Tom Peters’Tom Peters’

Re-ImagineRe-Imagine

EXCELLENCEEXCELLENCE!!University of Auckland Business SchoolUniversity of Auckland Business School

12 February 201512 February 2015

(For more see tompeters.com and our fully annotated 23-part Master (For more see tompeters.com and our fully annotated 23-part Master Compendium [“Mother of All Presentations”] at excellencenow.com)Compendium [“Mother of All Presentations”] at excellencenow.com)

In Search of ExcellenceIn Search of Excellence, , written in 1982, was seen as a no-holds-written in 1982, was seen as a no-holds-barred critique of American business—which had been found barred critique of American business—which had been found wanting when the Japanese de facto attacked Detroit and wanting when the Japanese de facto attacked Detroit and humbled the USA’s bellwether companies, GM, Ford and Chrysler.humbled the USA’s bellwether companies, GM, Ford and Chrysler.

The book was also seen as a 360-page no-holds-barred attack on The book was also seen as a 360-page no-holds-barred attack on American business schools and the MBA. That was not untrue, American business schools and the MBA. That was not untrue, despite the fact (or perhaps because) both authors had a Stanford despite the fact (or perhaps because) both authors had a Stanford Graduate School of Business diploma on their CVs.Graduate School of Business diploma on their CVs.

The first shot fired in this “battle” was actually by a couple of The first shot fired in this “battle” was actually by a couple of Harvard b-school professors writing in 1980 in the Harvard b-school professors writing in 1980 in the Harvard Harvard Business ReviewBusiness Review. Their article was titled “Managing Our Way to . Their article was titled “Managing Our Way to Economic Decline.” They argued that the b-schools were too Economic Decline.” They argued that the b-schools were too preoccupied with marketing and finance and other abstractions, preoccupied with marketing and finance and other abstractions, and inattentive to the likes of product quality—and the people and inattentive to the likes of product quality—and the people who made the product. who made the product. ISOEISOE, effectively commissioned by , effectively commissioned by McKinsey, continued that line of thought and upped the volume by McKinsey, continued that line of thought and upped the volume by several notches.several notches.

Thirty-three years later everything has changed—and nothing has Thirty-three years later everything has changed—and nothing has changed. The results for me are largely included in this changed. The results for me are largely included in this presentation, especially prepared for the Auckland Business presentation, especially prepared for the Auckland Business School. You will find herein the contents of School. You will find herein the contents of mymy ideal MBA program ideal MBA program—more or less, some trivia, like finance, is AWOL. —more or less, some trivia, like finance, is AWOL.

Enjoy!Enjoy!

First Things First:First Things First:

CONRAD HILTON …CONRAD HILTON …

CONRADCONRAD HILTONHILTON, at a gala celebrating, at a gala celebrating his career, was called to the podium and his career, was called to the podium and

asked,asked, “What were the most important

lessons you learned in your long and

distinguished career?” His answer …His answer …

““Remember Remember to tuck the to tuck the

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

““Amateurs talk Amateurs talk about strategy. about strategy.

Professionals talk Professionals talk about logistics.”about logistics.”

——Omar Bradley, commander of American troops/D-DayOmar Bradley, commander of American troops/D-Day

EXCELLENCEEXCELLENCE!!

Excellence1982: The Bedrock “EiExcellence1982: The Bedrock “Eigght Basics”ht 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 PropertiesProperties

““Breakthrough” 82*Breakthrough” 82*

People! People! Customers! Customers!

Action! Action! ValuesValues! !

**In Search of ExcellenceIn Search of Excellence

In Search of ExcellenceIn Search of Excellence/twitterized/127 characters /twitterized/127 characters including quotation marks and spaces:including quotation marks and spaces:

““Cherish your people. Cherish your people. Cuddle your customers. Cuddle your customers. Wander around. ‘Try it’ Wander around. ‘Try it’

beats ‘talk about it.’ beats ‘talk about it.’ Pursue EXCELLENCE. Pursue EXCELLENCE.

Tell the truth.”Tell the truth.”

EXCELLENCE is EXCELLENCE is notnot a “long- a “long-term” "aspiration.”term” "aspiration.”

EXCELLENCE is the ultimate EXCELLENCE is the ultimate short-term strategy. short-term strategy.

EXCELLENCE is … THEEXCELLENCE is … THE

NEXTNEXT 55 MINUTESMINUTES..**

(*Or (*Or NOTNOT.).)

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

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

EXCELLENCE is EXCELLENCE is a a PERSONALPERSONAL choice … choice … NOTNOT an institutional an institutional

choice!choice!

““[This year’s] graduates are told [by [This year’s] graduates are told [by commencement speakers] to pursue commencement speakers] to pursue

happiness and joy. But, of course, when you happiness and joy. But, of course, when you read a biography of someone you admire, it’s read a biography of someone you admire, it’s rarely the things that made them happy that rarely the things that made them happy that compel our admiration. It’s the things they compel our admiration. It’s the things they

did to court unhappiness—the things they did did to court unhappiness—the things they did that were arduous and miserable, which that were arduous and miserable, which

sometimes cost them friends and aroused sometimes cost them friends and aroused

hatredhatred. . It’s excellence, not It’s excellence, not hahappppiness, that we admire iness, that we admire

mostmost.”.” ——David Brooks, “It’s Not About You,” op-ed,David Brooks, “It’s Not About You,” op-ed, New York Times New York Times, 30 May 2011, 30 May 2011

Why in the Why in the World did youWorld did you go to go to SiberiaSiberia??

ENTERPRISEENTERPRISE* (*AT ITS BEST):* (*AT ITS BEST): An An emotionalemotional, , vitalvital, , innovativeinnovative, j, jooyyfulful, , creativecreative, , entreentreppreneurialreneurial endeavor that elicits endeavor that elicits maximum maximum

concerted humanconcerted human potential in thepotential in the wholehearted wholehearted ppursuit of ursuit of EXCELLENCE inEXCELLENCE in serviceservice of others of others.****Employees, Customers, Suppliers, Communities, Owners, Temporary partners**Employees, Customers, Suppliers, Communities, Owners, Temporary partners

““It may sound radical, unconventional, and It may sound radical, unconventional, and bordering on being a crazy business idea. bordering on being a crazy business idea. However— as ridiculous as it sounds—joy is However— as ridiculous as it sounds—joy is

the core belief of our workplace. the core belief of our workplace.

JoyJoy is the reason my company, is the reason my company,

Menlo Innovations, a customer software Menlo Innovations, a customer software design and development firm in Ann Arbor, design and development firm in Ann Arbor,

exists. It defines what we do and how we do it. exists. It defines what we do and how we do it. It is the single shared belief of our entire It is the single shared belief of our entire

team.”team.”

——Richard Sheridan, Richard Sheridan, Joy, Inc.: Joy, Inc.: How We Built a Workplace People LoveHow We Built a Workplace People Love

SERVICE.SERVICE.PERIOD.PERIOD.

ORGANIZATIONS ORGANIZATIONS EXISTEXIST TO TO SERVESERVE. .

PERIOD.PERIOD.

LEADERS LEADERS LIVELIVE TO TO SERVESERVE. PERIOD.. PERIOD.

PeoplePeoplePeoplePeople

PeoplePeople PeoplePeople

PeoplePeople

People:People:1/4,0961/4,096

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

rewarding lives …rewarding lives …

1/4,096: excellencenow.com1/4,096: excellencenow.com

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

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

worth worth doindoing.”g.”

——Richard BransonRichard Branson

There are 4,096 slides in my 23-part There are 4,096 slides in my 23-part MOAP/“Mother Of All Presentations,” MOAP/“Mother Of All Presentations,” three years in the making. ONE slide three years in the making. ONE slide by definition had to come first. The one by definition had to come first. The one on the previous slide, a quote from the on the previous slide, a quote from the

inimitable Richard Branson, was inimitable Richard Branson, was #1#1

……

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

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

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

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

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

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

““We look for ... We look for ... listening, caring, listening, caring, smiling, saying smiling, saying

‘Thank you,’ being ‘Thank you,’ being warm.” warm.” — Colleen Barrett, former President, Southwest — Colleen Barrett, former President, Southwest

AirlinesAirlines

““hostmanship”/hostmanship”/““consideration consideration

renovation”renovation”

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

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

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

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

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

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

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

priority?’priority?’””

EXCELLENT EXCELLENT customer experiencecustomer experiencedepends … depends … entirely …entirely …

onon EXCELLENT EXCELLENT employee experience!employee experience!

If you want to WOW your If you want to WOW your

customers, customers, FIRSTFIRST you you must WOW those whomust WOW those who WOW the customers!WOW the customers!

““Contrary to conventional Contrary to conventional corporate thinking, treating corporate thinking, treating retail workers much better retail workers much better

may make everyone may make everyone (including their employers) (including their employers)

much richer.”much richer.” * *** **

**DuhDuh!!**Cited in particular, **Cited in particular, The Good Jobs StrategyThe Good Jobs Strategy, ,

by M.I.T. professor Zeynep Ton.by M.I.T. professor Zeynep Ton.

Wegmans Wegmans (was #1/Best Company to Work For in USA)(was #1/Best Company to Work For in USA)

Container Store Container Store (was #1/Best Company to Work For in USA)(was #1/Best Company to Work For in USA)

Whole FoodsWhole FoodsCostcoCostcoPublixPublix

Darden RestaurantsDarden RestaurantsBuild-A-Bear Build-A-Bear WorkshopsWorkshopsStarbucksStarbucks

““In a world where customers wake up In a world where customers wake up every morning asking, ‘What’s new, every morning asking, ‘What’s new, what’s different, what’s amazing?’ what’s different, what’s amazing?’

success desuccess deppends on a ends on a comcomppananyy’s abilit’s abilityy to unleash to unleash initiative, imainitiative, imaggination and ination and ppassion of emassion of empploloyyees at all ees at all

levelslevels —and this can only happen if all —and this can only happen if all those folks are connected heart and soul those folks are connected heart and soul

to their work [their ‘calling’], their to their work [their ‘calling’], their company and their mission.”company and their mission.” —John Mackey and —John Mackey and

Raj Sisoda,Raj Sisoda, Conscious Capitalism: Conscious Capitalism: Liberating the Heroic Spirit of BusinessLiberating the Heroic Spirit of Business

““The greatest satisfaction for management has come not from the The greatest satisfaction for management has come not from the

financial growth of financial growth of CamelliaCamellia itself, but rather from having itself, but rather from having participated in the vast improvement in the living and working participated in the vast improvement in the living and working

conditions of its employees, resulting from the investment of many tens conditions of its employees, resulting from the investment of many tens of millions of pounds into the tea gardens’ infrastructure of roads, of millions of pounds into the tea gardens’ infrastructure of roads,

factories, hospitals, employees’ housing and amenities. … Within the factories, hospitals, employees’ housing and amenities. … Within the Camellia Group there is a strong aesthetic dimension, an intention that Camellia Group there is a strong aesthetic dimension, an intention that

it should comprise companies and assets of the highest quality, it should comprise companies and assets of the highest quality, operating from inspiring offices and manufacturing in state of the art operating from inspiring offices and manufacturing in state of the art

facilities.facilities. … … Above all, there is a deeAbove all, there is a deepp concern concern for the welfare of each emfor the welfare of each empploloyyee. This ee. This

arises not onlarises not onlyy from a sense of from a sense of humanithumanity,y, but also from but also from

the conviction that the lothe conviction that the loyyaltaltyy of a of a secure and enthusiastic emsecure and enthusiastic empploloyyee will in ee will in the lonthe longg-term -term pprove to be an invaluable rove to be an invaluable

comcomppany assetany asset.”.” ——Camellia: A Very Different Company Camellia: A Very Different Company ($600M enterprise/$160M pretax profit/#3 tea producer/etc.)($600M enterprise/$160M pretax profit/#3 tea producer/etc.)

The Good Jobs Strategy: The Good Jobs Strategy: How the Smartest How the Smartest

Companies Invest in Companies Invest in Employees to Lower Costs Employees to Lower Costs & Boost Profits& Boost Profits —Zeynep Ton, MIT Sloan School—Zeynep Ton, MIT Sloan School

Notes: Cases all retail, including Costco and Trader Joe’s. Notes: Cases all retail, including Costco and Trader Joe’s.

E.g., Costco: Average hourly pay E.g., Costco: Average hourly pay $20.89$20.89—40% greater —40% greater than #1 competitor, Sam’s Club. than #1 competitor, Sam’s Club.

Brand Brand = =

Talent.Talent.

Our Mission

TO DEVELOP AND MANAGE TALENT;TO DEVELOP AND MANAGE TALENT;TO APPLY THAT TALENT,TO APPLY THAT TALENT,

THROUGHOUT THE WORLD, THROUGHOUT THE WORLD, FOR THE BENEFIT OF CLIENTS;FOR THE BENEFIT OF CLIENTS;TO DO SO IN PARTNERSHIP; TO DO SO IN PARTNERSHIP;

TO DO SO WITH PROFIT.TO DO SO WITH PROFIT.

WPP

Les Wexner:Les Wexner: FROM FROM FASHION TRENDS GURU FASHION TRENDS GURU

TO KICKS FROM TO KICKS FROM PICKING/DEVELOPING PICKING/DEVELOPING

PEOPLE!*PEOPLE!**Limited Brands founder Les Wexner queried*Limited Brands founder Les Wexner queried

on astounding long-term growth & profitability:on astounding long-term growth & profitability:

It happened because It happened because “I got excited about “I got excited about developing people”developing people” —as excited as he had been —as excited as he had been

about predicting fashion trends in his early years.about predicting fashion trends in his early years.

"When I hire "When I hire someone, that's someone, that's

when when I I ggo to o to work for work for

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

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

DDODDOs/s/Deliberately Developmental OrganizationsDeliberately Developmental Organizations

““These companies operate on the These companies operate on the foundational assumptions that adultsfoundational assumptions that adults

can grow, that not only is attention to the can grow, that not only is attention to the bottom line and the personal growth of all bottom line and the personal growth of all

employees desirable, but the two are employees desirable, but the two are interdependent.interdependent. Both profitability and individual Both profitability and individual

development rely on structures that are built into every development rely on structures that are built into every aspect of how the company operates. … Decurion and aspect of how the company operates. … Decurion and

Bridgewater [cases] offer a form of proof that the quest Bridgewater [cases] offer a form of proof that the quest for business excellence and the search for personal for business excellence and the search for personal

realization need not be mutually exclusive—and can, in realization need not be mutually exclusive—and can, in fact, be essential to each other.”fact, be essential to each other.”

E.g., At Bridgewater Associates, every employee (new hire E.g., At Bridgewater Associates, every employee (new hire

to CEO) has a to CEO) has a “crew”“crew” that “supports his or her growth, that “supports his or her growth, both professionally and personally.”both professionally and personally.”

Source: “Making Business Personal,” Robert Kegan et al., Source: “Making Business Personal,” Robert Kegan et al., HBRHBR/04.14/04.14

““I start with the I start with the premise that the premise that the

function of function of leadership is to leadership is to pproduce more roduce more

leadersleaders, not more , not more followers.”followers.” ——Ralph NaderRalph Nader

The The 7-Step7-StepMethodMethod

7 Steps to Sustaining Success7 Steps to Sustaining Success

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

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

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

Profit Through Profit Through Putting People Putting People First Business First Business

Book ClubBook Club

Profit Through Putting People First Business Book ClubProfit Through Putting People First Business Book Club

Nice Companies Finish First: Why Cutthroat Management Is Over—and Nice Companies Finish First: Why Cutthroat Management Is Over—and Collaboration Is In, Collaboration Is In, by Peter Shankman with Karen Kellyby Peter Shankman with Karen KellyUncontainable: How Passion, Commitment, and Conscious Capitalism Built a Uncontainable: How Passion, Commitment, and Conscious Capitalism Built a Business Where Everyone Thrives, Business Where Everyone Thrives, by Kip Tindell, CEO Container Storeby Kip Tindell, CEO Container StoreConscious Capitalism: Liberating the Heroic Spirit of Business, Conscious Capitalism: Liberating the Heroic Spirit of Business, by John by John Mackey, CEO Whole Foods, and Raj SisodiaMackey, CEO Whole Foods, and Raj SisodiaFirms of Endearment: How World-Class Companies Profit from Passion and Firms of Endearment: How World-Class Companies Profit from Passion and Purpose, Purpose, by Raj Sisodia, Jag Sheth, and David Wolfeby Raj Sisodia, Jag Sheth, and David WolfeThe Good Jobs Strategy: How the Smartest Companies Invest in Employees to The Good Jobs Strategy: How the Smartest Companies Invest in Employees to Lower Costs and Boost Profits, Lower Costs and Boost Profits, by Zeynep Ton, MITby Zeynep Ton, MITJoy, Inc.: How We Built a Workplace People Love, Joy, Inc.: How We Built a Workplace People Love, by Richard Sheridan, CEO by Richard Sheridan, CEO Menlo InnovationsMenlo InnovationsEmployees First, Customers Second: Turning Conventional Management Employees First, Customers Second: Turning Conventional Management Upside Down, Upside Down, by Vineet Nayar, CEO, HCL Technologiesby Vineet Nayar, CEO, HCL TechnologiesThe Customer Comes Second: Put Your People First and Watch ’Em Kick Butt, The Customer Comes Second: Put Your People First and Watch ’Em Kick Butt, by Hal Rosenbluth, former CEO, Rosenbluth Internationalby Hal Rosenbluth, former CEO, Rosenbluth InternationalIt’s Your Ship: Management Techniques from the Best Damn Ship in the Navy, It’s Your Ship: Management Techniques from the Best Damn Ship in the Navy, by Mike Abrashoff, former commander, USS Benfoldby Mike Abrashoff, former commander, USS BenfoldTurn This Ship Around; How to Create Leadership at Every Level, Turn This Ship Around; How to Create Leadership at Every Level, by L. David Marquet, former commander, SSN Santa Feby L. David Marquet, former commander, SSN Santa FeSmSmall Giants: Companies That Choose to Be Great Instead of Big, all Giants: Companies That Choose to Be Great Instead of Big, by Bo Burlinghamby Bo BurlinghamJoy at Work: A Revolutionary Approach to Fun on the Job, Joy at Work: A Revolutionary Approach to Fun on the Job, by Dennis Bakke, by Dennis Bakke, former CEO, AES Corporationformer CEO, AES CorporationThe Dream Manager, The Dream Manager, by Matthew Kellyby Matthew KellyThe Soft Edge: Where Great Companies Find Lasting Success, The Soft Edge: Where Great Companies Find Lasting Success, by Rich by Rich Karlgaard, publisher, ForbesKarlgaard, publisher, Forbes

Training = Training = InvestmentInvestment

#1#1!!

6/2/36/2/3**

*It takes Jerry Seinfeld *It takes Jerry Seinfeld SIX SIX MONTHSMONTHS to develop to develop

TWO TWO oror THREE THREE MINUTESMINUTES of new material of new material (documentary: (documentary: ComedianComedian))

2X2X

Basketball coach John Wooden, perhaps the best coach of Basketball coach John Wooden, perhaps the best coach of

anything, ever:anything, ever: “I was never “I was never much of a game coach, much of a game coach, but I was a pretty good but I was a pretty good

practice coach.”practice coach.”

Hall of fame football coach Bill Walsh on preparation:Hall of fame football coach Bill Walsh on preparation:

““The score takes care The score takes care of itself.”of itself.”

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

training. In most training. In most businesses, it's a businesses, it's a

“ho-hum” mid-level “ho-hum” mid-level staff function.staff function.

Why Why (why(why whywhy whywhy whywhy whywhy whywhy whywhy whywhy whywhy whywhy

whywhy whywhy why)why) is intensive-is intensive-extensive training obvious extensive training obvious

for the army & navy & for the army & navy & sports teams & performing sports teams & performing

arts groups--but arts groups--but not for the average business?for the average business?

Is your Is your CTOCTO/Chief /Chief Training Officer your top Training Officer your top paid “C-level” job (other paid “C-level” job (other

than CEO/COO)?than CEO/COO)?

Are your top trainers Are your top trainers paid/cherished as much paid/cherished as much as your top marketers/ as your top marketers/

engineers?engineers?

Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?If not, why not?If not, why not?Are your top trainers paid as much as your top marketers and engineers?Are your top trainers paid as much as your top marketers and engineers?If not, why not?If not, why not?

Are your training Are your training courses so good courses so good they make you they make you giggle and tingle?giggle and tingle?If not, why not?If not, why not?Randomly stop an employee in the hall: Can she/he meticulously describe her/his development plan for the next Randomly stop an employee in the hall: Can she/he meticulously describe her/his development plan for the next 12 months?12 months?If not, why not?If not, why not?Why is your world of business any different than the (competitive) world of rugby, football, opera, theater, Why is your world of business any different than the (competitive) world of rugby, football, opera, theater, the military?the military?If “people/talent first” and hyper-intense continuous training are laughably obviously for them, why not you? If “people/talent first” and hyper-intense continuous training are laughably obviously for them, why not you?

Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?If not, why not?If not, why not?

Are your top trainers paid as much as your top marketers and engineers?Are your top trainers paid as much as your top marketers and engineers?If not, why not?If not, why not?

Are your training courses so good they make you giggle and tingle?Are your training courses so good they make you giggle and tingle?If not, why not?If not, why not?

Randomly stop an employee Randomly stop an employee in the hall: Can she/he in the hall: Can she/he meticulously describe meticulously describe her/his development plan her/his development plan for the next 12 months?for the next 12 months?If not, why not?If not, why not?

Why is your world of business any different than the (competitive) world of rugby, football, Why is your world of business any different than the (competitive) world of rugby, football, opera, theater, opera, theater, the military?the military?If “people/talent first” and hyper-intense continuous training are laughably obviously for If “people/talent first” and hyper-intense continuous training are laughably obviously for them, why not you? them, why not you?

Gamblin’ ManGamblin’ Man

Bet #1: Bet #1: >> 5 of 10 CEOs see >> 5 of 10 CEOs see training as expense rather training as expense rather than investment.than investment.Bet #2: Bet #2: >> 5 of 10 CEOs see >> 5 of 10 CEOs see training as defense rather training as defense rather than offense.than offense.Bet #3: Bet #3: >> 5 of 10 CEOs see >> 5 of 10 CEOs see training as “necessary evil” training as “necessary evil” rather than “strategic rather than “strategic opportunity.”opportunity.”

Bet #4:Bet #4: >> 8 of 10 >> 8 of 10 CEOs, in 45-min CEOs, in 45-min “tour d’horizon” “tour d’horizon” of their biz, would of their biz, would NOTNOT mention mention training.training.

What is the best reason to go What is the best reason to go bananas over training? bananas over training?

GREED.GREED. (It pays off.) (It pays off.)

(NB: Training should be an official part of(NB: Training should be an official part of

the the R&DR&D budget and a capital expense.) budget and a capital expense.)

Training #1: Bottom LineTraining #1: Bottom Line

NOBODYNOBODY gets off the gets off the

hook! “Training & Development hook! “Training & Development Maniac” applies as much to the Maniac” applies as much to the

leader of the leader of the 4-person 4-person businessbusiness as to the chief of as to the chief of the 44,444-person business.the 44,444-person business.

““Training” On Training” On Steroids: An Steroids: An Education Education

Revolution*Revolution*

*“Revolution” is a wildly overused word*“Revolution” is a wildly overused word——but I can think of no other in this instance.but I can think of no other in this instance.

““Right now, labor Right now, labor markets and jobs are markets and jobs are changing faster than changing faster than

schools, and that means schools, and that means graduates are being left graduates are being left

behind.”behind.” —Tyler Cowen, author —Tyler Cowen, author Average Is OverAverage Is Over, in , in TimeTime (10.25.13) (10.25.13)

““All human beings are All human beings are entrepreneurs.”entrepreneurs.” —Muhammad Yunus—Muhammad Yunus

““Human creativity is the Human creativity is the ultimate economic resource.”ultimate economic resource.” ——

Richard FloridaRichard Florida

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

artist.”artist.” —Picasso—Picasso

"Creativity can no longer be "Creativity can no longer be treated as an elective.”treated as an elective.” —John Maeda—John Maeda

““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 refrigeratorconference 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 child—‘Unsatisfactory’ in art. We were shocked. How could any child—

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

young age? young age? HIS TEACHER INFORMED HIS TEACHER INFORMED US THAT HE HAD REFUSED TO US THAT HE HAD REFUSED TO

COLOR WITHIN THE LINES, COLOR WITHIN THE LINES, WHICH WAS A STATE WHICH WAS A STATE REQUIREMENT FOR REQUIREMENT FOR

DEMONSTRATING ‘GRADE-LEVEL DEMONSTRATING ‘GRADE-LEVEL MOTOR SKILLSMOTOR SKILLS.’ ”.’ ” —Jordan Ayan, —Jordan Ayan, AHA!AHA!

““How many artists are there in the room? Would you please How many artists are there in the room? Would you please raise your hands. raise your hands. FIRST GRADEFIRST GRADE: En masse the children leapt : En masse the children leapt

from their seats, arms waving. Every child was an artist. from their seats, arms waving. Every child was an artist. SECOND GRADESECOND GRADE: About half the kids raised their hands, shoulder : About half the kids raised their hands, shoulder high, no higher. The hands were still. high, no higher. The hands were still. THIRD GRADETHIRD GRADE: At best, 10 : At best, 10 kids out of 30 would raise a hand, tentatively, self-consciously. kids out of 30 would raise a hand, tentatively, self-consciously. By the time I reached By the time I reached SIXTH GRADESIXTH GRADE, no more than one or two , no more than one or two kids raised their hands, and then ever so slightly, betraying a kids raised their hands, and then ever so slightly, betraying a fear of being identified by the group as a ‘closet artist.’ The fear of being identified by the group as a ‘closet artist.’ The

point is:point is:

EVERY SCHOOL I VISITEDEVERY SCHOOL I VISITED WAS PARTICIPATING INWAS PARTICIPATING IN

THE SYSTEMATIC SUPPRESSIONTHE SYSTEMATIC SUPPRESSION OF CREATIVE GENIUS.”OF CREATIVE GENIUS.”

—Gordon MacKenzie, retired creative director, Hallmark, from —Gordon MacKenzie, retired creative director, Hallmark, from Orbiting the Giant HairballOrbiting the Giant Hairball

SSciencecience

TTechnologyechnology

EEngineeringngineering

MMathematicsathematics

SScience cience

TTechnologyechnology

EEngineering ngineering

AArtsrts* * (*Courtesy John Maeda, president, RISD)(*Courtesy John Maeda, president, RISD)

MMathematicsathematics

The Anti-Education Era: The Anti-Education Era: Creating Smarter Students ThroughCreating Smarter Students Through

Digital Learning Digital Learning —James Paul Gee—James Paul Gee

Reality Is Broken: Reality Is Broken: Why Games Make Us Better and How They Why Games Make Us Better and How They

Can Change the World Can Change the World —Jane McGonigal—Jane McGonigal

Everything Bad Is Good For You: Everything Bad Is Good For You: How Today’s Popular Culture Is Actually How Today’s Popular Culture Is Actually

Making Us SmarterMaking Us Smarter —Steven Johnson—Steven Johnson

Extra Lives: Extra Lives: Why Video Games MatterWhy Video Games Matter —Tom Bissell—Tom Bissell

Towards Addiction to … Towards Addiction to … LEARNINGLEARNING

““When I enter a video game, I learn something When I enter a video game, I learn something about a fictitious world. And in that video game, about a fictitious world. And in that video game,

I’m allowed to go at my own pace. I’m I’m allowed to go at my own pace. I’m constantly assessed—assessment becomes my constantly assessed—assessment becomes my friend. I feel good when I master the next level. friend. I feel good when I master the next level. If you could only take that experience of a video If you could only take that experience of a video game back into student learning, we could make game back into student learning, we could make

learning addictive. learning addictive. My deep, deep My deep, deep desire is to find a magic formula desire is to find a magic formula

for learning in the online age for learning in the online age that would make it as addictive that would make it as addictive as playing video games.”as playing video games.” —Sebastian —Sebastian

Thrum, founder, Udacity, Thrum, founder, Udacity, lead developer of Google Glass, etc. (lead developer of Google Glass, etc. (Foreign AffairsForeign Affairs, 11-12.13), 11-12.13)

The very best and theThe very best and the very brightest and thevery brightest and the

most energetic and most energetic and enthusiastic and enthusiastic and

entrepreneurial andentrepreneurial and tech-savvy of our tech-savvy of our

university graduates must—university graduates must—mustmust,,

not should—be lurednot should—be lured into teaching.into teaching.

RADICALRADICAL curricular revision curricular revision imperative. imperative. (STEM/STE(STEM/STEAAM.)M.)

RADICALRADICAL digital strategy. digital strategy.REVOLUTIONARYREVOLUTIONARY new approach to new approach to teacher recruitment/development.teacher recruitment/development.RADICALRADICAL re-assessment of tertiary re-assessment of tertiary

education education (E.g., “MOOC-ization.”)(E.g., “MOOC-ization.”)

RADICALRADICAL re-assessment business re-assessment business ed.ed.

RADICALRADICAL role re-assessment by role re-assessment by corporations (businesses-as-corporations (businesses-as-

educators).educators).(Good news: Nobody’s got it right. Kids are doing it without you—if you’ll let (Good news: Nobody’s got it right. Kids are doing it without you—if you’ll let

them.)them.)

HiringHiring

““Development can help great Development can help great

people be even people be even better— better— but if but if I had a dollar to spend, I’d I had a dollar to spend, I’d

spendspend 7070 cents cents getting the right person getting the right person

in the door.”in the door.” ——Paul Russell, Director, Leadership and Paul Russell, Director, Leadership and

Development, GoogleDevelopment, Google

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

asasppect of businessect of business

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

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

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

““It’s simple, really, It’s simple, really,

Tom. Hire forTom. Hire for s, s, and, and, aboveabove allall, ,

ppromoteromote for for s.”s.” —Starbucks regional manager,

on why so many smiles at Starbucks shops

Observed closely: The use ofObserved closely: The use of

“I”“I” oror

“We”“We” during aduring a

job interview.job interview.

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

AndrewAndrew CarneCarneggieie’s Tombstone Inscription …’s Tombstone Inscription …

Here lies a manHere lies a manWho knew how to enlistWho knew how to enlist

In his serviceIn his serviceBetter men than himself.Better men than himself.

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

QuietQuiet

““We live with a value system that I call the Extrovert Ideal—the omnipresent belief We live with a value system that I call the Extrovert Ideal—the omnipresent belief that the ideal self is gregarious, alpha, and comfortable in the spotlight. The that the ideal self is gregarious, alpha, and comfortable in the spotlight. The

archetypal extrovert prefers action to contemplation, risk-taking to heed-taking, archetypal extrovert prefers action to contemplation, risk-taking to heed-taking, certainty to doubt. … We think that we value individuality, but all too often we certainty to doubt. … We think that we value individuality, but all too often we

admire one type of individual … Introversion is now a second-class personality trait. admire one type of individual … Introversion is now a second-class personality trait.

… … The Extrovert Ideal has been documented in The Extrovert Ideal has been documented in many studies. Talkative people, for example, are many studies. Talkative people, for example, are

rated as smarter, better looking, more rated as smarter, better looking, more interesting, and more desirable as friends. interesting, and more desirable as friends.

Velocity of speech counts as well as volume: We Velocity of speech counts as well as volume: We rank fast talkers as more competent and rank fast talkers as more competent and

likeable than slow ones. But we make a grave likeable than slow ones. But we make a grave mistake to embrace the Extrovert Ideal so mistake to embrace the Extrovert Ideal so

unthinkingly.unthinkingly. … As the science journalist Winifred Gallagher writes, ‘The … As the science journalist Winifred Gallagher writes, ‘The glory of the disposition that stops to consider stimuli rather than rushing to engage glory of the disposition that stops to consider stimuli rather than rushing to engage with them is its long association with intellectual and artistic achievement. Neither with them is its long association with intellectual and artistic achievement. Neither

E = mc squared or Paradise Lost was dashed off by a party animal.’ Even in less E = mc squared or Paradise Lost was dashed off by a party animal.’ Even in less obviously introverted occupations, like finance, politics, and activism, some of the obviously introverted occupations, like finance, politics, and activism, some of the greatest leaps forward were made by introverts … figures like Eleanor Roosevelt, greatest leaps forward were made by introverts … figures like Eleanor Roosevelt, Warren Buffett and Gandhi achieved what they did not in spite of but because of Warren Buffett and Gandhi achieved what they did not in spite of but because of

their introversion.”their introversion.” — —Susan Cain, Susan Cain, Quiet: The Power of Introverts in a World That Can’t Stop TalkingQuiet: The Power of Introverts in a World That Can’t Stop Talking

““The next time you see a The next time you see a person with a composed face person with a composed face and a soft voice, remember and a soft voice, remember

that inside her mind she that inside her mind she might be solving an might be solving an

equation, composing a equation, composing a sonnet, designing a hat. She sonnet, designing a hat. She might, that is, be deploying might, that is, be deploying

the power of quiet.”the power of quiet.” — —Susan Cain, Susan Cain,

Quiet: The Power of Introverts in a World That Can’t Stop TalkingQuiet: The Power of Introverts in a World That Can’t Stop Talking

2/Year = 2/Year = LegacyLegacy

Promotion DecisionsPromotion Decisions

“life and “life and death death

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

““A man should A man should nevernever be promoted to a be promoted to a

managerial position if his managerial position if his vision focuses on people’s vision focuses on people’s

weaknesses rather rather than on their than on their

strengths.”.” —Peter Drucker, —Peter Drucker, The Practice of ManagementThe Practice of Management

EvaluationEvaluation

EVALUATING EVALUATING

PEOPLE = PEOPLE = #1#1

DIFFERENTIATORDIFFERENTIATORSource: Jack Welch, now Jeff Immelt onSource: Jack Welch, now Jeff Immelt on

GE’s top strategic skill ( GE’s top strategic skill (!!!!!!!!))

SelfSelf--EvaluationEvaluation

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

affect everaffect everyyone around one around yyouou is what is what

distindistingguishesuishes a superior a superior leader.”leader.”

—Edie Seashore (—Edie Seashore (strategy + businessstrategy + business #45) #45)

““To develop To develop others, start others, start

with with yyourselfourself.”.”

—Marshall Goldsmith—Marshall Goldsmith

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

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

himself." himself." —Leo Tolstoy—Leo Tolstoy

11stst-Line Bosses -Line Bosses (Cadre of) = (Cadre of) =

Productivity Asset Productivity Asset

#1#1!!

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

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

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

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

same awareness?same awareness?

Employee retention Employee retention && satisfaction satisfaction && productivity: productivity: 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

““People People leave leave

manamanaggersers not not companies.”companies.”

——Dave WheelerDave Wheeler

Is there Is there ONEONE “secret” “secret” to productivity and to productivity and

employee satisfaction?employee satisfaction?

YESYES!!

The Quality of your The Quality of your FULLFULL CADRECADRE of … of …1st-line Leaders.1st-line Leaders.

WOMEN RULEWOMEN RULE!!

““Research Research suggests that suggests that to succeed, to succeed,

start by start by promoting promoting women.”women.”

Source: Nicholas Kristof, “Twitter, Women, and Power,” Source: Nicholas Kristof, “Twitter, Women, and Power,” NYTimesNYTimes, 1024.13, 1024.13

For One (For One (BIGBIG) Thing …) Thing …

““McKinsey & Company found that McKinsey & Company found that the international companies with the international companies with more women on their corporate more women on their corporate

boards boards far outperformedfar outperformed the average the average company in return on equity and company in return on equity and

other measures. Operating profit other measures. Operating profit

was …was … 56%56% higher.”higher.”

Source: Nicholas Kristof, “Twitter, Women, and Power,” Source: Nicholas Kristof, “Twitter, Women, and Power,” NYTimesNYTimes, 1024.13, 1024.13

From Dan Rockwell/Leadership Freak/0924.14:From Dan Rockwell/Leadership Freak/0924.14: “In my “In my experience, women make experience, women make much better executives much better executives

than men,”than men,” says Kip Tindell author of the says Kip Tindell author of the forthcoming forthcoming UNCONTAINABLEUNCONTAINABLE and CEO of The Container and CEO of The Container

Store. Four areas women are especially better: Store. Four areas women are especially better:

Communication. Listening. Communication. Listening. Collaboration. Teamwork.Collaboration. Teamwork.

Seven other areas women are better: Taking initiative. Seven other areas women are better: Taking initiative. Self-development. Integrity. Drive. Developing others. Self-development. Integrity. Drive. Developing others.

Inspiring. Building relationships. Inspiring. Building relationships.

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find that New Studies find that

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

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

““Women are rated higher in fully Women are rated higher in fully 12 of the 16 competencies that go 12 of the 16 competencies that go into outstanding leadership. into outstanding leadership. And And two of the traits where women two of the traits where women outscored men to the highest outscored men to the highest degree — taking initiative and degree — taking initiative and driving for results — have long driving for results — have long been thought of as particularly been thought of as particularly

male strengths.”male strengths.”

——Harvard Business ReviewHarvard Business Review (Courtesy: Dan (Courtesy: Dan Rockwell/Leadership Freak)Rockwell/Leadership Freak)

Women’s Strengths Match New Women’s Strengths Match New Economy ImperativesEconomy Imperatives:: Link [rather than Link [rather than

rank] workers; rank] workers; favor interactive-favor interactive-collaborative leadership style collaborative leadership style

[empowerment beats top-down decision [empowerment beats top-down decision making];making]; sustain fruitful collaborations; sustain fruitful collaborations;

comfortable with sharing information; comfortable with sharing information; see see redistribution of powerredistribution of power

as victory, not surrender as victory, not surrender; favor multi-; favor multi-dimensional feedback; dimensional feedback; value technical & value technical & interpersonal skills, individual & group interpersonal skills, individual & group contributions equally;contributions equally; readily accept readily accept

ambiguity; ambiguity; honor intuition as well as pure honor intuition as well as pure “rationality”;“rationality”; inherently flexible; inherently flexible; appreciate appreciate

cultural diversitycultural diversity..

Source: Source: Judy B. Rosener, Judy B. Rosener, America’s Competitive Secret: Women ManagersAmerica’s Competitive Secret: Women Managers

Women’s NeWomen’s Neggotiatinotiatingg Stren Strenggthsths

*Ability to put themselves in their *Ability to put themselves in their counterparts’ shoes counterparts’ shoes*Comprehensive, attentive and detailed*Comprehensive, attentive and detailed communication style communication style*Empathy that facilitates trust-building*Empathy that facilitates trust-building*Curious and attentive listening*Curious and attentive listening*Less competitive attitude*Less competitive attitude*Strong sense of fairness and ability to *Strong sense of fairness and ability to persuadepersuade*Proactive risk manager*Proactive risk manager*Collaborative decision-making*Collaborative decision-making

Source: Horacio Falcao, Cover story/May 2006, Source: Horacio Falcao, Cover story/May 2006, World BusinessWorld Business, “Say It , “Say It Like a Woman: Why the 21Like a Woman: Why the 21stst-century negotiator will need the female -century negotiator will need the female touch”touch”

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

I am certain, ladies and gentlemen,I am certain, ladies and gentlemen, that that this will be this will be

the woman’s the woman’s centurcentury.y. In the Portuguese language, In the Portuguese language,

words such as life, soul, and hope are of the feminine words such as life, soul, and hope are of the feminine

gender, as are other words like courage and sincerity.”gender, as are other words like courage and sincerity.”

——President Dilma Rousseff of BrazilPresident Dilma Rousseff of Brazil, 1st woman to, 1st woman to keynote the United Nations General Assembly (2011)keynote the United Nations General Assembly (2011)

Warren Buffett Warren Buffett Invests Like a Girl: Invests Like a Girl:

And Why YouAnd Why YouShould TooShould Too —Louann Lofton—Louann Lofton

Portrait of a Female InvestorPortrait of a Female Investor

1. Trade less than men do1. Trade less than men do2. Exhibit less overconfidence—more likely to know2. Exhibit less overconfidence—more likely to know what they don’t know what they don’t know3. Shun risk more than male investors do3. Shun risk more than male investors do4. Less optimistic, more realistic than their male4. Less optimistic, more realistic than their male counterparts counterparts5. Put in more time and effort researching possible5. Put in more time and effort researching possible investments—consider details and alternate points investments—consider details and alternate points of view of view6. More immune to peer pressure—tend to make6. More immune to peer pressure—tend to make decisions the same way regardless of who’s watching decisions the same way regardless of who’s watching7. Learn from their mistakes7. Learn from their mistakes8. Have less testosterone than men do, making them8. Have less testosterone than men do, making them less willing to take extreme risks, which, in turn, less willing to take extreme risks, which, in turn, could lead to less extreme market cycles could lead to less extreme market cycles

Source: Source: Warren Buffett Invests Like a Girl: And Warren Buffett Invests Like a Girl: And Why You Should TooWhy You Should Too, Louann Lofton, Chapter 2, “The Science Behind , Louann Lofton, Chapter 2, “The Science Behind the Girl”the Girl”

THE MORAL THE MORAL IMPERATIVEIMPERATIVECIRCA 2014CIRCA 2014

THE MORAL THE MORAL IMPERATIVE:IMPERATIVE:

PEOPLE PEOPLE DEVELOPMENTDEVELOPMENT

CORPORATE MANDATE #1 2014:CORPORATE MANDATE #1 2014: Your Your principal moral obligation as a principal moral obligation as a

leader is to develop the skillset, leader is to develop the skillset, “soft” and “hard,” of every one “soft” and “hard,” of every one

of the people in your charge of the people in your charge (temporary as well as semi-(temporary as well as semi-permanent) to the maximum permanent) to the maximum

extent of your abilities. The good extent of your abilities. The good news: news: This is also theThis is also the

#1 mid- to lon#1 mid- to longg-term-term … … p profit maximization straterofit maximization strategy!gy!

#2: Help people #2: Help people bebe successful.*successful.*#1: Help people#1: Help people grow.grow.** ***** ****Especially circa 2014; “Grow or die (professionally)” is fact, not hyperbole.*Especially circa 2014; “Grow or die (professionally)” is fact, not hyperbole.**With a nod to Matthew Kelly’s **With a nod to Matthew Kelly’s The Dream ManagerThe Dream Manager***#2 and #1 are clearly related, but #1/grow has more to do with ***#2 and #1 are clearly related, but #1/grow has more to do with long-term preparedness.long-term preparedness.

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

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

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

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

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

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

actors and actresses canactors and actresses can become more than become more than thetheyy’ve ever been ’ve ever been

before,before, more than themore than they’y’ve ve dreamed of beindreamed of being.”g.”

——Robert Altman, Oscar acceptance speechRobert Altman, Oscar acceptance speech

Joe J. Jones Joe J. Jones 1942 – 2010 1942 – 2010

Net WorthNet Worth

$21,543,672.48$21,543,672.48

The Memories That MatterThe Memories That Matter

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

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

““The notion that corThe notion that corpporate law requires orate law requires directors, executives, and emdirectors, executives, and empploloyyeesees

to maximize shareholder wealth simto maximize shareholder wealth simppllyy isn’t trueisn’t true. There is no solid legal support . There is no solid legal support

for the claim that directors and for the claim that directors and executives in U.S. public corporations executives in U.S. public corporations

have an enforceable legal duty to have an enforceable legal duty to

maximize shareholder wealth.maximize shareholder wealth. The The idea is fableidea is fable..””

—Lynn Stout, professor of corporate and business law, Cornell —Lynn Stout, professor of corporate and business law, Cornell

law school, in … law school, in … The Shareholder Value Myth: The Shareholder Value Myth: How Putting Shareholders First HarmsHow Putting Shareholders First Harms

Investors, Corporations, and the Public Investors, Corporations, and the Public

““In a way, the world is a great liar.In a way, the world is a great liar.““It shows you it worships and admires money, but at the It shows you it worships and admires money, but at the end of the day it doesn’t. end of the day it doesn’t. ““It says it adores fame and celebrity, but it doesn’t, not It says it adores fame and celebrity, but it doesn’t, not really. really. ““The world admires, and wants to hold on to, and not lose, The world admires, and wants to hold on to, and not lose, goodness. It admires virtue. At the end it gives its greatest goodness. It admires virtue. At the end it gives its greatest tributes to generosity, honesty, courage, mercy, talents tributes to generosity, honesty, courage, mercy, talents well used, talents that, brought into the world, make it well used, talents that, brought into the world, make it better. That’s what it really admires. That’s what we talk better. That’s what it really admires. That’s what we talk about in eulogies, because that’s what’s important. We about in eulogies, because that’s what’s important. We don’t say, ‘The thing about Joe was he was rich!’don’t say, ‘The thing about Joe was he was rich!’““We say, if we can …We say, if we can …

‘‘The thing about Joe was he The thing about Joe was he took good care of people.’”took good care of people.’”——Peggy Noonan, “A Life’s Lesson,” on the astounding response to the Peggy Noonan, “A Life’s Lesson,” on the astounding response to the passing of Tim Russertpassing of Tim Russert, , thethe Wall Street Journal, Wall Street Journal, June 21–22, 2008 June 21–22, 2008

CONTEXTCONTEXT

Context:Context:1,000,0001,000,000

1/855: “The greatest “The greatest shortcoming of the shortcoming of the human race is our human race is our

inability to inability to understand the understand the

exponential exponential function.” function.” —Albert A. Bartlett—Albert A. Bartlett

““What’s really interesting isWhat’s really interesting is

that over the that over the nextnext fivefive yyearsears we’re going to see we’re going to see

every industry exposed to every industry exposed to reinvention of how people put reinvention of how people put

products and services together, products and services together, how workhow work

is done, what kind of jobs and is done, what kind of jobs and skills are needed, what canskills are needed, what can

be handled by technology.”be handled by technology.”

——John Sculley, startup investor, former Apple CEOJohn Sculley, startup investor, former Apple CEO

China/Foxconn:China/Foxconn:

1,000,000

robots/next robots/next 3 years years

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

““Since Since 19961996, ,

manufacturinmanufacturingg employment employment

in in ChinaChina itself has actually itself has actually

fallenfallen by an estimatedby an estimated

2525 p percentercent. . That’s overThat’s over

30,000,00030,000,000 fewerfewer Chinese workers in that sector, even Chinese workers in that sector, even

while output soared by 70 percent.while output soared by 70 percent. It’s not It’s not that American workers are being replaced by Chinese workers. that American workers are being replaced by Chinese workers. It’s that both American It’s that both American andand Chinese workers are being made Chinese workers are being made more efficient [replaced] by automation.” more efficient [replaced] by automation.” —Erik Brynjolfsson and —Erik Brynjolfsson and

Andrew McAfee, Andrew McAfee, The Second Machine Age: Work, Progress, and Prosperity in a The Second Machine Age: Work, Progress, and Prosperity in a time of Brilliant Technologiestime of Brilliant Technologies

““Automation has become so Automation has become so sophisticated that on a typical sophisticated that on a typical passenger flight, a human pilot passenger flight, a human pilot

holds the controls for a grand total holds the controls for a grand total

of …of …33 minutesminutes. .

[Pilots] have become, it’s not[Pilots] have become, it’s not much of an exaggeration to say, much of an exaggeration to say,

computer operators.”computer operators.” Source: Nicholas Carr, “The Great Forgetting,” Source: Nicholas Carr, “The Great Forgetting,” The AtlanticThe Atlantic, 11.13, 11.13

““Meet Your Meet Your Next Surgeon: Next Surgeon:

Dr. Robot”Dr. Robot”Source: Feature/Source: Feature/FortuneFortune/15 JAN 2013/on Intuitive Surgical’s/15 JAN 2013/on Intuitive Surgical’s

da Vincida Vinci /multiple bypass heart-surgery robot/multiple bypass heart-surgery robot

((“Almost all health care people get is going to be done by “Almost all health care people get is going to be done by algorithms within a decade or two.”algorithms within a decade or two.” —Michael Vassar/MetaMed—Michael Vassar/MetaMed))

SENSOR PILLS:SENSOR PILLS: “… Proteus Digital Health is one of “… Proteus Digital Health is one of

several pioneers in sensor-based health technology. several pioneers in sensor-based health technology. They make a They make a silicon chip the size of a grain of sand that is embedded silicon chip the size of a grain of sand that is embedded into a safely digested pill that is swallowed. When the into a safely digested pill that is swallowed. When the chip mixes with stomach acids, the processor is powered chip mixes with stomach acids, the processor is powered by the body’s electricity and transmits data to a patch by the body’s electricity and transmits data to a patch worn on the skin. That patch, in turn, transmits data via worn on the skin. That patch, in turn, transmits data via Bluetooth to a mobile app, which then transmits the data Bluetooth to a mobile app, which then transmits the data to a central database where a health technician can to a central database where a health technician can verify if a patient has taken her or his medications.verify if a patient has taken her or his medications. “This “This is a bigger deal than it may seem. In 2012, it was estimated that people is a bigger deal than it may seem. In 2012, it was estimated that people not taking their prescribed medications cost not taking their prescribed medications cost $258 BILLION$258 BILLION in in emergency room visits, hospitalization, and doctor visits. An average of emergency room visits, hospitalization, and doctor visits. An average of 130,000130,000 Americans die each year because they don’t follow their Americans die each year because they don’t follow their prescription regimens closely enough...” (The FDA approved placebo prescription regimens closely enough...” (The FDA approved placebo testing in April 2012; sensor pills are ticketed to come to market in testing in April 2012; sensor pills are ticketed to come to market in 2015 or 2016.) 2015 or 2016.) Source: Robert Scoble and Shel Israel, Source: Robert Scoble and Shel Israel, Age of Context: Mobile, Sensors, Data and the Future of PrivacyAge of Context: Mobile, Sensors, Data and the Future of Privacy

Robot Wars!Robot Wars!

“The combination of new “The combination of new market rules and new market rules and new

technology was turningtechnology was turning the stock market into, in the stock market into, in

effect,effect, aa warwar of of robotsrobots.”.” —Michael Lewis, “Goldman’s —Michael Lewis, “Goldman’s

Geek Tragedy,” Geek Tragedy,” Vanity FairVanity Fair, 09.13, 09.13

Betterment/Betterment/““Ambitions of Ambitions of

a Robo a Robo Adviser”Adviser”

——FT/1217.14/ FT/1217.14/ “could put tens of thousands of U.S. investment

advisors out of their jobs”

““Just like other members of Just like other members of

the board, the board, the algorithm gets to vote on

whether the firm makes an investment in a specific company or not. The program will be The program will be

the sixth member of DKV's the sixth member of DKV's board.”board.”

Source:Source: Business Insider, Business Insider, 13 May 2014: 13 May 2014: “A Hong Kong VC fund “A Hong Kong VC fund has just appointed an algorithm to its board.” has just appointed an algorithm to its board.”

““Flash forward to dystopia. You work in a chic Flash forward to dystopia. You work in a chic cubicle, sucking chicken-flavor sustenance fromcubicle, sucking chicken-flavor sustenance from

a tube. You’re furiously maneuvering with a a tube. You’re furiously maneuvering with a joystick … Your boss stops by and gives you a joystick … Your boss stops by and gives you a

look. look. ‘We need to talk about your loyalty to this ‘We need to talk about your loyalty to this

company.’company.’ The organization you work for has deduced that you

are considering quitting. It predicts your plans and

intentions, possibly before you have even conceived them.” —Eric —Eric

Siegel,Siegel, Predictive Analytics: Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie, or Die The Power to Predict Who Will Click, Buy, Lie, or Die (based on a real case, an (based on a real case, an

HP “Flight risk” PA model developed by HR, with astronomical savings potential)HP “Flight risk” PA model developed by HR, with astronomical savings potential)

PersadoPersado (vs. copywriter): (vs. copywriter): emotion words, emotion words, product characteristics, “call to action,” product characteristics, “call to action,”

position of text, imagesposition of text, images

Copywriter/1.3%:Copywriter/1.3%: Up To $250 To Spend On Up To $250 To Spend On All Ships In All Destinations. All Ships In All Destinations.

2 Days Left2 Days Leftvs.vs.

Algorithm/4.1%:Algorithm/4.1%: No kidding! You Qualify! No kidding! You Qualify!Experience An IncredibleExperience An Incredible

Vacation With Us :-)Vacation With Us :-)

““A creative person is good but random. A creative person is good but random. We’ve taken the randomness out by We’ve taken the randomness out by building an ontology of language.”building an ontology of language.”

——Lawrence Whittle, head of salesLawrence Whittle, head of sales

Source: Wall Street Journal/ Source: Wall Street Journal/ 0825.14/ 0825.14/ “It’s Finally Time to Take AI Seriously”“It’s Finally Time to Take AI Seriously”

““Algorithms have already written symphonies Algorithms have already written symphonies as moving as those composed by as moving as those composed by

Beethoven, picked through legalese , picked through legalese

with the deftness of a senior with the deftness of a senior law partner, diagnosed patients with more , diagnosed patients with more

accuracy than a accuracy than a doctor, written news , written news

articles with the smooth hand of a seasonedarticles with the smooth hand of a seasoned reporter, and driven vehicles on urban , and driven vehicles on urban

highways with far better control than a human highways with far better control than a human

driver.”.”

——Christopher Steiner,Christopher Steiner, Automate This: How Algorithms Came to Rule the World

“Human level capability has not turned out to be a special stopping

point from an engineering

perspective. ….”

Source: Illah Reza Nourbakhsh, Professor of Robotics, Carnegie Mellon, Source: Illah Reza Nourbakhsh, Professor of Robotics, Carnegie Mellon, Robot Robot FuturesFutures

Automate This: Automate This: How How

Algorithms Algorithms Came to Rule Came to Rule

the Worldthe World

——Christopher SteinerChristopher Steiner

“Software is eating

the world.” ——Marc AndreessenMarc Andreessen

“A bureaucrat is an expensive microchip.”

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

“The intellectual talents of highly

trained professionals are no more protected from automation than

is the driver’s left turn.”

——Nicholas Carr,Nicholas Carr, The Glass Cage: Automation and Us The Glass Cage: Automation and Us

Multiple Choice ExaminationMultiple Choice Examination

You will you lose your job to; You will you lose your job to; choose one …choose one …

(1)(1) An offshore An offshore contractor?contractor?

(2)(2) An algorithm?An algorithm?(3)(3) A robot?A robot?

Source: Inspired by Dan PinkSource: Inspired by Dan Pink

IoT/The Internet of ThingsIoT/The Internet of Things IoE/The Internet of IoE/The Internet of EverythingEverything M2M/Machine-to-MachineM2M/Machine-to-Machine Ubiquitous computingUbiquitous computing Embedded computingEmbedded computing Pervasive computingPervasive computing Industrial InternetIndustrial Internet Etc.* Etc.* ** ** ******

*“*“More Than More Than 50 BILLION50 BILLION connected devices by 2020” —Ericsson connected devices by 2020” —Ericsson

**Estimated **Estimated 212 BILLION212 BILLION connected devices by 2020—IDC connected devices by 2020—IDC

***“By 2025 IoT could be applicable to ***“By 2025 IoT could be applicable to $82 TRILLION$82 TRILLION of output or of output or approximately one half the global economy”—GE (The WAGs to end all WAGs!)approximately one half the global economy”—GE (The WAGs to end all WAGs!)

““Ford is working with the Ford is working with the healthcare industry on a healthcare industry on a

solution that would notify a solution that would notify a nearby hospital if you were nearby hospital if you were

having a heart attack in your having a heart attack in your car, which can send an car, which can send an

ambulance … ambulance … before you even know you’re having

one. …”

——Daniel Kellmereit & Daniel Obodovski,Daniel Kellmereit & Daniel Obodovski, The Silent Intelligence: The Internet of Things The Silent Intelligence: The Internet of Things

“This Bio-Drone Grows Itself, And Then Melts Into A Puddle Of Sugar When It's Done Flying”

Source: Headline, Fast Company, 08 December 2014

And We’re Just And We’re Just StartingStarting

GGeneticsenetics

RRoboticsobotics

IInformaticsnformatics

NNanotechnologyanotechnology

DestructionDestruction

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

or a Great Stagnation, but ratheror a Great Stagnation, but rather that we are in the early that we are in the early

throes of a throes of a Great Restructuring. .

Our technologies are racing ahead,Our technologies are racing ahead, but our skills and organizationsbut our skills and organizations

are lagging behind.”are lagging behind.”

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

““The median worker is The median worker is losing the race against losing the race against

the machine.”the machine.” —Erik Brynjolfsson and Andrew McAfee, Race

Against The Machine

Median inflation adjusted Median inflation adjusted wages, men 30-50 with wages, men 30-50 with

jobs, jobs, 1969-20091969-2009: :

$33K, $33K, -27%-27%

Source: Source: “The Slow Disappearance of the American “The Slow Disappearance of the American Working Man,”Working Man,” Bloomberg BusinessweekBloomberg Businessweek/08.11/08.11

“Ten Million Jobs at Risk from Advancing Technology: Up to 35 percent of Britain's

jobs will be eliminated by new computing and robotics technology over the next 20

years, say experts [Deloitte/Oxford

University].” —Headline, —Headline, TelegraphTelegraph (UK), (UK), 11 11 NovemberNovember 20142014

Creative Creative DestructionDestruction

““We are in no danger We are in no danger of running out of new of running out of new combinations try.combinations try. Even Even if technology froze today, we have if technology froze today, we have

more possible ways of configuring the more possible ways of configuring the different applications, machines, tasks, different applications, machines, tasks,

and distribution channels to create and distribution channels to create new processes and products than we new processes and products than we could ever exhaust.”could ever exhaust.” ——Erik Brynjolfsson and Andrew Erik Brynjolfsson and Andrew

McAfeeMcAfee, Race Against the Machine: How the Digital Revolution Is Accelerating , Race Against the Machine: How the Digital Revolution Is Accelerating Innovation, Driving Productivity and Irreversibly Transforming Employment Innovation, Driving Productivity and Irreversibly Transforming Employment

and the Economy and the Economy

““This boom, built around systems This boom, built around systems which match jobs with which match jobs with

independent contractors on the independent contractors on the fly, marks a striking new stage in fly, marks a striking new stage in a deeper transformation.a deeper transformation. Using the Using the

now ubiquitous platform of the smartphone to now ubiquitous platform of the smartphone to deliver labour services in a variety of new deliver labour services in a variety of new

ways will challenge many of the fundamental ways will challenge many of the fundamental assumptions of twentieth-century capitalism, assumptions of twentieth-century capitalism, from the nature of the firm to the structure of from the nature of the firm to the structure of careers.” “The ‘on demand economy’ is the careers.” “The ‘on demand economy’ is the

result of pairing the workforce with the result of pairing the workforce with the smartphone.”smartphone.”

——Economist, “There’s an App For That,” 0103.15Economist, “There’s an App For That,” 0103.15

Tongal: 40K video makers, Super Tongal: 40K video makers, Super Bowl ad for Colgate-Palmolive for Bowl ad for Colgate-Palmolive for $17K.$17K.

Business Talent Group/LA: Bosses Business Talent Group/LA: Bosses on the flyon the fly

Axiom: 650 lawyers, $100MAxiom: 650 lawyers, $100M

Mechanical Turk/Amazon: Mechanical Turk/Amazon: Anything!Anything!

ResearchGate/Ijad Madisch: ResearchGate/Ijad Madisch: 5M members, 10K new per day5M members, 10K new per day

Muhammad Yunus: Muhammad Yunus: ““All human All human beinbeinggs are s are

entreentreppreneursreneurs.. When we When we

were in the caves we were all self-were in the caves we were all self-employed . . . finding our food, feeding employed . . . finding our food, feeding ourselves. That’s where human history ourselves. That’s where human history

began . . . As civilization came we began . . . As civilization came we suppressed it. We became labor because suppressed it. We became labor because

they stamped us, ‘You are labor.’ they stamped us, ‘You are labor.’ We forgot that we are entrepreneurs.”We forgot that we are entrepreneurs.”

——Muhammad Yunus,Muhammad Yunus,

Nobel Laureate/The News Hour/PBS/1122.2006Nobel Laureate/The News Hour/PBS/1122.2006

Repeat: Repeat: Job Job

#1#1

CORPORATE MANDATE #1 2014:CORPORATE MANDATE #1 2014: Your Your principal moral obligation as a principal moral obligation as a

leader is to develop the skillset, leader is to develop the skillset, “soft” and “hard,” of every one “soft” and “hard,” of every one

of the people in your charge of the people in your charge (temporary as well as semi-(temporary as well as semi-permanent) to the maximum permanent) to the maximum

extent of your abilities. The good extent of your abilities. The good news: news: This is also theThis is also the

#1 mid- to lon#1 mid- to longg-term-term … … p profit maximization straterofit maximization strategy!gy!

Context:Context:Let’s Not Get Let’s Not Get TooToo Carried Carried

AwayAway

Life BEFORE Clay Christensen Invented “Disruption”:Life BEFORE Clay Christensen Invented “Disruption”: My mom (1909-2005) My mom (1909-2005) lived through the advent of mass market cars, commercial radio, lived through the advent of mass market cars, commercial radio, routine long-distance phone calls, portable phones, cell phones, routine long-distance phone calls, portable phones, cell phones,

satellites, satellite phone call transmission, movies with sound, color satellites, satellite phone call transmission, movies with sound, color movies, TV, TV dinners, microwave ovens, commercial use of aircraft, movies, TV, TV dinners, microwave ovens, commercial use of aircraft, jets, extensive electrification, the Great Depression, Ty Cobb, Babe jets, extensive electrification, the Great Depression, Ty Cobb, Babe

Ruth, Walter Johnson, Bob Feller, Barry Bonds, Derek Jeter, the West Ruth, Walter Johnson, Bob Feller, Barry Bonds, Derek Jeter, the West Coast Offense, the Civil Rights Movement, an African-American Coast Offense, the Civil Rights Movement, an African-American

Chairman of the Joint Chiefs of Staff/Secretary of State, Gay Pride, Chairman of the Joint Chiefs of Staff/Secretary of State, Gay Pride, women win the right to vote, Gandhi, Churchill, WWI, WWII, the birth women win the right to vote, Gandhi, Churchill, WWI, WWII, the birth of the U.S. Navy Seabees, relativity, the A-bomb, the EEC, the EU, the of the U.S. Navy Seabees, relativity, the A-bomb, the EEC, the EU, the Euro, the Korean War, the Vietnam War, the Iraq War, 9/11, the Cold Euro, the Korean War, the Vietnam War, the Iraq War, 9/11, the Cold

War, the disintegration of the USSR, the resurgence of China, the War, the disintegration of the USSR, the resurgence of China, the death and resurrection of Germany and Japan, Oklahoma & New death and resurrection of Germany and Japan, Oklahoma & New

Mexico & Arizona & Hawaii & Alaska become states, William Howard Mexico & Arizona & Hawaii & Alaska become states, William Howard Taft* (*just missed Teddy Roosevelt), FDR, Ronald Reagan, Father Taft* (*just missed Teddy Roosevelt), FDR, Ronald Reagan, Father

Coughlin, Jim and Tammy Bakker, mainframe computers, PCs, Coughlin, Jim and Tammy Bakker, mainframe computers, PCs, hyperlinks, the iPod, DARPA-net, the Internet, air conditioning, weed hyperlinks, the iPod, DARPA-net, the Internet, air conditioning, weed whackers, Mickey Mouse, Frank Sinatra, Elvis, the Beatles, Madonna, whackers, Mickey Mouse, Frank Sinatra, Elvis, the Beatles, Madonna, the Model T, the Cadillac Escalade, Nancy Drew, the first four Harry the Model T, the Cadillac Escalade, Nancy Drew, the first four Harry

Potter books, antibiotics, MRIs, polio vaccine, genetic mapping,Potter books, antibiotics, MRIs, polio vaccine, genetic mapping, WWII WWII rockets, space flight, man-to-the-moon, more or less permanent space rockets, space flight, man-to-the-moon, more or less permanent space

station.”** station.”** (**But, to be sure, not long enough to see the Cubs win another World Series or to take a selfie.)(**But, to be sure, not long enough to see the Cubs win another World Series or to take a selfie.)

And a Little And a Little (More) Not So (More) Not So

Bad NewsBad News

““Taking the longer view Taking the longer view [espoused by declinists][espoused by declinists] , one , one would expect that the American share of the global would expect that the American share of the global economy had been shrinking as the various upstarts economy had been shrinking as the various upstarts

kept rising.kept rising. Over the past 40 years, Over the past 40 years, though, the U.S. share though, the U.S. share [of the global [of the global

economy]economy] has remained remarkably has remained remarkably constant. It was 27 percent constant. It was 27 percent in 1970 and 25.4 percent in in 1970 and 25.4 percent in 2012.2012. So somebody else must be contracting So somebody else must be contracting

faster than the United States to make room for the faster than the United States to make room for the expanding rest. The losers in the great GDP race are expanding rest. The losers in the great GDP race are the two great risers of the past, Europe and Japan.”the two great risers of the past, Europe and Japan.”

—Josef Joffe, publisher-editor of Die Zeit, in —Josef Joffe, publisher-editor of Die Zeit, in The Myth of America’s Decline: The Myth of America’s Decline: Politics, Economics, and a Half Century of False PropheciesPolitics, Economics, and a Half Century of False Prophecies

INNOVATION:INNOVATION:FIVE TACTICSFIVE TACTICS

11/49*/49**No kidding … the ONLY thing I’ve learned “for sure” in the 49 *No kidding … the ONLY thing I’ve learned “for sure” in the 49

years I’ve been involved in management in one way or another.years I’ve been involved in management in one way or another.

Lesson49:Lesson49: WTTMSWTTMS

WW

WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTSTUFFSTUFFWINSWINS

Excellence82: The Bedrock “EiExcellence82: The Bedrock “Eigght Basics”ht Basics”

1. 1. A Bias for A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. 3. AutonomAutonomy and y 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 PropertiesProperties

““WE HAVE A WE HAVE A ‘STRATEGIC ‘STRATEGIC PLAN.’ IT’S PLAN.’ IT’S

CALLED CALLED DOING DOING THINGSTHINGS.”.” — Herb Kelleher

READY.READY.FIRE!FIRE!AIM.AIM.

H. Ross Perot (vs H. Ross Perot (vs “Aim! Aim! Aim!”“Aim! Aim! Aim!” /EDS vs GM/1985) /EDS vs GM/1985)

““Burt Rutan wasn’t a fighter jock; he was an engineer who Burt Rutan wasn’t a fighter jock; he was an engineer who had been asked to figure out why the F-4 Phantom was had been asked to figure out why the F-4 Phantom was flying pilots into the ground in Vietnam. While his fellow flying pilots into the ground in Vietnam. While his fellow engineers attacked such tasks with calculators, Rutan engineers attacked such tasks with calculators, Rutan

insisted on considering the problem in the air. A near-fatal insisted on considering the problem in the air. A near-fatal flight not only led to a critical F-4 modification, it also flight not only led to a critical F-4 modification, it also

confirmed for Rutan a notion he had held ever since he had confirmed for Rutan a notion he had held ever since he had

built model airplanes as a child.built model airplanes as a child. The waThe wayy to to make a better aircraft wasn’t to make a better aircraft wasn’t to sit around sit around pperfectinerfectingg a design, it a design, it

was to was to gget somethinet somethingg u upp in the air in the air and see what haand see what happppensens, , then trthen tryy to to

fix whatever fix whatever ggoes wronoes wrong.”g.”

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

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

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

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

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

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

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

““MOVE MOVE FAST. FAST. BREAK BREAK

THINGS.”THINGS.” ——FacebookFacebook

I want to be a Photographer.I want to be a Photographer.Take a ton of photos. Start a photo blog. Take a ton of photos. Start a photo blog.

Organize an art show for your best work. Make stuff.Organize an art show for your best work. Make stuff.

I want to be a Writer.I want to be a Writer.Write a ton of pieces. Establish a voice on social media. Write a ton of pieces. Establish a voice on social media. Start a blog. Write guest posts for friends. Make stuff.Start a blog. Write guest posts for friends. Make stuff.

Talk is cheap.Talk is cheap.Just make stuff.Just make stuff.

——Reid Shilperoot, brand strategist, on the one piece ofReid Shilperoot, brand strategist, on the one piece of advice that has helped him overcome creative blocksadvice that has helped him overcome creative blocks

““EXPERIMENT EXPERIMENT FEARLESSLY”FEARLESSLY”

Source: BusinessWeek, “Type A Organization Strategies: How to Hit a Moving Target”—Tactic #1Tactic #1

“RELENTLESS TRIAL“RELENTLESS TRIAL AND ERROR” AND ERROR”

Source: Source: Wall Street JournalWall Street Journal, cornerstone of effective approach to “rebalancing” company, cornerstone of effective approach to “rebalancing” company portfolios in the face of changing and uncertain global economic conditions (11.08.10) portfolios in the face of changing and uncertain global economic conditions (11.08.10)

““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 are ready By the time our rivals are ready

with wires and screws, we are on version 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 BloombergBloomberg by Bloomberg

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

““FAIL.FAIL. FORWARD. FORWARD.

FAST.”FAST.”High Tech CEO, Pennsylvania

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

David Kelley/IDEO

““No matter. No matter. Try again. Fail Try again. Fail

again. Fail again. Fail better.”better.”

—Samuel Beckett—Samuel Beckett

““REWARDREWARD excellent failures. PUNISHPUNISH mediocre

successes.”—Phil Daniels, Sydney exec

““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 them——because 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)

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

inefficiency, fast , fast and furious and and furious and

numerous failures.”numerous failures.”—Kevin Kelly

““The essenceThe essence of capitalism is of capitalism is

encouraging failure, encouraging failure, not rewarding not rewarding

success.”success.” —Nassim Nicholas Taleb/Reason TV/0124.13—Nassim Nicholas Taleb/Reason TV/0124.13

Ideas Economy: Ideas Economy: CAN YOUR CAN YOUR

BUSINESS FAIL BUSINESS FAIL FAST ENOUGH TO FAST ENOUGH TO

SUCCEED?SUCCEED?Source: ad for Economist Conference/0328.13/Berkeley CA (caps are Source: ad for Economist Conference/0328.13/Berkeley CA (caps are EconomistEconomist))

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

you must you must

‘celebrate’‘celebrate’ failure.”failure.” —Richard Farson (—Richard Farson (Whoever Makes the Whoever Makes the

Most Mistakes WinsMost Mistakes Wins))

““YOU MISS YOU MISS

100100%% OF OF

THE SHOTS YOU THE SHOTS YOU NEVER TAKE.”NEVER TAKE.”

—Wayne—Wayne GretzkyGretzky

WTTMSWTTMSASTMSUTFASTMSUTFWW

WTTMSWTTMSASTMSUTFASTMSUTFWW

WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTSTUFFSTUFFANDANDSCREWS SCREWS THE THE MOST MOST STUFF STUFF UPUP THETHEFASTESTFASTESTWINSWINS

““All life is an All life is an experiment. The experiment. The

more experiments more experiments you make, the you make, the

better.”better.” —Ralph Waldo Emerson—Ralph Waldo Emerson

Act fast.Act fast.Fail fast.Fail fast.

Correct fast.Correct fast.Make bigger and more Make bigger and more interesting mistakes.interesting mistakes.

All of life is an All of life is an experiment.experiment.

We Are We Are WhatWhat

We Eat We Eat

We Are WhatWe Are What We Eat We Eat

We Are Who We We Are Who We Hang Out WithHang Out With

Diversity:Diversity: “It is hardly possible to “It is hardly possible to overrate the value of placing overrate the value of placing human beings in contact with human beings in contact with persons dis-similar to themselves, persons dis-similar to themselves, and with modes of thought and and with modes of thought and action unlike those with which action unlike those with which they are familiar. Such they are familiar. Such communication has always been, communication has always been, and is peculiarly in the present and is peculiarly in the present age, one of the primary sources of age, one of the primary sources of progress.”progress.” —John Stuart Mill—John Stuart Mill

““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

The “Hang Out Axiom”:The “Hang Out Axiom”: “HANG “HANG OUT WITH ‘COOL’ AND OUT WITH ‘COOL’ AND THOU SHALT BECOME THOU SHALT BECOME MORE COOL. HANG MORE COOL. HANG

OUT WITH ‘DULL’ AND OUT WITH ‘DULL’ AND THOU SHALT BECOME THOU SHALT BECOME MORE DULL. MORE DULL. PERIODPERIOD.”.”

The “We are what we eat”/ The “We are what we eat”/ “We are who we hang out with”“We are who we hang out with”

Axiom: Axiom: At its core, At its core, evereveryy (!!!) (!!!)

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

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

Measure/Manage: Portfolio Measure/Manage: Portfolio “Strangeness”/“Quality”“Strangeness”/“Quality”

1. Customers1. Customers2. Vendors2. Vendors3. Out-sourcing Partners3. Out-sourcing Partners4. Acquisitions4. Acquisitions5. Purposeful “Theft”5. Purposeful “Theft”6. Diversity/“d”iversity6. Diversity/“d”iversity7. Diversity/Crowd-sourcing7. Diversity/Crowd-sourcing8.8. Diversity/Weird Diversity/Weird 9.9. Diversity/CuriosityDiversity/Curiosity10. Benchmarks10. Benchmarks11. Calendar11. Calendar12. MBWA12. MBWA13. Lunch/General13. Lunch/General14. Lunch/Other functions14. Lunch/Other functions15. Location/Internal15. Location/Internal16. Location/HQ16. Location/HQ17. Top team17. Top team18. Board18. Board

““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

““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

Ouch!Ouch!

“The Bottleneck …The Bottleneck …

“The Bottleneck is at the …The Bottleneck is at the … “Where are you likely to find people “Where are you likely to find people

with the with the least diversitleast diversityy of ex of expperienceerience, , the the larlarggest investment in the est investment in the ppastast,,

and the g and the greatest reverence for reatest reverence for industrindustryy do doggmama … …

Top of the Top of the Bottle”Bottle”

— Gary Hamel/— Gary Hamel/Harvard Business ReviewHarvard Business Review

Diversity:Diversity: Hang out with cool and thou Hang out with cool and thou shalt become more cool. Hang out with shalt become more cool. Hang out with dull and thou shalt become more dull.dull and thou shalt become more dull.

Diversity:Diversity: Your “hang out with” Your “hang out with” “portfolio” can/should be as carefully “portfolio” can/should be as carefully concocted/ managed/ measured as your concocted/ managed/ measured as your strategic plan—it strategic plan—it ISIS your de facto your de facto strategic plan!strategic plan!

Diversity:Diversity: Every relationship-partnership Every relationship-partnership decision (employee/ decision (employee/ vendor/customer/etc.) is a strategic vendor/customer/etc.) is a strategic decision: “Innovate, ‘Yes’ or ‘No.’” decision: “Innovate, ‘Yes’ or ‘No.’”

XFX =XFX =

#1#1

XFX = XFX = #1#1**

*Cross-Functional *Cross-Functional eXcellence eXcellence

NEVER NEVER WASTE A WASTE A LUNCH!LUNCH!

% XF % XF

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

evaluation! evaluation!

XFX:XFX: SOCIALSOCIAL ACCELERATORS …ACCELERATORS …

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

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

through thethrough the

develodeveloppmentment ofof friendshifriendshippss.”.”

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

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

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

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

““The capacity to develop close and The capacity to develop close and enduring relationships is the mark enduring relationships is the mark of a leader. of a leader. UnfortunatelUnfortunatelyy, man, manyy

leaders of major comleaders of major comppanies believe anies believe their their jjob is to create the strateob is to create the strategy,gy,

ororgganization structure and anization structure and ororgganizational anizational pprocessesrocesses——then then

thetheyy just dele just deleggate the work to be ate the work to be done, remainindone, remainingg aloof from the aloof from the

people doinpeople doingg the work the work.”.” —Bill George,—Bill George, Authentic LeadershipAuthentic Leadership

InnovateInnovate or Die: or Die:

Measure It!Measure It!

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

Strategic Initiatives/Key Projects score 88 or or higherhigher (out of 10) on a

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

changer”changer” Scale? (At least 3???)

Innovation IndexInnovation Index:: Move Move

every project (definition) every project (definition) 22 notches up on the notches up on the

“WOW-ification “WOW-ification Scale”Scale” … … THIS THIS

WEEKWEEK. .

InnovateInnovate or Die: or Die:

Ubiquitous!Ubiquitous!

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.*

10 10 VALUE-ADDED VALUE-ADDED STRATEGIESSTRATEGIES

TGRs:TGRs:8/808/80

CustomersCustomers describing their service describing their service

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

the service experience they provide the service experience they provide asas

“ “superior”: superior”: 8080%%——Source: Bain & Company survey of 362 companies, reported in John DiJulius,Source: Bain & Company survey of 362 companies, reported in John DiJulius,

What's the Secret to Providing a World-class Customer Experience?What's the Secret to Providing a World-class Customer Experience?

It It BEGINSBEGINS (and (and ENDSENDS) )

in the …in the …

PARKINGPARKING LOTLOT**

*Disney*Disney

<TG<TGWandand … …

>TG>TGRR(Things Gone (Things Gone WRONG-Things Gone -Things Gone RIGHTRIGHT))

““ExExpperienceseriences are as distinct are as distinct from servicesfrom services

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

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

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

TGRTGRSS..MANAGEMANAGE ’EM. ’EM.

MEASUREMEASURE ’EM. ’EM.***I use “manage-measure” a lot. Translation: These are*I use “manage-measure” a lot. Translation: These are

not “soft” ideas; they are exceedingly important things not “soft” ideas; they are exceedingly important things that can be managed—AND measured. that can be managed—AND measured.

TGRs:TGRs: K = R = K = R =

PP

““Courtesies of a small and trivial Courtesies of a small and trivial character are the ones which character are the ones which

strike deepest in the grateful and strike deepest in the grateful and appreciating heart.”appreciating heart.” —Henry Clay

“The deepest principle in human “The deepest principle in human nature is the nature is the cravincraving* to be g* to be

appreciated.”appreciated.” —William James—William James

**“Craving,” not “wish” or “desire” or “longing”/Dale Carnegie, “Craving,” not “wish” or “desire” or “longing”/Dale Carnegie, How to WinHow to Win Friends and Influence People Friends and Influence People (“The BIG Secret of Dealing With People”)(“The BIG Secret of Dealing With People”)

“The deepest urge in human nature is “The deepest urge in human nature is the desire to be important.”the desire to be important.” —John Dewey—John Dewey

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

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

““When dealing with people, When dealing with people, remember you are not remember you are not

dealing with creatures of dealing with creatures of logic, but with creatures of logic, but with creatures of emotion, creatures bristling emotion, creatures bristling

with prejudice and with prejudice and motivated by pride and motivated by pride and

vanity.”vanity.” —Dale Carnegie —Dale Carnegie

(from (from Timeless WisdomTimeless Wisdom, compiled by Gary Fenchuk) , compiled by Gary Fenchuk)

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 health atisfaction referred to patient’s health outcomeoutcome..

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

EmploEmployyee Satisfactionee Satisfaction

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

“There is a misconception that supportive interactions There is a misconception that supportive interactions require more staff or more time and are therefore more require more staff or more time and are therefore more costly. Although labor costs are a substantial part of any costly. Although labor costs are a substantial part of any hospital budget, the interactions themselves add nothing hospital budget, the interactions themselves add nothing

to the budget. to the budget.

KINDNESS IS KINDNESS IS FREEFREE.. Listening to patients or Listening to patients or

answering their questions costs nothing. It can be argued answering their questions costs nothing. It can be argued that negative interactions—alienating patients, being that negative interactions—alienating patients, being

non-responsive to their needs or limiting their sense of non-responsive to their needs or limiting their sense of control—can be very costly. … Angry, frustrated or control—can be very costly. … Angry, frustrated or

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

way.”way.”

—Putting Patients First—Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel, Susan Frampton, Laura Gilpin, Patrick Charmel (Griffin Hospital/Derby CT; Planetree Alliance) (Griffin Hospital/Derby CT; Planetree Alliance)

K = R = K = R = PP

Kindness = Kindness = Repeat Business =Repeat Business =

Profit.Profit.

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

Kindness:Kindness:

Kind.Kind.Thoughtful.Thoughtful.Decent. Decent. Caring. Caring. Attentive.Attentive.Engaged.Engaged.Listens well/obsessively.Listens well/obsessively.Appreciative.Appreciative.Open.Open.Visible.Visible.Honest.Honest.Responsive.Responsive.On time all the time.On time all the time.Apologizes with dispatch for screw-ups.Apologizes with dispatch for screw-ups.““Over”-reacts to screw-ups of any magnitude.Over”-reacts to screw-ups of any magnitude.““Professional” in all dealings.Professional” in all dealings.Optimistic.Optimistic.Understands that kindness to staff breeds kindness to Understands that kindness to staff breeds kindness to others/outsiders.others/outsiders.Applies throughout the “supply chain.”Applies throughout the “supply chain.”Applies to 100% of customer’s staff.Applies to 100% of customer’s staff.Explicit part of values statement.Explicit part of values statement.Basis for evaluation of 100% of our staff.Basis for evaluation of 100% of our staff.

Kindness … Kindness … WORKSWORKS!!

Kindness … Kindness … PAYSPAYS!!

The Manager’s The Manager’s Book of Book of DecenciesDecencies: :

How Small How Small Gestures Build Gestures Build

Great Companies.Great Companies. ——

Steve Harrison, AdeccoSteve Harrison, Adecco

TGRs:TGRs: 3 Minutes3 Minutes

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

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

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

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

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

Relationships (of all varieties): THERE ONCE THERE ONCE WAS A TIME WHEN A WAS A TIME WHEN A

THREETHREE--MINUTEMINUTE PHONEPHONE CALLCALL WOULD WOULD

HAVE AVOIDED SETTING OFF THE HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RESULTED IN A COMPLETE

RUPTURE.RUPTURE.**

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

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

PROBLEM. THEPROBLEM. THE

RESPONSERESPONSE TO THE TO THE PROBLEM INVARIABLY PROBLEM INVARIABLY ENDS UP BEING THE ENDS UP BEING THE

REAL PROBLEM.REAL PROBLEM.(OPPORTUNITY)(OPPORTUNITY).

TGRs:TGRs:LBTs*LBTs*

*Little BIG Things*Little BIG Things

LITTLE =LITTLE =

BIGBIG

Big carts =Big carts =

1.5X1.5XSource: WalmartSource: Walmart

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

$B$BSource: PepsiCoSource: PepsiCo

2X:2X: “When Friedman“When Friedman

slisligghtlhtly y curvedcurved the right angle of the right angle of

an entrance corridor to one property, an entrance corridor to one property, he was ‘amazed at the magnitude of he was ‘amazed at the magnitude of

change in pedestrians’ behavior’—the change in pedestrians’ behavior’—the percentage who entered increased percentage who entered increased

from from oneone--thirdthird to nearly to nearly twotwo--thirdsthirds.”.”

——Natasha Dow Schull, Natasha Dow Schull, Addiction By Design: Machine Gambling in Las VegasAddiction By Design: Machine Gambling in Las Vegas

SEE SEE GREENGREEN = RECOVER = RECOVER 20% 20% FASTERFASTER

(1)(1) AMENABLE TO RAPID AMENABLE TO RAPID EXPERIMENTATION/FAILURE “FREE” EXPERIMENTATION/FAILURE “FREE” (NO BAD “PR,” NO $$)(NO BAD “PR,” NO $$)(2)(2) QUICK TO IMPLEMENT/QUICK TO QUICK TO IMPLEMENT/QUICK TO ROLL OUTROLL OUT(3)(3) INEXPENSIVE TO IMPLEMENT/ INEXPENSIVE TO IMPLEMENT/ ROLL OUTROLL OUT(4)(4) HUGE MULTIPLIER HUGE MULTIPLIER(5)(5) AN “ATTITUDE” AN “ATTITUDE”(6) (6) DOES NOT BY AND LARGE REQUIRE ADOES NOT BY AND LARGE REQUIRE A “ “POWER POSITION” FROM WHICHPOWER POSITION” FROM WHICH TO LAUNCH EXPERIMENTS.TO LAUNCH EXPERIMENTS.

Social Business/ Social Business/ Customer Customer

EngagementEngagement

““Customer engagement is Customer engagement is moving from relatively isolated moving from relatively isolated market transactions to deeply market transactions to deeply connected and sustained social connected and sustained social relationships. relationships. This basic chanThis basic changge e in how we do business will make in how we do business will make

an iman imppact on act on jjust about ust about evereveryythinthingg we do we do.”.”

Social Business By Design: Transformative Social Media StrategiesSocial Business By Design: Transformative Social Media Strategies For the Connected CompanyFor the Connected Company —Dion Hinchcliffe & Peter Kim —Dion Hinchcliffe & Peter Kim

Social Survival Manifesto*Social Survival Manifesto*1.1. Hiding is not an option.Hiding is not an option.2.2. Face it, you are outnumbered. (“level playing field, arrogance Face it, you are outnumbered. (“level playing field, arrogance

denied”)denied”)3.3. You no longer control the message.You no longer control the message.4.4. Try acting like … a human being.Try acting like … a human being.5.5. Learn to listen, or else. (“REALLY listening to others a must”)Learn to listen, or else. (“REALLY listening to others a must”)6.6. Admit that you don’t have all the answers.Admit that you don’t have all the answers.7.7. Speak plainly and seek to inform.Speak plainly and seek to inform.

8.8. Quit being a monolith. Quit being a monolith. (“Your employees, speaking (“Your employees, speaking online as individuals, are a crucial resource … online as individuals, are a crucial resource … can be managed through frameworks that can be managed through frameworks that ENCOURAGE participation”)ENCOURAGE participation”)

9.9. Try being less evil.Try being less evil.

10.10. Pay it forward, now. Pay it forward, now. (“Internet culture largely built (“Internet culture largely built on the principal of the Gift Economy … give on the principal of the Gift Economy … give value away to your online communities”)value away to your online communities”)

*Tom Liacas; socialdisruptions.com*Tom Liacas; socialdisruptions.com

Teva CanadaTeva Canada

SharePoint:SharePoint: Joint problem Joint problem solving/collaboration within solving/collaboration within supply chain orgsupply chain org

Strategy-Nets:Strategy-Nets: Supply Supply chain plus sales, marketing, chain plus sales, marketing, customer servicecustomer service

Moxie:Moxie: blogs, wikis, joint doc blogs, wikis, joint doc editing, etc.editing, etc.Source: Dion Hinchcliffe & Peter Kim, Social Business By DesignSource: Dion Hinchcliffe & Peter Kim, Social Business By Design

Biz 2014: Get Aboard the “S-Train”Biz 2014: Get Aboard the “S-Train”

SMSM//Social Media.Social Media.

SXSX//Social eXecutives.Social eXecutives.

SESE//Social Employees.Social Employees.

SOSO//Social Social Organization.Organization.

SBSB//Social Business.Social Business.

Seven Characteristics of the Social EmployeeSeven Characteristics of the Social Employee

1. 1. Engaged Engaged 2. 2. Expects Integration of the Expects Integration of the

Personal and ProfessionalPersonal and Professional3. 3. Buys Into the Brand’s StoryBuys Into the Brand’s Story4. 4. Born CollaboratorBorn Collaborator5. 5. ListensListens6. 6. Customer-CentricCustomer-Centric7. 7. Empowered Change AgentEmpowered Change Agent

Source: Cheryl Burgess & Mark Burgess, Source: Cheryl Burgess & Mark Burgess, The Social EmployeeThe Social Employee

Marbles, a Ball and Social Employees ay IBM Marbles, a Ball and Social Employees ay IBM

““Picture a ball and a bag of marbles side by side. The two Picture a ball and a bag of marbles side by side. The two items might have the same volume—that is, if you dropped items might have the same volume—that is, if you dropped them into a bucket, they would displace the same amount them into a bucket, they would displace the same amount of water. The difference, however, lies in the surface area, of water. The difference, however, lies in the surface area,

Because a baBecause a bagg of marbles is of marbles is comcompprised of several individual rised of several individual

ppieces, the combined surface area of ieces, the combined surface area of all the marbles far outstriall the marbles far outstripps the s the

surface area of a sinsurface area of a singgle ballle ball.. The expanded The expanded surface area represents a social brand’s increased surface area represents a social brand’s increased

diversity. These surfaces connect and interact with each diversity. These surfaces connect and interact with each other in unique ways, offering customers and employees other in unique ways, offering customers and employees alike a variety of paths toward a myriad of solutions. If alike a variety of paths toward a myriad of solutions. If

none of the paths prove to be suitable, social employees none of the paths prove to be suitable, social employees can carve out new paths on their own.”can carve out new paths on their own.” —Ethan McCarty, Director of —Ethan McCarty, Director of

Enterprise Social Strategy, IBM (from Cheryl Burgess & Mark Burgess, Enterprise Social Strategy, IBM (from Cheryl Burgess & Mark Burgess, The Social The Social EmployeeEmployee

FormalFormal IBM Social Business IBM Social Business

Policy:Policy: Via a “wiki Via a “wiki experiment;” IBM experiment;” IBM employees create employees create crowd-sourced policy.*crowd-sourced policy.*

*Subsequently “Digital IBMer Hub”; “Connections” social*Subsequently “Digital IBMer Hub”; “Connections” social

media platform, etc. etc.media platform, etc. etc. Source: IBM case, in Cheryl Burgess & Mark Burgess, Source: IBM case, in Cheryl Burgess & Mark Burgess, The Social EmployeeThe Social Employee

IBM Social Business Markers/2005-2012IBM Social Business Markers/2005-2012

*433,000 employees on IBM *433,000 employees on IBM ConnectionConnection*26,000 individual blogs*26,000 individual blogs*91,000 communities*91,000 communities*62,000 wikis*62,000 wikis*50,000,000 IMs/day*50,000,000 IMs/day*200,000 employees on Facebook*200,000 employees on Facebook*295, 000 employees/800,000 *295, 000 employees/800,000 followersfollowers of the brandof the brand*35,000 on Twitter*35,000 on Twitter

Source: IBM case, in Cheryl Burgess & Mark Burgess, Source: IBM case, in Cheryl Burgess & Mark Burgess, The Social EmployeeThe Social Employee

SB/SESB/SE > SM*> SM*

*“Social *“Social BUSINESSBUSINESS”/“Social ”/“Social EMPLOYEEEMPLOYEE”/“Social Media””/“Social Media”

Social Business/Social Business/New Ball GameNew Ball Game

““We’re moving toward an age of nearly perfect We’re moving toward an age of nearly perfect information. Review sites, shopping apps on information. Review sites, shopping apps on

smartphones, an extended network of acquaintances smartphones, an extended network of acquaintances available through social media, and unprecedented available through social media, and unprecedented access to experts mean that consumers operate in a access to experts mean that consumers operate in a radically different, socially interactive information radically different, socially interactive information environment.* … Consumers tend to make better environment.* … Consumers tend to make better

decisions and become less susceptible to context or decisions and become less susceptible to context or framing manipulations. For businesses, it means framing manipulations. For businesses, it means

marketing is changing forever.”marketing is changing forever.”

—Itamar Simonson and Emanuel Rosen, —Itamar Simonson and Emanuel Rosen, Absolute Absolute Value:Value: What Really Influences Customers in the What Really Influences Customers in the

Age of (Nearly) Perfect InformationAge of (Nearly) Perfect Information

*Google:*Google: ZMOTZMOT (ZERO Moment Of Truth)(ZERO Moment Of Truth)

ZMOTZMOT:: ZERO Moment Of Truth/Google ZERO Moment Of Truth/Google**

““You know what a ‘moment of truth’ is. It’s when a prospective You know what a ‘moment of truth’ is. It’s when a prospective customer decides either to take the next step in the purchase customer decides either to take the next step in the purchase funnel, or to exit and seek other options. … But what is a ‘zero funnel, or to exit and seek other options. … But what is a ‘zero moment of truth’? Many behaviors can serve as a zero moment moment of truth’? Many behaviors can serve as a zero moment of truth, but what binds them together is that the purchase is of truth, but what binds them together is that the purchase is

being researched and considered before the prospect even being researched and considered before the prospect even enters the classic sales funnel … In its research, Google found enters the classic sales funnel … In its research, Google found

that that 84%84% of shoppers said the new mental of shoppers said the new mental

model, ZMOT, shapes their decisions. …” model, ZMOT, shapes their decisions. …”

——Jay Baer, Jay Baer, Youtility: Why Smart Marketing Is About Help, Not HypeYoutility: Why Smart Marketing Is About Help, Not Hype

*See www.zeromomentoftruth.com for ZMOT in book-length format*See www.zeromomentoftruth.com for ZMOT in book-length format

““Amy HowellAmy Howell [social marketer extraordinaire, [social marketer extraordinaire,

founder of Howell Marketing]founder of Howell Marketing] ignites ignites epidemics. In a good way, epidemics. In a good way,

of course. Epidemics of of course. Epidemics of excitement. Epidemics of excitement. Epidemics of

business connections. business connections. Epidemics of influence.”Epidemics of influence.”

——Mark Schaeffer,Mark Schaeffer, ROI/Return on Influence: The Revolutionary ROI/Return on Influence: The Revolutionary Power of Klout, Social Scoring, and Influence MarketingPower of Klout, Social Scoring, and Influence Marketing

““I would rather enI would rather enggaagge in a e in a Twitter conversation with a sinTwitter conversation with a singgle le customer I than see our comcustomer I than see our comppananyy attemattemppt to attract the attention of t to attract the attention of millions in a coveted Sumillions in a coveted Supper Bowl er Bowl commercialcommercial.. Why? Because having people discuss your Why? Because having people discuss your brand directly with you, actually connecting one-to-one, is far more brand directly with you, actually connecting one-to-one, is far more

valuable—not to mention far cheaper!. …valuable—not to mention far cheaper!. …““Consumers want to discuss what they like, the companies they Consumers want to discuss what they like, the companies they

support, and the organizations and leaders they resent. They want a support, and the organizations and leaders they resent. They want a community. They want to be heard. …community. They want to be heard. …

““[I]f we engage employees, customers, and prospective customers in [I]f we engage employees, customers, and prospective customers in meaningful dialogue about their lives, challenges, interests, and meaningful dialogue about their lives, challenges, interests, and

concerns, we can build a community of trust, loyalty, and—possibly concerns, we can build a community of trust, loyalty, and—possibly over time—help them become advocates and champions for the over time—help them become advocates and champions for the

brand.”brand.”

——Peter Aceto, CEO, Tangerine (from the Foreword to Peter Aceto, CEO, Tangerine (from the Foreword to A World Gone Social: How A World Gone Social: How Companies Must Adapt to SurviveCompanies Must Adapt to Survive, by Ted Coine & Mark Babbit), by Ted Coine & Mark Babbit)

DESIGNDESIGN!!

Design Design RulesRules!!

APPLEAPPLE market cap market cap > Exxon Mobil* > Exxon Mobil*

*August 2011*August 2011

““Design is Design is

treated like treated like a relia religgionion at at

BMW.”BMW.” —Fortune—Fortune

““With its carefully conceived mix of colors and textures, With its carefully conceived mix of colors and textures,

aromas and music,aromas and music, STARBUCKSSTARBUCKS is more is more indicative of our era than the iMac. It is to the indicative of our era than the iMac. It is to the AAggee ofof

AestheticsAesthetics what McDonald’s was to the what McDonald’s was to the AAggee ofof ConvenienceConvenience or Ford was to the Age of Mass Production— or Ford was to the Age of Mass Production—

the touchstone success story, the exemplar of … the the touchstone success story, the exemplar of … the

aesthetic imperative. …aesthetic imperative. … ‘Every Starbucks ‘Every Starbucks store is carefully designed to store is carefully designed to

enhance the quality of everything enhance the quality of everything the customers see, touch, hear, the customers see, touch, hear,

smell or taste,’smell or taste,’ writes CEO Howard Schultz.”writes CEO Howard Schultz.” —Virginia Postrel, —Virginia Postrel, The Substance of Style: How the Rise of AestheticThe Substance of Style: How the Rise of Aesthetic

Value Is Remaking Commerce, Culture and ConsciousnessValue Is Remaking Commerce, Culture and Consciousness

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

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

the meaning of design.the meaning of design. DESIGNDESIGN IS THE IS THE

FUNDAMENTALFUNDAMENTAL SOULSOUL OF A MAN-MADE OF A MAN-MADE

CREATION.”CREATION.” —Steve Jobs—Steve Jobs

Hypothesis:Hypothesis: DESIGNDESIGN is the is the pprincirincippalal

differencedifference

between between lovelove

and and hate!*hate!**Not “like” and “dislike”

““Only one company Only one company can be the cheapest. can be the cheapest. All others must use All others must use design.”design.” —Rodney Fitch, Fitch & Co.—Rodney Fitch, Fitch & Co.

Source: Source: InsightsInsights, definitions of design, the Design Council (UK), definitions of design, the Design Council (UK)

Ann Landers as management guru/Ann Landers as management guru/three criteria for products, projects, a three criteria for products, projects, a communication, etc.: communication, etc.:

Good.Good. True.True. Helpful.Helpful.

CCDDOO***Chief *Chief DDesignesign Officer Officer

““Businesspeople don’t Businesspeople don’t need to ‘understand need to ‘understand

designers better.’ designers better.’ Businesspeople need to Businesspeople need to

bebe designers.” designers.”

—Roger Martin/Dean/Rotman Management School/University of Toronto—Roger Martin/Dean/Rotman Management School/University of Toronto

Design is …Design is …

* * The reception areaThe reception area* * The loo!!The loo!!* * Dialogues at the call centerDialogues at the call center* * EveryEvery electronic (or paper) form electronic (or paper) form* * EveryEvery business process “map” business process “map”* * EveryEvery email email* * EveryEvery meeting agenda/setting/etc. meeting agenda/setting/etc.* * EveryEvery square meter of every facility square meter of every facility* * EveryEvery new product proposal new product proposal* * EveryEvery manual manual* * EveryEvery customer contact customer contact* * A consideration in A consideration in everyevery promotion decision promotion decision* * The presence and ubiquity of an “Aesthetic sensibility”/The presence and ubiquity of an “Aesthetic sensibility”/ “Design mindfulness” “Design mindfulness”* * An encompassing “design review” processAn encompassing “design review” process* * Etc.Etc.* * Etc.Etc.

HHypypothesisothesis: Men : Men

CANNOTCANNOT design for women’s design for women’s

needsneeds!!??!!??

Women BUY Women BUY (Everything)(Everything)!!

““Forget CHINA, Forget CHINA, INDIA and the INDIA and the

INTERNET: Economic INTERNET: Economic Growth Is Driven by Growth Is Driven by

WOMENWOMEN.”.”

Source: Headline, Economist

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

**“Women now drive the global economy. Globally, they control about “Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could climb as high as $20 trillion in consumer spending, and that figure could climb as high as

$28 trillion$28 trillion in the next five years. in the next five years.

Their $13 trillion in total yearly earnings could reach $18 trillion in the Their $13 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 India combined—more In aggregate, women represent a growth market bigger than China and India combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer. than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer.

And yet many companies do just that—even ones that are confidant that they have a winning strategy when it 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 …”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

““Women areWomen are THETHE majority majority

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

Women as Decision Makers/Various sourcesWomen as Decision Makers/Various sources

Home Furnishings … Home Furnishings … 94%94%Vacations … Vacations … 92%92% (Adventure Travel … 70%/ $55B travel equipment)(Adventure Travel … 70%/ $55B travel equipment)

Houses … Houses … 91%91%D.I.Y. D.I.Y. (major “home projects”)(major “home projects”) … … 80%80%

Consumer Electronics … Consumer Electronics … 51%51% (66% home computers)(66% home computers)

Cars … Cars … 68%68% (influence (influence 90%90%))

AllAll consumerconsumer p purchasesurchases … … 83%83% **

Bank Account … Bank Account … 89%89%Household investment decisions … Household investment decisions … 67%67%Small business loans/biz starts … Small business loans/biz starts … 70%70%

Health Care … Health Care … 80%80%*In the USA women hold *In the USA women hold >50%>50% managerial positions including managerial positions including >50%>50% purchasing officer positions purchasing officer positions; ;

hence women also make the majority of hence women also make the majority of commercialcommercial purchasing decisions. purchasing decisions.

Women as …Women as …

Purchasing agents: Purchasing agents: 55%55%Purchasing managers: Purchasing managers: 42%42%Wholesale/retail buyers: Wholesale/retail buyers: 52%52%Employee health-benefitEmployee health-benefit

plans: plans: 60%60%Source: Martha Barletta/TrendSight Group/0517.11Source: Martha Barletta/TrendSight Group/0517.11

““The The MOST MOST SIGNIFICANT SIGNIFICANT

VARIABLEVARIABLE inin EVERYEVERY sales situation is thesales situation is the

GENDERGENDER of the buyer, and of the buyer, and more importantly, how the more importantly, how the

salesperson communicates to salesperson communicates to the buyer’s gender.”the buyer’s gender.”

—Jeffery Tobias Halter, Selling to Men, Selling to Women

The Perfect Answer

Jill and Jack buy slacks in black…

Sales/After-sales ProcessSales/After-sales Process

1.    Kick-off  – 1.    Kick-off  – WomenWomen2.    Research – 2.    Research – WomenWomen3.    Purchase  – 3.    Purchase  – Men4.    Ownership – 4.    Ownership – WomenWomen5.    Word-of-mouth – 5.    Word-of-mouth – WomenWomen

Source: Martha Barletta, Source: Martha Barletta, Marketing to Women: How to Increase Your Share of the World’s Largest MarketMarketing to Women: How to Increase Your Share of the World’s Largest Market

The The (ENORMOUS)(ENORMOUS) “Services “Services

Added” Added” OpportunityOpportunity

““Rolls-RoyceRolls-Royce now earns now earns

moremore from tasks such from tasks such as managing clients’ as managing clients’ overall procurement overall procurement

strategies and maintaining strategies and maintaining aerospace engines it sells aerospace engines it sells than it does from making than it does from making

them.”them.”——EconomistEconomist

““You are headed You are headed for commodity for commodity

hell if you don’t hell if you don’t have services.”have services.”

—Lou Gerstner, on IBM’s revolution (1997)—Lou Gerstner, on IBM’s revolution (1997)

IBIBMMtoto

IIBBMM

$50B*$50B**IB*IBMM Global Services/ Global Services/

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

UUPPSS toto

UPUPSS

““Big Brown’s New Bag: UPS Aims Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for to Be the Traffic Manager for Corporate America”Corporate America” —Headline/—Headline/BWBW

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

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

“It’s all about “It’s all about solutionssolutions. We . We work with customers on creating work with customers on creating

and running better, stronger, and running better, stronger, cheaper supply chains.”cheaper supply chains.” —Bob Stoffel, UPS —Bob Stoffel, UPS

senior exec senior exec

IDEOIDEO

Product DesignProduct DesignProduct Design Product Design

TrainingTrainingInnovation TrainingInnovation Training

WHITE-COLLAR SURVIVAL STRATEGY #1: WHITE-COLLAR SURVIVAL STRATEGY #1: Department as Smallish/Entrepreneurial Department as Smallish/Entrepreneurial

BUSINESSBUSINESS

E.g.:E.g.: Training Inc. Training Inc., a 14-, a 14-person unit* in a 50-person person unit* in a 50-person HR department in a $200M HR department in a $200M

business unit in a $3B business unit in a $3B corporation—aiming for corporation—aiming for

Excellence & WOW!Excellence & WOW!

**PSFPSF// Professional Service Firm (See my …Professional Service Firm (See my …

Professional Service Firm 50: Fifty Ways to Transform Your “Department” Professional Service Firm 50: Fifty Ways to Transform Your “Department” Into A Professional Service Firm Whose Trademarks Are Passion and Into A Professional Service Firm Whose Trademarks Are Passion and

Innovation.Innovation.))

The Professional Service Firm50: Fifty Ways to Transform The Professional Service Firm50: Fifty Ways to Transform Your “Department” into a Professional Service Firm Your “Department” into a Professional Service Firm

Whose Trademarks are Passion and Innovation! Whose Trademarks are Passion and Innovation!

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

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

(“Solve”)(“Solve”)

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

deliver deliver ‘BUSINESS ADVANTAGE’‘BUSINESS ADVANTAGE’” ” (“Culture-Strategic change”)(“Culture-Strategic change”)

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

““The business of selling is not just about matching The business of selling is not just about matching viable solutions to the customers that require them.viable solutions to the customers that require them.

It’s equally about managing It’s equally about managing the change process the the change process the

customer will need to go customer will need to go through to implement the through to implement the solution and achieve the solution and achieve the value promised by the value promised by the

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

organization.”organization.”—Jeff Thull, —Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale

AND THE AND THE WINNERS WINNERS

AREN’TAREN’T/ARE/ARE

-1/+1/2-1/+1/2

S&P 500S&P 500

+1/-1*+1/-1*

*Every …*Every … 22 weeksweeks!!Source: Richard Foster (via Rita McGrath/Source: Richard Foster (via Rita McGrath/HBRHBR/12.26.13/12.26.13

“I am often asked by I am often asked by would-be entrepreneurs would-be entrepreneurs seeking escape from life seeking escape from life within huge corporate within huge corporate structures, structures, ‘How do I build a small firm for myself?’ The answer The answer

seems obviousseems obvious … …

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

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

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

obvious: BuBuyy a ver a veryy larlarggee

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

Fail: Evolution, Extinction and Economics

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

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

NONENONE ofof

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

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

““Data drawn from the real world Data drawn from the real world attest to a fact that is beyond attest to a fact that is beyond

our control:our control: EVERYTHING IN EXISTENCE TENDS TO DETERIORATE.”

—Norberto Odebrecht, —Norberto Odebrecht, Education Through WorkEducation Through Work

AND THE AND THE WINNERS WINNERS

AREN’T/AREN’T/AREARE

The Magnificent The Magnificent Monsters of Monsters of

MotuekaMotueka(et al.)(et al.)

THETHE RED RED CARPET CARPET STORESTORE

(Joel Resnick/Flemington NJ)(Joel Resnick/Flemington NJ)

*Basement Systems Inc. *Basement Systems Inc. (Larry Janesky/Seymour CT)(Larry Janesky/Seymour CT)

**Dry Basement ScienceDry Basement Science (100,000++ copies!) (100,000++ copies!)*1990: $0; 2003: $13M; *1990: $0; 2003: $13M;

2010: 2010: $80,000,000$80,000,000

The Magicians of The Magicians of MotuekaMotueka (PLUS) (PLUS)!!

W.A. Coppins Ltd.*W.A. Coppins Ltd.*(Coppins Sea Anchors/(Coppins Sea Anchors/PSA/para sea anchors)PSA/para sea anchors)

*Textiles, 1898; thrive on *Textiles, 1898; thrive on “wicked problems”“wicked problems”——e.g., e.g., U.S. NavyU.S. Navy STLVAST (Small To Large Vehicle At Sea STLVAST (Small To Large Vehicle At Sea

Transfer); custom fabric from Transfer); custom fabric from W. WiW. Wiggggins Ltdins Ltd./Wellington ./Wellington

(specialty nylon, “Dyneema,” from (specialty nylon, “Dyneema,” from DSMDSM/Netherlands)/Netherlands)

Aizen Kobo Aizen Kobo Indigo Indigo

WorkshopWorkshop

Going “Social”: Location and Size IndependentGoing “Social”: Location and Size Independent

““Today, despite the fact that we’re jToday, despite the fact that we’re just a little swimminust a little swimmingg ppool comool comppananyy in Vir in Virgginiainia, we have the most trafficked , we have the most trafficked swimming pool website in the world. Five years ago, if swimming pool website in the world. Five years ago, if you’d asked me and my business partners what we do, you’d asked me and my business partners what we do,

the answer would have been simple, ‘We build in-ground the answer would have been simple, ‘We build in-ground

fiberglass swimming pools.’ Now we say,fiberglass swimming pools.’ Now we say, ‘We ‘We are the best teachersare the best teachers … … in the worldin the world … on the … on the subject of fiberglass swimming subject of fiberglass swimming

pools, and we also happen to build pools, and we also happen to build them.’”them.’”

——Jay Baer, YJay Baer, Youtility: Why Smart Marketing Is About Help, Not Hypeoutility: Why Smart Marketing Is About Help, Not Hype

““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

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

Independent Independent Stores in Stores in

AmericaAmerica —by George Whalin—by George Whalin

JUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OHJUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OH::

““An adventure in An adventure in ‘shoppertainment,’‘shoppertainment,’ begins in the begins in the

parking lot and goes on to parking lot and goes on to 1,6001,600 cheeses and cheeses and

1,4001,400 varieties of hot sauce—not to mention 12,000 wines varieties of hot sauce—not to mention 12,000 wines

priced from priced from

$8-$$8-$8,0008,000 a bottle; all this is brought to you a bottle; all this is brought to you

by by 4,0004,000 vendors. Customers from every corner of the vendors. Customers from every corner of the

globe.”globe.”

BRONNER’S CHRISTMAS WONDERLAND, FRANKENMUTH, MIBRONNER’S CHRISTMAS WONDERLAND, FRANKENMUTH, MI, POP , POP

5,0005,000:: 98,000-square-foot “shop” features 98,000-square-foot “shop” features 6,0006,000

Christmas ornaments, Christmas ornaments, 50,00050,000 trims, and anythingtrims, and anything else else

you can name pertaining to Christmas. …”you can name pertaining to Christmas. …”

“ ‘“ ‘Commodity’ is a Commodity’ is a state of mind. state of mind.

ANYTHINGANYTHING can be can be DRAMATICALLYDRAMATICALLY differentiated.”differentiated.”

I love …I love … Middle-Middle-sized Niche- sized Niche- Micro-niche Micro-niche

Dominators!Dominators!

"Own" a niche through EXCELLENCE"Own" a niche through EXCELLENCE!!(Writ large: Germany’s MITTELSTAND)(Writ large: Germany’s MITTELSTAND)

MITTELSTANDMITTELSTAND**

**“agile creatures darting between the “agile creatures darting between the

legs of the multinational monsters”legs of the multinational monsters” ((Bloomberg Bloomberg

BusinessWeekBusinessWeek))

Michael Raynor and Mumtaz Ahmed’: Michael Raynor and Mumtaz Ahmed’: THE THREE RULES: THE THREE RULES: How Exceptional Companies Think*How Exceptional Companies Think*::

1. 1. Better before cheaper.Better before cheaper.2. 2. Revenue before cost.Revenue before cost.3. 3. There are no other rules.There are no other rules.(*From a database of over 25,000 companies from hundreds of industries covering 45 years, they uncovered (*From a database of over 25,000 companies from hundreds of industries covering 45 years, they uncovered 344 companies that qualified as statistically “exceptional.”)344 companies that qualified as statistically “exceptional.”)

Jeff Colvin, Jeff Colvin, FortuneFortune: “The Economy Is Scary … But Smart : “The Economy Is Scary … But Smart Companies Can Dominate”:Companies Can Dominate”:

They manage for value—not for EPS.They manage for value—not for EPS.They keep developing human capital.They keep developing human capital.They get radically customer-centric.They get radically customer-centric.

LEADERSHIPLEADERSHIP

MBWAMBWA25/5025/50

2525

““I’m always stopping by our I’m always stopping by our

stores— stores— at least at least 2525

a weeka week.. I’m also in other I’m also in other

places: Home Depot, Whole Foods, Crate places: Home Depot, Whole Foods, Crate & Barrel. I try to be a sponge to pick up & Barrel. I try to be a sponge to pick up

as much as I can.”as much as I can.” —Howard Schultz—Howard Schultz

Source: Source: FortuneFortune, “Secrets of Greatness”, “Secrets of Greatness”

MBWAMBWA

MManaginganaging

BBy y

WWanderingandering

AAroundround

When Bob Waterman and I wrote When Bob Waterman and I wrote In Search of In Search of ExcellenceExcellence in 1982, business was mostly “by the in 1982, business was mostly “by the numbers”—and the Americans were struggling (to numbers”—and the Americans were struggling (to put it mildly) against hands on, tactile stuff … like put it mildly) against hands on, tactile stuff … like superior Japanese auto quality. superior Japanese auto quality.

Then, at Hewlett Packard, we were introduced to the Then, at Hewlett Packard, we were introduced to the famed “HP Way,” the centerpiece of which wasfamed “HP Way,” the centerpiece of which wasin-touch management. HP had a term for this …in-touch management. HP had a term for this …

MBWA. MBWA. (MANAGING BY (MANAGING BY WANDERING AROUND.)WANDERING AROUND.)

Bob and I fell in immediate love. Not only was the Bob and I fell in immediate love. Not only was the idea per se important and effective and cool, but it idea per se important and effective and cool, but it symbolized everything we were coming to cherish—symbolized everything we were coming to cherish—enterprises where bosses-leaders were in immediate enterprises where bosses-leaders were in immediate touch with and emotionally attached to workers, touch with and emotionally attached to workers, customers, the product. customers, the product.

The idea is as arguably more important in 2015 thanThe idea is as arguably more important in 2015 thanit was in 1982.it was in 1982.

Glib But Glib But TRUETRUE

““Decisions Decisions are made by are made by those who those who show up.”show up.”

——Aaron SorkinAaron Sorkin

5050

““Most managers spend a great deal of time thinking about what they plan to do, but relatively little time thinking about Most managers spend a great deal of time thinking about what they plan to do, but relatively little time thinking about what they plan not to do. As a result, they become so caught up … in fighting the fires of the moment that they cannot what they plan not to do. As a result, they become so caught up … in fighting the fires of the moment that they cannot

really attend to the long-term threats and risks facing the organization. So the first soft skill of leadership the hard way is really attend to the long-term threats and risks facing the organization. So the first soft skill of leadership the hard way is

to cultivate the perspective of Marcus Aurelius: avoid busyness, free up your time, stay focused on what really matters.to cultivate the perspective of Marcus Aurelius: avoid busyness, free up your time, stay focused on what really matters.

Let me put it bluntly: every leader Let me put it bluntly: every leader should routinely keep a substantial should routinely keep a substantial

portion of his or her time—I would say portion of his or her time—I would say

as much asas much as 5050 percent—percent—

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

you have the space to reflect on what you are doing, learn from experience, and recover from your inevitable mistakes. you have the space to reflect on what you are doing, learn from experience, and recover from your inevitable mistakes. Leaders without such free time end up tackling issues only when there is an immediate or visible problem. Managers’ Leaders without such free time end up tackling issues only when there is an immediate or visible problem. Managers’

typical response to my argument about free time is, ‘That’s all well and good, but there are things I have to do.’typical response to my argument about free time is, ‘That’s all well and good, but there are things I have to do.’ Yet Yet we waste so much time in unwe waste so much time in unpproductive activitroductive activity—y—it takes an it takes an

enormous effort on the enormous effort on the ppart of the leader to keeart of the leader to keepp free time for the free time for the trultrulyy im impportant thinortant thinggss.”.”

——Dov FrohmanDov Frohman (& Robert Howard (& Robert Howard), Leadership The Hard Way: Why Leadership Can’t Be Taught—), Leadership The Hard Way: Why Leadership Can’t Be Taught—

And How You Can Learn It Anyway (Chapter 5, “The Soft Skills Of Hard Leadership”)And How You Can Learn It Anyway (Chapter 5, “The Soft Skills Of Hard Leadership”)

““Rather than proudly Rather than proudly announce that your ‘door announce that your ‘door is always open,’ get out is always open,’ get out of your office and knock of your office and knock

on your employees’ on your employees’ doors instead.”doors instead.” —Jason Fried, founder, —Jason Fried, founder,

37signals37signals

““IT’SIT’S

ALWAYSALWAYS SHOWTIME.”SHOWTIME.”

—

““IT’S IT’S ALWAYSALWAYS SHOWTIME.”SHOWTIME.”

—David D’Alessandro, —David D’Alessandro, Career WarfareCareer Warfare

““You must You must bebe

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

world.”world.”Gandhi

““Nothing is Nothing is so contagious so contagious

as as enthusiasm.”enthusiasm.”

—Samuel Taylor Coleridge—Samuel Taylor Coleridge

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

enthusiasm.”enthusiasm.”

—Ben Zander, symphony conductor and management guru—Ben Zander, symphony conductor and management guru

““The leader must have The leader must have infectious optimism. … The infectious optimism. … The final test of a leader is the final test of a leader is the feeling you have when you feeling you have when you leave his presence after a leave his presence after a conference. conference. Have Have yyou a ou a

feelinfeelingg of u of uplplift and ift and confidenceconfidence?”?” —Field Marshall Bernard —Field Marshall Bernard

MontgomeryMontgomery

““A leader isA leader is a dealer in a dealer in hope.”hope.” —Napoleon—Napoleon

“A man withoutA man without a smiling face a smiling face must not openmust not open a shop.” a shop.” —Chinese Proverb

“Make it fun to work at Make it fun to work at your agency. … your agency. …

Encourage exuberance.Encourage exuberance.

Get rid of sad dogs who

spread doom.” —David Ogilvy—David Ogilvy

4, 8, 124, 8, 12

““The The 44 most most

important important wordswords in any in any

organization are …organization are …

THE FOUR MOST IMPORTANT WORDS IN ANY ORGANIZATIONTHE FOUR MOST IMPORTANT WORDS IN ANY ORGANIZATION

ARE …ARE … “WHAT “WHAT DO DO YOUYOU THINK?”THINK?”

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

TomorrowTomorrow: How : How many times will you many times will you

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

(Count ’em!!) (Practice makes (Practice makes

better!) better!)

(This is a(This is a STRATEGIC skill!)skill!)

MBWA MBWA 88: :

Change the World With EIGHT Change the World With EIGHT WordsWords

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

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

Are you a full-fledged “professional” when it

comes to helping?

Some Help With Helping …Some Help With Helping …

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

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

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

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

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

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

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

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

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

MBWA MBWA 1212: :

Change the WorldChange the World With TWELVE Words With TWELVE Words

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

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

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

***What (new thing) have you learned (in the last 24 hours)? ***What (new thing) have you learned (in the last 24 hours)? ********************* * ********************* *

You = You = Your Your

CalendarCalendar

You = Your You = Your calendarcalendar**

*The calendar *The calendar NEVERNEVER lies.lies.

YOUR CALENDAR YOUR CALENDAR KNOWSKNOWS PRECISELYPRECISELY

WHAT YOUWHAT YOUREALLY CARE ABOUT.REALLY CARE ABOUT.

DODO YOUYOU????????

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

‘TO-DON’T ’‘TO-DON’T ’

List !”List !”

Meetings ROCKMeetings ROCK!!(Make that: SHOULD Rock)(Make that: SHOULD Rock)

Bitch all you Bitch all you want, but want, but meetinmeetinggss

are what you are what you (boss/leader)(boss/leader) dodo!!

Meetings are Meetings are #1#1 thing thing

bosses bosses dodo. Therefore, . Therefore, 100%100%

of those meetings:of those meetings: EXCELLENCE. EXCELLENCE. ENTHUSIASM. ENTHUSIASM. ENGAGEMENT. ENGAGEMENT.

LEARNING. TEMPO. LEARNING. TEMPO. WORK-OF-ARTWORK-OF-ART.. DAMNDAMN ITIT..

Prepare for a Prepare for a meeting/every meeting/every

meeting as if your meeting as if your professional life and professional life and

legacy depended on it.legacy depended on it.

It does.It does.

““I always writeI always write ‘LISTEN’‘LISTEN’ on on the back of my hand the back of my hand before a meeting.”before a meeting.”

Source: Tweet viewed @tom_petersSource: Tweet viewed @tom_peters

#1#1 CEOCEO Failing?Failing?

““If I had toIf I had to pick one failing pick one failing

of CEOs, it’sof CEOs, it’s that …that …

——Co-founder of one of the largest investment services firms in the USA/worldCo-founder of one of the largest investment services firms in the USA/world

“If I had to pick one failing of

CEOs, it’s that … they don’t read enough.”

#1T#1T CEOCEO Failing?Failing?

““Unfortunately, Kahneman argues Unfortunately, Kahneman argues [Nobel laureate Daniel Kahneman’s masterpiece [Nobel laureate Daniel Kahneman’s masterpiece

Thinking, Fast and Thinking, Fast and SlowSlow],], very often our brain is to very often our brain is to

lazy to think slowly and methodically. lazy to think slowly and methodically. Instead, we let the fast way of thinking Instead, we let the fast way of thinking

take over. As a consequence, wetake over. As a consequence, we often ‘see’ imaginary causalities, often ‘see’ imaginary causalities,

and thus fundamentally misunderstand and thus fundamentally misunderstand the world.”the world.”

Source:Source: Big Data: A Revolution That Will Transform How We Live, Big Data: A Revolution That Will Transform How We Live, Work, and Think, Work, and Think, by Viktor Mayer-Schonberger and Kenneth Cukierby Viktor Mayer-Schonberger and Kenneth Cukier

Thinking, Fast and SlowThinking, Fast and Slow

“Why are experts inferior to algorithms? One reason is“Why are experts inferior to algorithms? One reason is that experts try to be clever, think outside the box … that experts try to be clever, think outside the box … This may work in the odd case, but more often than notThis may work in the odd case, but more often than not

it reduces validity. …” it reduces validity. …”

“The important conclusion from this research is that“The important conclusion from this research is that an algorithm that is constructed on the back of an an algorithm that is constructed on the back of an envelope is often good enough to compete with an envelope is often good enough to compete with an

optimally weighted formula— optimally weighted formula— and certainly good and certainly good enough to outdo expert judgment.” enough to outdo expert judgment.”

“It is wrong to blame anyone for failing to forecast “It is wrong to blame anyone for failing to forecast accurately in an unpredictable world. However, it seems fair accurately in an unpredictable world. However, it seems fair

to to blame professionals for believing they can succeed at an blame professionals for believing they can succeed at an

impossible task.”impossible task.”

Source: Daniel Kahneman, Source: Daniel Kahneman, Thinking, Fast and SlowThinking, Fast and Slow (Chapter: “intuitions Vs. Formulas”)(Chapter: “intuitions Vs. Formulas”)

For a definitive list of For a definitive list of

159159 cognitive cognitive

biases, see …biases, see …

http://en.wikipedia.org/wiki/http://en.wikipedia.org/wiki/List_of_cognitive_biasesList_of_cognitive_biases

Cognitive Biases: Behavioral, Social, and MemoryCognitive Biases: Behavioral, Social, and MemoryActor-observer BiasActor-observer Bias

Ambiguity EffectAmbiguity Effect

Anchoring or FocalismAnchoring or Focalism

Attentional BiasAttentional Bias

Availability CascadeAvailability Cascade

Availability HeuristicAvailability Heuristic

Backfire EffectBackfire Effect

Bandwagon EffectBandwagon Effect

Base Rate Fallacy or Base Rate NeglectBase Rate Fallacy or Base Rate Neglect

Belief BiasBelief Bias

Bias Blind SpotBias Blind Spot

Bizarreness EffectBizarreness Effect

Change BiasChange Bias

Cheerleader EffectCheerleader Effect

Childhood AmnesiaChildhood Amnesia

Choice-supportive BiasChoice-supportive Bias

Clustering IllusionClustering Illusion

Confirmation BiasConfirmation Bias

Congruence BiasCongruence Bias

Conjunction FallacyConjunction Fallacy

Conservatism (Bayesian)Conservatism (Bayesian)

Conservatism or Regressive BiasConservatism or Regressive Bias

Consistency BiasConsistency Bias

Context EffectContext Effect

Contrast EffectContrast Effect

Cross-race EffectCross-race Effect

CryptomnesiaCryptomnesia

Curse of KnowledgeCurse of Knowledge

Decoy EffectDecoy Effect

Defensive Attribution HypothesisDefensive Attribution Hypothesis

Denomination EffectDenomination Effect

Distinction BiasDistinction Bias

Dunning-Kruger EffectDunning-Kruger Effect

Duration NeglectDuration Neglect

Egocentric BiasEgocentric Bias

Egocentric Memory BiasEgocentric Memory Bias

Empathy GapEmpathy Gap

Endowment EffectEndowment Effect

EssentialismEssentialism

Exaggerated ExpectationExaggerated Expectation

AcknowledgementAcknowledgement!!

AcknowledgementAcknowledgement!!

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

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

—William James—William James

**“Craving,” not “wish” or “desire” or “Craving,” not “wish” or “desire” or “longing”/Distinction per Dale Carnegie in “longing”/Distinction per Dale Carnegie in How to Win How to Win Friends and Influence People, Friends and Influence People, chapter titled “The BIG chapter titled “The BIG

Secret of Dealing With People”Secret of Dealing With People”

““The deepest The deepest urgeurge

in human nature in human nature is the desire to is the desire to

be important.”be important.” —John —John

DeweyDewey(In Dale Carnegie, (In Dale Carnegie, How to Win Friends and Influence How to Win Friends and Influence

People People (“The BIG Secret of Dealing With People”)(“The BIG Secret of Dealing With People”)

"Appreciative words are "Appreciative words are the most powerful forcethe most powerful force

for good on earth.”for good on earth.”——George W. Crane, physician, columnistGeorge W. Crane, physician, columnist

““The two most powerful The two most powerful things in existence: athings in existence: a

kind word and akind word and a thoughtful gesture.” thoughtful gesture.”

——Ken Langone, co-founder, Home DepotKen Langone, co-founder, Home Depot

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

rarely make rarely make significant significant

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

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

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

college president.college president. HE WAS HE WAS SERIOUSLY INTERESTED IN SERIOUSLY INTERESTED IN

WHO YOU WERE AND WHO YOU WERE AND WHAT YOU HAD TO SAY.”WHAT YOU HAD TO SAY.”

—Sara Lawrence-Lightfoot, Respect

““You can make more You can make more friends in two monthsfriends in two months

bbyy becomin becomingg interested interested in other in other ppeoeopple thanle than you can in two years you can in two years by trying to get other by trying to get other people interested in people interested in

you.”you.” —Dale Carnegie

““When I left the dining room after When I left the dining room after sitting next to Gladstone, I thought he sitting next to Gladstone, I thought he was the cleverest man in England. But was the cleverest man in England. But

when I sat next to Disraeliwhen I sat next to Disraeli I left I left feeling I was the cleverest feeling I was the cleverest

personperson.”.” —Jennie Jerome (WSCs American mother)—Jennie Jerome (WSCs American mother)

““When you are talking to When you are talking to [Bill Clinton][Bill Clinton], , you feel like he doesn’t care about you feel like he doesn’t care about

anything or anybody else around but anything or anybody else around but

you.you. He makes you feel likeHe makes you feel like the most important person inthe most important person in

the roomthe room.”.” —Mark Hughes, screenwriter, —Mark Hughes, screenwriter, ForbesForbes blogger blogger

““Leadership is about how Leadership is about how you make people you make people feelfeel——about you, about the about you, about the

project or work you’re project or work you’re doing together, and doing together, and

especially about especially about themselvesthemselves.”.” —Betsy Myers, —Betsy Myers,

Take the Lead: Motivate, Inspire, and Bring Out Take the Lead: Motivate, Inspire, and Bring Out the Best in Yourself and Everyone Around Youthe Best in Yourself and Everyone Around You

1 Mouth1 Mouth 2 Ears2 Ears

“The doctor interrupts after …*

*Source: Jerome Groopman, How Doctors Think

18 …

18 … seconds!

(An (An obsessionobsession with) Listening is ... the ultimate mark with) Listening is ... the ultimate mark

of of RespectRespect..

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

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

(cont.)(cont.)

Best Listeners Win …Best Listeners Win …

““IF YOU DON’T IF YOU DON’T LISTEN, YOU LISTEN, YOU DON’T SELL DON’T SELL ANYTHING.”ANYTHING.”

——Carolyn MarlandCarolyn Marland

*8 of 10 sales presentations fail*8 of 10 sales presentations fail

*50% failed sales *50% failed sales

presentations … presentations … talkingtalking “at” before “at” before listening! listening!—Susan Scott, “Let Silence Do the Heavy Lifting,” chapter title, —Susan Scott, “Let Silence Do the Heavy Lifting,” chapter title, Fierce Conversations: Achieving Success at Work and in Life,Fierce Conversations: Achieving Success at Work and in Life,One Conversation at a TimeOne Conversation at a Time

““My education in leadership began in Washington when I was an assistant to My education in leadership began in Washington when I was an assistant to Defense Secretary William Perry. He was universally loved and admired by Defense Secretary William Perry. He was universally loved and admired by heads of state … and our own and allied troops. heads of state … and our own and allied troops. A lot of that was because A lot of that was because of the waof the wayy he listened. Each he listened. Each pperson who talked to him had his erson who talked to him had his comcompplete, undivided attention. Everlete, undivided attention. Everyyone blossomed in his one blossomed in his ppresence, resence, because he was so resbecause he was so resppectful, and I realized I wanted to affect ectful, and I realized I wanted to affect people the same waypeople the same way..

““Perry became my role model but that was not enough. Something bigger had Perry became my role model but that was not enough. Something bigger had to happen, and it did. It was painful to realize how often I just pretended to to happen, and it did. It was painful to realize how often I just pretended to hear people. hear people. How manHow manyy times had I barel times had I barelyy gglanced up from mlanced up from myy work work when a subordinate came into mwhen a subordinate came into myy office? I wasn’t office? I wasn’t ppayinayingg attention; I attention; I was markinwas markingg time until it was m time until it was myy turn to turn to gigive ordersve orders.. That revelation That revelation led me to a new personal goal. I vowed to treat every encounter with every led me to a new personal goal. I vowed to treat every encounter with every person on Benfold person on Benfold (Abrashoff was the Captain)(Abrashoff was the Captain) as the most important thing at as the most important thing at that moment. It wasn’t easy, but my crew’s enthusiasm and ideas kept me that moment. It wasn’t easy, but my crew’s enthusiasm and ideas kept me going.going.

““It didn’t take me long to realize that my young crew was smart, talented and It didn’t take me long to realize that my young crew was smart, talented and full of good ideas that usually came to nothing because no one in charge had full of good ideas that usually came to nothing because no one in charge had

ever listened to them. …ever listened to them. … I decided that mI decided that myy job job was to listen awas to listen aggggressivelressively …”y …”

——Mike Abrashoff,Mike Abrashoff, It’s Your Ship: It’s Your Ship: Management Techniques from the Best Damn Ship in the NavyManagement Techniques from the Best Damn Ship in the Navy

Suggested Suggested Core Value Core Value #1:#1: “We are Effective “We are Effective

Listeners—we treat Listening Listeners—we treat Listening EXCELLENCEEXCELLENCE as the as the Centerpiece of our Centerpiece of our

Commitment to Respect and Commitment to Respect and Engagement and Community Engagement and Community

and Growth.”and Growth.”

LISTEN = “PROFESSION” =

STUDY = PRACTICE = EVALUATION =

ENTERPRISE VALUE

ChangeChangeChange Agents:Change Agents:140 Characters140 Characters

CHANGE. CHANGE AGENTS. 140 CHARACTERS.CHANGE. CHANGE AGENTS. 140 CHARACTERS.

Change agentry: Forget the word “enemies.” Focus on/obsess on … ALLIESChange agentry: Forget the word “enemies.” Focus on/obsess on … ALLIES..Big change is not about fighting the bad guys. It’s about surrounding them with your Big change is not about fighting the bad guys. It’s about surrounding them with your continuously recruited alliescontinuously recruited allies..Success at change: Building a stable of allies. Failure: Pissing and moaning and picking fights.Success at change: Building a stable of allies. Failure: Pissing and moaning and picking fights.Change agent time distribution: 50% recruiting Allies. 40% tending Allies. 10% other. Change agent time distribution: 50% recruiting Allies. 40% tending Allies. 10% other. 0% fighting enemies0% fighting enemies..Change: Allies do not automatically remain allies. Tend them and do NOT NOT NOT neglect them—the Change: Allies do not automatically remain allies. Tend them and do NOT NOT NOT neglect them—the latter is a common sin.latter is a common sin.Change the 4F Way: Find a Fellow Freak Faraway. (Change agents need playmates and distant playpens.)Change the 4F Way: Find a Fellow Freak Faraway. (Change agents need playmates and distant playpens.)Change you want: It’s already happening somewhere. Find it!Change you want: It’s already happening somewhere. Find it!Change is about end runs—not smash-mouth plunge down the middleChange is about end runs—not smash-mouth plunge down the middle ..Allies: Recruit the quiet ones as much or more than the noisy ones.Allies: Recruit the quiet ones as much or more than the noisy ones.Change: Making loud noises is usually a loser’s strategy.Change: Making loud noises is usually a loser’s strategy.Change: Recruit allies 2 or 3 levels “down” … where the real work is done and from which the system can Change: Recruit allies 2 or 3 levels “down” … where the real work is done and from which the system can be indirectly manipulated.be indirectly manipulated.Change: “Suck down” for success.Change: “Suck down” for success.

Change: Change: ALLIES. ALLIES. ALLIES. ALLIES. ALLIES. ALLIESALLIES. ALLIES. ALLIES. ALLIES. ALLIES. ALLIES. (Then more . (Then more

ALLIESALLIES.).)Change agents: Commit no minor sins. Don’t let the bad guys find a narrow opening and bring you down Change agents: Commit no minor sins. Don’t let the bad guys find a narrow opening and bring you down for trivial reasons.for trivial reasons.Change agents: Keep a civil tongue at all costs.Change agents: Keep a civil tongue at all costs.Change agents: Speak not ill of thine enemies. Even to pals in private. All the walls have ears.Change agents: Speak not ill of thine enemies. Even to pals in private. All the walls have ears.Change agents: No: Charts and graphs. Instead: Demos. Demos. Then more demos.Change agents: No: Charts and graphs. Instead: Demos. Demos. Then more demos.Change: Success is more about momentum around small wins than it is about big wins.Change: Success is more about momentum around small wins than it is about big wins.Change: Engage your allies in the design process—even if it introduces impurities. They must FEEL true Change: Engage your allies in the design process—even if it introduces impurities. They must FEEL true ownership.ownership.100% of change-that-works is NON-linear.100% of change-that-works is NON-linear.Change: Joyfully let/encourage your allies to take 100% credit for the small wins they’re involved in.Change: Joyfully let/encourage your allies to take 100% credit for the small wins they’re involved in.Serious change includes bad days, bad weeks, bad months, perhaps bad years.Serious change includes bad days, bad weeks, bad months, perhaps bad years.Change agents: Re-read all emails 3 times before sending.Change agents: Re-read all emails 3 times before sending.SM is a marvel. Do NOT shortchange face-to-face with Allies.SM is a marvel. Do NOT shortchange face-to-face with Allies.Change agents: Successful small wins with outsiders provide enormous street cred.Change agents: Successful small wins with outsiders provide enormous street cred.Change agent: Preaching to the choir is just fine. If the members of the choir preach to Change agent: Preaching to the choir is just fine. If the members of the choir preach to their choirs it becomes a ... MOVEMENT!their choirs it becomes a ... MOVEMENT!

Step Up ToStep Up ToCreating/Creating/

Living/Living/Maintaining anMaintaining an

Effective CultureEffective Culture

WSJ/0910.13:WSJ/0910.13: “What matters most “What matters most to a company over time? to a company over time?

Strategy or culture? Strategy or culture?

Dominic Barton, MD, McKinsey & Co.:Dominic Barton, MD, McKinsey & Co.:

“Culture.“Culture.””

““Culture precedes Culture precedes positive results. It positive results. It doesn’t get tacked doesn’t get tacked

on as an on as an afterthought on the afterthought on the way to the victory way to the victory

stand.”stand.” —NFL Hall of Fame Coach Bill Walsh—NFL Hall of Fame Coach Bill Walsh

..

““If I could have chosen not to tackle the IBM culture head-If I could have chosen not to tackle the IBM culture head-on,on,

I probably wouldn’t have. My bias coming in was toward I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of changing the attitude and behaviors of hundreds of

thousands of people is very, very hard.thousands of people is very, very hard. Yet I Yet I came to see in my time at came to see in my time at IBM that IBM that cultureculture isn’t just isn’t just

one aspect of the game one aspect of the game ——IT IS THE IT IS THE GGAMEAME.”.”

——Lou Gerstner, Lou Gerstner, Who Says Elephants Can’t DanceWho Says Elephants Can’t Dance

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

!!

0/8000/800

““INSANELY GREAT”INSANELY GREAT”STEVE JOBSSTEVE JOBS

“RADICALLY THRILLING” “RADICALLY THRILLING” BMW

““Astonish me!”Astonish me!” (Sergei Diaghilev, to a lead dancer)

“Build something great!”“Build something great!” (Hiroshi Yamauchi, Nintendo, to a senior game designer)

“Make it immortal!”“Make it immortal!” (David Ogilvy, to a copywriter).

Raise your sightsRaise your sights!!Blaze new trailsBlaze new trails!!Compete with the Compete with the

immortalsimmortals!! ——David Ogilvy, on Ogilvy & Mather’s corporate culture David Ogilvy, on Ogilvy & Mather’s corporate culture

““Let us create Let us create such a building such a building

that future that future generations will generations will

take us for take us for lunaticslunatics.”.”

—the church hierarchs at Seville, on a prospective cathedral—the church hierarchs at Seville, on a prospective cathedral

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

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

else is already doing else is already doing it.”it.”

—Hajime Mitarai, CEO, Canon—Hajime Mitarai, CEO, Canon

““You can’t behave You can’t behave in a calm, rational in a calm, rational manner. You’ve got manner. You’ve got to be out there on to be out there on the the lunaticlunatic frinfringgee.”.”

— Jack Welch— Jack Welch

““Normal” =Normal” = “0 “0 forfor 800” 800”

*There are … *There are … ZEROZERO … “normal people” in the history books. … “normal people” in the history books.

““If you ask me what I If you ask me what I have come to do in have come to do in

this world, I who am this world, I who am an artist, I will reply: an artist, I will reply: I I

am here to live my am here to live my life out loud.”life out loud.” — Émile Zola— Émile Zola

““The reasonable man adapts The reasonable man adapts himself to the world; the himself to the world; the

unreasonable one persists in unreasonable one persists in trying to adapt the world to trying to adapt the world to

himself. Therefore all progress himself. Therefore all progress depends on the unreasonable depends on the unreasonable man.”man.” —G.B. Shaw,—G.B. Shaw, Man and Superman: The Revolutionist’s Man and Superman: The Revolutionist’s

HandbookHandbook

““Whenever anything is being Whenever anything is being accomplished, it is being done, I accomplished, it is being done, I have learned, by a monomaniac have learned, by a monomaniac

with a mission.”with a mission.” —Peter Drucker—Peter Drucker

Kevin Roberts’ CredoKevin Roberts’ Credo

11. Ready. Fire! Aim.. Ready. Fire! Aim.2. If it ain’t broke ... Break it!2. If it ain’t broke ... Break it!3. Hire crazies.3. Hire crazies.4. Ask dumb questions.4. Ask dumb questions.5. Pursue failure.5. Pursue failure.6. Lead, follow ... or get out of the way!6. Lead, follow ... or get out of the way!7. Spread confusion.7. Spread confusion.8. Ditch your office.8. Ditch your office.9. Read odd stuff.9. Read odd stuff.

10. AVOID MODERATIONAVOID MODERATION!!

!

Excellence.Excellence. Always. Always.

If notIf not Excellence,Excellence, what?what?

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

This 78-year-old aims to do no less than This 78-year-old aims to do no less than change the world—beginning with change the world—beginning with changing dramatically the culture of a changing dramatically the culture of a 2,000+ year old institution.2,000+ year old institution.

(And you?)(And you?)