“ amateurs talk about strategy. professionals talk about logistics.”* —general omar bradley,...

““Amateurs talk Amateurs talk about strategy. about strategy.

Professionals talk Professionals talk about logistics.”*about logistics.”*

——General Omar Bradley, Commander, U.S. forces, D-DayGeneral Omar Bradley, Commander, U.S. forces, D-Day

*Also see: Roger Knight, *Also see: Roger Knight, Britain Against Napoleon: Britain Against Napoleon: The Organization of Victory 1793-1815The Organization of Victory 1793-1815

LONGLONG

Tom Peters’Tom Peters’

Re-ImagineRe-Imagine

EXCELLENCEEXCELLENCE!!

Gartner Supply Chain Executive ConferenceGartner Supply Chain Executive ConferencePhoenix/21 May 2014Phoenix/21 May 2014

((Also see our 23-part Master Compendium at excellencenow.com)Also see our 23-part Master Compendium at excellencenow.com)




Gartner Chief Marketing Officers ConferenceGartner Chief Marketing Officers ConferencePhoenix/21 May 2014Phoenix/21 May 2014





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Gartner Chief R&D Directors ConferenceGartner Chief R&D Directors ConferencePhoenix/21 May 2014Phoenix/21 May 2014


$82,000,$82,000,000,000,000,000,

000 000 [IoT/IoE/50B][IoT/IoE/50B]

IoT/The Internet of ThingsIoT/The Internet of Things IoE/The Internet of IoE/The Internet of

EverythingEverything M2M/Machine-to-MachineM2M/Machine-to-Machine

Ubiquitous computingUbiquitous computing Embedded computingEmbedded computing Pervasive computingPervasive computing

Industrial InternetIndustrial Internet Etc.*Etc.*

*“*“More Than More Than 50 BILLION50 BILLION Connected Devices [By 2020]”** —Ericsson Connected Devices [By 2020]”** —Ericsson

““By 2025 it could be applicable to By 2025 it could be applicable to $82 TRILLION$82 TRILLION of output or of output or

approximately one half the global economy”** —GE [**The WAGs to end all WAGs]approximately one half the global economy”** —GE [**The WAGs to end all WAGs]

““Steve, you’re Steve, you’re costing me a costing me a

hundred hundred nanoseconds. nanoseconds. [$100B/M][$100B/M] CCan you at least an you at least

cross it diagonally?”cross it diagonally?”

$100,000,000/Millisecond:$100,000,000/Millisecond: “Spivey* “Spivey* was all over him about the slightest detours. was all over him about the slightest detours. For instance, every so often the right-of-way For instance, every so often the right-of-way crossed over from one side of the road to the crossed over from one side of the road to the other, and the line needed to cross the road other, and the line needed to cross the road within its boundaries. These constant road within its boundaries. These constant road crossings irritated Spivey—Williams was crossings irritated Spivey—Williams was

making sharp right and left turns. making sharp right and left turns. ‘‘Steve, Steve, you’re costing me a hundred you’re costing me a hundred nanosecondsnanoseconds,’,’ he’d say. he’d say. ‘Can you ‘Can you at least cross it diagonally?’at least cross it diagonally?’ ””

——Michael LewisMichael Lewis, Flash Boys, Flash Boys

*Dan Spivey, Spread Network, $300M, 3 milliseconds (15-12), Chicago-*Dan Spivey, Spread Network, $300M, 3 milliseconds (15-12), Chicago-NJNJ

““Just like other members of Just like other members of the board, the algorithm the board, the algorithm

gets to vote on whether the gets to vote on whether the firm makes an investment firm makes an investment in a specific company or in a specific company or

not. The program will be the not. The program will be the sixth member of DKV's sixth member of DKV's

board.”board.”

““A Hong Kong VC fund has just appointed an A Hong Kong VC fund has just appointed an algorithm to its board.algorithm to its board. Deep Knowledge Ventures, a firm that Deep Knowledge Ventures, a firm that focuses on age-related disease drugs and regenerative medicine projects, says focuses on age-related disease drugs and regenerative medicine projects, says the program, called VITAL, can make investment recommendations about life the program, called VITAL, can make investment recommendations about life sciences firms by poring over large amounts of data.sciences firms by poring over large amounts of data.

““Just like other members of the board, the Just like other members of the board, the algorithm gets to vote on whether the firm algorithm gets to vote on whether the firm makes an investment in a specific company or makes an investment in a specific company or not. The program will be the sixth member of not. The program will be the sixth member of DKV's board.DKV's board.““VITAL's software was developed by UK-based Aging Analytics. VITAL's software was developed by UK-based Aging Analytics. ‘‘[The goal] is actually to draw attention developing it as an independent [The goal] is actually to draw attention developing it as an independent decision maker,’ Deep Knowledge Venture's Charles Groome told BI. decision maker,’ Deep Knowledge Venture's Charles Groome told BI.

““How does the algorithm work? VITAL makes its decisions by scanning How does the algorithm work? VITAL makes its decisions by scanning prospective companies' financing, clinical trials, intellectual property and prospective companies' financing, clinical trials, intellectual property and previous funding rounds. Groome says it has already helped approved two previous funding rounds. Groome says it has already helped approved two investment decisions (though has not yet cast its first vote), both of which investment decisions (though has not yet cast its first vote), both of which resemble its own function: In Silico Medicine, which develops computer-assisted resemble its own function: In Silico Medicine, which develops computer-assisted methods for drug discovery in aging research; and In Silico's partner firm methods for drug discovery in aging research; and In Silico's partner firm Pathway Pharmaceuticals, which employs a platform called OncoFinder to select Pathway Pharmaceuticals, which employs a platform called OncoFinder to select

and rate personalized cancer therapies.” —and rate personalized cancer therapies.” —Business Insider, Business Insider, 13 May 201413 May 2014

““Internet of Things”:Internet of Things”: “The algorithms created by Nest’s machine-learning “The algorithms created by Nest’s machine-learning experts—and the troves of data generated by those algorithms—are just as experts—and the troves of data generated by those algorithms—are just as

important as the sleek materials carefully selected by its industrial designers. important as the sleek materials carefully selected by its industrial designers. By tracking its users and subtly influencing their behaviors, Nest Learning By tracking its users and subtly influencing their behaviors, Nest Learning

Thermostat transcends its pedestrian product category. Nest has similar hopes Thermostat transcends its pedestrian product category. Nest has similar hopes for what has always been a prosaic device, the smoke alarm. Yes, the Nest for what has always been a prosaic device, the smoke alarm. Yes, the Nest Protect does what every similar device does—goes off when smoke or CO Protect does what every similar device does—goes off when smoke or CO

reaches dangerous levels—but it does much more, by using sensors to reaches dangerous levels—but it does much more, by using sensors to distinguish between smoke and steam, Internet connectivity to tell you where distinguish between smoke and steam, Internet connectivity to tell you where

the danger is, a calculated tone of voice to convey a personality, and warm the danger is, a calculated tone of voice to convey a personality, and warm lighting to guide you in the darkness. lighting to guide you in the darkness.

In other words, Nest isn’t only about beautifying the thermostat or adding In other words, Nest isn’t only about beautifying the thermostat or adding

features to the lowly smoke detector. features to the lowly smoke detector. ‘We’re ‘We’re about creating the about creating the

conscious home,’conscious home,’ said Nest said Nest

CEO Fadell. Left unsaid is a grander vision, with even bigger implications, CEO Fadell. Left unsaid is a grander vision, with even bigger implications, many devices sensing the environment, talking to one another, and doing many devices sensing the environment, talking to one another, and doing

our bidding unprompted.”our bidding unprompted.”

Source: “Where There’s Smoke …”, Steven Levy, Source: “Where There’s Smoke …”, Steven Levy, WiredWired, NOV 2013, NOV 2013

““The Future of Vacation The Future of Vacation Photography?”Photography?”

“OK, Kids, “OK, Kids, Smile forSmile for

the Drone!” the Drone!”Source: Headline, Source: Headline, Wall Street JournalWall Street Journal /05.17.14 /05.17.14

““Train Passengers Train Passengers Too Distracted By Too Distracted By Phones to Notice Phones to Notice

Gunman”Gunman”

—Headline, HuffingtonPost, 1009.13—Headline, HuffingtonPost, 1009.13

““Automation has become so Automation has become so sophisticated that on a typical sophisticated that on a typical passenger flight, a human pilot passenger flight, a human pilot

holds the controls for a grand total holds the controls for a grand total

of … of … 33 minutesminutes. .

[Pilots] have become, it’s not much [Pilots] have become, it’s not much of an exaggeration to say, computer of an exaggeration to say, computer

operators.” operators.” Source: Nicholas Carr, “The Great Forgetting,” Source: Nicholas Carr, “The Great Forgetting,” The AtlanticThe Atlantic, 11.13, 11.13

China/Foxconn:China/Foxconn:

1,000,001,000,0000 robots/next 3 robots/next 3

yearsyears

Source:Source: Race AGAINST the Machine, Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfeeErik Brynjolfsson and Andrew McAfee

SENSOR PILLS:SENSOR PILLS: “… Proteus Digital Health is one of “… Proteus Digital Health is one of several pioneers in sensor-based health technology. They several pioneers in sensor-based health technology. They make a silicon chip the size of a grain of sand that is make a silicon chip the size of a grain of sand that is embedded into a safely digested pill that is swallowed. embedded into a safely digested pill that is swallowed. When the chip mixes with stomach acids, the processor When the chip mixes with stomach acids, the processor is powered byis powered by the body’s electricity and transmits data to a patch worn the body’s electricity and transmits data to a patch worn on the skin. That patch, in turn, transmits data via on the skin. That patch, in turn, transmits data via Bluetooth to a mobile app, which then transmits the dataBluetooth to a mobile app, which then transmits the data to a central database where a health technician can to a central database where a health technician can verify if a patient has taken her or his medications. verify if a patient has taken her or his medications.

““This is a bigger deal than it may seem. In 2012, it was This is a bigger deal than it may seem. In 2012, it was estimated that people not taking their prescribed estimated that people not taking their prescribed medications cost medications cost $258 BILLION$258 BILLION in emergency room visits, in emergency room visits, hospitalization, and doctor visits. An average of hospitalization, and doctor visits. An average of 130,000130,000 Americans die each year because they don’t follow their Americans die each year because they don’t follow their prescription regimens closely enough..” [The FDA prescription regimens closely enough..” [The FDA approved placebo testing in April 2012; sensor pills are approved placebo testing in April 2012; sensor pills are ticketed to come to market in 2015 or 2016.] ticketed to come to market in 2015 or 2016.]

Source: Robert Scoble and Shel Israel, Source: Robert Scoble and Shel Israel, Age of Context: Mobile, Sensors, Data and Age of Context: Mobile, Sensors, Data and the Future of Privacythe Future of Privacy

Walmart SV =Walmart SV =

1,5001,500

““The greatest The greatest shortcoming of the shortcoming of the human race is our human race is our

inability to inability to understand the understand the

exponential exponential function.” function.” —Albert A. Bartlett—Albert A. Bartlett

““If I had to pick If I had to pick one failing of CEOs, one failing of CEOs, it’s that they don’t it’s that they don’t read enough.”read enough.” —Co-founder of —Co-founder of

one of the largest investment services firms in the USA/worldone of the largest investment services firms in the USA/world

For a definitive list For a definitive list

of of 166166

cognitive biases, cognitive biases, see …see …

http://en.wikipedia.org/wiki/List_of_cognitive_biaseshttp://en.wikipedia.org/wiki/List_of_cognitive_biases

Clinical versus Statistical PredictionClinical versus Statistical Prediction

“There is now [1996] a meta-analysis of “There is now [1996] a meta-analysis of studies of the comparative efficacy of studies of the comparative efficacy of

clinical judgment and actuarial clinical judgment and actuarial prediction methods. … prediction methods. … Of 136 research Of 136 research

studies from a wide variety of predictive studies from a wide variety of predictive

domains, not more than domains, not more than 55 percent percent

show the clinician’s predictive procedure show the clinician’s predictive procedure to be more accurate than a statistical to be more accurate than a statistical

one.”one.”

Source: Paul Meehl, Clinical versus Statistical Prediction (1954)Source: Paul Meehl, Clinical versus Statistical Prediction (1954)

““Unfortunately, Kahneman argues Unfortunately, Kahneman argues [Nobel laureate Daniel Kahneman’s [Nobel laureate Daniel Kahneman’s

masterpiece masterpiece Thinking, Fast and SlowThinking, Fast and Slow],], very very often our brain is to lazy to think often our brain is to lazy to think slowly and methodically. Instead, slowly and methodically. Instead,

we let the fast way of thinking we let the fast way of thinking take over. As a consequence, we take over. As a consequence, we often ‘see’ imaginary causalities, often ‘see’ imaginary causalities,

and thus fundamentally and thus fundamentally misunderstand the world.”misunderstand the world.”

Source:Source: Big Data: A Revolution That Will Transform How We Live, Big Data: A Revolution That Will Transform How We Live, Work, and Think, Work, and Think, by Viktor Mayer-Schonberger and Kenneth Cukierby Viktor Mayer-Schonberger and Kenneth Cukier

PLEASE CONSIDER: Multi-month/ continuing Study Group to

assess [at a snail’s pace] the impact on day-to-day affairs of the

limitations of judgment implied by …

Daniel Kahneman’s Thinking, Fast

and Slow

GGeneticsenetics

RRoboticsobotics

IInformaticsnformatics

NNanotechnologyanotechnology

GGeneticsenetics

RRoboticsobotics

IInformaticsnformatics

NNanotechnology*anotechnology*

*Decision *Decision #1#1: GRIN and : GRIN and BEARBEAR it? GRIN and it? GRIN and

SAVORSAVOR it? it?

Antifragile*: Antifragile*: Things That Gain Things That Gain From Disorder From Disorder

—Nassim Nicholas Taleb—Nassim Nicholas Taleb

*Not to be confused with … RESILIENCE*Not to be confused with … RESILIENCE

Circa 3013: And Circa 3013: And YOUTH YOUTH Shall Lead Us …Shall Lead Us …

60 IS THE NEW 40!60 IS THE NEW 40!70 IS THE NEW 50!70 IS THE NEW 50!

And/Or …And/Or …

35 IS THE NEW 6535 IS THE NEW 65?*?*

**PacePace of obsolescence of obsolescence STAGGERINGSTAGGERING//ACCELERATINGACCELERATING

But ClayBut Clay**:: My dad lived through My dad lived through the de facto advent of cars, the de facto advent of cars,

radio, TV, planes, jets, radio, TV, planes, jets, electrification, the Great electrification, the Great

Depression, WWI, WWII, the Depression, WWI, WWII, the Cold War, movies, TV, Cold War, movies, TV,

computers, man-to-the-computers, man-to-the-moon, the Internet.**moon, the Internet.**

[*[*The Rise of the Expert CompanyThe Rise of the Expert Company/1990] [**But not long enough to see the Cubs win a World Series]/1990] [**But not long enough to see the Cubs win a World Series]

Hilton’s Hilton’s Law …Law …

CONRADCONRAD HILTONHILTON, at a gala celebrating, at a gala celebrating his career, was called to the podium and his career, was called to the podium and

asked,asked, “What were the most important

lessons you learned in your long and

distinguished career?” His answer …His answer …

““Remember Remember to tuck the to tuck the

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

““EXECUTION EXECUTION ISIS STRATEGY.”STRATEGY.”

—Fred Malek—Fred Malek

““COSTCO FIGURED OUT COSTCO FIGURED OUT

THE THE BIGBIG,, SIMPLESIMPLE THINGS THINGS

AND AND EXECUTEDEXECUTED WITH TOTAL WITH TOTAL

FANATICISMFANATICISM.”.”

—Charles Munger, Berkshire Hathaway—Charles Munger, Berkshire Hathaway

““In real life, strategyIn real life, strategy is actually very is actually very

straightforward. straightforward. Pick a generalPick a general

direction direction … … andand imimpplementlement

likelike hellhell.”.” —Jack Welch—Jack Welch

WOWWOW!!!!Observed closely: The use ofObserved closely: The use of

“I”“I” oror “We”“We” during aduring a

job interview.job interview.

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

The Great Paradox/CSCOs & Schrodinger’s cat: ““If If things seem under things seem under control, you’re just control, you’re just

not going fast not going fast enough.”enough.”

—Mario Andretti—Mario Andretti

Social BusinessSocial Business & Customer & Customer EngagementEngagement

CCMMO/MarketingO/MarketingCCXXO/eXperienceO/eXperience

CCNNO/eNgagementO/eNgagement

Biz 2014: Get Aboard the “S-Train”Biz 2014: Get Aboard the “S-Train”

SMSM/Social Media./Social Media.

SXSX/Social eXecutives./Social eXecutives.

SESE/Social Employees./Social Employees.

SOSO/Social /Social Organization.Organization.

SBSB/Social Business./Social Business.

““Customer engagement is Customer engagement is moving from relatively isolated moving from relatively isolated market transactions to deeply market transactions to deeply connected and sustained social connected and sustained social relationships. relationships. This basic chanThis basic changge e in how we do business will make in how we do business will make

an iman imppact on act on jjust about ust about evereveryythinthingg we do we do.”.”

Social Business By Design: Transformative Social Media StrategiesSocial Business By Design: Transformative Social Media Strategies For the Connected CompanyFor the Connected Company —Dion Hinchcliffe & Peter Kim —Dion Hinchcliffe & Peter Kim

““Before the Internet, search and social Before the Internet, search and social media, brands had always been like media, brands had always been like smug little monarchies, dispensing smug little monarchies, dispensing

persuasion and amusement from their persuasion and amusement from their remote palaces without resistance remote palaces without resistance

from a passive populace. from a passive populace. Now, the Now, the marketplace is like an election marketplace is like an election

campaign. A rough-and-campaign. A rough-and-tumble election campaign that tumble election campaign that

never, never ends.”never, never ends.” —Bruce Philp, —Bruce Philp, Consumer Republic Consumer Republic

IBM Social Business Markers/2005-IBM Social Business Markers/2005-20122012

*433,000 employees on IBM *433,000 employees on IBM ConnectionConnection*26,000 individual blogs*26,000 individual blogs*91,000 communities*91,000 communities*62,000 wikis*62,000 wikis*50,000,000 IMs/day*50,000,000 IMs/day*200,000 employees on Facebook*200,000 employees on Facebook*295,000 employees/800,000 followers*295,000 employees/800,000 followers of the brandof the brand*35,000 on Twitter*35,000 on Twitter

Source: IBM case, in Cheryl Burgess & Mark Burgess, Source: IBM case, in Cheryl Burgess & Mark Burgess, The Social EmployeeThe Social Employee

Marbles, a Ball and Social Employees ay IBM Marbles, a Ball and Social Employees ay IBM

““Picture a ball and a bag of marbles side by side. The Picture a ball and a bag of marbles side by side. The two items might have the same volume—that is, if two items might have the same volume—that is, if

you dropped them into a bucket, they would displace you dropped them into a bucket, they would displace the same amount of water. The difference, however, the same amount of water. The difference, however,

lies in the surface area, lies in the surface area, Because a baBecause a bagg of of marbles is commarbles is compprised of several individual rised of several individual

ppieces, the combined surface area of all the ieces, the combined surface area of all the marbles far outstrimarbles far outstripps the surface area of a s the surface area of a

sinsinggle ballle ball. The expanded surface area represents a . The expanded surface area represents a social brand’s increased diversity. These surfaces social brand’s increased diversity. These surfaces

connect and interact with each other in unique ways, connect and interact with each other in unique ways, offering customers and employees alike a variety of offering customers and employees alike a variety of paths toward a myriad of solutions. If none of the paths toward a myriad of solutions. If none of the paths prove to be suitable, social employees can paths prove to be suitable, social employees can

carve out new paths on their own.”carve out new paths on their own.” —Ethan McCarty, Director of —Ethan McCarty, Director of

Enterprise Social Strategy, IBM (from Cheryl Burgess & Mark Burgess, Enterprise Social Strategy, IBM (from Cheryl Burgess & Mark Burgess, The Social The Social EmployeeEmployee

Teva Canada:Teva Canada: SuSuppppllyy chain excellence chain excellence achieved. Share- achieved. Share-Point/troubleshooting/Strategy-Nets/hooked to other functions; Point/troubleshooting/Strategy-Nets/hooked to other functions; Moxie social tools, document editing, etc.Moxie social tools, document editing, etc.

IBM:IBM: Social business tools/ Social business tools/30 30 ppercent droercent dropp in in pprorojject ect comcomppletion timeletion time/300K on LinkedIn, 200K on Facebook./300K on LinkedIn, 200K on Facebook.

MillerCoors:MillerCoors: Gender imbalance. Women of Sales peer Gender imbalance. Women of Sales peer

support. Private network. support. Private network. Attrition Attrition pplummetedlummeted..

Bloomberg:Bloomberg: Mobi social media analytics prelude to Mobi social media analytics prelude to stock stock pperformanceerformance..

Intuit:Intuit: TurboTax struggling against H&R Block temp TurboTax struggling against H&R Block temp staffing/customers #1 asset/ staffing/customers #1 asset/ Live CommunitLive Communityy, focused on hel, focused on helpp with transactionswith transactions . .

Social Business By Design: Transformative Social Media StrategiesSocial Business By Design: Transformative Social Media Strategies For the Connected CompanyFor the Connected Company —Dion Hinchcliffe & Peter Kim —Dion Hinchcliffe & Peter Kim

Teva CanadaTeva Canada

SharePoint:SharePoint: Joint problem Joint problem solving/collaboration within solving/collaboration within supply chain orgsupply chain org

Strategy-Nets:Strategy-Nets: Supply Supply chain plus sales, marketing, chain plus sales, marketing, customer servicecustomer service

Moxie:Moxie: blogs, wikis, joint doc blogs, wikis, joint doc editing, etc.editing, etc.Source: Dion Hinchcliffe & Peter Kim, Social Business By DesignSource: Dion Hinchcliffe & Peter Kim, Social Business By Design

Winning in Marketplace2013: An Ethos of Winning in Marketplace2013: An Ethos of

HelpingHelping!!““Today, despite the fact that we’re jToday, despite the fact that we’re just a little ust a little

swimminswimmingg ppool companool companyy in Vir in Virgginiainia, we have the , we have the most trafficked swimming pool website in the most trafficked swimming pool website in the

world. Five years ago, if you’d asked me and my world. Five years ago, if you’d asked me and my business partners what we do, the answer would business partners what we do, the answer would have been simple, ‘We build in-ground fiberglass have been simple, ‘We build in-ground fiberglass

swimming pools’ Now we say,swimming pools’ Now we say, ‘‘We are the We are the best teachers in the world on best teachers in the world on

the subject of fiberglass the subject of fiberglass swimming pools, and we happen swimming pools, and we happen

to build them as well.’”to build them as well.’” —Jay Baer, —Jay Baer,

Youtility: Why Smart Marketing Is About Help, Not HypeYoutility: Why Smart Marketing Is About Help, Not Hype

Charmin App Charmin App “Sit or Squat”“Sit or Squat”

Sit: Sit: GREENGREENSquat: Squat: REDRED

Insufficient data: Insufficient data: GRAYGRAY

11stst 6 months: 6 months: 170,000170,000 RestroomsRestrooms

——Jay Baer, Jay Baer, Youtility: Why Smart Marketing Is About Help, Not HypeYoutility: Why Smart Marketing Is About Help, Not Hype

Seven Characteristics of the Social EmployeeSeven Characteristics of the Social Employee

1. 1. Engaged Engaged 2. 2. Expects Integration of the Expects Integration of the

Personal and ProfessionalPersonal and Professional3. 3. Buys Into the Brand’s StoryBuys Into the Brand’s Story4. 4. Born CollaboratorBorn Collaborator5. 5. ListensListens6. 6. Customer-CentricCustomer-Centric7. 7. Empowered Change AgentEmpowered Change Agent

Source: Cheryl Burgess & Mark Burgess, Source: Cheryl Burgess & Mark Burgess, The Social EmployeeThe Social Employee

Social Survival Manifesto*Social Survival Manifesto*1.1. Hiding is not an option.Hiding is not an option.2.2. Face it, you are outnumbered. (“level playing field, arrogance Face it, you are outnumbered. (“level playing field, arrogance

denied”)denied”)3.3. You no longer control the message.You no longer control the message.4.4. Try acting like … a human being.Try acting like … a human being.5.5. Learn to listen, or else. (“REALLY listening to others a must”)Learn to listen, or else. (“REALLY listening to others a must”)6.6. Admit that you don’t have all the answers.Admit that you don’t have all the answers.7.7. Speak plainly and seek to inform.Speak plainly and seek to inform.

8.8. Quit being a monolith. Quit being a monolith. (“Your employees, speaking (“Your employees, speaking online as individuals, are a crucial resource … online as individuals, are a crucial resource … can be managed through frameworks that can be managed through frameworks that ENCOURAGE participation”)ENCOURAGE participation”)

9.9. Try being less evil.Try being less evil.

10.10. Pay it forward, now. Pay it forward, now. (“Internet culture largely built (“Internet culture largely built on the principal of the Gift Economy … give on the principal of the Gift Economy … give value away to your online communities”)value away to your online communities”)

*Tom Liacas; socialdisruptions.com*Tom Liacas; socialdisruptions.com

SB/SESB/SE > SM*> SM*

*“Social *“Social BUSINESSBUSINESS”/“Social ”/“Social EMPLOYEEEMPLOYEE”/“Social Media””/“Social Media”

Winning in Marketplace 2013: An Ethos of HelpingWinning in Marketplace 2013: An Ethos of Helping

ZMOTZMOT: ZERO Moment Of Truth/Google: ZERO Moment Of Truth/Google**

““You know what a ‘moment of truth’ is. It’s when a You know what a ‘moment of truth’ is. It’s when a prospective customer decides either to take the next step prospective customer decides either to take the next step in the purchase funnel, or to exit and seek other options. in the purchase funnel, or to exit and seek other options. … But what is a ‘zero moment of truth’? Many behaviors … But what is a ‘zero moment of truth’? Many behaviors

can serve as a zero moment of truth, but what binds them can serve as a zero moment of truth, but what binds them together is that the purchase is being researched and together is that the purchase is being researched and considered before the prospect even enters the classic considered before the prospect even enters the classic

sales funnel … In its research, Google found that sales funnel … In its research, Google found that

84%84% of shoppers said the new mental model, of shoppers said the new mental model,

ZMOT, shapes their decisions. …”ZMOT, shapes their decisions. …”

——Jay Baer, Jay Baer, Youtility: Why Smart Marketing Is About Help, Not HypeYoutility: Why Smart Marketing Is About Help, Not Hype

*See www.zeromomentoftruth.com for ZMOT in book-length format*See www.zeromomentoftruth.com for ZMOT in book-length format

““Why exactly are we competing with each other to do Why exactly are we competing with each other to do the dirty work? We’re playing a free online game the dirty work? We’re playing a free online game

called called ChoreChore WarsWars —and it —and it

just so happens that ridding our real-world kingdom just so happens that ridding our real-world kingdom of toilet stains is worth more experience points, or XP, of toilet stains is worth more experience points, or XP,

than any other chore in our apartment. … A mom in than any other chore in our apartment. … A mom in Texas describes a typical Chore Wars experience: ‘Texas describes a typical Chore Wars experience: ‘We We have three kids, ages 9, 8, and 7. I sat down with the have three kids, ages 9, 8, and 7. I sat down with the

kids, showed them their characters and the kids, showed them their characters and the adventures, and theadventures, and theyy literall literallyy jjumped uumped upp and ran off and ran off to comto compplete their chosen task. I’ve never seen mlete their chosen task. I’ve never seen myy 8- 8-

yyear-old son makeear-old son make his bed. I nearlhis bed. I nearlyy fainted when m fainted when myy husband cleaned husband cleaned

out the toaster ovenout the toaster oven.’ …” .’ …”

——Jane McGonigal, Jane McGonigal, Reality Is Broken: Why Games Make Us BetterReality Is Broken: Why Games Make Us Better and How They Can Change the Worldand How They Can Change the World

““Flash When I work with experimental digital gadgets, I am always reminded of Flash When I work with experimental digital gadgets, I am always reminded of how small changes in the details of a digital design can have profound unforeseen how small changes in the details of a digital design can have profound unforeseen

effects on the experiences of the people who are playing with it. The slightest effects on the experiences of the people who are playing with it. The slightest change in something as seemingly trivial as the ease of use of a button can change in something as seemingly trivial as the ease of use of a button can

sometimes alter behavior patterns.sometimes alter behavior patterns. For instance, For instance, Stanford University researcher Stanford University researcher

Jeremy Bailinson has Jeremy Bailinson has demonstrated that changing the demonstrated that changing the

height of one’s avatars in height of one’s avatars in immersive virtual reality immersive virtual reality

transforms self-esteem and transforms self-esteem and social self-perception.social self-perception. Technologies are Technologies are

extensions of ourselves, and, like the avatars in Jeremy’s lab, our identities extensions of ourselves, and, like the avatars in Jeremy’s lab, our identities can be shifted by the quirks of gadgets. It is impossible to work with information can be shifted by the quirks of gadgets. It is impossible to work with information

technology without also engaging in social engineering.”technology without also engaging in social engineering.” —Jaron Lanier,—Jaron Lanier, You Are Not a GadgetYou Are Not a Gadget

““If I could have chosen not to tackle the IBM culture head-If I could have chosen not to tackle the IBM culture head-on,on,

I probably wouldn’t have. My bias coming in was toward I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of changing the attitude and behaviors of hundreds of

thousands of people is very, very hard.thousands of people is very, very hard. Yet I Yet I came to see in my time at came to see in my time at IBM that IBM that cultureculture isn’t just isn’t just

one aspect of the game one aspect of the game ——IT IS THE IT IS THE GGAMEAME.”.”

——Lou Gerstner, Lou Gerstner, Who Says Elephants Can’t DanceWho Says Elephants Can’t Dance

XFX =XFX =

#1#1

XFX = XFX = #1#1**

*Cross-Functional *Cross-Functional eXcellence eXcellence

NEVER NEVER WASTE A WASTE A LUNCH!LUNCH!

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

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

through thethrough the

develodeveloppmentment ofof friendshifriendshippss.”.”

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

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

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

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

% XF % XF

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

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

XFX:XFX: SOCIALSOCIAL ACCELERATORS …ACCELERATORS …

XFX/Typical XFX/Typical SocialSocial Accelerators Accelerators

1. EVERYONE’s [more or less] JOB #1: Make friends in other 1. EVERYONE’s [more or less] JOB #1: Make friends in other functions! (Purposefully. Consistently. Measurably.)functions! (Purposefully. Consistently. Measurably.)2. “Do lunch” with people in other functions!! Frequently!! 2. “Do lunch” with people in other functions!! Frequently!! (Minimum 10% to 25% for everyone? Measured.)(Minimum 10% to 25% for everyone? Measured.)3. Ask peers in other functions for references so you can become 3. Ask peers in other functions for references so you can become conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-ism.) ism.) 4. Religiously invite counterparts in other functions to your team 4. Religiously invite counterparts in other functions to your team meetings. Ask them to present “cool stuff” from “their world” to meetings. Ask them to present “cool stuff” from “their world” to your group. (Useful. Mark of respect.)your group. (Useful. Mark of respect.)

5. 5. PROACTIVELY SEEK EXAMPLES OF “TINY” PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO ACKNOWLEDGE—ACTS OF “XFX” TO ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ONCE PRIVATELY AND PUBLICALLY. (Bosses: ONCE A DAY … make a short call or visit or send an A DAY … make a short call or visit or send an email of “Thanks” for some sort of XFX email of “Thanks” for some sort of XFX gesture by your folks and some other gesture by your folks and some other function’s folks.)function’s folks.) 6. Present counterparts in other functions awards for service to 6. Present counterparts in other functions awards for service to your group. Tiny awards at least weekly; and an “Annualyour group. Tiny awards at least weekly; and an “Annual All-Star All-Star Supporters [from other groups] Banquet” modeled after superstar Supporters [from other groups] Banquet” modeled after superstar salesperson banquets. salesperson banquets.

XFX/ Typical XFX/ Typical SocialSocial Accelerators Accelerators

7. Routinely discuss—A SEPARATE AGENDA ITEM—good and 7. Routinely discuss—A SEPARATE AGENDA ITEM—good and problematic acts of cross-functional co-operation at every problematic acts of cross-functional co-operation at every Team Meeting. Team Meeting. 8. When someone in another function asks for assistance, 8. When someone in another function asks for assistance, respond with … more … alacrity than you would if it were the respond with … more … alacrity than you would if it were the person in the cubicle next to yours—or even more than you person in the cubicle next to yours—or even more than you would for a key external customer. (Remember, XFX is the would for a key external customer. (Remember, XFX is the key to Customer Retention which is in turn the key to “all key to Customer Retention which is in turn the key to “all good things.”)good things.”)9. Do not bad mouth ... “the damned accountants,” “the 9. Do not bad mouth ... “the damned accountants,” “the bloody HR guy.” Ever. (Bosses: Severe penalties for this—bloody HR guy.” Ever. (Bosses: Severe penalties for this—including public tongue-lashings.) including public tongue-lashings.) 10. 10. Get physical! “Co-location” may well be the most Get physical! “Co-location” may well be the most powerful “culture change lever.”powerful “culture change lever.” Physical X-functional Physical X-functional proximity is almost a … guarantee … of remarkably improved proximity is almost a … guarantee … of remarkably improved co-operation—to aid this one needs flexible workspaces that co-operation—to aid this one needs flexible workspaces that can be mobilized for a team in a flash.can be mobilized for a team in a flash.11. 11. Establish “adhocracy” as S.O.P.Establish “adhocracy” as S.O.P. To improve the new “X- To improve the new “X-functional Culture” (and business results), little XF teams functional Culture” (and business results), little XF teams should be formed on the spot to deal with an urgent issue—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, they may live for but ten days, but it helps the XF habit, making it normal to be “working the XF way.”making it normal to be “working the XF way.”

XFX/ Typical XFX/ Typical SocialSocial Accelerators Accelerators

12. Early project “management” experience. Within days, 12. Early project “management” experience. Within days, literally, of coming aboard folks should be “running” some bit literally, of coming aboard folks should be “running” some bit of a bit of a bit a project, working with folks from other of a bit of a bit a project, working with folks from other functions—hence, “all this” becomes as natural as breathing.functions—hence, “all this” becomes as natural as breathing.13. Work proactively to give as large as possible numbers of 13. Work proactively to give as large as possible numbers of people temporary assignments in other functions—especially people temporary assignments in other functions—especially Finance.Finance.14. “Get ’em out with the customer.” Rarely does the 14. “Get ’em out with the customer.” Rarely does the accountant or bench scientist call on the customer. Reverse accountant or bench scientist call on the customer. Reverse that. Give everyone more or less regular “customer-facing that. Give everyone more or less regular “customer-facing experiences.” She or he learns quickly that the customer is not experiences.” She or he learns quickly that the customer is not interested in our in-house turf battles! interested in our in-house turf battles! 15. Consider creating a special role, or even position. Specialty 15. Consider creating a special role, or even position. Specialty chemical company Buckman Labs established chemical company Buckman Labs established “knowledge “knowledge transfer facilitatorstransfer facilitators,,”” effectively former “middle managers,” effectively former “middle managers,” with 100% of discretionary pay based on success at spurring with 100% of discretionary pay based on success at spurring integration across previously impermeable barriers.integration across previously impermeable barriers.

XFX/: Typical XFX/: Typical SocialSocial Accelerators Accelerators

16. Formal evaluations. Everyone, starting with the receptionist, 16. Formal evaluations. Everyone, starting with the receptionist, should have a significant XF rating component in their evaluation. should have a significant XF rating component in their evaluation. (The “XFX Performance” should be among the Top 3 items in all (The “XFX Performance” should be among the Top 3 items in all managers’ evaluations.)managers’ evaluations.)

17. 17. Every functional unit should have strict and Every functional unit should have strict and extensive measures of “customer satisfaction” extensive measures of “customer satisfaction” based on evaluations from other functions of based on evaluations from other functions of its usefulness and effectiveness and value-its usefulness and effectiveness and value-added to the enterprise as a whole. added to the enterprise as a whole. 18. Demand XF experience for, especially, senior jobs. For example, 18. Demand XF experience for, especially, senior jobs. For example, the U.S. military requires all would-be generals and admirals to have the U.S. military requires all would-be generals and admirals to have served a full tour in a job whose only goals were cross-functional served a full tour in a job whose only goals were cross-functional achievements.achievements.19. “Deep dip.” Dive three levels down in the organization to fill a 19. “Deep dip.” Dive three levels down in the organization to fill a senior role with some one who has been noticeably pro-active on senior role with some one who has been noticeably pro-active on adding value via excellent cross-functional integration. adding value via excellent cross-functional integration. 20. XFX is … PERSONAL … as well as about organizational 20. XFX is … PERSONAL … as well as about organizational effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to personal success—in terms of organizational career, freelancer/Brand personal success—in terms of organizational career, freelancer/Brand You, or as entrepreneur. You, or as entrepreneur.

21. 21. Excellence!Excellence! There is a “State of XF Excellence” per se. Talk There is a “State of XF Excellence” per se. Talk it up constantly. Pursue it. Aspire to nothing less.it up constantly. Pursue it. Aspire to nothing less.

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

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

MANY WOULD LIKELY AGREE, IN OUR MANY WOULD LIKELY AGREE, IN OUR MOMENT-TO-MOMENT AFFAIRS, XFX PER SE MOMENT-TO-MOMENT AFFAIRS, XFX PER SE

IS NOT SO OFTEN VISIBLY & PERPETUALLY AT IS NOT SO OFTEN VISIBLY & PERPETUALLY AT THE THE TOPTOP OF EVERY AGENDA. I ARGUE HERE OF EVERY AGENDA. I ARGUE HERE

FOR NO LESS THAN …FOR NO LESS THAN …

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

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

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

““Success” Success” >>>> “Satisfaction”“Satisfaction”

ibM to iBm

PlanetarPlanetary y RainmakerRainmaker--inin--ChiefChief!!

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

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

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

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

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

UUPPS S toto UP UPSS

IDEOIDEO

Product DesignProduct DesignProduct Design Product Design

TrainingTraining

Innovation Innovation TrainingTraining

““Rolls-Royce now earns Rolls-Royce now earns more from tasks such as more from tasks such as

managing clients’ managing clients’ procurement strategies procurement strategies

and maintaining and maintaining aerospace engines it aerospace engines it

sells than it does from sells than it does from making them.”making them.”

----EconomistEconomist

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

How How SchlumberSchlumberggerer Is Rewriting the Rules of the Is Rewriting the Rules of the

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

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

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

MasterCard MasterCard AdvisorsAdvisors

Huge:Huge: “Customer “Customer

SatisfactionSatisfaction with with product/Service” product/Service”

to to

“CUSTOMER “CUSTOMER SUCCESSSUCCESS””

Era #1/Obvious ValueEra #1/Obvious Value: “Our ‘it’ works, : “Our ‘it’ works, is delivered on time” (“Close”)is delivered on time” (“Close”)

Era #2/Augmented ValueEra #2/Augmented Value: : “How our “How our ‘it’ can add value—a ‘useful it’ ” ‘it’ can add value—a ‘useful it’ ”

(“Solve”)(“Solve”)

Era #3/Complex Value NetworksEra #3/Complex Value Networks: : “How “How our ‘system’ can change you and our ‘system’ can change you and

deliver deliver ‘BUSINESS ADVANTAGE’‘BUSINESS ADVANTAGE’” ” (“Culture-Strategic change”)(“Culture-Strategic change”)

Source: Jeff Thull, Source: Jeff Thull, The Prime Solution: Close the Value Gap,The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale Increase Margins, and Win the Complex Sale

Universal Value Added:Universal Value Added:

The The PSFPSF Solution Solution

(or bust)(or bust)

Sarah:Sarah: “ Mom, what “ Mom, what do you do?” do you do?”

Sarah:Sarah: “ Mom, what do you do?”

MomMom:: ““I’m ‘overhead’—the ‘bureaucrat’ who runs the ‘cost center’ called ‘Human Resources.”

Anne: Anne: “ Mom, what “ Mom, what do you do?” do you do?”

Mom: “Anne, my human “Anne, my human resources team and I resources team and I are the ‘are the ‘Rock Stars of Rock Stars of the Age of Talent.’ We the Age of Talent.’ We

drive our division’s drive our division’s strategic success.”strategic success.”

Department Head/“Cost center”/“Overhead” to …

ManaginManaging g

PartnerPartner, , HRHR [IS, R&D, etc.] IncInc..

HCare CIOHCare CIO: : “Technology Executive” (workin’ in a hospital)(workin’ in a hospital)

Or/to:Or/to: Full-scale, Full-scale, AccountableAccountable (life or death)(life or death)

Member-Partner of XYZ Member-Partner of XYZ Hospital’s Hospital’s Senior Senior

HealinHealingg-Services Team-Services Team (who happens to be a techie)(who happens to be a techie)

PSF Transformation: Credit Department/Trek

Was Is

Credit Dept Financial ServicesFinancial Services

Hammer on dealers until Make dealers successful so Make dealers successful so they pay. thetheyy CAN pa CAN pay.y.

AR sold to 3rd party Trek is the commercial financialTrek is the commercial financialcommercial co. CompanyCompany

23 employees 12 employees12 employees

Oversee peak AR of $70M Oversee peak AR of $160MOversee peak AR of $160M

Identify risky dealers Identify opportunitiesIdentify opportunities

Cost Center Profit CenterProfit Center

No products Products: Consulting, MC/Visa,Products: Consulting, MC/Visa, Stored value of gift cards, Gift cardStored value of gift cards, Gift card peripherals, Online paymentsperipherals, Online payments

Source: John Burke/0330.06

The Professional Service Firm50: Fifty Ways to Transform The Professional Service Firm50: Fifty Ways to Transform Your “Department” into a Professional Service Firm Your “Department” into a Professional Service Firm

Whose Trademarks are Passion and Innovation! Whose Trademarks are Passion and Innovation!

EverEvery “PSF” y “PSF” mustmust havehave a a

formal & formal & formidable R&D formidable R&D budget. budget. PERIODPERIOD..

ExcellenceExcellence!!

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

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

““Breakthrough” 82*Breakthrough” 82*

People! People! Customers! Customers!

Action! Action! ValuesValues! !

**In Search of ExcellenceIn Search of Excellence

““Why in the Why in the world did youworld did you

go to go to SiberiaSiberia?”?”

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

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

““the joy* the joy* of work”of work”

——John Mackey and Raj Sisoda, Conscious Capitalism: Liberating the Heroic Spirit of BusinessJohn Mackey and Raj Sisoda, Conscious Capitalism: Liberating the Heroic Spirit of Business

*See also,*See also, Joy Inc.: How We Built a Workplace People LoveJoy Inc.: How We Built a Workplace People Love ——Richard Sheridan (Menlo Innovations) Richard Sheridan (Menlo Innovations)

““The Economy Is Scary, But Smart The Economy Is Scary, But Smart Companies Can Dominate”Companies Can Dominate”

““They manage for value—They manage for value—not for EPS.not for EPS.

““They keep developing They keep developing human capital.human capital.

““They get radically They get radically customer-centric.”customer-centric.”

Source: Geoff Colvin, Source: Geoff Colvin, FortuneFortune

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

Hard Hard [numbers, plans][numbers, plans] is Soft. is Soft.Soft Soft [people/relationships][people/relationships] is Hard. is Hard.

““If I could have chosen not to tackle the IBM culture head-If I could have chosen not to tackle the IBM culture head-on,on,

I probably wouldn’t have. My bias coming in was toward I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of changing the attitude and behaviors of hundreds of

thousands of people is very, very hard.thousands of people is very, very hard. Yet I Yet I came to see in my time at came to see in my time at IBM that IBM that cultureculture isn’t just isn’t just

one aspect of the game one aspect of the game ——IT IS THE IT IS THE GGAMEAME.”.”

——Lou Gerstner, Lou Gerstner, Who Says Elephants Can’t DanceWho Says Elephants Can’t Dance

MBWAMBWA

““I’m always stopping by our I’m always stopping by our

stores— stores— at least at least 2525

a weeka week.. I’m also in other I’m also in other

places: Home Depot, Whole Foods, Crate places: Home Depot, Whole Foods, Crate & Barrel. I try to be& Barrel. I try to be

a sponge to pick up as much a sponge to pick up as much as I can.”as I can.” —Howard Schultz—Howard Schultz

Source: Source: FortuneFortune, “Secrets of Greatness”, “Secrets of Greatness”

““Most managers spend a great deal of time thinking about what they plan to do, but relatively little time thinking about Most managers spend a great deal of time thinking about what they plan to do, but relatively little time thinking about what they plan not to do. As a result, they become so caught up … in fighting the fires of the moment that they cannot what they plan not to do. As a result, they become so caught up … in fighting the fires of the moment that they cannot

really attend to the long-term threats and risks facing the organization. So the first soft skill of leadership the hard way is really attend to the long-term threats and risks facing the organization. So the first soft skill of leadership the hard way is

to cultivate the perspective of Marcus Aurelius: avoid busyness, free up your time, stay focused on what really matters.to cultivate the perspective of Marcus Aurelius: avoid busyness, free up your time, stay focused on what really matters.

Let me put it bluntly: every leader Let me put it bluntly: every leader should routinely keep a substantial should routinely keep a substantial

portion of his or her time—I would say portion of his or her time—I would say

as much asas much as 5050 percent—percent—

unscheduledunscheduled.. … Only when you have substantial ‘slop’ in your schedule—unscheduled time—will … Only when you have substantial ‘slop’ in your schedule—unscheduled time—will

you have the space to reflect on what you are doing, learn from experience, and recover from your inevitable mistakes. you have the space to reflect on what you are doing, learn from experience, and recover from your inevitable mistakes. Leaders without such free time end up tackling issues only when there is an immediate or visible problem. Managers’ Leaders without such free time end up tackling issues only when there is an immediate or visible problem. Managers’

typical response to my argument about free time is, ‘That’s all well and good, but there are things I have to do.’typical response to my argument about free time is, ‘That’s all well and good, but there are things I have to do.’ Yet Yet we waste so much time in unwe waste so much time in unpproductive activitroductive activity—y—it takes an it takes an

enormous effort on the enormous effort on the ppart of the leader to keeart of the leader to keepp free time for the free time for the trultrulyy im impportant thinortant thinggss.”.”

——Dov FrohmanDov Frohman (& Robert Howard (& Robert Howard), Leadership The Hard Way: Why Leadership Can’t Be Taught—), Leadership The Hard Way: Why Leadership Can’t Be Taught—

And How You Can Learn It Anyway (Chapter 5, “The Soft Skills Of Hard Leadership”)And How You Can Learn It Anyway (Chapter 5, “The Soft Skills Of Hard Leadership”)

You You == Your Your calendar/calendar/

Your calendar Your calendar NEVERNEVER lies. lies.

You = Your You = Your calendarcalendar**

*The calendar *The calendar NEVERNEVER lies.lies.

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

concentration. Effective executives concentration. Effective executives

do first things first … do first things first … and and thetheyy do do

oneone thinthingg at a at a timetime.”.” —Peter Drucker—Peter Drucker

Meetings are Meetings are #1#1 thing thing

bosses bosses dodo. Therefore, . Therefore, 100%100%

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

LEARNING. TEMPO. LEARNING. TEMPO. WORK-OF-ARTWORK-OF-ART.. DAMNDAMN ITIT..

11 Mouth, Mouth,

22 Ears Ears

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

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

18 …18 …

18 … 18 … secondsseconds!!

[An [An obsessionobsession with] Listening is ... the ultimate mark with] Listening is ... the ultimate mark

of of RespectRespect..

Listening is ... the heart and soul of Listening is ... the heart and soul of EngagementEngagement..Listening is ... the heart and soul of Listening is ... the heart and soul of KindnessKindness..Listening is ... the heart and soul of Listening is ... the heart and soul of ThoughtfulnessThoughtfulness..Listening is ... the basis for true Listening is ... the basis for true CollaborationCollaboration..Listening is ... the basis for true Listening is ... the basis for true PartnershipPartnership..Listening is ... a Listening is ... a Team SportTeam Sport..Listening is ... a Listening is ... a Developable Individual SkillDevelopable Individual Skill.* .* (*Though women (*Though women are are farfar better at it than men.) better at it than men.)

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

[cont.][cont.]

““I always writeI always write ‘LISTEN’‘LISTEN’ on on the back of my hand the back of my hand before a meeting.”before a meeting.”

Source: Tweet viewed @tom_petersSource: Tweet viewed @tom_peters

Suggested Suggested Core Value Core Value #1:#1: “We are Effective “We are Effective

Listeners—we treat Listening Listeners—we treat Listening EXCELLENCEEXCELLENCE as the as the Centerpiece of our Centerpiece of our

Commitment to Respect and Commitment to Respect and Engagement and Community Engagement and Community

and Growth.”and Growth.”

Responsiveness/Responsiveness/Apology/ Apology/

““I’m sorry!”I’m sorry!”

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

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

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

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

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

With a new and forthcoming policy on With a new and forthcoming policy on apologies … Toro, the lawn mower folks, apologies … Toro, the lawn mower folks,

reduced the average cost of settling a claim reduced the average cost of settling a claim

fromfrom $$115,000115,000 in 1991 toin 1991 to

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

last15last15 y yearsears!!

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

THREETHREE--MINUTEMINUTE PHONEPHONE CALLCALL WOULD WOULD

HAVE AVOIDED SETTING OFF THE HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RESULTED IN A COMPLETE

RUPTURE.RUPTURE.**

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

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

PROBLEM. THEPROBLEM. THE

RESPONSERESPONSE TO THE TO THE PROBLEM INVARIABLY PROBLEM INVARIABLY ENDS UP BEING THE ENDS UP BEING THE

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

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

>>>>PerfectionPerfection

Acquire vs. maintain:Acquire vs. maintain:

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

1/4,096:1/4,096: Business Business Has to Give Has to Give

People Enriching, People Enriching, Rewarding LivesRewarding Lives

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

rewarding lives …rewarding lives …

1/4,096: excellencenow.com1/4,096: excellencenow.com

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

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

worth worth doindoing.”g.”

——Richard BransonRichard Branson

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

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

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

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

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

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

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

EMPLOYEES FIRST, CUSTOMERS SECOND:EMPLOYEES FIRST, CUSTOMERS SECOND: Turning Conventional Management Upside DownTurning Conventional Management Upside Down

Vineet Nayar/CEO/HCL TechnologiesVineet Nayar/CEO/HCL Technologies

EXCELLENT EXCELLENT customercustomer

experience depends experience depends entirely on entirely on EXCELLENT EXCELLENT emempploloyyeeee

experience!experience!

If you want to WOW If you want to WOW your customers then your customers then

you must you must FIRSTFIRST WOW those who WOW WOW those who WOW

the customersthe customers!!

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

rarely make rarely make significant significant

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

““I can’t tell I can’t tell yyou how ou how manmanyy times we times we ppassed assed

uupp hotshots for hotshots for gguuyys we s we thouthougght were better ht were better

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

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

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

conference and All-America teams.” conference and All-America teams.” —Bo —Bo Schembechler & John Bacon), “Recruit for Character,” Schembechler & John Bacon), “Recruit for Character,” Bo’s Lasting LessonsBo’s Lasting Lessons

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

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

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

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

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

““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 thetheyy’ve ever been ’ve ever been

before,before, more than themore than they’y’ve ve dreamed of beindreamed of being.”g.”

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

Tom’s TIB* #1:Tom’s TIB* #1: Your principal moral Your principal moral obligation as a leader is to obligation as a leader is to

develop the skillset, “soft” and develop the skillset, “soft” and “hard,” of every one of the “hard,” of every one of the

people in your charge (temporary people in your charge (temporary as well as semi-permanent) to as well as semi-permanent) to the maximum extent of your the maximum extent of your

abilities. The abilities. The good news: This is also thegood news: This is also the

#1 mid- to long-term … #1 mid- to long-term …

profit maximization strategy profit maximization strategy!!* * This I Believe (courtesy Bill Caudill)This I Believe (courtesy Bill Caudill)

““I start with the premise I start with the premise that the function of that the function of

leadership is to leadership is to

pproduce more roduce more leadersleaders, not more , not more

followers.”followers.” ——Ralph NaderRalph Nader

Our Mission

TO DEVELOP AND MANAGE TALENT;TO DEVELOP AND MANAGE 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

““In a world where customers wake In a world where customers wake up every morning asking, ‘What’s up every morning asking, ‘What’s

new, what’s different, what’s new, what’s different, what’s amazing?’ amazing?’ success depends on a success depends on a

company’s ability to unleash company’s ability to unleash initiative, imagination and passion initiative, imagination and passion of employees at all levelsof employees at all levels—and this—and this can only happen if all those folks can only happen if all those folks are connected heart and soul to are connected heart and soul to their work [their ‘calling’], their their work [their ‘calling’], their company and their mission.”company and their mission.” —John —John

Mackey Mackey and Raj Sisoda, Conscious Capitalism: Liberating theand Raj Sisoda, Conscious Capitalism: Liberating the

Heroic Spirit of BusinessHeroic Spirit of Business

““LEADERSLEADERS

‘‘DODO’’ PEOPLE.”PEOPLE.”

Leaders Leaders DODO People: People: You You CHOSECHOSE to be a leader. Hence to be a leader. Hence youyou CHOSE CHOSE to devote to devote

the rest of your the rest of your professional career toprofessional career to

DEVELOPINGDEVELOPING PEOPLEPEOPLE..

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

Superb people Superb people developer developer

(her/his folks (her/his folks invariablyinvariably

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

"Leadership is a "Leadership is a gift. It's given by gift. It's given by those who follow. those who follow.

You have to be You have to be worthy of it.”worthy of it.”

——General Mark Welsh, Commander, U.S. Air Forces Europe General Mark Welsh, Commander, U.S. Air Forces Europe

““Of Service”Of Service”

ORGANIZATIONS ORGANIZATIONS EXISTEXIST TO TO SERVESERVE. .

PERIOD.PERIOD.

LEADERS LEADERS LIVELIVE TO TO SERVESERVE. PERIOD.. PERIOD.

The Memories The Memories That That MatterMatter

The Memories That MatterThe Memories That Matter

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

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


Belly laughs at some of the stupid-insane things you and your Belly laughs at some of the stupid-insane things you and your matesmates tried.tried.Less than a closet full of “I should have …”Less than a closet full of “I should have …”

A frighteningly consistent record of having A frighteningly consistent record of having invariably said, invariably said, “Go for it!”“Go for it!”Not intervening in the face of considerable loss—recognizing that toNot intervening in the face of considerable loss—recognizing that to develop top talent means tolerating failures and allowing thedevelop top talent means tolerating failures and allowing the person who screwed up to work their own way through and out ofperson who screwed up to work their own way through and out of their self-created mess.their self-created mess.Dealing with one or more crises with particular/memorable aplomb.Dealing with one or more crises with particular/memorable aplomb.

Demanding … Demanding … CIVILITYCIVILITY … regardless of circumstances.… regardless of circumstances.Turning around one or two or so truly dreadful situations—andTurning around one or two or so truly dreadful situations—and watching almost everyone involved rise to the occasion (often towatching almost everyone involved rise to the occasion (often to their own surprise) and acquire a renewed sense of purpose in their own surprise) and acquire a renewed sense of purpose in thethe process.process.Leaving something behind of demonstrable-lasting worth. (On short Leaving something behind of demonstrable-lasting worth. (On short asas well as long assignments.)well as long assignments.)


Having almost always (99% of the time) put “Quality” and Having almost always (99% of the time) put “Quality” and “Excellence”“Excellence” ahead of “Quantity.” (At times an unpopular approach.)ahead of “Quantity.” (At times an unpopular approach.)A few “critical” instances where you stopped short and could haveA few “critical” instances where you stopped short and could have “ “done more”—but to have done so would have compromised your done more”—but to have done so would have compromised your andand your team’s character and integrity.your team’s character and integrity.A sense of time well and honorably spent.A sense of time well and honorably spent.The expression of “simple” human kindness and consideration—noThe expression of “simple” human kindness and consideration—no matter how harried you may be/may have been.matter how harried you may be/may have been.Understood that your demeanor/expression of character always setUnderstood that your demeanor/expression of character always set the tone—especially in difficult situations. the tone—especially in difficult situations. Never (rarely) let your external expression of enthusiasm/ Never (rarely) let your external expression of enthusiasm/ determination flag—the rougher the times, the more your determination flag—the rougher the times, the more your expressedexpressed energy and bedrock optimism and sense of humor showed.energy and bedrock optimism and sense of humor showed.

The respect of your peers.The respect of your peers.A stoic unwillingness to badmouth others—even in private.A stoic unwillingness to badmouth others—even in private.


An invariant creed: When something goes amiss, An invariant creed: When something goes amiss, “The buck stops with“The buck stops with meme”; when something goes right, it was ”; when something goes right, it was their their doing, not yours.doing, not yours.

A Mandela-like “naïve” belief that others willA Mandela-like “naïve” belief that others will rise to the occasion if given the opportunity.rise to the occasion if given the opportunity.A reputation for eschewing the “trappings of power.” (Strong self-A reputation for eschewing the “trappings of power.” (Strong self- management of tendencies toward arrogance or dismissiveness.)management of tendencies toward arrogance or dismissiveness.)Intense, even “driven” … but not to the point of being careless of Intense, even “driven” … but not to the point of being careless of othersothers in the process of forging ahead.in the process of forging ahead.Willing time and again to be surprised by ways of doing things that Willing time and again to be surprised by ways of doing things that areare inconsistent with your “certain hypotheses.”inconsistent with your “certain hypotheses.”

Humility in the face of others, at every level, Humility in the face of others, at every level, who know more than you about “the waywho know more than you about “the way things really are.”things really are.”Bit your tongue on a thousand occasions—and Bit your tongue on a thousand occasions—and listened, listened, reallyreally really really listened. (And listened. (And been constantly delighted when, as a result, been constantly delighted when, as a result, youyou invariablyinvariably learned something new and learned something new and invariablyinvariably increased your increased your connection with the speaker.)connection with the speaker.)


Unalloyed pleasure in being informed of the fallaciousness of yourUnalloyed pleasure in being informed of the fallaciousness of your beliefs by someone 15 years your junior and several rungs below beliefs by someone 15 years your junior and several rungs below youyou on the hierarchical ladder. on the hierarchical ladder. Selflessness. (A sterling reputation as “a guy always willing to help Selflessness. (A sterling reputation as “a guy always willing to help outout with alacrity despite personal cost.”)with alacrity despite personal cost.”)As thoughtful and respectful, or more so, toward thine “enemies” asAs thoughtful and respectful, or more so, toward thine “enemies” as toward friends and supporters.toward friends and supporters.

Always and relentlessly put at the top of your list/any Always and relentlessly put at the top of your list/any list being first and foremost list being first and foremost “of service”“of service” to your to your internal and external constituents. internal and external constituents. (Employees/Peers/(Employees/Peers/ Customers/Vendors/Community.)Customers/Vendors/Community.)Treated the term “servant leadership” as holy writ. (And Treated the term “servant leadership” as holy writ. (And “preached”“preached” “ “servant leadership” to others—new “non-managerial” hire or oldservant leadership” to others—new “non-managerial” hire or old pro, age 18 or 48.)pro, age 18 or 48.)


Created the sort of workplaces you’d like your kids toCreated the sort of workplaces you’d like your kids to inhabit. (Explicitly conscious of this “Would I want inhabit. (Explicitly conscious of this “Would I want mymy kids to work here?” litmus test.)kids to work here?” litmus test.)A “certifiable” “nut” about quality and safety and integrity. (More A “certifiable” “nut” about quality and safety and integrity. (More oror less regardless of any costs.)less regardless of any costs.)A notable few circumstances where you resigned rather thanA notable few circumstances where you resigned rather than compromise your bedrock beliefs.compromise your bedrock beliefs.Perfectionism just short of the paralyzing variety.Perfectionism just short of the paralyzing variety.

A self- and relentlessly enforced group standard of A self- and relentlessly enforced group standard of “ “EXCELLENCE-in-all-we-do”/“EXCELLENCE in ourEXCELLENCE-in-all-we-do”/“EXCELLENCE in our behavior toward one another.”behavior toward one another.”

Imagine looking back 5 Imagine looking back 5 years from now on the years from now on the prior 5 years: prior 5 years: What will What will

yyou be able to saou be able to sayy about about yyour … PEOPLE our … PEOPLE DEVELOPMENT DEVELOPMENT

SCORECARDSCORECARD? ? (What can you say about the last 5 years?)(What can you say about the last 5 years?)

2/year = 2/year = Legacy.Legacy.

2/year 2/year = =

legacy.legacy.

Promotion DecisionsPromotion Decisions

“life and “life and death death

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

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

managerial position if his managerial position if his vision focuses on people’s vision focuses on people’s

weaknesses rather rather than on their than on their

strengths.”.” —Peter Drucker, —Peter Drucker, The Practice of ManagementThe Practice of Management

Evaluation.Evaluation.

EVALUATING EVALUATING

PEOPLE = PEOPLE = #1#1

DIFFERENTIATORDIFFERENTIATORSource: Jack Welch, now Jeff Immelt onSource: Jack Welch, now Jeff Immelt on

GE’s top strategic skill ( GE’s top strategic skill (!!!!!!!!))

SelSelf-f-Evaluation.Evaluation.

““To develop To develop others, start others, start

with with yyourselfourself.”.”

—Marshall Goldsmith—Marshall Goldsmith

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

affect everaffect everyyone around one around yyouou is what is what

distindistingguishesuishes a superior a superior leader.”leader.”

—Edie Seashore (—Edie Seashore (Strategy + BusinessStrategy + Business #45) #45)

““How can a high-level leader like _____ How can a high-level leader like _____ be so out of touch with the truth about be so out of touch with the truth about

himself? It’s more common than you himself? It’s more common than you

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

accurate his self-assessment is likely to be.

The problem is an acute lack of The problem is an acute lack of feedback [especially on people issues].”feedback [especially on people issues].”

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

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

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

himself." himself." - Leo Tolstoy- Leo Tolstoy

"You will never change "You will never change your life until you change your life until you change something you do daily. something you do daily.

The secret of The secret of yyour our success is found in success is found in yyour our daildailyy routine routine." ." -- John C. Maxwell-- John C. Maxwell

““The biggest The biggest problem I shallproblem I shall ever face: the ever face: the management of management of Dale Carnegie.”Dale Carnegie.”

——Dale Carnegie, diary ofDale Carnegie, diary of

Hiring.Hiring.

““development can help great development can help great

people be even people be even better— better— but if but if I had a dollar to spend, I’d I had a dollar to spend, I’d

spendspend 70 cents70 cents getting the right person getting the right person

in the door.”in the door.” ——Paul Russell, Director, Leadership and Paul Russell, Director, Leadership and

Development, GoogleDevelopment, Google

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

asasppect of businessect of business

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

Source: Source: Wall Street JournalWall Street Journal, 10.29.08,, 10.29.08,

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

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

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

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

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

QuietQuiet

““We live with a value system that I call the Extrovert Ideal—the We live with a value system that I call the Extrovert Ideal—the omnipresent belief that the ideal self is gregarious, alpha, and omnipresent belief that the ideal self is gregarious, alpha, and

comfortable in the spotlight. The archetypal extrovert prefers action comfortable in the spotlight. The archetypal extrovert prefers action to contemplation, risk-taking to heed-taking, certainty to doubt. … We to contemplation, risk-taking to heed-taking, certainty to doubt. … We think that we value individuality, but all too often we admire one type think that we value individuality, but all too often we admire one type of individual … Introversion is now a second-class personality trait. … of individual … Introversion is now a second-class personality trait. …

The Extrovert Ideal has been documented in many The Extrovert Ideal has been documented in many studies. Talkative people, for example, are rated as studies. Talkative people, for example, are rated as smarter, better looking, more interesting, and more smarter, better looking, more interesting, and more

desirable as friends. Velocity of speech counts as well desirable as friends. Velocity of speech counts as well as volume: We rank fast talkers as more competent and as volume: We rank fast talkers as more competent and likeable than slow ones. But we make a grave mistake likeable than slow ones. But we make a grave mistake to embrace the Extrovert Ideal so unthinkingly.to embrace the Extrovert Ideal so unthinkingly. … As the … As the

science journalist Winifred Gallagher writes, ‘The glory of the science journalist Winifred Gallagher writes, ‘The glory of the disposition that stops to consider stimuli rather than rushing to disposition that stops to consider stimuli rather than rushing to

engage with them is its long association with intellectual and artistic engage with them is its long association with intellectual and artistic achievement. Neither E = mc squared or Paradise Lost was dashed off achievement. Neither E = mc squared or Paradise Lost was dashed off by a party animal.’ Even in less obviously introverted occupations, like by a party animal.’ Even in less obviously introverted occupations, like

finance, politics, and activism, some of the greatest leaps forward finance, politics, and activism, some of the greatest leaps forward were made by introverts … figures like Eleanor Roosevelt, Warren were made by introverts … figures like Eleanor Roosevelt, Warren

Buffett and Gandhi achieved what they did not in spite of but because Buffett and Gandhi achieved what they did not in spite of but because of their introversion.”of their introversion.” — —Susan Cain, Susan Cain,

Quiet: The Power of Introverts in a World That Can’t Stop TalkingQuiet: The Power of Introverts in a World That Can’t Stop Talking

““The next time you see a The next time you see a person with a composed face person with a composed face and a soft voice, remember and a soft voice, remember

that inside her mind she that inside her mind she might be solving an might be solving an

equation, composing a equation, composing a sonnet, designing a hat. She sonnet, designing a hat. She might, that is, be deploying might, that is, be deploying

the power of quiet.”the power of quiet.” — —Susan Cain, Susan Cain,

Quiet: The Power of Introverts in a World That Can’t Stop TalkingQuiet: The Power of Introverts in a World That Can’t Stop Talking

The Army KnowsThe Army Knows!!

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

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

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

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

same awareness?same awareness?

THE THE SERGEANTS SERGEANTS

RUN THE RUN THE ARMY. ARMY.

PERIOD.PERIOD.

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

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

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

Employee retention Employee retention && satisfaction satisfaction && productivity: productivity: 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 the First, Break All the Rules: What the World’s Greatest Managers Do DifferentlyRules: What the World’s Greatest Managers Do Differently

““People People leave leave

manamanaggersers not not companies.”companies.”

——Dave WheelerDave Wheeler

Suggested addition to your statement of Core Suggested addition to your statement of Core

Values: Values: “We are obsessed with “We are obsessed with developing a cadre of 1st line developing a cadre of 1st line managers that is second to managers that is second to

none—we understand that this none—we understand that this cadre per se is arguably one of cadre per se is arguably one of

our top two or three most our top two or three most important ‘Strategic Assets.’”important ‘Strategic Assets.’”

Training As Training As InvestmentInvestment

#1#1

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

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

function.function.

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

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

performing arts performing arts

groups--but groups--but not for for

the average business?the average business?

Is your CTO/Chief Training Officer your top paid “C-level” Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?job (other than CEO/COO)?If not, why not?If not, why not?

Are your top trainers paid as much as your top Are your top trainers paid as much as your top marketers and engineers?marketers and engineers?If not, why not?If not, why not?

Are your training courses so good they make you giggle Are your training courses so good they make you giggle and tingle?and tingle?If not, why not?If not, why not?

Randomly stop an employee in the hall: Can she/he Randomly stop an employee in the hall: Can she/he meticulously describe her/his development plan for the meticulously describe her/his development plan for the next 12 months?next 12 months?If not, why not?If not, why not?

Why is your world of business any different than the Why is your world of business any different than the (competitive) world of rugby, football, opera, theater, (competitive) world of rugby, football, opera, theater, the military?the military?If “people/talent first” and hyper-intense continuous training are If “people/talent first” and hyper-intense continuous training are laughably obviously for them, why not you? laughably obviously for them, why not you?

Gamblin’ ManGamblin’ Man

Bet:Bet: >> 5 of 10 CEOs see training >> 5 of 10 CEOs see training as expense rather than as expense rather than investment.investment.Bet:Bet: >> 5 of 10 CEOs see training >> 5 of 10 CEOs see training as defense rather than offense.as defense rather than offense.Bet:Bet: >> 5 of 10 CEOs see training >> 5 of 10 CEOs see training as “necessary evil” rather than as “necessary evil” rather than “strategic opportunity.”“strategic opportunity.”Bet:Bet: >> 8 of 10 CEOs, in 45-min >> 8 of 10 CEOs, in 45-min “tour d’horizon” of their “tour d’horizon” of their business, would not mention business, would not mention training.training.

Reductionist (!!) Reductionist (!!) Leadership Leadership

TrainingTraining

Are you a Are you a “professional” “professional” when it comeswhen it comes to to StrateStrateggicic ListeninListening?g?

Are you a Are you a “professional” when“professional” when

it comes to it comes to UsinUsingg meetinmeetinggs as a s as a pprimarrimaryy

leadershileadershipp tool tool??

Are you a Are you a “professional” “professional”

when it comes to when it comes to

OfferinOffering g helhelp?p?

Are you a Are you a “professional” “professional” when it comeswhen it comes to to EffectiveEffective

aappoloology?gy?

ARE YOU A ARE YOU A “PROFESSIONAL” “PROFESSIONAL” WHEN IT COMESWHEN IT COMES TO TO THETHE ARTART OFOF

APPRECIATIONAPPRECIATION??

Are you a Are you a “professional” “professional”

when it comes to when it comes to HirinHiring pg peoeopplele??

ARE YOU A ARE YOU A “PROFESSIONAL” “PROFESSIONAL”

WHEN IT COMES TO WHEN IT COMES TO DEVELOPINGDEVELOPING

PEOPLEPEOPLE??

Are you a Are you a “professional” “professional” when it comes when it comes to to evaluatinevaluating g

ppeoeoplplee? ?

ARE YOU A ARE YOU A “PROFESSIONAL” “PROFESSIONAL” WHEN IT COMESWHEN IT COMES TO TO PROMOTINGPROMOTING

PEOPLEPEOPLE??

Are you a Are you a “professional” “professional” when it comeswhen it comes

to … ? to … ?***The “real stuff” of effective organizational LEADERSHIP*The “real stuff” of effective organizational LEADERSHIP

Reductionist Leadership TrainingReductionist Leadership Training

““Aggressive ‘professional’ listener.”Aggressive ‘professional’ listener.”Expert at questioning. (Questioning Expert at questioning. (Questioning “professional.”)“professional.”)Meetings as leadership opportunity #1.Meetings as leadership opportunity #1.Creating a “civil society.”Creating a “civil society.”Expert at “helping.” (HelpingExpert at “helping.” (Helping “professional.”) “professional.”)Expert at holding productive conversations.Expert at holding productive conversations.Fanatic about clear communications.Fanatic about clear communications.Fanatic about training.Fanatic about training.Master of appreciation/acknowledgement.Master of appreciation/acknowledgement.Effective at apology.Effective at apology.Creating a culture of automatic helpfulness by all to all.Creating a culture of automatic helpfulness by all to all.Presentation excellence. Presentation excellence. Conscious master of body language.Conscious master of body language.Master of hiring. (Hiring Master of hiring. (Hiring “professional”)“professional”)Master of evaluating people.Master of evaluating people.Time manager par excellence.Time manager par excellence.Avid practitioner of MBWA/Managing By Wandering Around. Avid practitioner of MBWA/Managing By Wandering Around. Avid student of the process of influencing others per se. Avid student of the process of influencing others per se. Student of decision-making and devastating impact of irrational aspects Student of decision-making and devastating impact of irrational aspects thereof.thereof.Brilliantly schooled student of negotiation.Brilliantly schooled student of negotiation.Creating a no-nonsense execution culture.Creating a no-nonsense execution culture.Meticulous about employee development/100% of staff.Meticulous about employee development/100% of staff.Student of the power of “d”iversity (all flavors of difference).Student of the power of “d”iversity (all flavors of difference).Aggressive in pursuing gender balance.Aggressive in pursuing gender balance.Making team-building excellence everyone’s daily priority.Making team-building excellence everyone’s daily priority.Understanding value of matchless 1st-line management.Understanding value of matchless 1st-line management.Instilling “business sense” in one and all.Instilling “business sense” in one and all.

11/48/48(No kidding)(No kidding)

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

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

““We made mistakes, of course. Most of them were omissions We made mistakes, of course. Most of them were omissions

we didn’t think of when we initially wrote the software. we didn’t think of when we initially wrote the software. We We fixed them bfixed them byy doin doingg it over and over, it over and over, aaggain and aain and aggain.ain. We do the same today. While our We do the same today. While our

competitors are still suckingcompetitors are still sucking their thumbs trying to make the their thumbs trying to make the design perfect, we’re already on prototype versiondesign perfect, we’re already on prototype version

##55.. By the time our rivals are ready with wires By the time our rivals are ready with wires

and screws, we are on version and screws, we are on version ##1010.. It It

ggets back to ets back to pplanninlanningg versus actin versus acting: g: We We act from day oneact from day one; ; others others pplan how tolan how to pplanlan——for monthsfor months.”.” —Bloomberg by Bloomberg—Bloomberg by Bloomberg

Lesson47:Lesson47: WTTMSWTTMS

WW

WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTSTUFFSTUFFWINSWINS

““WE HAVE A WE HAVE A ‘STRATEGIC ‘STRATEGIC PLAN.’ IT’S PLAN.’ IT’S

CALLED CALLED DOING DOING THINGSTHINGS.”.” — Herb Kelleher

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

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

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

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

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

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

““DEMODEMO OR DIE!” OR DIE!”

Source: This was the approach championed by Source: This was the approach championed by NicholasNicholas NeNeggroropponteonte which vaulted his which vaulted his MITMIT MediaMedia LabLab to the forefront of IT-multimedia to the forefront of IT-multimedia

innovation. It was his successful alternative to the traditional innovation. It was his successful alternative to the traditional MIT-academic MIT-academic “publish or perish.”“publish or perish.” Negroponte’s rapid-prototyping Negroponte’s rapid-prototyping

version was emblematic of the times and the pace and the enormityversion was emblematic of the times and the pace and the enormity of the opportunity. (of the opportunity. (NYTimesNYTimes/0426.11)/0426.11)

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

““EXPERIMENT EXPERIMENT FEARLESSLY”FEARLESSLY”

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

“RELENTLESS TRIAL“RELENTLESS TRIAL AND ERROR” AND ERROR”

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

““Rose gardeners face a choice every spring. The long-term fate of a rose garden Rose gardeners face a choice every spring. The long-term fate of a rose garden depends on this decision. If you want to have the largest and most glorious roses of the depends on this decision. If you want to have the largest and most glorious roses of the neighborhood, you will prune hard. This represents a policy of low tolerance and tight neighborhood, you will prune hard. This represents a policy of low tolerance and tight

control. You force the plant to make the maximum use of its available resources, by control. You force the plant to make the maximum use of its available resources, by

putting them into the rose’s ‘core business.’ putting them into the rose’s ‘core business.’ Pruning hard is a dangerous Pruning hard is a dangerous policy in an unpredictable environment. Thus, if you are in policy in an unpredictable environment. Thus, if you are in a spot where you know nature may play tricks on you, you a spot where you know nature may play tricks on you, you may opt for a policy of high tolerance. You will never have may opt for a policy of high tolerance. You will never have the biggest roses, but you have a much-enhanced chance the biggest roses, but you have a much-enhanced chance

of having roses every year. You will achieve a gradual of having roses every year. You will achieve a gradual renewal of the plant. In short, tolerant pruning achieves renewal of the plant. In short, tolerant pruning achieves two ends: (1) two ends: (1) It makes it easier to cope with unexpected It makes it easier to cope with unexpected

environmental changesenvironmental changes. (2) . (2) It leads to a continuous It leads to a continuous restructuring of the plantrestructuring of the plant. The policy of tolerance . The policy of tolerance

admittedly wastes resources—the extra buds drain away admittedly wastes resources—the extra buds drain away nutrients from the main stem. But in an unpredictable nutrients from the main stem. But in an unpredictable environment, this policy of tolerance makes the rose environment, this policy of tolerance makes the rose

healthier in the long run.”healthier in the long run.” —Arie De Geus, —Arie De Geus, The Living CompanyThe Living Company

Screw it.Screw it.Just do it.Just do it.

——book title, Richard Bransonbook title, Richard Branson

FAIL.FAIL. FORWARD. FORWARD.

FAST.FAST.

““FAIL.FAIL. FORWARD. FORWARD.

FAST.”FAST.”High Tech CEO, Pennsylvania

““REWARDREWARD excellent failures. PUNISHPUNISH mediocre

successes.”—Phil Daniels, Sydney exec

Ideas Economy: Ideas Economy: CAN YOUR CAN YOUR

BUSINESS FAIL BUSINESS FAIL FAST ENOUGH TO FAST ENOUGH TO

SUCCEED?SUCCEED?Source: ad for Economist Conference/0328.13/Berkeley CA (caps are Source: ad for Economist Conference/0328.13/Berkeley CA (caps are EconomistEconomist))

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

WTTMSWTTMSASTMSUTFASTMSUTFWW

WTTMSWTTMSASTMSUTFASTMSUTFWW

WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTSTUFFSTUFFANDANDSCREWS SCREWS THE THE MOST MOST STUFF STUFF UPUP THETHEFASTESTFASTESTWINSWINS

““If things seem If things seem under control, under control, you’re just not you’re just not

going fast going fast enough.”enough.” —Mario Andretti—Mario Andretti

In Search of ExcellenceIn Search of Excellence /1982: /1982: The Bedrock “Eight Basics”The Bedrock “Eight Basics”

1. 1. A Bias for ActionA Bias for Action2. Close to the Customer2. Close to the Customer3. Autonomy and Entrepreneurship3. Autonomy and Entrepreneurship4. Productivity Through People4. Productivity Through People5. Hands On, Value-Driven5. Hands On, Value-Driven6. Stick to the Knitting6. Stick to the Knitting7. Simple Form, Lean Staff7. Simple Form, Lean Staff8. Simultaneous Loose-Tight8. Simultaneous Loose-Tight Properties Properties

1/4,0961/4,096

100%100%

1/5,0001/5,000

“YOU MISS “YOU MISS

100100%% OF OF

THE SHOTS YOU THE SHOTS YOU NEVER TAKE.”NEVER TAKE.”

—Wayne—Wayne GretzkyGretzky

We Are We Are WhatWhat

We Eat We Eat

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

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

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

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

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

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

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

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

Diversity:Diversity: “It is hardly possible to “It is hardly possible to overrate the value of placing overrate the value of placing human beings in contact with human beings in contact with persons dis-similar to themselves, persons dis-similar to themselves, and with modes of thought and and with modes of thought and action unlike those with which action unlike those with which they are familiar. Such they are familiar. Such communication has always been, communication has always been, and is peculiarly in the present and is peculiarly in the present age, one of the primary sources of age, one of the primary sources of progress.”progress.” —John Stuart Mill—John Stuart Mill

“How do dominant companies lose their

position? Two-thirds of Two-thirds of the time, thethe time, they py pick the ick the wronwrongg competitor to competitor to

worrworryy about about.”.” —Don Listwin, CEO, Openwave Systems/WSJ

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

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

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

Mike Bloomberg:Mike Bloomberg:

““Curiosity.”Curiosity.”

OuchOuch!!

“The Bottleneck …The Bottleneck …

“The Bottleneck is at the …The Bottleneck is at the … “Where are you likely to find people “Where are you likely to find people

with the with the least diversitleast diversityy of ex of expperienceerience, , the the larlarggest investment in the est investment in the ppastast,,

and the g and the greatest reverence for reatest reverence for industrindustryy do doggmama … …

Top of the Top of the Bottle”Bottle”

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

InnovateInnovate or Die: or Die:

Measure It!Measure It!

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

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

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

changer”changer” Scale? (At least 3???)

Innovation IndexInnovation Index:: Move Move

every project (definition) every project (definition) 22 notches up on the notches up on the

“WOW-ification “WOW-ification Scale”Scale” … … THIS THIS

WEEKWEEK. .

TGRs:TGRs:LBTsLBTs

LITTLE =LITTLE =

BIGBIG

Big carts =Big carts =

1.5X1.5XSource: WalmartSource: Walmart

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

$B$BSource: PepsiCoSource: PepsiCo

2X:2X: “When Friedman“When Friedman

slisligghtlhtly y curvedcurved the right angle of an the right angle of an

entrance corridor to one property, he entrance corridor to one property, he was ‘amazed at the magnitude of change was ‘amazed at the magnitude of change

in pedestrians’ behavior’—the in pedestrians’ behavior’—the percentage who entered increased from percentage who entered increased from

oneone--thirdthird to nearly to nearly twotwo--thirdsthirds.”.”

——Natasha Dow Schull, Natasha Dow Schull, Addiction By Design: Machine Gambling in Las VegasAddiction By Design: Machine Gambling in Las Vegas

Machine GamblingMachine Gambling

““Pleasing” odor #1 vs. Pleasing” odor #1 vs. “pleasing” odor #2: “pleasing” odor #2:

+45%+45% revenue revenue

Source:Source: “Effects of Ambient Odors on Slot-Machine Useage in Las Vegas “Effects of Ambient Odors on Slot-Machine Useage in Las Vegas Casinos,” reported inCasinos,” reported in Natasha Dow Schull, Natasha Dow Schull, Addiction By Design: Addiction By Design:

Machine Gambling in Las Vegas Machine Gambling in Las Vegas (66% revenue, 85% profit)(66% revenue, 85% profit)

Glaring Eyes:Glaring Eyes:

-62%-62%Source: PLOS ONE (via Source: PLOS ONE (via The Atlantic CITIESThe Atlantic CITIES /0429.13) /0429.13)

““Flash When I work with experimental digital gadgets, I am always reminded of Flash When I work with experimental digital gadgets, I am always reminded of how small changes in the details of a digital design can have profound unforeseen how small changes in the details of a digital design can have profound unforeseen

effects on the experiences of the people who are playing with it. The slightest effects on the experiences of the people who are playing with it. The slightest change in something as seemingly trivial as the ease of use of a button can change in something as seemingly trivial as the ease of use of a button can

sometimes alter behavior patterns.sometimes alter behavior patterns. For instance, For instance, Stanford University researcher Stanford University researcher

Jeremy Bailinson has Jeremy Bailinson has demonstrated that changing the demonstrated that changing the

height of one’s avatars in height of one’s avatars in immersive virtual reality immersive virtual reality

transforms self-esteem and transforms self-esteem and social self-perception.social self-perception. Technologies are Technologies are

extensions of ourselves, and, like the avatars in Jeremy’s lab, our identities extensions of ourselves, and, like the avatars in Jeremy’s lab, our identities can be shifted by the quirks of gadgets. It is impossible to work with information can be shifted by the quirks of gadgets. It is impossible to work with information

technology without also engaging in social engineering.”technology without also engaging in social engineering.” —Jaron Lanier,—Jaron Lanier, You Are Not a GadgetYou Are Not a Gadget

<TG<TGWandand … …

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

(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 experimentsOne week/5 experiments(3) (3) One month/Select best 2One month/Select best 2(4) (4) 60-90 days/Roll out60-90 days/Roll out

TGRs:TGRs:8/808/80

CustomersCustomers describing their service describing their service

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

the service experience they provide the service experience they provide asas

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

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

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

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

sir?”sir?”

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

the jetway.”the jetway.”

It It BEGINSBEGINS (and (and ENDSENDS) )

in the …in the …

PARKINGPARKING LOTLOT**

*Disney*Disney

<TG<TGWandand … …

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

TGRTGRSS..MANAGEMANAGE ’EM. ’EM.

MEASUREMEASURE ’EM. ’EM.***I use “manage-measure” a lot. Translation: These are*I use “manage-measure” a lot. Translation: These are

not “soft” ideas; they are exceedingly important things not “soft” ideas; they are exceedingly important things that can be managed—AND measured. that can be managed—AND measured.

““ExExpperienceseriences are as distinct are as distinct from servicesfrom services

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

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

DESIGNDESIGN!!

Design Design RulesRules!!

APPLEAPPLE market cap market cap > Exxon Mobil* > Exxon Mobil*

*August 2011*August 2011

Hypothesis:Hypothesis: DESIGNDESIGN is the is the pprincirincippalal

differencedifference

between between lovelove

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

““YouYou knowknow a a designdesign isis goodgood

whenwhen you you want want to to licklick itit.”.” —Steve Jobs—Steve Jobs

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

CCDDO*O**Chief *Chief DDesign Officeresign Officer

DESIGN:DESIGN:BEAUTIFULBEAUTIFUL

SystemsSystems

First Steps: First Steps: “Beauty Contest”!“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.

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

(CBSEO/ Chief BS Eradication Officer)

Systems: Systems: Must Must have.have.

Must Must hate. / hate. / MustMust design. design. Must …Must … unun-design.-design.

Architect Rem Koolhaas on his drive for Architect Rem Koolhaas on his drive for

clarity-simplicity:clarity-simplicity: “Often “Often my job is to my job is to

undo things.”undo things.”Source: Source: New YorkerNew Yorker

““Jobs was a true genius who Jobs was a true genius who revolutionized at least four industries. revolutionized at least four industries. But an inventor he was not. What Jobs But an inventor he was not. What Jobs

did was perfect other people’s did was perfect other people’s inventions. He optimized them. He had inventions. He optimized them. He had the will and the skill and the caliper eye the will and the skill and the caliper eye

to nail down the numbers to the far to nail down the numbers to the far right decimal places. He buffed and right decimal places. He buffed and

polished other people’s ideas until they polished other people’s ideas until they gleamed with the holy light of gleamed with the holy light of

irresistible retail commodities. irresistible retail commodities. Jobs Jobs wasn’t an idea man. He was a remix wasn’t an idea man. He was a remix

artistartist.”.”Source: “Reinventing the Inventor: In the age of Steve Jobs, it’s allSource: “Reinventing the Inventor: In the age of Steve Jobs, it’s all

about perfecting the final product. Nobody remembers the guy who about perfecting the final product. Nobody remembers the guy who had the idea in the first place.” —Lev Grossman/had the idea in the first place.” —Lev Grossman/TimeTime/1128.11/1128.11

“… “… this will this will be the be the

woman’s woman’s century …”century …”

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

I am certain, ladies and gentlemen,I am certain, ladies and gentlemen, that that this will be this will be

the woman’s the woman’s centurcentury.y. In the Portuguese language, In the Portuguese language,

words such as life, soul, and hope are of the feminine words such as life, soul, and hope are of the feminine

gender, as are other words like courage and sincerity.”gender, as are other words like courage and sincerity.”

——President Dilma Rousseff of BrazilPresident Dilma Rousseff of Brazil, 1st woman to, 1st woman to keynote the United Nations General Assembly (2011)keynote the United Nations General Assembly (2011)

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

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

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

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

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

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

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

““Forget CHINA, Forget CHINA, INDIA and the INDIA and the

INTERNET: Economic INTERNET: Economic Growth Is Driven by Growth Is Driven by

WOMENWOMEN.”.”

Source: Headline, Economist

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

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

$28 trillion$28 trillion in the next five years. in the next five years.

Their $13 trillion in total yearly earnings could reach $18 trillion in the Their $13 trillion in total yearly earnings could reach $18 trillion in the same period.same period. In aggregate, women represent a growth market bigger than China and India combined—more In aggregate, women represent a growth market bigger than China and India combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer. than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer.

And yet many companies do just that—even ones that are confidant that they have a winning strategy when it And yet many companies do just that—even ones that are confidant that they have a winning strategy when it comes to women. Consider Dell’s …”comes to women. Consider Dell’s …”

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

““Women areWomen are THETHE majority majority

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

““The The MOST MOST SIGNIFICANT SIGNIFICANT

VARIABLEVARIABLE inin EVERYEVERY sales situation is thesales situation is the

GENDERGENDER of the buyer, and of the buyer, and more importantly, how the more importantly, how the

salesperson communicates to salesperson communicates to the buyer’s gender.”the buyer’s gender.”

—Jeffery Tobias Halter, Selling to Men, Selling to Women

Sales/Aftersales ProcessSales/Aftersales Process

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

Source: Marti BarlettaSource: Marti Barletta

The Perfect Answer

Jill and Jack buy slacks in black…

““Women don’t ‘buy’ Women don’t ‘buy’

brands. brands. TheTheyy ‘j‘join’ oin’

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

““Research Research suggests that to suggests that to succeed, start by succeed, start by

promoting promoting women.”women.” —Nicholas Kristof, “Twitter, Women, and —Nicholas Kristof, “Twitter, Women, and

Power,” Power,” NYTimesNYTimes, 1024.13, 1024.13

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find that New Studies find that

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

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

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

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

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

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

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

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

diversitydiversity..

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

““Headline 2020:Headline 2020: Women Women

Hold Hold 8080

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

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

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

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

Portrait of a Female InvestorPortrait of a Female Investor

1. Trade less than men do1. Trade less than men do2. Exhibit less overconfidence—more likely to know2. Exhibit less overconfidence—more likely to know what they don’t know what they don’t know3. Shun risk more than male investors do3. Shun risk more than male investors do4. Less optimistic, more realistic than their male4. Less optimistic, more realistic than their male counterparts counterparts5. Put in more time and effort researching possible5. Put in more time and effort researching possible investments—consider details and alternate points investments—consider details and alternate points of view of view6. More immune to peer pressure—tend to make6. More immune to peer pressure—tend to make decisions the same way regardless of who’s watching decisions the same way regardless of who’s watching7. Learn from their mistakes7. Learn from their mistakes8. Have less testosterone than men do, making them8. Have less testosterone than men do, making them less willing to take extreme risks, which, in turn, less willing to take extreme risks, which, in turn, could lead to less extreme market cycles could lead to less extreme market cycles

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

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

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

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

and hold on for the long term)

““McKinsey & Company found McKinsey & Company found that the international that the international

companies with more women on companies with more women on

their corporate boards their corporate boards far far outperformedoutperformed the the

average company in return on average company in return on equity and other measures. equity and other measures.

Operating profit was 56 percent Operating profit was 56 percent higher.” higher.” —Nicholas Kristof, “Twitter, Women, and Power,” —Nicholas Kristof, “Twitter, Women, and Power,” NYTimesNYTimes, 1024.13, 1024.13

14,00014,00020,00020,000

3030

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

3030/Craigslist/Craigslist

““There’s no use trying,’ said Alice. There’s no use trying,’ said Alice. ‘One cannot believe impossible ‘One cannot believe impossible

things.’ ‘I daresay you haven’t had things.’ ‘I daresay you haven’t had much practice,’ said the Queen. much practice,’ said the Queen.

‘When I was your age, I always did it ‘When I was your age, I always did it

for half an hour a day. for half an hour a day. Why, Why, sometimes I’ve believed as sometimes I’ve believed as

manmanyy as six im as six imppossible ossible thinthinggs before breakfasts before breakfast.’”.’”

— — Lewis Carroll Lewis Carroll

““We all agree your We all agree your theory is crazy. theory is crazy. The The

qquestion, which uestion, which divides us, is divides us, is

whether it is crazwhether it is crazyy enouenougghh.”.” —Niels Bohr, to Wolfgang Pauli—Niels Bohr, to Wolfgang Pauli

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!!

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?

ExcellenceExcellence!!

SEGEW 2014: SERVICE!-ENGAGEMENT!-GROWTH!-EXCELLENCE!-WOW!SEGEW 2014: SERVICE!-ENGAGEMENT!-GROWTH!-EXCELLENCE!-WOW!

Employees as 1st customersEmployees as 1st customers Acknowledgement & RespectAcknowledgement & Respect

Commitment to Personal Growth & Training-to-Die-ForCommitment to Personal Growth & Training-to-Die-For EngagementEngagement

Work Worth DoingWork Worth DoingPeerless 1st-line Leadership Cadre Committed to Employee GrowthPeerless 1st-line Leadership Cadre Committed to Employee Growth

MBWA ObsessionMBWA ObsessionSeamless Cross-functional ExcellenceSeamless Cross-functional Excellence

360-degree “Social” Engagement Inside & Outside the Firm360-degree “Social” Engagement Inside & Outside the FirmCo-creation of EverythingCo-creation of Everything

A Moral Service Ethos A Moral Service Ethos (Each other/Vendors/Customers/Customers’ Customers/Communities)(Each other/Vendors/Customers/Customers’ Customers/Communities)

An Ethos of Helping (“On the Bus” or “Off the Bus”)An Ethos of Helping (“On the Bus” or “Off the Bus”)Scintillating Design—Aesthetics & Functionality—Pervades EveryScintillating Design—Aesthetics & Functionality—Pervades Every

Aspect of the Business (Inside & Outside)Aspect of the Business (Inside & Outside)Provision of Extraordinary Customer (& Employee) ExperiencesProvision of Extraordinary Customer (& Employee) Experiences

Obsession With TGRs/Things Gone RightObsession With TGRs/Things Gone RightMatchless QualityMatchless Quality

““Services Added”/Extended-Integrated-Partnered SolutionsServices Added”/Extended-Integrated-Partnered Solutions to Broad Customer Needsto Broad Customer Needs

Relentless Experimentation (“Bias for Action”/Instant Prototyping/Relentless Experimentation (“Bias for Action”/Instant Prototyping/ Celebration of “Excellent Failures”/Transparency/Celebration of “Excellent Failures”/Transparency/

Pursuit of “Multipliers”)Pursuit of “Multipliers”)JOY!JOY! (In All We Do) (In All We Do)

GROWTH! GROWTH! (In All We Do)(In All We Do)WOW!WOW! (In All We Do) (In All We Do)

EXCELLENCE!EXCELLENCE! (In All We Do) (In All We Do)

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

EXCELLENCE is … EXCELLENCE is … THE THE NEXTNEXT FIVE FIVE

MINUTESMINUTES..

Excellence is the Excellence is the nextnext five five

minutesminutes … …

OR NOT.OR NOT.

“ amateurs talk about strategy. professionals talk about logistics.”* —general omar bradley,...

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