conrad hilton, at a gala celebrating his career, was called to the podium and asked, his answer …...

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

asked,asked, “What were the most important

lessons you learned in your long and

distinguished career?” His answer …His answer …

““Remember Remember to tuck the to tuck the

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

Tom Peters’Tom Peters’

Racing Up the Value-Added Ladder Racing Up the Value-Added Ladder No Option:No Option:

Innovate or DieInnovate or Die!!World Business Forum Hong Kong/02 June 2015World Business Forum Hong Kong/02 June 2015

(Slides at tompeters.com; and our fully annotated 23-part (Slides at tompeters.com; and our fully annotated 23-part Master Compendium at excellencenow.com)Master Compendium at excellencenow.com)

Innovation Strategy #1Innovation Strategy #1

A Numbers Game A Numbers Game

WTTMTWWTTMTW//4949

WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTTHINGSTHINGSWINSWINS

READY.READY.

FIREFIRE!!AIM.AIM.

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

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

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

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

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

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

##1010.. It gets back to It gets back to planning versus actingplanning versus acting: : We act We act from day onefrom day one; ; others plan how others plan how

toto planplan——for monthsfor months.”.”

——Bloomberg by BloombergBloomberg by Bloomberg

Innovation Strategy #2Innovation Strategy #2

Most Most FailuresFailures Wins Wins

““FAIL. FORWARD. FAST.”FAIL. FORWARD. FAST.”—High Tech CEO, Pennsylvania

“FAIL FASTER. “FAIL FASTER. SUCCEED SOONER.”SUCCEED SOONER.”

—David Kelley/IDEO

“MOVE FAST. “MOVE FAST.

BREAK THINGS.”BREAK THINGS.” —Facebook—Facebook

““REWARDREWARD EXCELLENT EXCELLENT FAILURES. FAILURES. PUNISHPUNISH MEDIOCRE MEDIOCRE

SUCCESSES.”SUCCESSES.”—Phil Daniels—Phil Daniels

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

Whoever Makes Whoever Makes the Most Mistakes the Most Mistakes Wins: The Paradox Wins: The Paradox of Innovation* of Innovation* (*Book title)(*Book title)

“ ‘“ ‘Success,’ Honda said, Success,’ Honda said, ‘can only be achieved ‘can only be achieved

through repeated failure through repeated failure and introspection. and introspection. Success Success rereppresents one resents one ppercent of ercent of yyour work, which results our work, which results onlonlyy from the ninet from the ninetyy-nine -nine

ppercent that is called ercent that is called failurefailure.’ ”.’ ” —Jeffrey Rothfeder, —Jeffrey Rothfeder, Driving Honda: Driving Honda:

Inside the World’s Most Innovative Car CompanyInside the World’s Most Innovative Car Company

““The difference between The difference between BachBach and his forgotten peers and his forgotten peers isn’t necessarily that he had a better ratio of hits to misses. isn’t necessarily that he had a better ratio of hits to misses.

The difference is that the mediocre might have a dozen ideas, The difference is that the mediocre might have a dozen ideas,

while Bach, in his lifetime,while Bach, in his lifetime, created more than a created more than a thousand full-fledged musical thousand full-fledged musical

compositionscompositions. . A genius is a genius, psychologist Paul A genius is a genius, psychologist Paul Simonton maintains, because he can put together such a Simonton maintains, because he can put together such a staggering number of insights, ideas, theories, random staggering number of insights, ideas, theories, random

observations, and unexpected connections that he almost observations, and unexpected connections that he almost

inevitably ends up with something great.inevitably ends up with something great. ‘‘Quality,’Quality,’ Simonton writes,Simonton writes, ‘is a probabilistic ‘is a probabilistic function of quantity.’”function of quantity.’”**

—Malcolm Gladwell, “Creation Myth,” —Malcolm Gladwell, “Creation Myth,” New YorkerNew Yorker

*Joe Murray: “We did more surgeries.*Joe Murray: “We did more surgeries.

““What really matters isWhat really matters is that companies that don’t continue to that companies that don’t continue to

experiment— experiment— COMPANIESCOMPANIES THAT DON’T THAT DON’T

EMBRACEEMBRACE FAILUREFAILURE — eventually get in a — eventually get in a

desperate position, where the only desperate position, where the only thing they can do is make a ‘Hail Mary’ thing they can do is make a ‘Hail Mary’

bet at the end.”bet at the end.” —Jeff Bezos—Jeff Bezos

““In business, youIn business, you REWARDREWARD people people

for taking for taking RISKS.RISKS. WHEN IT WHEN IT DOESN’T WORK DOESN’T WORK

OUT YOU PROMOTE OUT YOU PROMOTE THEMTHEM -BECAUSE THEY WERE -BECAUSE THEY WERE

WILLING TO TRY NEW THINGSWILLING TO TRY NEW THINGS.. If If people tell me they skied all day and people tell me they skied all day and never fell down, I tell them to try a never fell down, I tell them to try a

different mountain.”different mountain.” —Michael Bloomberg—Michael Bloomberg

WTTMTWTTMTAMTMMAMTMMWW

WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTTHINGSTHINGSAND AND MAKESMAKESTHETHEMOSTMOSTMISTAKESMISTAKESWINSWINS

Innovation Strategy #3Innovation Strategy #3

LBTLBTss(Little (Little BIGBIG Things) Things)

Big carts =Big carts =

1.5X1.5XSource: WalmartSource: Walmart

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

$B$BSource: PepsiCoSource: PepsiCo

2X:2X: “When Friedman“When Friedman

slisligghtlhtly y curvedcurved the right angle of the right angle of

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

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

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

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

Innovation Strategy #4Innovation Strategy #4

TGRTGRss(Things Gone (Things Gone RIGHTRIGHT))

CustomersCustomers describing their service describing their service

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

the service experience they provide the service experience they provide asas

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

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

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

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

sir?”sir?”

<TG<TGWandand … …

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

““Courtesies of a small Courtesies of a small and trivial character and trivial character are the ones which are the ones which

strike deepest in the strike deepest in the grateful and grateful and

appreciating heart.”appreciating heart.”

—Henry Clay

Innovation Strategy #5Innovation Strategy #5

SERIOIUS PLAYSERIOIUS PLAY(Culture of)(Culture of)

““You can’t be a serious You can’t be a serious innovator unless and until innovator unless and until you are ready, willing and you are ready, willing and

able to seriously play.able to seriously play.

‘‘Serious Serious plplaay’y’ isis not an oxymoron; it is not an oxymoron; it is

the the essenceessence of of innovationinnovation.”.”

—Michael Schrage,—Michael Schrage, Serious PlaySerious Play

WSJ/0910.13:WSJ/0910.13: “What matters most “What matters most to a company over time? to a company over time?

Strategy or culture? Strategy or culture?

Dominic Barton, Managing Director, McKinsey & Co.:Dominic Barton, Managing Director, McKinsey & Co.:

“Culture.“Culture.””

““LEARN NOT LEARN NOT TO BE TO BE

CAREFUL.”CAREFUL.”

—Photographer Diane Arbus to her students (Careful = The sidelinesCareful = The sidelines, from

Harriet Rubin in The Princessa)

““EXPERIMENT EXPERIMENT FEARLESSLY”FEARLESSLY”

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

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

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

““If things seem under If things seem under control, you’re just not control, you’re just not going fast enough.” going fast enough.”

——Mario Andretti, race driverMario Andretti, race driver

““I’m not comfortable I’m not comfortable unless I’m uncomfortable.” unless I’m uncomfortable.”

——Jay ChiatJay Chiat

““If it works, it’s obsolete.”If it works, it’s obsolete.”

——Marshall McLuhanMarshall McLuhan

WTTMTWTTMTAMTMMAMTMMTFTFWW

WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTTHINGSTHINGSANDANDMAKESMAKESTHETHEMOSTMOSTMISTAKESMISTAKESTHETHEFASTESTFASTESTWINSWINS

Innovation Strategy #6Innovation Strategy #6

We Are WhatWe Are What We Eat. We Eat.

We Are Who We We Are Who We Spend Time With.Spend Time With.

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

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

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

Axiom: Axiom: At its core, At its core, evereveryy (!!!) (!!!)

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

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

Diversity: Diversity: ““IT IS HARDLY POSSIBLE TO IT IS HARDLY POSSIBLE TO OVERRATE THE VALUE OF PLACING OVERRATE THE VALUE OF PLACING HUMAN BEINGS IN CONTACT WITH HUMAN BEINGS IN CONTACT WITH PERSONS DIS-SIMILAR TO THEMSELVES, PERSONS DIS-SIMILAR TO THEMSELVES, AND WITH MODES OF THOUGHT AND AND WITH MODES OF THOUGHT AND ACTION UNLIKE THOSE WITH WHICH ACTION UNLIKE THOSE WITH WHICH THEY ARE FAMILIAR. SUCH THEY ARE FAMILIAR. SUCH COMMUNICATION HAS ALWAYS BEEN, COMMUNICATION HAS ALWAYS BEEN, AND IS PECULIARLY IN THE PRESENT AND IS PECULIARLY IN THE PRESENT AGE, ONE OF THE PRIMARY SOURCES AGE, ONE OF THE PRIMARY SOURCES OF PROGRESSOF PROGRESS.”.” —John Stuart Mill—John Stuart Mill

Crowd Source: EVERYTHING

CxQCxQ/Connectional Intelligence: /Connectional Intelligence:

“Connectional Intelligence is the ability “Connectional Intelligence is the ability to combine the to combine the world’s diversitworld’s diversityy of of ppeoeopple, networks, discile, networks, discipplines and lines and resourcesresources, forging connections that , forging connections that create value, meaning, and create value, meaning, and breakthrough results.”breakthrough results.”

Source: Erica Dhawan and Saj-Nicole Joni,Source: Erica Dhawan and Saj-Nicole Joni, Get BIG Things Done: Get BIG Things Done:

The Power of Connectional Intelligence* The Power of Connectional Intelligence* (*Superb book(*Superb book!!))

Innovation Strategy #7Innovation Strategy #7 Social Business/ Social Business/

Customer Customer EngagementEngagement

““Customer enCustomer enggaaggement is ement is movinmovingg from relativel from relativelyy

isolated market transactions isolated market transactions to deeplto deeplyy connected and connected and

sustained social sustained social relationshirelationshippss.. This basic change in This basic change in how we do business will make an impact how we do business will make an impact

on just about everything we do.”on just about everything we do.”

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

Welcome to the Age of Social Media:Welcome to the Age of Social Media: “It “It

takes takes 2020 yyears to build ears to build a rea repputation andutation and

55 minutes to ruin it minutes to ruin it.. Also, the Internet and technology Also, the Internet and technology

have made customers more have made customers more demanding., and they expect demanding., and they expect

information, answers, products, information, answers, products, responses, and resolutions sooner responses, and resolutions sooner

than ASAP.”than ASAP.” ——John DiJulius, John DiJulius, The Customer Service Revolution: Overthrow The Customer Service Revolution: Overthrow

Conventional Business, Inspire Employees, and Change the WorldConventional Business, Inspire Employees, and Change the World

““What used to be “What used to be “word of mouthword of mouth” ”

is now “is now “word of mouseword of mouse.” .” You You are either creatinare either creatingg

brand ambassadors or brand ambassadors or brand terrorists doinbrand terrorists doingg brand assassinationbrand assassination.”.”

——John DiJulius, John DiJulius, The Customer Service Revolution: Overthrow The Customer Service Revolution: Overthrow Conventional Business, Inspire Employees, and Change the WorldConventional Business, Inspire Employees, and Change the World

Innovation Strategy #8Innovation Strategy #8

DESIGNDESIGN!!

Design Design RulesRules!!

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

*August 2011*August 2011

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

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

Apple design:Apple design: “Huge “Huge degree of degree of

carecare.”.”

——Ian Parker, Ian Parker, New YorkerNew Yorker, 23 March 2015, , 23 March 2015, on Apple design chief Jony Iveson Apple design chief Jony Ives

Innovation Strategy #9Innovation Strategy #9

Women BUY Women BUY [Everything][Everything]!!

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

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

WOMENWOMEN.”.”

Source: Headline, Economist

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

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

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

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

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

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

““Women areWomen are THETHE majority majority

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

““The The MOST MOST SIGNIFICANT SIGNIFICANT

VARIABLEVARIABLE inin EVERYEVERY sales situation is thesales situation is the

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

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

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

Innovation Strategy #9AInnovation Strategy #9A

Women Are Women Are The The BestBest Leaders Leaders

““Women are rated higher in fully Women are rated higher in fully

1212 of the of the 1616 competencies competencies that go into outstanding that go into outstanding

leadership. leadership. And two of the And two of the traits where women outscored traits where women outscored men to the highest degree — men to the highest degree — taking initiative and driving taking initiative and driving for results — have long been for results — have long been

thought of as particularly male thought of as particularly male strengths.”strengths.”

——Harvard Business ReviewHarvard Business Review

For One [For One [BIGBIG] Thing …] Thing …

““McKinsey & Company found that McKinsey & Company found that the international companies with the international companies with more women on their corporate more women on their corporate

boards boards far outperformedfar outperformed the average the average company in return on equity and company in return on equity and

other measures. Operating profit other measures. Operating profit

was …was … 56%56% higher.”higher.”

Source: Nicholas Kristof, “Twitter, Women, and Power,” Source: Nicholas Kristof, “Twitter, Women, and Power,” NYTimesNYTimes, 1024.13, 1024.13

Innovation Strategy #10Innovation Strategy #10

WeWe [Old Folks like me] [Old Folks like me] GotGot

thethe $$$$$$$$$$$$

44-6544-65:: “NEW “NEW CUSTOMER CUSTOMER MAJORITY”MAJORITY”

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

USAUSA

>50: 109,000,000>50: 109,000,000Next 10 years:Next 10 years:

>50: 19,000,000 >50: 19,000,000 18-49: 6,000,000 18-49: 6,000,000

(40% of adults/(40% of adults/50% spending/50% spending/

10% marketing budgets)10% marketing budgets)Sources: ImmersionActive.com* (*Sources: ImmersionActive.com* (*“Silver Tsunami”“Silver Tsunami”), AARP), AARP

50@50:50@50:

“PEOPLE TURNING 50 “PEOPLE TURNING 50

TODAY HAVE TODAY HAVE MORE MORE THANTHAN HALFHALF OF OF

THEIR ADULT LIFE AHEAD THEIR ADULT LIFE AHEAD OF THEM.”OF THEM.” —Bill Novelli, 50+: IGNITING A REVOLUTION TO

REINVENT AMERICA

Innovation Strategy #11Innovation Strategy #11

The The [ENORMOUS][ENORMOUS] “Services “Services

Added” Added” OpportunityOpportunity

““Rolls-RoyceRolls-Royce now earns now earns

moremore from tasks such from tasks such as managing clients’ as managing clients’ overall procurement overall procurement

strategies and maintaining strategies and maintaining aerospace engines it sells aerospace engines it sells than it does from making than it does from making

them.”them.”——EconomistEconomist

IBIBMMtoto

IIBBMM

UUPPSS toto

UPUPSS

UPS = UUPS = Unitednited PProblemroblem

SSolversolvers

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

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

WSJ/0910.13:WSJ/0910.13: “What matters most “What matters most to a company over time? to a company over time?

Strategy or culture? Strategy or culture?

Dominic Barton, Managing Director, McKinsey & Co.:Dominic Barton, Managing Director, McKinsey & Co.:

“Culture.“Culture.””

Innovation Strategy #12Innovation Strategy #12

PeoplePeople[REALLY][REALLY]

FirstFirst

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

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

rewarding lives …rewarding lives …

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

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

worth worth doindoing.”g.”

——Richard BransonRichard Branson

““You have to treatYou have to treat your employees like your employees like

customers.”customers.” —Herb Kelleher—Herb Kelleher

““If you want staff to If you want staff to give great service, give give great service, give great service to staff.” great service to staff.” ——

Ari WeinzweigAri Weinzweig

““What employees experience, Customers will. The best marketing is What employees experience, Customers will. The best marketing is

happy, engaged employees.happy, engaged employees. YOUR YOUR CUSTOMERS CUSTOMERS

WILL NEVER BE WILL NEVER BE ANY HAPPIER ANY HAPPIER THAN YOUR THAN YOUR

EMPLOYEESEMPLOYEES.”.” —John DiJulius, —John DiJulius,

The Customer Service Revolution: Overthrow Conventional The Customer Service Revolution: Overthrow Conventional Business, Inspire Employees, and Change the WorldBusiness, Inspire Employees, and Change the World

““The The 44 most most

important important wordswords in any in any

organization are …organization are …

THE FOUR MOST IMPORTANT WORDS IN ANY ORGANIZATIONTHE FOUR MOST IMPORTANT WORDS IN ANY ORGANIZATION

ARE …ARE … “WHAT “WHAT DO DO YOUYOU THINK?”THINK?”

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

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

rarely make rarely make significant significant

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

Innovation Strategy #12AInnovation Strategy #12A

SoftwareSoftware Is EatingIs Eating the Worldthe World

[And What To Do About It][And What To Do About It]

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

inability to inability to understand the understand the

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

““Human level capability has not turned Human level capability has not turned out to be a special stopping point fromout to be a special stopping point from

an engineering perspective.”an engineering perspective.”

——Illah Reza Nourbakhsh, Illah Reza Nourbakhsh, Robot Futures/2013Robot Futures/2013

““SOFTWARE IS EATING THE WORLD.”SOFTWARE IS EATING THE WORLD.”

——Marc Andreessen/2014Marc Andreessen/2014

““The computers are in control. We just The computers are in control. We just live in their world.”live in their world.” —Danny Hillis, Thinking Machines/2011—Danny Hillis, Thinking Machines/2011

““The intellectual talents of highly The intellectual talents of highly trained professionals are no more trained professionals are no more

protected from automation than is the protected from automation than is the driver’s left turn.”driver’s left turn.”

——Nicholas Carr,Nicholas Carr, The Glass Cage: Automation and Us The Glass Cage: Automation and Us

The New Logic: Scale w/o EmploymentThe New Logic: Scale w/o Employment

Kodak: 1988/Kodak: 1988/145,000 employees; 2012/bankruptemployees; 2012/bankrupt

Instagram: 30,000,000 customers/Instagram: 30,000,000 customers/

13 employees employees

(WhatsApp: 450,000,000 (WhatsApp: 450,000,000

customers/ customers/ 55 employees/ employees/Valued @ $19,000,000,000)Valued @ $19,000,000,000)

Source: Robert Reich’s Blog/0317.15Source: Robert Reich’s Blog/0317.15

Innovation Strategy #12BInnovation Strategy #12B

Training = Training = InvestmentInvestment

#1#1!!

CORPORATE MANDATE #1 2014:CORPORATE MANDATE #1 2014: Your Your principal moral obligation as a principal moral obligation as a

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

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

extent of your abilities. The good extent of your abilities. The good news: news: This is also theThis is also the

#1 mid- to lon#1 mid- to longg-term-term … … p profit maximization straterofit maximization strategy!gy!

Bet #4:Bet #4: >> 8 of 10 >> 8 of 10 CEOs, in 45-min CEOs, in 45-min “tour d’horizon” “tour d’horizon” of their biz, would of their biz, would NOTNOT mention mention training.training.

Innovation Strategy #13Innovation Strategy #13

MBWAMBWA//2525((MManaging anaging BBy y WWandering andering AAround)round)

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

stores— stores— at least at least 2525

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

places: Home Depot, Whole Foods, Crate places: Home Depot, Whole Foods, Crate & Barrel. I try to be a sponge to pick up & Barrel. I try to be a sponge to pick up

as much as I can.”as much as I can.” —Howard Schultz—Howard Schultz

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

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

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

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

and Growth.”and Growth.”

Innovation Strategy #14Innovation Strategy #14

Leading Leading “Crazy”“Crazy” in Crazy Timesin Crazy Times

Kevin Roberts’ CredoKevin Roberts’ Credo

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

10. AVOID MODERATIONAVOID MODERATION!!

““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 the lunaticlunatic frinfringgee.”.”

— Jack Welch— Jack Welch

Innovation Strategy #15Innovation Strategy #15

EXCELLENCEEXCELLENCE

ENTERPRISEENTERPRISE* (*AT ITS BEST):* (*AT ITS BEST): An An emotionalemotional, , vitalvital, , innovativeinnovative, j, jooyyfulful, , creativecreative, , entreentreppreneurialreneurial endeavor that elicits endeavor that elicits maximum maximum

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