LONGLONG

Tom Peters’Tom Peters’

Excellence.Excellence.Always.Always.

Management ForumManagement ForumBogota/16 March 2009Bogota/16 March 2009

NOTENOTE:: To appreciateTo appreciate this presentation this presentation [and ensure [and ensure

that it is not a that it is not a messmess],], you need you need Microsoft fonts:Microsoft fonts:

“Showcard Gothic,”“Showcard Gothic,” “Ravie,”“Ravie,” “Chiller”“Chiller”

andand “Verdana”“Verdana”

Slides at …Slides at …

tompeters.comtompeters.com

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

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

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

His immediate answer …His immediate answer …

““remember remember to tuck the to tuck the

shower curtain shower curtain inside the inside the bathtubbathtub””

““Execution Execution isis

strategy.”strategy.” —Fred Malek—Fred Malek fffffii

““almost inhuman almost inhuman disinterestedness disinterestedness in … strategy”in … strategy” —Josiah —Josiah

Bunting on Bunting on U.S. GrantU.S. Grant (from (from Ulysses S. Ulysses S. GrantGrant))

MBWMBWAA

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

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

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

takes a look.”takes a look.”

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

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

nevernever talked talked about cars.”about cars.” —Les Wexner—Les Wexner

                       

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

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

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

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

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

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

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

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

19821982

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

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

““Breakthrough” 82*Breakthrough” 82*

People! People! CustomersCustomers

! ! Action! Action! Values! Values!

**In Search of ExcellenceIn Search of Excellence

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

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

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

relationships))relationships))

20072007SiberiaSiberia

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

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

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

20072007SydneSydne

yy

Organizations Organizations existexist to to serveserve. Period.. Period.

Leaders Leaders live live toto serveserve. Period.. Period.

… … no less than no less than CathedralsCathedrals

in which the full and in which the full and awesome power of the awesome power of the

Imagination and Spirit and Imagination and Spirit and native Entrepreneurial flairnative Entrepreneurial flair

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

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

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

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

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

employees like employees like customers.”customers.” —Herb Kelleher, —Herb Kelleher,

complete answer, upon being asked his “secrets to success”complete answer, upon being asked his “secrets to success”

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

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

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

The Customer The Customer Comes SecondComes Second

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

““We are a We are a ‘Life ‘Life

Success’ Success’ Company.”Company.”

Dave Liniger, founder, RE/MAX

The Dream ManagerThe Dream Manager —Matthew Kelly—Matthew Kelly

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

striving to become better-versions-of-themselves.” “A striving to become better-versions-of-themselves.” “A company’s purpose is to become the-best-version-of-itself. The company’s purpose is to become the-best-version-of-itself. The

question is:question is: What is an emploWhat is an employyee’s ee’s ppururppose? ose? Most would saMost would sayy, ‘to hel, ‘to helpp the com the comppananyy

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

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

company forgets that it exists to serve customers, it quickly company forgets that it exists to serve customers, it quickly

goes out of business.goes out of business. Our employees are our first Our employees are our first customers, and our most important customers, and our most important

customers.”customers.”

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

organizationorganization

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

Source: courtesy Dave Wheeler, posted atSource: courtesy Dave Wheeler, posted at tompeters.com, source of original unknown (0609.08) tompeters.com, source of original unknown (0609.08)

1818””

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

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

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

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

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

William JamesWilliam James

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

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

Champion = Champion = OneOne LineLine ofof CodeCode!!

““Leaders Leaders

‘‘SERVESERVE’’ people. people.

Period.”Period.” —inspired by Robert Greenleaf

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

or it's simor it's simppllyy not not worth doinworth doing.”g.” —Richard Branson—Richard Branson

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

against tasks. Leadership against tasks. Leadership focuses on people. My focuses on people. My definition of a leader is definition of a leader is

someone who helps people someone who helps people succeed.”succeed.” —Carol Bartz, Yahoo! —Carol Bartz, Yahoo!

Ben Ben Changes Changes

His BHAG!*His BHAG!*

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

TP: TP: “How to flush

$500,000 down

the toilet in one easy

lesson!!”

< CAPEX< CAPEX> People!> People!

WegmansWegmans

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

Brand Brand = =

Talent.Talent.

The 19 Es ofThe 19 Es ofExcellenceExcellence

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

EnthusiasmEnthusiasm.. (Be an irresistible force of nature!) (Be an irresistible force of nature!)

EnerEnergy.gy. (Be fire! Light fires!)(Be fire! Light fires!)

ExuberanceExuberance.. (Vibrate—cause earthquakes!)(Vibrate—cause earthquakes!)

ExecutionExecution.. (Do it! Now! Get it done! Barriers are baloney! Excuses are for wimps! Accountability is gospel! (Do it! Now! Get it done! Barriers are baloney! Excuses are for wimps! Accountability is gospel! Adhere to the Bill Parcells doctrine: “Blame nobody! Expect nothing! Do something!”)Adhere to the Bill Parcells doctrine: “Blame nobody! Expect nothing! Do something!”)

EmEmppowermentowerment.. (Respect and appreciation! Always ask, “What do you think?”(Respect and appreciation! Always ask, “What do you think?” Then: Listen! Liberate! Celebrate! 100% innovators or bust!)Then: Listen! Liberate! Celebrate! 100% innovators or bust!)

EdEdgginessiness.. (Perpetually dancing at the frontier, and a little or a lot beyond.)(Perpetually dancing at the frontier, and a little or a lot beyond.)

EnraEnraggeded.. (Determined to challenge & change the status quo!)(Determined to challenge & change the status quo!)

EnEnggaaggeded.. (Addicted to MBWA/Managing By Wandering Around. In touch. Always.) (Addicted to MBWA/Managing By Wandering Around. In touch. Always.)

ElectronicElectronic.. (Partners with the world 60/60/24/7 via electronic community building(Partners with the world 60/60/24/7 via electronic community building and entanglement of every sort. Crowdsourcing/doing power!)and entanglement of every sort. Crowdsourcing/doing power!)

EncomEncomppassingassing.. (Relentlessly pursue diverse opinions—the more diversity the merrier! Diversity per se “works”!)(Relentlessly pursue diverse opinions—the more diversity the merrier! Diversity per se “works”!)

EmotionEmotion.. (The alpha. The omega. The essence of leadership. The essence of sales. (The alpha. The omega. The essence of leadership. The essence of sales. The essence of marketing. The essence. Period. Acknowledge it.)The essence of marketing. The essence. Period. Acknowledge it.)

EmEmppathathy.y. (Connect, connect, connect with others’ reality and aspirations! “Walk(Connect, connect, connect with others’ reality and aspirations! “Walk in the other person’s shoes”—until the soles have holes!)in the other person’s shoes”—until the soles have holes!)

ExExpperienceerience.. (Life is theater! Make every activity-contact memorable! Standard:(Life is theater! Make every activity-contact memorable! Standard: “ “Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.)Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.)

EliminateEliminate.. (Keep it simple!)(Keep it simple!)

ErrorErrorppronerone.. (Ready! Fire! Aim! Try a lot of stuff and make a lot of booboos and then try some more stuff(Ready! Fire! Aim! Try a lot of stuff and make a lot of booboos and then try some more stuff and make some more booboos—all of it at the speed of light!)and make some more booboos—all of it at the speed of light!)

EvenhandedEvenhanded.. (Straight as an arrow! Fair to a fault! Honest as Abe!)(Straight as an arrow! Fair to a fault! Honest as Abe!)

ExpectationsExpectations.. (Michelangelo: “The greatest danger for most of us is not that our aim is too high and we miss it, (Michelangelo: “The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.” Amen!)but that it is too low and we reach it.” Amen!)

EudaimoniaEudaimonia.. (Pursue the highest of human moral purpose—the core of Aristotle’s philosophy. Be of service. (Pursue the highest of human moral purpose—the core of Aristotle’s philosophy. Be of service. Always.)Always.)

ExcellenceExcellence.. (The only standard! Never an exception! Start now! No excuses! If not Excellence, what?(The only standard! Never an exception! Start now! No excuses! If not Excellence, what? If not Excellence now, when?)If not Excellence now, when?)

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

Excellence?”Excellence?”

““11 minute”minute”

Some likeSome like it hot! it hot!

““Insanely Insanely Great”Great”

““Radically Radically thrilling”thrilling”

BMW

““You do not merely want to You do not merely want to

be the best of the best.be the best of the best. You want to be You want to be considered the considered the

only ones who do only ones who do what you dowhat you do.” .” —Jerry

Garcia

dubaidubai

Single Single greatest act greatest act

of pure of pure imaginationimagination

Does Does youryour project portfolioproject portfolio

“ “havehave a dubai”?a dubai”?

#1 Truthteller …#1 Truthteller …

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

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

ThreeThree..

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

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

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

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

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

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

Gandhi

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

—Marshall Goldsmith—Marshall Goldsmith

#1 Trait …#1 Trait …

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

enthusiasm.”enthusiasm.”

—Ben Zander

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

—Samuel Taylor Coleridge

Halt. Do. It. Halt. Do. It. Now. …Now. …

--1%1%

Skip the mapSkip the map

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

or …or …

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

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

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

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

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

11. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines 11. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines concerning a project’s next steps?concerning a project’s next steps?12. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines 12. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines concerning a project’s next steps … and what specifically concerning a project’s next steps … and what specifically you can do to remove a hurdleyou can do to remove a hurdle? (“Ninety percent of ? (“Ninety percent of what we call management consists of making it difficult for people to get things done.”—Peter “His eminence” what we call management consists of making it difficult for people to get things done.”—Peter “His eminence” Drucker.)Drucker.)13. Have you celebrated in the last week a “small” (or large!) 13. Have you celebrated in the last week a “small” (or large!) milestone milestone reached? (I.e., are you a milestone reached? (I.e., are you a milestone fanatic?)fanatic?)14. Have you in the last week or month revised some estimate in the “wrong” direction and apologized for making 14. Have you in the last week or month revised some estimate in the “wrong” direction and apologized for making a lousy estimate? (Somehow you must publicly a lousy estimate? (Somehow you must publicly reward the telling of difficult truthsreward the telling of difficult truths.).)

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

16. Have you in the last six months had a week-long, visible, very intensive 16. Have you in the last six months had a week-long, visible, very intensive visit-“tour”visit-“tour” of external customers? of external customers?17. Have you in the last 60 days called an abrupt halt to a meeting and “ordered” everyone to get out of the office, 17. Have you in the last 60 days called an abrupt halt to a meeting and “ordered” everyone to get out of the office, and “into the field” and in the and “into the field” and in the next eight hoursnext eight hours, after asking those involved, fixed (f-i-x-e-d!) a nagging “small” , after asking those involved, fixed (f-i-x-e-d!) a nagging “small” problem through practical action?problem through practical action?18. Have you in the last week had a rather thorough discussion of a “cool design thing” someone has come 18. Have you in the last week had a rather thorough discussion of a “cool design thing” someone has come across—away from your industry or function—at a Web site, in a product or its packaging? across—away from your industry or function—at a Web site, in a product or its packaging? 19. Have you in the last two weeks had an informal meeting—at least an hour long—with a frontline employee to 19. Have you in the last two weeks had an informal meeting—at least an hour long—with a frontline employee to discuss things we do right, things we do wrong, what it would take to meet your mid- to long-term aspirations?discuss things we do right, things we do wrong, what it would take to meet your mid- to long-term aspirations?20. Have you had in the last 60 days had a general meeting to discuss “things we do wrong” … that we can fix in 20. Have you had in the last 60 days had a general meeting to discuss “things we do wrong” … that we can fix in the next the next fourteen daysfourteen days??

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

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

30. Have you in the last two months had a presentation to the group by a “weird” 30. Have you in the last two months had a presentation to the group by a “weird” outsider? outsider?

31. Have you in the last two months had a presentation to the group by a customer, 31. Have you in the last two months had a presentation to the group by a customer, internal customer, vendor featuring “working folks” 3 or 4 levels down in the vendor internal customer, vendor featuring “working folks” 3 or 4 levels down in the vendor organization? organization? 32. Have you in the last two months had a presentation to the group of a cool, 32. Have you in the last two months had a presentation to the group of a cool, beyond-our-industry ideas by two of your folks?beyond-our-industry ideas by two of your folks?33. Have you at every meeting today (and forever more) re-directed the conversation 33. Have you at every meeting today (and forever more) re-directed the conversation to the practicalities of implementation concerning some issue before the group?to the practicalities of implementation concerning some issue before the group?34. Have you at every meeting today (and forever more) had an end-of-meeting 34. Have you at every meeting today (and forever more) had an end-of-meeting discussion on “action items to be dealt with in the next 4, 48 hours? (And then made discussion on “action items to be dealt with in the next 4, 48 hours? (And then made this list public—and followed up in 48 hours.) And made sure everyone has at least this list public—and followed up in 48 hours.) And made sure everyone has at least one such item.)one such item.)35. Have you had a discussion in the last six months about what it would take to get 35. Have you had a discussion in the last six months about what it would take to get recognition in local-national poll of recognition in local-national poll of “best places to work”?“best places to work”?36. Have you in the last month approved a 36. Have you in the last month approved a cool-different training coursecool-different training course for one for one of your folks?of your folks?

37. 37. Have you in the last month Have you in the last month taught taught a front-line a front-line training course?training course?38. Have you in the last week discussed the idea of 38. Have you in the last week discussed the idea of ExcellenceExcellence? (What it means, how? (What it means, howto get there.)to get there.)39. Have you in the last week discussed the idea of 39. Have you in the last week discussed the idea of “Wow”?“Wow”? (What it means, how (What it means, howto inject it into an ongoing “routine” project.)to inject it into an ongoing “routine” project.)40. Have you in the last 45 days assessed some major process in terms of the details 40. Have you in the last 45 days assessed some major process in terms of the details of the “experience,” as well as results, it provides to its external or internal of the “experience,” as well as results, it provides to its external or internal customers?customers?

41. Have you in the last month had one of your folks attend a meeting you were supposed to go 41. Have you in the last month had one of your folks attend a meeting you were supposed to go to which gives them unusual exposure to senior folks?to which gives them unusual exposure to senior folks?42. Have you in the last 60 (30?) days sat with a trusted friend or “coach” to discuss your 42. Have you in the last 60 (30?) days sat with a trusted friend or “coach” to discuss your “management style”—and its long- and short-term impact on the group?“management style”—and its long- and short-term impact on the group?

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

44. Have you in the last … 44. Have you in the last … two hourstwo hours … stopped by someone’s (two-levels “down") office- … stopped by someone’s (two-levels “down") office-workspace for 5 minutes to ask “What do you think?” about an issue that arose at a more or workspace for 5 minutes to ask “What do you think?” about an issue that arose at a more or less just completed meeting? (And then stuck around for 10 or so minutes to listen—and less just completed meeting? (And then stuck around for 10 or so minutes to listen—and visibly taken notes.)visibly taken notes.)45. Have you … in the last day … looked around you to assess whether the diversity pretty 45. Have you … in the last day … looked around you to assess whether the diversity pretty accurately maps the diversity of the market being served? (And …) accurately maps the diversity of the market being served? (And …) 46. Have you in the last day at some meeting gone out of your way to make sure that a 46. Have you in the last day at some meeting gone out of your way to make sure that a normally reticent person was engaged in a conversation—and then thanked him or her, normally reticent person was engaged in a conversation—and then thanked him or her, perhaps privately, for their contribution?perhaps privately, for their contribution?47. Have you during your tenure instituted very public (visible) presentations of performance?47. Have you during your tenure instituted very public (visible) presentations of performance?48. Have you in the last four months had a session specifically aimed at checking on the 48. Have you in the last four months had a session specifically aimed at checking on the “corporate culture” and the degree we are true to it—with all presentations by relatively junior “corporate culture” and the degree we are true to it—with all presentations by relatively junior folks, including front-line folks? (And with a determined effort to keep the conversation folks, including front-line folks? (And with a determined effort to keep the conversation restricted to “real world” “small” cases—not theory.) restricted to “real world” “small” cases—not theory.) 49. Have you in the last six months talked about the 49. Have you in the last six months talked about the Internal Brand PromiseInternal Brand Promise??50. Have you in the last year had a full-day off site to talk about individual (and group) 50. Have you in the last year had a full-day off site to talk about individual (and group) aspirations?aspirations?

Pursuing Pursuing

Discomfort!Discomfort!

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

uncomfortable.”uncomfortable.”—Jay Chiat

““Do one Do one thing every thing every

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

—Eleanor Roosevelt

Kevin Roberts’ CredoKevin Roberts’ Credo

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

10. Avoid moderationAvoid moderation!!

The greatest dangerThe greatest dangerfor most of usfor most of us

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

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

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

Michelangelo

““You miss You miss

100100%%

of the shots of the shots you never you never

take.”take.” —Wayne—Wayne GretzkyGretzky

BIG?

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

answer seems obvious: Buy a Buy a very large one very large one and just waitand just wait.”.”

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

Dick Kovacevich: You don’t get better by

being bigger. You get worse.”

““Mr. Foster and his McKinsey Mr. Foster and his McKinsey colleagues collected detailed colleagues collected detailed

performance data stretching back performance data stretching back 4040 years for years for 1,0001,000 U.S. companies. U.S. companies. TheTheyy

found that found that none none of the of the

lonlongg-term survivors mana-term survivors managged to ed to outoutpperform the market. Worse, the erform the market. Worse, the lonlongger comer comppanies had been in the anies had been in the

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

TimesTimes

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

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

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

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

#2T China#2T China

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

#2 China#2 China

#1 #1 GermanyGermany

Reason!!!Reason!!!

MittelstandMittelstand

Jim’s Jim’s GroupGroup

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

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

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

Jim’s Computer ServicesJim’s Computer Services

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

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

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

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

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

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

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

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

1/401/40

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

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

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

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

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

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

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

think you’re finding it when you’re drawing maps and

studying logs, but you have to drill.”

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

Dick ‘n Dick ‘n dandan

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

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

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

versionversion ##55.. By the time our rivals areBy the time our rivals are

ready with wires and screws, we are on versionready with wires and screws, we are on version

##1010.. It gets back to It gets back to

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

BloombergBloomberg

““ExperimenExperiment t

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

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

““Fail .Fail . Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

““RewardReward excellent failures.

PunishPunish mediocre

successes.”Phil Daniels, Sydney exec

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

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

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

to changeto change.”.” —Charles Darwin

4/404/40

DECENTRALIZATIONDECENTRALIZATION..

EXECUTION.EXECUTION.ACCOUTABILITY.ACCOUTABILITY.

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

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

salesfolk)salesfolk)

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

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

discipline on People and Power;discipline on People and Power; on Values, Structure, and on Values, Structure, and Constitution; and Constitution; and above all,above all,

on reson respponsibilitiesonsibilities—that is, —that is, focused the Discipline of focused the Discipline of

Management on management asManagement on management as a truly liberal art.”a truly liberal art.” (18 January 1999)(18 January 1999)

Small Small

is (can often be)is (can often be)

BIGBIG

““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

Behavioral Primacy!

E.g.: plate size; E.g.: plate size; location of platters, location of platters,

6.56.5 feet Away = feet Away =

--6363% % “Seconds” “Seconds”

Source: Brian Wansink, Source: Brian Wansink, Mindless EatingMindless Eating (20 lbs per year; 200 decisions per day) (20 lbs per year; 200 decisions per day)

““Paint it Paint it white!”white!”

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

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

Socks = Socks = 10K10K

““Everything matters”Everything matters”

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

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

in ICU. in ICU.

50%50% stays result stays result

in “serious complication”in “serious complication”

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

****Peter PronovostPeter Pronovost, , Johns Hopkins, 2001 Johns Hopkins, 2001**Checklist, line infections**Checklist, line infections**1/3**1/3rdrd at least one error when he started at least one error when he started**Nurses/permission to stop procedure**Nurses/permission to stop procedure if doc, other not following checklist if doc, other not following checklist**In 1 year, 10-day line-infection rate:**In 1 year, 10-day line-infection rate:

11% to … 11% to … 0%0%

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

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

Why We Buy/Nudge/Sway/ Why We Buy/Nudge/Sway/ Kahneman-TverskyKahneman-TverskyNo waste baskets/paper recyclingNo waste baskets/paper recyclingCases vs chartsCases vs chartsDefault/401(k)/45% vs 86%Default/401(k)/45% vs 86%Designer next to the CEODesigner next to the CEOOpel plant away from factoryOpel plant away from factoryRickover’s chair/Sunlight in myRickover’s chair/Sunlight in my eyes/LBJ on the edge of the rugeyes/LBJ on the edge of the rugThank you notes/10 yearsThank you notes/10 years

Stew/Wrapped and loose fish/2XStew/Wrapped and loose fish/2XStew/No exit aislesStew/No exit aislesWal*Mart/Oversized cartsWal*Mart/Oversized cartsCoins with likenessesCoins with likenessesPost Office architecturePost Office architecturePat visits the Local presidentPat visits the Local presidentThom Mayer and the crossed armsThom Mayer and the crossed arms““Management” of body languageManagement” of body language (2/3rds of communication)(2/3rds of communication)

Prowl the bowels of theProwl the bowels of the organizationorganizationFirst question askedFirst question askedTop of the agendaTop of the agendaCalendar!Calendar!Checklist/Peter Pronovost/ICU lineChecklist/Peter Pronovost/ICU line infections/50%-0%infections/50%-0%Visible measures/Creech andVisible measures/Creech and billboardsbillboardsCreech/mechanics’ “drive by”Creech/mechanics’ “drive by”Food at frontFood at front

Sexy voice/USAFSexy voice/USAFWalls of yesterday or tomorrowWalls of yesterday or tomorrowStaff “lives with” lineStaff “lives with” line““Broken windows”-“beer and pissBroken windows”-“beer and piss patrol”/sense of order, smallpatrol”/sense of order, small crimes beget large onescrimes beget large onesWashington and “dress for Washington and “dress for success”/winter 1776success”/winter 1776Dress codeDress code

FlFly y inin thethe urinalurinal/-/-8080%%Parking lot location/elevatorParking lot location/elevator speed/food courtspeed/food court

Plate size/distance from “seconds” Plate size/distance from “seconds” (6.5 feet = 63%)(6.5 feet = 63%)>50 feet = 50 miles/T Allen>50 feet = 50 miles/T AllenCasual gathering places/ “nooks”/Casual gathering places/ “nooks”/ 3M-Austin3M-AustinWalk down the stairs once a month/Walk down the stairs once a month/ 9-11 survivor9-11 survivorGlasses in the cup (two weeks)Glasses in the cup (two weeks)TP party prepTP party prep“Renegade” buildings“Renegade” buildingsWelcoming reception area (Insta-Welcoming reception area (Insta- “ “smell culture”)smell culture”)Burlington Police Department/Burlington Police Department/ decals on glasses/12.31.06decals on glasses/12.31.06

Bike at the door/Running shoesBike at the door/Running shoes next to the bednext to the bedMeasures/New (TP & Seabees)Measures/New (TP & Seabees)Reports (WIAR/Women’s InitiativeReports (WIAR/Women’s Initiative Annual Report/Deloitte & Annual Report/Deloitte & Touche)Touche)MBWAMBWAGrant sleep on the ground, Grant sleep on the ground, travel with one assistanttravel with one assistantPromotions/Deep dipPromotions/Deep dip“Small” personal gestures“Small” personal gesturesFocus/One inescapable campaign/Focus/One inescapable campaign/ Welch-GEWelch-GE

HustleHustleStand-up meetingsStand-up meetingsAsk vs talkAsk vs talk““What do you think?”What do you think?”Engaged listeningEngaged listeningGo to door to meetGo to door to meetObama transitionObama transitionAwareness of “Kremlinologists”Awareness of “Kremlinologists”

Hire for smile!Hire for smile!TOV/tone of voiceTOV/tone of voiceMaster the arcane rules/Master the arcane rules/ Al Smith/LBJ/Dole/Tom DeLayAl Smith/LBJ/Dole/Tom DeLay““Eighty percent of success isEighty percent of success is showing up”/Woody Allen/showing up”/Woody Allen/ DelawareDelaware“Courtesies of a small and trivial“Courtesies of a small and trivial character are the ones whichcharacter are the ones which strike deepest in the grateful strike deepest in the grateful andand appreciating heart.”/Henry Clayappreciating heart.”/Henry ClayJeffords/Missing invitationJeffords/Missing invitationFlowersFlowers

We AreWe Are What We What We

Eat Eat

We We areare 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

Measure “Strangeness”/Portfolio QualityMeasure “Strangeness”/Portfolio Quality

StaffStaffConsultantsConsultants

VendorsVendorsOut-sourcing Partners Out-sourcing Partners (#, Quality)(#, Quality)

Innovation Alliance PartnersInnovation Alliance PartnersCustomersCustomers

Competitors Competitors (who we “benchmark” against)(who we “benchmark” against)

Strategic Initiatives Strategic Initiatives Product Portfolio Product Portfolio (LineEx v. Leap)(LineEx v. Leap)

IS/IT ProjectsIS/IT ProjectsHQ LocationHQ LocationLunch MatesLunch Mates

LanguageLanguageBoardBoard

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

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

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

about: about:

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

Axiom: Never use a vendor who is not in the

top quartiletop quartile (decile?) in their industry on R&D

spending!*

*Inspired by Hummingbird

““Normal” Normal”

= = “o “o forfor 800”800”

““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 random (and therefore diverse) and one random (and therefore diverse) and one

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

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

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

““The best predictor [of The best predictor [of accuracy of prediction] accuracy of prediction]

was fame: The more feted was fame: The more feted by the media, the worse a by the media, the worse a pundit’s accuracy.”pundit’s accuracy.” —Sharon Begley, —Sharon Begley,

“When Should a Process Be Art, Not Science?” by Joseph Hall and Eric “When Should a Process Be Art, Not Science?” by Joseph Hall and Eric Johnson Johnson TimeTime (03.02.09, based in part on the work of Philip Tetlock, who (03.02.09, based in part on the work of Philip Tetlock, who

studied 82,361 predictions by 284 pundits)studied 82,361 predictions by 284 pundits)

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

Companies offering Companies offering work to online work to online

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

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

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

Red Lake Red Lake goldgoldSource: Wikinomics: How Mass

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

“The The Bottleneck Bottleneck

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

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

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

AtAt thethe totop!”p!”

— Gary Hamel/Harvard Business Review

““In Blackburn,In Blackburn, fourfour-y-yearear--oldsolds are making podcasts. In Suffolk, are making podcasts. In Suffolk,

the sometimes tedious and impractical ritual the sometimes tedious and impractical ritual of morning Assembly has been replaced in one of morning Assembly has been replaced in one

school by a news video compiled by pupils; school by a news video compiled by pupils; posting it on YouTube means parents can posting it on YouTube means parents can

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

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

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

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

Mike Bloomberg:Mike Bloomberg:

““Curiosity.”Curiosity.”

““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

Greater Greater than …than …

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

InternetInternet: Economic : Economic Growth Is Driven Growth Is Driven

by by WomenWomen.”.” —Headline,

Economist, April 15, 2006, Leader, page 14

““Women Women areare thethe

majority majority market”market”

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

““The The most most significant variablesignificant variable

inin everyevery sales situation is sales situation is

thethe gendergender of the buyer, of the buyer, and more importantly, how and more importantly, how

the salesperson the salesperson communicates to the communicates to the

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

The Perfect Answer

Jill and Jack buy slacks in black…

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

not via kids)

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

P&GP&G (more than “house cleaner”)

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

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

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

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

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

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

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

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

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

of 13%of 13%.”.” —Economist, April 15

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find

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

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

10.610.6

““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

““CEMEX realized that women are CEMEX realized that women are the kethe keyy drivers of savin drivers of savinggs ins in

[Mexican][Mexican] familiesfamilies.. … They are entrepreneurial … They are entrepreneurial in nature, and they actively participate in the tanda in nature, and they actively participate in the tanda system system [neighborhood groups who pool money and save any [neighborhood groups who pool money and save any

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

building homes]building homes] discovered that 70% of the women who discovered that 70% of the women who saved were saving money in the tanda system to saved were saving money in the tanda system to construct homes for their families. The men in the construct homes for their families. The men in the

society consider their job done if they bring in their society consider their job done if they bring in their paycheck at the end of the day.”paycheck at the end of the day.” —C.K. Prahalad, —C.K. Prahalad, The The

Fortune at the Bottom of the PyramidFortune at the Bottom of the Pyramid, on Lorenzo Zambrano and , on Lorenzo Zambrano and CEMEX, the Mexican company that’s the world’s #3 cement makerCEMEX, the Mexican company that’s the world’s #3 cement maker

10 UNASSAILABLE REASONS WOMEN RULE10 UNASSAILABLE REASONS WOMEN RULE

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

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

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

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

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

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

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

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

Zieseniss de Thuin, Financial Times, 10.03.2006

Where the Where the Money is …Money is …

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““People turning 50 People turning 50

today have today have more more thanthan halfhalf of of their adult life their adult life

ahead of them.”ahead of them.” —Bill

Novelli, 50+: Igniting a Revolution to Reinvent America

7/17/133

2000-2010 Stats

18-44: 18-44: -1%-1%

55+: 55+: ++2121%%(55-64: (55-64: ++4747%%))

44-65: “New “New Customer Customer Majority”Majority” *

*45% larger than 18-43; 60% larger by 2010Source: Ageless Marketing, David Wolfe & Robert Snyder

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

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

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

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

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

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

yyearsears.. We have arrived! We have arrived!

No “Anger No “Anger Management,” Management,”

Please!Please!

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

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

the status quo]the status quo]

“SkunkWorks”/ “ParallelUniverse”

“the 1%1%

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

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

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

products to developing products to developing

others’ others’ inventions at inventions at least half the least half the timetime.. One successful One successful

example Mr. Clean Magic Eraser, example Mr. Clean Magic Eraser, based on a product found in anbased on a product found in an

Osaka market.” Osaka market.” ——FortuneFortune

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

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

pow!! pow!! [Insanely great!][Insanely great!]

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

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

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

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

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

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

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

Scale?

Iron Innovation Equality Law:Iron Innovation Equality Law:

The quality and The quality and quantity and quantity and

imaginativeness of imaginativeness of innovation shall be innovation shall be

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

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

XFXXFX

X X =XFX*=XFX*

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

Never Never waste a waste a lunch!lunch!

????????

% XF % XF lunches*lunches*

*Measure!*Measure!

(Way) Underutilized Lever(Way) Underutilized Lever

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

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

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

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

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

#1#1

““Development can help great Development can help great

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

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

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

Development, Google Development, Google

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

asasppect of businessect of business and yet remains and yet remains

woefully woefully misunderstood.”misunderstood.”

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

Geoff Smart and Randy StreetGeoff Smart and Randy Street

Who?Who?

——The screening interviewThe screening interview——The “Topgrading The “Topgrading Interview”Interview” (story and patterns)(story and patterns)——Focused interviewFocused interview——Reference interview*Reference interview*

*Detailed rituals, goals, follow-up*Detailed rituals, goals, follow-up

Source: Source: Who: The A Method for Hiring, Who: The A Method for Hiring, Geoff Smart and Randy StreetGeoff Smart and Randy Street

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

#1A#1A

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

Employee retention & satisfaction:Employee retention & satisfaction:

OverwhelminOverwhelminggllyy, , based on the based on the first-first-

line manaline managger!er!

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

#1B#1B

2/year 2/year = =

legacy.legacy.

““Leaders Leaders

‘‘dodo’’ people. people.

Period.”Period.” —Anon.

““Leaders Leaders

‘‘SERVESERVE’’ people. people.

Period.”Period.” —inspired by Robert Greenleaf

Tea Tea PowerPower

GiveGive good good tea! tea!

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

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

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

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

future coalition command.”future coalition command.”

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

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

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

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

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

COMPLETE RUPTURE.COMPLETE RUPTURE.

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

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

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

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

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

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

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

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

““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

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

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

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

RReturn eturn OOn n

IInvestment In nvestment In

RRelationshipselationships

ProfitableProfitable

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

ThoughtfulnessThoughtfulness is key to customer retention. is key to customer retention.ThoughtfulnessThoughtfulness is key to employee recruitment is key to employee recruitment and satisfaction.and satisfaction.Thoughtfulness Thoughtfulness is key to brand perception.is key to brand perception.ThoughtfulnessThoughtfulness is key to your ability to look in is key to your ability to look in the mirror—and tell your kids about your job.the mirror—and tell your kids about your job.

““ThoughtfulnessThoughtfulness is free.” is free.”ThoughtfulnessThoughtfulness is key to speeding things up— is key to speeding things up— it reduces friction.it reduces friction.ThoughtfulnessThoughtfulness is key to transparency and is key to transparency and eveneven cost containment—it abets rather than stiflescost containment—it abets rather than stifles truth-telling.truth-telling.

nonenone!!

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

nonenone of THE top 15 of THE top 15

factors determining factors determining PPatient atient

SSatisfaction referred to patient’s atisfaction referred to patient’s health health outcomeoutcome

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

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

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

““KindnesKindness is s is

free.”free.”

TGRTGR

““You You knowknow a a designdesign is is goodgood

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

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

2-cent 2-cent candycandy

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

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

““Experiences Experiences are as distinct are as distinct

from services as from services as services are from services are from goods.”goods.” —Joe Pine & Jim Gilmore, The

Experience Economy: Work Is Theatre & Every Business a Stage

<TG<TGWWvs.vs.

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

Hypothesis:Hypothesis: DESIGNDESIGN is is the pthe princirincippalal

differencedifference between between lovelove

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

IBIBMM

““M” = M” = $0$0

IBIBMM: : $55B*$55B*

*Also HP-EDS*Also HP-EDS

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

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

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

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

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

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

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

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

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

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

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

HuHuggee:: Customer

SatisfactionSatisfaction versus Customer

SuccessSuccess

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

Customer Success/ Customer Success/ Gamechanging Gamechanging

SolutionsSolutions

ServicesServicesGoodsGoods

Raw Materials Raw Materials

The RealThe Real Deal Deal

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

48 Things That 48 Things That MatterMatter

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

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

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

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

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

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

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

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

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

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

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

DifficultDifficult Times … Times …

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

anxious to win”anxious to win”

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

The greatest dangerThe greatest dangerfor most of usfor most of us

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

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

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

Michelangelo