tom peters & strategy

Conrad Conrad Hilton …Hilton …

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

was asked, was asked, “What was the most important lesson you’ve learned in you

long and distinguished career?” His immediate His immediate

answer …answer …

““remember remember to tuck the to tuck the

shower curtain shower curtain inside the inside the bathtubbathtub””

““Execution Execution isis strategy.”strategy.”

—Fred Malek—Fred Malek

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

maneuvers; the simplest maneuvers; the simplest are the best and common are the best and common

sense is fundamental. From sense is fundamental. From which one might wonder which one might wonder how it is generals make how it is generals make

blunders; blunders; it is because theit is because theyy trtryy to be clever to be clever.”.” —Napoleon—Napoleon

Tom Peters’Tom Peters’

Excellence.Excellence.Always.Always.

Mini-MASTER/5 November 2009Mini-MASTER/5 November 2009(PP available to download at tompeters.com)(PP available to download at tompeters.com)

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

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

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

andand “Verdana”“Verdana”

““Excellence …Excellence … can be obtained if you:can be obtained if you:

... care more than others think... care more than others think is wise;is wise; ... risk more than others think ... risk more than others think is safe;is safe; ... dream more than others think ... dream more than others think is practical;is practical; ... expect more than others think ... expect more than others think is possible.”is possible.”

Source: Anon.Source: Anon. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM) (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)

The greatest dangerThe greatest dangerfor most of usfor most of us

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

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

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

MichelangeloMichelangelo

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

““Strive for Strive for Excellence. Excellence.

Ignore Ignore success.”success.” —Bill Young, race

car driver (courtesy Andrew Sullivan)

““If a man is called to be a street If a man is called to be a street sweeper, he should sweep streets sweeper, he should sweep streets even as Michelangelo painted, or even as Michelangelo painted, or Beethoven composed music, or Beethoven composed music, or Shakespeare wrote poetry. He Shakespeare wrote poetry. He should sweep streets so well should sweep streets so well

that all the hosts of heaven and that all the hosts of heaven and earth will pause to say, here livedearth will pause to say, here lived

a great street sweeper who did his a great street sweeper who did his job well.” job well.” —Martin Luther King Jr.—Martin Luther King Jr.

The failure to The failure to pursue pursue

EXCELLENCEEXCELLENCE is is incomprehensible incomprehensible

to me.to me.

14,00014,00020,00020,000

14,00014,00020,00020,000

3030

14,000/14,000/eeBayBay20,000/Amazon20,000/Amazon3030/Craigslist*/Craigslist*

*Lockheed “Skunk Works,” 125 vs. 5,000(??)*Lockheed “Skunk Works,” 125 vs. 5,000(??)

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

skin a cat!*skin a cat!**Every project*Every project REQUIRES REQUIRES (if you’re smart) an outside (if you’re smart) an outside look by one/some Seriously Weird Cat/s—in pursuit oflook by one/some Seriously Weird Cat/s—in pursuit of

a whacked-out option. To considera whacked-out option. To consider

““Insanely Insanely Great”Great”

Steve JobsSteve Jobs

““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

““Radically Radically thrilling”thrilling”

BMW

““Let us create Let us create such a building such a building

that future that future generations will generations will

take us for take us for lunatics.”lunatics.” —the church hierarchs at Seville—the church hierarchs at Seville

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

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

considered the considered the only ones who only ones who do what you do what you

dodo.”.” —Jerry Garcia—Jerry Garcia

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

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

—Hajime Mitarai, Canon—Hajime Mitarai, Canon

19771977

MBWMBWAA

19821982

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

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

““Breakthrough” 82*Breakthrough” 82*

People! People! CustomersCustomers

! ! Action! Action! Values! Values!

**In Search of ExcellenceIn Search of Excellence

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

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

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

relationships)relationships)

““The 7-S Model”The 7-S Model”

StrategyStrategyStructureStructureSystemsSystems

StyleStyleSkillsSkillsStaffStaff

Super-ordinate goalSuper-ordinate goal

““The 7-S Model”The 7-S Model”

“Hard S“Hard Sss”” (Strategy, Structure, Systems)(Strategy, Structure, Systems)

“Soft S“Soft SSS”” (Style, Skills, Staff, Super-ordinate goal)(Style, Skills, Staff, Super-ordinate goal)

““If I could have chosen not to tackle the IBM culture If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of comparison, changing the attitude and behaviors of

hundreds of thousands of people is very, very hard.hundreds of thousands of people is very, very hard.

[Yet] I came to see in my [Yet] I came to see in my time at IBM that culture time at IBM that culture

isn’t just one aspect of the isn’t just one aspect of the

game game ——it is the it is the gamegame.”.” —Lou Gerstner,—Lou Gerstner,

Who Says Elephants Can’t DanceWho Says Elephants Can’t Dance

“… “… it is it is the the

game.”game.”

3030--

fold!fold!

Ken Kizer/VA 1997: Ken Kizer/VA 1997: “culture of cover-up “culture of cover-up that pervades healthcare” that pervades healthcare”

“Patient Safety Event Registry”“Patient Safety Event Registry”

… “looking for systemic solutions, … “looking for systemic solutions, not not seeking to fix blameseeking to fix blame on individuals on individuals

except in the most egregious cases. The good news except in the most egregious cases. The good news

was awas a thirtthirtyy-fold -fold increaseincrease in the number of medical in the number of medical

mistakes and adverse events that got reported.” mistakes and adverse events that got reported.” “ “National Center for Patient Safety Ann Arbor”National Center for Patient Safety Ann Arbor”

ExIn*: 1982-2002/Forbes.comExIn*: 1982-2002/Forbes.com

DJIA: $10,000 yields DJIA: $10,000 yields $85,000$85,000 EI: $10,000 yields EI: $10,000 yields $140,050$140,050

*Excellence Index/Basket of 32 publicly traded stocks*Excellence Index/Basket of 32 publicly traded stocks

MP:MP: “Get the strategy “Get the strategy right, the rest will right, the rest will take care of itself.”take care of itself.”

TP:TP: “Get the people and “Get the people and execution right, execution right, the strategy willthe strategy will take care of itself.” take care of itself.”

InternalInternal organizational organizational excellence = excellence =

Deepest “Blue Deepest “Blue Ocean”Ocean”

**Internal Internal organizational organizational excellence = excellence =

““BrandBrand insideinside””

B(I) > B(O)B(I) > B(O)

20072007SiberiaSiberia

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

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

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

20072007SydneSydne

yy

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

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

… … no less than no less than CathedralsCathedrals

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

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

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

““We are a We are a ‘Life ‘Life

Success’ Success’ Company.”Company.”

Dave Liniger, founder, RE/MAX

““No matter what the No matter what the situation, situation, [the great manager’s][the great manager’s] first first

resrespponse is alwaonse is alwayys to think s to think about the individual about the individual

concerned and how thinconcerned and how thinggs s can be arrancan be arrangged to ed to helhelpp that that

individual exindividual expperience erience successsuccess.”.” —Marcus Buckingham, —Marcus Buckingham,

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

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

against tasks. Leadership against tasks. Leadership

focuses on people. focuses on people. MMyy definition of a leader definition of a leader

is someone who is someone who helhelpps s ppeoeopple le

succeedsucceed.”.” —Carol Bartz, Yahoo!—Carol Bartz, Yahoo!

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

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

they’ve dreamed of they’ve dreamed of beingbeing.”.” —Robert Altman, Oscar acceptance —Robert Altman, Oscar acceptance

speechspeech

The Dream ManagerThe Dream Manager —Matthew Kelly—Matthew Kelly

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

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

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

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

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

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

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

customers.”customers.”

Thank you Peter Drucker/AIMThank you Peter Drucker/AIM

Our goal is to serve our customers brilliantly Our goal is to serve our customers brilliantly and profitably over the long haul.and profitably over the long haul.

Serving our customers brilliantly and profitably Serving our customers brilliantly and profitably over the long haul is a product of brilliantly over the long haul is a product of brilliantly serving, over the long haul, the people who serving, over the long haul, the people who

serve the customer.serve the customer.Hence, our job as leaders—the alpha and the Hence, our job as leaders—the alpha and the

omega and everything in between—is abetting omega and everything in between—is abetting the sustained growth and success and the sustained growth and success and

engagement and enthusiasm and commitment engagement and enthusiasm and commitment to Excellence of those, one at a time, who to Excellence of those, one at a time, who

directly or indirectly serve the ultimate directly or indirectly serve the ultimate customer.customer.

Source:Source: The Little BIG Things: 163 Ways to Pursue EXCELLENCE The Little BIG Things: 163 Ways to Pursue EXCELLENCE

We—leaders of every stripe—are in the “Human We—leaders of every stripe—are in the “Human Growth and Development and Success and Growth and Development and Success and

Aspiration to Excellence business.”Aspiration to Excellence business.”““We” [leaders] only grow when “they” [each and We” [leaders] only grow when “they” [each and

every one of our colleagues] are growing.every one of our colleagues] are growing.““We” [leaders] only succeed when “they” [each We” [leaders] only succeed when “they” [each and every one of our colleagues] are succeeding.and every one of our colleagues] are succeeding.

““We” [leaders] only energeticallyWe” [leaders] only energetically march toward Excellence when “they” [each and march toward Excellence when “they” [each and

every one of our colleagues] are energetically every one of our colleagues] are energetically marching toward Excellence.marching toward Excellence.

Period.Period.

Source:Source: The Little BIG Things: 163 Ways to Pursue EXCELLENCE The Little BIG Things: 163 Ways to Pursue EXCELLENCE

#10#10

““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)

““The The ppath to a ath to a hostmanshihostmanshipp culture culture

pparadoxicallaradoxicallyy does not does not ggo through the o through the gguest. In fact it uest. In fact it wouldn’t be totallwouldn’t be totallyy wron wrongg to say that the to say that the gguest has uest has

nothinnothingg to do with it to do with it.. True hostmanship leaders focus on True hostmanship leaders focus on their employees. What drives exceptionalism is finding their employees. What drives exceptionalism is finding

the right people and getting them to love their work and the right people and getting them to love their work and see it as a passion. ... The guest comes into the picture see it as a passion. ... The guest comes into the picture

only when you are ready to ask, ‘only when you are ready to ask, ‘Would Would yyou ou pprefer to starefer to stayy at a hotel where the staff love their work or where at a hotel where the staff love their work or where

manamanaggement has made customers its hiement has made customers its higghest hest ppriorityriority?’”?’”

““We went through the hotel and made a ... We went through the hotel and made a ... ‘consideration ‘consideration renovation.’renovation.’ Instead of redoinInstead of redoingg bathrooms, dinin bathrooms, diningg rooms, rooms,

and and gguest rooms, we uest rooms, we ggave emave empploloyyees new uniforms, ees new uniforms, boubougght flowers and fruit, and chanht flowers and fruit, and changged colorsed colors.. Our focus Our focus

was totally on the staff. They were the ones we wanted to was totally on the staff. They were the ones we wanted to make happy. We wanted them to wake up every morning make happy. We wanted them to wake up every morning

excited about a new day at work.”excited about a new day 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..

#11#11

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

Luiza Helena, Luiza Helena, Magazine Luiza*Magazine Luiza*

*Wegmans*Wegmans

““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

#12#12

““Leaders Leaders

‘‘dodo’’ people. people.

Period.”Period.” —Anon.

LeadershipLeadership is a sacred is a sacred

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

#13#13

TP: TP: “How to flush

$500,000 down

the toilet in one easy

lesson!!”

< CAPEX< CAPEX> People!> People!

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

#14#14

20092009New DelhiNew Delhi

““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 … three three peoplepeople … whose growth you’ve … whose growth you’ve

most contributed to. Please explain where they were at the most contributed to. Please explain where they were at the beginning of the year, where they are today, and where they are beginning of the year, where they are today, and where they are

heading in the next 12 months. Please explain in painstaking detail heading in the next 12 months. Please explain in painstaking detail your development strategy in each case. Please tell me your your development strategy in each case. Please tell me your

biggest development disappointment—looking back, could you or biggest development disappointment—looking back, could you or would you have done anything differently? Please tell me about 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. Whatyears. What are the ‘three big things’ you’ve learned about helping people are the ‘three big things’ you’ve learned about helping people

grow along the way.”grow along the way.”

2/year 2/year = =

legacy.legacy.

#15#15

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

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

asasppect of ect of businessbusiness and yet and yet

remains woefully remains 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

““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

#16#16

““I can’t tell I can’t tell yyou how manou how manyy times we times we ppassed uassed upp hotshots for hotshots for gguuyys we s we thouthougght were better ht were better ppeoeopplele, and , and

watched our guys do a lot better than watched our guys do a lot better than the big names, not just in the the big names, not just in the

classroom, but on the field—and, classroom, but on the field—and, naturally, after they graduated, too. naturally, after they graduated, too.

Again and again, the blue chips faded Again and again, the blue chips faded out, and our little up-and-comers out, and our little up-and-comers clawed their way to all-conference clawed their way to all-conference

and All-America teams.”and All-America teams.” —Bo Schembechler —Bo Schembechler (and John Bacon), “Recruit for Character,” (and John Bacon), “Recruit for Character,”

Bo’s Lasting LessonsBo’s Lasting Lessons

#17#17

#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

Capital Asset ICapital Asset I

**Selecting and training and**Selecting and training and mentoring one’s pool of front- mentoring one’s pool of front- line managers can be a “Core line managers can be a “Core Competence” of surpassing Competence” of surpassing strategic importance. strategic importance.**Put under a microscope every**Put under a microscope every attribute of the cradle-to- attribute of the cradle-to- grave process of building the grave process of building the capability of our cadre of capability of our cadre of front-line managers. front-line managers.

Capital Asset IICapital Asset II

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?

#18#18

1.1. HiringHiring2.2. Front-line Front-line Supervisor Supervisor Development Development3.3. Promoting Promoting

#19#19

““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 rank] Link [rather than rank]

workers; workers; favor interactive-collaborative leadership favor interactive-collaborative leadership style [empowerment beats top-down decision style [empowerment beats top-down decision

making];making]; sustain fruitful collaborations; comfortable sustain fruitful collaborations; comfortable with sharing information; with sharing information; see redistribution of power see redistribution of power

as victory, not surrenderas victory, not surrender; favor multi-dimensional ; favor multi-dimensional feedback; feedback; value technical & interpersonal skills, value technical & interpersonal skills, individual & group contributions equally;individual & group contributions equally; readily readily

accept ambiguity; accept ambiguity; honor intuition as well ashonor intuition as well as pure “rationality”; pure “rationality”; inherently flexible; inherently flexible; appreciate appreciate

cultural diversitycultural diversity.. —Judy B. Rosener, —Judy B. Rosener, America’s Competitive Secret: Women ManagersAmerica’s Competitive Secret: Women Managers

Lawrence A. Pfaff & Assoc.Lawrence A. Pfaff & Assoc.

— 2 Years, 941 mgrs (672M, 269F);— 2 Years, 941 mgrs (672M, 269F); 360º feedback 360º feedback — — Women: better in 20 of 20 Women: better in 20 of 20 categories; 15 of 20 with statistical categories; 15 of 20 with statistical significance, incl. decisiveness, significance, incl. decisiveness, planning, setting stds.)planning, setting stds.) —— “Men are not rated significantly “Men are not rated significantly higher by any of the raters in anyhigher by any of the raters in any of the areas measured.” (LP) of the areas measured.” (LP)

““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 —Aude

Zieseniss de Thuin, Women’s Forum for the Economy and Society Zieseniss de Thuin, Women’s Forum for the Economy and Society

#20#20

““You must You must bebe

the change you the change you wish to see in the wish to see in the

world.”world.”GandhiGandhi

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

—Samuel Taylor Coleridge

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

enthusiasm.”enthusiasm.”

—Ben Zander

Half-full Cups:Half-full Cups: “[Ronald “[Ronald Reagan] radiated an Reagan] radiated an

almost almost transcendent transcendent

happiness.” happiness.” —L ou Cannon —L ou Cannon

““Mandela, a model host [in his prison hospital room] smiled grandly, Mandela, a model host [in his prison hospital room] smiled grandly, put [Justice Minister Kobie] Coetzee at his ease, and almost put [Justice Minister Kobie] Coetzee at his ease, and almost

immediately, to their quietly contained surprise, prisoner and jailer immediately, to their quietly contained surprise, prisoner and jailer

found themselves chatting amiably. …found themselves chatting amiably. … [[It had mostlIt had mostlyy] to ] to do with boddo with bodyy lan langguauagge, with the ime, with the imppact act

Mandela’s manner had on Mandela’s manner had on ppeoeopple he le he met. First there was his erect met. First there was his erect pposture. osture.

Then there was the waThen there was the wayy he shook hands. he shook hands. The effect was both reThe effect was both reggal and al and

intimidatinintimidatingg, were it not for Mandela’s , were it not for Mandela’s warm warm ggaze and his biaze and his bigg, eas, easyy smile smile.. … …

Coetzee was surprised by Mandela’s willingness to talk in Afrikaans, his Coetzee was surprised by Mandela’s willingness to talk in Afrikaans, his knowledge of Afrikaans history.” Coetzee: “He was a born leader. And knowledge of Afrikaans history.” Coetzee: “He was a born leader. And

he was affable. He was obviously well liked by the hospital staff and yet he was affable. He was obviously well liked by the hospital staff and yet he was respected even though they knew he was a prisoner.”he was respected even though they knew he was a prisoner.”

Source: John Carlin, Source: John Carlin, Playing the Enemy: Nelson Mandela Playing the Enemy: Nelson Mandela and the Game that Made a Nation. (Mandela meets surreptitiously withand the Game that Made a Nation. (Mandela meets surreptitiously with

justice minister after decades in prison—and turns on the charm)justice minister after decades in prison—and turns on the charm)

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

—David D’Alessandro, Career Warfare

#21#21

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

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

1818 secondsseconds

[An obsession with] Listening is ... the ultimate mark[An obsession with] Listening is ... the ultimate mark of of RespectRespect..Listening is ... the heart and soul of Listening is ... the heart and soul of EngagementEngagement..Listening is ... the heart and soul of Listening is ... the heart and soul of KindnessKindness..Listening is ... the heart and soul of Listening is ... the heart and soul of ThoughtfulnessThoughtfulness..Listening is ... the basis for true Listening is ... the basis for true Collaboration.Collaboration.Listening is ... the basis for true Listening is ... the basis for true PartnershipPartnership..Listening is ... a Listening is ... a Team SportTeam Sport..Listening is ... a Listening is ... a Developable Individual SkillDevelopable Individual Skill.* .* (*Though women (*Though women are are farfar better at it than men.) better at it than men.)

Listening is ... the basis for Listening is ... the basis for CommunityCommunity..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures that workJoint Ventures that work..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures thatJoint Ventures that lastlast..Listening is ... the core of Listening is ... the core of effective Cross-functional effective Cross-functional Communication* Communication* (*Which is in turn Attribute #1 of (*Which is in turn Attribute #1 of organizational effectiveness.)organizational effectiveness.)

[cont.][cont.]

Listening is ... the engine of Listening is ... the engine of superior EXECUTION.superior EXECUTION.Listening is ... the key to Listening is ... the key to making the Sale.making the Sale.Listening is ... the key to Listening is ... the key to Keeping the Customer’s BusinessKeeping the Customer’s Business..Listening is ... the engine of Listening is ... the engine of Network development.Network development.Listening is ... the engine of Listening is ... the engine of Network maintenanceNetwork maintenance..Listening is ... the engine of Listening is ... the engine of Network expansionNetwork expansion..Listening is ... Social Networking’s Listening is ... Social Networking’s “secret weapon.”“secret weapon.”Listening is ... Listening is ... Learning.Learning.Listening is ... the Listening is ... the sine qua non of Renewalsine qua non of Renewal..Listening is ... the Listening is ... the sine qua non of Creativitysine qua non of Creativity..Listening is ... the Listening is ... the sine qua non of Innovationsine qua non of Innovation..Listening is ... the core of Listening is ... the core of taking Diverse opinions aboardtaking Diverse opinions aboard..Listening is ... Listening is ... StrategyStrategy..Listening is ... Listening is ... Source #1 of “Value-added.”Source #1 of “Value-added.”Listening is ... Listening is ... Differentiator #1.Differentiator #1.Listening is ... Listening is ... Profitable.*Profitable.* (*The “R.O.I.” from listening is higher than(*The “R.O.I.” from listening is higher than from any other single activity.)from any other single activity.)

Listening is … the bedrock which underpins a Listening is … the bedrock which underpins a Commitment toCommitment to EXCELLENCEEXCELLENCE

*Listening is of the*Listening is of the

utmost … utmost … strategic importance! importance!

*Listening is a proper … *Listening is a proper …

core value ! !

*Listening is … *Listening is … trainable !!

*Listening is a … *Listening is a … profession ! !

Listen = “Profession” =

Study = practice = evaluation =

Enterprise value

ListenListen = Profession = Study = practice = evaluation = = Profession = Study = practice = evaluation = Enterprise value:

"We listen intently "We listen intently to and fully to and fully

engageengage all with whom all with whom

we work."we work."

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

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

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

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

—Sara Lawrence-Lightfoot, Respect

““You can make more You can make more friends in two months friends in two months bbyy becominbecomingg interested in interested in

other other ppeoeopple thanle than you can you can in two years by trying to in two years by trying to

get other people get other people interested in you.”interested in you.” —Dale

Carnegie

#22#22

Questioning, Questioning, the art the art [and [and

“profession”]“profession”] of. of.

#23#23

““The West spent … The West spent … $$2.32.3 trilliontrillion

on foreign aid over the last five decades on foreign aid over the last five decades and still has and still has not not managed to get twelve-managed to get twelve-

cent medicines to children to prevent half of cent medicines to children to prevent half of all malaria deaths. The West spent $2.3 all malaria deaths. The West spent $2.3

trillion and still trillion and still notnot managed to get three managed to get three dollars to each new mother to prevent five dollars to each new mother to prevent five

million child deaths. …million child deaths. … But I and But I and many other like-minded many other like-minded

people keep trying, not to people keep trying, not to abandon aid to the poor, but abandon aid to the poor, but

to to makemake suresure it reachesit reaches themthem.”.”

Easterly, maligned by many, is the arch-Easterly, maligned by many, is the arch-

enemy of the enemy of the Big PlanBig Plan [his [his

capital letters, not mine—for once]capital letters, not mine—for once]

sent from afar; and the vociferous fan of sent from afar; and the vociferous fan of practical activities of those he calls practical activities of those he calls

“Searchers”“Searchers” … who learn … who learn

the ins and outs of the culture, politics and the ins and outs of the culture, politics and local conditions “on the ground” in order to local conditions “on the ground” in order to use local levers and local players, and get use local levers and local players, and get

those 12-those 12-cent medicines to community members. cent medicines to community members.

Read on, “Planners” vs “Searchers” …Read on, “Planners” vs “Searchers” …

““In foreign aid, Planners announce good intentions but don’t In foreign aid, Planners announce good intentions but don’t

motivate anyone to carry them out;motivate anyone to carry them out; Searchers find Searchers find things that work and build on themthings that work and build on them..

Planners apply global blueprints;Planners apply global blueprints; Searchers adapt to Searchers adapt to local conditionslocal conditions.. Planners never hear whether the planned Planners never hear whether the planned

recipients got what they needed;recipients got what they needed; Searchers find out if Searchers find out if the customer is satisfiedthe customer is satisfied.. … … A Planner thinks he A Planner thinks he

already knows the answers; he thinks of poverty as a technical already knows the answers; he thinks of poverty as a technical

engineering problem that his answers will solve.engineering problem that his answers will solve. A Searcher A Searcher admits he doesn’t know the answers in admits he doesn’t know the answers in advance; he hopes to find answers to advance; he hopes to find answers to individual individual pproblems onlroblems onlyy b byy trial and trial and error exerror expperimentationerimentation.. …”…” —William Easterly,—William Easterly,

White Man’s Burden: Why the West’s Efforts to Aid the Rest Have Done White Man’s Burden: Why the West’s Efforts to Aid the Rest Have Done So Much Ill and so Little Good So Much Ill and so Little Good

Derived from the above and more, I have Derived from the above and more, I have extracted a series of “lessons” from the extracted a series of “lessons” from the Easterly book. These implementation lessons Easterly book. These implementation lessons are, in fact, universal:are, in fact, universal:

Lesson (#1 of sooooooo many): Lesson (#1 of sooooooo many): Show up! Show up! (On the ground, where the action—and (On the ground, where the action—and possible implementation—is.)possible implementation—is.)

Lesson: Lesson: Invest in ceaseless study of Invest in ceaseless study of conditions “on the ground”—social andconditions “on the ground”—social and political and historical and systemic.political and historical and systemic.

Lesson:Lesson: ListenListen to the “locals.”to the “locals.”Lesson:Lesson: HearHear the “locals.”the “locals.”

Lesson: Lesson: Talk to the “locals.”Talk to the “locals.”

Lesson: Lesson: Listen to the “locals.”Listen to the “locals.”Lesson: Lesson: Hear the “locals.”Hear the “locals.”



Lesson:Lesson: Listen to the “locals.” Listen to the “locals.”Lesson:Lesson: Hear to the “locals.” Hear to the “locals.”

Lesson:Lesson: Listen to the “locals.” Listen to the “locals.”Lesson:Lesson: Hear to the “locals.” Hear to the “locals.”

Lesson: Lesson: Respect the “locals.”Respect the “locals.”Lesson:Lesson: Empathize with the Empathize with the “locals.”“locals.”

Lesson:Lesson: Have a Have a truly crappy truly crappy

local office, and local office, and otherother

unun-trappings!-trappings!

Lesson: Lesson: Try to blend in, adopting local customs, showingTry to blend in, adopting local customs, showing deference were necessary—almost everywhere;deference were necessary—almost everywhere; and never interrupt the “big man” in front of hisand never interrupt the “big man” in front of his folk, even, or especially, if you think he is 180folk, even, or especially, if you think he is 180 degrees off.degrees off.Lesson:Lesson: Seek out the local leaders’ second cousins, etc,Seek out the local leaders’ second cousins, etc, to gain indirect access overto gain indirect access over their uncle twicetheir uncle twice removed! (Etc & etc.)removed! (Etc & etc.)Lesson:Lesson: Have a truly crappy office, and other Have a truly crappy office, and other un-trappings!un-trappings!Lesson: Lesson: Remember, you do not in fact have the answersRemember, you do not in fact have the answers despite your PhD with,despite your PhD with, naturally, honors, from naturally, honors, from thethe University of Chicago—where you were mentoredUniversity of Chicago—where you were mentored by not one, but two, Nobel Laureates in by not one, but two, Nobel Laureates in economics.economics.Lesson: Lesson: Regardless of the enormity of the problem,Regardless of the enormity of the problem, proceed by trial (manageableproceed by trial (manageable in size) and error,in size) and error, error, error. (Failure motto: “Do it right the firsterror, error. (Failure motto: “Do it right the first time!”time!” Success motto: “Do it right the 37th Success motto: “Do it right the 37th time!” time!” And hustle through thoseAnd hustle through those 37 tries—see the37 tries—see the next slide.)next slide.)

Lesson: Lesson: The process of political-communityThe process of political-community engagement must also be approached asengagement must also be approached as a trial and error learning process.a trial and error learning process.Lesson: Lesson: Always alter the experiment to accommodateAlways alter the experiment to accommodate local needs—the act of apparent local local needs—the act of apparent local modificationmodification per se is critical, as every community leader, inper se is critical, as every community leader, in order for them to accept “ownership” andorder for them to accept “ownership” and demonstrate to their constituents that they are demonstrate to their constituents that they are inin charge, must feel as if they have directly andcharge, must feel as if they have directly and measurably influenced the experiment. measurably influenced the experiment. [See the next four [See the next four

slides.]slides.]

Lesson: Lesson: Growth (the experimental and expansion-Growth (the experimental and expansion- emulation process) must be emulation process) must be organicorganic, and , and proceedproceed at a measured pace—nudged, not hurried.at a measured pace—nudged, not hurried.Lesson: Lesson: Speed kills! (To a point.) By and large, theSpeed kills! (To a point.) By and large, the messiness and “inefficiency” of the local messiness and “inefficiency” of the local politicalpolitical process must be honored.process must be honored.

NothNoth--inging is “scalable”! is “scalable”!

**

Nothing is “scalable”!*Nothing is “scalable”!*

**EverEveryy replication must replication must exude the exude the pperceercepptiontion of of uniuniqquenessueness—even if it —even if it

means a half-step means a half-step backwardsbackwards. . (“It wouldn’t (“It wouldn’t

have worked if we hadn’t done have worked if we hadn’t done it it ourour way.”) way.”)

Lesson: Lesson: Speed kills!Speed kills!Lesson: Lesson: Short-circuiting political Short-circuiting political process kills!process kills!Lesson: Lesson: Premature rollout kills!Premature rollout kills!Lesson: Lesson: Too much publicity-Too much publicity-visibilityvisibility kills!kills!Lesson: Lesson: Too much money kills!Too much money kills!Lesson: Lesson: Too much technology kills!Too much technology kills!

Lesson: Lesson: Outsiders, to be effective, must have genuineOutsiders, to be effective, must have genuine appreciation of and affection for the locals with appreciation of and affection for the locals with whomwhom and for whom they are working!and for whom they are working! Lesson: Lesson: Condescension kills most—said “locals” knowCondescension kills most—said “locals” know unimaginably more about life than well-intentionedunimaginably more about life than well-intentioned “ “do gooders,” young or even, alas, not so young.do gooders,” young or even, alas, not so young.Lesson: Lesson: Progress … MUST … be consistent with “localProgress … MUST … be consistent with “local politics on the ground” in order to raise the oddspolitics on the ground” in order to raise the odds of sustainability.of sustainability.Lesson: Lesson: You will never-ever “fix” “everything at once” You will never-ever “fix” “everything at once” or by the time you “finish”—in our Constitutional or by the time you “finish”—in our Constitutional Convention in 1787, George Washington only gotConvention in 1787, George Washington only got about 60% of what he wanted!about 60% of what he wanted!

Lesson: Lesson: Never forget the atmospherics, such as numerousNever forget the atmospherics, such as numerous celebrations for tiny milestones reached, showering praisecelebrations for tiny milestones reached, showering praise on the local leader and your local cohorts, while youon the local leader and your local cohorts, while you assiduously stand at the back of the crowd—etc.assiduously stand at the back of the crowd—etc.Lesson: Lesson: The experiment has failed until the systems and The experiment has failed until the systems and politicalpolitical rewards, often small, are in place, with Beta tests rewards, often small, are in place, with Beta tests completed, completed, to up the odds of repetition.to up the odds of repetition.Lesson: Lesson: Most of your on-the-ground staff must consist of Most of your on-the-ground staff must consist of respected locals—the de facto or de jure Chairman or CEOrespected locals—the de facto or de jure Chairman or CEO must be a local; you must be virtually invisible.must be a local; you must be virtually invisible.Lesson: Lesson: Spend enormous “pointless” social time with the local Spend enormous “pointless” social time with the local political leaders—in Gulf War I, Norm Schwarzkopf spent hispolitical leaders—in Gulf War I, Norm Schwarzkopf spent his evenings, nearly all of them, drinking tea until 2AM or 3AMevenings, nearly all of them, drinking tea until 2AM or 3AM with the Saudi crown prince; he called it his greatest with the Saudi crown prince; he called it his greatest contribution!contribution!

Lesson: Lesson: Keep your “start up” plan simple and short Keep your “start up” plan simple and short and and filled with question marks in order to allow othersfilled with question marks in order to allow others to have the last wordto have the last word.. (I once did the final draft of a(I once did the final draft of a proposal, making it as flawless as could be. I gave it to my boss,proposal, making it as flawless as could be. I gave it to my boss, pre Microsoft Word, and he proceeded to cut it up and tape the piecespre Microsoft Word, and he proceeded to cut it up and tape the pieces back together, and conspicuously cross out several paragraphs of myback together, and conspicuously cross out several paragraphs of my obviously and labored over brilliant prose that he had agreed to. “Tom,”obviously and labored over brilliant prose that he had agreed to. “Tom,” he said as I recall, “we want the rest of the committee [of important, or he said as I recall, “we want the rest of the committee [of important, or atat least least self-importantself-important folks] to feel as though they are participating and folks] to feel as though they are participating and that you and I are a naïve—not confront them with a beautiful plan thatthat you and I are a naïve—not confront them with a beautiful plan that shouts ‘Don’t you dare alter a word.’”)shouts ‘Don’t you dare alter a word.’”)

Lesson:Lesson: For projects involving children or health or education or For projects involving children or health or education or community development or sustainable small-businesscommunity development or sustainable small-business growth (most projects), women are by far the most growth (most projects), women are by far the most reliablereliable and most central and most indirectly powerful localand most central and most indirectly powerful local players in even the most chauvinist settings—theirplayers in even the most chauvinist settings—their characteristic process of “implementation by indirection”characteristic process of “implementation by indirection” means “life or death” to sustainable project success;means “life or death” to sustainable project success; moreover, the expanding concentric circles of women’smoreover, the expanding concentric circles of women’s traditional networking processes is by far the best way traditional networking processes is by far the best way toto “ “scale up”/expand a program. (Men should not even tryscale up”/expand a program. (Men should not even try to understand what is taking place. Among other things,to understand what is taking place. Among other things, this networking indirection-largely invisible process willthis networking indirection-largely invisible process will seemingly “take forever” by most men’s “action now,seemingly “take forever” by most men’s “action now, skip steps” S.O.P.—and then, from out of the blue, skip steps” S.O.P.—and then, from out of the blue, following an eternity of rambling discussions-on-top-of-following an eternity of rambling discussions-on-top-of- rambling-discussions, you will wake up one fine morningrambling-discussions, you will wake up one fine morning and discover that the thing is done that everything hasand discover that the thing is done that everything has fallen in place “overnight” and that ownership is nearlyfallen in place “overnight” and that ownership is nearly universal. Concomitant imperative; most of your (as anuniversal. Concomitant imperative; most of your (as an outsider) staff should be women, alas,most likely notoutsider) staff should be women, alas,most likely not visibly “in charge.”visibly “in charge.”

For projects involving children For projects involving children or health or education or or health or education or

community development or community development or sustainable small-businesssustainable small-business

growth (most projects), growth (most projects),

womenwomen are by far the are by far the

most reliablemost reliable and most central and most central and most indirectly powerful and most indirectly powerful locallocal players even in the most players even in the most

chauvinist settings. chauvinist settings.

Reminders:Reminders:

Show up!Show up!(Stick around!)(Stick around!)

Listen!Listen!(Listen! Listen! Listen!)(Listen! Listen! Listen!)

Study local conditions!Study local conditions!

Stay in the background!Stay in the background!(Always defer to local leaders—even bad ones.(Always defer to local leaders—even bad ones.

Do your “workarounds” in private.) Do your “workarounds” in private.)

Adapt to local conditions!! Adapt to local conditions!! (No cookie-cutters, please!!)(No cookie-cutters, please!!)

Experiment!Experiment!(Manageable in size.)(Manageable in size.)

(Trial and error, error, error—so, hustle.)(Trial and error, error, error—so, hustle.)(Celebrate the tiniest successes—no such thing as “too much.”)(Celebrate the tiniest successes—no such thing as “too much.”)

Get the “boring” supporting systems-infrastructure in place! Get the “boring” supporting systems-infrastructure in place!

Always: Local politics rules!Always: Local politics rules!(Like it or not.)(Like it or not.)

Nudge. Nudge. (Do not force things because of your schedule.)(Do not force things because of your schedule.)

Women are our “customers,” premierWomen are our “customers,” premier “partners in sustainable implementation.” “partners in sustainable implementation.”

#24#24

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

——Carolyn MarlandCarolyn Marland

Sales > Sales > MarketingMarketing

““Everybody Everybody lives by selling lives by selling something.”something.”

—Robert Louis Stevenson

#25#25

““The The fourfour most most importantimportant 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 do “What do youyou

think?”think?”

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

Tomorrow: How Tomorrow: How many times will you many times will you

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

[Count!] [Practice [Practice

makes better!] [This is a makes better!] [This is a

STRATEGIC skill!]skill!]

From Enemy/Reluctant User From Enemy/Reluctant User to Champion/Savior/Owner:to Champion/Savior/Owner:

The The “one line of code!”

AxiomAxiom

#26#26

““The deepest The deepest human need is human need is

the … the … need to be need to be aappppreciatedreciated.”.”

—William James—William James

““Thank you” lingers on:Thank you” lingers on:

1010 years years

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!]

[Practice makes better!* *The engineer from [Practice makes better!* *The engineer from

Manchester.]] [This is a Manchester.]] [This is a STRATEGIC skill!]skill!]

*appreciation is of the*appreciation is of the

utmost … utmost … strategicstrategic importance! importance!

*appreciation is a proper … *appreciation is a proper …

core core valuevalue ! !

*appreciation is … *appreciation is … trainabletrainable !!

*appreciation is a … *appreciation is a … professionprofession ! !

And the answer is ….And the answer is ….

otisotis

#27#27

““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 Successfu. Even More Successfu.

pausepause

““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 Successfu. Even More Successfu.

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.

*effective “Repair”/Apology is of the*effective “Repair”/Apology is of the


*effective repair is a proper …*effective repair is a proper …


*effective repair is …*effective repair is …

trainabletrainable !!

*effective repair is a …*effective repair is a …

professionprofession ! !

#28#28

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

PROBLEM. THE PROBLEM. 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!

Potlatch.Potlatch.

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

>>>>PerfectionPerfection

Acquire vs maintain*:Acquire vs maintain*:

5X5X*Recession goal: Higher “market share” *Recession goal: Higher “market share” currentcurrent customers customers

#29#29

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 free.”s is free.”

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

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

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

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

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

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

#30#30

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

ThoughtfulnessThoughtfulness is key to is key to customer retentioncustomer retention..ThoughtfulnessThoughtfulness is key to is key to emempploloyyee recruitmentee recruitment and satisfactionand satisfaction..Thoughtfulness Thoughtfulness is key to is key to brand perceptionbrand perception..ThoughtfulnessThoughtfulness is key to your ability to is key to your ability to look in look in the mirrorthe mirror —and tell your kids about your job. —and tell your kids about your job.

““ThoughtfulnessThoughtfulness is is freefree.”.”ThoughtfulnessThoughtfulness is key to is key to ssppeedineedingg thin thinggs us up—p— it it reduces frictionreduces friction..ThoughtfulnessThoughtfulness is key to is key to transtranspparencarency and y and eveneven cost containmentcost containment—it abets rather than stifles—it abets rather than stifles truth-telling.truth-telling.

*Thoughtfulness is of the*Thoughtfulness is of the


*thoughtfulness is a proper … *thoughtfulness is a proper …


*Thoughtfulness is … *Thoughtfulness is … trainabletrainable !!

*Thoughtfulness is a … *Thoughtfulness is a …

professionprofession !!

““Courtesies of a small Courtesies of a small and trivial character are and trivial character are

the ones which strike the ones which strike deepest in the grateful deepest in the grateful

and appreciating heart.”and appreciating heart.”

—Henry Clay

The Real World’s “Little” Rule BookThe Real World’s “Little” Rule Book

Ben/teaBen/teaNorm/teaNorm/tea

DDE/make friendsDDE/make friendsWFBuckley/make friends-help friendsWFBuckley/make friends-help friends

Gust/Suck downGust/Suck downCharlie/poker pal-BOFCharlie/poker pal-BOF

Eddie VII/dance-flatter-mingle-learn the languageEddie VII/dance-flatter-mingle-learn the languageVlad/birthday party of outgroup guy’s wifeVlad/birthday party of outgroup guy’s wife

CIO/finance networkCIO/finance networkERP installer/consult-“one line of code”ERP installer/consult-“one line of code”

GE Energy/make friends risk assessmentGE Energy/make friends risk assessment

GWB/check the invitation listGWB/check the invitation listGHWB/T-notesGHWB/T-notesHank/60 callsHank/60 callsMarkM/5K-5MMarkM/5K-5M

Delaware/show upDelaware/show up

Oppy/snub Lewis StraussOppy/snub Lewis StraussNM/smileNM/smile

-$4.3T/tin ear-$4.3T/tin eartp.com/Big 4-What do you think?tp.com/Big 4-What do you think?

Women/genesWomen/genesBanker/after churchBanker/after church

Total Bloody Mess/Can they pay back the loan?Total Bloody Mess/Can they pay back the loan?

#31#31

problem #1.Opportunity

#1.

X X =XFX*=XFX*

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

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’”**

*See APPENDIX*See APPENDIX

Never Never waste a waste a lunch!lunch!

????????

% XF % XF lunches*lunches*

*Measure! Monthly! Part of evaluation! [The PA’s *Measure! Monthly! Part of evaluation! [The PA’s Club.]Club.]

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

through the through the develodeveloppmentment ofof friendshifriendshippss.”.”

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

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

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

dividends during his future coalition commanddividends during his future coalition command

““Suck down for Suck down for success!” * ** *** **** success!” * ** *** **** ********

*“He [Gust Avarkotos] had become something *“He [Gust Avarkotos] had become something of a legend with these people who manned the of a legend with these people who manned the underbelly of the Agency [CIA],”underbelly of the Agency [CIA],” fromfrom Charlie Charlie Wilson’s War Wilson’s War **Getting to know “the risk guys” [GE Power] **Getting to know “the risk guys” [GE Power] ******“Spend less time with your customer!”“Spend less time with your customer!”

********C(I) > C(E)C(I) > C(E) *****The ATT systems sales exec*****The ATT systems sales exec

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

RReturn eturn OOn n

IInvestment In nvestment In

RRelationshipselationships

(Way) Underutilized Lever(Way) Underutilized Lever

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

Geologists + Geologists + Geophysicists + Geophysicists +

A little bit of love =A little bit of love =

OilOil

Lunch Lunch > SAP/> SAP/OracleOracle

#32#32

FFLLOOWWEERRPPOOWWEERRFFLLOOWWEERRPPOOWWEERR

#33#33

Attending to the Attending to the “Last 98%”: The “Last 98%”: The

New “Management New “Management Science,” or “Hard” Science,” or “Hard”

Is “Soft,” “Soft”Is “Soft,” “Soft” Is “Hard”Is “Hard”

S = ƒS = ƒ ( ___ )( ___ )Success Is aSuccess Is a

Function of …Function of …

S = ƒ(#&DR; -2L, -3L, 4L, I&E)S = ƒ(#&DR; -2L, -3L, 4L, I&E)Success is a function of: Number and depth of relationships Success is a function of: Number and depth of relationships 2, 3, and 4 levels down inside and outside the organization2, 3, and 4 levels down inside and outside the organization

S = ƒ(SD>SU)S = ƒ(SD>SU)Sucking down is more important than sucking up—the idea Sucking down is more important than sucking up—the idea is to have the [your] entire organization working for you.is to have the [your] entire organization working for you.

S = ƒ(#non-FF, #non-FL)S = ƒ(#non-FF, #non-FL)Number of friends not in my functionNumber of friends not in my function

S = ƒ(#XFL/m)S = ƒ(#XFL/m)Number of lunches with colleagues in otherNumber of lunches with colleagues in otherfunctions per monthfunctions per month

S = ƒ(#FF)S = ƒ(#FF)Number of friends in the finance organizationNumber of friends in the finance organization

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.”

S =ƒ(#PK“S =ƒ(#PK“WW”P)”P)S = ƒ(#PK“S = ƒ(#PK“LL”P)”P) # of people you know in the “wrong” places# of people you know in the “wrong” places# people you know in “low” places# people you know in “low” places

??????????????

“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!”

It helps to know people in …It helps to know people in …

highhigh places!”places!”

It helps It helps moremore to know people in … to know people in …

lowlow places!”places!”

Gust Avarkotos’ “boiler room” CIA palsGust Avarkotos’ “boiler room” CIA palsWalter’s “enabler” P.M. Thank You notesWalter’s “enabler” P.M. Thank You notesFlexirent’s XSec’s Customer PA lunchesFlexirent’s XSec’s Customer PA lunches

Anybody’sAnybody’s XSec XSecAnybody’s Anybody’s PAPA

AllAll customer Purchasing Dept receptionists customer Purchasing Dept receptionistsSecy Chaffee’s letter writerSecy Chaffee’s letter writerMcKinsey report prep staffMcKinsey report prep staff

McKinsey research staffMcKinsey research staffAdmiral’s AideAdmiral’s Aide

Congressional Committee staff drafterCongressional Committee staff drafterCongressman’s appropriate LACongressman’s appropriate LA

Anybody Anybody in Financein Finance

#34#34

Skip the mapSkip the map

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

or …or …

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

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

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

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

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

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 comprehensive customer satisfaction scheme for all for all internalinternal customers? customers? (With major consequences for hitting or missing (With major consequences for hitting or missing

the mark.)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?

#35#35

Little =Little =

BIBIGG

““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

#35#35AA

Big carts =Big carts =

1.5X1.5XSource: Wal*MartSource: Wal*Mart

#35#35BB

Bag sizes = New markets:Bag sizes = New markets:

$B$BSource: PepsiCoSource: PepsiCo

#35#35CC

Socks = Socks = 10,00010,000

#35#35DD

6.56.5 feet Away feet Away ==

6.56.5 feet Away feet Away = =

--6363% % “Seconds”*“Seconds”*

*Plate size, etc, first serving dish*Plate size, etc, first serving dish

#35E#35E

““Broken windows”: Clean Broken windows”: Clean the streets, fix the broken the streets, fix the broken windows, ticket the open-windows, ticket the open-beer-can holders, etc, etcbeer-can holders, etc, etc

== Sense of orderSense of order = Crime way down= Crime way down

#35F#35F

““Paint it Paint it white!”white!”

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

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

#35#35GG

Don’t like it?Don’t like it?Don’t pay.Don’t pay.

Source: Granite Rock Co.Source: Granite Rock Co.

#35#35HH

““Power Power Freaks” Move Freaks” Move

Things Around!Things Around!

>100 >100 feet = feet = 100 100

milesmiles

#35I#35I

RoundRound = =

2X/all2X/allx

#35J#35J

#35#35KK

see see greengreen = recover = recover

20% 20% fasterfaster

#35L#35L

80%80%

““Everything matters”Everything matters”

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

Sunstein, etching of fly in the urinalSunstein, etching of fly in the urinal reduces “spillage” by 80%, Schiphol Airportreduces “spillage” by 80%, Schiphol Airport

#35#35MM

(1)(1) Amenable to rapid Amenable to rapid experimentation/experimentation/ failure “free” (PR, $$)failure “free” (PR, $$)(2)(2) Quick to implement/ Quick to implement/ Quick to Roll outQuick to Roll out(3)(3) Inexpensive to Inexpensive to implement/Roll outimplement/Roll out(4)(4) Huge multiplier Huge multiplier(5)(5) An “Attitude” An “Attitude”

(1)(1) Half-day/25 ideasHalf-day/25 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

#36#36

<TG<TGWWand …and …

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

2-cent 2-cent candycandy

““May I clean May I clean your your

glasses, glasses, sir?”sir?”

2,000,0002,000,000

7X.7X. 7:30A-8:00P. 7:30A-8:00P.

F12A.F12A.7:30AM = 7:30AM = 7:15AM.7:15AM.

8:00PM = 8:00PM = 8:15PM.8:15PM.

GriffinGriffin:: Music in the parking Music in the parking lot; professional musicians in lot; professional musicians in

the lobby the lobby (7/week, 3-4hrs/day)(7/week, 3-4hrs/day) ; ;

5 5 pianospianos ; ;

volunteers volunteers (120-140 hrs arts & (120-140 hrs arts &

entertainment per month).entertainment per month).

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

It It BEGINSBEGINS (and (and ENDSENDS) )

in the …in the …

parkingparking lotlot**

*Disney*Disney

““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

CCXXOO**Chief eXperience Officer

First Step (?!)First Step (?!): : Hire a Hire a theater directortheater director, , as a consultant as a consultant

or FTE!or FTE!

““Most executives Most executives have no idea how to have no idea how to

add value to a add value to a market in the market in the

metaphysical world.metaphysical world. But that is what the market

will cry out for in the future. There is no lack of

‘physical’ products to choose between.”

Jesper Kunde, Unique Now ... or Never [on the excellence of Nokia, Nike, Lego, Virgin et al.]

#37#37

3M’s Innovation3M’s Innovation Crisis: How Six Crisis: How Six Sigma Almost Sigma Almost

SmotheredSmothered Its Idea Culture Its Idea Culture

Source: Title/Cover Story, Source: Title/Cover Story, BWBW, 0611.07 (, 0611.07 (“What’s remarkable is “What’s remarkable is how fast a culture can be torn apart,”how fast a culture can be torn apart,” 3M lead scientist; “In 3M lead scientist; “In

an innovation economy, [6 Sigma] is no longer a cure all”/ an innovation economy, [6 Sigma] is no longer a cure all”/BWBW))

““What Rikyu What Rikyu demanded was demanded was not cleanliness not cleanliness alone, but the alone, but the

beautiful and the beautiful and the natural also.”natural also.” —Kakuzo —Kakuzo

Okakura, Okakura, The Book of TeaThe Book of Tea

““Rikyu was watching his son Sho-an as he Rikyu was watching his son Sho-an as he swept and watered the garden path. ‘Not clean swept and watered the garden path. ‘Not clean enough,’ said Rikyu, when Sho-an had finished enough,’ said Rikyu, when Sho-an had finished his task, and bade him try again. After a weary his task, and bade him try again. After a weary hour, the son turned to Rikyu: ‘Father, there is hour, the son turned to Rikyu: ‘Father, there is nothing more to be done. The steps have been nothing more to be done. The steps have been washed for the third time, the stone planters washed for the third time, the stone planters and the trees are well sprinkled with water, and the trees are well sprinkled with water, moss and lichens are shining with a fresh moss and lichens are shining with a fresh

verdure; not a twig, not a leaf have I left on the verdure; not a twig, not a leaf have I left on the ground.’ ‘Young fool,’ chided the tea-master, ground.’ ‘Young fool,’ chided the tea-master, ‘that is not the way a garden path should be ‘that is not the way a garden path should be swept.’ Saying this, Rikyu stepped into the swept.’ Saying this, Rikyu stepped into the garden, shook a tree and scattered over the garden, shook a tree and scattered over the

garden gold and crimson leaves, scraps of the garden gold and crimson leaves, scraps of the brocade of autumn! What Rikyu demanded was brocade of autumn! What Rikyu demanded was not cleanliness alone, but the beautiful and the not cleanliness alone, but the beautiful and the

natural also.”natural also.” —Kakuzo Okakura, —Kakuzo Okakura, The Book of TeaThe Book of Tea

#38#38

All EAll Eqqual ual ExceExcepptt … …

“At Sony we assume that all “At Sony we assume that all products of our competitors products of our competitors

have basically the same have basically the same technology, price, performance technology, price, performance

and features.and features. DesiDesiggn is the n is the onlonlyy thin thingg that that

differentiates one differentiates one pproduct from another roduct from another in the marketin the marketpplacelace.”.” ——

NorioNorio OhgaOhga

““Design is Design is

treated like treated like a religiona religion at at

BMW.”BMW.” —Fortune—Fortune

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

most people’s vocabularies, design most people’s vocabularies, design means veneer. … But to me, nothing means veneer. … But to me, nothing could be further from the meaning could be further from the meaning

of design.of design. Design is the Design is the fundamentalfundamental soulsoul

of a man-made of a man-made creation.”creation.” —Steve Jobs—Steve Jobs

““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

““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 Age of indicative of our era than the iMac. It is to the Age of

Aesthetics what McDonald’s was to the Age of Aesthetics what McDonald’s was to the Age of Convenience or Ford was to the Age of Mass ProductionConvenience 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 quality of enhance the quality of everything the customers see, everything the customers see, touch, hear, smell or taste,’touch, hear, smell or taste,’ writes writes

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

Value Is Remaking Commerce, Culture and ConsciousnessValue Is Remaking Commerce, Culture and Consciousness

Hypothesis:Hypothesis: DESIGNDESIGN is is the pthe principalrincipal

differencedifference between love between love

and hate! and hate!

All Time No.1 (TP)

ZiplocsZiplocs

Wanted: THE THE DESIGNER DESIGNER

OF MY OF MY KRUPPS/ KRUPPS/

CUISINART CUISINART COFFEE-COFFEE-MAKER. MAKER. Major Major

Reward!Reward!

““Business people Business people don’t need to don’t need to ‘understand ‘understand

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

to be designers.”to be designers.” —Roger Martin/Dean/Rotman Management School/—Roger Martin/Dean/Rotman Management School/

University of TorontoUniversity of Toronto

Not optional …Not optional …

CCDDOO**Chief DesignDesign Officer

Message (?????): Message (?????):

Men Men cannotcannot

design for women’s design for women’s needs.needs.

#39#39

450/8450/8

Lisbon/New Biz:Lisbon/New Biz:

WeeksWeeks to …to …

Minutes Minutes (!!!!)(!!!!)

“One bank is currently One bank is currently claiming to … claiming to …

‘leverage its global footprint to provide effective financial solutions for its customers by providing a

gateway to diverse markets.’”

——Charles HandyCharles Handy

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

there tothere to ‘‘helhelpp its its customers customers

wherever thewherever theyy are’are’.”.”

——Charles HandyCharles Handy

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, , Johns Hopkins, 20012001**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 checklistif 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)

**Docs, nurses make own **Docs, nurses make own checklists on whateverchecklists on whatever process-procedure they choose process-procedure they choose**Within **Within weeksweeks, average stay in , average stay in

ICUICU down down 50%50%Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07)Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07)

Beauty. Beauty. Grace. Grace.

Clarity. Clarity. Simplicity.Simplicity.

First Steps: “Beauty Contest”!

1. Select one form/document: invoice, 1. Select one form/document: invoice, airbill, sick leave policy, customer airbill, sick leave policy, customer returns claim form.returns claim form.

2.2. Rate the selected doc on a scale of 1 to Rate the selected doc on a scale of 1 to 10 [1 = Bureaucratica Obscuranta/Sucks; 10 [1 = Bureaucratica Obscuranta/Sucks; 10 = Work of Art] on four dimensions:10 = Work of Art] on four dimensions:

BeautBeauty. y. GraceGrace. . ClaritClarity. y. SimplicitSimplicity.y.3. Re-invent!3. Re-invent!4.4. Repeat, with a new selection,Repeat, with a new selection, every 15 working days.every 15 working days.

The Commerce Bank ModelThe Commerce Bank Model

“every computer at commerce bank has a “every computer at commerce bank has a

specialspecial redred keykey on it that on it that

says, ‘found something stupid that we are says, ‘found something stupid that we are doing that interferes with our ability to service doing that interferes with our ability to service the customer? Tell us about it, and if we agree, the customer? Tell us about it, and if we agree,

we will give you $50.’”we will give you $50.’”

Source: Source: Fans! Not customers. How Commerce Bank Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growthCreated a Super-growth Business in a No-growth

Industry Industry, Vernon Hill & Bob Andelman, Vernon Hill & Bob Andelman

CGRO***CGRO/Chief Grunge Removal Officer*CGRO/Chief Grunge Removal Officer(CDC/Chief of De-complexification)(CDC/Chief of De-complexification)(CAO/Chief Anti-systems Officer)(CAO/Chief Anti-systems Officer)

(CBSD/Chief BS Destruction Officer)(CBSD/Chief BS Destruction Officer)

#40#40

““Not only does standardization Not only does standardization reduce accountability, but it reduce accountability, but it causes workers to switch to causes workers to switch to

autopilot.” “An artistic process autopilot.” “An artistic process has to rely on external has to rely on external

measures of success, like measures of success, like customer feedback.”customer feedback.”

Source: Source: “When Should a Process Be Art, Not Science?”“When Should a Process Be Art, Not Science?” by Joseph Hall and Eric Johnson, by Joseph Hall and Eric Johnson, HBRHBR (03.09) (03.09)

#41#41



WomenWomen.”.”


““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 —Aude

Zieseniss de Thuin, Women’s Forum for the Economy and Society Zieseniss de Thuin, Women’s Forum for the Economy and Society

““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…

““Since Since 19701970, , women have women have

held held twotwo out of out of every every threethree new new jobs created.”jobs created.” —FT,

10.03.2006

““Women Women areare thethe

majority majority market”market”

—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

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 The Power of the PursePurse

“We simply had

stopped being

relevant to women.”

—Kay Napier, SVP Marketing (Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the

Woman Inside the Mom”)

“Women don’t buy

brands. They They join themjoin them.”.”

EVEolution

2.62.6 vs.vs.

2121

““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

““Women speak and hear a Women speak and hear a language of language of connectionconnection and and

intimacyintimacy,, and men speak and hear and men speak and hear a language of status and a language of status and

independence. Men communicate to independence. Men communicate to obtain obtain informationinformation, establish their , establish their statusstatus, and show , and show independenceindependence..

Women communicate to create Women communicate to create relationshipsrelationships, encourage , encourage

interactioninteraction, and exchange , and exchange feelingsfeelings.” .”

—Judy Rosener, America’s Competitive Secret

#42#42

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““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

““Baby-boomer Baby-boomer WomenWomen: The : The Sweetest of Sweetest of

Sweet Spots for Sweet Spots for Marketers”Marketers” —David Wolfe and

Robert Snyder, Ageless Marketing

“Fifty-four years of age has been the highest cutoff point for any marketing initiative I’ve ever

been involved in. Which is pretty weird when you consider age 50 is right about when people who have worked all their lives start to have some money to spend.”

—Marti Barletta, PrimeTime Women

““One particularly puzzling category of youth-One particularly puzzling category of youth-obsession is the highly coveted target of men obsession is the highly coveted target of men 18-34, and it’s always referred to as ‘highly 18-34, and it’s always referred to as ‘highly

coveted category.’ Marketers have been coveted category.’ Marketers have been distracted by men age 18-34 because they are distracted by men age 18-34 because they are getting harder to reach. So what? getting harder to reach. So what? Who wants Who wants

to reach them?to reach them? Beyond fast food and beer, Beyond fast food and beer, they don’t buy much of anything. … The they don’t buy much of anything. … The

theory is that if you ‘get them while they’re theory is that if you ‘get them while they’re

young, they’re yours for life.’young, they’re yours for life.’ What nonsense!”

——Marti Barletta, Marti Barletta, PrimeTime WomenPrimeTime Women

““Marketers attempts at reaching Marketers attempts at reaching those over 50 have been miserably those over 50 have been miserably

unsuccessful.unsuccessful. No market’s No market’s motivations andmotivations and

needs are so needs are so poorlpoorlyy

understoodunderstood.”.” ——Peter Francese, founding publisher, Peter Francese, founding publisher, American DemographicsAmerican Demographics

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 , the most (yes) (yes) ambitiouambitious, the most s, the most

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

&& demandingdemanding, the most , the most service & experience service & experience obsessedobsessed, the most , the most vigorousvigorous, (the , (the leastleast vigorous,) vigorous,) the most the most health conscioushealth conscious, the most , the most femalefemale, the , the

most profoundly important commercial market in the most profoundly important commercial market in the

history of the world—andhistory of the world—and we will be we will be the Center of the Center of yyour our

universe for the next universe for the next twenttwentyy-five -five yyearsears.. We We

have arrived!have arrived!

#43#43

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

UpUp

the Value-added Ladder.the Value-added Ladder.

$55$55BB

And the “M” Stands for … ?

Gerstner’s IBM: “Systems Integrator of choice.”/BW

(“Lou, help us turn ‘all this’ into that long-promised ‘revolution.’ ” )

IBM Global ServicesIBM Global Services* (*Integrated Systems

Services Corp.): $$55B55B

Planetary Rainmaker-in-Chief!

“Palmisano’s strategy is “Palmisano’s strategy is to expand tech’s borders to expand tech’s borders by pushing users—and by pushing users—and

entire industries—entire industries—toward toward radicallradicallyy different different

business modelsbusiness models.. The payoff for IBM

would be access to an ocean of revenue—Palmisano estimates it at $500 billion a year$500 billion a year —that technology

companies have never been able to touch.” —Fortune

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

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

AmericaAmerica”” —Headline/BW/2004

MasterCard MasterCard AdvisorsAdvisors

I. LAN Installation Co. (3%)

II. Geek Squad. (30%.)

III. Acquired by BestBuy.

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

“ ‘“ ‘Architecture’ is Architecture’ is becoming a becoming a

commodity. Winners commodity. Winners will be will be ‘Turnkey ‘Turnkey

Facilities Facilities Management’ Management’ providers.”providers.”

SMPS ExecSMPS Exec

E.g. …E.g. …

UTC/Otis + UTC/Otis + Carrier:Carrier: boxes to boxes to

“integrated “integrated building systems”building systems”

HuHuggee:: Customer

SatisfactionSatisfaction versus Customer

SuccessSuccess

“ ‘“ ‘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 Blohm, The —Jan Gunnarsson & Olle Blohm, The

Welcoming LeaderWelcoming Leader

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

GoodsGoods Raw Materials Raw Materials

The Value-added Ladder/Stuff & TRANSACTIONSTRANSACTIONS

ServicesServicesGoods

Raw Materials

The Value-added Ladder/ OPPORTUNITY-SEEKINGOPPORTUNITY-SEEKING

Customer Success/ Customer Success/ Gamechanging Gamechanging

SolutionsSolutionsServicesGoods

Raw Materials

““The business of selling is not just about matching viable The business of selling is not just about matching viable

solutions to the customers that require them. solutions to the customers that require them. It’s It’s equally about managing the equally about managing the

change process the customer change process the customer will need to go through to will need to go through to

implement the solution and implement the solution and achieve the value promised achieve the value promised

by the solutionby the solution.. One of the key One of the key

differentiators of our position in the market is our attention to differentiators of our position in the market is our attention to managing change and making change stick in our customers’ managing change and making change stick in our customers’

organization.”organization.”* (*E.g.: CRM failure rate/Gartner: * (*E.g.: CRM failure rate/Gartner: 7070%)%) —Jeff Thull, —Jeff Thull, The Prime Solution: Close the Value Gap, The Prime Solution: Close the Value Gap,

Increase Margins, and Win the Complex SaleIncrease Margins, and Win the Complex Sale

The Value-added Ladder/ OPPORTUNITY-SEEKINGOPPORTUNITY-SEEKING

ImImpplementedlemented Gamechanging Gamechanging

SolutionsSolutionsServicesGoods

Raw Materials

#44#44

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 Try it. Try it. Try it. it. Try it. Try it.

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

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

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

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

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

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

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

BloombergBloomberg

““ExperimenExperiment t

fearlessly”fearlessly”Source: BusinessWeek, Type A Organization Strategies/

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

#45#45

Culture of PrototypingCulture of Prototyping

“Effective prototyping may “Effective prototyping may

be be thethe most most valuablevaluable core core competencecompetence an an

innovative organization can innovative organization can hope to have.”hope to have.” —Michael Schrage—Michael Schrage

Think about It!?Think about It!?

Innovation Innovation = = Reaction to the Reaction to the

PrototypePrototype

Source: Michael SchrageSource: Michael Schrage

#46#46

“SkunkWorks”/ “ParallelUniverse”

“the 1%1%

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

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

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

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

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

committed peoplecommitted people can change the can change the

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

Where to look for “Playmates”:

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

Playmate!*Playmate!*Playpen!Playpen!

Prototype!Prototype!

*Can be Client, supplier … as well as Insider*Can be Client, supplier … as well as Insider

#47#47

““Fail .Fail . Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

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

inefficiencinefficiencyy, fast , fast and furious and and furious and

numerous failures.”numerous failures.”—Kevin Kelly—Kevin Kelly

Read This!Read This!

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

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

of Innovationof Innovation

““It is not enough to It is not enough to ‘tolerate’ failure—‘tolerate’ failure—

you must you must

‘celebrate’‘celebrate’ failure.”failure.” —Richard Farson (—Richard Farson (Whoever Makes the Whoever Makes the

Most Mistakes WinsMost Mistakes Wins))

We learn from our We learn from our failures. failures. PeriodPeriod.* Failure .* Failure to to acknowledge acknowledge failure failure

is a fatal disease. is a fatal disease. TreatingTreating failure like a failure like a

disease is a fatal disease is a fatal disease.disease.

*Doctors, soldiers, pilots, musicians, etc.*Doctors, soldiers, pilots, musicians, etc.

““In business, you In business, you rewardreward people for taking people for taking risksrisks..

When it When it doesn’tdoesn’t workwork outout you you ppromoteromote them-because them-because they were willing to try new they were willing to try new

things. If people tell me things. If people tell me they skied all day and never they skied all day and never fell down, I tell them to tryfell down, I tell them to try

a different mountain.” a different mountain.” —Michael Bloomberg (—Michael Bloomberg (BWBW/0625.07)/0625.07)

““RewardReward excellent failures.

PunishPunish mediocre successes.”

Phil Daniels, Sydney exec

#48#48

1/4,0001/4,000

““You miss You miss

100100%%

of the shots of the shots you never you never

take.”take.” —Wayne—Wayne GretzkyGretzky

#49#49

““Some people look for Some people look for things that went wrong things that went wrong

and try to fix them. I and try to fix them. I look for look for things that things that

went rightwent right,, and try to and try to build off them.”build off them.” —Bob Stone (Mr

ReGo)

““Somewhere in your Somewhere in your organization, groups of organization, groups of

people are people are alreadalreadyy doin doingg thinthinggs differentls differentlyy and and

better. To create lasting better. To create lasting change, find these areas change, find these areas of positive deviance and of positive deviance and

fan the flamesfan the flames.”.”

—Richard Pascale & Jerry Sternin, “Your Company’s Secret Change Agents,” HBR

““In foreign aid, Planners announce good intentions but don’t In foreign aid, Planners announce good intentions but don’t

motivate anyone to carry them out;motivate anyone to carry them out; Searchers find Searchers find things that work and build on themthings that work and build on them..

Planners apply global blueprints;Planners apply global blueprints; Searchers adapt to Searchers adapt to local conditionslocal conditions.. Planners never hear whether the planned Planners never hear whether the planned

recipients got what they needed;recipients got what they needed; Searchers find out if Searchers find out if the customer is satisfiedthe customer is satisfied.. … … A Planner thinks he A Planner thinks he

already knows the answers; he thinks of poverty as a technical already knows the answers; he thinks of poverty as a technical

engineering problem that his answers will solve.engineering problem that his answers will solve. A Searcher A Searcher admits he doesn’t know the answers in admits he doesn’t know the answers in advance; he hopes to find answers to advance; he hopes to find answers to individual individual pproblems onlroblems onlyy b byy trial and trial and error exerror expperimentationerimentation.. …”…” —William Easterly,—William Easterly,

White Man’s Burden: Why the West’s Efforts to Aid the Rest Have Done White Man’s Burden: Why the West’s Efforts to Aid the Rest Have Done So Much Ill and so Little Good So Much Ill and so Little Good

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

“A key – perhaps the key – to

leadership is the effective

communication of a story.” —Howard

Gardner, Leading Minds: An Anatomy of Leadership

““StorytellinStorytelling g

is the core is the core of culture.”of culture.”

—Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell

Best Best story story wins!wins!

#50#50

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

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

all its own products to developingall 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 found in example, Mr. Clean Magic Eraser, based on a product found in an Osaka market.”an Osaka market.” ——FortuneFortune

The “We are what we eat”The “We are what we eat”

axiom: axiom: At its core, At its core, evereveryy (!!!) (!!!) relationship-partnership decision relationship-partnership decision

(employee, vendor, customer, etc) is (employee, vendor, customer, etc) is a a stratestrateggicic decision about: decision about:

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

The “We are what we eat”The “We are what we eat”

Axiom II: Axiom II: “Hang out “Hang out with ‘cool’ and thou with ‘cool’ and thou shalT become more shalT become more cool. Hang out with cool. Hang out with ‘dull’ and thou shalT ‘dull’ and thou shalT become more dull. become more dull.

Period.”Period.”

““Don’t Don’t benchmark, benchmark,

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

not evenly distributed” —William Gibson

#51#51

““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

““Freak Freak Fridays”Fridays” —once a —once a

month invite somebody interesting, in any field, to have month invite somebody interesting, in any field, to have lunch with your ganglunch with your gang

““Normal” Normal”

= = “o “o forfor 800”800”

#52#52

“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

#53#53

““d”iversityd”iversity

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

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

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

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

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

Can you pass the …Can you pass the …

“Squint “Squint test”?test”?

#54#54

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

Mike Bloomberg:Mike Bloomberg:

““Curiosity.”Curiosity.”

““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!!

#55#55

““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 goldSource: Source: Wikinomics: How Mass

Collaboration Changes Everything, Don Tapscott & Anthony Williams

#56#56

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]

F(Anger/Passion)F(Anger/Passion) >>>> >>>> f(Pushback f(Pushback from Threatened from Threatened

Fat-cats & Fat-cats & Bureau-crats)Bureau-crats)

#57#57

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.

#58#58

Innovation’s “Fourteen Imperatives”Innovation’s “Fourteen Imperatives”

(1)(1) Try it. Repeat. (“1/40.”) (“R.F.A.”/Ready.Fire. Try it. Repeat. (“1/40.”) (“R.F.A.”/Ready.Fire. Aim.) (Non-Linear!)Aim.) (Non-Linear!)

Prototype it./MTTP (Mean Time To Prototype.)/(Inno. =Prototype it./MTTP (Mean Time To Prototype.)/(Inno. = Reaction Reaction to Proto.)to Proto.)

(2)(2) Celebrate Celebrate failure. failure. ““Whoever makes the most mistakes wins.”Whoever makes the most mistakes wins.” “ “Fail. Fail again. Fail better.”Fail. Fail again. Fail better.” “ “Reward excellent failures. Punish mediocre successes.”Reward excellent failures. Punish mediocre successes.”

(3) Decentralize.Decentralize.(4)(4) Parallel Universe. Parallel Universe. (5)(5) “Hang Out” Axiom. (Hang “cool” = More “Hang Out” Axiom. (Hang “cool” = More cool. Dull = Dull.)cool. Dull = Dull.)(6)(6) “d”iversity. ( “d”iversity. (EveryEvery dimension.) dimension.)(7)(7) Co-invent with outsiders./ Co-invent with outsiders./EntwinedEntwined with with outsiders. outsiders. (Including “Crowdsourcing.”)(Including “Crowdsourcing.”)

Innovation’s “Fourteen Imperatives”Innovation’s “Fourteen Imperatives”

(8)(8) “Strategic”“Strategic” Listening = Core competence. Listening = Core competence. (9)(9) Hire and promote 100% innovators. Hire and promote 100% innovators. Innovator’s characteristic = Innovator.Innovator’s characteristic = Innovator. Innovator’s characteristic = Angry. (Anger > Blowback.)Innovator’s characteristic = Angry. (Anger > Blowback.) CEO=Innovation “bias.”CEO=Innovation “bias.”

(10)(10) XFX/Cross-functional Excellence!! (#1??) XFX/Cross-functional Excellence!! (#1??)(11)(11) Chief Complexity & Systems Destruction Chief Complexity & Systems Destruction Officer.Officer.(12)(12) R&D Equality. R&D Equality. All functions equal. (VA centerpiece./All functions equal. (VA centerpiece./AllAll staff staff VA-meisters.) VA-meisters.)

(13)(13) Fun! Self-deprecating! Fun! Self-deprecating!(14)(14) Good luck! (Entropy rules.) (Major Good luck! (Entropy rules.) (Major acquisition = Dumb.)acquisition = Dumb.)

(NB: All these things work except when they don’t.)(NB: All these things work except when they don’t.)

#59#59

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?

#60#60

4/404/40

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

The True Logic* of Decentralization:

6 divisions = 6 “tries”6 divisions = 6 “tries”

6 divisions = 6 6 divisions = 6 DIFFERENTDIFFERENT leaders = 6 leaders = 6 INDEPENDENTINDEPENDENT

“tries” = Max probability of “tries” = Max probability of “win”“win”

6 divisions = 6 6 divisions = 6 veryvery DIFFERENT DIFFERENT leaders = 6 leaders = 6 veryvery INDEPENDENT INDEPENDENT

“tries” = Max probability of “tries” = Max probability of ““far outfar out”/””/”3-sigma3-sigma”” “win” “win”

*“Driver”: Law of Large #s

“Best practice” = Best practice” =

ZEROZERO Standard Standard DeviationDeviation

““Parallel Parallel Universe” …Universe” … China!!!!!!!China!!!!!!!

“‘Decentralization’ is not a piece of paper. It’s not me. It’s either in

your heart, or not.”

—Brian Joffe/BIDvest

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

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

—Caspian Woods, small biz owner

““Centralization” vs. Centralization” vs. “Decentralization” = “Decentralization” =

EverythingEverything

Institute of Public Administration, last question …Institute of Public Administration, last question …

Centralization vs Decentralization = Centralization vs Decentralization = EVERYTHING(Business, government, child-rearing)(Business, government, child-rearing)

Jefferson vs Hamilton (D.C. vs “states rights”)Jefferson vs Hamilton (D.C. vs “states rights”)Nelson, Grant: simple-clear-brief orders, then lots of leewayNelson, Grant: simple-clear-brief orders, then lots of leeway

Ike (and CEO Koppers): plan like hell and burn the plan (literally)Ike (and CEO Koppers): plan like hell and burn the plan (literally)Ceaselessly talk through the values, then enormous space withinCeaselessly talk through the values, then enormous space within

Bossidy: 2-page strategy (pre-Welch, strategy doc was budget doc)Bossidy: 2-page strategy (pre-Welch, strategy doc was budget doc)Katrina: USCG (“history of trusting their captains”) vs US NavyKatrina: USCG (“history of trusting their captains”) vs US Navy

Rommel on Americans in North AfricaRommel on Americans in North AfricaNo autonomy, no resilience (Yunus: “We’re all entrepreneurs”)No autonomy, no resilience (Yunus: “We’re all entrepreneurs”)

CIO; across the hall anti-CIO (Mr Build, Mr Destroy)CIO; across the hall anti-CIO (Mr Build, Mr Destroy)Drucker: “Ninety percent …”Drucker: “Ninety percent …”ICD/Inherent Centralist DriftICD/Inherent Centralist DriftGary Hamel and “sell by” Gary Hamel and “sell by”

“Anthropological analysis,” McKinsey“Anthropological analysis,” McKinseyDegree of staff diversification is also Cent. vs De-centDegree of staff diversification is also Cent. vs De-cent

issue (homogeneity grows over time) issue (homogeneity grows over time)Jim Burke: “No.” (Watson: “never do a System 360 today”)Jim Burke: “No.” (Watson: “never do a System 360 today”)

Norberto Odebrecht and 2Norberto Odebrecht and 2ndnd Law Thermodynamics (Foster’s data) Law Thermodynamics (Foster’s data)Sloan: Dynamic approach, never get it rightSloan: Dynamic approach, never get it right

TP: dynamic approach, never get it right, lean “big time” toward TP: dynamic approach, never get it right, lean “big time” toward decentralization, open warfare on “necessary” systemsdecentralization, open warfare on “necessary” systems

volcanic volcanic struggle!struggle!

Enemy Enemy #1#1

I.C.D.I.C.D.Note 1:Note 1: Inherent/Inevitable/Inherent/Inevitable/Immutable Centralist DriftImmutable Centralist Drift

Note 2: Jim Burke’s 1-word vocabulary: “No.”Note 2: Jim Burke’s 1-word vocabulary: “No.”

“Ninety percent of what we call ‘management’ consists of making it difficult for people to

get things done.” – Peter Drucker– Peter Drucker

Can’t Live Without ‘em,Can’t Live Without ‘em, Can’t live With ‘em Can’t live With ‘em

Office A, Executive Row:Office A, Executive Row: C.I.O.C.I.O.

Office B (Across the hall):Office B (Across the hall): C.S.D.O./ C.S.D.O./ Chief Systems Chief Systems

Destruction Officer Destruction Officer (007 License)(007 License)**

*Chief of Anti-matter; Deputy Chief, Grunge Removal *Chief of Anti-matter; Deputy Chief, Grunge Removal Section; Chief, Crap Accretion Police; Chief, Office of Section; Chief, Crap Accretion Police; Chief, Office of

Bullshit Detection; K.I.S.S. KopsBullshit Detection; K.I.S.S. Kops

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

tion!tion!

““Costco figured out Costco figured out the the bigbig, , simplesimple things things

and and executedexecuted with with total total fanaticismfanaticism.”.”

—Charles Munger, Berkshire Hathaway

““ExecutionExecution is is thethe jobjob of the of the

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

Charan/ Execution: The Discipline of Getting Things Done

“Execution is a

systematic systematic processprocess of rigorously

discussing hows and whats, tenaciously following through, and

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

The Discipline of Getting Things Done

(1)(1) sum of Projects sum of Projects == Goal (“Vision”) Goal (“Vision”)

(2)(2) sum of sum of Milestones =Milestones = project project

(3)(3) rapid Review + rapid Review + Truth-telling = Truth-telling = accountability accountability

““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))

U. S. GrantU. S. Grant

*No interest in grand strategy.*No interest in grand strategy.*Do the thing until it is done.*Do the thing until it is done.*Do not over complicate.*Do not over complicate.*Do the next thing.*Do the next thing.*Pleasure in perseverance per se.*Pleasure in perseverance per se.*Not ask for help or advice.*Not ask for help or advice.*Not complain of difficulties or ask for*Not complain of difficulties or ask for more time or resources more time or resources

McClellan:McClellan: delay; plead for more forces delay; plead for more forcesGrant:Grant: “When do I start? What I want “When do I start? What I want is to advance.” is to advance.”

Source: Josiah Bunting, Source: Josiah Bunting, Ulysses S. GrantUlysses S. Grant

Excellence in Excellence in Execution = Execution =

Deepest Deepest “Blue “Blue

Ocean”Ocean”

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

Mission impossible?Mission impossible?

$36B/’98$36B/’98

minus minus $675M/‘$675M/‘

0707

““Mr Zetsche, Mr Zetsche, head of Chrysler head of Chrysler

from 2000 to from 2000 to 2005, denied he 2005, denied he should take any should take any responsibility forresponsibility for

the U.S. the U.S. carmaker’scarmaker’s

troubles …” troubles …” ——Financial Financial

TimesTimes /05.29.07 /05.29.07

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

salesfolk)salesfolk)

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

““GE has set a GE has set a standard of candor. standard of candor.

… There is no … There is no puffery. … puffery. … There isn’t There isn’t an ounce of denial in an ounce of denial in the placethe place.”.” —Kevin Sharer, CEO

Amgen, on the “GE mystique” (Fortune)

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

DECENTRALIZATIONDECENTRALIZATION..

EXECUTION.EXECUTION.ACCOUTABILITY.ACCOUTABILITY.

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

#61#61

“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, ‘How do I structures, ‘How do I build a small firm for build a small firm for myself?’ The answer myself?’ The answer

seems obviousseems obvious … …

“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How

do I build a small firm for myself?’ The answer seems

obvious: Buy a very Buy a very largelarge

one and just one and just waitwait.”.” —Paul Ormerod, Why Most Things

Fail: Evolution, Extinction and Economics

““Mr. Foster and his McKinsey colleagues Mr. Foster and his McKinsey colleagues collected detailed performance data stretching collected detailed performance data stretching

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

TheTheyy found that found that nonenone ofof

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

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

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

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

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

#62#62

No: People.No: People.No: Product.No: Product.No: Value to customer.No: Value to customer.Yes: Dilution, otherYes: Dilution, other control and share-control and share- owning issues.owning issues.Yes: Scale-as-power.Yes: Scale-as-power.Yes: Market share.Yes: Market share.

Yes: People.Yes: People.Yes: Product.Yes: Product.Yes: Value to Yes: Value to customer.customer.No: Dilution, otherNo: Dilution, other control and share-control and share- owning issues.owning issues.No: Scale-as-power.No: Scale-as-power.No: Market share.No: Market share.

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

that in the space that in the space of two or three of two or three

hours …hours …

““It suddenly occurred to me that in the space It suddenly occurred to me that in the space

of two or three hours …of two or three hours … he he nevernever talked talked about cars.”about cars.”

— —Les WexnerLes Wexner

Did one of ’em ever turn to the other and say: “Wow, I “Wow, I

wonder what wonder what unimaginable new tools, unimaginable new tools, otherwise not otherwise not ppossibleossible, , will be brought forth will be brought forth for for mmyy dau daugghter Alice, ahter Alice, agge e

1717, because, because of this deal?” of this deal?”

#63#63

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

#2 China#2 China

#1 #1 GermanyGermany

Reason!!!Reason!!!

MittelstandMittelstand

Productivity Productivity (Small/All) (Small/All) >>

Productivity (Big)Productivity (Big)(USA-9%/F500)(USA-9%/F500)

(China/1(China/1stst 20 yrs.) 20 yrs.)

2626 = = 7373 – – 4747

#64#64

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

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

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

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

Jim’s Computer ServicesJim’s Computer Services

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

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

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

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

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

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

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

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

Jim’s GroupJim’s Group:: Jim Penman.* Jim Penman.*

1984: Jim’s Mowing. 2006: Jim’s Group. 1984: Jim’s Mowing. 2006: Jim’s Group.

2,600 franchisees2,600 franchisees (Australia, NZ, UK). (Australia, NZ, UK). Cleaning. Dog washing. Handyman. Cleaning. Dog washing. Handyman.

Fencing. Paving. Pool care. Etc.Fencing. Paving. Pool care. Etc.

“People first.” Private. Small staff. Franchisees “People first.” Private. Small staff. Franchisees can leave at will. 0-1 complaint per year is can leave at will. 0-1 complaint per year is

norm; cut bad ones quickly.norm; cut bad ones quickly.

*Ph.D. cross-cultural anthropology; mowing on the side

Source: MT/Management Today (Australia), Jan-Feb 2006

*Basement Systems Inc.*Basement Systems Inc.*Larry Janesky*Larry Janesky**Dry Basement ScienceDry Basement Science (115,000!)(115,000!)

*1990: $0; 2003: $13M; *1990: $0; 2003: $13M; 2007: 2007:

$62,000,000$62,000,000

The Red The Red Carpet Carpet StoreStore

Joel Resnick/Flemington NJ Joel Resnick/Flemington NJ (referenced in (referenced in Fame JunkiesFame Junkies))

etc.etc.

PRSX/ PRSX/ Paragon Paragon Railcar Railcar

Salvage*Salvage**Salvaged railcars into bridges, etc.*Salvaged railcars into bridges, etc.

**Lived in same town all adult lifeLived in same town all adult life**First generation that’s wealthy/First generation that’s wealthy/ no parental supportno parental support**“Don’t “Don’t looklook like millionaires, don’t like millionaires, don’t dressdress like millionaires, don’t like millionaires, don’t eateat like like millionaires, don’t millionaires, don’t actact like millionaires like millionaires””*“Many of the types of businesses [they] are in could be*“Many of the types of businesses [they] are in could be classified as ‘dull-normal.’ [They] are welding contractors, classified as ‘dull-normal.’ [They] are welding contractors, auctioneers, scrap-metal dealers, lessors of portable toilets, auctioneers, scrap-metal dealers, lessors of portable toilets, dry cleaners, re-builders of diesel engines, paving dry cleaners, re-builders of diesel engines, paving contractors …” contractors …”

Source: Source: The Millionaire Next DoorThe Millionaire Next Door,, Thomas Stanley & William Danko Thomas Stanley & William Danko

#65#65

Muhammad Yunus:Muhammad Yunus: ““All human All human beings are entrepreneursbeings are entrepreneurs..

When we were in the caves we were When we were in the caves we were all self-employed . . . finding our food, all self-employed . . . finding our food,

feeding ourselves. That’s where feeding ourselves. That’s where human history began . . . As human history began . . . As

civilization came we suppressed it. We civilization came we suppressed it. We became labor because they stamped became labor because they stamped us, ‘You are labor.’ We forgot that we us, ‘You are labor.’ We forgot that we

are entrepreneurs.”are entrepreneurs.”

Source: Muhammad Yunus/The News Hour—PBS/1122.2006

9494%% of loans to of loans to

……

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

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

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

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

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

program to aid the poor in building homes]program to aid the poor in building homes] discovered that discovered that 70% of the women who saved were saving money in 70% of the women who saved were saving money in

the tanda system to construct homes for their the tanda system to construct homes for their families. The men in the society consider their job families. The men in the society consider their job

done if they bring in their paycheck at the end of the done if they bring in their paycheck at the end of the day.”day.” —C.K. Prahalad, from —C.K. Prahalad, from The Fortune at the Bottom of The Fortune at the Bottom of

the Pyramidthe Pyramid, on , on Lorenzo ZambranoLorenzo Zambrano and CEMEX, the and CEMEX, the Mexican company that’s the world’s #3 cement makerMexican company that’s the world’s #3 cement maker



WomenWomen.”.”


#66#66

““gurugate”: The gurugate”: The Gurus’ fixation with Gurus’ fixation with “the wrong stuff”*“the wrong stuff”*

*Not “they,” but “us.”*Not “they,” but “us.”

Over-rated:Over-rated:

Big companies!Public companies! “Cool” industries!Stability (“Built to last”)!

Famous CEOs!

The “Fabulous Five”:The “Fabulous Five”:

**SMEs!SMEs!**Private companies!Private companies!

**“Dull” industries!“Dull” industries!**Productive churn:Productive churn: Built to Rock the Built to Rock the World! World!**Laudable CEOs!Laudable CEOs!

#67#67

#1 Truthteller …#1 Truthteller …

You = You = Your Your

calendarcalendar***Calendars *Calendars nevernever lielie

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

ThreeThree..

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

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

#68#68

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

‘To-don’t ’‘To-don’t ’

List !”List !”

John Sawhill/Major StrategicJohn Sawhill/Major Strategic

Initiative: Initiative: “What areas should “What areas should the Conservancy focus on the Conservancy focus on

and more important— and more important—

what activities what activities should we stoshould we stopp

doindoing?”g?”Source: Bill Birchard, Source: Bill Birchard, Nature’s Keepers: The Remarkable Story of How The Nature Nature’s Keepers: The Remarkable Story of How The Nature

Conservancy Became the Largest Environmental Organization in the WorldConservancy Became the Largest Environmental Organization in the World

Don’t > Don’t > Do*Do*

* “Don’ting,” systematic, > WILLPOWER* “Don’ting,” systematic, > WILLPOWER

#69#69

““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 change minds To change minds effectively, leaders make effectively, leaders make

particular use of two particular use of two

tools: the tools: the storiesstories that that

they tell and the they tell and the liveslives

that they lead.”that they lead.” —Howard Gardner, —Howard Gardner,

Changing MindsChanging Minds

#70#70

“The The FirstFirst stepstep in a in a ‘dramatic’ ‘dramatic’

‘organizational change ‘organizational change program’ is obvious—program’ is obvious—

dramaticdramatic personal personal changechange!”!” —RG

““How can a high-level How can a high-level leader like _____ be so out leader like _____ be so out

of touch with the truth of touch with the truth about himself? It’s more about himself? It’s more common than you would common than you would

imagine. In fact, the imagine. In fact, the higher up the ladder a higher up the ladder a leader climbs, the less leader climbs, the less

accurate his self-accurate his self-assessment is likely to assessment is likely to be. be. The The pproblem is an roblem is an acute lack of feedbackacute lack of feedback [especially on people [especially on people

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

““Work Work on me on me

first.”first.” —Kerry Patterson,

Joseph Grenny, Ron McMillan and Al Switzler/Crucial Conversations

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

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

distinguishes a superior distinguishes a superior leader.”leader.” —Edie Seashore —Edie Seashore

((Strategy + BusinessStrategy + Business #45) #45)

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

—Marshall Goldsmith—Marshall Goldsmith

#71#71

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

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

#72#72

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

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

GiveGive good good tea! tea!

““In the same bitter winter of 1776 that Gen. George Washington led his beleaguered troops In the same bitter winter of 1776 that Gen. George Washington led his beleaguered troops across the Delaware River to safety, Benjamin Franklin sailed across the Atlantic to Paris to across the Delaware River to safety, Benjamin Franklin sailed across the Atlantic to Paris to

engage in an equally crucial campaign, this one diplomatic. A lot depended on the bespectacled engage in an equally crucial campaign, this one diplomatic. A lot depended on the bespectacled and decidedly unfashionable 70-year-old as he entered the world’s fashion capitol sporting a and decidedly unfashionable 70-year-old as he entered the world’s fashion capitol sporting a

simple brown suit and a fur cap. … simple brown suit and a fur cap. … Franklin’s miracle was that armed Franklin’s miracle was that armed only with his only with his canncannyy personal charm personal charm and reputation as a and reputation as a scientist and philosopher, he was able to cajole a wary scientist and philosopher, he was able to cajole a wary French government into lending the fledgling American French government into lending the fledgling American

nation an enormous fortune.nation an enormous fortune. … The enduring image of Franklin in Paris tends … The enduring image of Franklin in Paris tends to be that of a flirtatious old man, too busy visiting the city’s fashionable salons to pursue to be that of a flirtatious old man, too busy visiting the city’s fashionable salons to pursue

affairs of state as rigorously as John Adams. affairs of state as rigorously as John Adams. When Adams joined Franklin in When Adams joined Franklin in Paris in 1779, he was scandalized by the late hours and Paris in 1779, he was scandalized by the late hours and French lifestyle his colleague had adopted, says [Stacy French lifestyle his colleague had adopted, says [Stacy

Schiff, in A Great Improvisation] Adams was clueless that Schiff, in A Great Improvisation] Adams was clueless that it was through the dropped hints and seemingly offhand it was through the dropped hints and seemingly offhand

remarks at these salons that so much of French remarks at these salons that so much of French diplomacy was conducted.diplomacy was conducted. … Like the Beatles arriving in America, Franklin … Like the Beatles arriving in America, Franklin aroused a fervor—his face appeared on prints, teacups and chamber pots. The extraordinary aroused a fervor—his face appeared on prints, teacups and chamber pots. The extraordinary popularity served Franklin’s diplomatic purposes splendidly. Not even King Louis XVI could popularity served Franklin’s diplomatic purposes splendidly. Not even King Louis XVI could

ignore the enthuisiasm that had won over both the nobility and the bourgeoisie. …”ignore the enthuisiasm that had won over both the nobility and the bourgeoisie. …”

Source: “In Paris, Taking the Salons By Srorm: How the Canny Ben Franklin TalkedSource: “In Paris, Taking the Salons By Srorm: How the Canny Ben Franklin Talked the French into Forming a Crucial Alliance,” the French into Forming a Crucial Alliance,” U.S. News & World ReportU.S. News & World Report, 0707.08, 0707.08

Make Make friends! friends!

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

through the through the develodeveloppmentment ofof friendshifriendshippss.”.”

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

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

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

dividends during his future coalition commanddividends during his future coalition command

““The capacity to develop close and The capacity to develop close and enduring relationships is the mark of enduring relationships is the mark of a leader. Unfortunately, many leaders a leader. Unfortunately, many leaders of major companies believe their job of major companies believe their job is to create the strategy, organization is to create the strategy, organization

structure and organizational structure and organizational processes—then they just delegate processes—then they just delegate

the work to be done, remaining aloof the work to be done, remaining aloof from the people doing from the people doing

the work.”the work.” —Bill George, —Bill George, Authentic LeadershipAuthentic Leadership

““Mandela, a model host [in his prison hospital room] Mandela, a model host [in his prison hospital room] smiled grandly, put [Justice Minister Kobie] Coetzee at smiled grandly, put [Justice Minister Kobie] Coetzee at

his ease, and almost immediately, to their quietly his ease, and almost immediately, to their quietly contained surprise, prisoner and jailer found themselves contained surprise, prisoner and jailer found themselves

chatting amiably. … chatting amiably. … [[It had mostlIt had mostlyy] to do with ] to do with bodbodyy lan langguauagge, with the ime, with the imppact Mandela’s act Mandela’s

manner had on manner had on ppeoeopple he met. First there was le he met. First there was his erect his erect pposture. Then there was the waosture. Then there was the wayy he he shook hands. The effect was both reshook hands. The effect was both reggal and al and

intimidatinintimidatingg, were it not for Mandela’s warm , were it not for Mandela’s warm ggaze and his biaze and his bigg, eas, easyy smile smile.. … Coetzee was … Coetzee was

surprised by Mandela’s willingness to talk in Afrikaans, surprised by Mandela’s willingness to talk in Afrikaans, his knowledge of Afrikaans history.” Coetzee: “He was a his knowledge of Afrikaans history.” Coetzee: “He was a born leader. And he was affable. He was obviously well born leader. And he was affable. He was obviously well

liked by the hospital staff and yet he was respected even liked by the hospital staff and yet he was respected even though they knew he was a prisoner.”though they knew he was a prisoner.”

Source: John Carlin, Source: John Carlin, Playing the Enemy: Nelson Mandela Playing the Enemy: Nelson Mandela and the Game that Made a Nation. (Mandela meets surreptitiously withand the Game that Made a Nation. (Mandela meets surreptitiously with

justice minister after decades in prison—and turns on the charm)justice minister after decades in prison—and turns on the charm)

The Real World’s “Little” Rule BookThe Real World’s “Little” Rule Book

Ben/teaBen/teaNorm/teaNorm/tea

DDE/make friendsDDE/make friendsWFBuckley/make friends-help friendsWFBuckley/make friends-help friends

Gust/Suck downGust/Suck downCharlie/poker pal-BOFCharlie/poker pal-BOF

Eddie VII/dance-flatter-mingle-learn the languageEddie VII/dance-flatter-mingle-learn the languageVlad/birthday party of outgroup guy’s wifeVlad/birthday party of outgroup guy’s wife

CIO/finance networkCIO/finance networkERP installer/consult-“one line of code”ERP installer/consult-“one line of code”

GE Energy/make friends risk assessmentGE Energy/make friends risk assessment

GWB/check the invitation listGWB/check the invitation listGHWB/T-notesGHWB/T-notesHank/60 callsHank/60 callsMarkM/5K-5MMarkM/5K-5M

Delaware/show upDelaware/show up

Oppy/snub Lewis StraussOppy/snub Lewis StraussNM/smileNM/smile

-$4.3T/tin ear-$4.3T/tin eartp.com/Big 4-What do you think?tp.com/Big 4-What do you think?

Women/genesWomen/genesBanker/after churchBanker/after church

Total Bloody Mess/Can they pay back the loan?Total Bloody Mess/Can they pay back the loan?

#73#73

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

““Breakthrough” 82*Breakthrough” 82*

People! People! CustomersCustomers

! ! Action! Action! Values! Values!

**In Search of ExcellenceIn Search of Excellence

“To me business isn’t To me business isn’t about wearing suits or about wearing suits or pleasing stockholders.pleasing stockholders. It’s about being true to It’s about being true to yourself, your ideas and yourself, your ideas and

focusing on the focusing on the essentialsessentials.”.” —Richard Branson

#74#74

AppendixAppendix

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’”

1. It’s our organization to make work—or not. It’s not “them,” the outside 1. It’s our organization to make work—or not. It’s not “them,” the outside world that’s the problem. world that’s the problem. The enemy is us.The enemy is us. Period. Period.2. Friction-free! Dump 90% of “middle managers”—most are advertent or 2. Friction-free! Dump 90% of “middle managers”—most are advertent or inadvertent “power freaks.” We are all—every one of us—in the Friction inadvertent “power freaks.” We are all—every one of us—in the Friction Removal Business, one moment at a time, now and forevermore.Removal Business, one moment at a time, now and forevermore.3. No “stovepipes”! “Stove-piping,” “Silo-ing” is an 3. No “stovepipes”! “Stove-piping,” “Silo-ing” is an Automatic Firing Automatic Firing OffenseOffense. Period. No appeals. (Within the limits of civility, somewhat . Period. No appeals. (Within the limits of civility, somewhat “public” firings are not out of the question—that is, make one and all “public” firings are not out of the question—that is, make one and all aware why the axe fell.)aware why the axe fell.)4.4. Everything Everything on the Web. This helps. A lot. (“Everything” = Big word.)on the Web. This helps. A lot. (“Everything” = Big word.)5. Open access. All available to all. Transparency, beyond a level that’s 5. Open access. All available to all. Transparency, beyond a level that’s “sensible,” is a de facto imperative in a Burn-the-Silos strategy.“sensible,” is a de facto imperative in a Burn-the-Silos strategy.6.6. Project managers rule!! Project managers rule!! Project managers running XF (cross-functional) Project managers running XF (cross-functional) projects are the Elite of the organization, and seen as such and treated as projects are the Elite of the organization, and seen as such and treated as such. (The likes of construction companies have practiced this more or such. (The likes of construction companies have practiced this more or less forever.)less forever.)7. “Value-added Proposition” = Application of integrated resources. (From 7. “Value-added Proposition” = Application of integrated resources. (From the entire supply-chain.) To deliver on our emergent business raison the entire supply-chain.) To deliver on our emergent business raison d’etre, and compete with the likes of our Chinese and Indian brethren, we d’etre, and compete with the likes of our Chinese and Indian brethren, we must co-operate with anybody and everybody “24/7.” IBM, UPS and many, must co-operate with anybody and everybody “24/7.” IBM, UPS and many, many others are selling far more than a product or service that works—many others are selling far more than a product or service that works—the new “it” is pure and simple a product of XF co-operation; “the product the new “it” is pure and simple a product of XF co-operation; “the product isis the co-operation” is not much of a stretch. the co-operation” is not much of a stretch.

8.8. “XF work” is the direct work of leaders! “XF work” is the direct work of leaders!9.9. “Integrated solutions” = Our “Culture.” “Integrated solutions” = Our “Culture.” (Therefore: XF = Our culture.) (Therefore: XF = Our culture.)10. Partner with “best-in-class” only. Their pursuit of Excellence helps us 10. Partner with “best-in-class” only. Their pursuit of Excellence helps us get beyond petty bickering. An all-star team has little time for anything get beyond petty bickering. An all-star team has little time for anything other than delivering on the (big) Client promise.other than delivering on the (big) Client promise.11.11. All functions are created equal! All functions are created equal! All functions contribute equally! All = All functions contribute equally! All = All.All.12. All functions are “PSFs,” Professional Service Firms. 12. All functions are “PSFs,” Professional Service Firms. “Professionalism” is the watchword—and true Professionalism rise above “Professionalism” is the watchword—and true Professionalism rise above turf wars. You are your projects, your legacy is your projects—and the turf wars. You are your projects, your legacy is your projects—and the legacy will be skimpy indeed unless you pass, with flying colors, the legacy will be skimpy indeed unless you pass, with flying colors, the “works well with others” exam!“works well with others” exam!13.13. We are all in sales! We are all in sales! We all (a-l-l) “sell” those Integrated Client Solutions. We all (a-l-l) “sell” those Integrated Client Solutions. Good salespeople don’t blame others for screwups—the Clint doesn’t care. Good salespeople don’t blame others for screwups—the Clint doesn’t care. Good salespeople are “quarterbacks” who make the system work-deliver.Good salespeople are “quarterbacks” who make the system work-deliver.14. We all invest in “wiring” the Client organization—we develop 14. We all invest in “wiring” the Client organization—we develop comprehensive relationships in every part (function, level) of the Client’s comprehensive relationships in every part (function, level) of the Client’s organization. organization. We pay special attention to the so-called “lower levels,” short We pay special attention to the so-called “lower levels,” short on glamour, long on the ability to make things happen at the “coalface.”on glamour, long on the ability to make things happen at the “coalface.”15. We all “live the Brand”—which is Delivery of Matchless Integrated 15. We all “live the Brand”—which is Delivery of Matchless Integrated Solutions which transform the Client’s organization. To “live the brand” is Solutions which transform the Client’s organization. To “live the brand” is to become a raving fan of XF co-operation.to become a raving fan of XF co-operation.

16. We use the word 16. We use the word “partner”“partner” until we want to barf! (Words matter! A lot!) until we want to barf! (Words matter! A lot!)17. We use the word 17. We use the word “team”“team” until we want to barf. (Words matter! A lot!) until we want to barf. (Words matter! A lot!)18. We use the word 18. We use the word “us”“us” until we want to barf. (Words matter! A lot!) until we want to barf. (Words matter! A lot!)19. We obsessively seek Inclusion—and abhor exclusion. We want more 19. We obsessively seek Inclusion—and abhor exclusion. We want more people from more places (internal, external—the whole “supply chain”) people from more places (internal, external—the whole “supply chain”) aboard in order to maximize systemic benefits.aboard in order to maximize systemic benefits.20. Buttons & Badges matter—we work relentlessly at team (XF team) 20. Buttons & Badges matter—we work relentlessly at team (XF team) identity and solidarity. (“Corny”? Get over it.)identity and solidarity. (“Corny”? Get over it.)21.21. All (almost all) rewards are team rewards. All (almost all) rewards are team rewards.22. We keep base pay rather low—and give whopping bonuses for 22. We keep base pay rather low—and give whopping bonuses for excellent team delivery of “seriously cool” cross-functional Client benefits.excellent team delivery of “seriously cool” cross-functional Client benefits.23.23. WE NEVER BLAME OTHER PARTS OF THE ORGANIZATION FOR WE NEVER BLAME OTHER PARTS OF THE ORGANIZATION FOR SCREWUPSSCREWUPS..24. WE TAKE THE HEAT—THE WHOLE TEAM. (For anything and 24. WE TAKE THE HEAT—THE WHOLE TEAM. (For anything and everything.) (Losing, like winning, is a team affair.)everything.) (Losing, like winning, is a team affair.)25.25. “BLAMING” IS AN AUTOMATIC FIRING OFFENSE. “BLAMING” IS AN AUTOMATIC FIRING OFFENSE.26.26. “Women rule.” “Women rule.” Women are simply better at the XF communications Women are simply better at the XF communications stuff—less power obsessed, less hierarchically inclined, more group-team stuff—less power obsessed, less hierarchically inclined, more group-team oriented.oriented.

27. Every member of our team is an honored contributor. “XF project 27. Every member of our team is an honored contributor. “XF project Excellence” is an “all hands” affair.Excellence” is an “all hands” affair.28. We 28. We are are our XF Teams! XF project teams are how we get things done.our XF Teams! XF project teams are how we get things done.29. “Wow Projects” rule, large or small—Wow projects demand by 29. “Wow Projects” rule, large or small—Wow projects demand by definition XF Excellence.definition XF Excellence.30. We routinely attempt to unearth and then reward “small gestures” of 30. We routinely attempt to unearth and then reward “small gestures” of XF co-operation.XF co-operation.31. We invite Functional Bigwigs to our XF project team reviews.31. We invite Functional Bigwigs to our XF project team reviews.32. We 32. We insist insist on Client team participation—from all functions of the Client on Client team participation—from all functions of the Client organization.organization.33. An “Open talent market” helps make the projects “silo-free.” People 33. An “Open talent market” helps make the projects “silo-free.” People want in on the project because of the opportunity to do something want in on the project because of the opportunity to do something memorable—no one will tolerate delays based on traditional functional memorable—no one will tolerate delays based on traditional functional squabbling. squabbling. 34. Flat! Flat = Flattened Silos. Flat = Excellence based on XF project 34. Flat! Flat = Flattened Silos. Flat = Excellence based on XF project outcomes, not power-hoarding within functional boundaries. outcomes, not power-hoarding within functional boundaries. 35. New “C-level”? 35. New “C-level”? We more or less need a “C-level” job titled Chief We more or less need a “C-level” job titled Chief Bullshit Removal Officer.Bullshit Removal Officer. That is, some kind of formal watchdog whose That is, some kind of formal watchdog whose role in life is to make cross-functionality work, and I.D. those who don’t role in life is to make cross-functionality work, and I.D. those who don’t get with the program.get with the program.36.36. Huge (H-U-G-E) co-operation bonuses. Huge (H-U-G-E) co-operation bonuses. Senior team members who Senior team members who conspicuously shine in the “working together” bit are rewarded Big Time. conspicuously shine in the “working together” bit are rewarded Big Time. (A million bucks in one case I know—and a non-cooperating very senior (A million bucks in one case I know—and a non-cooperating very senior was sacked.)was sacked.)

37.37. Get physical!! “Co-location” is the most powerful “culture changer. Get physical!! “Co-location” is the most powerful “culture changer. Physical X-functional proximity is almost a guarantee (yup!) of Physical X-functional proximity is almost a guarantee (yup!) of remarkably improved co-operation—to aid this one needs flexible remarkably improved co-operation—to aid this one needs flexible workspaces that can be mobilized for a team in a flash.workspaces that can be mobilized for a team in a flash.38.38. Ad hoc. Ad hoc. To improve the new “X-functional Culture,” little XF teams To improve the new “X-functional Culture,” little XF teams should be formed on the spot to deal with an urgent issue—they may should be formed on the spot to deal with an urgent issue—they may live for but ten days, but it helps the XF habit, making it normal to be live for but ten days, but it helps the XF habit, making it normal to be “working the XF way.”“working the XF way.”39. “Deep dip.” Dive three levels down in the organization to fill a 39. “Deep dip.” Dive three levels down in the organization to fill a senior role with some one who has been pro-active on the XF senior role with some one who has been pro-active on the XF dimension.dimension.40. Formal evaluations. Everyone, starting with the receptionist, should 40. Formal evaluations. Everyone, starting with the receptionist, should have an important XF rating component in their evaluation.have an important XF rating component in their evaluation.41. Demand XF experience for, especially, senior jobs. The military 41. Demand XF experience for, especially, senior jobs. The military requires all would-be generals and admirals to have served a full tour in requires all would-be generals and admirals to have served a full tour in a job whose only goals were cross-functional. Great idea! a job whose only goals were cross-functional. Great idea! 42. Early project “management” experience. Within days, literally, of 42. Early project “management” experience. Within days, literally, of coming aboard folks should be “running” some bit of a project, coming aboard folks should be “running” some bit of a project, working with folks from other functions—hence, “all this” becomes as working with folks from other functions—hence, “all this” becomes as natural as breathing.natural as breathing.43. “Get ‘em out with the customer.” Rarely does the accountant or 43. “Get ‘em out with the customer.” Rarely does the accountant or bench scientist call one the customer. Reverse that. Give everyone bench scientist call one the customer. Reverse that. Give everyone more or less regular “customer-facing experiences.” One learns quickly more or less regular “customer-facing experiences.” One learns quickly that the customer is not interested in our in-house turf battles!that the customer is not interested in our in-house turf battles!

44. Put “it” on the–every agenda. XF “issues to be resolved” should be 44. Put “it” on the–every agenda. XF “issues to be resolved” should be on every agenda—morning project team review, weekly exec team on every agenda—morning project team review, weekly exec team meeting, etc. A “next step” within 24 hours (4?) ought to be part of the meeting, etc. A “next step” within 24 hours (4?) ought to be part of the resolution.resolution.45. XF “honest broker” or ombudsman. The ombudsman examines XF 45. XF “honest broker” or ombudsman. The ombudsman examines XF “friction events” and acts as Conflict Resolution Counselor. (Perhaps a “friction events” and acts as Conflict Resolution Counselor. (Perhaps a formal conflict resolution agreement?)formal conflict resolution agreement?)46. Lock it in! XF co-operation, central to any value-added mission, 46. Lock it in! XF co-operation, central to any value-added mission, should be an explicit part of the “Vision Statement.”should be an explicit part of the “Vision Statement.”47. Promotions. 47. Promotions. Every promotion, no exceptions, should put XF Every promotion, no exceptions, should put XF Excellence in the top 5 (3?) evaluation criteria.Excellence in the top 5 (3?) evaluation criteria.48. Pick partners based on their “co-operation proclivity.” Everyone must 48. Pick partners based on their “co-operation proclivity.” Everyone must be on board if “this thing” is going to work; hence every vendor, among be on board if “this thing” is going to work; hence every vendor, among others, should be formally evaluated on their commitment to XF others, should be formally evaluated on their commitment to XF transparency—e.g., can we access anyone at any level in any function of transparency—e.g., can we access anyone at any level in any function of their organization without bureaucratic barriers?their organization without bureaucratic barriers?49. Fire vendors who don’t “get it”—more than “get it,” welcome “it” with 49. Fire vendors who don’t “get it”—more than “get it,” welcome “it” with open arms.”open arms.”50.50. Jaw. Jaw. Jaw. Jaw. Jaw. Jaw. Talk XF cooperation-value-added at every Talk XF cooperation-value-added at every opportunity. Become a relentless bore!opportunity. Become a relentless bore!51.51. Excellence! Excellence! There is a state of XF Excellence per se. Talk about it. There is a state of XF Excellence per se. Talk about it.Pursue it. Aspire to nothing less.Pursue it. Aspire to nothing less.

#75#75

appendixappendix

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 screwups.screwups.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.

#76#76

appendixappendix

the recession 44the recession 44

Forty-four “Secrets” Forty-four “Secrets” and “clever Strategies” and “clever Strategies”

For dealing with the For dealing with the Recession of 2008-XXXXRecession of 2008-XXXX

I am constantly asked for “strategies/

'secrets' for surviving the recession.” I try to appear

wise and informed—and parade original,

sophisticated thoughts. But if you want to know what’s

really going through my head, see the list that follows.

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 earlier.You come 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 screwup.to even the slightest screwup.


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 Superbowl victories—and celebrate andSuperbowl 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.

The endThe end

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