long tom peters’ excellence. always. innovate. or die. mastercard sales leadership meeting

11

NOTENOTE:: To appreciateTo appreciate this presentation this presentation [and [and

insure that it is not ainsure that it is not a messmess],], you need Microsoft you need Microsoft

fonts:fonts:

“Showcard Gothic,”“Showcard Gothic,” “Ravie,”“Ravie,” “Chiller”“Chiller”

and and “Verdana”“Verdana”

21

LONGLONG

Tom Peters’Tom Peters’

Excellence.Excellence.Always.Always.

Innovate.Innovate.Or Die.Or Die.

MasterCard Sales Leadership MeetingMasterCard Sales Leadership MeetingVienna/18 October 2010Vienna/18 October 2010

(Slides at tompeters.com)(Slides at tompeters.com)

1

The Ascent of Money: A Financial The Ascent of Money: A Financial History of the World History of the World —Niall Ferguson—Niall Ferguson

Against the Gods: The Remarkable Against the Gods: The Remarkable Story of RiskStory of Risk —Peter Bernstein—Peter Bernstein

NGO/Bridges = Market-makingNGO/Bridges = Market-making

1

The Ascent of Money: A Financial History The Ascent of Money: A Financial History of the World of the World —Niall Ferguson—Niall Ferguson

Against the Gods: The Remarkable Story Against the Gods: The Remarkable Story of Riskof Risk —Peter Bernstein —Peter Bernstein

NGO/Bridges = Market-makingNGO/Bridges = Market-making

MasterCard MoneySendMasterCard MoneySendMasterCard OneSmart Social CardMasterCard OneSmart Social Card

MasterCard Pay PassMasterCard Pay PassMasterCard Mobile Payments MasterCard Mobile Payments

GatewayGatewayEtc.Etc.Etc.Etc.

51

Part ONE:Part ONE: Women Women Rule!Rule!

1

9494%% of loans of loans

to …to …

womenwomen****MMicrolending; “Banker to the poor”; Grameen Bank; icrolending; “Banker to the poor”; Grameen Bank;

Muhammad Yunus; 2006 Nobel Peace Prize winnerMuhammad Yunus; 2006 Nobel Peace Prize winner

71

““CEMEXCEMEX realized that realized that women are the kewomen are the keyy drivers drivers

of savinof savinggs ins in [Mexican][Mexican] familiesfamilies.. … They are entrepreneurial in nature, … They are entrepreneurial in nature,

and they actively participate in the tanda system and they actively participate in the tanda system [neighborhood groups who pool money and save any that’s left over].[neighborhood groups who pool money and save any that’s left over].

Regardless of whether they are homemakers or outside-Regardless of whether they are homemakers or outside-the-home workers, they are responsible for any savings in the-home workers, they are responsible for any savings in

the family. Patrimonio Hoy the family. Patrimonio Hoy [Private Property Today, a CEMEX [Private Property Today, a CEMEX

program to aid the poor in building homes]program to aid the poor in building homes] discovered that 70% of discovered that 70% of the women who saved were saving money in the tanda the women who saved were saving money in the tanda

system to construct homes for their families. The men in system to construct homes for their families. The men in the society consider their job done if they bring in their the society consider their job done if they bring in their paycheck at the end of the day.”paycheck at the end of the day.” —C.K. Prahalad, from —C.K. Prahalad, from The The

Fortune at the Bottom of Fortune at the Bottom of

the Pyramidthe Pyramid, on , on Lorenzo ZambranoLorenzo Zambrano and CEMEX, the and CEMEX, the Mexican company that’s the world’s #3 cement maker.Mexican company that’s the world’s #3 cement maker.

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

Economic Growth Is Economic Growth Is Driven by Driven by

WomenWomen.”.”

Source: Headline, Economist

91

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

**“Women now drive the global economy. Globally, they control “Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could about $20 trillion in consumer spending, and that figure could climb as high as $28 trillion in the next five years. Their $13 climb as high as $28 trillion in the next five years. Their $13 trillion in total yearly earnings could reach $18 trillion in the trillion in total yearly earnings could reach $18 trillion in the same period.same period. In aggregate, women represent a growth market bigger than China and 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 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 ignore or underestimate the female consumer. And yet many companies do just that—even ones that are confidant that they have a winning strategy when it comes to women. Consider Dell’s that are confidant that they have a winning 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

101

““Women Women areare thethe

majority majority market”market”

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

““Goldman Sachs in Tokyo has Goldman Sachs in Tokyo has developed an index of 115 developed an index of 115

companies poised to benefit companies poised to benefit from women’s increased from women’s increased

purchasing power; purchasing power; over the past over the past decade the value of shares in decade the value of shares in Goldman’s basket has risen by Goldman’s basket has risen by

96%, against the Tokyo 96%, against the Tokyo stockmarket’s rise stockmarket’s rise

of 13%of 13%.”.” —Economist—Economist

121

Cases! Cases! Cases!Cases! Cases! Cases!

McDonald’sMcDonald’s (“mom-centered” to “majority

consumer”; not via kids)

Home DepotHome Depot (“Do it [everything!] Herself”)

P&GP&G (more than “house cleaner”)

DeBeersDeBeers (“right-hand rings”/$4B)

AXA FinancialAXA FinancialKodakKodak (women = “emotional centers of the household”)

NikeNike (> jock endorsements; new def sports; majority consumer)

AvonAvonBratzBratz (young girls want “friends,” not a blond stereotype)

Source: Fara Warner/Fara Warner/The Power of the PurseThe Power of the Purse

131

Lowe’sLowe’s!!

141

““One thing is certain: women’s rise in power, which is linked to the increase in wealth One thing is certain: women’s rise in power, which is linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no per capita, is happening in all domains and at all levels of society. Women are no longer content to provide efficient labour or to be consumers with rising budgets and longer content to provide efficient labour or to be consumers with rising budgets and more autonomy to spend. They are increasingly becoming directors, managers and more autonomy to spend. They are increasingly becoming directors, managers and entrepreneurs. Some studies have shown a correlation between the presence of entrepreneurs. Some studies have shown a correlation between the presence of women in managerial positions and a company’s financial results.women in managerial positions and a company’s financial results. ““This is just the beginning. The phenomenon will only grow as girls prove to be more This is just the beginning. The phenomenon will only grow as girls prove to be more successful than boys in the school system and enroll in higher numbers in successful than boys in the school system and enroll in higher numbers in

universities. universities. For a number of For a number of observers, we have alreadobservers, we have alreadyy entered the aentered the agge of e of ‘WOMENOMICS,’ the ‘WOMENOMICS,’ the economeconomy y as thouas thougght out and ht out and ppracticed bracticed byy women women.. Those Chinese who Those Chinese who

desire that their only child be male may soon realise that a daughter could be a desire that their only child be male may soon realise that a daughter could be a better investment. Bosses know full well that a team of both men and women is more better investment. Bosses know full well that a team of both men and women is more creative and efficient than one comprised of only men.”creative and efficient than one comprised of only men.”

Source: “Women Are Drivers of Global Growth,” Aude Zieseniss de Thuin, founder and president of the Source: “Women Are Drivers of Global Growth,” Aude Zieseniss de Thuin, founder and president of the Women’s Forum for the Economy and Society (FT)Women’s Forum for the Economy and Society (FT)

1

““Power Women 100”/Forbes 25.10.10Power Women 100”/Forbes 25.10.1026 CEOs Public Companies:26 CEOs Public Companies:

Vs. Men/Market: Vs. Men/Market: +28%+28% ** (*Post-appointment) (*Post-appointment)

Vs. Industry: Vs. Industry: +15%+15%

1

**Women Women decidedecide**Women Women savesave**Women Women ssppendend**Women Women rulerule

1

*Women *Women decidedecide*Women *Women savesave*Women *Women ssppendend*Women *Women rulerule

**In the In the develodeveloppeded world world**In the In the develodeveloppining worldg world**The trend is The trend is acceleratinacceleratingg

181

Part Two:Part Two: InnovateInnovate or or DieDie

191

““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

1

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

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

TheTheyy found that found that nonenone ofof

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

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

211

#1#1

221

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

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

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

it. Try it. it. Try it.

1/451/45

1

““ExperimenExperiment t

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

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

241

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

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

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

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

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

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

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

BloombergBloomberg

1

Culture of PrototypingCulture of Prototyping

“Effective prototyping may “Effective prototyping may

be be thethe most most valuablevaluable core core competencecompetence an an

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

261

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

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

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

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

271

““Fail.Fail. Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

1

He who has the He who has the quickest quickest

“O.O.D.A. “O.O.D.A. Loops”Loops”** wins! wins!

**OObserve. bserve. OOrient. rient. DDecide. ecide. AAct. /Col. John Boydct. /Col. John Boyd

291

Success 101:Success 101: “Whoever “Whoever tries the most stuff and tries the most stuff and screws the most stuff up screws the most stuff up

and most rapidly and most rapidly launches the next try launches the next try

wins. Failures are not to wins. Failures are not to be ‘tolerated,’ they are be ‘tolerated,’ they are

to be celebrated.”to be celebrated.”

301

Excellence1982: The Bedrock “Eight Basics”

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

311

#2#2

321

Little =Little =

BIGBIG

331

Big CARTS/Big BAGS =Big CARTS/Big BAGS =

1.5X/$1.5X/$BB

Source: Walmart/Frito LaySource: Walmart/Frito Lay

1

Socks = Socks = 10,00010,000

351

#3#3

1

We We areare the the companycompany we keepwe keep

1

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

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

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

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

381

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

StaffStaffConsultantsConsultants

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

Innovation Alliance PartnersInnovation Alliance PartnersCustomersCustomers

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

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

IS/IT ProjectsIS/IT ProjectsHQ LocationHQ LocationLunch MatesLunch Mates

LanguageLanguageBoardBoard

1

CUSTOMERS:CUSTOMERS: ““Future-defining Future-defining customers may account customers may account

for only for only 2%2% to to 3%3% of your of your total, total, but they but they

represent a crucial represent a crucial window on the future.”window on the future.”

—Adrian Slywotzky, Mercer Consultants—Adrian Slywotzky, Mercer Consultants

1

“To grow, companies need to break out of a

vicious cycle of competitive

benchmarking and imitation.” —W. Chan Kim & Renée

Mauborgne, “Think for Yourself —Stop Copying a Rival,” Financial Times

1

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

quantity and quantity and imaginativenessimaginativeness

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

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

product development.*product development.*

421

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

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

431

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

Mike Bloomberg:Mike Bloomberg:

““Curiosity.”Curiosity.”

441

Can you pass the …Can you pass the …

“Squint “Squint test”?test”?

451

“The The Bottleneck Bottleneck

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

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

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

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

461

““d”iversityd”iversity

481

#4#4

491

XFX = XFX = #1#1

1

Never Never waste a waste a lunch!lunch!

1

Lunch Lunch > SAP/> SAP/OracleOracle

521

““XFXXFX Social Social 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! functions! (Purposefully. Consistently. Measurably.)(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? (Minimum 10% to 25% for everyone? Measured.)Measured.)3. Ask peers in other functions for references so you can become 3. Ask peers in other functions for references so you can become conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-ism.)ism.)4. Invite counterparts in other functions to your team meetings. 4. Invite counterparts in other functions to your team meetings. Religiously. Ask them to present “cool stuff” from “their world” to Religiously. Ask them to present “cool stuff” from “their world” to your group. (B-I-G deal; useful and respectful.)your group. (B-I-G deal; useful and respectful.)5.5. PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO

ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ONCEONCE AA DAYDAY … make a short call or visit or send an email of … make a short call or visit or send an email of “Thanks” for some sort of XFX gesture by your folks and some other “Thanks” for some sort of XFX gesture by your folks and some other function’s folks.)function’s folks.)6. Present counterparts in other functions awards for service to 6. Present counterparts in other functions awards for service to your group. Tiny awards at least weekly; and an your group. Tiny awards at least weekly; and an “Annual All-Star “Annual All-Star Supporters [from other groups] Banquet” modeled after superstar Supporters [from other groups] Banquet” modeled after superstar salesperson banquets.salesperson banquets.7. Discuss—A SEPARATE AGENDA ITEM—good and problematic acts 7. Discuss—A SEPARATE AGENDA ITEM—good and problematic acts of cross-functional co-operation at every Team Meeting.of cross-functional co-operation at every Team Meeting.

531

““XFX XFX SocialSocial Accelerators.” Accelerators.”

8. When someone in another function asks for assistance, respond 8. When someone in another function asks for assistance, respond with … with … more … alacrity than you would if it were the person in the more … alacrity than you would if it were the person in the cubicle next to yours—or even more than you would for a key cubicle next to yours—or even more than you would for a key external customer. (Remember, XFX is the key to Customer external customer. (Remember, XFX is the key to Customer Retention which is in turn the key to “all good things.”)Retention which is in turn the key to “all good things.”)9.9. Do not bad mouth ... “the damned accountants,” “the bloody HR Do not bad mouth ... “the damned accountants,” “the bloody HR guy.” Ever.guy.” Ever. (Bosses: Severe penalties for this—including (Bosses: Severe penalties for this—including public public tongue-lashings.)tongue-lashings.)10. Get physical!! 10. Get physical!! “Co-location” may well be the most powerful “Co-location” may well be the most powerful “culture change lever.” “culture change lever.” Physical X-functional proximity is almost a Physical X-functional proximity is almost a … … guarantee … of remarkably improved co-operation—to aid this guarantee … of remarkably improved co-operation—to aid this one needs flexible workspaces that can be mobilized for a team in a one needs flexible workspaces that can be mobilized for a team in a flash.flash.11. Formal evaluations. 11. Formal evaluations. Everyone, starting with the receptionist, Everyone, starting with the receptionist, should have a significant XF rating component in their evaluation.should have a significant XF rating component in their evaluation. (The “XFX Performance” should be among the Top 3 items in all (The “XFX Performance” should be among the Top 3 items in all managers’ evaluations.)managers’ evaluations.)12. Demand XF experience for, especially, senior jobs. For example, 12. Demand XF experience for, especially, senior jobs. For example, the U.S. military requires all would-be generals and admirals to the U.S. military requires all would-be generals and admirals to have served a full tour in a job whose only goals were cross-have served a full tour in a job whose only goals were cross-functional achievements.functional achievements.13. XFX is … PERSONAL … as well as about organizational 13. XFX is … PERSONAL … as well as about organizational effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to personal success—in terms of organizational career, personal success—in terms of organizational career, freelancer/Brand You, or as an entrepreneur. freelancer/Brand You, or as an entrepreneur.

541

THE WHOLE POINT HERE IS THAT “XFX” IS THE WHOLE POINT HERE IS THAT “XFX” IS ALMOST CERTAINLY THE #1 OPPORTUNITY ALMOST CERTAINLY THE #1 OPPORTUNITY FOR STRATEGIC DIFFERENTIATION. WHILE FOR STRATEGIC DIFFERENTIATION. WHILE

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

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

FOR NO LESS THAN …FOR NO LESS THAN …

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

1

C(I)C(I)>>C(C(E)E)

1

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

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

1

??????????????

“Success doesn’t depend on the number of “Success doesn’t depend on the number of people you know; it depends on the number people you know; it depends on the number

of people you know in of people you know in hihigghh places!”places!”

oror

“Success doesn’t depend on the number of “Success doesn’t depend on the number of people you know; it depends on the number people you know; it depends on the number

of people you know in of people you know in lowlow places!” places!”

581

#5#5

1

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

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

1

1818 secondsseconds

1

Enterprise value #1: "We listen intently "We listen intently

to and fully to and fully engageengage

all with whom all with whom we associate."we associate."

621

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

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

[cont.][cont.]

631

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

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

1

*Listening is of the*Listening is of the

utmost … utmost … strategic importance! importance!

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

core value ! !

*Listening is … *Listening is … trainable !!

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

1

““The West spent … The West spent … $$2.32.3 trilliontrillion

on foreign aid over the last five decades on foreign aid over the last five decades and still has and still has not not managed to get twelve-managed to get twelve-

cent medicines to children to prevent half of cent medicines to children to prevent half of all malaria deaths. The West spent $2.3 all malaria deaths. The West spent $2.3

trillion and still trillion and still notnot managed to get three managed to get three dollars to each new mother to prevent five dollars to each new mother to prevent five

million child deaths. … But I and many other million child deaths. … But I and many other like-minded people keep trying, not to like-minded people keep trying, not to

abandon aid to the poor, but to make sure it abandon aid to the poor, but to make sure it

reaches them.”reaches them.” ——William Easterly,William Easterly, The White Man’s Burden: Why the West’s Effort to The White Man’s Burden: Why the West’s Effort to

Aid the Rest Have Done So Much Ill and So Little GoodAid the Rest Have Done So Much Ill and So Little Good

1

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

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

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

Carnegie

671

#6#6

1

9494%% of loans of loans

to …to …

womenwomen****MMicrolending; “Banker to the poor”; Grameen Bank; icrolending; “Banker to the poor”; Grameen Bank;

Muhammad Yunus; 2006 Nobel Peace Prize winnerMuhammad Yunus; 2006 Nobel Peace Prize winner

691

#7#7

701

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

UpUp

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

711

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

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

1

Planetary Rainmaker-in-Chief!

“Palmisano’s strategy is “Palmisano’s strategy is to expand tech’s borders to expand tech’s borders by pushing users—and by pushing users—and

entire industries—entire industries—toward toward radicallradicallyy different different

business modelsbusiness models.. The payoff for IBM

would be access to an ocean of revenue—Palmisano estimates it at $500 billion a year$500 billion a year —that technology

companies have never been able to touch.” —Fortune

1

““We want to be We want to be the air traffic the air traffic controllers of controllers of

electrons.”electrons.”—Bob Nardelli, —Bob Nardelli, GE Power SystemsGE Power Systems

(7 years, (7 years, 5% to to 55%))

741

““Big Brown’s New Bag: UPS Big Brown’s New Bag: UPS Aims to Be the Traffic Aims to Be the Traffic

Manager for Corporate Manager for Corporate AmericaAmerica”” —Headline/—Headline/BWBW

““UPS wants to take over the UPS wants to take over the sweet spot in the endless sweet spot in the endless loop of goods, information loop of goods, information

and capital that all the and capital that all the packages packages [it moves][it moves] represent represent.”.” ——

ecompany.com ecompany.com (E.g., (E.g., UPS LogisticsUPS Logistics manages the logistics of 4.5M Ford vehicles, manages the logistics of 4.5M Ford vehicles,

from 21 mfg. sites to 6,000 NA dealers) from 21 mfg. sites to 6,000 NA dealers)

1

““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

761

I. LAN Installation Co. (3%)

II. Geek Squad. (30%.)

III. Acquired by BestBuy.

IV. Flagship of BestBuyFlagship of BestBuy Wholesale “Solutions” Wholesale “Solutions” Strategy Makeover. Strategy Makeover.

1

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

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

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

‘business advantage‘business advantage’’ ” (“Culture- ” (“Culture-Strategic change”)Strategic change”)

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

1

““The business of selling is not just about matching viable The business of selling is not just about matching viable

solutions to the customers that require them. solutions to the customers that require them. It’s It’s equally about managing the equally about managing the

change process the customer change process the customer will need to go through to will need to go through to

implement the solution and implement the solution and achieve the value promised achieve the value promised

by the solutionby the solution.. One of the key One of the key

differentiators of our position in the market is our attention to differentiators of our position in the market is our attention to managing change and making change stick in our customers’ managing change and making change stick in our customers’

organization.”organization.”* (*E.g.: CRM failure rate/Gartner: * (*E.g.: CRM failure rate/Gartner: 7070%)%) —Jeff Thull, —Jeff Thull, The Prime Solution: Close the Value Gap, The Prime Solution: Close the Value Gap,

Increase Margins, and Win the Complex SaleIncrease Margins, and Win the Complex Sale

791

#8#8

801

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

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

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

Scale?

14,00014,00020,00020,0003030

14,000/14,000/eeBayBay20,000/Amazon20,000/Amazon3030//CraigslistCraigslist

831

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!!

841

Part Three:Part Three: TheThe Small Small CourtesiesCourtesies

1

““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

1

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

1

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

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

relationships)relationships)

881

#1#1

891

2255

901

MBWMBWAA

911

#2#2

1

GiveGive good good tea! tea!

931

Edward VIIEdward VIIB. FranklinB. FranklinOr Not: Clinton-Cornwallis-Yorktown

941

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

through the through the develodeveloppmentment ofof friendshifriendshippss.”.”

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

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

trusttrust of fellow cadets who came from widely varied of fellow cadets who came from widely varied backgrounds; it was a quality that would pay greatbackgrounds; it was a quality that would pay great dividends during his future coalition command.”dividends during his future coalition command.”

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

RReturn eturn OOn n

IInvestment In nvestment In

RRelationshipselationships

971

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

Ben/teaBen/teaNorm/teaNorm/tea

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

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

Edward VII/dance-flatter-mingle-learn the languageEdward VII/dance-flatter-mingle-learn the languageVladimir Putin/birthday party of outgroup guy’s wifeVladimir Putin/birthday party of outgroup guy’s wife

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

GE Energy/make friends risk assessmentGE Energy/make friends risk assessment

GWB/check the invitation listGWB/check the invitation listGHWB/T-notesGHWB/T-notesHank/60 callsHank/60 callsMarkM/5K-5MMarkM/5K-5M

Delaware/show upDelaware/show up

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

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

Women/genesWomen/genesBanker/after churchBanker/after church

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

981

#3#3

991

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

1001

““May I clean May I clean your your

glasses, glasses, sir?”sir?”

1

<TG<TGWWand …and …

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

1021

#4#4

1

““The The fourfour most most imimpportantortant wordswords in any in any

organization are …organization are …

1

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

are …are … “What do “What do youyou

think?”think?”

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

1

““WDYT” = WDYT” = Certification of me Certification of me

as a person of as a person of Importance whose Importance whose opinion is valued. opinion is valued.

1

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

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

[Count!] [Practice [Practice

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

STRATEGIC skill!]skill!]

1071

What do managers do for a living?What do managers do for a living?

Help!Help!Right?Right?

How many of us could call ourselves How many of us could call ourselves “professional helpers,”“professional helpers,” meaning that we meaning that we have studied—like a professional mastering her craft—helping”?have studied—like a professional mastering her craft—helping”?(Not many, I’d judge.)(Not many, I’d judge.)

Ed Schein:Ed Schein: HelHelppiningg: How to Offer,: How to Offer,Give, and Receive HelGive, and Receive Helpp

Last chapter: 7 “principles.” E.g.:Last chapter: 7 “principles.” E.g.:

PRINCIPLE 2:PRINCIPLE 2: “Effective Help Occurs When the Helping Relationship Is “Effective Help Occurs When the Helping Relationship Is Perceived to Be Equitable.Perceived to Be Equitable.PRINCIPLE 4:PRINCIPLE 4: “Everything You Say or Do Is an Intervention that “Everything You Say or Do Is an Intervention that Determines the Future of the Relationship.Determines the Future of the Relationship.PRINCIPLE 5:PRINCIPLE 5: “Effective Helping Begins with Pure Inquiry. “Effective Helping Begins with Pure Inquiry.PRINCIPLE 6:PRINCIPLE 6: “It Is the Client Who Owns the Problem..”* “It Is the Client Who Owns the Problem..”*

(*Love the idea that the employee is a (*Love the idea that the employee is a “Client”!“Client”! Words matter!! Read a quote from NFL Words matter!! Read a quote from NFL player-turned lawyer-turned NFL coach, calling his players “my clients.”)player-turned lawyer-turned NFL coach, calling his players “my clients.”)

Employee as Client! Employee as Client! ““Helping” is what we [leaders] “do” for a living!Helping” is what we [leaders] “do” for a living!STUDY/PRACTICE “helping” as you would neurosurgery!STUDY/PRACTICE “helping” as you would neurosurgery!(“Helping” (“Helping” isis your neurosurgery!) your neurosurgery!)

1081

#5#5

1

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

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

—William James—William James

1101

““One kind word can One kind word can warm three winter warm three winter

months.”months.” – Japanese Proverb– Japanese Proverb

1111

11/80*/80*

*Post-interview “Thank you” notes*Post-interview “Thank you” notes

1

*appreciation is of the*appreciation is of the

utmost … utmost … strategicstrategic importance! importance!

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

core core valuevalue ! !

*appreciation is … *appreciation is … trainabletrainable !!

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

1131

#6#6

1151

““In the election in 1994, his In the election in 1994, his

smilesmile was the campaign. That was the campaign. That

smiling iconic campaign poster—on billboards, smiling iconic campaign poster—on billboards, on highways, on street lamps, at tea shops on highways, on street lamps, at tea shops and fruit stalls. It told black voters that he and fruit stalls. It told black voters that he

would be their champion and white voters that would be their champion and white voters that he would be their protector. It was the smile of he would be their protector. It was the smile of

the proverb ‘tout comprendre, c’est tout the proverb ‘tout comprendre, c’est tout pardoner’—to understand is to forgive all. It pardoner’—to understand is to forgive all. It

was political Prozac for a nervous electorate.”was political Prozac for a nervous electorate.”

From “See the Good in Others,”From “See the Good in Others,” Mandela’s Way: Mandela’s Way: Fifteen Lessons on Life, Love, and Courage, Fifteen Lessons on Life, Love, and Courage, by Richard Stengelby Richard Stengel

1

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

an almost an almost transcendent transcendent

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

1171

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

enthusiasm.”enthusiasm.”

—Ben Zander

1181

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

—Samuel Taylor Coleridge

1

““You must You must bebe

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

world.”world.”GandhiGandhi

1201

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

—David D’Alessandro, Career Warfare

1211

#7#7

1221

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

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

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

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

1241

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

PROBLEM. THE PROBLEM. THE RESPONSERESPONSE TO THE TO THE

PROBLEM INVARIABLY PROBLEM INVARIABLY ENDS UP BEING THE ENDS UP BEING THE

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

1251

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.

1261

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

>>>>PerfectionPerfection

1271

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

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

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

1281

#8#8

1

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 the patient’s health referred to the patient’s health outcomeoutcome

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

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

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

1

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

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

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

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

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

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

1

““KindnesKindness is free.”s is free.”

1321

K = R = K = R = PP

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

1331

K = R = P/Kindness = Repeat business = Profit/K = 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 screwups.Apologizes with dispatch for screwups.““Over”-reacts to screwups of any magnitude.Over”-reacts to screwups of any magnitude.““Professional” in all dealings.Professional” in all dealings.Optimistic.Optimistic.Understand that kindness to staff breeds kindness to others/outsiders.Understand that kindness to staff breeds kindness to others/outsiders.Applies throughout the “supply chain.”Applies throughout the “supply chain.”Applies to 100% of customer’s staff.Applies to 100% of customer’s staff.Explicit part of values statement.Explicit part of values statement.Basis for evaluation of 100% of our staff.Basis for evaluation of 100% of our staff.

1341

#9#9

1

Zabar’sZabar’s Parking Parking Garage*Garage*

*Retail Superstars: Inside the 25 Best Independent Stores in America*Retail Superstars: Inside the 25 Best Independent Stores in America

1361

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

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

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

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

Meeting)Meeting)

1371

"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

1391

““We went through the hotel [soon after acquiring it] We went through the hotel [soon after acquiring it]

and made a ... and made a ... ‘‘considerationconsideration renovationrenovation.’.’ Instead of redoing bathrooms, dining rooms, and guest Instead of redoing bathrooms, dining rooms, and guest

rooms, we gave employees new uniforms, bought rooms, we gave employees new uniforms, bought flowers and fruit, and changed colors. Our focus was flowers and fruit, and changed colors. Our focus was totally on the staff. They were the ones we wanted to totally on the staff. They were the ones we wanted to

make happy. We wanted them to wake up every make happy. We wanted them to wake up every morning excited about a new day at work.”morning excited about a new day at work.”

““The path to a hostmanship culture paradoxically does The path to a hostmanship culture paradoxically does not go through the guest. In fact it wouldn’t be totally not go through the guest. In fact it wouldn’t be totally wrong to say that the guest has nothing to do with it. wrong to say that the guest has nothing to do with it. Hostmanship leaders focus on their employees. What Hostmanship leaders focus on their employees. What drives exceptionalism is finding the right people and drives exceptionalism is finding the right people and

getting them to love their work and see it as a passion. getting them to love their work and see it as a passion. The guest comes into the picture only when you are The guest comes into the picture only when you are ready to ask, “‘Would you prefer to stay at a hotel ready to ask, “‘Would you prefer to stay at a hotel

where the staff love their work or where management where the staff love their work or where management has made customers its highest priority?’”has made customers its highest priority?’”

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

1

… … 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..

1411

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

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

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

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

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

1421

Our Mission

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

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

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

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

WPP

1431

The Small The Small Courtesies.Courtesies.

1

The “Baker’s Dozen Courtesies”The “Baker’s Dozen Courtesies”

1.1. The Small Courtesies! The Small Courtesies! (Henry Clay.)(Henry Clay.)

2.2. Stay in touch. Stay in touch. (MBWA.)(MBWA.)

3. Invest in relationships. 3. Invest in relationships. (Edward VII. Ike.)(Edward VII. Ike.)

4. TGRs/Things Gone Right. (Kingfisher Air.)4. TGRs/Things Gone Right. (Kingfisher Air.)5. “Suck down.” 5. “Suck down.” 6. C(I)>C(E).6. C(I)>C(E).7. “Let’s do lunch.” 7. “Let’s do lunch.” (XFX/Cross-functional Excellence = #1T)(XFX/Cross-functional Excellence = #1T)

8. Listen. 8. Listen. (Respect. Learn. Student. PROFESSIONAL.(Respect. Learn. Student. PROFESSIONAL. SUSTAINABLE COMPETITIVE ADVANTAGE #1TSUSTAINABLE COMPETITIVE ADVANTAGE #1T))

9. “What do you think?” 9. “What do you think?” (Schein/Giving help.)(Schein/Giving help.)

10. Thank 10. Thank (Appreciate. Acknowledge.)(Appreciate. Acknowledge.)

11. Smile! 11. Smile! (Mandela.)(Mandela.)

12. Apologize 12. Apologize (Unequivocal. Rectify. Over-react. )(Unequivocal. Rectify. Over-react. )

13. K = R = P 13. K = R = P (Kindness is free. This is … (Kindness is free. This is … STRATEGICSTRATEGIC.).)

14. “Consideration renovation.” 14. “Consideration renovation.” (Customer SECOND.)(Customer SECOND.)

1451

Five Or Less Five Or Less Words To Words To The WiseThe Wise

1461

EXCELLENCE/Five Or Less Words To The WiseEXCELLENCE/Five Or Less Words To The Wise

4 most important words: 4 most important words: “What do you think?”“What do you think?” (Dave Wheeler @ (Dave Wheeler @ tompeters.com: “Most important 4tompeters.com: “Most important 4 words in an organization.”)words in an organization.”)4 most important words: 4 most important words: “How can I help?”“How can I help?” (Boss as CHRO/ (Boss as CHRO/ Chief Hurdle Removal Officer)Chief Hurdle Removal Officer)2 most important words: 2 most important words: “Thank you!”“Thank you!” (Appreciation/ (Appreciation/ Recognition)Recognition)2 most important words: 2 most important words: “All yours.”“All yours.” (“Hands-off” delegation/ (“Hands-off” delegation/ Respect/Trust)Respect/Trust)3 most important words: 3 most important words: “I’m going out.”“I’m going out.” (MBWA/Managing By (MBWA/Managing By Wandering Around/In touch!)Wandering Around/In touch!)2 most important words: 2 most important words: “I’m sorry.”“I’m sorry.” (Power of unconditional (Power of unconditional apology = Stunning! Marshallapology = Stunning! Marshall Goldsmith: #1 exec issue)Goldsmith: #1 exec issue)5 most important words: 5 most important words: “Did you tell the customer?”“Did you tell the customer?” (Over- (Over- communicate) communicate) 2 most important words: 2 most important words: “She says …”“She says …” (“She” is the customer!) (“She” is the customer!)

1471


2 most important words: 2 most important words: “Yes ma’am.”“Yes ma’am.” (Women are more often (Women are more often than not the best managers.) than not the best managers.) 2 most important words: 2 most important words: “Try it!”“Try it!” (My only “for sure” in 44 (My only “for sure” in 44 years:years: Herb Kelleher: Herb Kelleher: “We have a strategic“We have a strategic plan, it’s called doing things.”/plan, it’s called doing things.”/BillBill Parcells: Parcells: “Blame no one. Expect“Blame no one. Expect nothing. Do something.”nothing. Do something.”))3 most important words: 3 most important words: “Try it again!”“Try it again!” (My only “for sure” in (My only “for sure” in 4444 years: MOST TRIES WINS.)years: MOST TRIES WINS.)2 most important words: 2 most important words: “Good try!”“Good try!” (CELEBRATE “good (CELEBRATE “good failures.” Richard Farson/book:failures.” Richard Farson/book: Whoever Makes the Most MistakesWhoever Makes the Most Mistakes Wins. Wins. Samuel Beckett:Samuel Beckett: “Fail. Fail again. “Fail. Fail again. Fail better.”Fail better.”))3 most important words: 3 most important words: “At your service.”“At your service.” (Organizations exist (Organizations exist to serve. Period. Leaders live to serve.to serve. Period. Leaders live to serve. Period.)Period.)4 most important words: 4 most important words: “How are we doing?”“How are we doing?” (To customers, (To customers, regularly.)regularly.)4 most important words: 4 most important words: “How was Mary’s recital?”“How was Mary’s recital?” (Know your (Know your employees’ kids.)employees’ kids.)2 most important words: 2 most important words: “Let’s party!”“Let’s party!” (Celebrate “small wins” (Celebrate “small wins” atat the drop of a hat.) the drop of a hat.)

1481


1 most important word: 1 most important word: “No.”“No.” (“To don’ts” > “To dos”) (“To don’ts” > “To dos”)1 most important word: 1 most important word: “Yes.”“Yes.” (Hey, give it a shot/Anon. quote: (Hey, give it a shot/Anon. quote: ““The best answer is always, ‘What theThe best answer is always, ‘What the hell.’”/hell.’”/Wayne Gretzky: Wayne Gretzky: “You miss“You miss 100% of the shots you don’t take.”100% of the shots you don’t take.”))2 most important words: 2 most important words: “Lunch today?”“Lunch today?” (“Social stuff” = Secret (“Social stuff” = Secret to problem/opportunity #1:/XFX/to problem/opportunity #1:/XFX/ cross-functional Excellence.)cross-functional Excellence.)4 most important words: 4 most important words: “Thank Dick in accounting.”“Thank Dick in accounting.” (Readily (Readily acknowledge help from otheracknowledge help from other functions.)functions.)2 most important words: 2 most important words: “After you.”“After you.” (Courtesy rules.) (Courtesy rules.)3 most important words: 3 most important words: “Thanks for coming.”“Thanks for coming.” (Civility. E.g., (Civility. E.g., bossboss acknowledges employee coming toacknowledges employee coming to her/his office.) her/his office.) 2 most important words: 2 most important words: “Great smile!”“Great smile!” (Note & acknowledge (Note & acknowledge good attitude.)good attitude.)1 most important word: 1 most important word: “Wow!”“Wow!” (The gold standard … for (The gold standard … for everything.) everything.) 1 most important word: 1 most important word: “EXCELLENT!”“EXCELLENT!” (The … ONLY … (The … ONLY … acceptable standard/aspiration.)acceptable standard/aspiration.)

1491

Part Four: Part Four: TheThe

Memories Memories ThatThat Matter.Matter.

1501

The Memories The Memories That That MatterMatter..

Tom Peters/10.17.10Tom Peters/10.17.10

1511

The Memories That MatterThe Memories That Matter

The people you developed who went on to stellarThe people you developed who went on to stellar accomplishments inside or outside the company. accomplishments inside or outside 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 years later say The people of all stripes who 2/5/10/20 years later say ““You made a difference in my life,” “Your belief in You made a difference in my life,” “Your belief in meme changed everything.”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.”

1

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

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

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

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

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

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

1531


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

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

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

1541


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

1551


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

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

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

1561


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

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

1571


Created the sort of workplaces you’d like your kids to inhabit.Created the sort of workplaces you’d like your kids to inhabit. (Explicitly conscious of this “Would I want my kids to work here?”(Explicitly conscious of this “Would I want my kids to work here?” litmus test.)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.”

long tom peters’ excellence. always. innovate. or die. mastercard sales leadership meeting

Documents

women rule

baxa financialkodak

female consumer

growth market bigger

com1the ascent of money

financial history

world niall fergusonagainst

cemex program