excellence now now tom peters/17 november 2012/moscow (slides @ tompeters.com/excellencenow.com)

ExcellenceExcellence NOWNOW

Tom Peters/17 November 2012/MoscowTom Peters/17 November 2012/Moscow(slides @ tompeters.com/excellencenow.com)(slides @ tompeters.com/excellencenow.com)

Excellence.Excellence. Always. Always.

If notIf not Excellence,Excellence, what?what?

If notIf not ExcellenceExcellence now, when?now, when?

Novosibirsk 2006/EnterpriseNovosibirsk 2006/Enterprise** (*at its (*at its best):best): An An emotionalemotional, , vitalvital, , innovativeinnovative, , jojoyyfulful, , creativecreative, , entreentreppreneurialreneurial endeavor that elicits maximum endeavor that elicits maximum

concerted humanconcerted human potential in thepotential in the wholehearted pursuit of wholehearted pursuit of EXCELLENCE inEXCELLENCE in serviceservice of others of others.**

**Employees, Customers, Suppliers, Communities, Owners, Temporary partners**Employees, Customers, Suppliers, Communities, Owners, Temporary partners

Sydney 2007/1Sydney 2007/1stst Drucker Drucker CommemorativeCommemorative Conference Conference

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

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

1/4096 @ excellencenow.com1/4096 @ excellencenow.com

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

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

worth worth doindoing.”g.”

——Richard BransonRichard Branson

7 Steps to Sustaining Success7 Steps to Sustaining Success

You take care of the people. You take care of the people. The people take care of the service. The people take care of the service. The service takes care of the customer.The service takes care of the customer.The customer takes care of the profit. The customer takes care of the profit. The profit takes care of the re-investment.The profit takes care of the re-investment.The re-investment takes care of the re-invention. The re-investment takes care of the re-invention. The re-invention takes care of the future.The re-invention takes care of the future.(And at every step the only measure is (And at every step the only measure is EXCELLENCEEXCELLENCE.).)

Part Part ONEONE

Little =Little =

BIGBIG

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.

It It BEGINSBEGINS (and (and ENDSENDS) )

in the …in the …

ParkinParking g lotlot**

*Disney*Disney

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

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

Red light flashes=Red light flashes=

-10%-10%

NationalNational “Brand”/ “Brand”/ 2-cent2-cent candycandy

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?”

Compression Compression Hose = Hose = 10,00010,000

30 30 minutesminutes = = 1%1%$25M/$20M/$25M/$20M/$200K$200K

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

#10#10

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

$B$BSource: PepsiCoSource: PepsiCo

Big carts =Big carts =

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

#11#11

<TG<TGWWand …and …

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

CustomersCustomers describing their describing their service experience as service experience as

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

the service experience they the service experience they provide asprovide as

“ “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?

““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

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

CCXXO*O**Chief e*Chief eXXperience Officerperience Officer

#12#12

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.”.”

You get ’em You get ’em inin the the door with “location, door with “location,

location, location”—and location, location”—and a terrific architect. a terrific architect. You You keep ’em keep ’em comincoming g backback

with the tucked in with the tucked in shower curtain!shower curtain!**

*Profit rarely comes from transaction #1; *Profit rarely comes from transaction #1; it is a byproduct of transaction it is a byproduct of transaction #2, #3, #4#2, #3, #4 … …

““Execution Execution isis strategy.”strategy.” —Fred Malek—Fred Malek

Sports:Sports: You beat You beat yourself!yourself!

““ExecutionExecution is is thethe j jobob of the of the

business business leaderleader.”.”——Larry BossidyLarry Bossidy & Ram

Charan/ Execution: The Discipline of Getting Things Done

#13#13

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

(1)(1) Half-day/25 ideasHalf-day/25 ideas(2)(2) One week/5 experimentsOne week/5 experiments(3) (3) One month/Select best 2One month/Select best 2(4) (4) 60-90 days/Roll out60-90 days/Roll out

Little =Little =

BIGBIG

Part Part TWOTWO

FIVEFIVE “First “First things Before things Before

First Things …”First Things …”

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

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

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

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

same awareness?same awareness?

#1#1 cause ofcause of

employee employee Dis-satisfaction?Dis-satisfaction?

““People People leave leave

managers managers notnot companies.”companies.”

——Dave WheelerDave Wheeler

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

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

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

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

XFX = XFX = #1#1**

*Cross-Functional *Cross-Functional eXcellence eXcellence

Never Never waste a waste a lunch!lunch!

““Personal Personal relationships are the relationships are the fertile soil from which fertile soil from which all advancement, all advancement, allall

success, success, allall achievement in realachievement in real

life grow.”life grow.” —Ben Stein—Ben Stein

% XF % XF

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

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

XFX:XFX: SocialSocial accelerators …accelerators …**

**See See “LONG”“LONG” version of presentation version of presentation at tompeters.com for moreat tompeters.com for more

XFX/Typical XFX/Typical SocialSocial Accelerators Accelerators

1. EVERYONE’s [more or less] JOB #1: Make friends in other 1. EVERYONE’s [more or less] JOB #1: Make friends in other functions! (Purposefully. Consistently. Measurably.)functions! (Purposefully. Consistently. Measurably.)2. “Do lunch” with people in other functions!! Frequently!! 2. “Do lunch” with people in other functions!! Frequently!! (Minimum 10% to 25% for everyone? Measured.)(Minimum 10% to 25% for everyone? Measured.)3. Ask peers in other functions for references so you can 3. Ask peers in other functions for references so you can become conversant in their world. (It’s one helluva sign become conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-ism.) of ... GIVE-A-DAMN-ism.) 4. Religiously invite counterparts in other functions to your 4. Religiously invite counterparts in other functions to your team meetings. Ask them to present “cool stuff” from “their team meetings. Ask them to present “cool stuff” from “their world” to your group. (Useful. Mark of respect.)world” to your group. (Useful. Mark of respect.)5. 5. PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: TO ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ONCE A DAY … make a short call or visit or send an email of ONCE A DAY … make a short call or visit or send an email of “Thanks” for some sort of XFX gesture by your folks and “Thanks” for some sort of XFX gesture by your folks and some other function’s folks.)some other function’s folks.) 6. Present counterparts in other functions awards for 6. Present counterparts in other functions awards for service to your group. Tiny awards at least weekly; and an service to your group. Tiny awards at least weekly; and an “Annual“Annual All-Star Supporters [from other groups] Banquet” All-Star Supporters [from other groups] Banquet” modeled after superstar salesperson banquets. modeled after superstar salesperson banquets.

XFX/: Typical XFX/: Typical SocialSocial Accelerators Accelerators

16. Formal evaluations. Everyone, starting with the 16. Formal evaluations. Everyone, starting with the receptionist, should have a significant XF rating component in receptionist, should have a significant XF rating component in their evaluation. (The “XFX Performance” should be among their evaluation. (The “XFX Performance” should be among the Top 3 items in all managers’ evaluations.)the Top 3 items in all managers’ evaluations.)17. 17. Every functional unit should have strict and extensive Every functional unit should have strict and extensive measures of “customer satisfaction” based on evaluations measures of “customer satisfaction” based on evaluations from other functions of its usefulness and effectiveness and from other functions of its usefulness and effectiveness and value-added to the enterprise as a whole. value-added to the enterprise as a whole. 18. Demand XF experience for, especially, senior jobs. For 18. Demand XF experience for, especially, senior jobs. For example, the U.S. military requires all would-be generals and example, the U.S. military requires all would-be generals and admirals to have served a full tour in a job whose only goals admirals to have served a full tour in a job whose only goals were cross-functional achievements.were cross-functional achievements.19. “Deep dip.” Dive three levels down in the organization to 19. “Deep dip.” Dive three levels down in the organization to fill a senior role with some one who has been noticeably pro-fill a senior role with some one who has been noticeably pro-active on adding value via excellent cross-functional active on adding value via excellent cross-functional integration. integration. 20. XFX is … PERSONAL … as well as about organizational 20. XFX is … PERSONAL … as well as about organizational effectiveness. PXFX [Personal XFX] is arguably the #1 effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to personal success—in terms of organizational Accelerant to personal success—in terms of organizational career, freelancer/Brand You, or as entrepreneur. career, freelancer/Brand You, or as entrepreneur.

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

““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

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

“I”“I” oror “we”“we” during aduring a

job interview.job interview.

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

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

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

function.function.

I would hazard a guess I would hazard a guess that most CEOs see IT that most CEOs see IT

investments as a investments as a “strategic necessity,” but “strategic necessity,” but see training expenses as see training expenses as

“a necessary evil.”“a necessary evil.”

(1)(1) Training merits Training merits ““C-level” C-level” status! status!(2)(2) Top trainers should Top trainers should be be paid a king’spaid a king’s ransomransom—and be of—and be of the same caliber asthe same caliber as top marketers ortop marketers or researchers.researchers.

No company ever No company ever expended too much expended too much thouthougghtht//efforteffort/ / $$$$$$$$

on training!on training!**

**ESPECIALLYESPECIALLY … small company … small company

Q3 2011/BLSQ3 2011/BLS

++3.13.1//Non-farm productivity growthNon-farm productivity growth

+3.8/+3.8/Non-farm outputNon-farm output

+0.6/+0.6/Non-farm hours workedNon-farm hours worked

++5.45.4//Manufacturing productivityManufacturing productivity

+4.7/+4.7/Manufacturing outputManufacturing output

-0.6//Manufacturing hours workedManufacturing hours worked

Source: Bureau of Labor Statistics/03 November 2011Source: Bureau of Labor Statistics/03 November 2011

““The root of our problem isThe root of our problem is not that we’re in a Great not that we’re in a Great

Recession or a Great Stagnation, Recession or a Great Stagnation, but rather that we are inbut rather that we are in

the early throes of a Great the early throes of a Great Restructuring. Our technologies Restructuring. Our technologies are racing ahead, but many of are racing ahead, but many of

our skills and organizations are our skills and organizations are lagging behind.”lagging behind.”

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

Legal industry/Pattern Legal industry/Pattern Recognition/Discovery (e-Recognition/Discovery (e-

discovery algorithms):discovery algorithms):

500500 lawyers to … lawyers to …

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

““A bureaucrat is A bureaucrat is an expensive an expensive microchip.”microchip.”

——Dan Sullivan, consultant and executive coachDan Sullivan, consultant and executive coach

China China tootoo/Foxconn:/Foxconn:

1,000,000 1,000,000 robots in next robots in next

3 years3 yearsSource:Source: Race AGAINST the Machine, Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfeeErik Brynjolfsson and Andrew McAfee

A 15-PointA 15-Point Human Capital Human Capital

Asset Development Asset Development ManifestoManifesto

World Strategy ForumWorld Strategy Forum The New Rules: Reframing CapitalismThe New Rules: Reframing Capitalism

Seoul, KoreaSeoul, KoreaTom Peters/0615.12Tom Peters/0615.12

A 15-Point Human Capital Development A 15-Point Human Capital Development ManifestoManifesto

1. 1. “Corporate social responsibility” starts at “Corporate social responsibility” starts at home—i.e., inside the enterprise!home—i.e., inside the enterprise! MAXIMIZING MAXIMIZING GDD/Gross Domestic Development of the GDD/Gross Domestic Development of the workforce is the primary source of mid-term and workforce is the primary source of mid-term and beyond growth and profitability—and maximizes beyond growth and profitability—and maximizes national productivity and wealth. (Re national productivity and wealth. (Re profitability: profitability: If you want to serve the customer If you want to serve the customer with uniform Excellence, then you must FIRST with uniform Excellence, then you must FIRST effectiveleffectivelyy and faithfull and faithfullyy serve those who serve serve those who serve the customer—i.e. our emplothe customer—i.e. our employyees, via ees, via maximizinmaximizingg tools and tools and pprofessional rofessional develodeveloppmentment.).)

3. 3. Three-star generals and admirals (and Three-star generals and admirals (and symphony conductors and sports coaches and symphony conductors and sports coaches and police chiefs and fire chiefs) OBSESS about police chiefs and fire chiefs) OBSESS about training.training. Why is it an almost dead certainty that Why is it an almost dead certainty that in a random 30-minute interview you are in a random 30-minute interview you are unlikely to hear a CEO touch upon this topic? (unlikely to hear a CEO touch upon this topic? (I I would hazard a would hazard a gguess that most CEOs see IT uess that most CEOs see IT investments as a “strateinvestments as a “strateggic necessitic necessityy,” but see ,” but see trainintrainingg ex exppenses as “a necessarenses as “a necessaryy evil evil.”).”)

4. 4. Proposition/axiom: Proposition/axiom: The CTO/Chief TRAINING The CTO/Chief TRAINING Officer is arOfficer is argguabluablyy the #1 staff the #1 staff jjob in the ob in the enterenterpprise, at least on a rise, at least on a ppar with, saar with, sayy, the CFO , the CFO or CIO or head of R&Dor CIO or head of R&D.. (Again, external (Again, external circumstances—see immediately above—are circumstances—see immediately above—are forcing our hand.)forcing our hand.)

5. 5. The training budget takes precedence over The training budget takes precedence over the capital budget.the capital budget. PERIOD. It’s easier fun to PERIOD. It’s easier fun to get you picture taken next to a hew machine. get you picture taken next to a hew machine. But how do you get a photo of a new and much But how do you get a photo of a new and much improved attitude in a key distribution center? improved attitude in a key distribution center? But the odds are 25:1 that the new attitude But the odds are 25:1 that the new attitude will add more to the bottom line than will the will add more to the bottom line than will the glorious state-of-the-art machine. glorious state-of-the-art machine.

6. 6. Human capital development should Human capital development should routinely sit atop any agenda or document routinely sit atop any agenda or document associated with enterprise strategy.associated with enterprise strategy. Most any Most any initiative you undertake should formally initiative you undertake should formally address implications for and contributions to address implications for and contributions to human capital asset development. human capital asset development.

7. 7. Every individual on the payroll should have Every individual on the payroll should have a benchmarked professional growth strategy.a benchmarked professional growth strategy. Every leader at every level should be evaluated Every leader at every level should be evaluated in no small measure on the collective in no small measure on the collective effectiveness of individual growth strategies—effectiveness of individual growth strategies—that is, each individual’s absolute growth is of that is, each individual’s absolute growth is of direct relevance to every leader’s assessed direct relevance to every leader’s assessed performance. performance.

““Knowledge becomes Knowledge becomes obsolete incredibly fast. obsolete incredibly fast.

The continuing The continuing professional educationprofessional education of adults is the No. 1 of adults is the No. 1

industry in the next 30 industry in the next 30 years.”years.” —Peter Drucker —Peter Drucker

11. 11. The national education infrastructure—The national education infrastructure—from kindergarten to continuing adult from kindergarten to continuing adult education—may well be National Priority #1.education—may well be National Priority #1. Moreover, the educational infrastructure must Moreover, the educational infrastructure must be altered radically to underpin support for the be altered radically to underpin support for the creative jobs that will be more or less the sole creative jobs that will be more or less the sole basis of future employment and national basis of future employment and national growth and wealth creation.growth and wealth creation.

““Human creativity is Human creativity is the ultimate economic the ultimate economic

resource.”resource.” —Richard Florida—Richard Florida

““Every child is born an Every child is born an artist. The trick is to artist. The trick is to

remain an artist.”remain an artist.” —Picasso—Picasso

SMEs To The Rescue!SMEs To The Rescue!

““We are in no danger of running We are in no danger of running out of new combinations toout of new combinations to

try. Even if technology froze try. Even if technology froze today, we have more possible today, we have more possible

ways of configuring the ways of configuring the different applications, machines, different applications, machines,

tasks, and distribution tasks, and distribution channels to create new channels to create new

processes and products thanprocesses and products than we could ever exhaust.”we could ever exhaust.”


13. 13. The great majority of us work in small The great majority of us work in small enterprises; hence national growth enterprises; hence national growth objectives based upon human capital objectives based upon human capital development MUST necessarily extend development MUST necessarily extend “downward” to even 1-person enterprises.“downward” to even 1-person enterprises. Collective productivity improvement through Collective productivity improvement through human capital development among small human capital development among small businesses has an unimaginably large—and businesses has an unimaginably large—and underappreciated—payoff. While many small underappreciated—payoff. While many small business appreciate the notion, they are business appreciate the notion, they are unprepared to take the steps necessary to unprepared to take the steps necessary to engage their, say, dozen employees in engage their, say, dozen employees in seeking productivity improvements.seeking productivity improvements.

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

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

18 …18 …

18 … 18 … SECONDSSECONDS!!

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

of of RespectRespect..

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

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

[cont.][cont.]

Listen = “Profession” = Study = Practice =

Evaluation = Enterprise Value

Is there a full-bore training Is there a full-bore training course in "Listening" for course in "Listening" for

100100%% ofof emempploloyyeesees, , CEO to receptionists? If CEO to receptionists? If

not, there ought to benot, there ought to be!!

Complain all Complain all you want, but you want, but

meetinmeetinggss are what you are what you

[boss] [boss] dodo!!

Meetings = #1 Meetings = #1 leadership leadership

opportunityopportunity

Meeting:Meeting: EverEveryy meetin meetingg that that does not stir the imadoes not stir the imaggination ination

and curiosity of attendees and and curiosity of attendees and increase bondinincrease bondingg and co- and co-

oopperation and eneration and enggaaggement ement and sense of worth and and sense of worth and

motivate ramotivate rappid action and id action and enhance enthusiasm is a enhance enthusiasm is a

ppermanentlermanentlyy lost o lost opppportunitortunity.y.

Part Part THREETHREE

Innovation’Innovation’s BIG s BIG

THREETHREE

1/461/46

Lesson46:Lesson46: WTTMTWWTTMTW

WhoeverWhoeverTriesTriesTheTheMostMostThingsThingsWinsWins

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

fixed them by doing it over and over, again and again.fixed them by doing it over and over, again and again. We do We do the same today. While our competitors are still sucking their the same today. While our competitors are still sucking their thumbs trying to make the design perfect, we’re already on thumbs trying to make the design perfect, we’re already on

prototype versionprototype version ##55.. By the time our rivals are By the time our rivals are

ready with wires and screws, we are on version ready 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 toothers plan how to

planplan——for monthsfor months.”.”

——Bloomberg by BloombergBloomberg by Bloomberg

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

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

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

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

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

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

““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)

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

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

““Fail.Fail. Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

““RewardReward excellent failures.

PunishPunish mediocre successes.”

—Phil Daniels, Sydney exec

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

inefficiency, fast , fast and furious and and furious and

numerous failures.”numerous failures.”—Kevin Kelly

““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))

Better yet:Better yet: WTTMTWTTMTAMTMMTFAMTMMTFWW

WhoeverWhoeverTriesTriesTheTheMostMostThingsThingsAndAndMakes Makes The The Most Most Mistakes Mistakes TheTheFastestFastestWinsWins

1/40961/4096

““You miss You miss

100100%%

of the shots of the shots you never you never

take.”take.” —Wayne—Wayne GretzkyGretzky

1/461/46A bias for action.A bias for action.(No. 1 “Attribute of Excellence” from (No. 1 “Attribute of Excellence” from In Search of ExcellenceIn Search of Excellence.).)

Ready. Fire. Aim.Ready. Fire. Aim.(H. Ross Perot/EDS. Vs GM: Ready. Aim. Aim. Aim. Aim. Aim. …)(H. Ross Perot/EDS. Vs GM: Ready. Aim. Aim. Aim. Aim. Aim. …)

Just do it!Just do it!(Nike.)(Nike.)

Move fast, break things.Move fast, break things.(Facebook.)(Facebook.)

Experiment fearlessly.Experiment fearlessly.Relentless trial and error.Relentless trial and error.

You miss 100% of the shots you never You miss 100% of the shots you never take.take.(Wayne Gretzky.)(Wayne Gretzky.)

Fail. Forward. Fast.Fail. Forward. Fast.Fail faster, succeed sooner.Fail faster, succeed sooner.(IDEO.)(IDEO.)

Reward excellent failures. Punish mediocre successes.Reward excellent failures. Punish mediocre successes.S.A.V.S.A.V.(Screw Around Vigorously)(Screw Around Vigorously)

Demo or die.Demo or die.You only find oil if you drill wells.You only find oil if you drill wells.WD40WD40(Water Displacement, 40 Tries.)(Water Displacement, 40 Tries.)

Ever notice that “What the hell” is always the right decision?Ever notice that “What the hell” is always the right decision?WTTMSWWTTMSW(Whoever Tries The Most Stuff Wins.)(Whoever Tries The Most Stuff Wins.)

WTTMSASTMSUTFWWTTMSASTMSUTFW(Whoever Tries The Most Stuff And Screws The Most Stuff Up The Fastest Wins.)(Whoever Tries The Most Stuff And Screws The Most Stuff Up The Fastest Wins.)

We We Are Are What What We Eat/We We Eat/We AreAre the Companythe Company

We KeepWe Keep

The “We are what we eat”/ The “We are what we eat”/ “We are who we associate with”“We are who we associate with”

Axiom: Axiom: At its core, At its core, evereveryy (!!!) (!!!) relationship-partnership decision relationship-partnership decision (employee, vendor, customer, etc, (employee, vendor, customer, etc, etc) is a etc) is a stratestrateggicic decision about: decision about:

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

Measure “StranMeasure “Stranggeness”/Portfolio Qualityeness”/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 onfocus on

inventing all its own products to developing … inventing all its own products to developing …

othersothers’’ inventions at inventions at least half the least half the

timetime.. One successfulOne successful

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

““Don’t Don’t benchmark, benchmark,

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

not evenly distributed” —William Gibson

““Don’t Don’t benchmark,benchmark,

‘‘OtherOther’ ’ markmark!!””

We We areare the the companycompany we keep!we keep!

ManaManaggee it! it!

“The Bottleneck … Is at The Bottleneck … Is at the Top of the Bottle. the Top of the Bottle. Where Where are you likely to find people with the are you likely to find people with the

least diversitleast diversityy of ex of expperienceerience, the , the larlarggest investment in the est investment in the ppastast,, and the g and the greatest reverence for reatest reverence for

industrindustryy do doggmama … …

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

Diversity … Diversity … perper sese … is a key … … is a key …

maybemaybe thethe keykey … … to effective and to effective and

innovative innovative decision making.decision making.

““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? last 90 days? How How do I do I gget in touch et in touch

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

CoCo-creation …-creation …

““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

Forgetting Forgetting >> Learning>> Learning

Forget>“Learn”Forget>“Learn”

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

innovative thoughts innovative thoughts

into your mind, into your mind, but how to get the old

ones out.” —Dee Hock—Dee Hock

WowWow!!

““Insanely Great”Insanely Great”Steve JobsSteve Jobs

“Radically thrilling” “Radically thrilling” BMW

Zappos 10 Corporate ValuesZappos 10 Corporate Values

Deliver Deliver “WOW!”“WOW!” through through

service.service.Embrace and drive change.Embrace and drive change.Create fun and a little weirdness.Create fun and a little weirdness.Be adventurous, creative and open-minded.Be adventurous, creative and open-minded.Pursue growth and learning.Pursue growth and learning.Build open and honest relationships withBuild open and honest relationships with communication.communication.Build a positive team and family spirit.Build a positive team and family spirit.Do more with less.Do more with less.Be passionate and determined.Be passionate and determined.Be humble.Be humble.

Source: Source: Delivering HappinessDelivering Happiness, Tony Hsieh, CEO, Zappos.com, Tony Hsieh, CEO, Zappos.com

14,00014,00020,00020,000

3030

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

3030/Craigslist/Craigslist

Every project:Every project: Where’s Where’s your “Craig’s your “Craig’s

List List

[WOW!][WOW!]

option”option”??

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!!

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

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

already doing it.”already doing it.”—Hajime Mitarai, Canon—Hajime Mitarai, Canon

Part Part FOURFOUR

FOURFOURKey Market Key Market StrategiesStrategies

Design Design WINsWINs!!

APPLEAPPLE market market

cap > ExxonMobil*cap > ExxonMobil*

*August 2011*August 2011

““Design is Design is

treated like treated like a relia religgionion at at

BMW.”BMW.” —Fortune—Fortune

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

vocabularies, design means veneer. … vocabularies, design means veneer. … But to me, nothing could be further from But to me, nothing could be further from

the meaning of design.the meaning of design. DesignDesign is the is the fundamentalfundamental

soulsoul of a man- of a man-made creation.”made creation.” ——

Steve JobsSteve Jobs

““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

““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]

Suit/Asda/Suit/Asda/$50$50Suit/M&S/Suit/M&S/10X10X

Suit/Savile Road bespoke/Suit/Savile Road bespoke/10X10X

iPhone/iPhone/$700$700iPhone/“assembled in China”/iPhone/“assembled in China”/$20$20

Source:Source: John KayJohn Kay/”/”Our Fetish for Making Things Fails to Understand ‘Real Work’”/Our Fetish for Making Things Fails to Understand ‘Real Work’”/FT/FT/11.1211.12

CCDDOO**Chief *Chief DDesignesign Officer Officer

HHypypothesisothesis: Men : Men

cannotcannot design for women’s design for women’s

needsneeds!!??!!??

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

I am certain, ladies and gentlemen, I am certain, ladies and gentlemen,

that this will be the that this will be the woman’s centurwoman’s centuryy. In the . In the

Portuguese language, words Portuguese language, words such as life, soul, and hope aresuch as life, soul, and hope are

of the feminine gender, as are other of the feminine gender, as are other words like courage and sincerity.”words like courage and sincerity.” ——

President President Dilma RousseffDilma Rousseff of Brazil, of Brazil, 1st woman to keynote the United Nations General Assembly1st woman to keynote the United Nations General Assembly

““Forget China, India Forget China, India and the Internet: and the Internet:

Economic Growth Is Economic Growth Is Driven by Driven by

WomenWomen.”.”

Source: Headline, Economist

““Women areWomen are 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 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 in the next five $28 trillion in the next five yyearsears. Their $13 trillion in total yearly earnings could reach $18 . Their $13 trillion in total yearly earnings could reach $18

trillion in the same period.trillion in the same period. In aggregate, women represent a growth market bigger than China and 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 India combined—more 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 the 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 Dell’s …”strategy when it 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

2.62.6 vs.vs. 2121

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find that New Studies find that

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

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

““I am often asked by would-I am often asked by would-be entrepreneurs seeking be entrepreneurs seeking

escape from life within huge escape from life within huge

corporate structures, corporate structures, ‘How do I build a small firm for myself?’

The answer seems obviousThe answer seems obvious … …

Source: Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics

“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 verBuy a veryy largelarge

one and one and jjust ust 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 of the lonof the longg-term survivors mana-term survivors managged ed to outto outpperform the market. Worse, erform the market. Worse, the lonthe longger comer comppanies had been in anies had been in

the database, the worse thethe database, 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

MittelstandMittelstand* * ****

** “ “aaggile creatures dartinile creatures dartingg between between the lethe leggs of the multinationals of the multinational monstersmonsters"" ((Bloomberg BusinessWeek, Bloomberg BusinessWeek, 10.10)10.10)

**E.g. Goldmann Produktion**E.g. Goldmann Produktion

Retail Superstars: Retail Superstars: Inside the 25 Best Inside the 25 Best

Independent Independent Stores in Stores in

AmericaAmerica —by George Whalin—by George Whalin

Jungle Jim’s International Market, Jungle Jim’s International Market, FairfieldFairfield, , OhioOhio:: “An “An

adventure in adventure in ‘‘shoshoppppertainmentertainment,’,’ as as Jungle Jungle

Jim’s call it, begins in the parking lot Jim’s call it, begins in the parking lot and goes on to and goes on to

1,600 cheeses1,600 cheeses and, yes, 1,400 varieties of and, yes, 1,400 varieties of

hot sauce —not to mention hot sauce —not to mention 12,000 wines 12,000 wines priced from $8 to $8,000priced from $8 to $8,000 a a

bottle; all this is brought to you by bottle; all this is brought to you by 4,000 4,000 vendorsvendors.. Customers come from every corner of the Customers come from every corner of the

globe.” globe.”

Source: George Whalin, Source: George Whalin, Retail SuperstarsRetail Superstars

““Be the best. Be the best. It’s the only It’s the only

market that’s market that’s not crowded.”not crowded.”

From: From: Retail Superstars: Inside the 25 BestRetail Superstars: Inside the 25 Best Independent Stores in America,Independent Stores in America, George Whalin George Whalin

““We are in no danger of running We are in no danger of running out of new combinations toout of new combinations to

try. Even if technology froze try. Even if technology froze today, we have more possible today, we have more possible

ways of configuring the ways of configuring the different applications, machines, different applications, machines,

tasks, and distribution tasks, and distribution channels to create new channels to create new

processes and products thanprocesses and products than we could ever exhaust.”we could ever exhaust.”


Huge:Huge: Customer Customer

““SatisfactionSatisfaction with with product/Service” product/Service”

versus versus CustomerCustomer

““SuccessSuccess””

IBIBMMtoto

IIBBMM

PlanetarPlanetary y RainmakerRainmaker--inin--ChiefChief!!

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

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

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

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

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

UPSUPS

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

How How SchlumbergerSchlumberger Is Rewriting the Rules of the Is Rewriting the Rules of the

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

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

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

IPM’s Chief:IPM’s Chief: “We’ll do “We’ll do just about anything just about anything

an oilfield owner an oilfield owner would want, from would want, from

drilling to drilling to production.”production.”

MasterCard MasterCard AdvisorsAdvisors

IDEOIDEOProduct DesignProduct Design

Product Design TrainingProduct Design TrainingInnovation TrainingInnovation Training

“ ‘“ ‘Results’ are measured Results’ are measured

by the by the successsuccess of of all those who have all those who have

purchased your product purchased your product or service”or service” —Jan Gunnarsson &—Jan Gunnarsson &

Olle Blohm, Olle Blohm, The Welcoming LeaderThe Welcoming Leader

Part Part FIVEFIVE

People People FirstFirst!! People People SecoSecond ! nd !

People People ThirdThird! ! People People FourthFourth! !

People People FifthFifth! ! People Sixth!People Sixth!

1/40961/4096

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

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

worth worth doindoing.”g.”

——Richard BransonRichard Branson

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

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

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

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

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

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

"When I hire "When I hire someone, that's someone, that's when when I I ggo to o to

work for work for themthem.”.” —John DiJulius,—John DiJulius, "What's the Secret to Providing "What's the Secret to Providing

a World-class Customer Experience"a World-class Customer Experience"

““The path to a The path to a hostmanshihostmanshipp culture paradoxically does not go through the culture paradoxically does not go through the

guest. In fact it wouldn’t be totally wrong to say that the guest has nothing to do with it.guest. In fact it wouldn’t be totally wrong to say that the guest has nothing to do with it. True True hostmanship leaders focus on their employees. What drives exceptionalism is finding the right hostmanship leaders focus on their employees. What drives exceptionalism is finding the right people and getting them to love their work and see it as a passion. ... The guest comes into the people and getting them to love their work and see it as a passion. ... The guest comes into the picture only when you are ready to ask, ‘picture only when you are ready to ask, ‘Would you prefer to stay at a hotel where the staff love Would you prefer to stay at a hotel where the staff love

their work or where management has made customers its highest priority?’”their work or where management has made customers its highest priority?’” ““We We went throuwent througgh the hotel and made ah the hotel and made a ... ... ‘‘consideration renovation.consideration renovation.’’ Instead of Instead of redoinredoingg bathrooms, dinin bathrooms, dining g rooms, and rooms, and gguest rooms, we uest rooms, we ggave emave empploloyyees new ees new

uniforms, bouuniforms, bougght flowers and fruit, and ht flowers and fruit, and chanchangged colors.ed colors. Our focus was totallOur focus was totallyy on on the staff.the staff. TheTheyy were the ones we wanted were the ones we wanted to make hato make happy.ppy. We wanted them to wake up everWe wanted them to wake up everyy mornin morningg excited about a excited about a

new danew dayy at work at work.” .” —Jan Gunnarsson and Olle Blohm, —Jan Gunnarsson and Olle Blohm, Hostmanship: Hostmanship: The Art of Making People Feel WelcomeThe Art of Making People Feel Welcome..

“ … “ … The guest comes into The guest comes into the picture only when you the picture only when you are ready to ask, are ready to ask, ‘‘Would Would you prefer to stay at a you prefer to stay at a

hotel where the staff love hotel where the staff love their work or where their work or where

management has made management has made customers its highest customers its highest

priority?’priority?’””

Brand Brand = =

Talent.Talent.

Our Mission

To develop and manage talent;To develop and manage talent;to apply that talent,to apply that talent,

throughout the world, throughout the world, for the benefit of clients;for the benefit of clients;to do so in partnership; to do so in partnership;

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

WPP

… … 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..

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

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

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

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

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

““The leaders of Great The leaders of Great

Groups … Groups … lovelove talent talent … and know where to find … and know where to find

it. They … it. They … revelrevel inin …… the talent of the talent of

others.”others.” —Warren Bennis & Patricia Ward —Warren Bennis & Patricia Ward

Biederman, Biederman, Organizing GeniusOrganizing Genius

Les WexnerLes Wexner:: From From sweaters to sweaters to

people!*people!*

*Limited Brands founder Les Wexner queried on astounding *Limited Brands founder Les Wexner queried on astounding long-term success—said, in effect, it happened because he gotlong-term success—said, in effect, it happened because he got

as excited about developing people as he had been about as excited about developing people as he had been about

predicting fashion trends in his early yearspredicting fashion trends in his early years

TWO Per TWO Per Year!Year!

2/year 2/year = =

legacy.legacy.***Exec promotion = Acquisition*Exec promotion = Acquisition

Promotion DecisionsPromotion Decisions

“life and “life and death death

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

““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 … threethree ppeoeopplele … 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. heading in the next 12 months. Please explain … in painstakingPlease explain … in painstaking

detail … your development strategy in each case. detail … your development strategy in each case. Please tell me Please tell me your biggest development disappointment—looking back, could you your biggest development disappointment—looking back, could you or would you have done anything differently? Please tell me about or would you have done anything differently? Please tell me about your greatest development triumph—and disaster—in the last five your greatest development triumph—and disaster—in the last five

years. What are the ‘three big things’ you’ve learned about helping years. What are the ‘three big things’ you’ve learned about helping

people grow along the way?”people grow along the way?”

Difference Difference

#1#1

People are People are notnot “Standardized.” “Standardized.” Their evaluations Their evaluations

should should notnot be be standardized. standardized.

EverEver..

Standardized Evaluations?Standardized Evaluations?

Sports?*Sports?*Arts?*Arts?*

*“Pure” talent-driven enterprises*“Pure” talent-driven enterprises

Evaluating people = Evaluating people =

#1#1 differentiator differentiator

Source: Jack Welch/Jeff Immelt on GE’s Source: Jack Welch/Jeff Immelt on GE’s #1#1

strategic skill (strategic skill (!!!!!!!!))

70 cents70 cents

““Development can help great Development can help great

people be even people be even better—better—but if but if I had a dollar to 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 and Development, Paul Russell, Director, Leadership and Development,

GoogleGoogle

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

asasppect of businessect of business

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

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

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

15%15%

TP: TP: “How to throw $500,000

into the sea in one easy lesson!!”

< CAPEX< CAPEX> People!*> People!*

*15%?*15%?

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

The Sky Is The Sky Is the Limit!the Limit!

No company ever No company ever Expended too Expended too much much thoughtthought/ / efforteffort/ / $$$$$$$$ on on

training!training!

The Sky Is The Sky Is the Limit!the Limit!

WegmansWegmans

Luiza Helena, Luiza Helena, Magazine LuizaMagazine Luiza

4 4 Words!Words!

““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 ydo youou think?”think?”

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

8 Words!8 Words!12 Words!12 Words!

Change the World With EIGHT WordsChange the World With EIGHT Words

What do you think?*What do you think?*How can I help?**How can I help?**

*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”**Boss as CHRO/Chief Hurdle Removal Officer **Boss as CHRO/Chief Hurdle Removal Officer ********************************************************************

Change the WorldChange the World With TWELVE Words With TWELVE Words

What do you think?*What do you think?*How can I help?**How can I help?**

What have you learned?What have you learned?******

*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”**Boss as CHRO/Chief Hurdle Removal Officer **Boss as CHRO/Chief Hurdle Removal Officer ********************************************************************

***What [new thing] have you learned [in the last 24 hours]? ***What [new thing] have you learned [in the last 24 hours]? ********************* * ********************* *

Some Help With Helping …Some Help With Helping …

Help works when the recipient subsequently feelsHelp works when the recipient subsequently feels smarter—not dumber.smarter—not dumber.

Regularly help too soon—and you will set up expectation of inaction until your "help" is provided.Regularly help too soon—and you will set up expectation of inaction until your "help" is provided.

Help poorly conveyed spawns powerlessnessHelp poorly conveyed spawns powerlessness and resentment in recipient.and resentment in recipient.

Helping requires a sniper's rifle or surgeon'sHelping requires a sniper's rifle or surgeon's scalpel—not a shotgun or machete.scalpel—not a shotgun or machete.

Helping strategies vary [significantly] from individual to individual—leave the “cookie cutter” at Helping strategies vary [significantly] from individual to individual—leave the “cookie cutter” at home.home.

Effectively "helping" mayEffectively "helping" may be the most difficult be the most difficult leadership task of all!leadership task of all!

"Help" is only truly successful when the recipient"Help" is only truly successful when the recipient says, and believes: "I did it myself!"says, and believes: "I did it myself!"

Near truism: Nobody wants help. But we wouldNear truism: Nobody wants help. But we would all liked to have received help.all liked to have received help.

Guitarist Robert Fripp: Guitarist Robert Fripp: "Don't be helpful. Be available. "Don't be helpful. Be available. Helpful people are a nuisance."Helpful people are a nuisance."

The Memories The Memories That That MatterMatter..

The Memories That MatterThe Memories That Matter

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

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

The Memories That MatterThe Memories That Matter

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

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

The Age of The Age of “Brand You”!“Brand You”!

Globalization1.0: Globalization1.0: Countries Countries globalizing globalizing (1492-1800)(1492-1800)

Globalization2.0: Globalization2.0: Companies Companies globalizing globalizing (1800-2000)(1800-2000)

Globalization3.0 Globalization3.0 (2000+)(2000+): : IndividualsIndividuals collaboratingcollaborating & competing globally & competing globally

Source: Tom Friedman/Source: Tom Friedman/The World Is FlatThe World Is Flat

““If there is nothing If there is nothing very special about very special about

your work your work …… no matter no matter how hard you apply yourself how hard you apply yourself you won’t get noticed, and you won’t get noticed, and

that increasingly means you that increasingly means you

won’t get paid much either.”won’t get paid much either.” —Michael Goldhaber, —Michael Goldhaber, WiredWired

The Brand You50: Fifty Ways to Transform Yourself The Brand You50: Fifty Ways to Transform Yourself from an “Employee” into a Brand That Shouts from an “Employee” into a Brand That Shouts

Distinction, Commitment, and PassionDistinction, Commitment, and Passion!

"The illiterate of the "The illiterate of the 21st Century will not 21st Century will not be those who cannot be those who cannot

read or write, read or write, but but those who cannot those who cannot learn, unlearn and learn, unlearn and

relearnrelearn."." —Alvin Toffler—Alvin Toffler

Part Part SIXSIX

LeadingLeading

MBWMBWAA

Managing By Wandering Around/Managing By Wandering Around/HPHP

You = Your You = Your calendarcalendar**

*The calendar *The calendar nevernever lies.lies.

Your calendar knowsYour calendar knows PreciselyPrecisely what youwhat youreally care about.really care about.

DoDo youyou????????

Don’t > Don’t > Do*Do*

* “Don’ting” must be systematic > WILLPOWER* “Don’ting” must be systematic > WILLPOWER

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

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

… … and theand theyy do do one thinone thingg at a at a

timetime.”.” —Peter Drucker—Peter Drucker

50% 50% (!)(!)

UnUn--scheduled.scheduled.

““Most managers spend a great deal of time thinking about what they plan to do, but Most managers spend a great deal of time thinking about what they plan to do, but relatively little time thinking about what they plan not to do. As a result, they become so relatively little time thinking about what they plan not to do. As a result, they become so

caught up … in fighting the fires of the moment that they cannot really attend to the long-caught up … in fighting the fires of the moment that they cannot really attend to the long-term threats and risks facing the organization. So the first soft skill of leadership the hard term threats and risks facing the organization. So the first soft skill of leadership the hard way is to cultivate the perspective of Marcus Aurelius: avoid busyness, free up your time, way is to cultivate the perspective of Marcus Aurelius: avoid busyness, free up your time,

stay focused on what really matters.stay focused on what really matters. Let me Let me pput it bluntlut it bluntlyy: : evereveryy leader should routinel leader should routinelyy kee keepp a a

substantial substantial pportion of his or her timeortion of his or her time——I I would sawould sayy as much as 50 as much as 50 ppercentercent——

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

unscheduled time—will you have the space to reflect on what you are doing, learn from unscheduled time—will you have the space to reflect on what you are doing, learn from experience, and recover from your inevitable mistakes. Leaders without such free time end experience, and recover from your inevitable mistakes. Leaders without such free time end

up tackling issues only when there is an immediate or visible problem. Managers’ typical up tackling issues only when there is an immediate or visible problem. Managers’ typical response to my argument about free time is, ‘That’s all well and good, but there are things I response to my argument about free time is, ‘That’s all well and good, but there are things I

have to do.’have to do.’ Yet we waste so much time in Yet we waste so much time in ununpproductive activitroductive activity—y—it takes an it takes an enormous effort on the enormous effort on the ppart of the art of the

leader to keeleader to keepp free time for the trul free time for the trulyy imimpportant thinortant thinggss.”.” —Dov Frohman (& Robert Howard—Dov Frohman (& Robert Howard), Leadership ), Leadership

The Hard Way: Why Leadership Can’t Be Taught—And How YouThe Hard Way: Why Leadership Can’t Be Taught—And How You Can Learn It Anyway (Chapter 5, “The Soft Skills Of Hard Leadership”)Can Learn It Anyway (Chapter 5, “The Soft Skills Of Hard Leadership”)

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

—

““You must You must BEBE the change you the change you

wish to see in the wish to see in the world.”world.”

Gandhi

““It’s It’s alwaalwayyss showtime.”showtime.” —David D’Alessandro, Career Warfare

““Nothing is Nothing is so contagious so contagious

as as enthusiasm.”enthusiasm.”

—Samuel Taylor Coleridge—Samuel Taylor Coleridge

““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

Me first!Me first!

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

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

himself." himself." —Tolstoy—Tolstoy

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

affect everaffect everyyone around one around yyouou is what is what

distindistingguishesuishes a superior a superior leader.”leader.” —Edie Seashore (—Edie Seashore (Strategy + Strategy +

BusinessBusiness #45) #45)

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

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

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

accurate his self-assessment is likely to be.

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

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

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

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

or …or …

1. Have you in the1. Have you in the last 10 days … last 10 days … visitedvisited a customer? a customer? 2. Have you called a 2. 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 customer’s 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, via facilitator, with operation (different levels, different functions, different divisions) interacted, via facilitator, with various of your folks?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 small act of helpfulness … in the last three days?days?

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

K = R = PK = R = P

““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)

"Let's not forget "Let's not forget that small that small

emotions are the emotions are the great captains of great captains of our lives."our lives." –—Van Gogh–—Van Gogh

KKindness = indness = RRepeat Business =epeat Business =

PProfit.rofit.

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

Kindness:Kindness:

Kind.Kind.Thoughtful.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 screw-ups.Apologizes with dispatch for screw-ups.““Over”-reacts to screw-ups of any magnitude.Over”-reacts to screw-ups of any magnitude.““Professional” in all dealings.Professional” in all dealings.Optimistic.Optimistic.Understands that kindness to staff breeds kindness to Understands that kindness to staff breeds kindness to others/outsiders.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.

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

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

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

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

their questions costs nothing. It can be argued that negative their questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive tointeractions—alienating patients, being non-responsive to

their needs or limiting their sense of control—can be very costly. … their needs or limiting their sense of control—can be very costly. … Angry, frustrated or frightened patients may be combative, withdrawn Angry, frustrated or frightened patients may be combative, withdrawn

and less cooperative—requiring farand less cooperative—requiring far more time than it would have taken to interact with them initially in a more time than it would have taken to interact with them initially in a

positive way.”positive way.”

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

(Griffin Hospital/Derby CT; Plantree Alliance) (Griffin Hospital/Derby CT; Plantree Alliance)

Acknowledgement/Acknowledgement/Appreciation/Appreciation/““Thank you!”Thank you!”

““The deepest principal The deepest principal in human nature is the in human nature is the

cravingcraving* to be * to be appreciated.”appreciated.”

—William James—William James

**“Craving,” not “wish” or “desire” or “Craving,” not “wish” or “desire” or “longing”/Dale Carnegie, “longing”/Dale Carnegie, How to WinHow to Win

Friends and Influence People Friends and Influence People (“The BIG(“The BIG Secret of Dealing With People”) Secret of Dealing With People”)

““The deepest urgeThe deepest urge in human nature in human nature

is the desire to be is the desire to be important.”important.” —John Dewey—John Dewey

(In Dale Carnegie, (In Dale Carnegie, How to Win Friends and Influence People How to Win Friends and Influence People (“The BIG Secret of Dealing With People”)(“The BIG Secret of Dealing With People”)

““AcknowledAcknowledggee” … ” … perhaps the most perhaps the most

powerful word (and powerful word (and idea) in the English idea) in the English

language—and language—and manager’s tool kit!manager’s tool kit!

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

rarely make rarely make significant significant

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

Responsiveness/Responsiveness/Apology/ Apology/

““I’m sorry!”I’m sorry!”

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

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

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

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

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

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

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

PROBLEM. THEPROBLEM. THE

RESPONSERESPONSE TOTO THE PROBLEM INVARIABLY THE PROBLEM INVARIABLY ENDS UP BEING THE REAL ENDS UP BEING THE REAL

PROBLEMPROBLEM.***PERCEPTION IS ALL THERE IS!PERCEPTION IS ALL THERE IS!

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!!

Part Part SEVENSEVEN

Excellence/Excellence/Aspiration/Aspiration/

Service/Service/ImmoderationImmoderation

1982-2012:1982-2012:EXCELLENCE 30EXCELLENCE 30

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

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

EXCELLENCE EXCELLENCE isis … … THE NEXT FIVE THE NEXT FIVE

MINUTES.MINUTES.

EXCELLENCE is not an "aspiration." EXCELLENCE is not an "aspiration." EXCELLENCE is … THE NEXT FIVE MINUTES.EXCELLENCE is … THE NEXT FIVE MINUTES.

EXCELLENCE is your next conversation.EXCELLENCE is your next conversation.Or not.Or not.EXCELLENCE is your next meeting.EXCELLENCE is your next meeting.Or not.Or not.EXCELLENCE is shutting up and listening—really listening.EXCELLENCE is shutting up and listening—really listening.Or not.Or not.EXCELLENCE is your next customer contact.EXCELLENCE is your next customer contact.Or not.Or not.EXCELLENCE is saying “Thank you” for something “small.”EXCELLENCE is saying “Thank you” for something “small.”Or not.Or not.EXCELLENCE is the next time you shoulder responsibility and apologize.EXCELLENCE is the next time you shoulder responsibility and apologize.Or not.Or not.EXCELLENCE is waaay over-reacting to a screw-up.EXCELLENCE is waaay over-reacting to a screw-up.Or not.Or not.EXCELLENCE is the flowers you brought to work today.EXCELLENCE is the flowers you brought to work today.Or not.Or not.EXCELLENCE is lending a hand to an “outsider” who’s fallen behind EXCELLENCE is lending a hand to an “outsider” who’s fallen behind schedule.schedule.Or not.Or not.EXCELLENCE is bothering to learn the way folks in finance [or IS or HR] EXCELLENCE is bothering to learn the way folks in finance [or IS or HR] think.think.Or not.Or not.EXCELLENCE is waaay “over”-preparing for a 3-minute presentation.EXCELLENCE is waaay “over”-preparing for a 3-minute presentation.Or not.Or not.EXCELLENCE is turning “insignificant” tasks into models of … EXCELLENCE. EXCELLENCE is turning “insignificant” tasks into models of … EXCELLENCE. Or not.Or not.

2006 2006 Novosibirsk:Novosibirsk:AspirationAspiration

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

2007 Sydney:2007 Sydney:ServiceService

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

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

7 Steps to Sustaining Success7 Steps to Sustaining Success

You take care of the people. You take care of the people. The people take care of the service. The people take care of the service. The service takes care of the customer.The service takes care of the customer.The customer takes care of the profit. The customer takes care of the profit. The profit takes care of the re-investment.The profit takes care of the re-investment.The re-investment takes care of the re-invention. The re-investment takes care of the re-invention. The re-invention takes care of the future.The re-invention takes care of the future.(And at every step the only measure is EXCELLENCE.)(And at every step the only measure is EXCELLENCE.)

7 Steps to Sustaining Success: And it starts with …7 Steps to Sustaining Success: And it starts with …

YouYou take take care of the care of the people. people.

… … 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..

ImmoderationImmoderation

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!!

Excellence.Excellence. Always. Always.

If notIf not Excellence,Excellence, what?what?

If notIf not ExcellenceExcellence now, when?now, when?

Part Part EightEight

Top Top 2020

Top TwentyTop Twenty

**Just one “secret” to innovation: It’s a messy world. **Just one “secret” to innovation: It’s a messy world. We’re always operating half informed. Hence, “try more We’re always operating half informed. Hence, “try more stuff than the other guy” and sort it out as you go stuff than the other guy” and sort it out as you go forward is best way to up success odds. (“Ready. Fire. forward is best way to up success odds. (“Ready. Fire. Aim.”—Ross Perot)Aim.”—Ross Perot)**Paradox: Superb quality is an absolute necessity, and **Paradox: Superb quality is an absolute necessity, and it requires superb systems; but superb quality with the it requires superb systems; but superb quality with the wrong product flunks. Hence one needs to be organized wrong product flunks. Hence one needs to be organized (quality) and disorganized (innovation) at the same (quality) and disorganized (innovation) at the same time. (Axiom: Management is art, not science.)time. (Axiom: Management is art, not science.)**Waste #1: “Great branding”/marketing can not **Waste #1: “Great branding”/marketing can not overcome a lousy product—it is largely wasted. The overcome a lousy product—it is largely wasted. The product (innovative, attractive, of the highest quality) product (innovative, attractive, of the highest quality) comes first—though excellence in product comes first—though excellence in product and and marketing is indubitably required to achieve a marketing is indubitably required to achieve a smashing success.smashing success.


**Everywhere: “Excellence” in quality and design is not **Everywhere: “Excellence” in quality and design is not restricted to the “high end.” Both characteristics can restricted to the “high end.” Both characteristics can be imbedded in lower-end products and services.be imbedded in lower-end products and services.**Iron law: All organizations get worse as they become **Iron law: All organizations get worse as they become more and more enormous. No cultural differences.more and more enormous. No cultural differences.**Iron law: Over the long haul, national success is **Iron law: Over the long haul, national success is largely built upon SMEs, with growth and innovation largely built upon SMEs, with growth and innovation associated largely with a large population of vibrant associated largely with a large population of vibrant midsized enterprises—Germany’s “Mittelstand” is midsized enterprises—Germany’s “Mittelstand” is exhibit #1. exhibit #1. **Paradox: Hierarchy is dead. Long live hierarchy. New **Paradox: Hierarchy is dead. Long live hierarchy. New market requirements and new tools can dramatically market requirements and new tools can dramatically reduce hierarchy. Still, I don’t want to drive across a reduce hierarchy. Still, I don’t want to drive across a bridge that didn’t have a “command and control” bridge that didn’t have a “command and control” structure to sign off on safety.structure to sign off on safety.


**But: Hierarchy is often necessary—but relentless hot **But: Hierarchy is often necessary—but relentless hot war must be declared on bureaucracy “24/7.” war must be declared on bureaucracy “24/7.” **“New marketing techniques”: The newest marketing **“New marketing techniques”: The newest marketing technique is the oldest marketing technique but technique is the oldest marketing technique but remains “new” because it is seldom practiced with remains “new” because it is seldom practiced with requisite intensity. Namely, get the hell out into the requisite intensity. Namely, get the hell out into the market place and listen & listen & listen to customers. market place and listen & listen & listen to customers. Then listen some more.Then listen some more.**Always #1: Any nation’s Olympic team is as good as **Always #1: Any nation’s Olympic team is as good as its athletes. (Duh.) Exactly the same is true with any its athletes. (Duh.) Exactly the same is true with any (as in any!) organization: (as in any!) organization: Investment in and Investment in and development of great people comes first and is the development of great people comes first and is the greatest sustaining differentiator!greatest sustaining differentiator!**Motivator #1: **Motivator #1: Treating people with respect is always Treating people with respect is always the #1 motivational “tool.”the #1 motivational “tool.”


**Why not business: In the army and in the theater and **Why not business: In the army and in the theater and in sports, training is always Priority #1. Why not in in sports, training is always Priority #1. Why not in business? No organization ever devoted too much effort business? No organization ever devoted too much effort to training!to training!**Success “secret” #1: Work harder/much harder than **Success “secret” #1: Work harder/much harder than the other guy/s. There’s more to it than hard work but the other guy/s. There’s more to it than hard work but hard work is the sine qua non. (Again: Think of the hard work is the sine qua non. (Again: Think of the Olympics.)Olympics.)**Speed’s enabler: The #1 cause of delays is invariably **Speed’s enabler: The #1 cause of delays is invariably lousy cross-functional communication—the product lousy cross-functional communication—the product developers don’t talk to the logistics people who don’t developers don’t talk to the logistics people who don’t talk to the sales people. Etc. Etc. Excellence in cross-talk to the sales people. Etc. Etc. Excellence in cross-functional communication must become a day-to-day functional communication must become a day-to-day top-management obsession. top-management obsession.


**New context, new leaders: Innovation (and execution) **New context, new leaders: Innovation (and execution) today is a collaborative process. Women are on average today is a collaborative process. Women are on average better leaders than men in collaborative situations. better leaders than men in collaborative situations. Men take to hierarchies—we invented ’em. Women tend Men take to hierarchies—we invented ’em. Women tend to lead more by inclusion rather than coercion.to lead more by inclusion rather than coercion.**Customer #1: In retail and in products designed for **Customer #1: In retail and in products designed for retail, retail, sheshe is the primary consumer. Company is the primary consumer. Company leadership and the product-service portfolio should leadership and the product-service portfolio should mimic, more or less, this fact. (You heard it here 1st: mimic, more or less, this fact. (You heard it here 1st: Men and women are different.)Men and women are different.)**New context, new skills; The Age of Brawn is largely **New context, new skills; The Age of Brawn is largely behind us. Brains and creativity and flexibility have behind us. Brains and creativity and flexibility have come to the fore. Not only are our organizations come to the fore. Not only are our organizations unprepared—but our schools get it more or less exactly unprepared—but our schools get it more or less exactly wrong 100% of the time.wrong 100% of the time.


**Acceleration: Technological change is accelerating as **Acceleration: Technological change is accelerating as never before. It is not an exaggeration to say that “all never before. It is not an exaggeration to say that “all bets are off;” adaptability and renewal are imperative bets are off;” adaptability and renewal are imperative on a short-cycle unimaginable only 10 or so years ago. on a short-cycle unimaginable only 10 or so years ago. (And we ain’t seen nothin’ yet.)(And we ain’t seen nothin’ yet.)**Mix it up: Company leaders tend to be look alikes. **Mix it up: Company leaders tend to be look alikes. Only (only!) diversity on any dimension you can name Only (only!) diversity on any dimension you can name induces creativity over the long haul—from the induces creativity over the long haul—from the boardroom to the front line.boardroom to the front line.**“Sexy”: Clever strategies and exciting products are **“Sexy”: Clever strategies and exciting products are important, but superb execution invariably carries the important, but superb execution invariably carries the day. Asked his #1 success “secret,” peerless hotelier day. Asked his #1 success “secret,” peerless hotelier Conrad Hilton replied, Conrad Hilton replied, “Don’t forget to tuck the shower “Don’t forget to tuck the shower curtain into the bath tub.”curtain into the bath tub.” Amen! Amen!

excellence now now tom peters/17 november 2012/moscow (slides @ tompeters.com/excellencenow.com)

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