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More Moore. *Basement Systems Inc. *Larry Janesky * Dry Basement Science (115,000!) *1990: $0; 2003: $13M; 2008: $62,000,000. The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. * Michelangelo *Think D.C. cabbie …. - PowerPoint PPT Presentation

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MoreMoreMooreMoore

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*Basement Systems Inc.*Basement Systems Inc.*Larry Janesky*Larry Janesky**Dry Basement ScienceDry Basement Science (115,000!) (115,000!)

*1990: $0; 2003: $13M; *1990: $0; 2003: $13M; 2008: 2008:

$62,000,000$62,000,000

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The greatest dangerThe greatest dangerfor most of usfor most of us

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

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

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

MichelangeloMichelangelo

*Think D.C. cabbie …*Think D.C. cabbie …

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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!!

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14,00014,00020,00020,000

3030

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

3030/Craigslist/Craigslist

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Before we Before we begin …begin …

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

lieutenants and captains and majors, it lieutenants and captains and majors, it

would be a tragedy. would be a tragedy. If he If he lost his lost his

serserggeants it eants it would be a would be a

catastrocatastropphehe..

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#1#1 cause of cause of

employee employee Dis-satisfaction?Dis-satisfaction?

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Employee retention & satisfaction:Employee retention & satisfaction:

OverwhelminOverwhelminggllyy, , based on the based on the

first-line first-line manamanagger!er!

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

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Before we Before we begin …begin …

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XFX = XFX = #1#1

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Never Never waste a waste a lunch!lunch!

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““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: ONCE A DAYONCE A DAY … make a short call or visit or send an email of “Thanks” for some … make a short call or visit or send an email of “Thanks” for some sort of XFX gesture by your folks and some other function’s folks.)sort of XFX gesture by your folks and some other 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.

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““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, free-lancer/Brand You, or as entrepreneur. free-lancer/Brand You, or as entrepreneur.

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Lunch Lunch > SAP/> SAP/OracleOracle

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Before we Before we begin …begin …

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Paul Omerod: “I am often I am often asked by would-be asked by would-be

entrepreneurs seeking entrepreneurs seeking escape from life within escape from life within

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

seems obviousseems obvious … …

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

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

obvious: Buy a very Buy a very largelarge

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

Fail: Evolution, Extinction and Economics

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““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

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““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

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

#2 China#2 China

#1 #1 GermanyGermany

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Reason:Reason:

Mittelstand!Mittelstand!**

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

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““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

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Before we Before we begin …begin …

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The “3H Strategy of Everything”: The “3H Strategy of Everything”: All you need to know …All you need to know …

HiltonHiltonHowardHowardHerbHerb

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

was asked, was asked, “What was the most important lesson you’ve learned in you

long and distinguished career?” His immediate His immediate

answer …answer …

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““remember remember to tuck the to tuck the

shower curtain shower curtain inside the inside the bathtubbathtub””

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

straightforward. Pickstraightforward. Pick a general direction a general direction

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

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

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

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

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

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InternalInternal organizational organizational excellence = excellence =

Deepest Deepest ““Blue Blue OceanOcean””

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““Execution Execution isis strategy.strategy.””

—Fred Malek—Fred Malek

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XX* ** XX* ** isis STRATEGY. STRATEGY.

XX XX isis DIFFERENTIATION. DIFFERENTIATION.

XX XX isis DE-COMODITIZATION.*** DE-COMODITIZATION.***

XX XX isis VALUE-ADDED. VALUE-ADDED.

*e*eXXcellence in ecellence in eXXecutionecution**GE, Exxon Mobil, PepsiCo, Hyundai+, very few “etc.”**GE, Exxon Mobil, PepsiCo, Hyundai+, very few “etc.”*** *** “Commodity” is a state of mind! PERIOD! is a state of mind! PERIOD!

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

HiltonHiltonHowardHowardHerbHerb

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2255

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MBWMBWAA

Managing By Wandering Around/Managing By Wandering Around/HPHP

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

HiltonHiltonHowardHowardHerbHerb

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

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

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

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

Meeting)Meeting)

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Zabar’s Zabar’s Parking Parking GarageGarage

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

HiltonHiltonHowardHowardHerbHerb

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

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

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Tom Peters’Tom Peters’

Excellence.Excellence.Always.Always.

Cabot Corporation/The Dolder GrandCabot Corporation/The Dolder Grand03 October 201003 October 2010

(Slides at tompeters.com)(Slides at tompeters.com)(Also see Cabot LONG)(Also see Cabot LONG)

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Part Part ONEONE

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#1#1

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Little =Little =

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

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Big carts =Big carts =

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

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

$B$BSource: PepsiCoSource: PepsiCo

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#2#2

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

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““May I clean May I clean your your

glasses, glasses, sir?”sir?”

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““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

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The Value-added Ladder

Scintillating Scintillating EXPERIENCESEXPERIENCES

ServicesServicesGoodsGoods

Raw Materials Raw Materials

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<TG<TGWWand …and …

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

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#3#3

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

UpUp

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

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Planetary Rainmaker-in-Chief!

“Palmisano’s strategy is “Palmisano’s strategy is to expand tech’s to expand tech’s

borders by pushing borders by pushing users—and entire users—and entire

industries—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

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

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

AmericaAmerica”” —Headline/BW

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““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

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MasterCard MasterCard AdvisorsAdvisors

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The Value-added Ladder/ OPPORTUNITY-SEEKINGOPPORTUNITY-SEEKING

Customer Success/ Customer Success/ Gamechanging Gamechanging

SolutionsSolutionsScintillating ExperiencesScintillating Experiences

ServicesServicesGoodsGoods

Raw Materials Raw Materials

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Part Part TWOTWO

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#4#4

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19821982

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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”

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““Breakthrough” 82*Breakthrough” 82*

People! People! CustomersCustomers

! ! Action! Action! Values! Values!

**In Search of ExcellenceIn Search of Excellence

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20072007SydneSydne

yy

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… … 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..

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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.

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

against tasks. Leadership against tasks. Leadership

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

is someone who is someone who helhelpps s ppeoeopple le

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

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Brand Brand = =

Talent.Talent.

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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

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Part Part THREETHREE

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#5#5

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

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

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1818 secondsseconds

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[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.]

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

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

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*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 ! !

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#6#6

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

organization are …organization are …

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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

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#7#7

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““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 Successfu. Even More Successfu.

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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.

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#8#8

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

nonenone of THE top 15 of THE top 15

factors determining factors determining PPatient atient

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

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

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

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

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

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

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

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

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

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

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K = R = K = R = PP

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

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““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

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Part Part FOURFOUR

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#9#9

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

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

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

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

1/401/40

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““ExperimenExperiment t

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

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

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““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

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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

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““We have a We have a ‘strategic plan.’ ‘strategic plan.’ It’s called It’s called doing doing thingsthings.”.” — Herb Kelleher

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#10#10

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““Fail .Fail . Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

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““RewardReward excellent failures.

PunishPunish mediocre successes.”

Phil Daniels, Sydney exec

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#11#11

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1980:1980: “Strategic “Strategic Thrust Thrust

Overlay”Overlay”

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GEGE

InflationInflationR&D/BusinessR&D/Business Development DevelopmentRisk managementRisk managementWorkoutWorkoutVA/ServiceVA/ServiceSix SigmaSix Sigma

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G[B]TD: TacticsG[B]TD: Tactics

Small [but powerful] CentralSmall [but powerful] Central “Staff”* [*Line-like] “Staff”* [*Line-like]Senior “Homegrown” Boss [& Staff]Senior “Homegrown” Boss [& Staff]Enormous Incentives [$/Eval]Enormous Incentives [$/Eval]Line Accountability [Line Accountability [NotNot “Matrix” “Matrix” ] ]Demo-led [Emergent Methodology]Demo-led [Emergent Methodology]“Tour of [External] Excellence”“Tour of [External] Excellence”“Blitz” Training“Blitz” TrainingCentral Unit/Finite LifeCentral Unit/Finite LifeSpeed!Speed!Goal: “Culture Change”!Goal: “Culture Change”!

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#12#12

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We We areare the the companycompany we keepwe keep

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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’ ” ”

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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

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CUSTOMERS: “Future-“Future-defining customers defining customers

may account for only may account for only 2%2% to to 3%3% of your total, of your total, but they represent a but they represent a

crucial window on crucial window on the future.”the future.”

Adrian Slywotzky, Mercer Consultants

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““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

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

Companies offering Companies offering work to online work to online

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

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

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

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

Collaboration Changes Everything, Don Tapscott & Anthony Williams

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#13#13

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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.*

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#14#14

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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?

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#15#15

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Inno16Inno16

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Part Part FIVEFIVE

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#16#16

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#1 Truthteller …#1 Truthteller …

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You = You = Your Your

calendarcalendar***Calendars *Calendars nevernever lielie

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

‘To-don’t ’‘To-don’t ’

List !”List !”

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

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

first and they do one thing first and they do one thing at a time.”at a time.” —Peter Drucker—Peter Drucker

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#17#17

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

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

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

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

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

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

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

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

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

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Part Part SIXSIX

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#18#18

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The Memories The Memories That Matter.That Matter.

Tom Peters/02 October 2010Tom Peters/02 October 2010

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The Memories That MatterThe Memories That Matter

The people you developed who went on to stellar accomplishmentsThe people you developed who went on to stellar accomplishments inside or outside the company. (A reputation as “a peerless inside or outside the company. (A reputation as “a peerless peoplepeople developer.”)developer.”)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 longshots (people with “a certain something”) you bet on whoThe longshots (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 “You made a difference in my life,” “Your belief in me changed everything.”difference in my life,” “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.”

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The Memories That MatterThe Memories That Matter

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 invariably said, A frighteningly consistent record of having invariably said, “Go for “Go for it!”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.)

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The Memories That MatterThe Memories That Matter

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. Have never (rarely) let your external expression of enthusiasm/ Have 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 shows.energy and bedrock optimism and sense of humor shows.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.

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The Memories That MatterThe Memories That Matter

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 the occasion if A Mandela-like “naïve” belief that others will rise to the occasion if givengiven the opportunity.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 know more than youHumility in the face of others, at every level, who know more than you about “the way things really are.”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.)

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The Memories That MatterThe Memories That Matter

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 external to your internal and external constituents. (Employees/Peers/Customers/Vendors/Community.)constituents. (Employees/Peers/Customers/Vendors/Community.)Treated the term “servant leadership” as wholly writ. (And Treated the term “servant leadership” as wholly 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.)

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The Memories That MatterThe Memories That Matter

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