Tom Peters’Tom Peters’

EXCELLENCE. EXCELLENCE. ALWAYS.ALWAYS.Talent.Talent.Time.Time.

SHRM Puerto Rico ConventionSHRM Puerto Rico ConventionEl Conquistador Resort/28September2006El Conquistador Resort/28September2006

Slides* at …

tompeters.comtompeters.com

*also “long”

EXCELLENCE. THE EXCELLENCE. THE

CHALLENGE.CHALLENGE.

THREE THREE BILLIONBILLION NEW NEW CAPITALISTSCAPITALISTS

—Clyde Prestowitz

“There is no job that

is America’s God-given

right anymore.” —

Carly Fiorina

“One Singaporean worker costs as much as …

3 … in Malaysia3 … in Malaysia 8 … in Thailand 8 … in Thailand 13 … in China 13 … in China 18 … in India.” 18 … in India.”

Source: Page #1, The Straits Times

SpainPortugal

ItalyIreland

Singapore TaiwanThailandMalaysia

Singapore Philippines

UAEOmanChile

BotswanaRomania

new zealand

++++++

EXCELLENCE. THE EXCELLENCE. THE

CHALLENGE.CHALLENGE.

““If you don’t like If you don’t like change, you’re change, you’re going to like going to like

irrelevanceirrelevance even even less.”less.” —General Eric Shinseki, Chief of Staff, U. S.

Army

EXCELLENCE. EXCELLENCE. STARTERS.STARTERS.

BASICS.BASICS.

PPeople.eople.PProduct.roduct.CClients.lients.

EExecution.xecution.EEnthusiasm.nthusiasm.EExcellence.xcellence.

“FordFord, GMGM

and ChrChryyslersler do not just make cars

expensively … they make

badbad cars expensively.”

—Investec analyst, International Herald, 0805.06

“To me business isn’t To me business isn’t about wearing suits or about wearing suits or pleasing stockholders. pleasing stockholders. It’s about being true to It’s about being true to yourself, your ideas and yourself, your ideas and

focusing on the focusing on the essentialsessentials.”.” —Richard Branson

$79$7988

$$798798/SqFt/Whole Whole FoodsFoods

$$415415/SqFt/Wal*Mart

7X.7X. 730A-730A-800P. 800P. F12AF12A..**

*’93-’03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a.

Jim’s GroupJim’s Group

Jim Penman/“Empire Builders”/MT /

Jan/Feb 2006/Australia

Jim’s GroupJim’s Group:: Jim Jim

Penman.* 1984: Jim’s Mowing. 2006: Jim’s Penman.* 1984: Jim’s Mowing. 2006: Jim’s

Group. Group. 2,600 franchisees2,600 franchisees (Australia, (Australia, NZ, UK). NZ, UK). Cleaning. Dog washing. Cleaning. Dog washing.

Handyman. Fencing. Paving. Pool care. Handyman. Fencing. Paving. Pool care. Etc.Etc.

“People first.” Private. Small staff. Franchisees “People first.” Private. Small staff. Franchisees can leave at will. can leave at will. 0-1 complaint per year 0-1 complaint per year

per franchisee is normper franchisee is norm; cut bad ones ; cut bad ones quickly.quickly.

*Ph.D. cross-cultural anthropology; mowing on the side!

Source: MT/Management Today (Australia), Jan-Feb 2006

EXCELLENCE.EXCELLENCE.

ALL YOU NEED ALL YOU NEED TO KNOW.TO KNOW.

2255

EXCELLENCE. EXCELLENCE. THE WORD.THE WORD.

Synonyms

PurityPurityTranscendenceTranscendence

VirtueVirtueEleganceEleganceMajestyMajesty

Antonyms

Mediocrity

EXCELLENCE. EXCELLENCE. MESSAGE82.MESSAGE82.

Excellence1982: The Bedrock “Eight Basics”

1. A Bias for 1. A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. Autonomy and Entrepreneurship3. Autonomy and Entrepreneurship4. Productivity Through 4. Productivity Through PeoPeopplele5. 5. Hands OnHands On, Value-Driven, Value-Driven6. Stick to the Knitting6. Stick to the Knitting7. Simple Form, Lean Staff7. Simple Form, Lean Staff8. Simultaneous Loose-Tight8. Simultaneous Loose-Tight Properties” Properties”

ExIn*: 1982-2002/Forbes.com

DJIA: $10,000 yields $85,000$85,000 EI: $10,000 yields $140,050$140,050

*Forbes/Excellence Index /Basket of 32 publicly traded stocks

EXCELLENCE. EXCELLENCE. ASPIRATION.ASPIRATION.

““Why in the Why in the world did world did you go to you go to SSiberiaiberia?”?”

The Peters Principles: Enthusiasm.Enthusiasm.

Emotion. Emotion. Excellence.Excellence. Energy. Energy. Excitement. Service. Growth. Excitement. Service. Growth.

Creativity. Imagination. Vitality. Creativity. Imagination. Vitality. Joy. Surprise. Independence. Joy. Surprise. Independence. Spirit. Community. Limitless Spirit. Community. Limitless human potential. Diversity. human potential. Diversity. Profit.Profit. Innovation. Design. Innovation. Design.

Quality. Entrepreneurialism. Quality. Entrepreneurialism. Wow.Wow.

Business* ** (*at its best): An emotional, An emotional, vital, innovative, joyful, vital, innovative, joyful,

creative, entrepreneurial creative, entrepreneurial endeavor that elicits endeavor that elicits

maximum concerted human maximum concerted human potential in the potential in the

wholehearted servicewholehearted service of others of others.***

**Excellence. Always.***Employees, Customers, Suppliers, Communities, Owners, Temporary partners

EXCELLENCE.EXCELLENCE.ASPIRATION. ASPIRATION. YOU & ME.YOU & ME.

"Life is not a journey to the grave with the intention of arriving safely in one pretty and well preserved piece, but to skid across the line

broadside, thoroughly used up, worn out, leaking

oil, shouting …

‘GERONIMO!’GERONIMO!’ ” —Bill McKenna, professional motorcycle racer (Cycle magazine)

EXCELLENCE. EXCELLENCE.

4/40.4/40.

De-cent-De-cent-ral-iz-ral-iz-a-tion!a-tion!

Ex-e-Ex-e-cu-cu-

tion!tion!

“Execution is a

ssyystematic stematic pprocessrocess of rigorously

discussing hows and whats, tenaciously following through, and

ensuring accountability.” —Larry Bossidy & Ram Charan/ Execution: The DISCIPLINEDISCIPLINE of Getting Things Done

Ac-count-Ac-count-a-bil-ity!a-bil-ity!

““RealismRealism is is the heart of the heart of execution.”execution.”

—Larry Bossidy & Ram Charan/Execution: The Discipline of Getting Things Done

6:15A.M6:15A.M..

EXCELLENCE.EXCELLENCE.

NEW MARKETS.NEW MARKETS.ENORMOUS. ENORMOUS.

OPPORTUNITIES.OPPORTUNITIES.

““IdiotIdiot”” is too kind a word.

“That’s a very diverse* team.”

—Patrick Cescau, CEO, Unilever**

*1 of 14 Board of Directors members is a woman (not an exec); 2 of 7 Exec Team members are … Indians. (Source: FT/24-25 June.)

**Approximately 8585%% of Unilever’s

products are purchased by … women.

“That’s a

VERYVERY diverse team.”

—Patrick Cescau, CEO, Unilever* **

*1 of 14 Board of Directors members is a woman (not an exec); 2 of 7 Exec Team members are … Indians. (Source: FT/24-25 June.)

**Approximately 85% of Unilever’s products are purchased by … women.

“That’s a

VERYVERY sick

man.”

—Tom Peters

EXCELLENCE. EXCELLENCE.

FOUND.FOUND.DUH.DUH.

“To be a leader in To be a leader in consumer products, consumer products, it’s critical to have it’s critical to have

leaders who leaders who represent the represent the population we population we

serveserve.”.” —Steve Reinemund/PepsiCo

EXCELLENCE. EXCELLENCE.

OPPORTUNITY.OPPORTUNITY.WOMEN.WOMEN.

“Women are thethe

majority market”

—Fara Warner/The Power of the Purse

“She knows moreknows more about the [Volvo] than the salesmanman who greets

her at the door. But how is she treated? As if she has a low IQ low IQ , is

slightly hard of hearing hard of hearing , and really has no rightno right to be buying a luxury

car; and if she brought a male friend with her, odds are 10:1 that the

clueless salesperson spent most of his time speaking to him speaking to him .” —Selling to Men,

Selling to Women, Jeffery Tobias Halter

1. Men and women are different.1. Men and women are different.2. Very different.2. Very different.3. 3. VERY, VERY DIFFERENTVERY, VERY DIFFERENT..4. Women & Men have a-b-s-o-l-u-t-e-l-y4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common. nothing in common.5. Women buy lotsa stuff.5. Women buy lotsa stuff.

6. 6. WOMEN BUY A-L-L THE WOMEN BUY A-L-L THE STUFFSTUFF..7. Women’s Market = Opportunity No. 1.7. Women’s Market = Opportunity No. 1.8. Men are (STILL) in charge.8. Men are (STILL) in charge.9. 9. MEN ARE … TOTALLY, HOPELESSLYMEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN. CLUELESS ABOUT WOMEN.

10. 10. Women’s Women’s Market = Market =

Opportunity Opportunity No. 1.No. 1.

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

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

purchasing power; purchasing power; over the past over the past decade decade

the value of shares in the value of shares in Goldman’s basket has risen by Goldman’s basket has risen by

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

rise of 13%rise of 13%.”.” —Economist—Economist, April 15, April 15

EXCELLENCE. EXCELLENCE. OPPORTUNITY.OPPORTUNITY.

WOMEN BUSINESS OWNERS.WOMEN BUSINESS OWNERS.

10.610.6

U.S. firms owned or controlled by Women:U.S. firms owned or controlled by Women: 10.6 10.6 millionmillion ( (48%48% of all firms) of all firms)

Growth rate of Women-owned firms vs all firms:Growth rate of Women-owned firms vs all firms: 3X3X

Rate of jobs created by Women-owned firms vs all Rate of jobs created by Women-owned firms vs all firms:firms: 2X2X

Ratio of total payroll of Women-owned firms vs total Ratio of total payroll of Women-owned firms vs total for Fortune500 firms:for Fortune500 firms: >1.0>1.0

Ratio of likelihood of Women-owned firms staying in Ratio of likelihood of Women-owned firms staying in business vs all firms:business vs all firms: >1.0>1.0

Growth rate of Women-owned companies with Growth rate of Women-owned companies with revenues of >$1,000,000 and >100 employees vs all revenues of >$1,000,000 and >100 employees vs all firms:firms: 2X2X

Source: Margaret Heffernan, How She Does It

WOMEN.WOMEN.

DOMINATE. DOMINATE. ECONOMIC. ECONOMIC. GROWTH.GROWTH.

““Forget China, Forget China, India and the India and the

Internet: Economic Internet: Economic Growth Is Driven Growth Is Driven

by by WomenWomen.”.” —Headline,

Economist, April 15, 2006, Leader, page 14

QQ:: No. 1 contributor toNo. 1 contributor to developing country developing country economic improvement? economic improvement?

AA:: More education for women.More education for women.

Source: Many* (*On a related note, eBay founder Pierre Omidyar Source: Many* (*On a related note, eBay founder Pierre Omidyar and his wife just gave $100M to Tufts—its biggest gift ever—to and his wife just gave $100M to Tufts—its biggest gift ever—to support micro-lending; women typically aresupport micro-lending; women typically arethe recipients of 90% of micro-loans because they usethe recipients of 90% of micro-loans because they usethe $$$ more productively than men.)the $$$ more productively than men.)

Impact! Add It Up!

Primary markets/EverythingPrimary markets/Everything (“Men

buy things that other men will buy for women. I buy things that women want.”—successful jeweler/F. “Women are the majority market” —Fara Warner/The Power of the Purse. Women as Purchasing Officers, CIOs, etc.)

Greater global workforce Greater global workforce participation rateparticipation rate (“bigger contributor to GDP

growth than technology, China, India”—Economist)

Higher wagesHigher wages (more seniority, promotions—even if not

to CEO; greater pay equity—even if not equal)

Business “decision makers”Business “decision makers” (more

seniority, promotions—even if not to CEO)

Women-owned businessesWomen-owned businesses (answer to

the Glass Ceiling—10.6M in USA; recipients of “micro-lending”—developing world)

10 UNASSAILABLE REASONS WOMEN RULE10 UNASSAILABLE REASONS WOMEN RULE

WomenWomen make [all] the financial decisions. make [all] the financial decisions.WomenWomen control [all] the wealth. control [all] the wealth.WomenWomen [substantially] outlive men. [substantially] outlive men.WomenWomen start most of the new businesses. start most of the new businesses.Women’sWomen’s work force participation rates have work force participation rates have soared worldwide.soared worldwide.WomenWomen are closing in on “same pay for same are closing in on “same pay for same job.”job.”WomenWomen are penetrating senior ranks rapidly are penetrating senior ranks rapidly [even if the pace is slow for the corner [even if the pace is slow for the corner office per se].office per se].Women’s Women’s leadership strengths are exceptionally wellleadership strengths are exceptionally well aligned with new organizational effectivenessaligned with new organizational effectiveness imperatives.imperatives.WomenWomen are better salespersons than men. are better salespersons than men.WomenWomen buy [almost] everything—commercial buy [almost] everything—commercial as well as consumer goods.as well as consumer goods.

SoSo whatwhat exactlyexactly isis … … thethe pointpoint ofof menmen??

COROLLARY. COROLLARY. EXCELLENCE. EXCELLENCE.

WOMEN.WOMEN.RULE.RULE.

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find

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

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

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

workers; workers; favor interactive-collaborative leadership favor interactive-collaborative leadership style [empowerment beats top-down decision style [empowerment beats top-down decision

making];making]; sustain fruitful collaborations; comfortable sustain fruitful collaborations; comfortable with sharing information; with sharing information; see redistribution of power see redistribution of power

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

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

cultural diversitycultural diversity. —Judy B. Rosener, America’s Competitive Secret: Women Managers

EXCELLENCE. EXCELLENCE.

BEDROCK.BEDROCK.TALENT.TALENT.

Hire Hire ververy y good good

people!people!

“We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia-

Pacific … changed 2020 of his

4040 box plant managers to put more talented,

higher paid managers in charge. He increased profitability from

$$2525 million to $$8080 million in 22 years.”

—Ed Michaels, War for Talent

CCtataOO*

*Chief talent acquisitiontalent acquisition Officer

INVITE THEM INVITE THEM TO JOIN US IN TO JOIN US IN A JOURNEY TO A JOURNEY TO EXCELLENCE!EXCELLENCE!

“In the end, management doesn’t

change culture. Management

invitesinvites the workforce itself to change the culture.”

—Lou Gerstner

Organizing Genius / Warren Bennis and Patricia Ward Biederman

“Groups become great only when everyone in them, leaders and

members alike, is free to do his or is free to do his or her absolute besther absolute best.”.”

“The best thing a leader can do for a

Great Group is to allow its allow its members to discover their members to discover their

greatnessgreatness.”.”

Leadership’s Mt Everest/Mt Excellence

“free to do his or her “free to do his or her absolute best” …absolute best” …

“allow its members “allow its members to discover their to discover their

greatness.”greatness.”

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

the actor or actress can become more than become more than they’ve ever been they’ve ever been before, more than before, more than

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

CCQQOO*

*Chief quest-meister

EMPHASIZEMPHASIZE THE E THE “SOFT “SOFT

SKILLS.”SKILLS.”

““It’s simple, really, It’s simple, really, Tom. Hire forTom. Hire for ss, ,

and, and, aboveabove allall, , ppromoteromote for for s.”s.”

—Starbucks middle manager/field

A Few Lessons from the Arts

Each hired and developed and evaluated in unique waysEach hired and developed and evaluated in unique ways (23 contributors = 23 unique contributions = 23 pathways =

23 personalities = 23 sets of motivators)

Attitude/Enthusiasm/Energy paramountAttitude/Enthusiasm/Energy paramountRe-lent-less!Re-lent-less!

“Practice is cool”“Practice is cool” (G Leonard/Mastery)

Team Team and and individual individual Aspire to Aspire to EXCELLENCE EXCELLENCE = Obvious= Obvious

Ex-e-cu-tionEx-e-cu-tionTalent = Brand = DuhTalent = Brand = Duh“The Project” rules“The Project” rulesEmotional languageEmotional language

Bit players. No.Bit players. No.B.I.WB.I.W. (everything)

Delta events = Delta rostersDelta events = Delta rosters (incl leader/s)

PUT HR AT THE PUT HR AT THE HEAD OF THE HEAD OF THE HEAD TABLE. HEAD TABLE. BEST PEOPLE. BEST PEOPLE.

NOBLEST NOBLEST MISSION.MISSION.

DDDD$21M$21M

A review of Jack and Suzy Welch’s Winning claims there are but two key differentiators that set GE “culture” apart from the herd:

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

Second: Putting Putting HRHR on a par with on a par with finance and finance and marketing.marketing.

SO YOU’RE A SO YOU’RE A “PEOPLE “PEOPLE

PERSON”? PERSON”? PROVE ITPROVE IT..

““The leaders of Great The leaders of Great

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

it. They it. They revel revel in the in the talent of others.”talent of others.” —

Warren Bennis & Patricia Ward Biederman, Organizing Genius

PARC’s Bob Taylor:

“Connoisseu“Connoisseur r

of Talent”of Talent”

““Leaders Leaders

‘‘dodo’’ people. people.

Period.”Period.” —Anon.

LIVE FOR LIVE FOR TALENT!TALENT!

Our Mission

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

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

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

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

WPP

What’s your company’s … EVP/EVP/IBPIBP?*

*Employee Value Proposition, per Ed Michaels et al.,

The War for Talent; IBP/Internal Brand Promise per TP

““We are a We are a ‘Life ‘Life

Success’ Success’ Company.”Company.”

Dave Liniger, founder, RE/MAX

Brand Brand = =

Talent.Talent.

Re-imaRe-imaggineinePeoPeopple Power:le Power:

The Talent The Talent5050

The Talent50

1. People first!1. People first!2. Soft is Hard. 2. Soft is Hard. 3. FUNDAMENTAL PREMISE: We are in an3. FUNDAMENTAL PREMISE: We are in an Age of Talent/ Creativity/Intellectual- Age of Talent/ Creativity/Intellectual- capital Added. capital Added.4. Talent “excellence” in every part of 4. Talent “excellence” in every part of thethe organization. organization.5. P.O.T./Pursuit Of Talent = Obsession.5. P.O.T./Pursuit Of Talent = Obsession.6. HR sits at The Head Table.6. HR sits at The Head Table.7. HR is “cool.”7. HR is “cool.”

The Talent50

8. Re-name “HR.” (Talent Department, Center of 8. Re-name “HR.” (Talent Department, Center of

Talent Excellence) Talent Excellence)9. There’s an HR Strategy9. There’s an HR Strategy10. There is a FORMAL Recruitment Strategy.10. There is a FORMAL Recruitment Strategy.11. There is a FORMAL Leadership Development 11. There is a FORMAL Leadership Development Strategy. Strategy.12. There is a “world class” Leadership12. There is a “world class” Leadership Development Center. Development Center.13. There is a FORMAL-STRATEGIC HR Review13. There is a FORMAL-STRATEGIC HR Review Process. Process.14. The “Top100,” and every unit’s Top10, are14. The “Top100,” and every unit’s Top10, are consciously managed. consciously managed.

The Talent50

15. “People/Talent Reviews” are the FIRST reviews.16. HR Strategy = Business Strategy.17. Make it a Cause Worth Signing Up For..

18. Set Sky High Standards.19. Enlist everyone in Challenge Century21.20. Pursue the Best!21. Up or Out.22. Ensure that the Review Process has INTEGRITY.23. Pay!

The Talent50

24. Training I: Train! Train! Train!24. Training I: Train! Train! Train!25. TII: 100% “business people.”25. TII: 100% “business people.”26. TIII: 100% Leaders.26. TIII: 100% Leaders.27. TIV: Boss as Trainer-in-Chief.27. TIV: Boss as Trainer-in-Chief.28. Open Communication I: NO28. Open Communication I: NO BARRIERS. BARRIERS.29. Open Communication II: Share29. Open Communication II: Share Information. (ALL!) Information. (ALL!)30. Respect!30. Respect!31. INTEGRITY!31. INTEGRITY!32. Treat the Whole Individual.32. Treat the Whole Individual.

The Talent50

33. Places of “grace.”33. Places of “grace.”34. MBWA: The “Rudy Rule.”34. MBWA: The “Rudy Rule.”35. Thank You!35. Thank You!36. Promote for “people skills.”36. Promote for “people skills.” (ALL ELSE IS SECONDARY.) (ALL ELSE IS SECONDARY.)37. Honor youth.37. Honor youth.38. Early leadership assignments.38. Early leadership assignments.39. Fast Tracking is the norm.39. Fast Tracking is the norm.40. Create a System of Mentoring.40. Create a System of Mentoring.

The Talent50

41. Diversity!41. Diversity!42. Diversity starts on the Board of42. Diversity starts on the Board of Directors. Directors.43. WOMEN RULE.43. WOMEN RULE.44. Weird Wins.44. Weird Wins.45. We are all unique. 45. We are all unique. 46. Bosses “win people over.”46. Bosses “win people over.”47. GOAL: Adventures of Mutual47. GOAL: Adventures of Mutual Discovery. Discovery.48. Foster Independence.48. Foster Independence.49. Enthusiasm!49. Enthusiasm!

50. Talent Talent = Brand.= Brand.

EXCELLENCE.EXCELLENCE.NECESSITY.NECESSITY.

OPPORTUNITY. OPPORTUNITY.

“ ‘Disintermediation’ is overrated. Those who fear disintermediation-outsourcing should in fact be

afraid of irrelevance; ‘outsourcing’ is just another

way of saying that …

yyou’ve ou’ve become become

irrelevant irrelevant toto y your our

customerscustomers.”.”

—John Battelle/Point/Advertising Age/07.05

Chicago:

HRMACHRMAC

““support function” / support function” / “cost center”/ “cost center”/ “overhead”“overhead”

oror … …

Are you … ““Rock Rock Stars of the Stars of the

AAgge of Talente of Talent””

Department Head

to …

ManaginManaging g

PartnerPartner, , ISIS [HR, R&D, etc.] IncInc..

Answer:

PSFPSF

Core Mechanism:“Game-changing Solutions”

PSFPSF (Professional Service Firm “model”/The Organizing Principle)

+

Brand YouBrand You(“Distinct” or “Extinct”/The Talent)

+

Wow! ProjectsWow! Projects (“Different” vs “Better”/The Work)

TheThe ““PSF35PSF35””:: Thirty-Five Thirty-Five

Professional Service Firm Professional Service Firm Marks of ExcellenceMarks of Excellence

The PSF35: The Work & The Legacy

1.1. CRYSTAL CLEAR POINT OF VIEWCRYSTAL CLEAR POINT OF VIEW

(E very Practice Group: “If you can’t explain your position in eight(E very Practice Group: “If you can’t explain your position in eight words or less, you don’t have a position”—Seth Godin)words or less, you don’t have a position”—Seth Godin)2. 2. DRAMATIC DIFFERENCEDRAMATIC DIFFERENCE (“We are the only ones who do what (“We are the only ones who do what we do”—Jerry Garcia)we do”—Jerry Garcia)3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)4. Eye-Appetite for Game-changer Projects (Excellence at Assembling4. Eye-Appetite for Game-changer Projects (Excellence at Assembling “ “Best Team”—Fast) Best Team”—Fast) 5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change the World)the World)6. Small “Uneconomic” Clients with Big Aims6. Small “Uneconomic” Clients with Big Aims7. Life Is Too Short to Work with Jerks (Fire lousy clients)7. Life Is Too Short to Work with Jerks (Fire lousy clients)8. 8. OBSESSED WITH LEGACYOBSESSED WITH LEGACY (Practice Group and Individual: “Dent the (Practice Group and Individual: “Dent the Universe”—Steve Jobs)Universe”—Steve Jobs)9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/ I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ”I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ”10. Consistent with #9 above … 10. Consistent with #9 above … DO NOT SHY AWAY FROM THEDO NOT SHY AWAY FROM THE WORD (IDEA) “RADICAL”WORD (IDEA) “RADICAL”

Pointed Pointed Point of Point of View!View!

“PSF” Nirvana

CounselCounseloror

Trusted AdvisorTrusted Advisor

Answer:

PSFPSF

HCare CIO: “Technology Executive” (workin’ in a hospital)

Or/to: Full-scale, Full-scale, AccountableAccountable (life or death)

Member-Partner of XYZ Member-Partner of XYZ Hospital’s Hospital’s Senior Senior HealinHealingg-Services -Services TeamTeam (who happens to be a techie)

EXCELLENCE. EXCELLENCE. INDIVIDUAL.INDIVIDUAL.BRAND YOU.BRAND YOU.

““One of the defining One of the defining characteristics [of the change] is characteristics [of the change] is

that it will be that it will be lessless driven by driven by countries or corporations and countries or corporations and

moremore driven by real people driven by real people. It will unleash unprecedented creativity,

advancement of knowledge, and economic development. But at the same time, it will tend to undermine safety net systems and

penalize the unskilled.” —Clyde Prestowitz, Three Billion New Capitalists

““If there is nothing If there is nothing very special about very special about your work,your work, no matter no matter how hard you apply yourself how hard you apply yourself you won’t get noticed, and you won’t get noticed, and

that increasingly means you that increasingly means you

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

New Work SurvivalKit.2006

1. MASTERY!MASTERY! (Best/Absurdly Good at Something!)2. “Manage” to Legacy“Manage” to Legacy (All Work = “Memorable”/“Braggable” WOW Projects!)3. A “USP”/UNIQUE SELLING PROPOSITIONA “USP”/UNIQUE SELLING PROPOSITION4. Rolodex ObsessionRolodex Obsession (From vertical/hierarchy/“suck up” loyalty to horizontal/“colleague”/“mate” loyalty)5. ENTREPRENEURIAL INSTINCTENTREPRENEURIAL INSTINCT (A sleepless … Eye for Opportunity! 6.CEO/LEADER/BUSINESSPERSON/CLOSERCEO/LEADER/BUSINESSPERSON/CLOSER (CEO, Me Inc. 24/7!)7. Master of ImprovMaster of Improv (Play a dozen parts simultaneously, from Chief Strategist to Chief Toilet Scrubber)8. Sense of HumorSense of Humor (A willingness to Screw Up & Move On)9. Comfortable with Your SkinComfortable with Your Skin (Bring “interesting you” to work!)10. Intense Appetite for TechnologyIntense Appetite for Technology (E.g.: How Cool-Active is your Web site? Do you Blog?)11. EMBRACE “MARKETING”EMBRACE “MARKETING” (Your own CSO/Chief Storytelling Officer)12. PASSION FOR RENEWALPASSION FOR RENEWAL (Your own CLO/Chief Learning Officer) 13. EXECUTION EXCELLENCE!EXECUTION EXCELLENCE! (Show up on time! Leave last!)

DistinctDistinct … or

…

ExtincExtinctt

EXCELLENCE. EXCELLENCE. AWOL: THE AWOL: THE SCHOOLS SCHOOLS FIASCO. FIASCO.

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

refrigerator artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How

could any child—let alone our child—receive a poor grade

in art at such a young age? His teacher His teacher informed us that he had informed us that he had

refused to color within the refused to color within the lines, which was a state lines, which was a state

requirement for requirement for demonstrating ‘grade-level demonstrating ‘grade-level

motor skillsmotor skills.’ ” —Jordan Ayan, AHA!

Ye gads: ““Thomas Stanley has not only found Thomas Stanley has not only found no correlation between success in school and no correlation between success in school and an ability to accumulate wealth, he’s actually an ability to accumulate wealth, he’s actually found a nefound a neggative correlationative correlation. ‘It seems that . ‘It seems that

school-related evaluations are poor school-related evaluations are poor predictors of economic success,’ Stanley predictors of economic success,’ Stanley

concluded. What did predict success was a concluded. What did predict success was a willingness to take risks. Yet the success-willingness to take risks. Yet the success-

failure standards of most schools penalized failure standards of most schools penalized risk takers. risk takers. Most educational systems reward Most educational systems reward those who play it safe. As a result, those who those who play it safe. As a result, those who

do well in school find it hard to take risks do well in school find it hard to take risks

later onlater on.”.” —Richard Farson & Ralph Keyes,

Whoever Makes the Most Mistakes Wins

15 “Leading” Biz Schools

DesignDesign/Core: 00Design/Elective: 1

CreativitCreativityy/Core: 00Creativity/Elective: 4

InnovationInnovation/Core: 00Innovation/Elective: 6

Source: DMI/Summer 2002/Research by Thomas Lockwood

EXCELLENCE.EXCELLENCE.ENTHUSIASM.ENTHUSIASM.

ENERGY. ENERGY. PASSION.PASSION.

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

—Samuel Taylor Coleridge

““Whenever anything is Whenever anything is being accomplished, I being accomplished, I

have learned, it is have learned, it is being done by a being done by a

monomaniac with a monomaniac with a mission.”mission.” —Peter Drucker

EXCELLENCE. EXCELLENCE.

RELENTLESSNESS.RELENTLESSNESS.

RE-LENT-RE-LENT-LESS-LESS-NESSNESS

“This [adolescent] incident [of getting from point A to point B] is notable not only because it underlines Grant’s fearless horsemanship and his

determination, but also it is the first known example of a very important

peculiarity of his character: Grant had an Grant had an extreme, almost phobic extreme, almost phobic dislike of turning back dislike of turning back

and retracing his steps.and retracing his steps. If he

set out for somewhere, he would get there somehow, whatever the difficulties that lay in his way. This idiosyncrasy would turn out to be one the factors that made him such a formidable general. Grant would always,

always press on—turning back was not an option for him.”

—Michael Korda, Ulysses Grant

EXCELLENCE. EXCELLENCE. SHOWING UP.SHOWING UP.

MBWMBWAA

“You must bebe the change you

wish to see in the world.”

Gandhi

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

Try it. Try it.

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

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

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

studying logs, but you have to drill.”

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

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

““ExperimenExperiment t

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

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

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

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

““You miss 100You miss 100 percent of the percent of the

shots you never shots you never take.”take.” —Wayne—Wayne Gretzky

Excellence1982: The Bedrock “Eight Basics”

1. 1. A Bias for ActionA Bias for Action2. Close to the Customer2. Close to the Customer3. Autonomy and Entrepreneurship3. Autonomy and Entrepreneurship4. Productivity Through People4. Productivity Through People5. Hands On, Value-Driven5. Hands On, Value-Driven6. Stick to the Knitting6. Stick to the Knitting7. Simple Form, Lean Staff7. Simple Form, Lean Staff8. Simultaneous Loose-Tight Properties” 8. Simultaneous Loose-Tight Properties”

tolerate tolerate [encourage?] [encourage?]

failurefailure

““Fail . Forward. Fail . Forward. Fast.”Fast.”

High Tech CEO, Pennsylvania

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

David Kelley/IDEO

Sam’s Sam’s Secret Secret

#1!#1!

““RewardReward excellent failures.

PunishPunish mediocre

successes.”Phil Daniels, Sydney exec

EXCELLENCE. EXCELLENCE.

STRETCH.STRETCH.

The greatest dangerThe greatest dangerfor most of usfor most of us

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

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

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

Michelangelo

EXCELLENCE. EXCELLENCE.

KABOOM.KABOOM.

No Wiggle Room!

“Incrementalism“Incrementalism is innovation’s is innovation’s

worstworst enemy.” enemy.” —Nicholas Negroponte

“Beware of the tyranny of making

Small Changes to Small

Things. Rather,

make BigBig Changes

to BigBig Things.”

—Roger Enrico, former Chairman, PepsiCo

LEADING.LEADING.

AS IF IT MATTERED. AS IF IT MATTERED. THE RELENTLESS THE RELENTLESS

PURSUIT OF PURSUIT OF EXCELLENCE. EXCELLENCE.

““Everyone lives Everyone lives by by sellinselling g

something.”something.”—Robert Louis Stevenson

“No leader sets out to be a leader per se, but rather but rather

to express him- or to express him- or herself freely and fullyherself freely and fully. .

ThatThat is, leaders have no interest in proving

themselves, but an abiding interest in expressing themselves.” —Warren Bennis,

On Becoming a Leader

You only You only find oil if find oil if you drillyou drill

wellswells.. —The Hunters, by John Masters,

Canadian O & G wildcatter

““A year from nowA year from now you may wish you may wish

You had You had started today.”started today.”

—Karen Lamb

““It’s It’s always always showtime.”showtime.”

—David D’Alessandro, Career Warfare

EXEXCELLE CELLE ALWALWAYSAYS..