Tom Peters’ Tom Peters’

EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.

London Business ForumLondon Business Forum03 September 200903 September 2009

Morning/HR Professionals Morning/HR Professionals

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

that it is not a that it is not a messmess],], you need you need Microsoft fonts:Microsoft fonts:

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

andand “Verdana”“Verdana”

Slides at …Slides at …

tompeters.comtompeters.com

Inno8Inno8

#1#1

Little =Little =

BIBIGG

Big carts =Big carts =

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

Socks = Socks = 10,00010,000

see see greengreen = recover = recover

20% 20% fasterfaster

6.56.5 feet Away feet Away ==

--6363% % “Seconds”“Seconds”

(1)(1) Amenable to rapid Amenable to rapid experimentation/experimentation/ failure “free” (PR, $$)failure “free” (PR, $$)(2)(2) Quick to implement/ Quick to implement/ Quick to Roll outQuick to Roll out(3)(3) Inexpensive to Inexpensive to implement/Roll outimplement/Roll out(4)(4) Huge multiplier Huge multiplier(5)(5) An “Attitude” An “Attitude”(6)(6) Don’t need to be a “Big Don’t need to be a “Big

Boss”Boss”

(1)(1) Half-day/25 ideasHalf-day/25 ideas(2)(2) One week/5 One week/5

experimentsexperiments(3) (3) One month/Select best One month/Select best

22(4) (4) 60-90 days/Roll out60-90 days/Roll out

““Design is Design is evereveryythinthing. g. Everything is Everything is desidesiggnn.”.”

““We are We are allall designers.” designers.”

Inspiration:Inspiration: The Power of Design: A Force for The Power of Design: A Force for Transforming Everything, Transforming Everything, Richard FarsonRichard Farson

#2#2

1/401/40

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 it. Try it. Try it. Try it. Try it. Try it.

“This is so simple it sounds stupid, but it is amazing how few oil people really

understand that you only you only find oil if you find oil if you drill wellsdrill wells.. You may

think you’re finding it when you’re drawing maps and

studying logs, but you have to drill.”

Source: The Hunters, by John Masters, Canadian O & G wildcatter

““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

““ExperimenExperiment t

fearlessly”fearlessly”Source: BW0821.06, Type A Organization Strategies/

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

““We groundWe ground up more pig up more pig

brains!”brains!”

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

#3#3

““Fail .Fail . Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

““Fail faster. Fail faster. Succeed Succeed Sooner.”Sooner.”

David Kelley/IDEO

““RewardReward excellent failures.

PunishPunish mediocre

successes.”Phil Daniels, Sydney exec

Read This!

Richard Farson & Ralph Keyes:

Whoever Makes Whoever Makes the Most Mistakes the Most Mistakes Wins: The Paradox Wins: The Paradox

of Innovationof Innovation

““It is not enough It is not enough to ‘tolerate’ to ‘tolerate’ failure—you failure—you

must ‘celebrate’ must ‘celebrate’ failure.”failure.” —Richard Farson —Richard Farson

((Whoever Makes the Most Mistakes WinsWhoever Makes the Most Mistakes Wins))

#4#4

““Some people look for Some people look for things that went wrong things that went wrong

and try to fix them. I and try to fix them. I look for look for things that things that

went rightwent right,, and try to and try to build off them.”build off them.” —Bob Stone (Mr

ReGo)

““Somewhere in your Somewhere in your organization, groups of organization, groups of

people are people are alreadalreadyy doin doingg thinthinggs differentls differentlyy and and

better. To create lasting better. To create lasting change, find these areas change, find these areas of positive deviance and of positive deviance and

fan the flamesfan the flames.”.”

—Richard Pascale & Jerry Sternin, “Your Company’s Secret Change Agents,” HBR

Demos!Demos! Heroes! Heroes! Stories!Stories!

““Where Where pplannerslanners ** raise high expectations raise high expectations but take no responsibility for meeting them, but take no responsibility for meeting them,

searcherssearchers prefer to work case-by-case, prefer to work case-by-case, using trial and error to tailor solutions to using trial and error to tailor solutions to

individual problems, fully aware that most individual problems, fully aware that most remedies must be homegrown.” remedies must be homegrown.” ——WSJWSJ, 0822.06 (on malaria , 0822.06 (on malaria

eradication, eradication, and hedge fund manager Lance Laifer)and hedge fund manager Lance Laifer)

[*“Planners [*“Planners [WHO, World Bank, etc][WHO, World Bank, etc] see poverty as a see poverty as a technical engineering problem that their technical engineering problem that their

answers will solve.” answers will solve.” —William Easterly—William Easterly]]

“All sorts of approaches need to be “All sorts of approaches need to be tried and we need feedback.” tried and we need feedback.” —Roger Bate—Roger Bate

““Never doubt that a Never doubt that a small group of small group of

committed peoplecommitted people can change the can change the

world. Indeed it isworld. Indeed it is the only thing that the only thing that ever has.”ever has.” —Margaret Mead

#5#5

Playmate!*Playmate!*Playpen!Playpen!

Prototype!Prototype!

*Can be Client, supplier … as well as Insider*Can be Client, supplier … as well as Insider

Where to look for “Playmates”:

F.F.F.F.F.F.F.F. (Find a Fellow Freak Faraway)

#6#6

““Parallel Parallel Universe” …Universe” … China!!!!!!!China!!!!!!!

Build a “School on top of Build a “School on top of a school”a school” (The Parallel

Universe Strategy)

“SkunkWorks”/ “ParallelUniverse”

“the 1%1%

solution”Source: Scott Bedbury (Others: 3M, Google, Shell, NAVFAC)

SkunkWorks/ SkunkWorks/ “Skunks” (!!!)“Skunks” (!!!)

#7#7

We We areare the the companycompany we keepwe keep

The “We are what we eat”The “We are what we eat” axiom: axiom: At its core, At its core, evereveryy (!!!) (!!!)

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

decision about:decision about:

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

””

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

““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

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

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

Collaboration Changes Everything, Don Tapscott & Anthony Williams

““Diverse groups of problem solvers—groupsDiverse groups of problem solvers—groups of people with diverse tools—consistently of people with diverse tools—consistently outperformed groups of the best and the outperformed groups of the best and the

brightest. If I formed two groups, one brightest. If I formed two groups, one randomrandom (and therefore diverse) and one (and therefore diverse) and one

consisting of the consisting of the bestbest individual performers, individual performers, the first group almost always did better. …the first group almost always did better. …

DiversityDiversity trumped trumped abilityability.”.” —Scott Page, —Scott Page, The Difference: How The Difference: How

the Power of Diversity Creates Better Groups,the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Diversity Firms, Schools, and Societies Diversity

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

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

#8#8

X X =XFX*=XFX*

**ExcellenceExcellence = Cross-functional Excellence = Cross-functional Excellence

Never Never waste a waste a lunch!lunch!

????????

% XF % XF lunches*lunches*

*Measure!*Measure!

(Way) Underutilized Lever(Way) Underutilized Lever

Space!Space!Space!Space!Space!Space!Space!Space!

Geologists + Geologists + Geophysicists + Geophysicists +

A little bit of love =A little bit of love =

OilOil

>100 >100 feet = feet = 100 100

milesmiles

Lunch + Lunch + ProximityProximity

> > SAP/OracleSAP/Oracle

people power:people power: The The

talent talent 3030

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

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

““I have always I have always believed that the believed that the

purpose of the purpose of the corporation is to be corporation is to be

a blessing to the a blessing to the employees.”employees.” —Boyd Clarke —Boyd Clarke

CauseCause (worthy of commitment)(worthy of commitment)

SpaceSpace (room for/encouragement(room for/encouragement

for initiative) for initiative)

DecencyDecency (respect, (respect,

humane)humane)

CauseCause (worthy of commitment)(worthy of commitment)

SpaceSpace (room for/encouragement for initiative-(room for/encouragement for initiative-

adventures) adventures)

DecencyDecency (respect, grace, integrity, humane)(respect, grace, integrity, humane)

serviceservice (worthy of our clients’ & extended (worthy of our clients’ & extended

family’s continuing custom) family’s continuing custom)

excellenceexcellence (period) (period)

servant servant leadership leadership

CauseCause

SpaceSpace

DecencyDecency

serviceserviceexcellenceexcellence

servant leadership servant leadership

““Leaders Leaders

‘‘SERVESERVE’’ people. people.

Period.”Period.” —inspired by Robert Greenleaf

11.. peoplepeople!!

PeoplePeople!!

peoplepeople!!

PeoplePeople!!

““The most The most important decisions important decisions

businesspeople businesspeople make are not make are not

‘what’ decisions ‘what’ decisions but ‘who’ but ‘who’

decisions.” decisions.” —Jim Collins, —Jim Collins, Good to GreatGood to Great

TP: TP: “How to flush

$500,000 down

the toilet in one easy

lesson!!”

< CAPEX< CAPEX> People!> People!

WegmansWegmans

22.. The The “Customer” “Customer” is “Job #1”!is “Job #1”!

And that principal And that principal customer is …customer is …

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

employees like employees like customers.”customers.” —Herb Kelleher, —Herb Kelleher,

complete answer, upon being asked his “secrets to success”complete answer, upon being asked his “secrets to success”

Source: Joe Nocera, Source: Joe Nocera, NYTNYT, “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after , “Parting Words of an Airline Pioneer,” on the occasion of 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 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; across the way in Dallas American Airlines’ pilots were picketing the Annual Meeting)done; across the way in Dallas American Airlines’ pilots were picketing the Annual Meeting)

The Customer The Customer Comes Comes SecondSecond

——Hal RosenbluthHal Rosenbluth

33.. “Soft” “Soft” Is “Hard.”Is “Hard.”

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. Autonomy and Entrepreneurship3. Autonomy and Entrepreneurship4. Productivity Through 4. Productivity Through PeoPeopplele5. Hands On, 5. Hands On, ValueValue--DrivenDriven6. Stick to the Knitting6. Stick to the Knitting7. Simple Form, Lean Staff7. Simple Form, Lean Staff8. Simultaneous Loose-Tight8. Simultaneous Loose-Tight Properties” Properties”

““Breakthrough” 82*Breakthrough” 82*

People! People! CustomersCustomers

! ! Action! Action! Values! Values!

**In Search of ExcellenceIn Search of Excellence

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

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

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

relationships)relationships)

44.. The “Find ‘em” The “Find ‘em” obsession: Biz obsession: Biz

“Strategic”“Strategic”

Priority Priority #1#1 ?!. ?!.

““Development can help great Development can help great

people be even better—people be even better— but if but if I had a dollar to I had a dollar to

spend, I’d spend 70 spend, I’d spend 70 cents getting the cents getting the

right person in the right person in the doordoor.”.” ——Paul Russell, Director, Leadership &Paul Russell, Director, Leadership &

Development, Google Development, Google

CCtataOO*

*Chief talent acquisitiontalent acquisition Officer

#1.#1.StrategicStrategic..Priority.Priority.Period.Period.

55.. Focus on the Focus on the

#1#1 determinant determinant of employee of employee

satisfaction (or the satisfaction (or the lack thereof)lack thereof)

Employee retention & satisfaction:Employee retention & satisfaction:

OverwhelminOverwhelminggllyy, , based on the based on the first-first-

line manaline managger!er!

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

66.. “Legacy” “Legacy”

= 10!= 10!

2/year 2/year = =

legacy.legacy.

““Big Three”Big Three”

Recruit-Hire.Recruit-Hire.11stst line supervisors. line supervisors.

Promotion decisions.Promotion decisions.

And?????And?????

77.. Talent Talent “Excellence” “Excellence” Stretches Far Stretches Far Beyond Our Beyond Our

Borders.Borders.

We We areare the the companycompany we keepwe keep

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

The “We are what we eat” The “We are what we eat” axiom:axiom: At its core, At its core, evereveryy

(!!!) relationship-(!!!) relationship-partnership decision partnership decision (employee, vendor, (employee, vendor,

customer, etc) is a customer, etc) is a stratestrateggicic decision about:decision about:

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

““[CEO A.G.] Lafley has shifted [CEO A.G.] Lafley has shifted P&G’sP&G’s focus on inventing all its own focus on inventing all its own

products to developing products to developing

others’ others’ inventions at inventions at least half the least half the timetime.. One successful One successful

example Mr. Clean Magic Eraser, example Mr. Clean Magic Eraser, based on a product found in anbased on a product found in an

Osaka market.” Osaka market.” ——FortuneFortune

88.. Expand the Expand the definition of “our” definition of “our” talent pool: Master talent pool: Master “Crowd-sourcing,” “Crowd-sourcing,”

“Wikiworld”!“Wikiworld”!

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

Red Lake Red Lake goldSource: Wikinomics: How Mass

Collaboration Changes Everything, Don Tapscott & Anthony WilliamsDon Tapscott & Anthony Williams

““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

““Technology massively multiplies soft power—particularly video Technology massively multiplies soft power—particularly video technology, and particularly in the hands of non-state actors. … The technology, and particularly in the hands of non-state actors. … The

power and distinction of a government’s voice is lost in the power and distinction of a government’s voice is lost in the competing chatter, and in some ways it becomes the least compelling competing chatter, and in some ways it becomes the least compelling

simply because it’s the least novel. It’s not just words competing simply because it’s the least novel. It’s not just words competing against words. Images are now competing against images. People are against words. Images are now competing against images. People are visual creatures, and they tend to respond to videos and pictures on visual creatures, and they tend to respond to videos and pictures on

a much less rational and much more visceral level. …a much less rational and much more visceral level. …

YouTube YouTube (and whatever follows it)(and whatever follows it) will soon will soon have have ggreater reater gglobal influence lobal influence

over narratives about over narratives about international eventsinternational events (if it doesn’t already)(if it doesn’t already)

than anthan anyy ggovernment overnment information source could hoinformation source could hoppe e

to haveto have.”.”

——Foreign PolicyForeign Policy, Nov-Dec 2008, Nov-Dec 2008

obama obama vsvs MMccCainCain

We ARE NAKED. We ARE NAKED. The entire The entire distributed community is part distributed community is part

of our “corporate culture.”of our “corporate culture.”The entire distributed The entire distributed

community is part of our community is part of our “Brand.” “Brand.” We are We are

accountableaccountable to the entire distributed to the entire distributed

community.community. Our power can Our power can multiply overnight. multiply overnight. Our Our

power can dissipate in a click.power can dissipate in a click.

99.. Diversity of Diversity of everyevery sort sort!!

““Diverse groups of problem solvers—groupsDiverse groups of problem solvers—groups of people with diverse tools—consistently of people with diverse tools—consistently outperformed groups of the best and the outperformed groups of the best and the

brightest. If I formed two groups, one brightest. If I formed two groups, one random (and therefore diverse) and one random (and therefore diverse) and one

consisting of the best individual performers, consisting of the best individual performers, the first group almost always did better. …the first group almost always did better. …

DiversityDiversity trumped trumped abilityability.”.” —Scott Page, —Scott Page, The Difference: How The Difference: How

the Power of Diversity Creates Better Groups,the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Diversity Firms, Schools, and Societies Diversity

Carnegie Mellon Prof Richard Florida Carnegie Mellon Prof Richard Florida

on “Creative Caon “Creative Cappitalital”:”: “You “You cannot get a cannot get a

technologically technologically innovative place … innovative place … unless it’s open to unless it’s open to

weirdnessweirdness, , eccentricityeccentricity and and differencedifference.”.”

Source: Source: New York TimesNew York Times

1010.. Women Women Dominate Dominate

EconomicsEconomics!!

““Forget Forget ChinaChina, , IndiaIndia and the and the

InternetInternet: Economic : Economic Growth Is Driven Growth Is Driven

by by WomenWomen..””

—Headline, Economist, April 15, 2006, Leader, page 14

““One thing is certain: Women’s rise to power, which is One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no in all domains and at all levels of society. Women are no

longer content to provide efficient labor or to be longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to consumers with rising budgets and more autonomy to spend. … This is just the beginning. The phenomenon spend. … This is just the beginning. The phenomenon

will only grow as girls prove to be more successful than will only grow as girls prove to be more successful than

boys in the school system.boys in the school system. For a number For a number of observers, we have of observers, we have

already entered the age of already entered the age of ‘womenomics,’ the economy ‘womenomics,’ the economy

as thought out and as thought out and practiced by a womanpracticed by a woman.”.” —Aude —Aude

Zieseniss de Thuin, Zieseniss de Thuin, Financial TimesFinancial Times

1111.. Talent Talent Masters Focus on Masters Focus on

Talent’s Talent’s Intangibles.Intangibles.

EMPHASIZEMPHASIZE THE E THE “SOFT “SOFT

SKILLS.”SKILLS.”

12.12. Hire Hire enthusiasmenthusiasm

!!

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

—Samuel Taylor Coleridge

1313.. Hire Hire for _____!for _____!

1414.. Embrace Embrace the “action the “action Faction”!Faction”!

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

perfect, we’re already on prototype versionperfect, we’re already on prototype version ##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

15.15. Cheer Cheer

[and [and promote promote for!]for!] the the

worthy failures!worthy failures!

““In business, you In business, you rewardreward people for people for

taking taking risksrisks. . When it When it doesn’tdoesn’t workwork outout you you

promotepromote themthem-because -because they were willing to try they were willing to try new things.new things. If people tell me If people tell me

they skied all day and neverthey skied all day and never fell down, I tell them to try a fell down, I tell them to try a

different mountain.”different mountain.” —Mike Bloomberg—Mike Bloomberg

1616.. Exalt the Exalt the “dull” “dull”

DoersDoers!!!!

““eighty eighty percent of percent of success is success is

showing up.” showing up.” ——Woody AllenWoody Allen

1717.. Hire and Hire and Promote for Promote for “relationship “relationship excellence.”excellence.”

HighestHighest R.O.I.R.O.I.

R.R. Wins!Wins!

Return on Return on investment in investment in relationshipsrelationships

1818.. HR Sits at HR Sits at The Head The Head

Table.Table.

A review of A review of Jack and Suzy Welch’sJack and Suzy Welch’s WinningWinning claims there are but two key differentiators claims there are but two key differentiators

that set that set GE “culture”GE “culture” apart from the herd: apart from the herd:

******Separating financial forecasting and performance measurement.Separating financial forecasting and performance measurement. Performance measurement based, as it usually is, on budgeting leads to an epidemic of gaming Performance measurement based, as it usually is, on budgeting leads to an epidemic of gaming the system. GE’s performance measurement is divorced from budgeting—and instead reflects the system. GE’s performance measurement is divorced from budgeting—and instead reflects how you do relative to your past performance and relative to competitors’ performance; i.e., it’s how you do relative to your past performance and relative to competitors’ performance; i.e., it’s about how you actually do in the context of what happened in the real world, not as compared about how you actually do in the context of what happened in the real world, not as compared to a gamed-abstract plan developed last year. to a gamed-abstract plan developed last year.

******Putting Putting HRHR on a on a par with finance and par with finance and marketing.marketing.

1919.. Goal: Goal: Amazing questsAmazing quests!!

Life SuccessLife Success!! Dreams Come Dreams Come truetrue!! [for [for everyoneeveryone ]]

““The role of the Director is to The role of the Director is to create a space where the actors create a space where the actors

and actresses canand actresses can become become more than they’ve ever more than they’ve ever been before, more than been before, more than

they’ve dreamed of they’ve dreamed of beingbeing.”.” —Robert Altman, Oscar acceptance speech—Robert Altman, Oscar acceptance speech

““We are a We are a ‘Life ‘Life

Success’ Success’ Company.”Company.”

Dave Liniger, founder, RE/MAX

We We AllAll Have Dreams! Have Dreams!Collective Dream Fulfillment =Collective Dream Fulfillment =

Business Performance Business Performance EXCELLENCEEXCELLENCE

“What is an employee’s purpose? “What is an employee’s purpose? Most would say, ‘to help the company Most would say, ‘to help the company achieve its purpose’—but they would achieve its purpose’—but they would

be wrong. That is certainly part ofbe wrong. That is certainly part of the employee’s role, but an the employee’s role, but an

employee’s primary purpose isemployee’s primary purpose is to become the-best-version-of- to become the-best-version-of-

himself or –herself.”himself or –herself.”

—Matthew Kelly, —Matthew Kelly, The Dream ManagerThe Dream Manager

2020.. Re- Re-name “HR.”name “HR.”

Talent Talent DepartmentDepartment

Dream Dream Realization Realization DepartmentDepartment

2121.. Training I: Training I: TrainTrain!! Train Train!!

TrainTrain!!

26.3HPY

It’s a It’s a numbers numbers game! game! (mostly)(mostly)

2222.. Training II: Training II: MBAMBASS relevant relevant to GTD to GTD!! [Getting things Done][Getting things Done]

The GTD* The GTD*

MBAMBA

*Getting Things Done*Getting Things Done

CoreCore*Managing people I, II, III, IV*Managing people I, II, III, IV*Creating and managing systems*Creating and managing systems with high impactwith high impact*Leadership I, II*Leadership I, II

**Servant leadershipServant leadership**Execution I, II, IIIExecution I, II, III*Creating a “Try it now”-“Fail Forward*Creating a “Try it now”-“Fail Forward Fast”-“Ready. Fire. Aim.” “culture”Fast”-“Ready. Fire. Aim.” “culture”*Maximizing ROIR *Maximizing ROIR [Return On Investment[Return On Investment in Relationships]in Relationships]

**Sales I, II, III, IVSales I, II, III, IV*Service basics I, II*Service basics I, II*Creating incredible customer*Creating incredible customer experiencesexperiences

CoreCore

*The art and science of influence I, II*The art and science of influence I, II*Crucial conversations-Crucial*Crucial conversations-Crucial confrontationsconfrontations*Accounting* I, II *Accounting* I, II [*acctg., not “finance”][*acctg., not “finance”]

*Accountability I, II*Accountability I, II*Calendar mastery/Mastering “to don’t”*Calendar mastery/Mastering “to don’t”

**MBWA I, IIMBWA I, II*Nurturing and harvesting curiosity*Nurturing and harvesting curiosity in one and allin one and all*Giving great presentations I, II*Giving great presentations I, II

**Active listening I, II Active listening I, II **Excellence as aspiration,Excellence as aspiration, Excellence everywhere,Excellence everywhere, Excellence all the timeExcellence all the time

OtherOther

*Recruiting top talent for 100% of*Recruiting top talent for 100% of enterprise jobsenterprise jobs

**Recruiting for smiles, enthusiasm,Recruiting for smiles, enthusiasm, energyenergy*Nurturing top talent*Nurturing top talent

**Helping people (employees,Helping people (employees, customers, vendors,customers, vendors, communities) grow and realizecommunities) grow and realize their dreamstheir dreams*The promotion decision*The promotion decision*Women as pre-eminent leaders*Women as pre-eminent leaders*The power of decentralization—and*The power of decentralization—and the barriers theretothe barriers thereto

OtherOther

**The art of finding and loving The art of finding and loving freaksfreaks*Creating an environment of respect *Creating an environment of respect and decency and decency *The pre-eminent role of emotion in*The pre-eminent role of emotion in everythingeverything

**Saying “thank you” I, IISaying “thank you” I, II**Aggressive apologizingAggressive apologizing**Giving good phone, working theGiving good phone, working the phonesphones*Creating and nurturing lasting win-win*Creating and nurturing lasting win-win alliancesalliances*The real “stuff”-basics of cross-*The real “stuff”-basics of cross- functional excellencefunctional excellence

OtherOther

*The Art of the Nudge*The Art of the Nudge*Rapid prototyping of everything, *Rapid prototyping of everything, and the Art of Serious Playand the Art of Serious Play

**Rewarding failuresRewarding failures*Increasing a business’s metabolic rate*Increasing a business’s metabolic rate*Diversity power everywhere *Diversity power everywhere *The power of universal transparency*The power of universal transparency

2323.. Training III: Training III: The REAL The REAL

Bedrock of the Bedrock of the “Talent Thing.”“Talent Thing.”

““My wife and I went to a [kindergarten] parent-teacher My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding refrigerator conference and were informed that our budding refrigerator

artist, Christopher, would be receiving a grade of artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How could any childUnsatisfactory in art. We were shocked. How could any child

—let alone our child—receive a poor grade in art at such a —let alone our child—receive a poor grade in art at such a

young age?young age? His teacher His teacher informed us that he had informed us that he had refused to color within refused to color within the lines, which was a the lines, which was a state restate reqquirement for uirement for demonstratindemonstratingg ‘ ‘ggrade-rade-

level motor skillslevel motor skills.’.’ ” ” —Jordan —Jordan

Ayan, AHA!Ayan, AHA!

2424.. Re-Re-spectspect!!

““It was much later that I realized Dad’s It was much later that I realized Dad’s secret. He gained respect by giving it. He secret. He gained respect by giving it. He

talked and listened to the fourth-grade kids talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same in Spring Valley who shined shoes the same way he talked and listened to a bishop or a way he talked and listened to a bishop or a

college president.college president. He was He was seriously interested seriously interested in who you were and in who you were and

what you had to saywhat you had to say.”.”

Sara Lawrence-Lightfoot, Respect

2525. . Encourage Encourage

DisDis-respect!-respect!

All You Need to Know About All You Need to Know About “Sources of Innovation”:“Sources of Innovation”:

Angry Angry people!people! [angry with [angry with

the status quo]the status quo]

2626.. Talent Talent Excellence! Excellence!

Leaders who Leaders who askask! Leaders ! Leaders who who listenlisten!!

““The four most The four most important words in any important words in any

organizationorganization

are …are … ‘What do ‘What do you think?’you think?’ ” ”

Source: courtesy Dave Wheeler,Source: courtesy Dave Wheeler, posted at tompeters.com, source ofposted at tompeters.com, source of

original unknown (0609.08) original unknown (0609.08)

1818””

27.27. Thank Thank

YouYou!!

““The deepest The deepest human need is human need is the need to be the need to be appreciated.”appreciated.”

William JamesWilliam James

2828.. We Are All We Are All Unique. Unique.

““The key difference between The key difference between checkers and chess is that in checkers and chess is that in checkers the pieces all move checkers the pieces all move

the same way, whereas in the same way, whereas in chess all the pieces move chess all the pieces move

differently. … differently. … Discover Discover what is uniwhat is uniqque about ue about

each each pperson and erson and cacappitalize on ititalize on it.”.” —Marcus —Marcus

Buckingham,Buckingham, The One Thing You Need to KnowThe One Thing You Need to Know

“The mediocre manager believes The mediocre manager believes that most things are learnable and that most things are learnable and

therefore that the essence of therefore that the essence of management is to identify ach management is to identify ach

person’s weaker areas and eradicate person’s weaker areas and eradicate them. The great manager believes them. The great manager believes the opposite. the opposite. He believes that the He believes that the

most influential qualities of a person most influential qualities of a person are innate and therefore that the are innate and therefore that the

essence of management is to deploy essence of management is to deploy these innate qualities as effectively these innate qualities as effectively

as possible and so drive as possible and so drive performance.”performance.” —Marcus Buckingham, —Marcus Buckingham, The One The One

Thing You Need to KnowThing You Need to Know

2929.. Talent Talent = Brand.= Brand.

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

Brand Brand = =

Talent.Talent.

3030.. excellence. excellence.

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.

Michelangelo