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Conrad Conrad Hilton …Hilton …
Conrad Hilton, at a gala Conrad Hilton, at a gala celebrating his career,celebrating his career,
was asked, was asked, “What was the most important lesson you’ve learned in you
long and distinguished career?” His immediate His immediate
answer …answer …
““remember remember to tuck the to tuck the
shower curtain shower curtain inside the inside the bathtubbathtub””
““Execution Execution isis strategy.”strategy.”
—Fred Malek—Fred Malek
““The art of war does not The art of war does not require complicated require complicated
maneuvers; the simplest maneuvers; the simplest are the best and common are the best and common
sense is fundamental. From sense is fundamental. From which one might wonder which one might wonder how it is generals make how it is generals make
blunders; blunders; it is because theit is because theyy trtryy to be clever to be clever.”.” —Napoleon—Napoleon
LONGLONG
Tom Peters’Tom Peters’
Excellence.Excellence.Always.Always.
Towards EXCELLENCE in Public Sector PerformanceTowards EXCELLENCE in Public Sector PerformanceRiyadh/2 November 2009Riyadh/2 November 2009(Slides at tompeters.com)(Slides at tompeters.com)
NOTENOTE:: To appreciateTo appreciate this presentation this presentation [and ensure [and ensure
that it is not a that it is not a messmess],], you need you need Microsoft fonts:Microsoft fonts:
“Showcard Gothic,”“Showcard Gothic,” “Ravie,”“Ravie,” “Chiller”“Chiller”
andand “Verdana”“Verdana”
Public Sector Public Sector
*U.S. Navy #1/Combat Engineer, Vietnam,*U.S. Navy #1/Combat Engineer, Vietnam, 1966-1968.1966-1968.*U.S. Navy #2/Pentagon, Naval Construction*U.S. Navy #2/Pentagon, Naval Construction Forces policy co-ordination, 1968-1970.Forces policy co-ordination, 1968-1970.*Co-founder, Stanford Graduate School of*Co-founder, Stanford Graduate School of Business “UMP”/“PMP” (Urban Business “UMP”/“PMP” (Urban ManagementManagement Program, Public Management Program),Program, Public Management Program), 1972-1977 1972-1977 *White House, 1973-1974 (Executive *White House, 1973-1974 (Executive Director,Director, Cabinet Committee on InternationalCabinet Committee on International Narcotics Control; Assistant to Director,Narcotics Control; Assistant to Director, Office of Management and Budget, FederalOffice of Management and Budget, Federal Drug Policy) Drug Policy) *Consultant-Advisor to Bob Stone, Director,*Consultant-Advisor to Bob Stone, Director, National Performance Review (“Re-National Performance Review (“Re-inventinginventing Government,” Al Gore initiative), 1992-Government,” Al Gore initiative), 1992-1996. 1996.
Lesson #1:Lesson #1: Captain “Day” vs. vs. Captain “Night”
#1#1
The greatest dangerThe greatest dangerfor most of usfor most of us
is not that our aim isis not that our aim istoo hightoo high
and we miss it,and we miss it,but that it isbut that it is
too lowtoo lowand we reach it.and we reach it.
MichelangeloMichelangelo
The failure to The failure to pursue pursue
EXCELLENCEEXCELLENCE is is incomprehensible incomprehensible
to me.to me.
Excellence. Always.Excellence. Always.If not Excellence, If not Excellence, what?what?If not Excellence If not Excellence now, when?now, when?
““Strive for Strive for Excellence. Excellence.
Ignore Ignore success.”success.” —Bill Young, race
car driver (courtesy Andrew Sullivan)
““Excellence can be obtained if you:Excellence can be obtained if you:
... care more than others think... care more than others think is wise;is wise; ... risk more than others think ... risk more than others think is safe;is safe; ... dream more than others think ... dream more than others think is practical;is practical; ... expect more than others think ... expect more than others think is possible.”is possible.”
Source: Anon.Source: Anon. (Posted @ tompeters.com by (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)K.Sriram, November 27, 2006 1:17 AM)
““If a man is called to be a street If a man is called to be a street sweeper, he should sweep streets sweeper, he should sweep streets even as Michelangelo painted, or even as Michelangelo painted, or Beethoven composed music, or Beethoven composed music, or Shakespeare wrote poetry. He Shakespeare wrote poetry. He should sweep streets so well should sweep streets so well
that all the hosts of heaven and that all the hosts of heaven and earth will pause to say, here livedearth will pause to say, here lived
a great street sweeper who did his a great street sweeper who did his job well.” job well.” —Martin Luther King Jr.—Martin Luther King Jr.
#2#2
14,00014,00020,00020,000
14,00014,00020,00020,000
3030
14,000/14,000/eeBayBay20,000/Amazon20,000/Amazon
3030/Craigslist/Craigslist
#3#3
19771977
MBWMBWAA
19821982
Excellence1982: The Bedrock “Eight Basics”Excellence1982: The Bedrock “Eight Basics”
1. A Bias for 1. A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. 3. AutonomAutonomyy and and EntreEntreppreneurshireneurshipp4. Productivity Through 4. Productivity Through PeoPeopplele5. 5. Hands OnHands On, , Value-DrivenValue-Driven6. 6. Stick toStick to the Knitting the Knitting7. 7. SimSimpplele Form, Form, LeanLean Staff Staff8. Simultaneous 8. Simultaneous Loose-TightLoose-Tight Properties” Properties”
““Breakthrough” 82*Breakthrough” 82*
People! People! CustomersCustomers
! ! Action! Action! Values! Values!
**In Search of ExcellenceIn Search of Excellence
Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard
Hard Is Hard Is SoftSoft (Plans, (Plans, ##ss))
Soft Is Soft Is HardHard (people, (people, customers, values, customers, values,
relationships)relationships)
““If I could have chosen not to tackle the IBM culture If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of comparison, changing the attitude and behaviors of
hundreds of thousands of people is very, very hard.hundreds of thousands of people is very, very hard.
[Yet] I came to see in my [Yet] I came to see in my time at IBM that culture time at IBM that culture
isn’t just one aspect of the isn’t just one aspect of the
game game ——it is the it is the gamegame.”.” —Lou Gerstner,—Lou Gerstner,
Who Says Elephants Can’t DanceWho Says Elephants Can’t Dance
20072007SiberiaSiberia
Why in Why in the the World did World did youyou go to go to SiberiaSiberia??
EnterpriseEnterprise* ** (*at its best):* ** (*at its best): An An emotionalemotional, , vitalvital, , innovativeinnovative, , joyfuljoyful, , creativecreative, , entrepreneurialentrepreneurial endeavor that endeavor that elicits maximum elicits maximum
concerted human concerted human potential potential in the in the wholeheartedwholehearted serviceservice of othersof others.****Employees, Customers, Suppliers, Communities, Owners, Temporary **Employees, Customers, Suppliers, Communities, Owners, Temporary partnerspartners
20072007SydneSydne
yy
Organizations Organizations existexist to to serveserve. Period.. Period.
Leaders Leaders live live toto serveserve. Period.. Period.
… … no less than no less than CathedralsCathedrals
in which the full and in which the full and awesome power of the awesome power of the
Imagination and Spirit and Imagination and Spirit and native Entrepreneurial flairnative Entrepreneurial flair
of diverse individualsof diverse individuals is is unleashed in passionate unleashed in passionate pursuit of … pursuit of … ExcellenceExcellence..
““The role of the Director is to The role of the Director is to create a space where the create a space where the
actors and actresses canactors and actresses can become more than become more than they’ve ever been they’ve ever been before, more than before, more than
they’ve dreamed of they’ve dreamed of beingbeing.”.” —Robert Altman, Oscar acceptance —Robert Altman, Oscar acceptance
speechspeech
““No matter what the No matter what the situation, situation, [the great manager’s][the great manager’s] first first
resrespponse is alwaonse is alwayys to think s to think about the individual about the individual
concerned and how thinconcerned and how thinggs s can be arrancan be arrangged to ed to helhelpp that that
individual exindividual expperience erience successsuccess.”.” —Marcus Buckingham, —Marcus Buckingham,
The One Thing You Need to KnowThe One Thing You Need to Know
““You have to You have to treat your treat your
employees like employees like customers.”customers.” —Herb Kelleher, —Herb Kelleher,
complete answer, upon being asked his “secrets to success”complete answer, upon being asked his “secrets to success”
Source: Joe Nocera, Source: Joe Nocera, NYTNYT, “Parting Words of an Airline Pioneer,” on the occasion , “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots
union took out a full-page ad in USA Today thanking HK for all he had done; union took out a full-page ad in USA Today thanking HK for all he had done; across theacross the
way in Dallas American Airlines’ pilots were picketing the Annual Meeting)way in Dallas American Airlines’ pilots were picketing the Annual Meeting)
Thank you Peter Drucker/AIMThank you Peter Drucker/AIM
Our goal is to serve our customers brilliantly Our goal is to serve our customers brilliantly and profitably over the long haul.and profitably over the long haul.
Serving our customers brilliantly and profitably Serving our customers brilliantly and profitably over the long haul is a product of brilliantly over the long haul is a product of brilliantly serving, over the long haul, the people who serving, over the long haul, the people who
serve the customer.serve the customer.Hence, our job as leaders—the alpha and the Hence, our job as leaders—the alpha and the
omega and everything in between—is abetting omega and everything in between—is abetting the sustained growth and success and the sustained growth and success and
engagement and enthusiasm and commitment engagement and enthusiasm and commitment to Excellence of those, one at a time, who to Excellence of those, one at a time, who
directly or indirectly serve the ultimate directly or indirectly serve the ultimate customer.customer.
Source:Source: The Little BIG Things: 163 Ways to Pursue EXCELLENCE The Little BIG Things: 163 Ways to Pursue EXCELLENCE
We—leaders of every stripe—are in the “Human We—leaders of every stripe—are in the “Human Growth and Development and Success and Growth and Development and Success and
Aspiration to Excellence business.”Aspiration to Excellence business.”““We” [leaders] only grow when “they” [each and We” [leaders] only grow when “they” [each and
every one of our colleagues] are growing.every one of our colleagues] are growing.““We” [leaders] only succeed when “they” [each We” [leaders] only succeed when “they” [each and every one of our colleagues] are succeeding.and every one of our colleagues] are succeeding.
““We” [leaders] only energeticallyWe” [leaders] only energetically march toward Excellence when “they” [each and march toward Excellence when “they” [each and
every one of our colleagues] are energetically every one of our colleagues] are energetically marching toward Excellence.marching toward Excellence.
Period.Period.
Source:Source: The Little BIG Things: 163 Ways to Pursue EXCELLENCE The Little BIG Things: 163 Ways to Pursue EXCELLENCE
#4#4
““The ONE Question”:The ONE Question”: “In the last year [3 years, current job], name “In the last year [3 years, current job], name
the … the … three three peoplepeople … whose growth you’ve … whose growth you’ve
most contributed to. Please explain where they were at the most contributed to. Please explain where they were at the beginning of the year, where they are today, and where they are beginning of the year, where they are today, and where they are heading in the next 12 months. Please explain your development heading in the next 12 months. Please explain your development strategy in each case. Please tell me your biggest development strategy in each case. Please tell me your biggest development disappointment—looking back, could you or would you have done disappointment—looking back, could you or would you have done
anything differently? Please tell me about your greatest anything differently? Please tell me about your greatest development triumph—and disaster—in the last ten years. Whatdevelopment triumph—and disaster—in the last ten years. What are the ‘three big things’ you’ve learned about helping people are the ‘three big things’ you’ve learned about helping people
grow along the way.”grow along the way.”
#5#5
#1#1 cause of cause ofDis-satisfaction?Dis-satisfaction?
Employee retention & satisfaction:Employee retention & satisfaction:
OverwhelminOverwhelminggllyy, based on the , based on the
first-line first-line manamanagger!er!
Source: Marcus Buckingham & Curt Coffman, Source: Marcus Buckingham & Curt Coffman, First, Break All First, Break All the Rules: What the World’s Greatest Managers Do Differentlythe Rules: What the World’s Greatest Managers Do Differently
#6#6
““The doctor The doctor interruptsinterrupts after …*after …*
*Source: Jerome Groopman, *Source: Jerome Groopman, How Doctors ThinkHow Doctors Think
18”18”
[An obsession with] Listening is ... the ultimate mark[An obsession with] Listening is ... the ultimate mark of of RespectRespect..Listening is ... the heart and soul of Listening is ... the heart and soul of EngagementEngagement..Listening is ... the heart and soul of Listening is ... the heart and soul of KindnessKindness..Listening is ... the heart and soul of Listening is ... the heart and soul of ThoughtfulnessThoughtfulness..Listening is ... the basis for true Listening is ... the basis for true Collaboration.Collaboration.Listening is ... the basis for true Listening is ... the basis for true PartnershipPartnership..Listening is ... a Listening is ... a Team SportTeam Sport..Listening is ... a Listening is ... a Developable Individual SkillDevelopable Individual Skill.* .* (*Though women (*Though women are are farfar better at it than men.) better at it than men.)
Listening is ... the basis for Listening is ... the basis for CommunityCommunity..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures that workJoint Ventures that work..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures thatJoint Ventures that lastlast..Listening is ... the core of Listening is ... the core of effective Cross-functional effective Cross-functional Communication* Communication* (*Which is in turn Attribute #1 of (*Which is in turn Attribute #1 of organizational effectiveness.)organizational effectiveness.)
[cont.][cont.]
Listening is ... the engine of Listening is ... the engine of superior EXECUTION.superior EXECUTION.Listening is ... the key to Listening is ... the key to making the Sale.making the Sale.Listening is ... the key to Listening is ... the key to Keeping the Customer’s BusinessKeeping the Customer’s Business..Listening is ... the engine of Listening is ... the engine of Network development.Network development.Listening is ... the engine of Listening is ... the engine of Network maintenanceNetwork maintenance..Listening is ... the engine of Listening is ... the engine of Network expansionNetwork expansion..Listening is ... Social Networking’s Listening is ... Social Networking’s “secret weapon.”“secret weapon.”Listening is ... Listening is ... Learning.Learning.Listening is ... the Listening is ... the sine qua non of Renewalsine qua non of Renewal..Listening is ... the Listening is ... the sine qua non of Creativitysine qua non of Creativity..Listening is ... the Listening is ... the sine qua non of Innovationsine qua non of Innovation..Listening is ... the core of Listening is ... the core of taking Diverse opinions aboardtaking Diverse opinions aboard..Listening is ... Listening is ... StrategyStrategy..Listening is ... Listening is ... Source #1 of “Value-added.”Source #1 of “Value-added.”Listening is ... Listening is ... Differentiator #1.Differentiator #1.Listening is ... Listening is ... Profitable.*Profitable.* (*The “R.O.I.” from listening is higher than(*The “R.O.I.” from listening is higher than from any other single activity.)from any other single activity.)
Listening is … the bedrock which underpins a Listening is … the bedrock which underpins a Commitment toCommitment to EXCELLENCEEXCELLENCE
*Listening is of the*Listening is of the
utmost … utmost … strategicstrategic importance! importance!
*Listening is a proper … *Listening is a proper …
core core valuevalue ! !
*Listening is … *Listening is … trainabletrainable !!
*Listening is a … *Listening is a … professionprofession ! !
#7#7
““The The fourfour most most importantimportant wordswords in in any organization any organization
are …are …
The four most important words in any organizationThe four most important words in any organization
are …are … “What do “What do youyou
think?”think?”
Source: courtesy Dave Wheeler, posted at tompeters.comSource: courtesy Dave Wheeler, posted at tompeters.com
““The deepest human The deepest human
need is the …need is the … need to be need to be
appreciated.”appreciated.”—William James—William James
*appreciation is of the*appreciation is of the
utmost … utmost … strategicstrategic importance! importance!
*appreciation is a proper … *appreciation is a proper …
core core valuevalue ! !
*appreciation is … *appreciation is … trainabletrainable !!
*appreciation is a … *appreciation is a … professionprofession ! !
Tomorrow: How Tomorrow: How many times will many times will
you “ask the you “ask the question”?question”? [Count] [Count]
[Practice makes better] [Practice makes better]
[This is a [This is a STRATEGICSTRATEGIC skill.] skill.]
And the answer is ….And the answer is ….
otisotis
#8#8
Little =Little =
BIBIGG
Big carts =Big carts =
1.5X1.5XSource: Wal*MartSource: Wal*Mart
Socks = Socks = 10,00010,000
#9#9
<TG<TGWWand …and …
>TG>TGRR[Things Gone [Things Gone WRONGWRONG-Things Gone -Things Gone RIGHTRIGHT]]
““May I clean May I clean your your
glasses, glasses, sir?”sir?”
2-cent 2-cent candycandy
7X.7X. 7:30A-8:00P. 7:30A-8:00P.
F12A.F12A.7:30AM = 7:30AM = 7:15AM.7:15AM.
8:00PM = 8:00PM = 8:15PM.8:15PM.
It It BEGINSBEGINS (and (and ENDSENDS) )
in the …in the …
parkingparking lotlot**
*Disney*Disney
(1)(1) Amenable to rapid Amenable to rapid experimentation/experimentation/ failure “free” (PR, $$)failure “free” (PR, $$)(2)(2) Quick to implement/ Quick to implement/ Quick to Roll outQuick to Roll out(3)(3) Inexpensive to Inexpensive to implement/Roll outimplement/Roll out(4)(4) Huge multiplier Huge multiplier(5)(5) An “Attitude” An “Attitude”
““Experiences Experiences are as distinct are as distinct
from services as from services as services are from services are from goods.”goods.” —Joe Pine & Jim Gilmore, The
Experience Economy: Work Is Theatre & Every Business a Stage
#10#10
nonenone!!
Press Ganey AssocPress Ganey Assoc:: 139,380139,380 former former patients from patients from 225225 hospitals: hospitals:
nonenone of THE top 15 of THE top 15
factors determining factors determining PPatient atient
SSatisfaction referred to patient’s atisfaction referred to patient’s health health outcomeoutcome
P.S.P.S. directldirectly related to y related to StaffStaff InteractionInteraction
P.P.S.P.P.S. directldirectly correlated with y correlated with EmploEmployyee ee SatisfactionSatisfaction
Source: Source: Putting Patients FirstPutting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel, Susan Frampton, Laura Gilpin, Patrick Charmel
““There is a misconception that supportive interactions require There is a misconception that supportive interactions require more staff or more time and are therefore more costly. Although more staff or more time and are therefore more costly. Although
labor costs are a substantial part of any hospital budget, the labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget. interactions themselves add nothing to the budget.
Kindness is Kindness is freefree.. Listening to patients or answering their Listening to patients or answering their
questions costs nothing. It can be argued that negative questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive to their interactions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very costly. … needs or limiting their sense of control—can be very costly. …
Angry, frustrated or frightened patients may be combative, Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring far more time withdrawn and less cooperative—requiring far more time than it would have taken to interact with them initially in a than it would have taken to interact with them initially in a
positive way.”positive way.” ——Putting Patients FirstPutting Patients First, Susan Frampton, , Susan Frampton, Laura Gilpin, Patrick CharmelLaura Gilpin, Patrick Charmel
““KindnesKindness is s is
free.”free.”
““We are We are thoughtful in thoughtful in all we do.”all we do.”
ThoughtfulnessThoughtfulness is key to is key to customer retentioncustomer retention..ThoughtfulnessThoughtfulness is key to is key to emempploloyyee recruitmentee recruitment and satisfactionand satisfaction..Thoughtfulness Thoughtfulness is key to is key to brand perceptionbrand perception..ThoughtfulnessThoughtfulness is key to your ability to is key to your ability to look in look in the mirrorthe mirror —and tell your kids about your job. —and tell your kids about your job.
““ThoughtfulnessThoughtfulness is is freefree.”.”ThoughtfulnessThoughtfulness is key to is key to ssppeedineedingg thin thinggs us up—p— it it reduces frictionreduces friction..ThoughtfulnessThoughtfulness is key to is key to transtranspparencarency and y and eveneven cost containmentcost containment—it abets rather than stifles—it abets rather than stifles truth-telling.truth-telling.
*Thoughtfulness is of the*Thoughtfulness is of the
utmost … utmost … strategicstrategic importance! importance!
*thoughtfulness is a proper … *thoughtfulness is a proper …
core core valuevalue ! !
*Thoughtfulness is … *Thoughtfulness is … trainabletrainable !!
*Thoughtfulness is a … *Thoughtfulness is a …
professionprofession !!
““Courtesies of a small Courtesies of a small and trivial character are and trivial character are
the ones which strike the ones which strike deepest in the grateful deepest in the grateful
and appreciating heart.”and appreciating heart.”
—Henry Clay
#11#11
1/401/40
try it. Try it. Try it. try it. Try it. Try it. Try it. Try it. Try it.Try it. Try it. Try it.
Try it. Try it. Try it. Try it. Screw it Screw it up.up. Try it. Try it. Try Try it. Try it. Try
it. Try it. Try it. Try it. it. Try it. Try it. Try it. Try it. Try it. Screw it up.Screw it up. it. it. Try it. Try it. try it. Try it. Try it. try it. Try it.Try it. Screw it up.Screw it up.
Try it. Try it. Try it. Try it. Try it. Try it.
““We made mistakes, of course. Most of them were We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the omissions we didn’t think of when we initially wrote the
software. software. We fixed them by doing it over and over, We fixed them by doing it over and over, again and again.again and again. We do the same today. While our We do the same today. While our competitors are still sucking their thumbs trying to competitors are still sucking their thumbs trying to
make the design perfect, we’re already on prototype make the design perfect, we’re already on prototype
versionversion ##55.. By the time our rivals areBy the time our rivals are
ready with wires and screws, we are on versionready with wires and screws, we are on version
##1010.. It gets back to It gets back to
planning versus actingplanning versus acting: : We act We act from day onefrom day one; ; others plan how others plan how toto planplan——for monthsfor months.”.” —Bloomberg by —Bloomberg by
BloombergBloomberg
Culture of PrototypingCulture of Prototyping
“Effective prototyping may “Effective prototyping may
be be thethe most most valuablevaluable core core competencecompetence an an
innovative organization can innovative organization can hope to have.”hope to have.” —Michael Schrage—Michael Schrage
Think about It!?Think about It!?
Innovation Innovation = = Reaction to the Reaction to the
PrototypePrototype
Source: Michael SchrageSource: Michael Schrage
“SkunkWorks”/ “ParallelUniverse”
“the 1%1%
solution”Source: Scott Bedbury (Others: 3M, Google, Shell, NAVFAC)
Build a “School on top of a school”/Continuing-Exec
Ed (The Parallel (The Parallel Universe Strategy)Universe Strategy)
““Fail .Fail . Forward. Forward.
Fast.”Fast.”High Tech CEO, Pennsylvania
Read This!Read This!
Richard Farson & Ralph Keyes:Richard Farson & Ralph Keyes:
Whoever Makes Whoever Makes the Most Mistakes the Most Mistakes Wins: The Paradox Wins: The Paradox
of Innovationof Innovation
““It is not enough to It is not enough to ‘tolerate’ failure—‘tolerate’ failure—
you must you must
‘celebrate’‘celebrate’ failure.”failure.” —Richard Farson (—Richard Farson (Whoever Makes the Whoever Makes the
Most Mistakes WinsMost Mistakes Wins))
““RewardReward excellent failures.
PunishPunish mediocre successes.”
Phil Daniels, Sydney exec
#11A#11A
““Some people look for Some people look for things that went wrong things that went wrong
and try to fix them. I and try to fix them. I look for look for things that things that
went rightwent right,, and try to and try to build off them.”build off them.” —Bob Stone (Mr
ReGo)
““Somewhere in your Somewhere in your organization, groups of organization, groups of
people are people are alreadalreadyy doin doingg thinthinggs differentls differentlyy and and
better. To create lasting better. To create lasting change, find these areas change, find these areas of positive deviance and of positive deviance and
fan the flamesfan the flames.”.”
—Richard Pascale & Jerry Sternin, “Your Company’s Secret Change Agents,” HBR
““Where Where pplannerslanners ** raise high expectations raise high expectations but take no responsibility for meeting them, but take no responsibility for meeting them,
searcherssearchers prefer to work case-by-case, prefer to work case-by-case, using trial and error to tailor solutions to using trial and error to tailor solutions to
individual problems, fully aware that most individual problems, fully aware that most remedies must be homegrown.” remedies must be homegrown.” ——WSJWSJ, 0822.06 (on malaria , 0822.06 (on malaria
eradication, eradication, and hedge fund manager Lance Laifer)and hedge fund manager Lance Laifer)
[*“Planners [*“Planners [WHO, World Bank, etc][WHO, World Bank, etc] see poverty as a see poverty as a technical engineering problem that their technical engineering problem that their
answers will solve.” answers will solve.” —William Easterly—William Easterly]]
“All sorts of approaches need to be “All sorts of approaches need to be tried and we need feedback.” tried and we need feedback.” —Roger Bate—Roger Bate
Demos!Demos! Heroes! Heroes! Stories!Stories!
Best Best story story wins!wins!
Demo = Story“A key – perhaps the key –
to leadership is thethe effective communication effective communication
of a storof a story.”y.”—Howard Gardner, Leading Minds:
An Anatomy of Leadership
““StorytellinStorytelling g
is the core is the core of culture.”of culture.”
—Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell
#12#12
We We areare the the companycompany we keepwe keep
Measure “Strangeness”/Portfolio QualityMeasure “Strangeness”/Portfolio Quality
StaffStaffConsultantsConsultants
VendorsVendorsOut-sourcing Partners Out-sourcing Partners (#, Quality)(#, Quality)
Innovation Alliance PartnersInnovation Alliance PartnersCustomersCustomers
Competitors Competitors (who we “benchmark” against)(who we “benchmark” against)
Strategic Initiatives Strategic Initiatives Product Portfolio Product Portfolio (LineEx v. Leap)(LineEx v. Leap)
IS/IT ProjectsIS/IT ProjectsHQ LocationHQ LocationLunch MatesLunch Mates
LanguageLanguageBoardBoard
The “We are what we eat”The “We are what we eat”
axiom: axiom: At its core, At its core, evereveryy (!!!) (!!!) relationship-partnership decision relationship-partnership decision
(employee, vendor, customer, etc) is (employee, vendor, customer, etc) is a a stratestrateggicic decision about: decision about:
“Innovate,“Innovate, ‘Yes’ or ‘Yes’ or ‘No’ ” ”
““Who’s the most Who’s the most interesting person interesting person you’ve met in the you’ve met in the last 90 days? How last 90 days? How do I get in touch do I get in touch
with them?”with them?” —Fred Smith—Fred Smith
Vanity Fair:Vanity Fair: “What is your most “What is your most marked characteristic?”marked characteristic?”
Mike Bloomberg:Mike Bloomberg:
““Curiosity.”Curiosity.”
#13#13
4/404/40
De-cent-De-cent-ral-iz-ral-iz-a-tion!a-tion!
“‘Decentralization’ is not a piece of paper. It’s not me. It’s either in
your heart, or not.”
—Brian Joffe/BIDvest
“Best practice” = Best practice” =
ZEROZERO Standard Standard DeviationDeviation
volcanic volcanic struggle!struggle!
Enemy Enemy #1#1
I.C.D.I.C.D.Note 1:Note 1: Inherent/Inevitable/Inherent/Inevitable/Immutable Centralist DriftImmutable Centralist Drift
Note 2: Jim Burke’s 1-word vocabulary: “No.”Note 2: Jim Burke’s 1-word vocabulary: “No.”
Ex-e-Ex-e-cu-cu-
tion!tion!
““ExecutionExecution is is thethe jobjob of the of the
businessbusiness leaderleader.”.” —Larry Bossidy—Larry Bossidy & Ram
Charan/ Execution: The Discipline of Getting Things Done
“Execution is a
systematic systematic processprocess of rigorously
discussing hows and whats, tenaciously following through, and
ensuring accountability.” —Larry Bossidy & Ram Charan/ Execution:
The Discipline of Getting Things Done
(1)(1) sum of Projects sum of Projects == Goal (“Vision”) Goal (“Vision”)
(2)(2) sum of sum of Milestones =Milestones = project project
(3)(3) rapid Review + rapid Review + Truth-telling = Truth-telling = accountability accountability
““Costco figured out Costco figured out the the bigbig, , simplesimple things things
and and executedexecuted with with total total fanaticismfanaticism.”.”
—Charles Munger, Berkshire Hathaway
Ac-count-Ac-count-a-bil-ity!a-bil-ity!
““Mr Zetsche, Mr Zetsche, head of head of
Chrysler from Chrysler from 2000 to 2005, 2000 to 2005,
denied he denied he shouldshould
take any take any responsibility responsibility
forfor the U.S. the U.S.
carmaker’scarmaker’s troubles …” troubles …” ——Financial Financial
TimesTimes /05.29.07 /05.29.07
““GE has set a GE has set a standard of candor. standard of candor.
… There is no … There is no puffery. … puffery. … There isn’t There isn’t an ounce of denial in an ounce of denial in the placethe place.”.” —Kevin Sharer, CEO
Amgen, on the “GE mystique” (Fortune)
6:15A.M6:15A.M..
DECENTRALIZATIONDECENTRALIZATION..
EXECUTION.EXECUTION.ACCOUTABILITY.ACCOUTABILITY.
66:15A.M. :15A.M.
#14#14
“I am often asked by would-be entrepreneurs seeking
escape from life within huge corporate structures, ‘How do I build a small firm for
myself?’ The answer seems obvious …
“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How
do I build a small firm for myself?’ The answer seems
obvious: Buy a very Buy a very largelarge
one and just one and just waitwait.”.” —Paul Ormerod, Why Most Things
Fail: Evolution, Extinction and Economics
““Mr. Foster and his McKinsey colleagues Mr. Foster and his McKinsey colleagues collected detailed performance data stretching collected detailed performance data stretching
back back 4040 years for years for 1,0001,000 U.S. companies. U.S. companies.
TheTheyy found that found that nonenone ofof
the lon the longg-term survivors mana-term survivors managged to ed to outoutpperform the market. Worse, the erform the market. Worse, the lonlongger comer comppanies had been in the anies had been in the
database, the worse thedatabase, the worse theyy did did.” .” —Financial Times—Financial Times
““Data drawn from the real world Data drawn from the real world attest to a fact that is beyond attest to a fact that is beyond
our control:our control: Everything in existence tends to deteriorate.”
—Norberto Odebrecht, —Norberto Odebrecht, Education Through WorkEducation Through Work
#4 Japan#4 Japan#3 USA#3 USA
#2 China#2 China
#1 #1 GermanyGermany
Reason!!!Reason!!!
MittelstandMittelstand
Productivity Productivity (Small/All) (Small/All) >>
Productivity (Big)Productivity (Big)(USA-9%)(USA-9%)
(China.)(China.)
2626 = = 7373 – – 4747
Jim Penman/Jim Penman/Jim’s GroupJim’s Group
Jim’s Mowing CanadaJim’s Mowing CanadaJim’s Mowing UKJim’s Mowing UKJim’s AntennasJim’s Antennas
Jim’s BookkeepingJim’s BookkeepingJim’s Building MaintenanceJim’s Building Maintenance
Jim’s Carpet CleaningJim’s Carpet CleaningJim’s Car CleaningJim’s Car Cleaning
Jim’s Computer ServicesJim’s Computer Services
Jim’s Dog WashJim’s Dog WashJim’s Driving SchoolJim’s Driving School
Jim’s FencingJim’s FencingJim’s FloorsJim’s Floors
Jim’s PaintingJim’s PaintingJim’s PavingJim’s Paving
Jim’s Pergolas [gazebos]Jim’s Pergolas [gazebos]Jim’s Pool CareJim’s Pool Care
Jim’s Pressure CleaningJim’s Pressure CleaningJim’s RoofingJim’s Roofing
Jim’s Security DoorsJim’s Security DoorsJim’s TreesJim’s Trees
Jim’s Window CleaningJim’s Window CleaningJim’s WindscreensJim’s Windscreens
Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group
#15#15
problem #1.Opportunity
#1.
X X =XFX*=XFX*
**ExcellenceExcellence = Cross-functional Excellence = Cross-functional Excellence
Never Never waste a waste a lunch!lunch!
????????
% XF % XF lunches*lunches*
*Measure!*Measure!
(Way) Underutilized Lever(Way) Underutilized Lever
Space!Space!Space!Space!Space!Space!Space!Space!
Geologists + Geologists + Geophysicists + Geophysicists +
A little bit of love =A little bit of love =
OilOil
Lunch Lunch > SAP/> SAP/OracleOracle
The “XF-50”: 50 Ways to The “XF-50”: 50 Ways to Enhance Cross-Functional Enhance Cross-Functional Effectiveness and Deliver Effectiveness and Deliver
Speed, “Service Speed, “Service Excellence” and “Value-Excellence” and “Value-
added Customer added Customer ‘Solutions’”‘Solutions’”
#15#15
450/8450/8
Lisbon/New Biz:Lisbon/New Biz:
WeeksWeeks to …to …
Minutes Minutes (!!!!)(!!!!)
“One bank is currently One bank is currently claiming to … claiming to …
‘leverage its global footprint to provide effective financial solutions for its customers by providing a
gateway to diverse markets.’”
——Charles HandyCharles Handy
“I assume that it is I assume that it is just saying that it isjust saying that it is
there tothere to ‘‘helhelpp its its customers customers
wherever thewherever theyy are’are’.”.”
—Charles Handy
#16#16
#1 Truthteller …#1 Truthteller …
You = You = Your Your
calendarcalendar***Calendars *Calendars nevernever lielie
““I used to have a rule for myself that at any point in I used to have a rule for myself that at any point in time I wanted to have in mind time I wanted to have in mind — as it so happens, — as it so happens, also in writing, on a little card I carried around with also in writing, on a little card I carried around with me — the three big things I was trying to get done. me — the three big things I was trying to get done.
ThreeThree..
Not two. Not two. Not four. Not four. Not five.Not five.Not ten.Not ten.Three.”Three.”
— Richard Haass, — Richard Haass, The Power to PersuadeThe Power to Persuade
““Dennis, you need a … Dennis, you need a …
‘To-don’t ’‘To-don’t ’
List !”List !”
““You must You must bebe the change you the change you
wish to see in the wish to see in the world.”world.”
Gandhi
John Sawhill/Major StrategicJohn Sawhill/Major Strategic
Initiative: Initiative: “What areas should “What areas should the Conservancy focus on the Conservancy focus on
and more important— and more important—
what activities what activities should we stoshould we stopp
doindoing?”g?”Source: Bill Birchard, Source: Bill Birchard, Nature’s Keepers: The Remarkable Story of How The Nature Nature’s Keepers: The Remarkable Story of How The Nature
Conservancy Became the Largest Environmental Organization in the WorldConservancy Became the Largest Environmental Organization in the World
““To develop others, To develop others, start with yourself.”start with yourself.”
—Marshall Goldsmith—Marshall Goldsmith
““Being aware of Being aware of yourself and how you yourself and how you
affect everyone around affect everyone around you you is what is what
distindistingguishes a suuishes a supperior erior leaderleader.”.” —Edie Seashore (—Edie Seashore (Strategy + BusinessStrategy + Business
#45)#45)
#17#17
L(+21) = L(-L(+21) = L(-21)21)
Leadership(21A.D.) = Leadership(21A.D.) = Leadership(21B.C.)Leadership(21B.C.)
GiveGive good good tea! tea!
The Real World’s “Little” Rule BookThe Real World’s “Little” Rule Book
Ben/teaBen/teaNorm/teaNorm/tea
DDE/make friendsDDE/make friendsWFBuckley/make friends-help friendsWFBuckley/make friends-help friends
Gust/Suck downGust/Suck downCharlie/poker pal-BOFCharlie/poker pal-BOF
Eddie VII/dance-flatter-mingle-learn the languageEddie VII/dance-flatter-mingle-learn the languageVlad/birthday party of outgroup guy’s wifeVlad/birthday party of outgroup guy’s wife
CIO/finance networkCIO/finance networkERP installer/consult-“one line of code”ERP installer/consult-“one line of code”
GE Energy/make friends risk assessmentGE Energy/make friends risk assessment
GWB/check the invitation listGWB/check the invitation listGHWB/T-notesGHWB/T-notesHank/60 callsHank/60 callsMarkM/5K-5MMarkM/5K-5M
Delaware/show upDelaware/show up
Oppy/snub Lewis StraussOppy/snub Lewis StraussNM/smileNM/smile
-$4.3T/tin ear-$4.3T/tin eartp.com/Big 4-What do you think?tp.com/Big 4-What do you think?
Women/genesWomen/genesBanker/after churchBanker/after church
Total Bloody Mess/Can they pay back the loan?Total Bloody Mess/Can they pay back the loan?
THE PROBLEM IS THE PROBLEM IS RARELY/NEVER THE RARELY/NEVER THE
PROBLEM. THE PROBLEM. THE RESPONSE TO THE RESPONSE TO THE
PROBLEM INVARIABLY PROBLEM INVARIABLY ENDS UP BEING THE ENDS UP BEING THE
REAL PROBLEMREAL PROBLEM.**PERCEPTION IS ALL THERE IS!*PERCEPTION IS ALL THERE IS!
““I regard I regard aappoloologgizinizing as the g as the most magical, healing, most magical, healing,
restorative gesture human restorative gesture human beings can make. It is the beings can make. It is the
centerpiece of my work with centerpiece of my work with executives who want to get executives who want to get better.”better.” —Marshall Goldsmith—Marshall Goldsmith, What Got You , What Got You
Here Won’t Get You There: How Successful People BecomeHere Won’t Get You There: How Successful People Become Even More SuccessfulEven More Successful
#18#18
Excellence.Excellence.Always.Always.
If not Excellence, If not Excellence, what?what?If not Excellence If not Excellence now, when?now, when?
““Breakthrough” 82*Breakthrough” 82*
People! People! CustomersCustomers
! ! Action! Action! Values! Values!
**In Search of ExcellenceIn Search of Excellence
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