: The Fighter Pilot Who Changed

the Art of War (Robert Coram)

F86 vs. MiG/Korea/10:1

Bubble canopy (360 degree view)

Full hydraulic controls (“The F86 driver could go from one maneuver to another faster than the MiG driver”)

MiG: “faster in raw acceleration and turning ability”; F86: “quicker in

changing maneuvers”BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)

USMC COL Mike Wyly: “kept the “kept the enemy off-balance; enemy off-balance;

they knew Delta they knew Delta Company [RVN] Company [RVN] could show up could show up

anywhere, anywhere, anytime”anytime”

BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)

FISHERFISHER

Fisherisms

Do right and damn the odds.Do right and damn the odds.Stagnation is the curse of life.Stagnation is the curse of life.

The best is the cheapest.The best is the cheapest.Emotion can sway the world.Emotion can sway the world.

Mad things come off.Mad things come off.Haste in all things.Haste in all things.

Any fool can obey orders.Any fool can obey orders.History is a record of exploded ideas. History is a record of exploded ideas.

Life is phrases.Life is phrases.Source: Jan Morris, Fisher’s Face, Or, Getting to Know the Admiral

BOSSIDYBOSSIDY

““I saw that leaders placed too I saw that leaders placed too much emphasis on what some much emphasis on what some

call high-level strategy, on call high-level strategy, on intellectualizing and intellectualizing and

philosophizing, and not enough philosophizing, and not enough on implementation.on implementation. People People would agree on a project or would agree on a project or initiative, and then nothing initiative, and then nothing

would come of it.”would come of it.” —Larry Bossidy & Ram Charan/

Execution: The Discipline of Getting Things Done

““ExecutionExecution is is thethe j jobob of the of the

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

Charan/ Execution: The Discipline of Getting Things Done

“Execution is a

systematic systematic processprocess of rigorously

discussing hows and whats, tenaciously following through, and

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

The Discipline of Getting Things Done

The Leader’s Seven Essential Behaviors

*Know your people and your*Know your people and your business business*Insist on realism*Insist on realism*Set clear goals and priorities*Set clear goals and priorities*Follow through*Follow through*Reward the doers*Reward the doers*Expand people’s capabilities*Expand people’s capabilities*Know yourself*Know yourself

Source: Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done

Action8/VPMR+/Peters on Bossidy

**Knowledge/External Focus Knowledge/External Focus (Competitors/Customers)(Competitors/Customers)

**Realism/Truth-tellingRealism/Truth-telling**VisionVision **ProjectsProjects (Must add up to Vision)(Must add up to Vision) **MilestonesMilestones**Commitment/EnergyCommitment/Energy**RapidReviewRapidReview**Consequences Consequences (+/-)(+/-)

““The person who is a little less The person who is a little less conceptual but is absolutely determined conceptual but is absolutely determined

to succeed will usually find the right to succeed will usually find the right people and get them together to achieve people and get them together to achieve objectives. I’m not knocking education objectives. I’m not knocking education or looking for dumb people. But if you or looking for dumb people. But if you

have to choose between someone with a have to choose between someone with a staggering IQ and an elite education staggering IQ and an elite education

who’s gliding along, and someone with a who’s gliding along, and someone with a lower IQ but who is absolutely lower IQ but who is absolutely

determined to succeed, you’ll always do determined to succeed, you’ll always do better with the second person.”better with the second person.”

—Larry Bossidy (Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done)

Duct Tape Rules!

“Andrew Higgins, who “Andrew Higgins, who built built landing craft in WWII, landing craft in WWII, refused to hire graduates of refused to hire graduates of

engineering schools.engineering schools. He believed that they only teach you what you can’t do in engineering school. He started off with 20 employees, and by the

middle of the war had 30,000 working for him. He turned out 20,000 landing craft. D.D. Eisenhower told me,

‘Andrew Higgins won the war for us. He did it without

engineers.’ ” —Stephen Ambrose/Fast Company

PEROTPEROT

READY.READY.FIRE!FIRE!AIM.AIM.

Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)

READY.READY.FIRE!FIRE!AIM.AIM.

Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)

READY.READY.FIRE!FIRE!AIM.AIM.

Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)

MASTERSMASTERS

“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

You only find You only find oil if you oil if you drill wells.drill wells.

Source: The Hunters, by John Masters, Canadian O & G wildcatter

drill.drill.

Source: The Hunters, by John Masters, Canadian O & G wildcatter

HERBHERB

doing doing things.things.

— Herb Kelleher

McDONALDMcDONALD

““Never forget Never forget

imimpplementationlementation boys. In our work it’s boys. In our work it’s

what I call the what I call the

‘‘missinmissingg 98 98 percentpercent’’ of the of the

client puzzle.”client puzzle.” —Al McDonald

PETERS-PETERS-WATERMANWATERMAN

““Do it. Do it. Fix it. Fix it. Try it.”Try it.”

Tom Peters/Business Week/07.1978 (Principal #1/first anticipation of “Excellence”)

In Search of Excellence/1982/The Bedrock “Eight Basics”

1. A Bias for A Bias for ActionAction

2. Close to the Customer3. Autonomy and Entrepreneurship4. Productivity Through People5. Hands On, Value-Driven6. Stick to the Knitting7. Simple Form, Lean Staff8. Simultaneous Loose-Tight Properties”

PETERS: THE PETERS: THE “ACT. THINK.”“ACT. THINK.”CHRONICLESCHRONICLES

““Think”Think”vsvs

“Do”“Do”

A>BA>Bvs

B>AB>A

CK Chesterton: “How do I “How do I know what I think until I see know what I think until I see what I say?” what I say?”

Reporter: “Mr Drucker, why are you still giving speeches at 90?” PD: “How else can I figure “How else can I figure out what I’m thinking?”out what I’m thinking?”

TP: No plan, total No plan, total accountabilityaccountability

TK: Perfect plan, no Perfect plan, no accountability*accountability*

*LG & IBM

““My only goal is to My only goal is to have no goals.have no goals. The The ggoal, everoal, everyy time, is time, is that film, that verthat film, that veryy momentmoment.”.” —Bernardo Bertolucci

““Experiment Experiment fearlessly”fearlessly”

Source: BW0821.06, Type A Organization Strategies/ “How to Hit a Moving Target”—Tactic #1

Power of the …Power of the … “Small Win”“Small Win”/ / String ofString of (TP/1977; KW;EJW)

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

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

make the design perfect, we’re already on prototype

version No. 5No. 5. By the time our rivals are ready

with wires and screws, we are on version No. No. 1010.. It It ggets back to ets back to pplanninlanningg

versus actinversus actingg: We act from da: We act from dayy one; othersone; others p plan how to lan how to pplan—lan—for monthsfor months.”.” —Bloomberg by Bloomberg

HAMLET+HAMLET+

““By By indirections indirections

find directions find directions out.”out.” —Hamlet, II. i

“My only goal is to My only goal is to have no goals. have no goals. The The goal, every time, is goal, every time, is that film, that very that film, that very momentmoment.”.” —Bernardo Bertolucci

EXCELLENCE. EXCELLENCE.

4/40.4/40.

4/404/40

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

“‘“‘DecentralizatioDecentralization’ is n’ is notnot a piece a piece of paper. It’s of paper. It’s notnot me. me. It’s either in It’s either in

your your heartheart, or , or not.”not.”

—Brian Joffe/BIDvest

““If if feels If if feels painful and painful and

scary—that’s scary—that’s realreal delegation” delegation”

—Caspian Woods, small biz owner

“HOW THE COAST GUARD GETS IT RIGHT” —Headline, Time, 10.31.2005

*Autonomy*Flexibility*“Perhaps the most important distinction of the Coast Guard is that it trusts itself”

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

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

tion!tion!

““ExecutionExecution is is thethe j jobob of the of the

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

Charan/ Execution: The Discipline of Getting Things Done

“Execution is a

systematic systematic processprocess of rigorously

discussing hows and whats, tenaciously following through, and

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

The Discipline of Getting Things Done

“I saw that leaders placed too much emphasis on what some call ‘high-level strategy,’ on

intellectualizing and philosophizing, and not enough

on implementation. People would agree on a project or initiative—and then nothing

would come of it.” —Larry Bossidy & Ram Charan/

Execution: The Discipline of Getting Things Done

“The person who is a little less conceptual but is absolutely determined to succeed will usually find the

right people and get them together to achieve objectives. I’m not knocking education or looking for

dumb people. But if But if yyou have to ou have to choose between someone with a choose between someone with a

stastaggggering IQ and an elite ering IQ and an elite education who’s education who’s gglidinlidingg alon alongg, ,

and someone with a lower IQ but and someone with a lower IQ but who is absolutelwho is absolutelyy determined to determined to succeed, succeed, yyou’ll alwaou’ll alwayys do better s do better with the second with the second ppersonerson.”.” —Larry

Bossidy/Execution: The Discipline of Getting Things Done

"I think it is very important for you to do two things: act on your temporary conviction as if it was a

real conviction; and when you realize that you are

wrong, correct course very quickly.” —Andy Grove

““Never forget Never forget

imimpplementationlementation boys. In our work it’s boys. In our work it’s

what I call the what I call the

‘‘missinmissingg 98 98 percentpercent’’ of the of the

client puzzle.”client puzzle.” —Al McDonald

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

““RealismRealism is is the heart of the heart of execution.”execution.”

—Larry Bossidy & Ram Charan/Execution: The Discipline of Getting Things Done

““robust robust dialoguedialogue

”” —Larry Bossidy & Ram Charan/ Execution:

The Discipline of Getting Things Done

““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)

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

????????

Work Hard > Work Hard > Work SmartWork Smart

A man approached A man approached JP MorganJP Morgan, held up an envelope, and said, “Sir, , held up an envelope, and said, “Sir, in my hand I hold a guaranteed formula for success, which I will in my hand I hold a guaranteed formula for success, which I will

gladly sell you for $25,000.”gladly sell you for $25,000.”

“Sir,” JP Morgan replied, “I do not know what is in the envelope, “Sir,” JP Morgan replied, “I do not know what is in the envelope, however if you show me, and I like it, I give you my word as a however if you show me, and I like it, I give you my word as a

gentleman that I will pay you what you ask.”gentleman that I will pay you what you ask.”

The man agreed to the terms, and handed over the envelope.The man agreed to the terms, and handed over the envelope.JP Morgan opened it, and extracted a single sheet of paper. JP Morgan opened it, and extracted a single sheet of paper.

He gave it one look, a mere glance, then handed the piece of paper He gave it one look, a mere glance, then handed the piece of paper back to the gent.back to the gent.

And paid him the And paid him the agreed-upon $25,000 …agreed-upon $25,000 …

1. Every morning, write a Every morning, write a list of the things that list of the things that need to be done that need to be done that day. day.

2.2. Do them.Do them. Source: Hugh MacLeod/tompeters.com/NPR

DECENTRALIZATION.DECENTRALIZATION.EXECUTION.EXECUTION.

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

EXCELLENCE. EXCELLENCE.

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

$55$55BB

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, we have brought the battle to our territory. That is, after all, the purpose of strategy. We have become the leaders, and incumbents [IBM, Accenture]

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

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

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

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

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

““Big Brown’s New Bag: UPSBig Brown’s New Bag: UPS

Aims to Be theAims to Be the Traffic Traffic Manager for Manager for CorCorpporate orate

AmericaAmerica”” —Headline/BW/2004

““SCS”/Supply Chain SCS”/Supply Chain SolutionsSolutions:: 750 locations; 750 locations;

$2.5B; fastest growing $2.5B; fastest growing division; 19 acquisitions, division; 19 acquisitions,

including a bankincluding a bank

Source: Fast Company

MasterCard MasterCard AdvisorsAdvisors

“Security ‘devices’” to “Turnkey security “Turnkey security solutions”solutions” (A/C, elevators, DIY,

photo shops, etc, etc)

Home Depot Home Depot Business ToolBox:Business ToolBox:

Payroll processing. Credit card processing. Personnel paperwork. Mobile phones. Shipping. Health insuranceHealth insurance. 12K customers (plumbers, electricians,

small homebuilders and contractors). Source: Forbes, 0918.06

Gamechangging “Solutions”: Bet-the-Company

IBMIBMUPSUPS

XeroxXeroxMasterCardMasterCard

GEGE

BestBuyBestBuy

I. LAN Installation Co. (3%)

II. Geek Squad. (30%.)

III. Acquired by BestBuy.

IV. Flagship of BestBuyFlagship of BestBuy Wholesale “Solutions” Wholesale “Solutions” Strategy Makeover. Strategy Makeover.

Huge: Customer

SatisfactionSatisfaction versus Customer

SuccessSuccess

Up,Up, Up,Up, Up, Up,

UpUp

the Value-added Ladder.

The Value-added Ladder/ STUFF ‘N’ THINGSSTUFF ‘N’ THINGS

GoodsGoods Raw Materials Raw Materials

The Value-added Ladder/Stuff & TRANSACTIONSTRANSACTIONS

ServicesServicesGoods

Raw Materials

The Value-added Ladder/ OPPORTUNITY-SEEKINGOPPORTUNITY-SEEKING

Gamechanging Gamechanging SolutionsSolutions

ServicesGoods

Raw Materials

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 business of selling is not just about matching viable

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 by achieve the value promised by

the solution.the solution. One of the key differentiators of our position in the market is our attention to managing change and making change stick in our customers’ organization.”* (*E.g.:

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

Increase Margins, and Win the Complex Sale

To The Mat: The ““5 Damn Its5 Damn Its””

Women.Women.

PSF.PSF.Brand you.Brand you.

R.f.a.R.f.a.EXCELLENCE. ALWAYS.EXCELLENCE. ALWAYS.

EXCELLENCE.EXCELLENCE.NECESSITY.NECESSITY.

OPPORTUNITY. OPPORTUNITY.

“ ‘Disintermediation’ is overrated. Those who fear disintermediation-outsourcing should in fact be

afraid of irrelevance; ‘outsourcing’ is just another

way of saying that …

yyou’ve ou’ve become become

irrelevant irrelevant toto y your our

customerscustomers.”.”

—John Battelle/Point/Advertising Age/07.05

Chicago:

HRMACHRMAC

Sarah: “ Mom, what do you do?”

Mom: “I’m ‘overhead.’‘overhead.’””

““support function” / support function” / “cost center”/ “cost center”/ “overhead”“overhead”

oror … …

Are you … ““Rock Rock Stars of the Stars of the

AAgge of Talente of Talent””

EXCELLENCE.EXCELLENCE.

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

Department Head

to …

ManaginManaging g

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

“Typically in a mortgage company or financial services company, ‘risk

management’ is an overhead, not a revenue center. We’ve become more

than that. We We ppaayy for for ourselvesourselves,, and we and we

actuallactuallyy make mone make moneyy for the comfor the comppanany.”y.” —Frank

Eichorn, Director of Credit Risk Data Management Group, Wells Fargo Home Mortgage

(Source: sas.com)

Mantra:

“Eichorn “Eichorn it!”it!”

Answer:

PSFPSF

Core Mechanism:“Game-changing Solutions”

PSFPSF (Professional Service Firm “model”/The Organizing Principle)

+

Brand YouBrand You(“Distinct” or “Extinct”/The Talent)

+

Wow! ProjectsWow! Projects (“Different” vs “Better”/The Work)

The New Enterprise Value-Added Equation/Mark2006

(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) Launched on Awesome (4) Launched on Awesome “QUESTS FOR EXCELLENCE”“QUESTS FOR EXCELLENCE”

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

Innovative 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”

Big Idea/“Meta”-Idea/Premier “Engine of Value Added”

(1) (1) The TalentThe Talent: “Best Roster” of Entrepreneurial-: “Best Roster” of Entrepreneurial-minded minded Brand Yous.Brand Yous.

(2) (2) The (Virtual) OrganizationThe (Virtual) Organization: Internal or : Internal or External External “PSF”/Professional Service Firm“PSF”/Professional Service Firm

working with “Best Anywhere” = Engine of working with “Best Anywhere” = Engine of Value Added through the Application of Creative Value Added through the Application of Creative

“Intellectual Capital”“Intellectual Capital”

(3) (3) The Work ProductThe Work Product: “Game Changer”/ : “Game Changer”/ “Gaspworthy” “Gaspworthy” WOW ProjectsWOW Projects

Core Mechanism:“Game-changing Solutions”

PSFPSF (Professional Service Firm “model”/The Organizing Principle)

+

Brand YouBrand You(“Distinct” or “Extinct”/The Talent)

+

Wow! Wow! ProjectsProjects

(“Different” vs “Better”/The Work)

““Astonish me!”Astonish me!” (SD).

“Build something great!”“Build something great!” (HY).

“Make it immortal!”“Make it immortal!” (DO)

“Insanely great” “Insanely great” (SJ)(SJ)

“Solutions World”:

The Mega-Mega-PSFPSF

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”)

Core Mechanism:“Game-changing Solutions”

Brand You(S)Brand You(S)(“Distinct” or “Extinct”/The Talent)

+

Wow! Project(s)Wow! Project(s) (“Different” vs “Better”/The Work)

==

PSF(S)PSF(S) (Professional Service Firm “model”/The Organizing Principle)

=

“Corporation” as“Corporation” as

“Mega-“Mega-PSF”PSF”

Agriculture Age (farmers)

Industrial Age (factory workers)

Information Age (knowledge workers)

Conceptual Age*Conceptual Age* (creators)

*Murakami Teruyasu: “Age of Creation Intensification”

Source: Dan Pink, A Whole New Mind

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”

?????

Do good Do good (excellent?!)(excellent?!) work work

Make a lot of moneyMake a lot of money

Pointed Pointed Point of Point of View!View!

R.POV8R.POV8**Remarkable Point Of View/8 Words or less/“If you can’t state your

position in eight words or less you don’t have a position.”—SG

“If you can’t write your movie idea on

the back of a back of a business cardbusiness card,,

you ain’t got a movie.” —Samuel Goldwyn

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

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 is (“My life is my message”—Gandhi)my message”—Gandhi)29. Excellence+ in 29. Excellence+ in EXECUTIONEXECUTION … 100.00% of the Time … 100.00% of the Time (No such thing as a “small sins”/World Series Ring to(No such thing as a “small sins”/World Series Ring to the Batboy!) the Batboy!) 30. “Drop everything”/“Swarm” to Support a Harried-On30. “Drop everything”/“Swarm” to Support a Harried-On The Verge TeamThe Verge Team31. 31. SPEND AS AGGRESSIVELY ON R&D AS A TECH FIRM OR SPEND AS AGGRESSIVELY ON R&D AS A TECH FIRM OR CIRQUE DU SOLEILCIRQUE DU SOLEIL32. 32. A PROPRIETARY METHODOLOGYA PROPRIETARY METHODOLOGY (FBR, McKinsey, Chiat Day, IDEO, (FBR, McKinsey, Chiat Day, IDEO, old EDS)old EDS)33. Web (Technology) Obsession33. Web (Technology) Obsession34. 34. BRAND/“LOVEMARK” MANIACSBRAND/“LOVEMARK” MANIACS (Organize Around a Point (Organize Around a Point of View Worth BROADCASTING: “You must be theof View Worth BROADCASTING: “You must be the change you wish to see in the world”—Gandhi)change you wish to see in the world”—Gandhi)3535. . PASSION! ENTHUSIASM!PASSION! ENTHUSIASM! (Passion & Enthusiasm have as (Passion & Enthusiasm have as much a place at the Head Table in a “PSF” as in amuch a place at the Head Table in a “PSF” as in a widgets factory: “You can’t behave in a calm, rationalwidgets factory: “You can’t behave in a calm, rational manner. You’ve got to be out there on the lunatic manner. You’ve got to be out there on the lunatic fringe”—Jack Welch)fringe”—Jack Welch)

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.

“PSF” Nirvana

CounselCounseloror

Trusted AdvisorTrusted Advisor

Answer:

PSFPSF

PSF + BY + PSF + BY + WP = VAWP = VA

PSF + BY + PSF + BY + WPWP + DD + + DD + E = UVA E = UVA

PSF + BY + PSF + BY + WP + DD + WP + DD +

E = E = UUVAVA

PSFPSF (Professional Service Firm) + BYBY (Brand You) + WPWP (WOW Projects) +

DDDD (Dramatic Difference)

+ EE (Excellence) = UVAUVA (Unassailable

Value-Added)

Answer:

PSFPSF

“Big Brown’s New Bag: UPS

Aims to Be the Traffic Manager for Corporate

America” —Headline/BW/2004

I. LAN Installation Co. (3%)

II. Geek Squad. (30%.)

III. Acquired by BestBuy.

IV. Flagship of BestBuyFlagship of BestBuy Wholesale “Solutions” Wholesale “Solutions” Strategy Makeover. Strategy Makeover.

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

EXCELLENCE. EXCELLENCE.

ATTITUDE.ATTITUDE.TRANSFORMATION.TRANSFORMATION.

PSF.PSF.

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?

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)

“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)

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

Trapper: <$20<$20 per beaver pelt.

Source: WSJ

WDCP*WDCP*:: $$150150 to remove to remove

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

stay.stay. * “Wildlife Damage-control Professional”

Source: WSJ

The WOWWOW!! Project.

““Let’s make Let’s make a dent in the a dent in the universe!”universe!” —Steve

Jobs

Your Current Project?

1. Another day’s work/Pays the rent.4. Of value.7. Pretty Damn Cool/Definitely subversive.10. WE AIM TO CHANGE THEWE AIM TO CHANGE THE WORLD. WORLD. (Insane!/Insanely(Insane!/Insanely Great!/WOW!) Great!/WOW!)

““Astonish me!”Astonish me!” (S.D).

“Build something great!”“Build something great!” (H.Y.).

“Make it immortal!”“Make it immortal!” (D.O.)

If you are not If you are not prepared to be prepared to be fired over your fired over your

beliefs … you are beliefs … you are working on the working on the

wrong project.wrong project. —TP

Will you actually Will you actually remember it as remember it as worthwhile worthwhile 10 10

yearsyears from now?” from now?” —S.H.

You! =You! = Your Project Your Project

Portfolio!Portfolio!

A “position” is A “position” is

notnot an an

“accomplishment.”“accomplishment.” —TP

WOWWOW!! Projects:

Nuts & Bolts (a few)

Playmate!*Playmate!*Playpen!Playpen!

*Can be Client, supplier … as well as Insider

Playmate!*Playmate!*Playpen!Playpen!

Prototype!Prototype!

*Can be Client, supplier … as well as Insider

Where to look for “Playmates”:

F.F.F.F.F.F.F.F. (Find a Fellow Freak Faraway)

Forward, march: : The The “Sri Lanka “Sri Lanka Stratagem”Stratagem”

Where NOT to look for “Playmates”: BIGBIG Division, BIGBIG Customer, BIGBIG Vendor,

UPUP

Culture of Prototyping

“Effective prototyping may be

the most valuable core the most valuable core competencecompetence an innovative

organization can hope

to have.” —Michael Schrage

Prototype Prototype mania/mania/

maniac!*maniac!*

THE PROJECT 50

Starting a WOWWOW!! Projects Projects

Epidemic:Epidemic:

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

Premise:

““Ordering” Ordering” Systemic Systemic

Change is a Change is a Waste of Waste of

Time!Time!

“Somewhere in your organization, groups of

people are already doing things differently and

better. To create lastinTo create lastingg chanchangge, find these areas of e, find these areas of ppositive deviance and fan ositive deviance and fan

the flamesthe flames.”.” —Richard Tanner Pascale & Jerry Sternin, “Your Company’s Secret Change Agents,” HBR

“Some people look for things that went wrong

and try to fix them. II look for thin look for thinggs that s that

went riwent rigght, and trht, and tryy to to build off thembuild off them.”.” —Bob Stone

(Mr ReGo)

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

Demo = Story“A key – perhaps the key –

to leadership is thethe effective communication effective communication

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

An Anatomy of Leadership

Best Best story story wins!wins!

REAL Org Change: Demos & ModelsDemos & Models (“Model (“Model

Installations,” “ReGo Labs”)/ Installations,” “ReGo Labs”)/ HeroesHeroes (mostly extant: “burned to (mostly extant: “burned to

reinvent gov’t”)/ reinvent gov’t”)/ StoriesStories && StorytellersStorytellers (Props!)/ (Props!)/

ChroniclersChroniclers (Writers, Videographers, Pamphleteers, Etc.)/ (Writers, Videographers, Pamphleteers, Etc.)/

CheerleadersCheerleaders && RecognitionRecognition (Pos>>Neg, Volume)/ (Pos>>Neg, Volume)/

New LanguageNew Language (Hot/Emotional/WOW)/ (Hot/Emotional/WOW)/ SeekersSeekers

(networking mania)/ (networking mania)/ ProtectorsProtectors/ / Support GroupsSupport Groups/ /

End Runs—“Pull Strategy”End Runs—“Pull Strategy” (weird alliances, weird (weird alliances, weird

customers, weird suppliers, weird alumnae-JKC)/ customers, weird suppliers, weird alumnae-JKC)/ Field “Real Field “Real People” FocusPeople” Focus (3 COs) (long way away)/(3 COs) (long way away)/

SpeedSpeed (O.O.D.A. Loops—act before the “bad guys” can react) (O.O.D.A. Loops—act before the “bad guys” can react)

C.f., Bob Stone, C.f., Bob Stone, Lessons from an Uncivil ServantLessons from an Uncivil Servant

JKC

1. Scour for renegades; wine & dine.

2. Go outside for funds.

JKCJKC

““Make your ownMake your own McKinsey”McKinsey” (AP)

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

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

Stories … Stories … Paint me a Paint me a picturepicture … Story … Story

“infrastructure” … “infrastructure” … Demos Demos … Quick … Quick prototypes … prototypes …

ExperimentsExperiments … Heroes … … Heroes … Renegades Renegades … …

Skunkworks … Demo Skunkworks … Demo Funds … Funds … V.C.V.C. … G.M. … … G.M. … RosterRoster … Portfolio … … Portfolio … Stone’s Rules … Stone’s Rules … JKC’s JKC’s

RulesRules

Tempo:Tempo: He who He who has the has the quickest quickest

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

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

Subversive Change

Be(very)ware “genetic constraints” (history’s looong Be(very)ware “genetic constraints” (history’s looong arm)arm)

You must “do” GandhiYou must “do” Gandhi

Hire weird (fulltime or temp)Hire weird (fulltime or temp)

Find the extant crazies (troll for them via offers to join Find the extant crazies (troll for them via offers to join weird project teams)weird project teams)

Create a (quiet) “Crazies Club”/Keep extendin’ the WebCreate a (quiet) “Crazies Club”/Keep extendin’ the Web

Create “boondocks projects” by the truckload (with Create “boondocks projects” by the truckload (with partners of every flavor)partners of every flavor)

Understand: Yours is a “protection racket”Understand: Yours is a “protection racket”Sky High Standards!! (There’s a deadly serious reason Sky High Standards!! (There’s a deadly serious reason

for “all this”—life or death)for “all this”—life or death)

TP Heroes: Allan Puckett; Bob Stone; Jill Ker Conway; TP Heroes: Allan Puckett; Bob Stone; Jill Ker Conway; Kelly Johnson; John BoydKelly Johnson; John Boyd

“Never doubt that a Never doubt that a small group of small group of

committed peoplecommitted people can change the can change the

world. world. Indeed it isIndeed it is the only thing that the only thing that ever has.”ever has.” —Margaret Mead

SP: “But can you turn a ‘defensive player’ into an ‘offensive player’?”

TP: ““YesYes! Work with him/her to re-frame ! Work with him/her to re-frame their principal project to the point that their principal project to the point that their their eeggoo is fully engaged and it becomes is fully engaged and it becomes something of a ‘life compulsion.’something of a ‘life compulsion.’ ” *

* “If you and I had $150K in the bank and on the line and the day before the opening the Fire Inspector …”

EXEXCELLE CELLE ALWALWAYSAYS..