conrad hilton …

Conrad Hilton …Conrad Hilton …

ExcellenceExcellence

NOWNOW Tom Peters/8 November 2011Tom Peters/8 November 2011

BRG/JohannesburgBRG/Johannesburg(slides @ tompeters.com)(slides @ 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”

ConradConrad HiltonHilton, at a gala celebrating his , at a gala celebrating his career, was called to the podium and career, was called to the podium and

asked,asked, “What were the most important

lessons you learned in your long and

distinguished career?” His answer …His answer …

““remember remember to tuck the to tuck the

shower curtain shower curtain inside the inside the bathtubbathtub.”.”

You get ’em You get ’em inin the door the door with “location, location, with “location, location,

location.” location.” You keepYou keep ’em ’em comincoming g backback with the tucked in with the tucked in shower curtain.shower curtain.**

*Profit rarely comes from transaction #1; *Profit rarely comes from transaction #1; it is a byproduct of transaction it is a byproduct of transaction #2, #3, #4#2, #3, #4 … …

““Execution Execution isis strategy.”strategy.”

—Fred Malek—Fred Malek

Sports:Sports: You beat You beat yourself!yourself!

““ExecutionExecution is is thethe jobjob of the of the

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

Charan/ Execution: The Discipline of Getting Things Done

““When assessing candidates, the When assessing candidates, the first thing I looked for was energy first thing I looked for was energy

and enthusiasm for execution. and enthusiasm for execution. Does she talk about the thrill Does she talk about the thrill of of ggettinettingg thin thinggs done, the s done, the

obstacles overcome, the role obstacles overcome, the role her her ppeople eople pplayedlayed —or does she —or does she keep wandering back to strategy keep wandering back to strategy

or philosophy?”or philosophy?” —Larry Bossidy, —Larry Bossidy, ExecutionExecution

Observed closely: Observed closely:

The use of The use of “I”“I”

or or “We”“We” during during a job interview.a job interview.

Source: Leonard Berry & Kent Seltman, chapter 6, “Hiring for Values,” Source: Leonard Berry & Kent Seltman, chapter 6, “Hiring for Values,” Management Lessons From Mayo ClinicManagement Lessons From Mayo Clinic

“Execution isExecution is aa

systematic systematic processprocess of rigorously of rigorously

discussing hows and whats, discussing hows and whats, tenaciously following through, and tenaciously following through, and

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

The The DisciDiscipplineline of Getting Things Done 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

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

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

Does/will the next Does/will the next presentation you presentation you

give/review allot give/review allot moremore time to the time to the

process/details of process/details of “implementing” than to “implementing” than to

the “analysis of the “analysis of problem/opportunity”problem/opportunity”

““Costco figured out the Costco figured out the

bigbig,, simplesimple things things

and and executedexecuted with with

total total fanaticismfanaticism.”.” —Charles Munger, Berkshire Hathaway—Charles Munger, Berkshire Hathaway

People First!People First! People Second ! People Second !

People Third! People Third! People Fourth! People Fourth!

People Fifth! People Fifth! People Sixth!People Sixth!

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

rewarding lives … rewarding lives … or it's or it's simply not simply not

worth worth doingdoing.”.”

——Richard BransonRichard Branson

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

employees like employees like customers.”customers.” —Herb —Herb

Kelleher, upon being asked his “secret to success”Kelleher, upon being asked his “secret to success”

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

Southwest Airlines Southwest Airlines (SWA’s pilots union took out a full-page ad in USA (SWA’s pilots union took out a full-page ad in USA Today Today

thanking HK for all he had done) thanking HK for all he had done) ; across the way in Dallas, American ; across the way in Dallas, American Airlines’ pilots were Airlines’ pilots were picketingpicketing AA’s Annual Meeting)AA’s Annual Meeting)

"When I hire "When I hire someone, that's someone, that's when when I I ggo to o to

work for work for themthem.”.” —John DiJulius,—John DiJulius, "What's the Secret to Providing "What's the Secret to Providing

a World-class Customer Experience"a World-class Customer Experience"

Amen!Amen!

“What creates trust, “What creates trust, in the end, is the in the end, is the leader’s leader’s manifestmanifest

resresppectect for for the followers.”the followers.” — Jim O’Toole, — Jim O’Toole, Leading ChangeLeading Change

““We are ladiesWe are ladies and gentlemen and gentlemen

serving ladies and serving ladies and gentlemen.”gentlemen.”

——Horst Schulze (Ritz Carlton Credo)Horst Schulze (Ritz Carlton Credo)

““Employees who Employees who don't feel significant don't feel significant

rarely make rarely make significant significant

contributions.”contributions.” —Mark Sanborn—Mark Sanborn

"If you want staff to "If you want staff to give great service, give great service, give great service to give great service to staff."staff." —Ari Weinzweig, Zingerman's

If you want to If you want to WOW your WOW your

customers then customers then must must firstfirst WOW WOW those who WOW those who WOW the customers!the customers!

Carry it around on a Carry it around on a cardcard: : “My “My employees employees are my #1 are my #1 Customer.”Customer.”

Zabar’sZabar’s Parking Parking GarageGarage**

*Retail Superstars: Inside the 25 Best Independent Stores in America, *Retail Superstars: Inside the 25 Best Independent Stores in America, by George Whalinby George Whalin

List 5 (10?) (2?) List 5 (10?) (2?) “Zabar’s garage” “Zabar’s garage”

equivalentsequivalents in your in your

organization. …organization. …

““consideration consideration renovation”renovation”

““The path to a The path to a hostmanshihostmanshipp culture paradoxically does culture paradoxically does

not go through the guest. In fact it wouldn’t be totally wrong to say that the guest not go through the guest. In fact it wouldn’t be totally wrong to say that the guest has nothing to do with it.has nothing to do with it. True hostmanship leaders focus on their employees. True hostmanship leaders focus on their employees.

What drives exceptionalism is finding the right people and getting them to love What drives exceptionalism is finding the right people and getting them to love their work and see it as a passion. ... The guest comes into the picture only when their work and see it as a passion. ... The guest comes into the picture only when

you are ready to ask, ‘you are ready to ask, ‘Would you prefer to stay at a hotel where the staff love their Would you prefer to stay at a hotel where the staff love their work or where management has made customers its highest priority?’”work or where management has made customers its highest priority?’” ““We went We went

throuthrouggh the hotel and made ah the hotel and made a ... ... ‘‘consideration consideration renovation.renovation.’’ Instead of redoinInstead of redoingg bathrooms, dinin bathrooms, dining g

rooms, and rooms, and gguest rooms, we uest rooms, we ggave emave empploloyyees new uniforms, bouees new uniforms, bougght flowers and ht flowers and

fruit, and chanfruit, and changged colorsed colors.. Our focus was Our focus was totalltotallyy on the staff. on the staff. TheTheyy

were the ones we wanted to were the ones we wanted to make hamake happy.ppy. We wanted them to wake up everWe wanted them to wake up everyy mornin morningg

excited about aexcited about a new danew dayy at work.” at work.”

Source: Jan Gunnarsson and Olle Blohm, Source: Jan Gunnarsson and Olle Blohm, Hostmanship: The Art of Making People Feel WelcomeHostmanship: The Art of Making People Feel Welcome..

“ … “ … The guest comes into The guest comes into the picture only when you the picture only when you are ready to ask, are ready to ask, ‘‘Would Would you prefer to stay at a you prefer to stay at a

hotel where the staff love hotel where the staff love their work or where their work or where

management has made management has made customers its highest customers its highest

priority?’priority?’””

““I didn’t have a ‘mission statement’ I didn’t have a ‘mission statement’ at Burger King. I had a dream. at Burger King. I had a dream. Very simple. It was something Very simple. It was something

like, like, ‘‘BurBurgger Kiner Kingg is is 250,000 250,000 ppeoeopple, everle, everyy one of whom one of whom ggives a ives a

damndamn.’.’ Every one. Accounting. Every one. Accounting. Systems. Not just the drive through. Systems. Not just the drive through.

Everyone is ‘in the brand.’ That Everyone is ‘in the brand.’ That is what we’re talking about, is what we’re talking about,

nothing less.”nothing less.”—— Barry Gibbons Barry Gibbons

““We are a We are a ‘‘LiLiffee

SuccessSuccess’ ’ Company.”Company.”

Dave Liniger, founder, RE/MAX

““The organization would The organization would ultimately win not ultimately win not

because it gave agents because it gave agents more money, more money, but but

because it because it ggave themave them a chance for better a chance for better

liveslives.”.” —Phil Harkins & Keith Hollihan, —Phil Harkins & Keith Hollihan,

Everybody Wins Everybody Wins (the story of (the story of RE/MAXRE/MAX))

BByy definition, the definition, the manamanagger cannot do all er cannot do all

the work herselfthe work herself.. Hence, effectivelHence, effectivelyy, the , the manamanagger's sole task is er's sole task is to make othersto make others——one one at a timeat a time——successfulsuccessful..

If the manager’s sole task is If the manager’s sole task is to make team members to make team members

successful— successful— then what is then what is yyourour [manager][manager] p plan to lan to

make each individual make each individual more successful within more successful within

the cominthe comingg week week??

““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,before, more than they’ve more than they’ve dreamed of beingdreamed of being.”.”

——Robert Altman, Oscar acceptance speechRobert Altman, Oscar acceptance speech

““I believe that you I believe that you can get everything can get everything

in life you want if you in life you want if you will just help enough will just help enough

other people get what other people get what

they want.”they want.” —Zig Ziglar—Zig Ziglar

““No matter what the No matter what the situation, situation, [the great manager’s][the great manager’s] first first response is always to think response is always to think

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

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

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

Brand Brand = =

Talent.Talent.

Our Mission

To 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

… … 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..

““Leaders Leaders

‘‘dodo’’ people. people.

Period.”Period.” —Anon.—Anon.

Oath of Office:Oath of Office: Managers/Servant Leaders Managers/Servant Leaders

Our goal is to serve our customers brilliantly and profitably Our goal is to serve our customers brilliantly and profitably overover the long haul.the long haul.Serving our customers brilliantly and profitably over the longServing our customers brilliantly and profitably over the long haul is a product of brilliantly serving, over the long haul, haul is a product of brilliantly serving, over the long haul, thethe people who serve the customer.people who serve the customer.

Hence, our job as leaders—the alpha and the omega andHence, our job as leaders—the alpha and the omega and everything in between—is abetting the sustained growth everything in between—is abetting the sustained growth andand success and engagement and enthusiasm and commitment success and engagement and enthusiasm and commitment toto Excellence of those, one at a time, who directly or indirectlyExcellence of those, one at a time, who directly or indirectly serve the ultimate customer.serve the ultimate customer.

We—leaders of every stripe—are in the “Human Growth andWe—leaders of every stripe—are in the “Human Growth and Development and Success and Aspiration to ExcellenceDevelopment and Success and Aspiration to Excellence business.”business.”““We” We” [leaders][leaders] only grow when “they” only grow when “they” [each and every one of our colleagues][each and every one of our colleagues] areare growing.growing.““We” We” [leaders][leaders] only succeed when “they” only succeed when “they” [each and every one of our [each and every one of our colleagues]colleagues]

are succeeding.are succeeding.““We” We” [leaders][leaders] only energetically march toward Excellence when only energetically march toward Excellence when “ “they” they” [each and every one of our colleagues][each and every one of our colleagues] are energetically marching are energetically marching toward Excellence.toward Excellence.Period.Period.

““Tom, you Tom, you left out one left out one

thing …”thing …”

““Tom, you left out one Tom, you left out one

thing …thing … Leaders Leaders enenjjooyy

leadinleading!”g!”

7 Steps to Sustaining Success7 Steps to Sustaining Success

You take care of the people. You take care of the people. The people take care of the service. The people take care of the service. The service takes care of the customer.The service takes care of the customer.The customer takes care of the profit. The customer takes care of the profit. The profit takes care of the re-investment.The profit takes care of the re-investment.The re-investment takes care of the re-invention. The re-investment takes care of the re-invention. The re-invention takes care of the future.The re-invention takes care of the future.(And at every step the only measure is EXCELLENCE.)(And at every step the only measure is EXCELLENCE.)

LeadershipLeadership is a is a sacredsacred

trusttrust..***President, classroom teacher, CEO, shop foreman*President, classroom teacher, CEO, shop foreman

Goal/Skill #1: Goal/Skill #1: The The

“Adaptive” “Adaptive” OrganizationOrganization

Enterprise adaptivity a function of Enterprise adaptivity a function of

more or less only more or less only oneone thing: thing:

energy and spirit energy and spirit and engagement and engagement of and autonomy of and autonomy granted to the granted to the

workforce.workforce.

Goal/Skill #1: The “Adaptive” OrganizationGoal/Skill #1: The “Adaptive” Organization

Adaptive organizations will have workforces which …Adaptive organizations will have workforces which …

*Are hired for *Are hired for attitudeattitude and and charactercharacter and proven and proven teamworkteamwork as as much or more than for skillmuch or more than for skill*Are respected and trusted and visibly *Are respected and trusted and visibly aappppreciatedreciated and and celebratedcelebrated*Are in on pretty much everything in an environment of*Are in on pretty much everything in an environment of information sharing and transparencyinformation sharing and transparency*Are *Are trainedtrained and and rere--trainedtrained ad infinitum— ad infinitum—you can, in effect, you can, in effect, nevernever spend too much time or money on training and re-trainingspend too much time or money on training and re-training*Treat “learning new stuff”—*Treat “learning new stuff”—each and every dayeach and every day —as a near —as a near holyholy responsibilityresponsibility*Believe that every one of us and every outsider has *Believe that every one of us and every outsider has somethingsomething worthy to teach usworthy to teach us*Are routinely exposed to an “insane” variety of outsiders who*Are routinely exposed to an “insane” variety of outsiders who offer constant stimulation and direct challenges to offer constant stimulation and direct challenges to conventionalconventional organizational/marketplace wisdomorganizational/marketplace wisdom*Are given the *Are given the autonomautonomy (with concomitant accountability) toy (with concomitant accountability) to and encouragement to and encouragement to “try it,”“try it,” almost any “it,” at the drop of almost any “it,” at the drop of aa hat—hat—and then try it and try it again and againand then try it and try it again and again

Adaptive organizations Adaptive organizations will have workforces will have workforces which are hired for which are hired for

attitudeattitude and and charactercharacter and proven and proven teamworkteamwork as much or more than as much or more than

for skill.for skill.

““I can’t tell I can’t tell yyou how manou how manyy times we times we ppassed uassed upp hotshots hotshots

for for gguuyys we thous we thougght were ht were better better ppeoeopplele … and watched our … and watched our

guys do a lot better than the big guys do a lot better than the big names, not just in the classroom, but names, not just in the classroom, but on the field—and, naturally, after they on the field—and, naturally, after they graduated, too. Again and again, the graduated, too. Again and again, the blue chips faded out, and our little blue chips faded out, and our little up-and-comers clawed their way to up-and-comers clawed their way to

all-conference and All-America all-conference and All-America teams.”teams.”

—Bo Schembechler (and John Bacon), “Recruit for —Bo Schembechler (and John Bacon), “Recruit for Character,” Character,” Bo’s Lasting LessonsBo’s Lasting Lessons

Goal/Skill #1: The “Adaptive” Organization (cont.)Goal/Skill #1: The “Adaptive” Organization (cont.)

Adaptive organizations will have workforces which …Adaptive organizations will have workforces which …

*Are guaranteed that *Are guaranteed that “useful failures”“useful failures” are are cheerecheered rather thand rather than jeeredjeered*Are bound by a creed that shouts “good enough is never good*Are bound by a creed that shouts “good enough is never good enough”enough”*Are all *Are all “dreamers with deadlines,”“dreamers with deadlines,” committed to pursuit of committed to pursuit of thethe novel and disruptive—and equally committed to flawless andnovel and disruptive—and equally committed to flawless and timely executiontimely execution**LauLaugghh a lot at themselves and their foibles and pratfalls a lot at themselves and their foibles and pratfalls*Are, while *Are, while civilcivil to a fault, to a fault, irreverentirreverent about damn near about damn near anythinganything other than integrity and decencyother than integrity and decency*Are responsible for each other’s *Are responsible for each other’s mentorinmentoring and gg and growthrowth*Believe that their role—each and everyone—is to *Believe that their role—each and everyone—is to serveserve, to , to serveserve each other and to serve each member of our family ofeach other and to serve each member of our family of organizations (vendors, customers, communities, etc)organizations (vendors, customers, communities, etc)*Are *Are diversediverse to a fault—not legalistically diverse, but from to a fault—not legalistically diverse, but from everyevery background imaginablebackground imaginable*Are insistent that each and every one is treated as an utterly*Are insistent that each and every one is treated as an utterly indispensable member of the team—indispensable member of the team—there are no bit playersthere are no bit players*Relentlessly pursue no less than EXCELLENCE in all we do, in*Relentlessly pursue no less than EXCELLENCE in all we do, in tough times even more than in times of economic good healthtough times even more than in times of economic good health

Three Three People!People!

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

name the … name the … threethree ppeoeopplele … 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. heading in the next 12 months. Please explain … in painstakingPlease explain … in painstaking

detail … your development strategy in each case. detail … your development strategy in each case. Please tell me Please tell me your biggest development disappointment—looking back, could you your biggest development disappointment—looking back, could you or would you have done anything differently? Please tell me about or would you have done anything differently? Please tell me about your greatest development triumph—and disaster—in the last five your greatest development triumph—and disaster—in the last five

years. What are the ‘three big things’ you’ve learned about helping years. What are the ‘three big things’ you’ve learned about helping

people grow along the way?”people grow along the way?”

2/year 2/year = =

legacy.legacy.

Promotion DecisionsPromotion Decisions

“life and “life and death death

decisions”decisions”Source: Peter Drucker, Source: Peter Drucker, The Practice of ManagementThe Practice of Management

““A man should A man should nevernever be promoted to a be promoted to a

managerial position if his managerial position if his vision focuses on people’s vision focuses on people’s weaknesses rather than on rather than on

their their strengths.”.” —Peter Drucker,—Peter Drucker,

The Practice of ManagementThe Practice of Management

AndrewAndrew CarneCarneggieie’s Tombstone Inscription …’s Tombstone Inscription …

Here lies a manHere lies a manWho knew how to enlistWho knew how to enlist

In his serviceIn his serviceBetter men than himself.Better men than himself.

Source: Peter Drucker, Source: Peter Drucker, The Practice of ManagementThe Practice of Management

Les WexnerLes Wexner:: From From sweaters to sweaters to

people!people!

““The leaders of Great The leaders of Great

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

it. They … it. They … revelrevel inin …… the talent of the talent of

others.”others.” —Warren Bennis & Patricia Ward —Warren Bennis & Patricia Ward

Biederman, Biederman, Organizing GeniusOrganizing Genius

““Unremarkable” Unremarkable” except forexcept for RESULTS: RESULTS:

Superb people Superb people developer developer

(her/his folks (her/his folks invariablyinvariably

amazed at what amazed at what they’ve accomplished!)they’ve accomplished!)

53 = 53 = 5353

People are People are notnot “Standardized.” “Standardized.” Their evaluations Their evaluations

should should notnot be be standardized. standardized.

EverEver..

““The key difference between checkers and The key difference between checkers and chess is that in checkers the pieces all move chess is that in checkers the pieces all move

the same way, whereas in chess all the pieces the same way, whereas in chess all the pieces

move differently. …move differently. … Discover what Discover what is unique about each is unique about each person and capitalize person and capitalize

on iton it.”.” —Marcus Buckingham, —Marcus Buckingham, The One Thing You Need to The One Thing You Need to

KnowKnow

Evaluating people Evaluating people = #1 differentiator= #1 differentiator

Source: Jack Welch/Jeff Immelt on GE’s Source: Jack Welch/Jeff Immelt on GE’s #1#1

strategic skill (strategic skill (!!!!!!!!))

The Talent Review The Talent Review Process is a contact Process is a contact

sport at GE. sport at GE. it has the it has the intensity and the intensity and the importance of the importance of the budget process at budget process at most companiesmost companies..

70 70 centscents

““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 and Development, Paul Russell, Director, Leadership and Development,

GoogleGoogle

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

asasppect of businessect of business

and yet remainsand yet remains woefully woefully misunderstoodmisunderstood..””

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

KEY Idea: KEY Idea: StudentStudent//ProfessionalProfessional

Have you read Have you read ananyy/some /some

books like:books like: Who: The A Who: The A Method for Method for HiringHiring????????

TP: TP: “How to throw

$500,000 into

the sea in one easy

lesson!!”

< CAPEX< CAPEX> People!> People!

2X2XSource: Container Store/Goal: increase average sale per shopperSource: Container Store/Goal: increase average sale per shopper

““C-C-level”? level”?

Heroism: Heroism: TrainingTraining > Patriotism> Patriotism

No company ever No company ever Expended too Expended too

much much thoughtthought//EffortEffort/ / $$$$$$$$ on training! on training!**

**ESPECIALLYESPECIALLY … small company … small company

In the Army, In the Army, 33--star star ggeneralsenerals worry about worry about

training. In most training. In most businesses, it's a “ho businesses, it's a “ho hum” mid-level staff hum” mid-level staff

function.function.

Why is intensive-Why is intensive-extensive training extensive training

obvious for the army obvious for the army & navy & sports & navy & sports

teams & performing teams & performing

arts groups--but arts groups--but not for the average for the average

business?business?

(1)(1) Training merits Training merits ““C-level” C-level” status! status!(2)(2) Top trainers should Top trainers should be be paid a king’spaid a king’s ransomransom—and be of—and be of the same caliber asthe same caliber as top marketers ortop marketers or researchers.researchers.

Meanwhile in Meanwhile in Rochester NY …Rochester NY …

WegmansWegmans

..

Luiza Helena, Luiza Helena, Magazine LuizaMagazine Luiza

“ “Ask Ask ’em.”’em.”

““The The fourfour most most imimpportantortant wordswords in any in any

organization are …organization 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.com Source: courtesy Dave Wheeler, posted at tompeters.com

““WDYT” =WDYT” = Certification of me Certification of me

as a person of as a person of Importance whose Importance whose opinion is valued. opinion is valued.

TomorrowTomorrow: How : How many times will you many times will you

“ask the WDYT “ask the WDYT question”question”??

[Count ’em!!] [Practice makes [Practice makes

better!] [better!] [This is a This is a STRATEGIC

skill!skill!]]

HelpingHelping

Some Help With Helping …Some Help With Helping …

Help works when the recipient subsequently feelsHelp works when the recipient subsequently feels smarter—not dumber.smarter—not dumber.

Regularly help too soon—and you will set up expectation of Regularly help too soon—and you will set up expectation of inaction until your "help" is provided.inaction until your "help" is provided.

Help poorly conveyed spawns powerlessnessHelp poorly conveyed spawns powerlessness and resentment in recipient.and resentment in recipient.

Helping requires a sniper's rifle or surgeon'sHelping requires a sniper's rifle or surgeon's scalpel—not a shotgun or machete.scalpel—not a shotgun or machete.

Helping strategies vary [significantly] from individual to Helping strategies vary [significantly] from individual to individual—leave the “cookie cutter” at home.individual—leave the “cookie cutter” at home.

Effectively "helping" may be the most difficultEffectively "helping" may be the most difficult leadership task of all!leadership task of all!

"Help" is only truly successful when the recipient"Help" is only truly successful when the recipient says, and believes: "I did it myself!"says, and believes: "I did it myself!"

Near truism: Nobody wants help. But we wouldNear truism: Nobody wants help. But we would all liked to have received help.all liked to have received help.

Guitarist Robert Fripp: "Don't be helpful. Be available. Guitarist Robert Fripp: "Don't be helpful. Be available. Helpful people are a nuisance."Helpful people are a nuisance."

““To be an effective To be an effective leader, you have toleader, you have to

firstfirst have a desire have a desire

and a commitment to and a commitment to helping people.”helping people.”

——Harry Rhoads, Co-founder and CEO,Harry Rhoads, Co-founder and CEO, Washington Speakers Bureau Washington Speakers Bureau

New day.New day.New New

Game.Game.

““Things don’t stay the same. You Things don’t stay the same. You have to understand that not only have to understand that not only your business situation changes, your business situation changes,

but the people you’re working with but the people you’re working with aren’t the same day to day. aren’t the same day to day.

Someone is sick. Someone is Someone is sick. Someone is having a wedding. having a wedding. You must You must ggauaugge e the mood, the thinkinthe mood, the thinkingg level of the level of the

team that dateam that day.”y.” —Coach K [Krzyzewski]—Coach K [Krzyzewski]

““What … What … PreciselyPrecisely … … Is Is youryour goal goal

for for youryour teamteam for … for … todaytoday?? ??

2%2% /98%/98%

““Be kind, for Be kind, for everyone you everyone you

meet is fighting a meet is fighting a great battle.”great battle.”

——Philo of AlexandriaPhilo of Alexandria

2%2% /98%/98%

““I believe that it is more I believe that it is more important for a leader to be important for a leader to be trained in trained in pspsyychiatrchiatry than y than

ccyyberneticsbernetics. The head of a big . The head of a big company recently said to me, ‘I company recently said to me, ‘I

am no longer a Chairman.am no longer a Chairman. I have had to become a I have had to become a

psychiatric nurse.’ Today’s psychiatric nurse.’ Today’s executive is under pressure executive is under pressure

unknown to the last unknown to the last generation.”generation.” —David Ogilvy—David Ogilvy

The Memories The Memories That That MatterMatter..

The Memories That MatterThe Memories That Matter

The people you developed who went on toThe people you developed who went on to stellar accomplishments inside or outsidestellar accomplishments inside or outside the company.the company. The (no more than) two or three people you developed who went on The (no more than) two or three people you developed who went on toto create create stellar institutions of their own.stellar institutions of their own.The longshots (people with “a certain something”) you bet on whoThe longshots (people with “a certain something”) you bet on who surprised themselves—surprised themselves—andand your peers. your peers.

The people of all stripes who 2/5/10/20 yearsThe people of all stripes who 2/5/10/20 years later say later say “You made a difference in my “You made a difference in my life,”life,” “ “Your belief in me changed everything.”Your belief in me changed everything.”The sort of/character of people you hired in general. (The sort of/character of people you hired in general. (And And the bad the bad apples you chucked out despite some stellar traits.)apples you chucked out despite some stellar traits.)A handful of projects (a half dozen at most) you doggedly pursued A handful of projects (a half dozen at most) you doggedly pursued thatthat still make you smile and which fundamentally changed the waystill make you smile and which fundamentally changed the way things are done inside or outside the company/industry.things are done inside or outside the company/industry. The supercharged camaraderie of a handful of Great Teams aiming The supercharged camaraderie of a handful of Great Teams aiming toto “ “change the world.”change the world.”

Joe J. Jones Joe J. Jones 1942 – 2010 1942 – 2010

Net WorthNet Worth

$21,543,672.48$21,543,672.48

People First!People First! People Second ! People Second !

People Third! People Third! People Fourth! People Fourth!

People Fifth!People Fifth! People Sixth!People Sixth!

ExcellenceExcellence

NOWNOW Tom Peters/8 November 2011Tom Peters/8 November 2011

BRG/JohannesburgBRG/Johannesburg(slides @ tompeters.com)(slides @ tompeters.com)

Service/Service/ExcellenceExcellence

Organizations Organizations existexist to to serveserve. .

Period.Period.

Leaders Leaders livelive to to serveserve. Period.. Period.

Why in the Why in 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 that elicits endeavor that elicits maximum maximum

concerted humanconcerted human potential in thepotential in the wholehearted pursuit of wholehearted pursuit of EXCELLENCE inEXCELLENCE in serviceservice of others of others.****Employees, Customers, Suppliers, Communities, Owners, Temporary partners**Employees, Customers, Suppliers, Communities, Owners, Temporary partners

Hard is Soft.Hard is Soft.Soft is Hard.Soft is Hard.

Excellence1982: The Bedrock “EiExcellence1982: The Bedrock “Eigght Basics”ht 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

EXCELLENCE is EXCELLENCE is notnot an "aspiration.”an "aspiration.”

EXCELLENCE EXCELLENCE isis … … THE NEXT FIVE THE NEXT FIVE

MINUTES.MINUTES.

EXCELLENCE is not an "aspiration." EXCELLENCE is not an "aspiration." EXCELLENCE is … THE NEXT FIVE MINUTES.EXCELLENCE is … THE NEXT FIVE MINUTES.

EXCELLENCE is your next conversation.EXCELLENCE is your next conversation.Or not.Or not.EXCELLENCE is your next meeting.EXCELLENCE is your next meeting.Or not.Or not.EXCELLENCE is shutting up and listening—really listening.EXCELLENCE is shutting up and listening—really listening.Or not.Or not.EXCELLENCE is your next customer contact.EXCELLENCE is your next customer contact.Or not.Or not.EXCELLENCE is saying “Thank you” for something “small.”EXCELLENCE is saying “Thank you” for something “small.”Or not.Or not.EXCELLENCE is the next time you shoulder responsibility and apologize.EXCELLENCE is the next time you shoulder responsibility and apologize.Or not.Or not.EXCELLENCE is waaay over-reacting to a screw-up.EXCELLENCE is waaay over-reacting to a screw-up.Or not.Or not.EXCELLENCE is the flowers you brought to work today.EXCELLENCE is the flowers you brought to work today.Or not.Or not.EXCELLENCE is lending a hand to an “outsider” who’s fallen behind EXCELLENCE is lending a hand to an “outsider” who’s fallen behind schedule.schedule.Or not.Or not.EXCELLENCE is bothering to learn the way folks in finance [or IS or HR] EXCELLENCE is bothering to learn the way folks in finance [or IS or HR] think.think.Or not.Or not.EXCELLENCE is waaay “over”-preparing for a 3-minute presentation.EXCELLENCE is waaay “over”-preparing for a 3-minute presentation.Or not.Or not.EXCELLENCE is turning “insignificant” tasks into models of … EXCELLENCE. EXCELLENCE is turning “insignificant” tasks into models of … EXCELLENCE. Or not.Or not.

EXCELLENCEXCELLENCEE is … is … THE THE NEXTNEXT FIVE FIVE MINUTESMINUTES..

Or not.Or not.

Four [really] Four [really] First things First things Before First Before First

Things …Things …

If the regimental commander lost most of his If the regimental commander lost most of his 2nd lieutenants and 1st lieutenants and 2nd lieutenants and 1st lieutenants and

captains and majors, it would be a tragedy. captains and majors, it would be a tragedy.

If he lost his If he lost his serserggeants it would eants it would be a catastrobe a catastropphehe. . The The

Army and the Navy are fully aware that Army and the Navy are fully aware that success on the battlefield is dependent to an success on the battlefield is dependent to an extraordinary degree on its Sergeants and extraordinary degree on its Sergeants and Chief Petty Officers. Does industry have the Chief Petty Officers. Does industry have the

same awareness?same awareness?

““In great armies, the In great armies, the job of generals is to job of generals is to

back up their back up their sergeants.”sergeants.”

—COL Tom Wilhelm, from Robert Kaplan, —COL Tom Wilhelm, from Robert Kaplan, “The Man Who Would Be Khan,” “The Man Who Would Be Khan,” The AtlanticThe Atlantic

The The sergeants sergeants

run the run the army. army.

Period.Period.

#1#1 cause of cause of

employee employee Dis-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

““People leave People leave managers not managers not

companies.”companies.” —Dave Wheeler—Dave Wheeler

I am sure you “spend time” I am sure you “spend time” on this. My question: Is it an on this. My question: Is it an

… … OBSESSIONOBSESSION … …worthy of the impact it has worthy of the impact it has on enterprise performance?on enterprise performance?

Do you absolutely Do you absolutely understand and act understand and act

upon the fact that the upon the fact that the first-line boss is the …first-line boss is the …

KEY LEADERSHIPKEY LEADERSHIP ROLEROLE … in the … in the organization?organization?

E.g.: Do you have the ...E.g.: Do you have the ... ABSOLUTEABSOLUTE BEST BEST TRAINING & TRAINING & DEVELOPMENT DEVELOPMENT PROGRAMSPROGRAMSIN THE INDUSTRYIN THE INDUSTRY ... ...

(or some subset thereof)(or some subset thereof) for first-line supervisors?for first-line supervisors?

18-month report:18-month report: STRIKING STRIKING A NERVE …A NERVE …

XFX = XFX = #1#1**

*Cross-Functional *Cross-Functional eXcellence eXcellence

explicitlyexplicitly & & visiblyvisibly & &

relentlessly relentlessly manage to manage to

XFX standard!XFX standard!

Lunch!Lunch!

Never Never waste a waste a lunch!lunch!

““Personal Personal relationships are the relationships are the fertile soil from which fertile soil from which all advancement, all advancement, allall

success, success, allall achievement in realachievement in real

life grow.”life grow.” —Ben Stein—Ben Stein

““Allied commands depend on Allied commands depend on mutual confidence mutual confidence

and this confidence is and this confidence is gained, above all gained, above all

through thethrough the

develodeveloppmentment ofof friendshifriendshippss.”.”

——General D.D. Eisenhower, General D.D. Eisenhower, Armchair GeneralArmchair General* *

*“Perhaps his most outstanding ability [at West Point]*“Perhaps his most outstanding ability [at West Point]

was the ease with which was the ease with which he made friends and earned he made friends and earned the trust of fellow cadets who came from the trust of fellow cadets who came from

widelwidelyy varied back varied backggroundsrounds; it was a quality that would pay ; it was a quality that would pay great dividends during his future coalition command.”great dividends during his future coalition command.”

% XF % XF

lunches*lunches***MeasureMeasure!! Monthly! Part of Monthly! Part of

evaluation! [The PAs Club.]evaluation! [The PAs Club.]

XFX:XFX: SocialSocial accelerators …accelerators …

XFX/Typical XFX/Typical SocialSocial Accelerators Accelerators

1. EVERYONE’s [more or less] JOB #1: Make friends in other 1. EVERYONE’s [more or less] JOB #1: Make friends in other functions! (Purposefully. Consistently. Measurably.)functions! (Purposefully. Consistently. Measurably.)2. “Do lunch” with people in other functions!! Frequently!! 2. “Do lunch” with people in other functions!! Frequently!! (Minimum 10% to 25% for everyone? Measured.)(Minimum 10% to 25% for everyone? Measured.)3. Ask peers in other functions for references so you can 3. Ask peers in other functions for references so you can become conversant in their world. (It’s one helluva sign become conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-ism.) of ... GIVE-A-DAMN-ism.) 4. Religiously invite counterparts in other functions to your 4. Religiously invite counterparts in other functions to your team meetings. Ask them to present “cool stuff” from “their team meetings. Ask them to present “cool stuff” from “their world” to your group. (Useful. Mark of respect.)world” to your group. (Useful. Mark of respect.)5. 5. PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: TO ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ONCE A DAY … make a short call or visit or send an email of ONCE A DAY … make a short call or visit or send an email of “Thanks” for some sort of XFX gesture by your folks and “Thanks” for some sort of XFX gesture by your folks and some other function’s folks.)some other function’s folks.) 6. Present counterparts in other functions awards for 6. Present counterparts in other functions awards for service to your group. Tiny awards at least weekly; and an service to your group. Tiny awards at least weekly; and an “Annual“Annual All-Star Supporters [from other groups] Banquet” All-Star Supporters [from other groups] Banquet” modeled after superstar salesperson banquets. modeled after superstar salesperson banquets.

Present counterparts in other Present counterparts in other functions recognition/awards for functions recognition/awards for

service to your group:service to your group: Tiny Tiny awards at least weekly. An awards at least weekly. An

“Annual All-Star “Annual All-Star Supporters Supporters [from other groups][from other groups] Banquet” modeled after Banquet” modeled after

[and equivalent to[and equivalent to!!]] superstar superstar salesperson banquets.salesperson banquets.

Formal evaluations. Formal evaluations. EverEveryyoneone, , starting with the starting with the

receptionist, should have a receptionist, should have a sisiggnificantnificant XFX rating XFX rating

component in their component in their evaluation. (The “XFX evaluation. (The “XFX

Performance” should be Performance” should be among the Top 3 items in among the Top 3 items in

allall managers’ evaluations.) managers’ evaluations.)

ALL HAIL … ALL HAIL …

THOSE THOSE WHO WHO

HELP!HELP!

GIVE THE “OTHER GIVE THE “OTHER GUYS” THE CREDIT GUYS” THE CREDIT FOR EVERY-DAMN-FOR EVERY-DAMN-

THING AS A MATTER THING AS A MATTER OF COURSE—NEVER OF COURSE—NEVER EVER FORGET THIS.EVER FORGET THIS.

““You’re You’re spending too spending too

much timemuch time with your with your [bill-paying][bill-paying] customers!”customers!”

C(I)C(I)>>C(C(E)E)

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

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

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

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

oror

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

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

““Suck Suck downdown for for success!”success!”

If you can make If you can make someone junior to someone junior to you look good to you look good to their boss—youtheir boss—you

will have made a will have made a supporter for life!supporter for life!

Case!Case!

"When I was in medical school, I "When I was in medical school, I spent hundreds of hours looking spent hundreds of hours looking into a microscope—a skill I never into a microscope—a skill I never needed to know or ever use. needed to know or ever use. Yet I didn't have a single class that taught me communication or teamwork skills—something I need every day I walk into the

hospital.” —Peter Pronovost, —Peter Pronovost, Safe Patients, Smart HospitalsSafe Patients, Smart Hospitals

““Teamwork Teamwork isn’t isn’t

optional.”optional.” ——Fast CompanyFast Company

on the Mayo Clinic, from Leonard Berry & Kent Seltman, , “Practicing Team Medicine,”on the Mayo Clinic, from Leonard Berry & Kent Seltman, , “Practicing Team Medicine,” Chapter 3 from Chapter 3 from Management Lessons From Mayo ClinicManagement Lessons From Mayo Clinic

William Mayo, William Mayo, 19101910, on the Clinic’s , on the Clinic’s Two Core Values:Two Core Values:

Patient-centered carePatient-centered care

Team medicine Team medicine (“medicine as a co-(“medicine as a co-operative science”)operative science”)

Source: Leonard Berry & Kent Seltman, “Orchestrating the Clues of Quality,” Chapter 7 from Source: Leonard Berry & Kent Seltman, “Orchestrating the Clues of Quality,” Chapter 7 from Management Lessons From Mayo ClinicManagement Lessons From Mayo Clinic

““Competency is Competency is irrelevant if we don’t irrelevant if we don’t

share common share common values.”values.” —Mayo Clinic exec, from Leonard Berry & Kent Seltman, —Mayo Clinic exec, from Leonard Berry & Kent Seltman,

“Orchestrating the Clues of Quality,” Chapter 7 from “Orchestrating the Clues of Quality,” Chapter 7 from Management Lessons From Mayo ClinicManagement Lessons From Mayo Clinic

““I am I am hundreds of hundreds of times better heretimes better here [than[than

in my prior hospital assignment]in my prior hospital assignment] because of because of the support system. the support system. It’s like It’s like

yyou were workinou were workingg in an in an ororgganism; anism; yyou are not a ou are not a

sinsinggle cell when le cell when yyou are out ou are out there there ppracticinracticingg.’”.’” —quote from Dr. Nina Schwenk, —quote from Dr. Nina Schwenk,

in Chapter 3, “Practicing Team Medicine,” from Leonard Berry & Kent Seltman, in Chapter 3, “Practicing Team Medicine,” from Leonard Berry & Kent Seltman, from from Management Lessons From Mayo ClinicManagement Lessons From Mayo Clinic

THE WHOLE POINT HERE IS THAT THE WHOLE POINT HERE IS THAT “XFX”“XFX” IS IS

ALMOST CERTAINLY THE ALMOST CERTAINLY THE #1#1 OPPORTUNITY FOR OPPORTUNITY FOR STRATEGIC DIFFERENTIATION. WHILE MANY WOULD STRATEGIC DIFFERENTIATION. WHILE MANY WOULD

LIKELY AGREE, IN OUR MOMENT-TO-MOMENT AFFAIRS, LIKELY AGREE, IN OUR MOMENT-TO-MOMENT AFFAIRS, XFX PER SE IS NOT SO OFTEN VISIBLY & PERPETUALLY XFX PER SE IS NOT SO OFTEN VISIBLY & PERPETUALLY

AT THE AT THE TOPTOP OF OF EVERY EVERY AGENDA. I ARGUE AGENDA. I ARGUE HERE FOR NO LESS THAN …HERE FOR NO LESS THAN …

VISIBLE.VISIBLE.CONSTANT.CONSTANT.OBSESSION.OBSESSION.

one damn one damn Act of XFX Act of XFX

EnhancemenEnhancement t

everyevery day! day!

Promote into Promote into functional leadership functional leadership

positions based positions based primarily on … primarily on …

temperamenttemperament..

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

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

18 18 ……

18 … 18 … secondsseconds!!

[An [An obsessionobsession with] Listening is ... the ultimate mark 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 CollaborationCollaboration..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 forListening 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 growgrow..Listening is ... the core of Listening is ... the core of effective Cross-functional effective Cross-functional CommunicationCommunication* * (*Which is in turn Attribute #1 of (*Which is in turn Attribute #1 of organizational effectiveness.)organizational effectiveness.)

[cont.][cont.]

““I wasn’t bowled over by I wasn’t bowled over by [David Boies][David Boies] intelligence … What impressed me was intelligence … What impressed me was

that when he asked a question, he waited that when he asked a question, he waited

for an answer. for an answer. He not only He not only listened … listened … he made me he made me feel like I was the only feel like I was the only

person in the roomperson in the room.”.” —Lawyer —Lawyer

_____, on his first, inadvertent meeting with renown attorney David Boies, _____, on his first, inadvertent meeting with renown attorney David Boies, from Marshall Goldsmith, “The One Skill That Separates,” from Marshall Goldsmith, “The One Skill That Separates,” Fast CompanyFast Company

““AggressivAggressivee

listening”listening”

““It’s amazing how this It’s amazing how this seemingly small thing— seemingly small thing—

simsimppllyy pa payyiningg fierce fierce attention to another, reallattention to another, reallyy

askinaskingg, reall, reallyy listenin listening,g, even durineven duringg a brief a brief

conversationconversation—can evoke —can evoke such a wholehearted such a wholehearted

response.”response.” —Susan Scott, —Susan Scott, Fierce Conversations: Fierce Conversations:

Achieving Success at Work and in Life, One Conversation at a TimeAchieving Success at Work and in Life, One Conversation at a Time

Best Listeners Win …Best Listeners Win …

““if you don’t if you don’t listen, you don’t listen, you don’t sell anything.”sell anything.”

——Carolyn MarlandCarolyn Marland

**8 of 10 sales **8 of 10 sales presentations failpresentations fail

**50% failed sales **50% failed sales presentations … talking presentations … talking “at” before listening!“at” before listening!

—Susan Scott, “Let Silence Do the Heavy Listening,” chapter title, —Susan Scott, “Let Silence Do the Heavy Listening,” chapter title, Fierce Conversations: Achieving Success at Work and in Life,Fierce Conversations: Achieving Success at Work and in Life, One Conversation at a Time One Conversation at a Time

Listen = “Profession” =

Study = practice = evaluation =

Enterprise value

““Fierce conversations Fierce conversations often do take time. often do take time.

The The pproblem is, roblem is, anythinanythingg else takes else takes

lonlonggerer.”.” —Susan Scott, —Susan Scott, Fierce Conversations: Fierce Conversations:

Achieving Success at Work and in Life, One Conversation at a TimeAchieving Success at Work and in Life, One Conversation at a Time

Bitch all you Bitch all you want, but want, but meetinmeetinggss

are what you are what you [boss] [boss] dodo!!

Meetings = #1 Meetings = #1 leadership leadership

opportunityopportunity

Meetings are Meetings are #1#1 thing bosses thing bosses

dodo. Therefore, . Therefore, 100%100% of of

those meetings:those meetings: EXCELLENCE. EXCELLENCE. ENTHUSIASM. ENTHUSIASM. ENGAGEMENT. ENGAGEMENT.

LEARNING. TEMPO. LEARNING. TEMPO. WORK-OF-ARTWORK-OF-ART.. DAMN IT. DAMN IT.

Meeting:Meeting: EverEveryy meetin meetingg that that does not stir the imadoes not stir the imaggination ination

and curiosity of attendees and and curiosity of attendees and increase bondinincrease bondingg and co- and co-

oopperation and eneration and enggaaggement ement and sense of worth and and sense of worth and

motivate ramotivate rappid action and id action and enhance enthusiasm is a enhance enthusiasm is a

ppermanentlermanentlyy lost o lost opppportunitortunity.y.

FYI:FYI: This is … This is … notnot … a rant about … a rant about

“conducting “conducting better meetings.”better meetings.”

Meeting = TheaterMeeting = Theater

Prepare for a Prepare for a meeting/every meeting/every

meeting as if your meeting as if your professional life and professional life and

legacy depended on it.legacy depended on it.

It does.It does.

Meetings.Meetings.Phone calls. Phone calls.

Emails.Emails.Conversations.Conversations.

MBWMBW

AA

5KKM5KKM//5M5M

Source: Mark McCormackSource: Mark McCormack

Even when Even when times are times are

tight … don’t tight … don’t short change short change

travel!travel!

MBWMBWAA

Managing By Wandering Around/Managing By Wandering Around/HPHP

MBWA 8 MBWA 8 MBWA 12MBWA 12

MBWA 8: MBWA 8: Change the World With EIGHT WordsChange the World With EIGHT Words

What do you think?*What do you think?*How can I help?**How can I help?**

*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”**Boss as CHRO/Chief Hurdle Removal Officer **Boss as CHRO/Chief Hurdle Removal Officer ********************************************************************

MBWA 12: MBWA 12: Change the WorldChange the World

With TWELVE Words With TWELVE Words

What do you think?*What do you think?*How can I help?**How can I help?**

What have you learned?***What have you learned?***

*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”**Boss as CHRO/Chief Hurdle Removal Officer **Boss as CHRO/Chief Hurdle Removal Officer ********************************************************************

***What [new thing] have you learned [in the last 24 hours]? ***What [new thing] have you learned [in the last 24 hours]? ********************* * ********************* *

You = You = Your Your

calendarcalendar

You = You = Your Your

calendarcalendar**

*The calendar *The calendar nevernever lies.lies.

Your calendar Your calendar knowsknows PreciselyPrecisely

what youwhat youreally care about.really care about.

DoDo youyou????????

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

‘To-don’t ’‘To-don’t ’

List !”List !”

Don’t > Don’t > Do*Do*

* “Don’ting” must be systematic > * “Don’ting” must be systematic > WILLPOWERWILLPOWER

““If there is any If there is any oneone ‘secret’ ‘secret’ to effectiveness, it is to effectiveness, it is

concentration. Effective concentration. Effective executives do first things first executives do first things first

… … and theand theyy do do one thinone thingg at a at a

timetime.”.” —Peter Drucker—Peter Drucker

??????????

50%.50%.UnUn--scheduled.scheduled.**

*Courtesy Dov Frohman*Courtesy Dov Frohman

““It’s It’s alwaalwayyss showtime.”showtime.”

—

““It’s It’s alwaalwayyss showtime.”showtime.”

—David D’Alessandro, Career Warfare

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

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

Gandhi

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

enthusiasm.”enthusiasm.”

—Ben Zander—Ben Zander

““Nothing is Nothing is so contagious so contagious

as as enthusiasm.”enthusiasm.”

—Samuel Taylor Coleridge—Samuel Taylor Coleridge

““The leader must have The leader must have infectious optimism. … infectious optimism. …

The final test of a leader The final test of a leader is the feeling you have is the feeling you have

when you leave his when you leave his presence after a presence after a

conference. Have you a conference. Have you a feeling of uplift and feeling of uplift and

confidence?”confidence?” —Field Marshall Bernard Montgomery—Field Marshall Bernard Montgomery

Be Be explicitexplicit!! HireHire it! it!

PromotePromote it! it!

“Make it fun to work at your Make it fun to work at your agency. … Encourage agency. … Encourage

exuberance.exuberance. Get rid Get rid of sad dogs of sad dogs who spread who spread doom.”doom.” —David Ogilvy—David Ogilvy

Monday/Tomorrow:Monday/Tomorrow: “Script” “Script” your first 5-10 your first 5-10

“plays.” “plays.” (I.e., carefully (I.e., carefully

launch the day/week in a launch the day/week in a purposefulpurposeful fashion.)fashion.)

Me first!Me first!

““Being aware of Being aware of yourself yourself and how and how yyou ou

affect everaffect everyyone around one around yyouou is what is what

distindistingguishesuishes a superior a superior leader.”leader.” —Edie Seashore (—Edie Seashore (Strategy + Strategy +

BusinessBusiness #45) #45)

““How can a high-level How can a high-level leader like _____ be so out of leader like _____ be so out of touch with the truth about touch with the truth about himself? It’s more common himself? It’s more common

than you would imagine. than you would imagine. In fact, the higher up the ladder a leader

climbs, the less accurate his self-

assessment is likely to be. The problem is an The problem is an

acute lack of feedback acute lack of feedback [especially on people [especially on people

issues].”issues].”

—Daniel Goleman (et al.), —Daniel Goleman (et al.), The New LeadersThe New Leaders

"Everyone thinks "Everyone thinks of changing the of changing the

world, but no one world, but no one thinks of thinks of

changing himself" changing himself" - Leo Tolstoy- Leo Tolstoy

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

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

or …or …

1. Have you in the1. Have you in the last 10 days … last 10 days … visitedvisited a customer? a customer?2. Have you called a2. Have you called a 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 customer’s 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, via facilitator, with operation (different levels, different functions, different divisions) interacted, via facilitator, with various of your folks?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 small act of helpfulness … in the last three days?days?

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

The Recession 44:The Recession 44:Forty-four “Secrets” Forty-four “Secrets”

and “clever Strategies” and “clever Strategies” For dealing For dealing

Progressively with the Progressively with the Great Recession of Great Recession of

2007++2007++

44 “Secrets” and “Clever Strategies” For 44 “Secrets” and “Clever Strategies” For Dealing with the Recession of 2007++Dealing with the Recession of 2007++

You come in earlier.You come in earlier.You leave later.You leave later.You work harder.You work harder.You may well work for less; and, if so, youYou may well work for less; and, if so, you adapt to the untoward circumstances with a adapt to the untoward circumstances with a smile—even if it kills you inside.smile—even if it kills you inside.You volunteer to do more.You volunteer to do more.You dig deep and always bring a good attitudeYou dig deep and always bring a good attitude to work.to work.You fake it if your good attitude flags.You fake it if your good attitude flags.You literally practice your "game face" in theYou literally practice your "game face" in the mirror in the morning, and in the loo mirror in the morning, and in the loo mid-morning.mid-morning.You give new meaning to the idea and You give new meaning to the idea and intensive intensive practice of “visible management.”practice of “visible management.”

44 “Secrets” and “Clever Strategies” For 44 “Secrets” and “Clever Strategies” For Dealing with the Recession of 2008-XXXXDealing with the Recession of 2008-XXXX

You take better than usual care of yourself andYou take better than usual care of yourself and encourage others to do the same—physicalencourage others to do the same—physical well-being determines mental well-being andwell-being determines mental well-being and response to stress.response to stress.You shrug off shit that flows downhill in your You shrug off shit that flows downhill in your direction—buy a shovel or a “pre-worn” direction—buy a shovel or a “pre-worn” raincoat on eBay.raincoat on eBay.You try to forget about “the good old days”—You try to forget about “the good old days”— nostalgia is self-destructive.nostalgia is self-destructive.You buck yourself up with the thought that You buck yourself up with the thought that “ “this too shall pass”—but then remind this too shall pass”—but then remind yourselfyourself that it might not pass any time soon, and so that it might not pass any time soon, and so you re-dedicate yourself to making the you re-dedicate yourself to making the absolute best of what you have now.absolute best of what you have now.


You work the phones and then work theYou work the phones and then work the phones some more—and stay in touch withphones some more—and stay in touch with positively everyone.positively everyone.You frequently invent breaks from routine,You frequently invent breaks from routine, including “weird” ones—“changeups” preventincluding “weird” ones—“changeups” prevent wallowing and bring a fresh perspective. wallowing and bring a fresh perspective. You eschew all forms of personal excess.You eschew all forms of personal excess.You simplify.You simplify.You sweat the details as never before.You sweat the details as never before.You sweat the details as never before.You sweat the details as never before.You sweat the details as never before.You sweat the details as never before.You raise to the sky and maintain at allYou raise to the sky and maintain at all costs the Standards of Excellence by whichcosts the Standards of Excellence by which you unfailingly evaluate your own you unfailingly evaluate your own performance.performance.You are maniacal when it comes to respondingYou are maniacal when it comes to responding to even the slightest screw-up.to even the slightest screw-up.


You find ways to be around young people andYou find ways to be around young people and to keep young people around—they are lessto keep young people around—they are less likely to be members of the “sky is falling” likely to be members of the “sky is falling” school.school.You learn new tricks of your trade.You learn new tricks of your trade.You remind yourself that this is not justYou remind yourself that this is not just something to be “gotten through”—it is thesomething to be “gotten through”—it is the Final Exam of character.Final Exam of character.You network like a demon.You network like a demon.You network inside the company—get to knowYou network inside the company—get to know more of the folks who “do the real work.”more of the folks who “do the real work.”You network outside the company—get toYou network outside the company—get to know more of the folks who “do the realknow more of the folks who “do the real work” in vendor-customer outfits.work” in vendor-customer outfits.


You thank others by the truckload if goodYou thank others by the truckload if good things happen—and take the heat yourself things happen—and take the heat yourself if if bad things happen.bad things happen.You behave kindly, but you don't sugarcoat You behave kindly, but you don't sugarcoat oror hide the truth--humans are startlingly hide the truth--humans are startlingly resilient and rumors are the real killers.resilient and rumors are the real killers.You treat small successes as if they wereYou treat small successes as if they were Super Bowl victories—and celebrate andSuper Bowl victories—and celebrate and commend accordingly.commend accordingly.You shrug off the losses (ignoring what's You shrug off the losses (ignoring what's goinggoing on in your tummy), and get back on theon in your tummy), and get back on the horse and immediately try again.horse and immediately try again.You avoid negative people to the extent youYou avoid negative people to the extent you can—pollution kills.can—pollution kills.You eventually read the gloom-sprayers theYou eventually read the gloom-sprayers the riot act. riot act.


You give new meaning to the word "thoughtful.“You give new meaning to the word "thoughtful.“You don’t put limits on the flowers budget—You don’t put limits on the flowers budget— “ “bright and colorful” works marvels.bright and colorful” works marvels.You redouble, re-triple your efforts to "walk inYou redouble, re-triple your efforts to "walk in your customer's shoes." (Especially if theyour customer's shoes." (Especially if the shoes smell.)shoes smell.)You mind your manners—and accept others’You mind your manners—and accept others’ lack of manners in the face of their strains.lack of manners in the face of their strains.You are kind to all mankind.You are kind to all mankind.You keep your shoes shined.You keep your shoes shined.You leave the blame game at the office door.You leave the blame game at the office door.You call out the congenital politicians in noYou call out the congenital politicians in no uncertain terms.uncertain terms.You become a paragon of personal You become a paragon of personal accountability.accountability.And then you pray.And then you pray.

““ALWAYS Remember: ALWAYS Remember: You will be measured by You will be measured by

what you accomplish what you accomplish during tough times. (during tough times. (AndAnd

remembered by remembered by howhow you accomplished it.)you accomplished it.)

K = R = PK = R = P

““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,American Statesman (1777-1852)

"Let's not forget "Let's not forget that small that small

emotions are the emotions are the great captains of great captains of our lives."our lives." –—Van Gogh–—Van Gogh

““Kindness Kindness Is Free.”Is Free.”

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

nonenone of THE top 15 factors of THE top 15 factors

determining determining PPatient atient SSatisfaction atisfaction referred to patient’s health referred to patient’s health outcomeoutcome..

Instead:Instead: directldirectly related to y related to StaffStaff Interaction;Interaction; directldirectly correlated with y correlated with

EmploEmployyee Satisfactionee Satisfaction

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. more staff or more time and are therefore more costly.

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

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

their questions costs nothing. It can be argued that negative their questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive tointeractions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very their needs or limiting their sense of control—can be very costly. … Angry, frustrated or frightened patients may be costly. … Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring farcombative, withdrawn and less cooperative—requiring far more time than it would have taken to interact with them more time than it would have taken to interact with them

initially in a positive way.”initially in a positive way.”

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

(Griffin Hospital/Derby CT; Planetree Alliance) (Griffin Hospital/Derby CT; Planetree Alliance)

K = R = K = R = PP

Kindness = Kindness = Repeat Business Repeat Business

== Profit.Profit.

K = R = P/Kindness = Repeat business = ProfitK = R = P/Kindness = Repeat business = Profit

Kindness:Kindness:

Kind.Kind.Thoughtful.Thoughtful.Decent. Decent. Caring. Caring. Attentive.Attentive.Engaged.Engaged.Listens well/obsessively.Listens well/obsessively.Appreciative.Appreciative.Open.Open.Visible.Visible.Honest.Honest.Responsive.Responsive.On time all the time.On time all the time.Apologizes with dispatch for screw-ups.Apologizes with dispatch for screw-ups.““Over”-reacts to screw-ups of any magnitude.Over”-reacts to screw-ups of any magnitude.““Professional” in all dealings.Professional” in all dealings.Optimistic.Optimistic.Understands that kindness to staff breeds kindness to Understands that kindness to staff breeds kindness to others/outsiders.others/outsiders.Applies throughout the “supply chain.”Applies throughout the “supply chain.”Applies to 100% of customer’s staff.Applies to 100% of customer’s staff.Explicit part of values statement.Explicit part of values statement.Basis for evaluation of 100% of our staff.Basis for evaluation of 100% of our staff.

Kindness … Kindness … WORKSWORKS!!

Kindness … Kindness … PAYSPAYS!!

““We look for ... We look for ... listening, caring, listening, caring, smiling, saying smiling, saying

‘Thank you,’ being ‘Thank you,’ being warm.”warm.”

— Colleen Barrett, former President, Southwest Airlines— Colleen Barrett, former President, Southwest Airlines

Acknowledgement/Acknowledgement/Appreciation/Appreciation/““Thank you!”Thank you!”

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

William JamesWilliam James

"Appreciative words are "Appreciative words are the most powerful forcethe most powerful force

for good on earth.”for good on earth.”——George W. Crane, physician, columnistGeorge W. Crane, physician, columnist

““The two most powerful The two most powerful things in existence: things in existence: a kind word and a a kind word and a

thoughtful gesture.” thoughtful gesture.” ——Ken Langone, co-founder, Home DepotKen Langone, co-founder, Home Depot

A good friend scored a A good friend scored a big win yesterday—big win yesterday—

her "target" was feeling her "target" was feeling un-acknowledged; by un-acknowledged; by

“merely” “showing up,” “merely” “showing up,” she, in effect, she, in effect,

acknowledged that acknowledged that person.person.

“Acknowledge” … perhaps the most

powerful word (and idea) in the English

language—and manager’s tool kit!

Tomorrow: How many Tomorrow: How many times will you mange to times will you mange to blurt out, “Thank you”? blurt out, “Thank you”?

[Count ’em!]

[[PracticePractice makes better!] [This is a makes better!] [This is a STRATEGIC skill!]skill!]

Responsiveness/Responsiveness/Apology/ Apology/

““I’m sorry!”I’m sorry!”

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

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

centercenterppieceiece of my of my work with executives who work with executives who

want to get better.”want to get better.”

——Marshall GoldsmithMarshall Goldsmith, What Got You Here Won’t Get You There: , What Got You Here Won’t Get You There: How Successful People Become Even More Successful. How Successful People Become Even More Successful.

With a new and forthcoming policy on With a new and forthcoming policy on apologies … Toro, the lawn mower apologies … Toro, the lawn mower folks, reduced the average cost of folks, reduced the average cost of

settling a claim fromsettling a claim from $$115,000115,000 in in

1991 to1991 to $$35,00035,000 in 2008 in 2008 …… and and the companthe companyy hasn’t hasn’t been to trial in the been to trial in the

lastlast

1515 y yearsears!!

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.**

*divorce, loss of a BILLION $$$ aircraft sale, etc., etc.*divorce, loss of a BILLION $$$ aircraft sale, etc., etc.

MAKEMAKE THE THE DAMNDAMN CALLCALL..

The completed “three-minute The completed “three-minute call” often-usually-invariably call” often-usually-invariably

leads to a leads to a

strenstrenggthenintheningg of the of the relationship. It not only acts as relationship. It not only acts as atonement but also paves the atonement but also paves the path for a “better than ever” path for a “better than ever” trajectory. And having taken trajectory. And having taken

the initiative per se is worth its the initiative per se is worth its weight in …weight in …

THE PROBLEM IS THE PROBLEM IS RARELY/RARELY/NEVERNEVER THE THE

PROBLEM. THEPROBLEM. THE

RESPONSERESPONSE TO THE 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!

ComebackComeback[big, quick response][big, quick response]

>>>>PerfectionPerfection

Acquire vs. maintain:Acquire vs. maintain:

5X5X***Hence: Service*Hence: Service >>>> SalesSales (!!)(!!)

““Will you guys Will you guys please come up please come up front. Will you front. Will you

guys please move guys please move to the rear.” to the rear.” —TP—TP

Service > Service > SalesSales

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

RReturn eturn OOn n

IInvestment In nvestment In

RRelationshipselationships

R.O.I.R. R.O.I.R. >>>>

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

““The capacity to develop close and The capacity to develop close and enduring relationships is the mark enduring relationships is the mark of a leader. of a leader. UnfortunatelUnfortunatelyy, man, manyy

leaders of major comleaders of major comppanies believe anies believe their their jjob is to create the strateob is to create the strategy,gy,

ororgganization structure and anization structure and ororgganizational anizational pprocessesrocesses——then then

thetheyy just dele just deleggate the work to be ate the work to be done, remainindone, remainingg aloof from the aloof from the

people doinpeople doingg the work the work.”.” —Bill George,—Bill George,

Authentic LeadershipAuthentic Leadership

What … What … PRECISELYPRECISELY … is … is

thisthis week’sweek’s RRelationship elationship IInvestment nvestment

PPlan?lan?

Track & Manage Track & Manage … … your investments in your investments in relationships/your relationships/your

relationships relationships portfolio as closely portfolio as closely

as you would track & as you would track & manage budget manage budget

numbers.numbers.

1/451/45

R.F.A.R.F.A.

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

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

““We have a We have a strategic plan. strategic plan. It’s called … It’s called …

doindoing tg thinhinggss.”.” —Herb Kelleher—Herb Kelleher

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

understand thatunderstand that you only you only find oil if you find oil if you drill wellsdrill wells.. You may You may

think you’re finding it when you’re drawing think you’re finding it when you’re drawing maps and studying logs, but you have to maps and studying logs, but you have to

drill.”drill.”

Source: The HuntersSource: The Hunters, by John Masters, , by John Masters, wildly successful Canadian Oil & Gas wildcatterwildly successful Canadian Oil & Gas wildcatter

““What are Rutan’s management rules? He What are Rutan’s management rules? He insists he doesn’t have any. ‘I don’t like insists he doesn’t have any. ‘I don’t like

rules,’ he says. ‘Things are so easy to change rules,’ he says. ‘Things are so easy to change if you don’t write them down.’ Rutan feels if you don’t write them down.’ Rutan feels good management works in much the same good management works in much the same

way good aircraft design does:way good aircraft design does: Instead Instead of trof tryyiningg to fi to figgure out the best ure out the best

way to do somethinway to do somethingg and and stickinstickingg to it, to it, jjust trust tryy out an out an

aapppproach and keeroach and keepp fixin fixingg it it.”.”

——Eric Abrahamson & David Freedman, Chapter 8, “Messy Eric Abrahamson & David Freedman, Chapter 8, “Messy Leadership,”Leadership,” from A Perfect Mess: The Hidden Benefits of Disorder from A Perfect Mess: The Hidden Benefits of Disorder

““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 are ready By the time our rivals are ready

with wires and screws, we are on version 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 BloombergBloomberg by Bloomberg

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

11/45/45

In Search of ExcellenceIn Search of Excellence /1982: /1982: The Bedrock “Eight Basics”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-Tight8. Simultaneous Loose-Tight Properties Properties

Lesson45:Lesson45: WTTMSWTTMS

WW

WhoeverWhoeverTriesTriesTheTheMostMostStuffStuffWinsWins

WWhoeverhoeverTTriesriesTTheheMMostostSStufftuffWWins.ins.

PeriodPeriod..

Better yet:Better yet: WTTMSASTMSUTFWWTTMSASTMSUTFW

WhoeverWhoeverTriesTriesTheTheMostMostStuffStuffAndAndScrews Screws The The Most Most Stuff Stuff UpUp TheTheFastestFastestWinsWins

““Experiment Experiment fearlessly”fearlessly”

Source: BusinessWeek, “Type A Organization Strategies: How to Hit a Moving Target”—Tactic #1Tactic #1

“relentless trial“relentless trial and error” and error”

Source: Source: Wall Street JournalWall Street Journal, cornerstone of effective approach to “rebalancing” company, cornerstone of effective approach to “rebalancing” company portfolios in the face of changing and uncertain global economic conditions (11.08.10) portfolios in the face of changing and uncertain global economic conditions (11.08.10)

““Fail.Fail. Forward. Forward.

Fast.”Fast.”

““Fail.Fail. Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

Read ItRead It

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

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

of Innovation of Innovation

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

inefficiency, fast , fast and furious and and furious and

numerous failures.”numerous failures.”—Kevin Kelly

““RewardReward excellent failures.

PunishPunish mediocre successes.”

—Phil Daniels, Sydney exec

““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))

““No man ever No man ever became great became great

except through except through many and great many and great

mistakes.”mistakes.” —William Gladstone—William Gladstone

(from (from Timeless WisdomTimeless Wisdom, compiled by Gary Fenchuk) , compiled by Gary Fenchuk)

1/50001/5000

““You miss You miss

100100%%

of the shots of the shots you never you never

take.”take.” —Wayne—Wayne GretzkyGretzky

““We Are We Are WhatWhat

We Eat.” We Eat.”

““You will become You will become like the five like the five people you people you

associate with the associate with the most.”most.”

The “Hang Out Axiom I”:The “Hang Out Axiom I”: We We are are What We What We

Eat/WeEat/We Are Are the the companycompany we keepwe keep

““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

The “Hang Out Axiom II”:The “Hang Out Axiom II”: “Spend “Spend time with ‘Interesting,’ time with ‘Interesting,’ and thou shall become and thou shall become

more interesting. Spend more interesting. Spend time with ‘dull’ and thou time with ‘dull’ and thou shall become more dull.” shall become more dull.”

WeWe Are Are the the companycompany we keep!we keep!

ManageManage it! it!

Measure/Manage: Portfolio “Strangeness”/ Measure/Manage: Portfolio “Strangeness”/ “Quality”“Quality”

1. Customers1. Customers2. Vendors2. Vendors3. Out-sourcing Partners3. Out-sourcing Partners4. Acquisitions4. Acquisitions5. Purposeful “Theft”5. Purposeful “Theft”6. Diversity/“d”iversity6. Diversity/“d”iversity7. Diversity/Crowd-sourcing7. Diversity/Crowd-sourcing8.8. Diversity/Weird Diversity/Weird 9.9. Diversity/CuriosityDiversity/Curiosity10. Benchmarks10. Benchmarks11. Calendar11. Calendar12. MBWA12. MBWA13. Lunch/General13. Lunch/General14. Lunch/Other functions14. Lunch/Other functions15. Location/Internal15. Location/Internal16. Location/HQ16. Location/HQ17. Top team17. Top team18. Board18. Board

The “We are what we eat”/ The “We are what we eat”/ “We are who we associate with”“We are who we associate with”

Axiom: Axiom: At its core, At its core, evereveryy (!!!) (!!!) relationship-partnership decision relationship-partnership decision (employee, vendor, customer, etc, (employee, vendor, customer, etc, etc) is a etc) is a stratestrateggicic decision about: decision about:

“Innovate,“Innovate, ‘ ‘YesYes’ ’ oror ‘No’ ” ”

CUSTOMERS:CUSTOMERS: “Future-“Future-defining customers may defining customers may account for only account for only 2%2% to to 3%3% of your total, of your total, but but

thetheyy re reppresent a resent a crucial window on the crucial window on the futurefuture.”.” —Adrian Slywotzky, Mercer Consultants—Adrian Slywotzky, Mercer Consultants

““[CEO A.G.] Lafley has shifted [CEO A.G.] Lafley has shifted P&G’sP&G’s focus onfocus on

inventing all its own products to developing … inventing all its own products to developing …

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

““Don’t Don’t benchmark, benchmark,

futuremark!”futuremark!” Impetus: “The future is already here; it’s just

not evenly distributed” —William Gibson

““Don’t Don’t benchmark,benchmark,

‘Other’ ‘Other’ markmark!!””

““To grow, companies need to To grow, companies need to break out of a vicious cycle of break out of a vicious cycle of competitive benchmarking and competitive benchmarking and imitation.”imitation.” —W. Chan Kim & Rene Mauborgne, “”Think for Yourself —Stop Copying a —W. Chan Kim & Rene Mauborgne, “”Think for Yourself —Stop Copying a

Rival,” Rival,” Financial TimesFinancial Times/08.11.03/08.11.03

“Companies have defined “Companies have defined so much ‘best practice’ that so much ‘best practice’ that they are now more or less they are now more or less

identical.”identical.”—Jesper Kunde, —Jesper Kunde, Unique Now ... or NeverUnique Now ... or Never

“The short road to ruin is to emulate the

methods of your adversary.” — Winston

Churchill

Whoops …Whoops …

“The The Bottleneck Bottleneck

……

“The Bottleneck The Bottleneck … Is at … Is at

the Top of the the Top of the Bottle”Bottle”

“Where are you likely to find people “Where are you likely to find people with the with the least diversitleast diversityy of ex of expperienceerience, ,

the the larlarggest investment in the est investment in the ppastast,, and the g and the greatest reverence for reatest reverence for

industrindustryy do doggmama … …

AtAt thethe totop!”p!”

— Gary Hamel/— Gary Hamel/Harvard Business ReviewHarvard Business Review

Diversity/ Diversity/ Curiosity/ Curiosity/ CreativityCreativity

““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: The Difference:

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

Diversity … Diversity … perper sese … is a key … … is a key …

maybemaybe thethe keykey … … to effective and to effective and

innovative innovative decision making.decision making.

““d”iversityd”iversity

““Where do good new ideas Where do good new ideas come from? That’s simple! come from? That’s simple!

From differences.From differences. Creativity Creativity comes from unlikely comes from unlikely

juxtapositionsjuxtapositions.. The bestThe best way to maximize differences way to maximize differences is to mix ages, cultures and is to mix ages, cultures and

disciplines.”disciplines.” —Nicholas Negroponte, MIT Media —Nicholas Negroponte, MIT Media LabLab

““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 marked“What is your most marked characteristic?”characteristic?”

Mike Bloomberg:Mike Bloomberg:

“Curiosity.”“Curiosity.”

““Do one thing Do one thing every day that every day that scares you.”scares you.”

—Eleanor Roosevelt

““Normal” Normal”

= = “o “o forfor 800”800”

CQ/Curiosity CQ/Curiosity QuotientQuotient**

*Hire for it in more or less 100% slots/Promote for it*Hire for it in more or less 100% slots/Promote for it

Co-creationCo-creation

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

Red Lake Red Lake goldSource: Source: Wikinomics: How Mass

Collaboration Changes Everything, Don Tapscott & Anthony Williams

““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

ForgetfulnessForgetfulness

Forget>“Learn”Forget>“Learn”

“The problem is never “The problem is never how to get new, how to get new,

innovative thoughts innovative thoughts

into your mind, into your mind, but how to get the old

ones out.” —Dee Hock—Dee Hock

Forgetting Forgetting >> Learning>> Learning

The “We are what we eat”/ The “We are what we eat”/ “We are who we hang out with”“We are who we hang out with”

Axiom: Axiom: At its core, At its core, evereveryy (!!!) (!!!) relationship-partnership decision relationship-partnership decision (employee, vendor, customer, etc, (employee, vendor, customer, etc, etc) is a etc) is a stratestrateggicic decision about: decision about:

“Innovate,“Innovate, ‘ ‘YesYes’ ’ oror ‘No’ ” ”

TGRs/ TGRs/ LBTs LBTs

8/808/80

CustomersCustomers describing their describing their service experience as service experience as

“superior”: “superior”: 88%%ComComppaniesanies describing describing

the service experience they the service experience they provide asprovide as

“ “superior”: superior”: 8080%%——Source: Bain & Company survey of 362 companies, reported in John DiJulius,Source: Bain & Company survey of 362 companies, reported in John DiJulius,

What's the Secret to Providing a World-class Customer Experience?What's the Secret to Providing a World-class Customer Experience?

Conveyance: Kingfisher Air Conveyance: Kingfisher Air Location: Approach to New DelhiLocation: Approach to New Delhi

““May I clean May I clean your glasses, your glasses,

sir?”sir?”

““Let me help Let me help you down you down

the jetway.”the jetway.”

Carl’sCarl’s Street- Street-

Sweeper Sweeper

It It BEGINSBEGINS (and (and ENDSENDS) )

in the …in the …

parkingparking lotlot**

*Disney*Disney

<TG<TGWWandand … …

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

TGRTGRss..ManageManage ’em. ’em.

MeasureMeasure ’em. ’em.

““ExperiencesExperiences are as distinct are as distinct from servicesfrom services

as services are as services are from goods.”from goods.”

—Joe Pine & Jim Gilmore, —Joe Pine & Jim Gilmore, The Experience Economy: The Experience Economy: Work Is Theatre & Every Business a StageWork Is Theatre & Every Business a Stage

““At our core, we’re a At our core, we’re a coffee company, but the coffee company, but the opportunity we have to opportunity we have to

extend the brand is extend the brand is

beyond coffee;beyond coffee; it’s it’s entertainmententertainment.”.”

—Howard Schultz (“The Starbucks Aesthetic,” NYT)

CCXXO*O**Chief e*Chief eXXperience Officerperience Officer

Little =Little =

BIGBIG

““If God spoke to me by If God spoke to me by saying, ‘Mark, you’re down saying, ‘Mark, you’re down to your last three words: to your last three words:

What would you want to say What would you want to say to your fellow humans that to your fellow humans that

would make the most would make the most positive impact?’ It would be positive impact?’ It would be

a close call betweena close call between Love Thy Neighbor and … Love Thy Neighbor and …

““If God spoke to me by saying, ‘Mark, you’re down to your last three words: What If God spoke to me by saying, ‘Mark, you’re down to your last three words: What would you want to say to your fellow humans that would make the most positive would you want to say to your fellow humans that would make the most positive

impact?’ It would be a close call between Love Thy Neighbor and …impact?’ It would be a close call between Love Thy Neighbor and …

Wash Wash Your Your

HandsHands—Mark Pettus, M.D., The Savvy Patient—Mark Pettus, M.D., The Savvy Patient

Socks = Socks = 10,00010,000

>100 >100 feet = feet = 100 100

milesmiles

120-oz container to ketchup-bottle 120-oz container to ketchup-bottle size laundry-detergentsize laundry-detergent concentrate concentrate

(100% conversion):(100% conversion): 1/4th 1/4th packaging; 1/4th weight; 1/4th packaging; 1/4th weight; 1/4th

cost to ship; 1/4th space on cost to ship; 1/4th space on ships, trucks, shelves. 3 years: ships, trucks, shelves. 3 years:

95M #s plastic resin saved, 125M 95M #s plastic resin saved, 125M #s cardboard conserved, 400M #s cardboard conserved, 400M less gallons of water shipped, less gallons of water shipped,

500K gallons less diesel fuel, 11M 500K gallons less diesel fuel, 11M less #s CO2 released)less #s CO2 released)

Source: Source: Force of Nature: The Unlikely Story of Walmart’s Force of Nature: The Unlikely Story of Walmart’s Green RevolutionGreen Revolution, Edward Humes, Edward Humes

Big carts =Big carts =

1.5X1.5XSource: WalmartSource: Walmart

(1)(1) Half-day/Generate Half-day/Generate 25 ideas25 ideas(2) (2) One week/5 One week/5

experimentsexperiments(3) (3) One month/Select best One month/Select best

22(4) (4) 60-90 days/Roll out60-90 days/Roll out

DesignDesign! !

Design Design RulesRules!!

APPLEAPPLE market market capcap

> Exxon Mobil* > Exxon Mobil*

*August 2011*August 2011

““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 FarsonRichard Farson

““Only one company Only one company can be the cheapest. can be the cheapest. All others must use All others must use design.”design.” —Rodney Fitch, Fitch & Co.—Rodney Fitch, Fitch & Co.

Source: Source: InsightsInsights, definitions of design, the Design Council [UK], definitions of design, the Design Council [UK]

““Design is Design is

treated like treated like a relia religgionion at at

BMW.”*BMW.”* —Fortune—Fortune

**APPLEAPPLE market cap > Exxon Mobil (August 2011) market cap > Exxon Mobil (August 2011)

““We don’t have a good language to talk We don’t have a good language to talk about this kind of thing. In most people’s about this kind of thing. In most people’s

vocabularies, design means veneer. … vocabularies, design means veneer. … But to me, nothing could be further from But to me, nothing could be further from

the meaning of design.the meaning of design. DesignDesign is the is the fundamentalfundamental

soulsoul of a man- of a man-made creation.”made creation.” ——

Steve JobsSteve Jobs

““With its carefully conceived mix of colors and textures, With its carefully conceived mix of colors and textures,

aromas and music,aromas and music, StarbucksStarbucks is more is more indicative of our era than the iMac. It is to the indicative of our era than the iMac. It is to the AAggee ofof

AestheticsAesthetics what McDonald’s was to the what McDonald’s was to the AAggee ofof ConvenienceConvenience or Ford was to the Age of Mass Production or Ford was to the Age of Mass Production—the touchstone success story, the exemplar of … the —the touchstone success story, the exemplar of … the

aesthetic imperative. …aesthetic imperative. … ‘Every Starbucks ‘Every Starbucks store is carefully designed to store is carefully designed to

enhance the qualityenhance the quality of everything the customers see, of everything the customers see, touch, hear, smell or taste,’touch, hear, smell or taste,’ writeswrites

CEO Howard Schultz.” CEO Howard Schultz.” —Virginia Postrel, The Substance of Style: How the Rise of Aesthetic

Value Is Remaking Commerce, Culture and Consciousness

““PackagesPackages … … are are

about about containincontainingg and and labelinlabelingg and and informininformingg and and celebratincelebratingg. They. They

are about are about ppowerower and and flatterflatteryy and and trying to win people’s trying to win people’s trusttrust. They . They

are about are about beautbeautyy and and craftsmanshicraftsmanshipp and and comfortcomfort. They . They

are about are about colorcolor, , pprotectionrotection, ,

survivalsurvival.”.” –Thomas Hine, –Thomas Hine, The Total PackageThe Total Package

Charles Handy:Charles Handy: “One bank is currently claiming to … “One bank is currently claiming to …

‘leverage its global footprint to provide effective financial

solutions for its customers by providing a gateway to

diverse markets.’”

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

isis there to …there to … ‘ ‘helhelpp its its customers customers

wherever thewherever theyy areare’.”’.” —Charles Handy—Charles Handy

““I make all the launch teams I make all the launch teams tell me what the magazine’s tell me what the magazine’s

about in about in five words five words or lessor less.. You can’t You can’t run alongside millions of run alongside millions of

consumers and explain what consumers and explain what you mean. It forces some you mean. It forces some

discipline on you.”discipline on you.” —Ann Moore, CEO, Time Inc., on new mags—Ann Moore, CEO, Time Inc., on new mags

Hypothesis:Hypothesis: DESIGNDESIGN is is the pthe princirincippalal

differencedifference between between lovelove

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

Design is …Design is …

nevernever neutralneutral..

CCDDOO**Chief *Chief DDesignesign Officer Officer

““Businesspeople Businesspeople don’t need to don’t need to ‘understand ‘understand

designers better.’ designers better.’ Businesspeople need Businesspeople need

to to bebe designers.” designers.” —Roger Martin/Dean/Rotman Management School/University of Toronto—Roger Martin/Dean/Rotman Management School/University of Toronto

Design is …Design is …

*The reception area*The reception area*The loo*The loo*Dialogues at the call center*Dialogues at the call center*Every electronic [or paper] form*Every electronic [or paper] form*Every business process “map”*Every business process “map”*Every email*Every email*Every meeting agenda/setting/etc.*Every meeting agenda/setting/etc.*Every square meter of every facility*Every square meter of every facility*Every new product proposal*Every new product proposal*Every manual*Every manual*Every customer contact*Every customer contact*A consideration in every promotion decision*A consideration in every promotion decision*The presence and ubiquity of an “Aesthetic sensibility”/*The presence and ubiquity of an “Aesthetic sensibility”/ “Design mindfulness” “Design mindfulness”*An encompassing “design review” process*An encompassing “design review” process*Etc.*Etc.*Etc.*Etc.

New ZealandNew Zealand(“Better By Design”)(“Better By Design”)

KoreaKoreaVermontVermont

HHypypothesisothesis: Men : Men

cannotcannot design for women’s design for women’s

needsneeds!!??!!??

… … this will be this will be the woman’s the woman’s century …century …

““I speak to you with a feminine I speak to you with a feminine voice. It’s the voice of democracy, voice. It’s the voice of democracy,

of equality. I am certain, ladies of equality. I am certain, ladies and gentlemen, and gentlemen, that this will be that this will be

the woman’s centurthe woman’s century. In the y. In the Portuguese language, words Portuguese language, words

such as life, soul, and hope aresuch as life, soul, and hope are of the feminine gender, as are of the feminine gender, as are other words like courage and other words like courage and

sincerity,”sincerity,” —President Dilma Rousseff of Brazil, 1st —President Dilma Rousseff of Brazil, 1st woman to keynote the United Nations General Assemblywoman to keynote the United Nations General Assembly

… … this will be this will be the woman’s the woman’s century … century …

““Forget Forget ChinaChina, , IndiaIndia and the and the InternetInternet: :

Economic Growth Is Economic Growth Is Driven by Driven by

WomenWomen.”.”

Source: Headline, Economist

““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 —Aude Zieseniss de

Thuin, Women’s Forum for the Economy and SocietyThuin, Women’s Forum for the Economy and Society

““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 over the past decade the value of past decade the value of

shares in Goldman’s basket shares in Goldman’s basket has risen by 96%, against the has risen by 96%, against the

Tokyo stockmarket’s Tokyo stockmarket’s rise of 13%rise of 13%.”.” —Economist—Economist

““Since Since 19701970, , women have women have

held held twotwo out of out of every every threethree new new jobs created.”jobs created.”

—FT/2006

““The increased number of women in the working The increased number of women in the working population compensates for the negative demographic population compensates for the negative demographic effects of an ageing population and lower birth rates. effects of an ageing population and lower birth rates.

The same trend is now also visible in emerging The same trend is now also visible in emerging

countries.countries. Southeast Asia’s economic Southeast Asia’s economic success is due primarily to success is due primarily to

women, who hold two-thirds of the women, who hold two-thirds of the jjobs in the exobs in the expport industrort industryy, the , the rereggion’s most dion’s most dyynamic sectornamic sector.”.”

Source: “Women Are Drivers of Global Growth,” Aude Zieseniss de Thuin, Source: “Women Are Drivers of Global Growth,” Aude Zieseniss de Thuin,

founder and president of the Women’s Forum for the Economy and Society (founder and president of the Women’s Forum for the Economy and Society (FTFT))

WOMENWOMEN AreAre The The MarketMarket

W W == 28T 28T >> 2(C 2(C + I)+ I)

W W > > 2X2X (C + (C + I)*I)*

**“Women now drive the global economy. Globally, they control about “Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could climb as high as $20 trillion in consumer spending, and that figure could climb as high as

$28 trillion in the next five $28 trillion in the next five yyearsears. Their $13 trillion in total yearly earnings could reach $18 . Their $13 trillion in total yearly earnings could reach $18

trillion in the same period.trillion in the same period. In aggregate, women represent a growth market bigger than China and In aggregate, women represent a growth market bigger than China and India combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate India combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer. And yet many companies do just that—even ones that are confidant that they have a winning the female consumer. And yet many companies do just that—even ones that are confidant that they have a winning

strategy when it comes to women. Consider Dell’s …”strategy when it comes to women. Consider Dell’s …”

Source: Michael Silverstein and Kate Sayre, “The Female Economy,” Source: Michael Silverstein and Kate Sayre, “The Female Economy,” HBRHBR, 09.09, 09.09

““Women areWomen are thethe majority majority

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

Women as Decision Makers/Various sourcesWomen as Decision Makers/Various sources

Home Furnishings … Home Furnishings … 94%94%Vacations … Vacations … 92%92% (Adventure Travel … 70%/ $55B travel equipment)(Adventure Travel … 70%/ $55B travel equipment)

Houses … Houses … 91%91%D.I.Y. D.I.Y. (major “home projects”)(major “home projects”) … … 80%80%

Consumer Electronics … Consumer Electronics … 51%51% (66% home computers)(66% home computers)

Cars … Cars … 68%68% (influence (influence 90%90%))

AllAll consumerconsumer p purchasesurchases … … 83%83% **

Bank Account … Bank Account … 89%89%Household investment decisions … Household investment decisions … 67%67%Small business loans/biz starts … Small business loans/biz starts … 70%70%

Health Care … Health Care … 80%80%*In the USA women hold *In the USA women hold >50%>50% managerial positions including managerial positions including >50%>50% purchasing officer purchasing officer positions positions; hence women also make the majority of ; hence women also make the majority of commercialcommercial purchasing decisions. purchasing decisions.

Sales/Aftersales ProcessSales/Aftersales Process

1. Kick-off – 1. Kick-off – womenwomen2. Research – 2. Research – womenwomen3. Purchase – 3. Purchase – men4. Ownership – 4. Ownership – womenwomen5. Word-of-mouth – 5. Word-of-mouth – womenwomen

Source: Marti BarlettaSource: Marti Barletta

““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 Answer

Jill and Jack buy slacks in black…

Cases! Cases! Cases!Cases! Cases! Cases!

McDonald’sMcDonald’s (“mom-centered” to F as(“mom-centered” to F as

“majority consumer”; not via kids) “majority consumer”; not via kids)

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

P&GP&G (more than F as “house cleaner”) (more than F as “house cleaner”)

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

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

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

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

Source: Source: Fara Warner/Fara Warner/The Power of the The Power of the PursePurse

Lowe’sLowe’s!!

““Home Depot is still very much a guy’s Home Depot is still very much a guy’s chain. But women, according to Lowe’s chain. But women, according to Lowe’s

research, initiate research, initiate 8080 p percentercent of all of all home-improvement purchase decisions— home-improvement purchase decisions—

esesppeciallecially y thethe bibig g ticket ordersticket orders like kitchen cabinets,like kitchen cabinets,

flooring and bathrooms. ‘We focused flooring and bathrooms. ‘We focused on a customer nobody in home on a customer nobody in home

improvement has focused on. improvement has focused on. Don’t get Don’t get me wrong, but women are far me wrong, but women are far

more discriminating than men,’more discriminating than men,’

says CEO Robert Tillman, a Lowe’s lifer.”says CEO Robert Tillman, a Lowe’s lifer.”

—Forbes.com—Forbes.com

““Women don’t ‘buy’ Women don’t ‘buy’

brands. brands. They They ‘‘join’ join’

themthem.”.”—Faith Popcorn, —Faith Popcorn, EVEolutionEVEolution

MenMen:: Individual perspective. Individual perspective. “Core unit is ‘me.’ ”“Core unit is ‘me.’ ”

Pride in self-reliance.Pride in self-reliance.

WomenWomen:: Group perspective. Group perspective. “Core unit is ‘we.’ ” Pride in “Core unit is ‘we.’ ” Pride in

team accomplishment.team accomplishment.

Source: Martha Barletta, Source: Martha Barletta, Marketing to WomenMarketing to Women

““People powered”: People powered”: Age Age 3 3 daysdays, ,

baby girls baby girls 2X2X eye eye

contact. contact. Source: Martha Barletta, Source: Martha Barletta, Marketing to WomenMarketing to Women

Purchasing Patterns

WomenWomen:: Harder to convince; more loyal once convinced..

MenMen:: Snap decision; fickle..

Source: Martha Barletta, Marketing to Women

2.62.6 vs.vs.

2121

WOMEN WOMEN RULE!RULE!

… … this will be this will be the woman’s the woman’s century … century …

““Headline 2020:Headline 2020: Women Women

Hold Hold 8080 Percent Percent

of Management and of Management and Professional Jobs”Professional Jobs”

Source: Source: The Extreme Future: The Top Trends That Will The Extreme Future: The Top Trends That Will Reshape the World in the Next 20 YearsReshape the World in the Next 20 Years, James Canton, James Canton

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find New Studies find

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

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

Women’s Strengths Match New Women’s Strengths Match New Economy ImperativesEconomy Imperatives:: Link [rather than Link [rather than

rank] workers; rank] workers; favor interactive-favor interactive-collaborative leadership style collaborative leadership style

[empowerment beats top-down decision [empowerment beats top-down decision making];making]; sustain fruitful collaborations; sustain fruitful collaborations;

comfortable with sharing information; comfortable with sharing information; see see redistribution of power as victory, not redistribution of power as victory, not

surrendersurrender; favor multi-dimensional ; favor multi-dimensional feedback; feedback; value technical & interpersonal value technical & interpersonal

skills, individual & group contributions skills, individual & group contributions equally;equally; readily accept ambiguity; readily accept ambiguity; honor honor intuition as well as pure “rationality”;intuition as well as pure “rationality”; inherently flexible; inherently flexible; appreciate cultural appreciate cultural

diversitydiversity..

Source: Source: Judy B. Rosener, Judy B. Rosener, America’s Competitive Secret: Women ManagersAmerica’s Competitive Secret: Women Managers

Women’s NeWomen’s Neggotiatinotiatingg Stren Strenggthsths

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

Source: Horacio Falcao, Cover story/May 2006, Source: Horacio Falcao, Cover story/May 2006, World BusinessWorld Business, “Say It , “Say It Like a Woman: Why the 21Like a Woman: Why the 21stst-century negotiator will need the female -century negotiator will need the female touch”touch”

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

14 14 toto 168168**

*Leadership Positions/D&T/1992-2002/*Leadership Positions/D&T/1992-2002/WIAR WIAR (Women’s Initiative Annual Report)(Women’s Initiative Annual Report)

““Power Women 100”/Power Women 100”/ForbesForbes 10.25.10 10.25.1026 female CEOs of Public Companies:26 female CEOs of Public Companies:

Vs. Men/Market: Vs. Men/Market: +28%+28% ** (*Post-appointment) (*Post-appointment)

Vs. Industry: Vs. Industry: +15%+15%

““Women Beat Women Beat Men at Art of Men at Art of

Investing”Investing”Source: Headline, Source: Headline, Miami HeraldMiami Herald, reporting on a study by Profs. Terrance Odean and , reporting on a study by Profs. Terrance Odean and

Brad Barber, UC DavisBrad Barber, UC Davis (Cause: Guys are “in and out” of stocks more often; women choose carefully

and hold on for the long term)

Warren Buffett Warren Buffett Invests Like a Girl: Invests Like a Girl:

And Why YouAnd Why YouShould TooShould Too —Louann Lofton,—Louann Lofton,

Portrait of a Female InvestorPortrait of a Female Investor

1. Trade less than men do1. Trade less than men do2. Exhibit less overconfidence—more likely to know2. Exhibit less overconfidence—more likely to know what they don’t know what they don’t know3. Shun risk more than male investors do3. Shun risk more than male investors do4. Less optimistic, more realistic than their male4. Less optimistic, more realistic than their male counterparts counterparts5. Put in more time and effort researching possible5. Put in more time and effort researching possible investments—consider details and alternate points investments—consider details and alternate points of view of view6. More immune to peer pressure—tend to make6. More immune to peer pressure—tend to make decisions the same way regardless of who’s decisions the same way regardless of who’s watchingwatching7. Learn from their mistakes7. Learn from their mistakes8. Have less testosterone than men do, making them8. Have less testosterone than men do, making them less willing to take extreme risks, which, in turn, less willing to take extreme risks, which, in turn, could lead to less extreme market cycles could lead to less extreme market cycles

Source: Source: Warren Buffett Invests Like a Girl: And Why YouWarren Buffett Invests Like a Girl: And Why YouShould TooShould Too, Louann Lofton, Chapter 2, “The Science Behind the Girl”, Louann Lofton, Chapter 2, “The Science Behind the Girl”

**Women Women decidedecide..**Women Women savesave..**Women Women ssppendend..**Women Women startstart businessesbusinesses..**Women Women rulerule..

*Women *Women decidedecide*Women *Women savesave*Women *Women ssppendend*Women*Women start start businessesbusinesses*Women *Women rulerule

**In the In the develodeveloppeded world world**In the In the develodeveloppining worldg world [Developing = Growing middle class][Developing = Growing middle class]

**The trend is The trend is acceleratinacceleratingg

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

““There are countless reasons rescuing girls is the right thing to do. It’s also There are countless reasons rescuing girls is the right thing to do. It’s also the smart thing to do. Consider the virtuous circle: An extra year of primary the smart thing to do. Consider the virtuous circle: An extra year of primary school boosts girls’ eventual wages by 10-20%. An extra year of secondary school boosts girls’ eventual wages by 10-20%. An extra year of secondary school adds 15-25%. Girls who stay in school for seven or more years marry school adds 15-25%. Girls who stay in school for seven or more years marry four years later and have two fewer children than girls who drop out. Fewer four years later and have two fewer children than girls who drop out. Fewer

dependents per worker allows for greater economic growth. …dependents per worker allows for greater economic growth. … When When ggirls and women earn income, irls and women earn income,

they re-invest 90% in their they re-invest 90% in their families. Thefamilies. Theyy bu buyy books, books,

medicine, bed nets. For men the medicine, bed nets. For men the fifiggure is more like 30-40%ure is more like 30-40%.. ‘Investment in ‘Investment in

girls’ education may well be the highest-return investment available in the girls’ education may well be the highest-return investment available in the developing world,’ Larry Summers wrote when he was chief economist at the developing world,’ Larry Summers wrote when he was chief economist at the

World Bank. The benefits are so obvious, you wonder why we haven’t paid World Bank. The benefits are so obvious, you wonder why we haven’t paid attention. Less than two cents of every development dollar goes to girls—and attention. Less than two cents of every development dollar goes to girls—and

thatthat is a victory compared to a few years ago when it was something is a victory compared to a few years ago when it was something

like one-half cent. Roughly 9 of 10 youth programs are aimed at boys. …”like one-half cent. Roughly 9 of 10 youth programs are aimed at boys. …”

—Nancy Gibbs, “The Best Investment: If you really want to fight poverty—Nancy Gibbs, “The Best Investment: If you really want to fight poverty, fuel growth and combat extremism, try girl power,” , fuel growth and combat extremism, try girl power,” TIMETIME (0214.2011) (0214.2011)

““The growth and The growth and success of women-success of women-

owned businesses is owned businesses is one of the most one of the most

profound changes profound changes takingtaking place in the place in the

business worldbusiness world today.”today.” —Margaret Heffernan, How She Does It

Girl Girl Power!Power!

““Investment in girls’ Investment in girls’ education may well be education may well be

the highest-return the highest-return investment available investment available

in the developing in the developing world.”world.” —Larry Summers (as chief economist at the World Bank)—Larry Summers (as chief economist at the World Bank)

““Progress is Progress is achieved achieved through through

women.”women.” —Bernard Kouchner,—Bernard Kouchner,

founder, Doctors Without Borders (and French foreign minister) founder, Doctors Without Borders (and French foreign minister)

““Are men Are men obsolete?obsolete?

””

—Headline, —Headline, USN&WRUSN&WR

““Men Are Men Are Finished”Finished”

Source: Slate conference 0920/NYUSource: Slate conference 0920/NYU

““agile creatures agile creatures darting betweendarting between the legs of the the legs of the multinational multinational

monsters"monsters"

“I am often asked by I am often asked by would-be entrepreneurs would-be entrepreneurs seeking escape from life seeking escape from life within huge corporate within huge corporate structures, structures, ‘How do I build a small firm for myself?’ The answer The answer

seems obviousseems obvious … …

Source: Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics

“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 ed to outto outpperform the market. Worse, erform the market. Worse, the lonthe longger comer comppanies had been in anies had been in

the database, the worse thethe database, the worse theyy did did.”.”

—Financial Times—Financial Times

Dick Kovacevich: You don’t get better by being

bigger. You get worse.”

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

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

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

M & A success rate as measured M & A success rate as measured by adding value to theby adding value to the

acquirer:acquirer:

15%15%Source: Mark Sirower, Source: Mark Sirower, The Synergy TrapThe Synergy Trap

SpinoffsSpinoffs … …

systematically perform systematically perform better than IPOs … track better than IPOs … track

record, profits …record, profits … “freed from “freed from the confines of the parent … the confines of the parent … more entrepreneurial, more more entrepreneurial, more nimble”nimble” ——Jerry KnightJerry Knight/ Washington Post/ / Washington Post/ 08.0508.05

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

#2 China#2 China

#1 #1 GermanyGermany

MittELstandMittELstand* * ****

** “agile creatures darting between “agile creatures darting between the legs of the multinationalthe legs of the multinational monsters"monsters" ((Bloomberg BusinessWeek, Bloomberg BusinessWeek, 10.10)10.10)

**E.g. Goldmann Produktion**E.g. Goldmann Produktion

Retail Superstars: Retail Superstars: Inside the 25 Best Inside the 25 Best

Independent Independent Stores in Stores in

AmericaAmerica —by George Whalin—by George Whalin

Jungle Jim’s International Market, Jungle Jim’s International Market, FairfieldFairfield, , OhioOhio:: “An “An

adventure in adventure in ‘‘shoshoppppertainmentertainment,’,’ as as Jungle Jim’s Jungle Jim’s

call it, begins in the parking lot call it, begins in the parking lot and goes on to and goes on to 1,600 1,600 cheesescheeses and, yes, and, yes, 1,400 varieties of hot 1,400 varieties of hot saucesauce —not to mention —not to mention 12,000 wines priced 12,000 wines priced from $8 to $8,000from $8 to $8,000 a bottle; all this is brought to a bottle; all this is brought to

you by you by 4,000 vendors4,000 vendors.. Customers come from Customers come from every corner of the globe.” every corner of the globe.”

Bronner’s Christmas Wonderland, Bronner’s Christmas Wonderland, FrankenmuthFrankenmuth, ,

MichiMichigganan, pop 5,000:, pop 5,000: 98,000-square-foot98,000-square-foot

“shop” features the likes of “shop” features the likes of 6,000 Christmas 6,000 Christmas ornaments, 50,000 trimsornaments, 50,000 trims, and anything else , and anything else you can name if it pertains to Christmas.you can name if it pertains to Christmas.

Source: George Whalin, Source: George Whalin, Retail SuperstarsRetail Superstars

““Be the best. Be the best. It’s the only It’s the only

market that’s market that’s not crowded.”not crowded.”

From: From: Retail Superstars: Inside the 25 BestRetail Superstars: Inside the 25 Best Independent Stores in America,Independent Stores in America, George Whalin George Whalin

Lessons [for Everyone] from Lessons [for Everyone] from Retail Superstars!Retail Superstars!

1. Courses/Workshops/Demos/Engagement 1. Courses/Workshops/Demos/Engagement 2. Instructional guides/material/books2. Instructional guides/material/books3. Events & Events & Events …3. Events & Events & Events …4. Create “Community” of customers 4. Create “Community” of customers 5. Destination 5. Destination 6. Women-as-customer6. Women-as-customer7. Staff selection/training/retention (FANATICISM) 7. Staff selection/training/retention (FANATICISM) 8. Fanaticism/Execution 8. Fanaticism/Execution 9. Design/Atmospherics/Ambience 9. Design/Atmospherics/Ambience 10. Tableaus/Products-in-use 10. Tableaus/Products-in-use 11. Flow/starts & finishes (Disney-like)11. Flow/starts & finishes (Disney-like)12. 100% orchestrated experience/focus: “Moments of 12. 100% orchestrated experience/focus: “Moments of

truth” truth” 13. Constant experimentation/Pursue Little BIG Things 13. Constant experimentation/Pursue Little BIG Things 14. Social Media/Ongoing conversation with customers 14. Social Media/Ongoing conversation with customers 15. Community star 15. Community star 16. Aim high16. Aim high17. PASSION17. PASSION

Small Giants: Small Giants: Companies That Choose to Be Companies That Choose to Be

Great Instead of BigGreat Instead of Big

““Satisfaction”Satisfaction”toto

“Success”“Success”

“ ‘“ ‘Results’ are Results’ are measured by the measured by the

successsuccess of all those of all those who have purchased who have purchased

your product or your product or service”service” —Jan Gunnarsson & Olle —Jan Gunnarsson & Olle

Blohm, Blohm, The Welcoming LeaderThe Welcoming Leader

Huge:Huge: Customer Customer

““SatisfactionSatisfaction with with product/Service”product/Service”

versus versus CustomerCustomer

““SuccessSuccess””

IBIBMMtoto

IIBBMM

$55B*$55B**IBM Global Services/*IBM Global Services/

“Systems integrator of choice”“Systems integrator of choice”

PlanetarPlanetary y RainmakerRainmaker--inin--ChiefChief!!

“[CEO Sam] Palmisano’s “[CEO Sam] Palmisano’s strategy is to expand tech’s strategy is to expand tech’s borders by pushing users—borders by pushing users—

and entire industries—and entire industries—towardtoward radicallradically y differentdifferent businessbusiness modelsmodels.. The payoff for IBM would be The payoff for IBM would be

access to an ocean of revenue—Palmisano access to an ocean of revenue—Palmisano

estimates it atestimates it at $$500500 billionbillion aa y yearear ——that technology companies have never been that technology companies have never been

able to touch.”able to touch.” ——FortuneFortune

UPSUPS“WHAT CAN BROWN DO FOR YOU?”“WHAT CAN BROWN DO FOR YOU?”

“It’s all about “It’s all about solutionssolutions. We . We talk with customers about talk with customers about

how to run better, stronger, how to run better, stronger, cheaper supply chains. We cheaper supply chains. We have 1,000 engineers who have 1,000 engineers who work with customers …”work with customers …”

—Bob Stoffel, UPS senior exec—Bob Stoffel, UPS senior exec

““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

IPM’s Chief:IPM’s Chief: “We’ll do “We’ll do just about anything just about anything

an oilfield owner an oilfield owner would want, from would want, from

drilling to drilling to production.”production.”

MasterCard MasterCard AdvisorsAdvisors

I. LAN Installation Co. (3%)

II. Geek Squad. (30%.)

III. Acquired by Best Buy.

IV. Flagship of Best BuyFlagship of Best Buy Wholesale “Solutions” Wholesale “Solutions” Strategy Makeover. Strategy Makeover.

WowWow

!!

Zappos 10 Corporate ValuesZappos 10 Corporate Values

Deliver Deliver “WOW!”“WOW!” through through

service.service.Embrace and drive change.Embrace and drive change.Create fun and a little weirdness.Create fun and a little weirdness.Be adventurous, creative and open-minded.Be adventurous, creative and open-minded.Pursue growth and learning.Pursue growth and learning.Build open and honest relationships withBuild open and honest relationships with communication.communication.Build a positive team and family spirit.Build a positive team and family spirit.Do more with less.Do more with less.Be passionate and determined.Be passionate and determined.Be humble.Be humble.

Source: Source: Delivering HappinessDelivering Happiness, Tony Hsieh, CEO, Zappos.com, Tony Hsieh, CEO, Zappos.com

““Insanely Great”Insanely Great”Steve JobsSteve Jobs

“Radically thrilling” “Radically thrilling” BMW

““We are crazy. We should do We are crazy. We should do something when people say something when people say

it is ‘crazy.’it is ‘crazy.’ If people If people say something is say something is ‘good’, it means ‘good’, it means someone else is someone else is

already doing it.”already doing it.”—Hajime Mitarai, Canon—Hajime Mitarai, Canon

There is moreThere is more than one way to than one way to

skin a cat!*skin a cat!**Every project*Every project REQUIRESREQUIRES (if you’re smart)(if you’re smart) an an

outside look by one/some Seriously Weird Cat/soutside look by one/some Seriously Weird Cat/s——in pursuit of whacked-out options.in pursuit of whacked-out options.

14,00014,00020,00020,000

3030

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

3030/Craigslist/Craigslist

Where’s your Where’s your “Craig’s List “Craig’s List

[WOW!] [WOW!]

option”option”????

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!!

conrad hilton …

Documents

heart of execution

berkshire hathaway people

simple things

things donewhen

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shower curtain

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