Conrad Hilton …Conrad Hilton …

ConradConrad HiltonHilton, at a gala celebrating his , at a gala celebrating his career, was called to the podium and career, was called to the podium and

asked,asked, “What were the most important

lessons you learned in your long and

distinguished career?” His answer …His answer …

““remember remember to tuck the to tuck the

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

““Execution Execution isis strategy.”strategy.”

—Fred Malek—Fred Malek

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

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

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

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

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

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

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

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

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

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

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

““People People leave leave

managers not managers not companies.”companies.”

——Marcus BuckinghamMarcus Buckingham

““The The fourfour most most imimpportantortant 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

Tom Peters’Tom Peters’

Excellence.Excellence.Always.Always.

The choice is The choice is yours.yours.

HCA 2012 CEO SummitHCA 2012 CEO SummitScottsdale/02 April 2012Scottsdale/02 April 2012

(Slides at tompeters.com and excellencenow.com)(Slides at tompeters.com and excellencenow.com)

Excellence in my hospital or lab or franchised fast-Excellence in my hospital or lab or franchised fast-food restaurant or distribution center or division food restaurant or distribution center or division

imbedded in a monster outfit is a imbedded in a monster outfit is a whollwholly y discretionardiscretionary y choicechoice, regardless of regulations or legislation or , regardless of regulations or legislation or even corporate policy. Some leaders, at any level, even corporate policy. Some leaders, at any level,

produce unrelenting excellence in the face of produce unrelenting excellence in the face of astounding pressure and ambiguity—there are astounding pressure and ambiguity—there are

absolutely no excuses if one chooses to accept less. absolutely no excuses if one chooses to accept less. Moreover, excellence is not a “year-end goal,” or Moreover, excellence is not a “year-end goal,” or

some such. Excellence is your next conversation or some such. Excellence is your next conversation or meeting or even email. Excellence, pure and simple meeting or even email. Excellence, pure and simple

and in its entiretand in its entirety, is the next five minutes. y, is the next five minutes. Or not.

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

——Bil ParcellsBil Parcells

——Lou GerstnerLou Gerstner——Jack WelchJack Welch——Lord Lord NelsonNelson——Bull Bull HalseHalseyy——George George PattonPatton——Bill CreechBill Creech——Ronald ReaganRonald Reagan——Glenn SteeleGlenn Steele——Jim Jim HarbauHarbaugghh

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, 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 in the service of othersEXCELLENCE in the service of others.****Employees, Customers, Suppliers, Communities, Owners, Temporary partners**Employees, Customers, Suppliers, Communities, Owners, Temporary partners

XFX = #1XFX = #1

XFX = XFX =

#1#1***Cross-Functional *Cross-Functional eXcellenceeXcellence

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

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

through thethrough the

develodeveloppmentment ofof friendshifriendshippss.”.”

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

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

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

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

Formal evaluations. Formal evaluations. EverEveryyoneone, , starting with the starting with the

receptionist, should have a receptionist, should have a sisiggnificantnificant XFX rating XFX rating

component in their component in their evaluation. (The “XFX evaluation. (The “XFX

Performance” should be Performance” should be among the Top 3 items in among the Top 3 items in

allall managers’ evaluations.) managers’ evaluations.)

"The personnel committees on all three "The personnel committees on all three campuses have become aggressive in campuses have become aggressive in

addressing the issue of physicians who addressing the issue of physicians who are not living the Mayo value of are not living the Mayo value of

exhibiting respectful, collegial behavior exhibiting respectful, collegial behavior

to all team members.to all team members. Several physicians have been

suspended without pay or terminated.”

——Leonard Barry & Kent Seltman, Leonard Barry & Kent Seltman, Management Lessons from Mayo ClinicManagement Lessons from Mayo Clinic

““I am I am hundreds of hundreds of times better heretimes better here [than[than

in my prior hospital assignment]in my prior hospital assignment] because of because of the support system. the support system. It’s like It’s like

yyou were workinou were workingg in an in an ororgganism; anism; yyou are not a ou are not a

sinsinggle cell when le cell when yyou are out ou are out there there ppracticinracticingg.’”.’” —quote from Dr. Nina Schwenk, —quote from Dr. Nina Schwenk,

in Chapter 3, “Practicing Team Medicine,” from Leonard Berry & Kent Seltman, in Chapter 3, “Practicing Team Medicine,” from Leonard Berry & Kent Seltman, from from Management Lessons From Mayo ClinicManagement Lessons From Mayo Clinic

"When I was in medical school, I spent "When I was in medical school, I spent hundreds of hours looking into a hundreds of hours looking into a

microscope—a skill I never needed to microscope—a skill I never needed to

know or ever use. know or ever use. Yet I didn't have a single class that

taught me communication or teamwork skills—

something I need every day I walk into the hospital.”

——Peter Pronovost, Peter Pronovost, Safe Patients, Smart Hospitals*Safe Patients, Smart Hospitals*

*Checklist: 10% system, 90%

“culture”  

““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 it isis the the game.”game.” —Lou Gerstner,—Lou Gerstner,

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

Implementing 6-SigmaImplementing 6-Sigma

Case #1/United States Air ForceCase #1/United States Air Force Tactical Air Command/Tactical Air Command/ GEN Creech/“Drive by” GEN Creech/“Drive by” Case #2/Milliken & Company/CEO Milliken/Case #2/Milliken & Company/CEO Milliken/ the 45-minute ride the 45-minute ride Case #3/Johns Hopkins/Dr. Peter Pronovost/Case #3/Johns Hopkins/Dr. Peter Pronovost/ Checklist PLUS Checklist PLUS Case #4/Commerce Bank/CEO Hill/RED buttonCase #4/Commerce Bank/CEO Hill/RED buttonCase #5/Veterans Administration/”culture of hiding”Case #5/Veterans Administration/”culture of hiding”Case #6/Mayo Clinic/Dr. Mayo/“100 times better”Case #6/Mayo Clinic/Dr. Mayo/“100 times better”Case #7/Toyota/growth or bustCase #7/Toyota/growth or bustCase #8/IBM/Gerstner flummoxedCase #8/IBM/Gerstner flummoxedCase #9/Germany’s Mittelstand/in the genesCase #9/Germany’s Mittelstand/in the genesCase #10/Department of Defense ModelCase #10/Department of Defense Model Installations/ASD Stone/”Model Installations”Installations/ASD Stone/”Model Installations”

““ If God spoke to me by saying, ‘Mark, you’re down to your last three words: What If God spoke to me by saying, ‘Mark, you’re down to your last three words: What

would you want to say to your fellow humans that would make the most positive would you want to say to your fellow humans that would make the most positive

impact?’ It would be a close call between Love Thy Neighbor and …impact?’ It would be a close call between Love Thy Neighbor and …

Wash Wash Your Your

Hands!”Hands!”—Mark Pettus, M.D., The Savvy Patient—Mark Pettus, M.D., The Savvy Patient

““Sanitary revolution”: Sanitary revolution”: mortality in major citiesmortality in major cities

downdown 5555%%

between 1850 and 1915between 1850 and 1915Source: Tom Farley & Deborah Cohen, Source: Tom Farley & Deborah Cohen, Prescription for a Healthy NationPrescription for a Healthy Nation

““The results are deadly. In addition The results are deadly. In addition

to the to the 98,000 killed by medical killed by medical

errors in hospitals and the errors in hospitals and the 90,000 deaths caused by hospital deaths caused by hospital

infections, another infections, another 126,000 die die from their doctor’s failure to from their doctor’s failure to

observe evidence-based protocols observe evidence-based protocols for for jjustust fourfour common conditions: common conditions:

hypertension, heart attack, hypertension, heart attack, pneumonia, and colorectal cancer.” pneumonia, and colorectal cancer.”

[TP: total [TP: total 314,000]]Source:Source: Best Care Anywhere: Why VA Healthcare Is Better Than YoursBest Care Anywhere: Why VA Healthcare Is Better Than Yours/Phillip Longman/Phillip Longman

1818

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

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

18 18 ……

18 … 18 … secondsseconds!!

““I wasn’t bowled over by I wasn’t bowled over by [David Boies][David Boies] intelligence … What impressed me was intelligence … What impressed me was

that when he asked a question, he waited that when he asked a question, he waited

for an answer. for an answer. He not only He not only listened … listened … he made me he made me feel like I was the only feel like I was the only

person in the roomperson in the room.”.” —Lawyer —Lawyer

_____, on his first, inadvertent meeting with renown attorneyDavid Boies, _____, on his first, inadvertent meeting with renown attorneyDavid Boies, from Marshall Goldsmith, “The One Skill That Separates,” from Marshall Goldsmith, “The One Skill That Separates,” Fast CompanyFast Company

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

of of RespectRespect..

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

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

[cont.][cont.]

25/125/1

MBWAMBWA

““The leader must have The leader must have infectious optimism. … infectious optimism. …

The final test of a leader The final test of a leader is the feeling you have is the feeling you have

when you leave his when you leave his presence after a presence after a

conference. Have you a conference. Have you a feeling of uplift and feeling of uplift and

confidence?”confidence?” —Field Marshall Bernard Montgomery—Field Marshall Bernard Montgomery

You = You = Your Your

calendarcalendar**

*The calendar *The calendar nevernever lies.lies.

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

concentration. Effective concentration. Effective executives do first things first executives do first things first

… and they do … and they do oneone

thing at a time.”thing at a time.” —Peter Drucker—Peter Drucker

TGRTGRs s

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?”

““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,American Statesman (1777-1852)

K = R = PK = R = P**

*Kindness = Repeat Business = Profit*Kindness = Repeat Business = Profit

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

nonenone of THE top 15 factors of THE top 15 factors

determining determining PPatient atient SSatisfaction atisfaction referred to patient’s health referred to patient’s health outcomeoutcome..

Instead:Instead: directldirectly related to y related to StaffStaff Interaction;Interaction; directldirectly correlated with y correlated with

EmploEmployyee Satisfactionee Satisfaction

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

TM:TM: “The “The treat’streat’s

on us …”on us …”

With a new and forthcoming policy on With a new and forthcoming policy on apologies … Toro, the lawn mower apologies … Toro, the lawn mower folks, reduced the average cost of folks, reduced the average cost of

settling a claim fromsettling a claim from $$115,000115,000 in in

1991 to1991 to $$35,00035,000 in 2008 in 2008 …… and and the companthe companyy hasn’t hasn’t been to trial in the been to trial in the

lastlast

1515 y yearsears!!

<TG<TGWWandand … …

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

““ExperiencesExperiences are as distinct are as distinct from servicesfrom services

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

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

Little =Little =

BIGBIG

Big carts =Big carts =

1.5X1.5XSource: WalmartSource: Walmart

6.56.5 feet Away feet Away = =

--6363% % “Seconds”*“Seconds”*

BBTs BBTs

——12 different prosthetic knee12 different prosthetic knee implantsimplants——Loss of $2M per yearLoss of $2M per year——Reduce to 2 devices (evidence-Reduce to 2 devices (evidence- based criteria/Strong initialbased criteria/Strong initial resistance)resistance)——Two years, to profit of $6Two years, to profit of $6 million for knee and hipmillion for knee and hip replacements (equal outcomereplacements (equal outcome success, less complications)success, less complications)

Source: Leonard Barry & Kent Seltman, Source: Leonard Barry & Kent Seltman, Management Lessons from Mayo ClinicManagement Lessons from Mayo Clinic

Evidence-based medicineEvidence-based medicineEvidence-Evidence-INFLUENCEDINFLUENCED Medicine MedicineM.D.-led projectsM.D.-led projects

___________ costs Medicare seven thousand dollars more per person

each year than does the average city in America. But not, so far as one can tell, because it’s delivering better health care. … Compared with

patients in ________ and nationwide, patients in _______ got more of pretty much everything —more diagnostic testing, more hospital treatment, more surgery, more home care. The Medicare payment data provided the most detail. Between 2001 and 2005, critically ill Medicare patients received almost fifty per cent more specialist visits in _______ than in ______, and were two-thirds more likely to see ten or more specialists in a six-month period. In 2005 and 2006, patients in

_______ received twenty per cent more abdominal ultrasounds, thirty per cent more bone-density

studies, sixty per cent more stress tests with echocardiography, two hundred per cent more nerve-conduction studies to diagnose carpal-tunnel syndrome,

and five hundred and fifty percent more urine-

flow studies to diagnose prostate troubles. They received one-fifth to two-thirds more gallbladder operations, knee replacements, breast biopsies, and bladder scopes. They also

received two to three times as many pacemakers,

implantable defibrillators, cardiac-bypass operations, carotid endarterectomies, and coronary-

artery stents. And Medicare paid for five times as many home-nurse

visits. The primary cause of ______’s extreme costs was, very simply, the across-

the-board overuse of medicine. — “Cost Conundrum:

What a Texas town can teach us about health care,” by Atul Gawande, The New Yorker, June 1, 2009

14,00014,00020,00020,000

3030

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

3030/Craigslist/Craigslist

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