Tom Peters’Tom Peters’

Excellence.Excellence.Always.Always.Baltic Management ConferenceBaltic Management Conference

Vilnius/23 March 2009Vilnius/23 March 2009

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”

#1#1

Good times and Good times and [especially][especially] bad: bad: Ex-Ex-cell-cell-ence.ence.

““Mr. Watson, Mr. Watson, how long does it how long does it take to achieve take to achieve

Excellence?”Excellence?”

““11 minute”minute”

Excellence.Excellence.AlwaysAlways..

If not Excellence, If not Excellence, whatwhat??????If not Excellence If not Excellence now, now, whenwhen??????

#2#2

““It suddenly It suddenly occurred to me …occurred to me …

“It suddenly occurred to me that that in the space of two in the space of two or three hours he or three hours he nevernever talked talked

about cars.”about cars.” —Les Wexner—Les Wexner                        

Message from a banker, circa 1988:Message from a banker, circa 1988: “Tom let “Tom let me tell you the definition of a me tell you the definition of a

good lending officer. After good lending officer. After church on Sunday, on the way church on Sunday, on the way home with his family, he takes home with his family, he takes a little detour to drive by the a little detour to drive by the factory he just lent money to. factory he just lent money to.

Doesn’t go in or any suchDoesn’t go in or any such thing, just drives by and thing, just drives by and

takes a look.”takes a look.”

““Too Much Cost, Not Enough Value” … Too Much Cost, Not Enough Value” … “Too “Too Much Speculation, Not Enough Investment”Much Speculation, Not Enough Investment” … … “Too Much Complexity, Not Enough Simplicity” “Too Much Complexity, Not Enough Simplicity” … … “Too Much Counting, Not Enough Trust”“Too Much Counting, Not Enough Trust” … …

“Too Much Business Conduct, Not Enough “Too Much Business Conduct, Not Enough Professional Conduct” … Professional Conduct” … “Too Much “Too Much

Salesmanship, Not Enough Stewardship”Salesmanship, Not Enough Stewardship” … … “Too Much Focus on Things, Not Enough Focus “Too Much Focus on Things, Not Enough Focus

on Commitment” … on Commitment” … “Too Many Twenty-first “Too Many Twenty-first Century Values, Not Enough Eighteenth-Century Values, Not Enough Eighteenth-

Century Values”Century Values” … “Too Much ‘Success,’ Not … “Too Much ‘Success,’ Not Enough Character” Enough Character” —chapter titles from —chapter titles from John Bogle, John Bogle, Enough. The Measures of Money, Business, and LifeEnough. The Measures of Money, Business, and Life (Bogle is (Bogle is

founder of the Vanguard Mutual Fund Group)founder of the Vanguard Mutual Fund Group)

““Managers have lost dignity over the past Managers have lost dignity over the past decade in the face of wide spread institutional decade in the face of wide spread institutional

breakdown of trust and self-policing in breakdown of trust and self-policing in business.business. To reTo reggain societain societyy’s trust, ’s trust, we believe that business leaders we believe that business leaders must embrace a wamust embrace a wayy of lookin of lookingg at at their role that their role that ggoes beoes beyyond their ond their resrespponsibilitonsibilityy to the shareholders to the shareholders

to include a civic and to include a civic and ppersonal ersonal commitment to their dutcommitment to their dutyy as as

institutional custodiansinstitutional custodians.. In other In other words, it is time that management becamewords, it is time that management became

a profession.”a profession.” —Rakesh Khurana & Nitin Nohria, “It’s —Rakesh Khurana & Nitin Nohria, “It’s Time To Make Management a True Profession,” HBR/10.08Time To Make Management a True Profession,” HBR/10.08

Response to “most important Response to “most important contribution”:contribution”: “I focused this discipline “I focused this discipline

on People and Power; on Values, on People and Power; on Values, Structure, and Constitution; andStructure, and Constitution; and

above all, on above all, on resrespponsibilitiesonsibilities —that is, —that is,

focused the Discipline of Managementfocused the Discipline of Management on management as a truly liberal art.”on management as a truly liberal art.”

#3#3

““When the seas are When the seas are calm, all ships alike calm, all ships alike

show mastery in show mastery in floating.”floating.” —WSC—WSC

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

anxious to win”anxious to win”

Could Thoroughly Could Thoroughly Rotten TimesRotten Times

Be The Ultimate Opportunity Be The Ultimate Opportunity For Greatness/Excellence?*For Greatness/Excellence?*

(*Hint: The Answer(*Hint: The Answer May Be/Is “Yes.”)May Be/Is “Yes.”)(*Hint: What’s the (*Hint: What’s the

Alternative?)Alternative?)XXXXXX/The Grove/15.01.09XXXXXX/The Grove/15.01.09

#4#4

BIG?

“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 stretching collected detailed performance data stretching

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

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

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

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

our control:our control: Everything in existence tends to deteriorate.” —Norberto Odebrecht, —Norberto Odebrecht, Education Through WorkEducation Through Work

Dick Kovacevich: You don’t get better by

being bigger. You get worse.”

#5#5

#4 Japan#4 Japan#2T USA#2T USA

#2T China#2T China

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

#2 China#2 China

#1 #1 GermanyGermany

Reason!!!Reason!!!

MittelstandMittelstand

#6#6

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

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

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

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

Jim’s Computer ServicesJim’s Computer Services

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

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

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

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

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

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

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

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

**Lived in same town all adult lifeLived in same town all adult life*First generation that’s wealthy/*First generation that’s wealthy/ no parental support no parental support*“Don’t look like millionaires, don’t dress*“Don’t look like millionaires, don’t dress like millionaires, don’t eat like like millionaires, don’t eat like millionaires, don’t act like millionaires” millionaires, don’t act like millionaires”*“Many of the types of businesses [they]*“Many of the types of businesses [they] are in could be classified as ‘dull- are in could be classified as ‘dull- normal.’ normal.’ [They] are welding contractors, [They] are welding contractors, auctioneers, scrap-metal dealers, lessors of auctioneers, scrap-metal dealers, lessors of portable toilets, dry cleaners, re-builders of portable toilets, dry cleaners, re-builders of diesel engines, paving contractors …” diesel engines, paving contractors …”Source: Source: The Millionaire Next DoorThe Millionaire Next Door,, Thomas Stanley & William Danko Thomas Stanley & William Danko

#7#7

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

was asked, “What was the was asked, “What was the most important lesson most important lesson

you’ve learned in your long you’ve learned in your long and distinguished career?” and distinguished career?”

His immediate answer …His immediate answer …

““remember remember to tuck the to tuck the

shower curtain shower curtain inside the inside the bathtubbathtub””

““Execution Execution isis strategy.”strategy.”

—Fred Malek—Fred Malek

#8#8

MBWMBWAA

19821982

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

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

““Breakthrough” 82*Breakthrough” 82*

People! People! CustomersCustomers

! ! Action! Action! Values! Values!

**In Search of ExcellenceIn Search of Excellence

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

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

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

relationships))relationships))

“If I could have chosen not to tackle the IBM culture 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 [Yet] I came to see in my time at IBM that see in my time at IBM that

cultureculture isn’t just one aspect isn’t just one aspect

of the gameof the game—— it isit is the gamethe game.”.” —Lou

Gerstner

#9#9

20072007SiberiaSiberia

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

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

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

#10#10

20072007SydneSydne

yy

Organizations Organizations existexist to to serveserve. Period.. Period.Leaders Leaders live live toto serveserve. Period.. Period.

… … no less than no less than CathedralsCathedrals in which the full and in which the full and

awesome power of the awesome power of the Imagination and Spirit and Imagination and Spirit and native Entrepreneurial flairnative Entrepreneurial flair

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

#11#11

““We are a We are a ‘Life ‘Life

Success’ Success’ Company.”Company.”

Dave Liniger, founder, RE/MAX

““Managing winds up being Managing winds up being the management of the the management of the allocation of resources allocation of resources

against tasks. Leadership against tasks. Leadership focuses on people. focuses on people. MMyy

definition of a leader definition of a leader is someone who is someone who

helhelpps s ppeoeopple le succeedsucceed.”.” —Carol Bartz, Yahoo!—Carol Bartz, Yahoo!

The Dream ManagerThe Dream Manager —Matthew Kelly—Matthew Kelly

“An organization can only become the-best-version-of-itself to “An organization can only become the-best-version-of-itself to the extent that the people who drive that organization are the extent that the people who drive that organization are

striving to become better-versions-of-themselves.” “A striving to become better-versions-of-themselves.” “A company’s purpose is to become the-best-version-of-itself. The company’s purpose is to become the-best-version-of-itself. The question is:question is: What is an emploWhat is an employyee’s ee’s ppururppose? ose? Most would saMost would sayy, ‘to hel, ‘to helpp the com the comppananyy

achieve its achieve its ppururppose’—but theose’—but theyy would be would be wronwrong. g. That is certainlThat is certainlyy part of the part of the emploemployyee’s role, but an emploee’s role, but an employyee’s ee’s

pprimarrimaryy ppururppose is to become the-best-ose is to become the-best-version-of-himself or –herselfversion-of-himself or –herself.. … When a … When a

company forgets that it exists to serve customers, it quickly company forgets that it exists to serve customers, it quickly goes out of business.goes out of business. Our employees are our first Our employees are our first

customers, and our most important customers, and our most important customers.”customers.”

““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 more than they’ve ever been before, ever been before, more than they’ve more than they’ve

dreamed of beingdreamed of being.”.” ——Robert Altman, Oscar acceptance speechRobert Altman, Oscar acceptance speech

““No matter what the No matter what the situation, situation, [the great manager’s][the great manager’s] first first resrespponse is alwaonse is alwayys to think s to think

about the individual about the individual concerned and how thinconcerned and how thinggs s

can be arrancan be arrangged to ed to helhelpp that that individual exindividual expperience erience successsuccess.”.” —Marcus Buckingham, —Marcus Buckingham,

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

““Leaders Leaders

‘‘SERVESERVE’’ people. people.

Period.”Period.” —inspired by Robert Greenleaf

#12#12

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

are …are …

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

are …are … “What “What do do youyou think?”think?”

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

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

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

1818””

*Listening is of the*Listening is of the utmost … utmost … strategicstrategic

importance! importance!*Listening is …*Listening is … trainabletrainable !!(** (** “Strategic listening”“Strategic listening” will be a will be a corecore coursecourse in TP’s in TP’s MBA/GTD curriculum!) MBA/GTD curriculum!)

(Tricks of the trade: Nod your (Tricks of the trade: Nod your head like a deranged person)head like a deranged person)

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

William JamesWilliam James

““It was much later that I realized It was much later that I realized Dad’s secret. He gained respect by Dad’s secret. He gained respect by giving it. He talked and listened to giving it. He talked and listened to

the fourth-grade kids in Spring Valley the fourth-grade kids in Spring Valley who shined shoes the same way he who shined shoes the same way he talked and listened to a bishop or a talked and listened to a bishop or a

college president.college president. He was He was seriously interested in seriously interested in

who you were and what who you were and what you had to say.”you had to say.”

—Sara Lawrence-Lightfoot, Respect

““Buy in”- “Ownership”-Buy in”- “Ownership”-Authorial bragging Authorial bragging rights-“Born again” rights-“Born again”

ChampionChampion = = OneOne LineLine ofof CodeCode!!

"Trust the "Trust the development development experts—all experts—all

seven billion of seven billion of them.”them.” —headline, —headline, Financial Times, Financial Times,

0529.08, to an article by development guru William Easterly, 0529.08, to an article by development guru William Easterly, commenting negatively on the World Bank Growth commenting negatively on the World Bank Growth

Commission’s recent report that concludes, in effect, Commission’s recent report that concludes, in effect, ““trust the World Bank experts”trust the World Bank experts”

#13#13

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

employees like employees like customers.”customers.” —Herb Kelleher, —Herb Kelleher, complete answer, upon being asked his “secrets to success”complete answer, upon being asked his “secrets to success”

Source: Joe Nocera, Source: Joe Nocera, NYTNYT, “Parting Words of an Airline Pioneer,” on the occasion , “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots

union took out a full-page ad in USA Today thanking HK for all he had done; union took out a full-page ad in USA Today thanking HK for all he had done; across theacross the

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

The Customer The Customer Comes SecondComes Second

——Hal Rosenbluth and Diane McFerrin Peters* (*no relation)Hal Rosenbluth and Diane McFerrin Peters* (*no relation)

““Business has to give Business has to give people enriching, people enriching, rewarding lives,rewarding lives,

or it's simply not or it's simply not worth doingworth doing.”.” —Richard Branson—Richard Branson

#1 Resource for Troubled Times:#1 Resource for Troubled Times:

Committed.Committed.Engaged.Engaged.Growing.Growing.Respected.Respected.Trusted.Trusted.Informed.Informed.People.People.(Customers.)(Customers.)(Vendors.)(Vendors.)(Communities.)(Communities.)

#14#14

TP: TP: “How to flush

$500,000 down

the toilet in one easy

lesson!!”

< CAPEX< CAPEX> People!> People!

#1/#1/WegmansWegmans

#15#15

Our MissionTo develop and manage To develop and manage

talent;talent;to apply that talent,to apply that talent,

throughout the world, throughout the world, for the benefit of clients;for the benefit of clients;to do so in partnership; to do so in partnership;

to do so with profit.to do so with profit.WPP

Brand Brand = =

Talent.Talent.

Ben Ben Changes Changes

His BHAG!*His BHAG!*

*Big Hairy Audacious Goal/Jim Collins*Big Hairy Audacious Goal/Jim Collins

#16#16

ProfitableProfitable

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

ThoughtfulnessThoughtfulness is key to is key to customer retentioncustomer retention..ThoughtfulnessThoughtfulness is key to is key to emempploloyyee recruitmentee recruitment and satisfactionand satisfaction..Thoughtfulness Thoughtfulness is key to is key to brand perceptionbrand perception..ThoughtfulnessThoughtfulness is key to your ability to is key to your ability to look in look in the mirrorthe mirror —and tell your kids about your job. —and tell your kids about your job.““ThoughtfulnessThoughtfulness is is freefree.”.”ThoughtfulnessThoughtfulness is key to is key to ssppeedineedingg thin thinggs us up—p— it it reduces frictionreduces friction..ThoughtfulnessThoughtfulness is key to is key to transtranspparencarency and y and eveneven cost containmentcost containment—it abets rather than stifles—it abets rather than stifles truth-telling.truth-telling.

nonenone!!

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

nonenone of THE top 15 of THE top 15

factors determining factors determining PPatient atient SSatisfaction referred to patient’s atisfaction referred to patient’s

health health outcomeoutcome

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

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

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

““KindnesKindness is s is

free.”free.”

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

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

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

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

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

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

““Perhaps the simplest and most Perhaps the simplest and most profound of all human interactions profound of all human interactions is KINDNESS. … is KINDNESS. … But if it is so But if it is so

simsimpple, it is surle, it is surpprising how rising how frefreqquentluentlyy it is absent from it is absent from

our healthcare our healthcare environmentsenvironments.. … Many staff … Many staff

members report verbal members report verbal

‘abuse’ by physicians, by physicians, managers and coworkers.”managers and coworkers.” ——Putting Putting

Patients FirstPatients First, Susan Frampton, Laura Gilpin, Patrick Charmel, Susan Frampton, Laura Gilpin, Patrick Charmel

““Planetree is about Planetree is about human beings caring human beings caring

for other human for other human beings.”beings.”

——Putting Patients FirstPutting Patients First, Susan Frampton,, Susan Frampton, Laura Gilpin & Patrick Charmel Laura Gilpin & Patrick Charmel

((“Ladies and gentlemen “Ladies and gentlemen serving ladies and serving ladies and

gentlemen”gentlemen” —Ritz Carlton credo—Ritz Carlton credo))

#17#17

#1#1

#1.#1.StrategicStrategic..Priority.Priority.Period.Period.

““Development can help great Development can help great

people be even better—people be even better— but if but if I had a dollar to I had a dollar to

spend, I’d spend 70 spend, I’d spend 70 cents getting the cents getting the

right person in the right person in the doordoor.”.” ——Paul Russell, Director, Leadership &Paul Russell, Director, Leadership &

Development, Google Development, Google

““In short, hiring is In short, hiring is the the most immost impportant ortant

asasppect of businessect of business and yet remains and yet remains

woefully woefully misunderstood.”misunderstood.”

Source: Source: Wall Street JournalWall Street Journal, 10.29.08,, 10.29.08, review ofreview of Who: The A Method for Hiring, Who: The A Method for Hiring,

Geoff Smart and Randy StreetGeoff Smart and Randy Street

CCtataOO**Chief talent acquisitiontalent acquisition Officer

#18#18

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

Employee retention & satisfaction:Employee retention & satisfaction: OverwhelminOverwhelminggllyy, ,

based on the based on the first-first-line manaline managger!er!

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

#19#19

2/year 2/year = =

legacy.legacy.

#20#20

““Leaders Leaders

‘‘dodo’’ people. people.

Period.”Period.” —Anon.

#21#21

““Diverse groups of problem solvers—groupsDiverse groups of problem solvers—groups of people with diverse tools—consistently of people with diverse tools—consistently outperformed groups of the best and the outperformed groups of the best and the

brightest. If I formed two groups, one brightest. If I formed two groups, one randomrandom (and therefore diverse) and one (and therefore diverse) and one

consisting of the consisting of the bestbest individual performers, individual performers, the first group almost always did better. …the first group 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

#22#22

““The Billion-man The Billion-man Research Team: Research Team:

Companies offering Companies offering work to online work to online

communities are communities are reaping the benefits of reaping the benefits of

‘crowdsourcing.’”‘crowdsourcing.’” —Headline, —Headline, FTFT, 0110.07, 0110.07

Rob McEwen/CEO/CEO/Goldcorp Inc./Goldcorp Inc./

Red Lake Red Lake goldgoldSource: Wikinomics: How Mass

Collaboration Changes Everything, Don Tapscott & Anthony WilliamsDon Tapscott & Anthony Williams

Focus Groups:Focus Groups: No!No!Continuing Continuing

Conversations:Conversations: Yes!Yes!

#23#23

““In Blackburn,In Blackburn, fourfour-y-yearear--oldsolds are making podcasts. In Suffolk, are making podcasts. In Suffolk, the sometimes tedious and impractical ritual the sometimes tedious and impractical ritual

of morning Assembly has been replaced in one of morning Assembly has been replaced in one school by a news video compiled by pupils; school by a news video compiled by pupils; posting it on YouTube means parents can posting it on YouTube means parents can

watch as well—and they do. … Learners at all watch as well—and they do. … Learners at all stages and ages, from all over the world, are stages and ages, from all over the world, are

downloading free tutorials while they downloading free tutorials while they replenish their iPods, courtesy of iTunes U. …replenish their iPods, courtesy of iTunes U. …

Source: Source: The GuardianThe Guardian, 0113.09, “Resource 2009,” a preview of BETT 2009, 0113.09, “Resource 2009,” a preview of BETT 2009

#24#24

“The The Bottleneck Bottleneck

Is at the Top Is at the Top of the of the

Bottle”Bottle”“Where are you likely to find people with the least diversity of

experience, the largest investment in the past, and the greatest reverence for industry dogma:

AtAt thethe totop!”p!” — Gary Hamel/Harvard Business Review

#25#25

““Normal” Normal” = = “o “o forfor 800”800”

All You Need to Know About All You Need to Know About “Sources of Innovation”:“Sources of Innovation”:

Angry Angry people!people! [angry with [angry with

the status quo]the status quo]

SkunkWorks/ SkunkWorks/ “Skunks” (!!!)“Skunks” (!!!)

“SkunkWorks”/ “ParallelUniverse”

“the 1%1% solution”

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

#26#26

We We areare the the companycompany we keepwe keep

The “We are what we eat”The “We are what we eat” axiom: axiom: At its core, At its core, evereveryy (!!!) (!!!)

relationship-partnership relationship-partnership decision (employee, vendor, decision (employee, vendor, customer, etc) is a customer, etc) is a stratestrateggicic

decision about:decision about:

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

””

Measure “Strangeness”/Portfolio QualityMeasure “Strangeness”/Portfolio QualityStaffStaff

ConsultantsConsultantsVendorsVendors

Out-sourcing Partners Out-sourcing Partners (#, Quality)(#, Quality)Innovation Alliance PartnersInnovation Alliance Partners

CustomersCustomersCompetitors 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

““[CEO A.G.] Lafley has shifted [CEO A.G.] Lafley has shifted P&G’sP&G’s focus focus on inventing all its own products to on inventing all its own products to

developingdeveloping others’ others’ inventions at inventions at least half the least half the

timetime.. One successfulOne successful example, Mr. Clean Magic Eraser, based on a product example, Mr. Clean Magic Eraser, based on a product

found in an Osaka market.”found in an Osaka market.” ——FortuneFortune

Axiom:Axiom: Never use a vendor Never use a vendor

who is not in the who is not in the top top quartilequartile (decile?) in (decile?) in

their industry on R&D their industry on R&D spending!*spending!*

*Inspired by Hummingbird*Inspired by Hummingbird

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

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

““You will become You will become like the five people like the five people you associate with you associate with the most—this can the most—this can

be either a blessing be either a blessing or a curse.”or a curse.” —Billy Cox—Billy Cox

#27#27

Innovation IndexInnovation Index:: How many of your Top 5Top 5 Strategic

Initiatives/Key Projects score 88 or higher or higher [out of 10] on a

“Weird”“Weird”/ / “Profound”“Profound”/ / “Wow”“Wow”//“Game- changer”“Game- changer”

Scale?

Iron Innovation Equality Law:Iron Innovation Equality Law: The quality and The quality and

quantity and quantity and imaginativeness of imaginativeness of innovation shall be innovation shall be

the same in all the same in all functions functions —e.g., in HR and —e.g., in HR and

purchasing as much as in marketing or purchasing as much as in marketing or product development.product development.

-C-C+R&D+R&D

The “8Ps” of Innovation Success:The “8Ps” of Innovation Success:

Pissed off! Pissed off! [Determined to change the world][Determined to change the world] Passion!!!! Passion!!!! [Persist, take the heat, sell][Persist, take the heat, sell] Prototypes. Prototypes. [Fast & Furious][Fast & Furious]

pow!! pow!! [Knocks their socks off][Knocks their socks off]

Pals. Pals. [Buddies with different skills, recruiting ability][Buddies with different skills, recruiting ability]

Protector. Protector. [Run cover, champion your cause][Run cover, champion your cause]

Politics. Politics. [Political skill][Political skill]

Persistence. Persistence. [Can handle the bumps and U-turns][Can handle the bumps and U-turns]

#28#28

XFXXFX

X X =XFX*=XFX*

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

Never Never waste a waste a lunch!lunch!

????????

% XF % XF lunches*lunches*

*Measure!*Measure!

(Way) Underutilized Lever(Way) Underutilized Lever

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

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

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

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

*Entire “XF-50” List is an Appendix to the LONG version *Entire “XF-50” List is an Appendix to the LONG version of this presentation, posted at tompeters.comof this presentation, posted at tompeters.com

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.

#29#29

““Forget Forget ChinaChina, , IndiaIndia and the and the

InternetInternet: Economic : Economic Growth Is Driven Growth Is Driven by by WomenWomen.”.”

Source: Headline, Economist

““Women Women areare thethe

majority majority market”market”

—Fara Warner/—Fara Warner/The Power of the PurseThe Power of the Purse

““The The most most significant variablesignificant variable inin everyevery sales situation is sales situation is thethe gendergender of the buyer, of the buyer, and more importantly, how and more importantly, how

the salesperson the salesperson communicates to the communicates to the

buyer’s gender.”buyer’s gender.” —Jeffery Tobias Halter, Selling to Men, Selling to Women

The Perfect AnswerJill and Jack buy

slacks in black…

Cases! Cases! Cases!Cases! Cases! Cases!McDonald’sMcDonald’s (“mom-centered” to “majority consumer”;

not via kids)

Home DepotHome Depot (“Do it [everything!] Herself”)

P&GP&G (more than “house cleaner”)

DeBeersDeBeers (“right-hand rings”/$4B)

AXA FinancialAXA FinancialKodakKodak (women = “emotional centers of the household”)

NikeNike (> jock endorsements; new def sports; majority consumer)

AvonAvonBratzBratz (young girls want “friends,” not a blond stereotype)

Source: Fara Warner/Fara Warner/The Power of the PurseThe Power of the Purse

““Goldman Sachs in Tokyo has Goldman Sachs in Tokyo has developed an index of 115 developed an index of 115

companies poised to benefit companies poised to benefit from women’s increased from women’s increased

purchasing power; purchasing power; over the past over the past decade the value of shares in decade the value of shares in Goldman’s basket has risen by Goldman’s basket has risen by

96%, against the Tokyo 96%, against the Tokyo stockmarket’s rise stockmarket’s rise

of 13%of 13%.”.” —Economist, April 15

Big bank CEO, summarizing to his top-management team his Big bank CEO, summarizing to his top-management team his notes from TP’s presentation:notes from TP’s presentation: “Tom’s made a great “Tom’s made a great point; he let us know that our customer base point; he let us know that our customer base will be different and more diverse in the will be different and more diverse in the future.”future.”Tom:Tom: “With all due respect, that’s “With all due respect, that’s notnot what what Tom said. Though I am an unabashed Tom said. Though I am an unabashed supporter of ‘diversity’ in general, what I said supporter of ‘diversity’ in general, what I said

was was ‘‘SheShe is your is your

customer—and has been for a long time and customer—and has been for a long time and will be forever.’ And ‘she’ is notably will be forever.’ And ‘she’ is notably AWOLAWOL in in this this [meeting][meeting] room roomfull of senior ‘leaders.’full of senior ‘leaders.’ ””

““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

10 UNASSAILABLE REASONS WOMEN RULE10 UNASSAILABLE REASONS WOMEN RULEWomenWomen make [all] the financial decisions.WomenWomen control [all] the wealth.WomenWomen [substantially] outlive men.WomenWomen start most of the new businesses.Women’sWomen’s work force participation rates have soared worldwide.WomenWomen are closing in on “same pay for same job.”WomenWomen are penetrating senior ranks rapidly [even if the pace is slow for the corner office per se].Women’sWomen’s leadership strengths are exceptionally well aligned with new organizational effectiveness imperatives.WomenWomen are better salespersons than men.WomenWomen buy [almost] everything—commercial as well as consumer goods.

So what exactly is the point of So what exactly is the point of menmen??

9494%% of loans to of loans to ……

womenwomen****MMicrolending; “Banker to the poor”; Grameen Bank; icrolending; “Banker to the poor”; Grameen Bank;

Muhammad Yunus; 2006 Nobel Peace Prize winnerMuhammad Yunus; 2006 Nobel Peace Prize winner

““CEMEXCEMEX realized that realized that women are the kewomen are the keyy drivers of drivers of savinsavinggs ins in [Mexican][Mexican] familiesfamilies.. … …

They are entrepreneurial in nature, and they actively They are entrepreneurial in nature, and they actively participate in the tanda system participate in the tanda system [neighborhood groups [neighborhood groups

who pool money and save any that’s left over].who pool money and save any that’s left over]. Regardless of Regardless of whether they are homemakers or outside-the-home whether they are homemakers or outside-the-home workers, they are responsible for any savings in the workers, they are responsible for any savings in the family. Patrimonio Hoy family. Patrimonio Hoy [Private Property Today, a CEMEX [Private Property Today, a CEMEX program to aid the poor in building homes]program to aid the poor in building homes] discovered that discovered that

70% of the women who saved were saving money in 70% of the women who saved were saving money in the tanda system to construct homes for their the tanda system to construct homes for their

families. The men in the society consider their job families. The men in the society consider their job done if they bring in their paycheck at the end of the done if they bring in their paycheck at the end of the

day.”day.” —C.K. Prahalad, from —C.K. Prahalad, from The Fortune at the Bottom of The Fortune at the Bottom of the Pyramidthe Pyramid, on Lorenzo Zambrano and CEMEX, the Mexican , on Lorenzo Zambrano and CEMEX, the Mexican

company that’s the world’s #3 cement makercompany that’s the world’s #3 cement maker

10.610.6

““One thing is certain: Women’s rise to power, which is One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no in all domains and at all levels of society. Women are no

longer content to provide efficient labor or to be longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to consumers with rising budgets and more autonomy to spend. … This is just the beginning. The phenomenon spend. … This is just the beginning. The phenomenon

will only grow as girls prove to be more successful than will only grow as girls prove to be more successful than

boys in the school system.boys in the school system. For a number For a number of observers, we have of observers, we have

already entered the age of already entered the age of ‘womenomics,’ the economy ‘womenomics,’ the economy

as thought out and as thought out and practiced by a womanpracticed by a woman.”.” —Aude

Zieseniss de Thuin, Financial Times, 10.03.2006

#30#30

Where the Where the Money is …Money is …

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““People turning 50 People turning 50 today have today have more more

thanthan halfhalf of of their adult life their adult life

ahead of them.”ahead of them.” —Bill Novelli, 50+: Igniting a Revolution to Reinvent America

7/17/133

We are the We are the Aussies & Kiwis &Aussies & Kiwis & Americans & CanadiansAmericans & Canadians. . We are the We are the Western EuropeansWestern Europeans & & JapaneseJapanese. We are . We are

the the fastest growingfastest growing, the , the biggestbiggest, the , the wealthiestwealthiest, the , the boldestboldest, the most (yes) , the most (yes) ambitiouambitious, the most s, the most

experimental & exploratoryexperimental & exploratory, the most , the most differentdifferent, the , the most most indulgentindulgent, the most , the most difficult &difficult & demandingdemanding, the , the

most most service & experience obsessedservice & experience obsessed, the most , the most vigorousvigorous, (the , (the leastleast vigorous,) the most vigorous,) the most health health

consciousconscious, the most , the most femalefemale, the most profoundly , the most profoundly important commercial market in the history of the important commercial market in the history of the

world—andworld—and we will be the we will be the Center of Center of yyour universe our universe for the next twentfor the next twentyy-five -five

yyearsears.. We have arrived! We have arrived!

#31#31

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

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

#32#32

Tea Tea PowerPower

GiveGive good good tea! tea!

““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 ofof friendshifriendshippss.”.”

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

*“Perhaps his most outstanding ability [at West Point]*“Perhaps his most outstanding ability [at West Point] was the ease with which he was the ease with which he made friends and earned the made friends and earned the

trusttrust of fellow cadets who came from widely varied of fellow cadets who came from widely varied backgrounds; it was a quality that would pay greatbackgrounds; it was a quality that would pay great

dividends during his future coalition commanddividends during his future coalition command

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

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

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

RReturn eturn OOn n IInvestment In nvestment In RRelationshipselationships

#33#33

#1 Trait …#1 Trait …

““I am a I am a dispenser of dispenser of

enthusiasm.”enthusiasm.” —Ben Zander

““Nothing is so Nothing is so contagious as contagious as enthusiasm.”enthusiasm.”

—Samuel Taylor Coleridge

#1A …#1A …

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

Mike Bloomberg:Mike Bloomberg:

““Curiosity.”Curiosity.”

#34#34

““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

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

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

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

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

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. THE PROBLEM. THE RESPONSE TO THE RESPONSE TO THE

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

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

#35#35

#1 Truthteller …#1 Truthteller …

You = Your You = Your calendarcalendar**

*Calendars *Calendars nevernever lielie

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

ThreeThree..

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

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

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

‘To-don’t ‘To-don’t ’’ List !” List !”

““The The oneone thinthing you need g you need to know about sustained to know about sustained

individual success: individual success: Discover what you don’t Discover what you don’t

likelike

doing and doing and stopstop

doing it.”doing it.” —Marcus Buckingham, The One Thing You Need to Know

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

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

Gandhi

Walls of Walls of YYesterdaesterday vs y vs

Walls of Walls of TomorrowTomorrow

#36#36

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

—Marshall Goldsmith—Marshall Goldsmith

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

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

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

#45)#45)

#37#37

Skip the mapSkip the map

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

or …or …

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

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

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. 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.)

#38#38

““Do one Do one thing every thing every

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

—Eleanor Roosevelt

Kevin Roberts’ CredoKevin Roberts’ Credo

11. Ready. Fire! Aim.. Ready. Fire! Aim.2. If it ain’t broke ... Break it!2. If it ain’t broke ... Break it!3. Hire crazies.3. Hire crazies.4. Ask dumb questions.4. Ask dumb questions.5. Pursue failure.5. Pursue failure.6. Lead, follow ... or get out of the way!6. Lead, follow ... or get out of the way!7. Spread confusion.7. Spread confusion.8. Ditch your office.8. Ditch your office.9. Read odd stuff.9. Read odd stuff.

10. Avoid moderationAvoid moderation!!

#39#39

dubaidubai

Single Single greatest act greatest act

of pure of pure imaginationimagination

Does Does youryour project portfolioproject portfolio

“ “havehave a dubai”?a dubai”?

““Insanely Insanely Great”Great”

““Radically Radically thrilling”thrilling”

BMW

#40#40

1/401/40

Dick ’n Dick ’n dandan

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

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

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

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

““We have a We have a ‘strategic plan.’ ‘strategic plan.’ It’s called It’s called doing doing thingsthings.”.” — Herb Kelleher

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

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

versionversion ##55.. By the time our rivals areBy the time our rivals are ready with wires and screws, we are on versionready with wires and screws, we are on version

##1010.. It gets back to It gets back to planning versus actingplanning versus acting: : We act We act from day onefrom day one; ; others plan how others plan how toto planplan——for monthsfor months.”.” —Bloomberg by —Bloomberg by

BloombergBloomberg

““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 . Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

““RewardReward excellent failures.

PunishPunish mediocre

successes.”Phil Daniels, Sydney exec

““You miss You miss

100%100% of the shots you of the shots you

never take.”never 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”

#41#41

““It is It is notnot the the strongest of the strongest of the

species that survives, species that survives, nornor the most the most

intelligent, but intelligent, but the the one most one most responsive responsive

to changeto change.”.” —Charles Darwin

#42#42

4/404/40

DECENTRALIZATIONDECENTRALIZATION..

EXECUTION.EXECUTION.ACCOUTABILITY.ACCOUTABILITY.

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

#43#43

Socks = Socks = 10K10K

““Paint it Paint it white!”white!”

— — On Hashem Akbari’s [Lawrence Livermore labs] powerful programOn Hashem Akbari’s [Lawrence Livermore labs] powerful program to significantly reduce greenhouse gas emissions; using conservativeto significantly reduce greenhouse gas emissions; using conservative

assumptions, it could assumptions, it could reduce 44 billion tons of CO2reduce 44 billion tons of CO2 emissions by cooling buildings, roads, entire cities (emissions by cooling buildings, roads, entire cities (The GuardianThe Guardian, 0116.09), 0116.09)

Behavioral Primacy!E.g.: plate size; E.g.: plate size;

location of platters, location of platters,

6.56.5 feet Away = feet Away =

--6363% % “Seconds” “Seconds” Source: Brian Wansink, Source: Brian Wansink, Mindless EatingMindless Eating (20 lbs per year; 200 decisions per day) (20 lbs per year; 200 decisions per day)

401(k) active opt-in:401(k) active opt-in: 45%45%401(k) as default:401(k) as default: 86%86%Source: Source: New York TimesNew York Times, 1202.08 (research by Richard, 1202.08 (research by Richard Thaler, co-author Thaler, co-author NudgeNudge))

““Design is Design is evereveryythinthing. g. Everything is Everything is desidesiggnn.”.”““We are We are allall designers.” designers.”

Inspiration:Inspiration: The Power of Design: A Force for The Power of Design: A Force for Transforming Everything, Transforming Everything, Richard Farson.Richard Farson.

(And Judgment Under Uncertainty: Heuristics and Biases, Daniel Kahneman & Amos Tversky; Why We Buy, Paco Underhill. Also Sway-Nudge-Multipliers-Mundane Tools-etc.)

No waste baskets/paper recyclingNo waste baskets/paper recyclingCases vs chartsCases vs chartsDefault/401(k)/45% vs 86%Default/401(k)/45% vs 86%Designer next to the CEODesigner next to the CEOOpel plant away from factoryOpel plant away from factoryRickover’s chair/Sunlight in myRickover’s chair/Sunlight in my eyes/LBJ on the edge of the rugeyes/LBJ on the edge of the rugThank you notes/10 yearsThank you notes/10 years

Seating arrangementSeating arrangementTable shapeTable shapePhysical arrangements (distance,Physical arrangements (distance, co-location, grand or not/Apple)co-location, grand or not/Apple)Geologists/GeophysicistsGeologists/GeophysicistsXFX/Cross-functional ExcellenceXFX/Cross-functional Excellence (meetings, talks, etc)(meetings, talks, etc)““The hang out axiom” (“We areThe hang out axiom” (“We are what we eat.”)what we eat.”)See greenery, recover faster See greenery, recover faster (map,(map, smell of cookies, pianos/smell of cookies, pianos/ Planetree)Planetree)Vary road crossing times/engageVary road crossing times/engage

““Everything matters”Everything matters”

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

#44#44

TGRTGR

2-cent 2-cent candycandy

7:45AM/7:45AM/8:00AM8:00AM

6:15PM/6:00PM6:15PM/6:00PM

Commerce Bank: From “Service” to Commerce Bank: From “Service” to “Experience”“Experience”

7X. 730A-7X. 730A-800P. F12A.800P. F12A.

““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

<TG<TGWWvs.vs.

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

Hypothesis:Hypothesis: DESIGNDESIGN is is the pthe princirincippalal

differencedifference between between lovelove

and and hate!*hate!**Not “like” and “dislike”*Not “like” and “dislike”

““You You knowknow a a designdesign is is goodgood

whenwhen you you wantwant to to licklick it.” it.” —Steve Jobs—Steve Jobs

Source: Source: Design: Intelligence Made VisibleDesign: Intelligence Made Visible, Stephen Bayley & Terence Conran, Stephen Bayley & Terence Conran

#45#45

IBIBMM

““M” = M” = $0$0

IBIBMM: Global : Global Services/Services/

$60B$60B

““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)

Huge(!):Huge(!): Customer Customer SatisfactionSatisfaction versusversus

Customer Customer

SuccessSuccess

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

Customer Success/ Customer Success/ Gamechanging Gamechanging

SolutionsSolutionsServicesServicesGoodsGoods

Raw Materials Raw Materials

#46#46

The RealThe Real Deal Deal

The Heart of The Heart of Business Strategy: Business Strategy:

48 Things That 48 Things That MatterMatter

We usually think of business We usually think of business strategy as some sort of aspirational strategy as some sort of aspirational

market positioning statement. market positioning statement. Doubtless that’s part of it. But I Doubtless that’s part of it. But I

believe that the number one believe that the number one “strategic strength” is excellence in “strategic strength” is excellence in execution and systemic relationships execution and systemic relationships

(i.e., with everyone we come in (i.e., with everyone we come in contact with). Hence I offer the contact with). Hence I offer the following 48 pieces of advice in following 48 pieces of advice in

creating a winning “strategy” that is creating a winning “strategy” that is inherently sustainable.inherently sustainable.

““Thank you.” Minimum several times a day.Thank you.” Minimum several times a day. Measure it.Measure it.““Thank you” to everyone even peripherallyThank you” to everyone even peripherally involved in some activity—especially involved in some activity—especially thosethose “ “deep in the hierarchy.”deep in the hierarchy.”Smile. Work on it.Smile. Work on it.Apologize. Even if “they” are “mostly” toApologize. Even if “they” are “mostly” to blame.blame.Jump all over those who play the “blameJump all over those who play the “blame game.” game.” Hire enthusiasm.Hire enthusiasm.Low enthusiasm. No hire. Any job.Low enthusiasm. No hire. Any job.Hire optimists. Everywhere. (“Positive Hire optimists. Everywhere. (“Positive outlook on life,” not mindless optimism.)outlook on life,” not mindless optimism.)Hiring: Would you like to go to lunch withHiring: Would you like to go to lunch with him-her. 100% of jobs.him-her. 100% of jobs.

Hire for good manners.Hire for good manners.Do not reject “trouble makers”—that is thoseDo not reject “trouble makers”—that is those who are uncomfortable with the status who are uncomfortable with the status quo.quo.Expose all would-be hires to somethingExpose all would-be hires to something unexpected-weird. Observe their reaction.unexpected-weird. Observe their reaction.Overwhelm response to even the smallestOverwhelm response to even the smallest screw-ups.screw-ups.Become a student of all you will meet with. Become a student of all you will meet with. Big time.Big time.Hang out with interesting new people. Hang out with interesting new people. Measure it.Measure it.Lunch with folks in other functions. Measure Lunch with folks in other functions. Measure it.it.Listen. Hear. Become a serious studentListen. Hear. Become a serious student of listening-hearing.of listening-hearing.Work on everyone’s listening skills. Practice.Work on everyone’s listening skills. Practice.

Become a student of information extraction-Become a student of information extraction- interviewing.interviewing.Become a student of presentation giving.Become a student of presentation giving. Formal. Short and spontaneous.Formal. Short and spontaneous.Incredible care in 1st line supervisor Incredible care in 1st line supervisor selection.selection.World’s best training for 1st line supervisors.World’s best training for 1st line supervisors.Construct small leadership opportunities forConstruct small leadership opportunities for junior people within days of starting on thejunior people within days of starting on the job.job.Insane care in all promotion decisions.Insane care in all promotion decisions.Promote “people people” for all managerialPromote “people people” for all managerial jobs. Finance-logistics-R&D as much as,jobs. Finance-logistics-R&D as much as, say, sales.say, sales.Hire-promote for demonstrated curiosity. Hire-promote for demonstrated curiosity. Check their past commitment to continuousCheck their past commitment to continuous learning.learning.

Small “d” diversity. Rich mixes for any andSmall “d” diversity. Rich mixes for any and all teams. all teams. Hire women. Roughly 50% women on execHire women. Roughly 50% women on exec team.team.Exec team “looks like” customer population,Exec team “looks like” customer population, actual and desired.actual and desired.Focus on creating products for and sellingFocus on creating products for and selling to women.to women.Focus on creating products for and sellingFocus on creating products for and selling to boomers-geezers.to boomers-geezers.Work on first and last impressions.Work on first and last impressions.Walls display tomorrow’s aspirations, notWalls display tomorrow’s aspirations, not yesterday’s accomplishments.yesterday’s accomplishments.Simplify systems. Constantly.Simplify systems. Constantly.

Insist that almost all material be covered by aInsist that almost all material be covered by a 1-page summary. Absolutely no longer. 1-page summary. Absolutely no longer. Practice decency.Practice decency.Add “We are thoughtful in all we do” toAdd “We are thoughtful in all we do” to corporate values list. Number 1 force forcorporate values list. Number 1 force for customer loyalty, employee satisfaction.customer loyalty, employee satisfaction.Make some form of employee growth (for all)Make some form of employee growth (for all) a formal part of values set. Abovea formal part of values set. Above customer satisfaction. Steal from RE/MAX: customer satisfaction. Steal from RE/MAX: “We are a life success company.”“We are a life success company.”Flowers.Flowers.Celebrate “small wins.” Often. Perhaps aCelebrate “small wins.” Often. Perhaps a “ “small win of the day.”small win of the day.”

Manage your calendar religiously: Does itManage your calendar religiously: Does it accurately reflect your espoused priorities?accurately reflect your espoused priorities? Use a “calendar friend” who’s not veryUse a “calendar friend” who’s not very friendly to help you with this.friendly to help you with this.Review your calendar: Work assiduously andReview your calendar: Work assiduously and mercilessly on your “To don’ts.”—stuff mercilessly on your “To don’ts.”—stuff that distracts.that distracts.Bosses, especially near the top: FormallyBosses, especially near the top: Formally cultivate one advisor whose role is to tell cultivate one advisor whose role is to tell youyou the truth. the truth. Commit to Excellence.Commit to Excellence.Talk up Excellence. Talk up Excellence. Put “Excellence in all we do” in the values Put “Excellence in all we do” in the values set.set.Measure everyone on demonstratedMeasure everyone on demonstrated commitment to Excellence.commitment to Excellence.

#47#47

DifficultDifficult Times … Times …

*Basics.*Basics.*ROIR X10*ROIR X10*Execution X10*Execution X10*Values X10*Values X10*Quality X10*Quality X10*Empowerment (More initiative)*Empowerment (More initiative)*Transparency*Transparency*Decisiveness*Decisiveness*MBWA*MBWA*Communicate X10*Communicate X10*Keep It Simple*Keep It Simple*Decency*Decency*Truthfulness*Truthfulness

*Energy!*Energy!*On guard/Constant attitude checks *On guard/Constant attitude checks *Beware: Training. R&D. Sales. (“Across*Beware: Training. R&D. Sales. (“Across the board” = Insanity)the board” = Insanity)*“Small wins”/Positives*“Small wins”/Positives*Deep recession/The best years of our*Deep recession/The best years of our professional lifeprofessional life*Commitment to growth/All*Commitment to growth/All*Deep recession/Innovation’s finest*Deep recession/Innovation’s finest hourhour*No cut corners*No cut corners*EXCELLENCE.*EXCELLENCE.

-Costs-Costs+R&D+R&D+Sales+Sales+Marketing+Marketing+excellence+excellence

““A leader is A leader is a a dealer in dealer in hope.” hope.” —Napoleon

(+TP’s writing room pics)(+TP’s writing room pics)

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

anxious to win”anxious to win”

The greatest dangerThe greatest dangerfor most of usfor most of us

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

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

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

Michelangelo

#48#48

30 30 minutes/minutes/

-1%-1%

#49#49

The 19 Es ofThe 19 Es ofExcellenceExcellence

If Not Excellence, What?If Not Excellence, What?If Not Excellence Now, When?If Not Excellence Now, When?The “19 Es” of ExcellenceThe “19 Es” of Excellence

EnthusiasmEnthusiasm.. (Be an irresistible force of nature!) (Be an irresistible force of nature!) EnerEnergy.gy. (Be fire! Light fires!)(Be fire! Light fires!)ExuberanceExuberance.. (Vibrate—cause earthquakes!)(Vibrate—cause earthquakes!)ExecutionExecution.. (Do it! Now! Get it done! Barriers are baloney! Excuses are for wimps! Accountability is gospel! (Do it! Now! Get it done! Barriers are baloney! Excuses are for wimps! Accountability is gospel! Adhere to the Bill Parcells doctrine: “Blame nobody! Expect nothing! Do something!”)Adhere to the Bill Parcells doctrine: “Blame nobody! Expect nothing! Do something!”)EmEmppowermentowerment.. (Respect and appreciation! Always ask, “What do you think?”(Respect and appreciation! Always ask, “What do you think?” Then: Listen! Liberate! Celebrate! 100% innovators or bust!)Then: Listen! Liberate! Celebrate! 100% innovators or bust!)EdEdgginessiness.. (Perpetually dancing at the frontier, and a little or a lot beyond.)(Perpetually dancing at the frontier, and a little or a lot beyond.)EnraEnraggeded.. (Determined to challenge & change the status quo!)(Determined to challenge & change the status quo!)EnEnggaaggeded.. (Addicted to MBWA/Managing By Wandering Around. In touch. Always.) (Addicted to MBWA/Managing By Wandering Around. In touch. Always.) ElectronicElectronic.. (Partners with the world 60/60/24/7 via electronic community building(Partners with the world 60/60/24/7 via electronic community building and entanglement of every sort. Crowdsourcing/doing power!)and entanglement of every sort. Crowdsourcing/doing power!)EncomEncomppassingassing.. (Relentlessly pursue diverse opinions—the more diversity the merrier! Diversity per se “works”!)(Relentlessly pursue diverse opinions—the more diversity the merrier! Diversity per se “works”!)EmotionEmotion.. (The alpha. The omega. The essence of leadership. The essence of sales. (The alpha. The omega. The essence of leadership. The essence of sales. The essence of marketing. The essence. Period. Acknowledge it.)The essence of marketing. The essence. Period. Acknowledge it.)EmEmppathathy.y. (Connect, connect, connect with others’ reality and aspirations! “Walk(Connect, connect, connect with others’ reality and aspirations! “Walk in the other person’s shoes”—until the soles have holes!)in the other person’s shoes”—until the soles have holes!)ExExpperienceerience.. (Life is theater! Make every activity-contact memorable! Standard:(Life is theater! Make every activity-contact memorable! Standard: “ “Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.)Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.)EliminateEliminate.. (Keep it simple!)(Keep it simple!)ErrorErrorppronerone.. (Ready! Fire! Aim! Try a lot of stuff and make a lot of booboos and then try some more stuff(Ready! Fire! Aim! Try a lot of stuff and make a lot of booboos and then try some more stuff and make some more booboos—all of it at the speed of light!)and make some more booboos—all of it at the speed of light!)EvenhandedEvenhanded.. (Straight as an arrow! Fair to a fault! Honest as Abe!)(Straight as an arrow! Fair to a fault! Honest as Abe!)ExpectationsExpectations.. (Michelangelo: “The greatest danger for most of us is not that our aim is too high and we miss it, (Michelangelo: “The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.” Amen!)but that it is too low and we reach it.” Amen!)EudaimoniaEudaimonia.. (Pursue the highest of human moral purpose—the core of Aristotle’s philosophy. Be of service. (Pursue the highest of human moral purpose—the core of Aristotle’s philosophy. Be of service. Always.)Always.)ExcellenceExcellence.. (The only standard! Never an exception! Start now! No excuses! If not Excellence, what?(The only standard! Never an exception! Start now! No excuses! If not Excellence, what? If not Excellence now, when?)If not Excellence now, when?)

Excellence.Excellence.Always.Always.