conrad hilton, at a gala celebrating his career, was asked …

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

was asked … was asked …

The “3H The “3H Theory of Theory of

Everything”Everything”

All you need to know …All you need to know …

HiltonHiltonHowardHowardHerbHerb

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

was asked, was asked, “What was the most important lesson you’ve learned in your long and distinguished

career?” His immediate His immediate answer …answer …

““remember remember to tuck the to tuck the

shower curtain shower curtain inside the inside the bathtubbathtub””

““Execution Execution isis strategy.”strategy.”

—Fred Malek—Fred Malek

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

straightforward. Pickstraightforward. Pick a general direction a general direction

and implementand implement like hell” like hell” —Jack Welch—Jack Welch

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

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

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

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

InternalInternal organizational organizational excellence = excellence =

Deepest “Blue Deepest “Blue Ocean”Ocean”

““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,” on the occasion of , “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots union took out a full-page ad in USA Today thanking HK for all he had done; union took out a full-page ad in USA Today thanking HK for all he had done; across the way in Dallas, American Airlines’ pilots were picketing the Annual across the way in Dallas, American Airlines’ pilots were picketing the Annual

Meeting)Meeting)

3H3H: : HHilton, ilton, HHoward, oward, HHerberb

****Sweat the details!Sweat the details!****Stay in touch!Stay in touch!****It’s all about the people!It’s all about the people!

Leader’s Leader’s oathoath

of office of office

Definition of a boss/supervisor/ Definition of a boss/supervisor/

leader:leader: CannotCannot Do Do the Work That the Work That Needs to Be Needs to Be

DoneDone

““Leaders Leaders

‘‘dodo’’ people. people.

Period.”Period.” —Anon.

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

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

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

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

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

LeadershipLeadership is a sacred is a sacred

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

Excellence.Excellence.Service.Service.Period.Period.

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

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

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

EXCELLENCE. Always.EXCELLENCE. Always.If not EXCELLENCE, what?If not EXCELLENCE, what?

If not EXCELLENCE now, when?If not EXCELLENCE now, when?

EXCELLENCE is not an "aspiration."EXCELLENCE is not an "aspiration."EXCELLENCE is not a "journey."EXCELLENCE is not a "journey."

EXCELLENCE is the next five minutes.EXCELLENCE is the next five minutes.

Organizations exist to SERVE. Period.Organizations exist to SERVE. Period.Leaders exist to SERVE. Period.Leaders exist to SERVE. Period.

SERVICE is a beautiful word.SERVICE is a beautiful word.SERVICE is character, community, commitment. SERVICE is character, community, commitment.

(And profit.)(And profit.)

SERVICE is a beautiful word. SERVICE is a beautiful word. SERVICE is not "Wow." SERVICE is not "Wow."

SERVICE is not "raving fans.“SERVICE is not "raving fans.“ SERVICE is not "a great experience." SERVICE is not "a great experience."

Service is "just" that—Service is "just" that—SERVICESERVICE..

More than one More than one route forwardroute forward

14,00014,00020,00020,000

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

3030/Craigslist/Craigslist

The greatest dangerThe greatest dangerfor most of usfor most of us

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

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

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

MichelangeloMichelangelo

““Insanely Insanely Great”Great”

Steve JobsSteve Jobs

““Radically Radically thrilling”thrilling”

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

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

—Hajime Mitarai, Canon—Hajime Mitarai, Canon

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

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

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

dodo.”.” —Jerry Garcia—Jerry Garcia

Tom Peters’Tom Peters’

Excellence.Excellence.Always.Always.

AL BUSTAN PALACEAL BUSTAN PALACEMuscat/03 August 2010Muscat/03 August 2010

Part Part ONEONE

Little =Little =

BIGBIG***Thank you, Mr. Prime Minister*Thank you, Mr. Prime Minister

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

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

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

““No” = No” = 2*2**Yes Bank*Yes Bank

The Commerce Bank ModelThe Commerce Bank Model

“every computer at Commerce Bank has a “every computer at Commerce Bank has a

specialspecial redred keykey on it that on it that

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

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

Source: Source: Fans! Not Customers. How Commerce Bank Created a Super-Fans! Not Customers. How Commerce Bank Created a Super-growth Business in a No-growth Industrygrowth Business in a No-growth Industry, Vernon Hill & Bob Andelman, Vernon Hill & Bob Andelman

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

Source: Graniterock Co.Source: Graniterock Co.

It It BEGINSBEGINS (and (and ENDSENDS) )

in the …in the …

parkingparking lotlot**

*Disney*Disney

Big carts =Big carts =

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

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

$B$BSource: PepsiCoSource: PepsiCo

““Power Power Freaks” Move Freaks” Move

Things Around!Things Around!

>100 >100 feet = feet = 100 100

milesmiles

Geologists + Geologists + Geophysicists + Geophysicists +

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

OilOil

XFX = #1* **XFX = #1* ***Cross-functional eXcellence*Cross-functional eXcellence

**Execution, Innovation, Speed**Execution, Innovation, Speed

<TG<TGWWand …and …

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

2-cent 2-cent candycandy

““May I clean May I clean your your

glasses, glasses, sir?”*sir?”*

*Kingfisher Air*Kingfisher Air

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

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

5 5 pianospianos ; ;

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

entertainment per month).entertainment per month).

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

nonenone!!

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

nonenone of THE top 15 of THE top 15

factors determining factors determining PPatient atient

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

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

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

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

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

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

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

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

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

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

““KindnesKindness is s is

free.”free.”

The “krp The “krp Theory of Theory of

Everything”Everything”

K = R = K = R = PP

Kindness = Repeat business = Profit.Kindness = Repeat business = Profit.

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

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

K = R = PK = R = PKindness = Repeat business = Profit.Kindness = Repeat business = Profit.

Equations/Expanded:Equations/Expanded:

X = S = PX = S = PeXcellence = Satisfied customers = ProfiteXcellence = Satisfied customers = Profit

X + K = R = P+X + K = R = P+eXcellence + Kindness = Repeat business = Profit+eXcellence + Kindness = Repeat business = Profit+

X + K + W = R + N = P++X + K + W = R + N = P++eXcellence + Kindness + Wow = Repeat business + New business = Profits++eXcellence + Kindness + Wow = Repeat business + New business = Profits++

““Perception Perception is allis all

there is”there is”

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

>>>>PerfectionPerfection

Acquire vs. maintain*:Acquire vs. maintain*:

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

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

Potlatch.Potlatch.

#10#10

““Experiences Experiences are as distinct are as distinct

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

Experience Economy: Work Is Theatre & Every Business a Stage

(1)(1) Amenable to rapid Amenable to rapid experimentation/failure experimentation/failure

“free” “free” (No bad “PR,” No $$)(No bad “PR,” No $$)(2)(2) Quick to implement/Quick to Quick to implement/Quick to Roll outRoll out(3)(3) Inexpensive to implement/ Inexpensive to implement/ Roll outRoll out(4)(4) Huge multiplier Huge multiplier(5)(5) An “Attitude” An “Attitude”(6) (6) Does not by and large require aDoes not by and large require a “ “power position” from which power position” from which

toto launch experiments.launch experiments.

#11#11

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

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

The Value-added Ladder

ServicesServicesGoodsGoods

Raw Materials Raw Materials

The Value-added Ladder

Scintillating Scintillating EXPERIENCESEXPERIENCES

ServicesServicesGoodsGoods

Raw Materials Raw Materials

CCXXOO**Chief eXperience Officer

#12#12

All EAll Eqqual ual ExceExcepptt … …

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

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

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

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

NorioNorio OhgaOhga

““Design is Design is

treated like treated like a religiona religion at at

BMW.”BMW.” —Fortune—Fortune

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

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

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

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

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

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

Aesthetics what McDonald’s was to the Age of Aesthetics what McDonald’s was to the Age of Convenience or Ford was to the Age of Mass ProductionConvenience or Ford was to the Age of Mass Production—the touchstone success story, the exemplar of … the —the touchstone success story, the exemplar of … the

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

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

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

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

Hypothesis:Hypothesis: DESIGNDESIGN is is the pthe principalrincipal

differencedifference between love between love

and hate! and hate!

Not optional …Not optional …

CCDDOO**Chief DesignDesign Officer

““Design is Design is evereveryythinthing. g. Everything is Everything is desidesiggnn.”.”

““We are We are allall designers.” designers.”

Inspiration:Inspiration: The Power of Design: A Force for The Power of Design: A Force for Transforming Everything, Transforming Everything, Richard FarsonRichard Farson

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

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

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

University of TorontoUniversity of Toronto

#13#13

Back to the Back to the future: “beyond” future: “beyond” micro-marketingmicro-marketing

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

Economic Growth Is Economic Growth Is Driven by Driven by

WomenWomen.”.”

Source: Headline, Economist

““Women Women areare thethe

majority majority market”market”

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

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$20 trillion in consumer spending, and that figure could climb as high as in consumer spending, and that figure could climb as high as

$28 trillion$28 trillion in the next five years. Their in the next five years. Their $13 trillion$13 trillion in total yearly earnings in total yearly earnings

could reach could reach $18 trillion$18 trillion in the same period. In aggregate, women represent a in the same period. In aggregate, women represent a growth market bigger than China and India combined—more than twice as big in 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 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 female consumer. And yet many companies do just that—even ones that are

confidant that they have a winning strategy when it comes to women. Consider confidant that they have a winning strategy when it comes to women. Consider Dell’s …”Dell’s …” —Michael Silverstein and Kate Sayre, “The Female Economy,” —Michael Silverstein and Kate Sayre, “The Female Economy,” HBRHBR, ,

09.0909.09

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

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

ahead of them.”ahead of them.” —Bill

Novelli, 50+: Igniting a Revolution to Reinvent America

7/17/133

44-6544-65:: “New “New Customer Customer Majority”Majority” * *

*45% larger than 18-43; 60% larger by 2010*45% larger than 18-43; 60% larger by 2010

Source: Source: Ageless MarketingAgeless Marketing, David Wolfe & Robert Snyder, David Wolfe & Robert Snyder

We are the We are the Aussies & Kiwis &Aussies & Kiwis & Americans & CanadiansAmericans & Canadians. . We are the We are the Western EuropeansWestern Europeans & & JapaneseJapanese. We are . We are the the fastest growingfastest growing, the , the biggestbiggest, the , the

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

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

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

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

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

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

have arrived!have arrived!

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

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

needs are so needs are so poorlpoorlyy

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

55+ > 55-55+ > 55-**

*“[55-plus] are more active in online finance,*“[55-plus] are more active in online finance, shopping and entertainment than those under 55?”shopping and entertainment than those under 55?” — —Forrester Research.(Forrester Research.(USA TodayUSA Today, 8 January 2009), 8 January 2009)

#14#14

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

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

$50B+*$50B+**IBM Global Services/*IBM Global Services/

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

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

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

AmericaAmerica”” —Headline/BW/2004

MasterCard MasterCard AdvisorsAdvisors

HuHuggee:: Customer

SatisfactionSatisfaction versus Customer

SuccessSuccess

The Value-added Ladder/ OPPORTUNITY-SEEKINGOPPORTUNITY-SEEKING

Customer Success/ Customer Success/ Gamechanging Gamechanging

SolutionsSolutionsScintillating Experiences

ServicesGoods

Raw Materials

Part Part TWOTWO

#15#15

19771977

MBWMBWAA

Managing By Wandering Around/Managing By Wandering Around/HPHP

19821982

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

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

““Breakthrough” 82*Breakthrough” 82*

People! People! CustomersCustomers

! ! Action! Action! Values! Values!

**In Search of ExcellenceIn Search of Excellence

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

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

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

relationships)relationships)

#16#16

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

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

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

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

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

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

“… “… it is it is the the

game.”game.”

3030--

fold!fold!

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

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

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

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

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

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

InternalInternal organizational organizational excellence = excellence =

Deepest “Blue Deepest “Blue Ocean”Ocean”

Internal Internal organizational organizational excellence = excellence =

““BrandBrand insideinside””

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

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

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

#17#17

20072007SiberiaSiberia

Why in the Why in the

World did World did youyou

go to go to SiberiaSiberia??

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

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

#18#18

20072007SydneSydne

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

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

… … no less than no less than CathedralsCathedrals

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

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

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

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

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

worth worth doingdoing.”.”

——Richard BransonRichard Branson

““I have always I have always believed that the believed that the

purpose of the purpose of the corporation is to be a corporation is to be a

blessing to the blessing to the employees.”employees.” * * —Boyd Clarke—Boyd Clarke

*TP: An “organization” is, in fact and after all is said and *TP: An “organization” is, in fact and after all is said and done, a/the “house” in which most of us “live” most of the done, a/the “house” in which most of us “live” most of the

time. time.

#19#19

““We are a We are a ‘Life ‘Life

Success’ Success’ Company.”Company.”

Dave Liniger, founder, RE/MAX

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

against tasks. Leadership against tasks. Leadership

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

is someone who is someone who helhelpps s ppeoeopple le

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

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

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

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

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

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

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

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

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

speechspeech

The Dream ManagerThe Dream Manager —Matthew Kelly—Matthew Kelly

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

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

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

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

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

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

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

customers.”customers.”

Words!Words!

“Stretch” “Encourage” “Stretch” “Encourage” “Empower”“Empower”

vs.vs.

“Dreams come true” “Dreams come true” “Life Success Co.”“Life Success Co.”

#20#20

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

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

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

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

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

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

The Customer The Customer Comes SecondComes Second

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

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

pparadoxicallaradoxicallyy does not does not ggo through the o through the gguest. In fact it wouldn’t uest. In fact it wouldn’t be totallbe totallyy wron wrongg to say that the to say that the gguest has nothinuest has nothingg to do with it to do with it.. True hostmanship leaders focus on their employees. What drives True hostmanship leaders focus on their employees. What drives

exceptionalism is finding the right people and getting them to exceptionalism is finding the right people and getting them to love their work and see it as a passion. ... The guest comes into love their work and see it as a passion. ... The guest comes into the picture only when you are ready to ask, ‘the picture only when you are ready to ask, ‘Would Would yyou ou pprefer to refer to

stastayy at a hotel where the staff love their work or where at a hotel where the staff love their work or where manamanaggement has made customers its hiement has made customers its higghest hest ppriorityriority?’”?’”

““We went through the hotel and made a ... We went through the hotel and made a ... ‘consideration ‘consideration

renovation.’renovation.’ Instead of redoinInstead of redoingg bathrooms, bathrooms, dinindiningg rooms, and rooms, and gguest rooms, we uest rooms, we ggave ave emempploloyyees new uniforms, bouees new uniforms, bougght flowers ht flowers and fruit, and chanand fruit, and changged colorsed colors.. Our focus was Our focus was totally on the staff. They were the ones we wanted to make totally on the staff. They were the ones we wanted to make happy. We wanted them to wake up every morning excited happy. We wanted them to wake up every morning excited

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

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

#21#21

Brand Brand = =

Talent.Talent.

Our Mission

To develop and manage To develop and manage talent;talent;

to apply that talent,to apply that talent,throughout the world, throughout the world,

for the benefit of clients;for the benefit of clients;to do so in partnership; to do so in partnership;

to do so with profit.to do so with profit.

#22#22

TP: TP: “How to throw

$500,000 into

the sea in one easy

lesson!!”

< CAPEX< CAPEX> People!> People!

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

#23#23

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

““Development can help great Development can help great

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

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

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

Development, Google Development, Google

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

asasppect of ect of businessbusiness and yet and yet

remains woefully remains woefully misunderstood.”misunderstood.”

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

Geoff Smart and Randy StreetGeoff Smart and Randy Street

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

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

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

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

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

Bo’s Lasting LessonsBo’s Lasting Lessons

““Character is more crucial now Character is more crucial now than ever, because in times of than ever, because in times of

great uncertainty past great uncertainty past performance is no indicator of performance is no indicator of

future performance. future performance. Experience falls away and all Experience falls away and all

you’re left with is character.”you’re left with is character.” ——David Rothkopf, founder of a firm that helps helps chief David Rothkopf, founder of a firm that helps helps chief

executives manage risksexecutives manage risks

#24#24

2/year 2/year = =

legacy.legacy.

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

name the … name the … three three peoplepeople … whose growth you’ve … whose growth you’ve

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

heading in the next 12 months. Please explain in painstaking detail heading in the next 12 months. Please explain in painstaking detail your development strategy in each case. Please tell me your biggest your development strategy in each case. Please tell me your biggest development disappointment—looking back, could you or would you development disappointment—looking back, could you or would you have done anything differently? Please tell me about your greatest have done anything differently? Please tell me about your greatest

development triumph—and disaster—in the last five years. Whatdevelopment triumph—and disaster—in the last five years. What are the ‘three big things’ you’ve learned about helping people are the ‘three big things’ you’ve learned about helping people

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

#25#25

#1#1 cause of cause of

employee employee Dis-satisfaction?Dis-satisfaction?

Employee retention & satisfaction:Employee retention & satisfaction:

OverwhelminOverwhelminggllyy based on the based on the

first-line first-line manamanagger!er!

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

Capital Asset ICapital Asset I

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

Capital Asset IICapital Asset II

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

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

#26#26

53 = 53 = 5353* *** ** *No “bit players”*No “bit players”**6B+ = 6B+**6B+ = 6B+

Part Part THREETHREE

#27#27

Skip the mapSkip the map

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

or …or …

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

1. Have you in the1. Have you in the last 10 days … last 10 days … visited a visited a customecustomer?r?2. Have you called a2. Have you called a customer … customer … TODAYTODAY??

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

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

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

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

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

the mark.)the mark.)

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

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

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

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

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

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

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

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

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

Part Part FOURFOUR

#28#28

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

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

1818 secondsseconds

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

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

[cont.][cont.]

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

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

If If you agree with the above, shouldn’t listening be ... a Core you agree with the above, shouldn’t listening be ... a Core

Value?Value?If you agree with the above, shouldn’t listening be ... perhaps If you agree with the above, shouldn’t listening be ... perhaps Core Value #1?* Core Value #1?* (*“We are Effective Listeners—we treat (*“We are Effective Listeners—we treat Listening EXCELLENCE as the Centerpiece of our Commitment Listening EXCELLENCE as the Centerpiece of our Commitment to Respect and Engagement and Community and Growth.”)to Respect and Engagement and Community and Growth.”)If you agree, shouldn’t listening be ... a Core Competence?If you agree, shouldn’t listening be ... a Core Competence?If you agree, shouldn’t listening be ... Core Competence #1?If you agree, shouldn’t listening be ... Core Competence #1?If you agree, shouldn’t listening be ... an explicit “agenda item” If you agree, shouldn’t listening be ... an explicit “agenda item” at every Meeting?at every Meeting?If you agree, shouldn’t listening be ... our Strategy—per se? If you agree, shouldn’t listening be ... our Strategy—per se? (Listening = Strategy.)(Listening = Strategy.)If you agree, shouldn’t listening be ... the #1 skill we look for in If you agree, shouldn’t listening be ... the #1 skill we look for in Hiring (for every job)?Hiring (for every job)?

If you agree, shouldn’t listening be ... the #1 attribute we If you agree, shouldn’t listening be ... the #1 attribute we examine in our Evaluations?examine in our Evaluations?If you agree, shouldn’t listening be ... the #1 skill we look for If you agree, shouldn’t listening be ... the #1 skill we look for in Promotion decisions?in Promotion decisions?If you agree, shouldn’t listening be ... the #1 Training priority If you agree, shouldn’t listening be ... the #1 Training priority at every stage of everyone’s career—from Day #1 to Day at every stage of everyone’s career—from Day #1 to Day LAST?LAST?If you agree, what are you going to do about it ... in the next If you agree, what are you going to do about it ... in the next 30 MINUTES?30 MINUTES?If you agree, what are you going to do about it ... at your If you agree, what are you going to do about it ... at your NEXT meeting?NEXT meeting?If you agree, what are you going to do about it ... by the end If you agree, what are you going to do about it ... by the end of the DAY?of the DAY?If you agree, what are you going to do about it ... in the next If you agree, what are you going to do about it ... in the next 30 DAYS?30 DAYS?If you agree, what are you going to do about it ... in the next If you agree, what are you going to do about it ... in the next 12 MONTHS?12 MONTHS?

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

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

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

Carnegie

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

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

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

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

—Sara Lawrence-Lightfoot, Respect

*Listening is of the*Listening is of the

utmost … utmost … strategic importance! importance!

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

core value ! !

*Listening is … *Listening is … trainable !!

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

*Listening is a … *Listening is a …

professionprofession!!

Listen = “Profession” =

Study = practice = evaluation =

Enterprise value

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

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

engageengage all with whom all with whom

we work."we work."

#29#29

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

“profession”]“profession”] of. of.

#30#30

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

—Robert Louis Stevenson

Sales > Sales > MarketingMarketing

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

——Carolyn MarlandCarolyn Marland

#31#31

““The The fourfour most most importantimportant wordswords in any in any

organization are …organization are …

The four most important words in any organizationThe four most important words in any organization

are …are … “What do “What do youyou

think?”think?”

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

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

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

[Count!] [Practice [Practice

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

STRATEGIC skill!]skill!]

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

The The “one line of code!”

AxiomAxiom

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

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

other people get what other people get what

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

#32#32

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

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

—William James—William James

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

1010 years years

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

[Count ‘em!]

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

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

*appreciation is of the*appreciation is of the

utmost … utmost … strategicstrategic importance! importance!

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

core core valuevalue ! !

*appreciation is … *appreciation is … trainabletrainable !!

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

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

otisotis

#33#33

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

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

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

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

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

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

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

COMPLETE RUPTURE.COMPLETE RUPTURE.

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

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

*effective repair is …*effective repair is …

trainabletrainable !!

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

professionprofession ! !

““One of the secrets of One of the secrets of a long and fruitful life a long and fruitful life

is to forgive everybody is to forgive everybody of everything every of everything every night right before night right before

going to bed.”going to bed.” —Bernard Baruch—Bernard Baruch

#34#34

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

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

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

*Thoughtfulness is of the*Thoughtfulness is of the

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

*Thoughtfulness is … *Thoughtfulness is … trainabletrainable !!

*Thoughtfulness is a … *Thoughtfulness is a …

professionprofession !!

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

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

and appreciating heart.”and appreciating heart.”

—Henry Clay

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

Ben/teaBen/teaNorm/teaNorm/tea

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

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

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

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

GE Energy/make friends risk assessmentGE Energy/make friends risk assessmentGWB/check the invitation listGWB/check the invitation list

GHWB/T-notesGHWB/T-notesHank/60 callsHank/60 callsMarkM/5K-5MMarkM/5K-5M

Delaware/show upDelaware/show up

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

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

Women/genesWomen/genesBanker/after churchBanker/after church

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

#35#35

problem #1.Opportunity

X X =XFX*=XFX*

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

Never Never waste a waste a lunch!lunch!

????????

% XF % XF lunches*lunches*

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

Lunch Lunch > SAP/> SAP/OracleOracle

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

through the through the develodeveloppmentment ofof friendshifriendshippss.”.”

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

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

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

dividends during his future coalition commanddividends during his future coalition command

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

RReturn eturn OOn n

IInvestment In nvestment In

RRelationshipselationships

C(I) > C(E)C(I) > C(E)LunchLunchKudosKudosLearning/ Presence/PresentationsLearning/ Presence/PresentationsFacetime C(E)Facetime C(E)TransparencyTransparencyAwardsAwardsCo-locate/Geologists-GeophysicistsCo-locate/Geologists-GeophysicistsTime!!!!!!!!!!!!!!!!!!!!!!!!!!Time!!!!!!!!!!!!!!!!!!!!!!!!!!Motherhood (“If don’t take credit …)Motherhood (“If don’t take credit …)Staff C.Sat./UnicreditStaff C.Sat./Unicredit

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

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

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

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

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

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

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

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

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

#36#36

450/8450/8

Lisbon/New Biz:Lisbon/New Biz:

WeeksWeeks to …to …

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

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

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

gateway to diverse markets.’”

——Charles HandyCharles Handy

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

there tothere to ‘‘helhelpp its its customers customers

wherever thewherever theyy are’are’.”.”

——Charles HandyCharles Handy

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

in ICU. in ICU.

50%50% stays result stays result

in “serious complication”in “serious complication”

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

****Peter PronovostPeter Pronovost, Johns Hopkins, , Johns Hopkins, 20012001**Checklist, line infections**Checklist, line infections**1/3**1/3rdrd at least one error when he started at least one error when he started**Nurses/permission to stop procedure **Nurses/permission to stop procedure if doc, other not following checklistif doc, other not following checklist**In 1 year, 10-day line-infection rate:**In 1 year, 10-day line-infection rate:

11% to … 11% to … 0%0%

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

Beauty. Beauty. Grace. Grace.

Clarity. Clarity. Simplicity.Simplicity.

#37#37

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

SmotheredSmothered Its Idea Culture Its Idea Culture

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

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

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

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

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

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

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

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

Okakura, Okakura, The Book of TeaThe Book of Tea

Part Part FIVEFIVE

#38#38

1/401/40

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

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

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

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

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

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

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

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

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

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

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

BloombergBloomberg

““ExperimenExperiment t

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

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

Culture of PrototypingCulture of Prototyping

“Effective prototyping may “Effective prototyping may

be be thethe most most valuablevaluable core core competencecompetence an an

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

Think about It!?Think about It!?

Innovation Innovation = = Reaction to the Reaction to the

PrototypePrototype

Source: Michael SchrageSource: Michael Schrage

#39#39

““Fail .Fail . Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

Read This!Read This!

Richard FarsonRichard Farson

& Ralph Keyes: & Ralph Keyes: Whoever Whoever Makes the Most Makes the Most Mistakes Wins: Mistakes Wins: The Paradox of The Paradox of

InnovationInnovation

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

inefficiencinefficiencyy, fast , fast and furious and and furious and

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

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

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

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

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

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

you must you must

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

Most Mistakes WinsMost Mistakes Wins))

““RewardReward excellent failures.

PunishPunish mediocre successes.”

Phil Daniels, Sydney exec

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

except through except through many and great many and great

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

#40#40

1/4,0001/4,000

““You miss You miss

100100%%

of the shots of the shots you never you never

take.”take.” —Wayne—Wayne GretzkyGretzky

BLAME NOBODY.BLAME NOBODY.EXPECT EXPECT NOTHING.NOTHING.DO SOMETHING.DO SOMETHING.

Source: Locker room sign posted bySource: Locker room sign posted by football coach Bill Parcellsfootball coach Bill Parcells

#41#41

We We areare the the companycompany we keepwe keep

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

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

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

StaffStaffConsultantsConsultants

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

Innovation Alliance PartnersInnovation Alliance PartnersCustomersCustomers

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

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

IS/IT ProjectsIS/IT ProjectsHQ LocationHQ LocationLunch MatesLunch Mates

LanguageLanguageBoardBoard

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

all its own products to developingall its own products to developing

others’ others’ inventions at inventions at least half the least half the

timetime.. One successfulOne successful

example, Mr. Clean Magic Eraser, based on a product found in example, Mr. Clean Magic Eraser, based on a product found in an Osaka market.”an Osaka market.” ——FortuneFortune

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

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

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

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

““Don’t Don’t benchmark, benchmark,

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

not evenly distributed” —William Gibson

#42#42

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

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

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

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

““Normal” Normal”

= = “o “o forfor 800”800”

"The reasonable man adapts "The reasonable man adapts himself to the world. The himself to the world. The

unreasonable one persists in unreasonable one persists in trying to adapt the world to trying to adapt the world to

himself. Therefore, all himself. Therefore, all progress depends upon the progress depends upon the unreasonable man.”unreasonable man.” —GB Shaw, Man and Superman: The Revolutionists' Handbook.

#43#43

“The The Bottleneck Bottleneck

……

“The The Bottleneck Bottleneck

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

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

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

AtAt thethe totop!”p!” — Gary Hamel/Harvard Business Review

#44#44

““d”iversityd”iversity

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

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

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

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

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

#45#45

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

Mike Bloomberg:Mike Bloomberg:

““Curiosity.”Curiosity.”

““Do one Do one thing every thing every

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

—Eleanor Roosevelt

#46#46

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

Companies offering Companies offering work to online work to online

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

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

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

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

Collaboration Changes Everything, Don Tapscott & Anthony Williams

#47#47

All You Need to Know All You Need to Know About “Sources of About “Sources of

Innovation” …Innovation” …

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

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

the status quo]the status quo]

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

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

#48#48

Iron Innovation Equality Law:Iron Innovation Equality Law: The quality and The quality and

quantity and quantity and imaginativenessimaginativeness

of innovation shall be of innovation shall be the same in all the same in all

functionsfunctions —e.g., in HR and —e.g., in HR and purchasing as much as in marketing or purchasing as much as in marketing or

product development.*product development.*

*This is …*This is …

Strategic!Strategic!

#49#49

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?

#50#50

Inno16Inno16

The INNO16: The INNO16: Innovation’s “Sixteen Imperatives”Innovation’s “Sixteen Imperatives”

(1)(1) Try it. Try it. (“1/40”: “Whoever tries the most stuff wins.”)(“1/40”: “Whoever tries the most stuff wins.”)

(“R.F.A.”/Ready. Fire. Aim.)(“R.F.A.”/Ready. Fire. Aim.)

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

(3) Decentralize. Decentralize. (Organic growth bias.)(Organic growth bias.)

(4)(4) Parallel Universe. Parallel Universe. 1% “play money” 1% “play money” Internal VC fundInternal VC fund “ “Skunkworks”Skunkworks”

(5)(5) “We are what we eat”: We are who we spend “We are what we eat”: We are who we spend time with. time with. (6)(6) “d”iversity. “d”iversity. ((EveryEvery dimension.) dimension.)

(7)(7) Co-invent with (all) outsiders. Co-invent with (all) outsiders. ((Exploit electronicExploit electronic communities.)communities.)

The INNO16: Innovation’s “Sixteen Imperatives” (Cont.)The INNO16: Innovation’s “Sixteen Imperatives” (Cont.)

(8)(8) “Strategic”“Strategic” Listening = Core competence. Listening = Core competence. (9)(9) Hire and promote 100% innovators. Hire and promote 100% innovators. Innovator’s characteristic = Angry. Innovator’s characteristic = Angry. CEO=Innovation “bias.” (“You must be …”/Gandhi)CEO=Innovation “bias.” (“You must be …”/Gandhi)

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

(13)(13) Top quartile R&D spendingTop quartile R&D spending (So, too, our(So, too, our partners.)partners.)

(14)(14) All projects All projects (Must have (Must have something something new.) (“WOW new.) (“WOW

standard.”)standard.”) (15)(15) Fun! Fun! (Enjoy breaking the rules.)(Enjoy breaking the rules.)

(16)(16) All businesses!! All businesses!!

#51#51

4/404/40

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

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

your heart, or not.”

—Brian Joffe/BIDvest

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

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

—Caspian Woods, small biz owner

Enemy Enemy #1#1

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

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

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

get things done.” – Peter Drucker– Peter Drucker

volcanic volcanic struggle!struggle!

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

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

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

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

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

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

“Best practice” = Best practice” =

ZEROZERO Standard Standard DeviationDeviation

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

tion!tion!

““ExecutionExecution is is thethe jobjob of the of the

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

Charan/ Execution: The Discipline of Getting Things Done

“Execution is a

systematic systematic processprocess of rigorously

discussing hows and whats, tenaciously following through, and

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

The Discipline of Getting Things Done

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

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

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

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

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

—Charles Munger, Berkshire Hathaway

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

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

Excellence in Excellence in Execution = Execution =

Deepest Deepest “Blue “Blue

Ocean”Ocean”

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

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

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

Amgen, on the “GE mystique” (Fortune)

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

salesfolk)salesfolk)

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

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

DECENTRALIZATIONDECENTRALIZATION..

EXECUTION.EXECUTION.ACCOUTABILITY.ACCOUTABILITY.

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

Part Part SEVENSEVEN

#52#52

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

seems obviousseems obvious … …

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

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

obvious: Buy a very Buy a very largelarge

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

Fail: Evolution, Extinction and Economics

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

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

TheTheyy found that found that nonenone ofof

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

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

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

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

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

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

““On the face of it, On the face of it, shareholder value is the shareholder value is the

dumbest idea in the world. dumbest idea in the world. Shareholder value is a Shareholder value is a

result, not a strategy. … result, not a strategy. … Your main constituenciesYour main constituencies are your employees, your are your employees, your

customers and your customers and your products.”products.” —Jack Welch, —Jack Welch, FTFT, 0313.09, page 1 , 0313.09, page 1

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

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

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

““Too Much Counting, Not Enough Trust”Too Much Counting, Not Enough Trust”““Too Much Business Conduct, Not Enough Professional Too Much Business Conduct, Not Enough Professional

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

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

Eighteenth-Century Values”Eighteenth-Century Values”““Too Much ‘Success,’ Not Enough Character”Too Much ‘Success,’ Not Enough Character”

Source: Jack Bogle, Source: Jack Bogle, Enough!Enough! (chapter titles) (chapter titles)

#53#53

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

#2 China#2 China

#1 #1 GermanyGermany

Reason!!!Reason!!!

MittelstandMittelstand

#54#54

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

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

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

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

Jim’s Computer ServicesJim’s Computer Services

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Jungle Jim’s International Jungle Jim’s International Market/“shoppertainment”Market/“shoppertainment”

Abt ElectronicsAbt ElectronicsZabar’s Zabar’s

Bronner’s Christmas Wonderland Bronner’s Christmas Wonderland Ron Jon Surf Shop.Ron Jon Surf Shop.

Junkman’s DaughterJunkman’s DaughterSmoky Mountain Knife WorksSmoky Mountain Knife Works

Hartville HardwareHartville Hardware

Source:Source: Retail Superstars: Inside the 25 Best Retail Superstars: Inside the 25 Best Independent Stores in America, Independent Stores in America, George WhalinGeorge Whalin

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

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

#55#55

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

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

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

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

are entrepreneurs.”are entrepreneurs.”

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

#56#56

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

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

Over-rated:Over-rated:

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

last”)!Famous CEOs!

Under-rated:Under-rated:

**SMESMEss!!**Private companies!Private companies!

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

Part Part EIGHTEIGHT

#57#57

#1 Truthteller …#1 Truthteller …

You = You = Your Your

calendarcalendar***Calendars *Calendars nevernever lielie

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

ThreeThree..

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

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

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

‘To-don’t ’‘To-don’t ’

List !”List !”

Don’t > Don’t > Do*Do*

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

John Sawhill/Major StrategicJohn Sawhill/Major Strategic

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

and more important— and more important—

what activities what activities should we stoshould we stopp

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

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

#58#58

““You must You must bebe

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

world.”world.”GandhiGandhi

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

—Marshall Goldsmith—Marshall Goldsmith

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

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

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

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

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

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

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

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

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

#59#59

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

—Samuel Taylor Coleridge

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

enthusiasm.”enthusiasm.”

—Ben Zander

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

almost almost transcendent transcendent

happiness.” happiness.” —Lou Cannon —Lou Cannon

““Swimmers and colleagues remember a man Swimmers and colleagues remember a man of almost boundless energy and passion, of almost boundless energy and passion,

pointing to his preternatural cheerfulness at pointing to his preternatural cheerfulness at 6A.M. practices. 6A.M. practices. ——StanfordStanford magazine, on Richard magazine, on Richard

Quick, Quick, women’s swimming coach (13 NCAA championships,women’s swimming coach (13 NCAA championships,

the Olympic teams he coached won 59 medals)the Olympic teams he coached won 59 medals)

““He’d look you in the eye and tell you that He’d look you in the eye and tell you that you could do it. He was so genuine and you could do it. He was so genuine and passionate that you’d start to believe it passionate that you’d start to believe it

yourself.”yourself.” ——Jessica Foschi, All American and NCAA championJessica Foschi, All American and NCAA champion

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

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

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

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

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

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

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

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

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

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

““Ultimately the smile was symbolic Ultimately the smile was symbolic of how Mandela molded himself. At of how Mandela molded himself. At every stage of his life he decided every stage of his life he decided who he wanted to be and created who he wanted to be and created

the appearance—and then the the appearance—and then the reality—of that person. He became reality—of that person. He became who he wanted to be.”who he wanted to be.” —from “Look —from “Look

the Part” (the Part” (Mandela’s Way: Fifteen Lessons on Mandela’s Way: Fifteen Lessons on Life, Love, and CourageLife, Love, and Courage, by Richard Stengel), by Richard Stengel)

Smiling begets a warmer environment. Smiling begets a warmer environment. Thanking begets an environment of Thanking begets an environment of mutual appreciation.mutual appreciation.Enthusiasm begets enthusiasm.Enthusiasm begets enthusiasm.Love begets love.Love begets love.Energy begets energy.Energy begets energy.Wow begets Wow.Wow begets Wow.Optimism begets Optimism.Optimism begets Optimism.Honesty begets honesty.Honesty begets honesty.Caring begets caring.Caring begets caring.Listening begets engagement.Listening begets engagement.__________ begets _______________________ begets _____________

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

—David D’Alessandro, Career Warfare

#60#60

““Some call it a blind spot, others Some call it a blind spot, others naïveté, but Mandela sees almost naïveté, but Mandela sees almost everyone as virtuous until proven everyone as virtuous until proven

otherwise. He starts with an otherwise. He starts with an assumption you are dealing with himassumption you are dealing with him in good faith. He believes that, justin good faith. He believes that, just as pretending to be brave can leadas pretending to be brave can lead to acts of real bravery, seeing theto acts of real bravery, seeing the good in other people improves the good in other people improves the chances that they will reveal their chances that they will reveal their

better selves.”better selves.” —from “See the Good in Others” —from “See the Good in Others” ((Mandela’s Way: Fifteen Lessons on Life, Love, and CourageMandela’s Way: Fifteen Lessons on Life, Love, and Courage, ,

by Richard Stengel)by Richard Stengel)

““Keep a short Keep a short enemies list. One enemies list. One

enemy can do enemy can do more damage than more damage than the good done by a the good done by a hundred friends.”hundred friends.”

——Bill Walsh (from Bill Walsh (from The Score Takes Care of ItselfThe Score Takes Care of Itself))

#61#61

The “19 Es” of EXCELLENCEThe “19 Es” of EXCELLENCE

EnthusiasmEnthusiasm!! (Be an irresistible force of nature! (Be an irresistible force of nature! Be fire! Light fires!)Be fire! Light fires!)ExuberanceExuberance!! ( (Vibrate—cause earthquakes!)Vibrate—cause earthquakes!)ExecutionExecution!! (Do it! Now! Get it done! Barriers are baloney! Excuses are (Do it! Now! Get it done! Barriers are baloney! Excuses are for wimps! Accountability is gospel! Adhere to coach Bill Parcells’for wimps! Accountability is gospel! Adhere to coach Bill Parcells’ doctrine: doctrine: “Blame nobody!! Expect nothing!! Do something!!”“Blame nobody!! Expect nothing!! Do something!!”))EmEmppowermentowerment!! (Respect! Appreciation! Ask until you’re blue in the face, (Respect! Appreciation! Ask until you’re blue in the face, ““What do you think?”What do you think?” Then: Listen! Liberate! 100.00% innovators!)Then: Listen! Liberate! 100.00% innovators!)EdEdgginessiness!! (Perpetually dance at the frontier and a little, or a lot, beyond.) (Perpetually dance at the frontier and a little, or a lot, beyond.)EnraEnraggeded!! (Maintain a permanent state of mortal combat with the (Maintain a permanent state of mortal combat with the status-quo!)status-quo!)EnEnggaaggeded!! (Addicted to (Addicted to MBWAMBWA/Managing By Wandering Around. /Managing By Wandering Around. In touch.In touch. Always.Always.) ) ElectronicElectronic!! (Partner with the whole wide world 60/60/24/7 via all manner of (Partner with the whole wide world 60/60/24/7 via all manner of electronic community building and entanglement. electronic community building and entanglement. Crowdsourcing Crowdsourcing wins!)wins!)EncomEncomppassingassing!! (Relentlessly pursue diversity of every flavor! Diversity (Relentlessly pursue diversity of every flavor! Diversity per se generates big returns!) (Seeking superb leaders: per se generates big returns!) (Seeking superb leaders: Women rule!Women rule!))EmotionEmotion!! (The alpha! The omega! The essence of (The alpha! The omega! The essence of leadershipleadership! The! The essence of essence of salessales! The essence of ! The essence of designdesign! The essence of life itself! ! The essence of life itself! Acknowledge it! Use it!)Acknowledge it! Use it!)

The “19 Es” of EXCELLENCEThe “19 Es” of EXCELLENCE

EmEmppathathy!y! ( (Connect! Connect! Connect!Connect! Connect! Click with others’ reality and Connect! Click with others’ reality and aspirations!aspirations! “Walk in the other person’s shoes”—until the soles “Walk in the other person’s shoes”—until the soles have holes!)have holes!)EarsEars!! (Effective listening in every encounter: (Effective listening in every encounter: Strategic Advantage No. 1! Strategic Advantage No. 1! Believe it!)Believe it!)ExExpperienceerience!! (Life is theater! (Life is theater! It’s always showtime! It’s always showtime! Make every contact Make every contact a a “Wow”“Wow” ! Standard: “Insanely Great”/Steve Jobs; “Radically ! Standard: “Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.)Thrilling”/BMW.)EliminateEliminate!! (Keep it simple!! Furiously battle hyper-complexity and (Keep it simple!! Furiously battle hyper-complexity and gobbledygook!!)gobbledygook!!)ErrorErrorppronerone!! (Ready! Fire! Aim! Try a lot of stuff, make a lot of booboos. (Ready! Fire! Aim! Try a lot of stuff, make a lot of booboos. CELEBRATE the booboos! Try more stuff, make more booboos! HeCELEBRATE the booboos! Try more stuff, make more booboos! He who makes the most mistakes wins! who makes the most mistakes wins! Fail! Forward! Fast!)Fail! Forward! Fast!)EvenhandedEvenhanded!! (Straight as an arrow! (Straight as an arrow! Fair to a fault! Fair to a fault! Honest as Abe!)Honest as Abe!)ExExppectationsectations!! (Michelangelo: “ (Michelangelo: “The greatest danger for most of us is notThe greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and wethat our aim is too high and we miss it, but that it is too low and we hit it.”)hit it.”)EudaimoniaEudaimonia!! (The essence of Aristotelian philosophy: True happiness is (The essence of Aristotelian philosophy: True happiness is pursuit of the highest of human moral purpose. pursuit of the highest of human moral purpose. Be of service! Always!)Be of service! Always!)EXCELLENCEEXCELLENCE!! (The only standard! Never an exception! (The only standard! Never an exception! Start NOW! Start NOW! No excuses!)No excuses!)

The endThe end

Tom Peters’ Tom Peters’

EXCELLENCE. EXCELLENCE. ALWAYS.ALWAYS.

Leadership.Leadership.Muscat/03 August 2010Muscat/03 August 2010

Excellence:Excellence: The The

LeadershipLeadership5050

bedrock.bedrock.

11.. Leaders … Leaders …

serve.serve.

Organizations Organizations existexist to to serveserve..

Period.Period.

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

The Basic The Basic MechanisMechanis

22.. Leadership Is a Leadership Is a

…… Mutual Mutual Discovery Discovery Process.Process.

Organizing GeniusOrganizing Genius / Warren Bennis / Warren Bennis and Patricia Ward Biederman and Patricia Ward Biederman

“Groups become great only when “Groups become great only when everyone in them, leaders and everyone in them, leaders and

members alike, members alike, is free to do his or is free to do his or her absolute besther absolute best.”.”

“The best thing a leader can do for a “The best thing a leader can do for a

Great Group is to Great Group is to allow its allow its members to discover their members to discover their

ggreatnessreatness.”.”

Leaders’ “Mt Everest Test”Leaders’ “Mt Everest Test”

“free to do his or her “free to do his or her absolute best” …absolute best” …

“allow its members “allow its members to discover their to discover their

greatness.”greatness.”

The The Leadership Leadership

Types.Types.

33.. Great Leaders on White Horses Are Great Leaders on White Horses Are

Important – butImportant – but Great Talent Great Talent DevelopersDevelopers (Type I (Type I

Leadership)Leadership) are the Bedrockare the Bedrock of Organizations that Perform Over of Organizations that Perform Over

the Long Haul.the Long Haul.

Whoops: Jack didn’t haveJack didn’t have

a vision! a vision!

44.. But There Are Times But There Are Times When the When the “visionary” “visionary”

“Type”“Type” (Type II (Type II Leadership)Leadership) Matters! Matters!

““A leader is A leader is a a dealer in dealer in hope.” hope.” —Napoleon—Napoleon

55.. Find the Find the “Businesspeople”!“Businesspeople”!

(Type III (Type III Leadership)Leadership)

I.P.M.I.P.M. (Inspired (Inspired

Profit Mechanic)Profit Mechanic)

66.. All Organizations All Organizations

Need … the Need … the Golden Golden Leadership Leadership Triangle.Triangle.

The The Golden Golden Leadership Leadership Triangle:Triangle:

(1) (1) Talent FanaticTalent Fanatic … … (2) (2) VisionaryVisionary … … (3) (3) Inspired ProfitInspired Profit Mechanic. Mechanic.

77.. Leadership Mantra Leadership Mantra

#1: #1: IT ALL IT ALL DEPENDS!DEPENDS!

Renaissance Men Renaissance Men are … are … a snare, a snare,

a myth, a myth, a delusion!a delusion!

88.. The Leader IsThe Leader Is Rarely/Rarely/Never the Never the Best Performer.Best Performer.

The The Leadership Leadership

Dance.Dance.

99. . Leaders …Leaders … SHOWSHOW UPUP!!

““A body can A body can pretend to pretend to

care, but they care, but they can’t pretend can’t pretend

to be there.”to be there.” — Texas — Texas

Bix BenderBix Bender

1010.. Leaders …Leaders … LOVELOVE the the

MESSMESS!!

“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

11.11. Leaders Leaders

DODO!!

““We have a We have a ‘strategic’ ‘strategic’

plan. It’s called plan. It’s called doing things.”doing things.” — —

Herb KelleherHerb Kelleher

1212.. Leaders Leaders

ReRe-do-do..

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

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

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

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

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

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

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

BloombergBloomberg

1313.. BUTBUT … Leaders … Leaders

KnowKnow When When to Wait.to Wait.

Tex Schramm: Tex Schramm: The The

“too hard”“too hard” box!box!

1414.. Leaders Are … Leaders Are …

OptimistsOptimists..

Hackneyed but none the lessHackneyed but none the less

true: true: LEADERS LEADERS SEE CUPS AS SEE CUPS AS “HALF FULL.”“HALF FULL.”

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

almost almost transcendent transcendent

happiness.” happiness.” —Lou Cannon —Lou Cannon

1515.. LeadersLeaders

FOCUSFOCUS!!

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

‘To-don’t ’‘To-don’t ’

List !”List !”

1616.. Leaders … Leaders … Send Send

V-E-R-YV-E-R-Y ClearClear SignalsSignals About About What’s Important!What’s Important!

““Really Important Really Important Stuff”:Stuff”: Roger’s Roger’s Rule of Three!Rule of Three!

DangerDanger: : S.I.O.S.I.O.

(Strategic Initiative Overload)(Strategic Initiative Overload)

If It Ain’t If It Ain’t Broke … Broke … Break It.Break It.

1717.. LeadersLeaders … …FORGETFORGET!/!/

Leaders …Leaders … DESTROYDESTROY!!

Forget>“Learn”Forget>“Learn”

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

thoughts into your mind, thoughts into your mind,

but how to get the old ones out.” —Dee Hock—Dee Hock

1818.. BUTBUT … Leaders … Leaders Have to Deliver, So They Have to Deliver, So They Worry About “Throwing Worry About “Throwing the Baby Out with the the Baby Out with the

Bathwater.”Bathwater.”

““Damned If You Damned If You Do, Damned If You Do, Damned If You Don’t, Just Plain Don’t, Just Plain

DamnedDamned.”.”Subtitle in the chapter, “Own Up to the Great Paradox: Success Is Subtitle in the chapter, “Own Up to the Great Paradox: Success Is the Product of Deep Grooves/ Deep Grooves Destroy Adaptivity,” the Product of Deep Grooves/ Deep Grooves Destroy Adaptivity,”

Liberation ManagementLiberation Management (1992) (1992)

HONORHONOR THETHE

USURPERSUSURPERS..

Saviors-in-WaitingSaviors-in-Waiting

DisDisggruntledruntled Customers CustomersUUppstartstart Competitors CompetitorsRoRoggueue Employees EmployeesFrinFringgee Suppliers Suppliers

Source: Wayne Burkan, Source: Wayne Burkan, Wide Angle VisionWide Angle Vision

2020.. Leaders Leaders Make Make [Lots of] [Lots of]

MistakesMistakes – and – and MAKE NO BONES MAKE NO BONES

ABOUT IT!ABOUT IT!

““Fail . Fail Fail . Fail again. Fail again. Fail better.”better.”

—Samuel Beckett—Samuel Beckett

2121.. Leaders Make … Leaders Make …

BIG BIG MISTAKES!MISTAKES!

““RewardReward excellent excellent

failures. failures. PunishPunish mediocre mediocre

successes.”successes.”—Phil Daniels—Phil Daniels

Create.Create.

2222.. Leaders Know that THERE’S Leaders Know that THERE’S

MORE TO LIFE THAN “LINE MORE TO LIFE THAN “LINE

EXTENSIONS.”EXTENSIONS.” Leaders Love to … Leaders Love to …

CREATE NEW CREATE NEW MARKETSMARKETS..

““Acquisitions are about Acquisitions are about

buying market share. buying market share. Our Our challenge is to challenge is to create markets.create markets. There is a big difference.”There is a big difference.”

—Peter Job, CEO, Reuters—Peter Job, CEO, Reuters

2323.. Leaders … Leaders … Make Make Their MarkTheir Mark //

Leaders … Leaders … Do Stuff Do Stuff That MattersThat Matters

““I never, ever thought of I never, ever thought of

myself as a businessman.myself as a businessman.

I was interested in I was interested in creating things creating things

I would be I would be proud of.”proud of.” ——Richard BransonRichard Branson

2424.. Leaders Push Their Leaders Push Their

Organizations … Organizations … W-a-yW-a-y Up the Value- Up the Value-added Chain.added Chain.

$55B$55B

““Every project we undertake starts with Every project we undertake starts with

the same question:the same question: ‘‘How can How can we do what has we do what has never been done never been done beforebefore?’”?’” —Stuart Hornery, Lend Lease—Stuart Hornery, Lend Lease

2525.. Leaders Push Past Leaders Push Past Service “Transactions” to Service “Transactions” to

… … Scintillating Scintillating Experiences.Experiences.

““Experiences Experiences are as distinct are as distinct

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

Experience Economy: Work Is Theatre & Every Business a Stage

Experience: “Rebel Lifestyle!”

“What we sell is the “What we sell is the ability for a 43-year-old ability for a 43-year-old accountant to dress in accountant to dress in

black leather, ride black leather, ride through small towns and through small towns and

have people be afraidhave people be afraid of him.” of him.”

HarleyHarley exec, quoted in Results-Based Leadership

LOVELOVE the the New Technology!New Technology!

Power ToolsPower Tools For Power For Power StrategiesStrategies

2727.. Needed? Needed? Type IV Type IV Leadership:Leadership: Technology Technology

Dreamer-True Dreamer-True BelieverBeliever

The Golden Leadership The Golden Leadership

Quadrangle:Quadrangle: (1) Talent (1) Talent Fanatic … (2) Visionary … Fanatic … (2) Visionary …

(3) Inspired Profit (3) Inspired Profit Mechanic … Mechanic …

(4) (4) Technology Dreamer-Technology Dreamer-True Believer.True Believer.

Talent.Talent.

DO TALENT!DO TALENT!

Brand Brand = =

Talent.Talent.

2929.. When It Comes When It Comes

to to TALENTTALENT … … Leaders Always Go Leaders Always Go

Berserk!Berserk!

From “1, 2 or you’re out” [JW] From “1, 2 or you’re out” [JW] to …to …

““BestBest TalentTalent in in each industry segment to each industry segment to

build best proprietary build best proprietary intangibles”intangibles” [EM][EM]

Source: Ed Michaels, War for TalentSource: Ed Michaels, War for Talent

ListenListen. . LeadersLeaders

ConsultConsult..

PassionPassion..

3131.. Leaders …Leaders …

“Sell”“Sell”

PASSIONPASSION!!

Gary Hamel:Gary Hamel: “Create a “Create a ‘cause,’‘cause,’ not a not a ‘business.’ ”‘business.’ ”

3232.. Leaders Know:Leaders Know: ENTHUSIASMENTHUSIASM

BEGETS BEGETS ENTHUSIASMENTHUSIASM!!

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

—Samuel Taylor Coleridge—Samuel Taylor Coleridge

3333.. Leaders Are Leaders Are

…… in a in a HurryHurry

““We don’t sell insurance We don’t sell insurance

anymore.anymore. WeWe sell sell ssppeedeed.”.”

Peter Lewis, ProgressivePeter Lewis, Progressive

““Metabolic Metabolic Management”Management”

Focus on theFocus on the

SOFT SOFT STUFF!STUFF!

““Hard” is Hard” is “soft.”“soft.”

“Soft” Is “Soft” Is “hard.”“hard.”

MessaMessaggee: Leadership is : Leadership is all about all about lovelove! ! [Passion, [Passion, Enthusiasms, Appetite for Life, Enthusiasms, Appetite for Life,

Engagement, Commitment, Great Engagement, Commitment, Great Causes & Determination to Make a Causes & Determination to Make a

Damn Difference, Shared Damn Difference, Shared Adventures, Bizarre Failures, Adventures, Bizarre Failures,

Growth, Insatiable Appetite for Growth, Insatiable Appetite for Change.]Change.]

The “Job” of The “Job” of Leading.Leading.

3535.. Leaders Know It’s Leaders Know It’s

ALL SALES ALL SALES ALL THE ALL THE

TIME.TIME.

If you don’t If you don’t

LOVE LOVE SALESSALES … find … find another life.another life. (Don’t pretend (Don’t pretend

you’re a “leader.”)you’re a “leader.”)

3636. . LeadersLeaders

LOVELOVE ““POLITICSPOLITICS.”.”

If you don’t If you don’t LOVELOVE POLITICSPOLITICS … …

find another life. find another life. (Don’t (Don’t

pretend you’re a “leader.”)pretend you’re a “leader.”)

3737.. But … Leaders Also But … Leaders Also

Break a Lot Break a Lot of China.of China.

Characteristics of the “Also rans”*Characteristics of the “Also rans”*

“Minimize risk”“Minimize risk”“Respect the chain of “Respect the chain of

command”command”“Support the boss”“Support the boss”

“Make budget”“Make budget”**FortuneFortune, “Most Admired Global Corporations”, “Most Admired Global Corporations”

Give …Give … RESPECTRESPECT

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

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

college president.college president. He was He was seriously interested seriously interested in who you were and in who you were and

what you had to saywhat you had to say.”.”Source: Sara Lawrence-Lightfoot, Source: Sara Lawrence-Lightfoot, RespectRespect

Amen!Amen!

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

manifest respect for manifest respect for the followers.”the followers.” — Jim O’Toole, — Jim O’Toole,

Leading ChangeLeading Change

3939.. Leaders Say Leaders Say

““Thank Thank You.”You.”

““The deepest human The deepest human

need is theneed is the need to need to be appreciated.”be appreciated.”

William JamesWilliam James

4040.. Leaders Leaders Are … Are …

Curious.Curious.

The Three Most Important Letters …The Three Most Important Letters …

WHYWHY??

4141.. Leadership Is Leadership Is a … a …

Performance.Performance.

““It is necessary for the It is necessary for the President to be the President to be the

nation’snation’s No. 1 No. 1 actor.”actor.”

FDRFDR

4242.. Leaders … Leaders … AreAre The BrandThe Brand

Have a Have a

GREATGREAT STORYSTORY!!

““A key – perhaps A key – perhaps thethe key – key – to leadership isto leadership is thethe effective effective

communicationcommunication of a story.” of a story.”

Howard GardnerHoward Gardner Leading Minds: An Anatomy of LeadershipLeading Minds: An Anatomy of Leadership

Leader Job 1Leader Job 1

Paint Paint Portraits of Portraits of

ExcellenceExcellence!!

Introspection.Introspection.

Enjoy Enjoy Leading.Leading.

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

thing …”thing …”

LAUGHLAUGH!!

KNOW KNOW THEMSELVETHEMSELVE

Individuals Individuals (would-be leaders)(would-be leaders) cannot engage in a cannot engage in a

liberating mutual discovery liberating mutual discovery process process unless they are unless they are comfortable with their comfortable with their own skin.own skin. (“Leaders” who are not (“Leaders” who are not

comfortable with themselves become petty comfortable with themselves become petty control freaks.)control freaks.)

4747.. But … But …

Leaders Leaders havehave MENTORSMENTORS..

Upon having the Upon having the Leadership Mantle placed Leadership Mantle placed upon one’s head, he/she upon one’s head, he/she

shall shall nevernever hear hear

the unvarnished truth the unvarnished truth again!*again!* (*Therefore, she/he needs one faithful compatriot (*Therefore, she/he needs one faithful compatriot

to lay it on with no jelly.)to lay it on with no jelly.)

The End The End Game.Game.

4848.. Leaders Leaders are … are …

RELENTLESSRELENTLESS..

““Success seems to Success seems to be largely a be largely a

mattermatter

of of hanginghanging onon after others after others have let go.”have let go.” —William —William

Feather, authorFeather, author

4949..

Leaders Leaders ??????::

““Leadership is the Leadership is the PROCESSPROCESS of of

ENGAGINGENGAGING PEOPLEPEOPLE in in CREATINGCREATING a a

LEGACYLEGACY of of EXCELLENCEEXCELLENCE.”.”

““LEADERS NEED LEADERS NEED TOTO

BE THE ROCK OF BE THE ROCK OF GIBRALTAR ONGIBRALTAR ON

ROLLER BLADES.” ROLLER BLADES.”

5050.. Leaders Leaders Free Free the Lunatic the Lunatic

WithinWithin!!

““You can’t behave You can’t behave in a calm, rational in a calm, rational manner. You’ve got manner. You’ve got to be out there on to be out there on the lunatic fringe.”the lunatic fringe.”

— Jack Welch— Jack Welch

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. 10. Avoid moderationAvoid moderation!!

The greatest dangerThe greatest dangerfor most of usfor most of us

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

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

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

MichelangeloMichelangelo

5151.. LeadersLeadersRelentlessly Pursue Relentlessly Pursue

… …

ExcellenceExcellence

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

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

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

Excellence Is a Excellence Is a Universal Universal Striving.Striving.

If Not Excellence, If Not Excellence, What? What?

conrad hilton, at a gala celebrating his career, was asked …

excellence business

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hiltonhowardherbconrad

distinguished career

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