Could Thoroughly Rotten Times Be The Ultimate Opportunity For Greatness/Excellence?*
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Transcript of Could Thoroughly Rotten Times Be The Ultimate Opportunity For Greatness/Excellence?*
Could Thoroughly Could Thoroughly Rotten TimesRotten Times
Be The Ultimate Opportunity Be The Ultimate Opportunity For Greatness/Excellence?*For Greatness/Excellence?*
(*Hint: The Answer(*Hint: The Answer May Be/Is “Yes.”)May Be/Is “Yes.”)(*Hint: What’s the (*Hint: What’s the
Alternative?)Alternative?)
London/15.01.09London/15.01.09
““When the seas are When the seas are calm, all ships alike calm, all ships alike show mastership in show mastership in floating.”floating.” —WSC* —WSC* (*with apologies)(*with apologies)
On NELSON:On NELSON: “[other] “[other] admirals more admirals more frightened of frightened of losing than losing than
anxious to win”anxious to win”
Tom Peters’Tom Peters’
Excellence.Excellence.Always.Always.
Results Group/Auckland/19.02.09Results Group/Auckland/19.02.09
NOTENOTE:: To appreciateTo appreciate this presentation this presentation [and ensure [and ensure
that it is not a that it is not a messmess],], you need you need Microsoft fonts:Microsoft fonts:
“Showcard Gothic,”“Showcard Gothic,” “Ravie,”“Ravie,” “Chiller”“Chiller”
andand “Verdana”“Verdana”
Excellence1982: The Bedrock “Eight Basics”Excellence1982: The Bedrock “Eight Basics”
1. A Bias for 1. A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. 3. AutonomAutonomyy and and EntreEntreppreneurshireneurshipp4. Productivity Through 4. Productivity Through PeoPeopplele5. 5. Hands OnHands On, , Value-DrivenValue-Driven6. 6. Stick toStick to the Knitting the Knitting7. 7. SimSimpplele Form, Form, LeanLean Staff Staff8. Simultaneous 8. Simultaneous Loose-TightLoose-Tight Properties” Properties”
““Breakthrough” 82*Breakthrough” 82*
People! People! CustomersCustomers
! ! Action! Action! Values! Values!
**In Search of ExcellenceIn Search of Excellence
EnterpriseEnterprise* ** (*at its best):* ** (*at its best): An An emotionalemotional, , vitalvital, , innovativeinnovative, , jojoyyfulful, , creativecreative, , entreentreppreneurialreneurial endeavor endeavor that elicits maximum that elicits maximum
concerted humanconcerted human potential in the potential in the wholeheartedwholehearted serviceservice of others of others.****Employees, Customers, Suppliers, Communities, Owners, Temporary partners**Employees, Customers, Suppliers, Communities, Owners, Temporary partners
Organizations Organizations existexist to to serveserve. Period.. Period.
Leaders Leaders live live toto serveserve. Period.. Period.
… … no less than no less than CathedralsCathedrals in which the full and in which the full and
awesome power of the awesome power of the Imagination and Spirit and Imagination and Spirit and native Entrepreneurial flairnative Entrepreneurial flair
of diverse individualsof diverse individuals is is unleashed in passionate unleashed in passionate pursuit of … Excellence.pursuit of … Excellence.
““The role of the Director is to The role of the Director is to create a space where the actors create a space where the actors
and actresses canand actresses can become become more than they’ve ever more than they’ve ever been before, more than been before, more than
they’ve dreamed of they’ve dreamed of beingbeing.”.” —Robert Altman, Oscar acceptance speech—Robert Altman, Oscar acceptance speech
““Business has to give Business has to give people enriching, people enriching, rewarding lives,rewarding lives,
or it's simply not or it's simply not worth doing.”worth doing.” —Richard Branson—Richard Branson
““Too Much Cost, Not Enough Value” … “Too Too Much Cost, Not Enough Value” … “Too Much Speculation, Not Enough Investment” … Much Speculation, Not Enough Investment” … “Too Much Complexity, Not Enough Simplicity” “Too Much Complexity, Not Enough Simplicity” … “Too Much Counting, Not Enough Trust” … … “Too Much Counting, Not Enough Trust” …
“Too Much Business Conduct, Not Enough “Too Much Business Conduct, Not Enough Professional Conduct” … “Too Much Professional Conduct” … “Too Much
Salesmanship, Not Enough Stewardship” … Salesmanship, Not Enough Stewardship” … “Too Much Focus on Things, Not Enough Focus “Too Much Focus on Things, Not Enough Focus
on Commitment” … “Too Many Twenty-first on Commitment” … “Too Many Twenty-first Century Values, Not Enough Eighteenth-Century Values, Not Enough Eighteenth-
Century Values” … “Too Much ‘Success,’ Not Century Values” … “Too Much ‘Success,’ Not Enough Character” Enough Character” —chapter titles from John Bogle, —chapter titles from John Bogle, Enough. The Measures of Money, Business, and LifeEnough. The Measures of Money, Business, and Life (Bogle is (Bogle is
founder of the Vanguard Mutual Fund Group)founder of the Vanguard Mutual Fund Group)
““Managers have lost dignity over the Managers have lost dignity over the past decade in the face of wide spread past decade in the face of wide spread institutional breakdown of trust and institutional breakdown of trust and self-policing in business. To regain self-policing in business. To regain
society’s trust, we believe that society’s trust, we believe that business leaders must embrace a way business leaders must embrace a way
of looking at their role that goes of looking at their role that goes beyond their responsibility to the beyond their responsibility to the shareholders to include a civic and shareholders to include a civic and
personal commitment to their duty as personal commitment to their duty as institutional custodians. In other words, institutional custodians. In other words,
it is time hat management became a it is time hat management became a profession.”profession.” —Rakesh Khurana &—Rakesh Khurana &
Niin Nohria, “I’s ime To Make Management a True Niin Nohria, “I’s ime To Make Management a True Profession,” HBR/10.08Profession,” HBR/10.08
If Not Excellence, What?If Not Excellence, What?If Not Excellence Now, When?If Not Excellence Now, When?The “19 Es” of ExcellenceThe “19 Es” of Excellence
EnthusiasmEnthusiasm.. (Be an irresistible force of nature!) (Be an irresistible force of nature!)
EnerEnergy.gy. (Be fire! Light fires!)(Be fire! Light fires!)
ExuberanceExuberance.. (Vibrate—cause earthquakes!)(Vibrate—cause earthquakes!)
ExecutionExecution.. (Do it! Now! Get it done! Barriers are baloney! Excuses are for wimps! Accountability is gospel! (Do it! Now! Get it done! Barriers are baloney! Excuses are for wimps! Accountability is gospel! Adhere to the Bill Parcells doctrine: “Blame nobody! Expect nothing! Do something!”)Adhere to the Bill Parcells doctrine: “Blame nobody! Expect nothing! Do something!”)
EmEmppowermentowerment.. (Respect and appreciation! Always ask, “What do you think?”(Respect and appreciation! Always ask, “What do you think?” Then: Listen! Liberate! Celebrate! 100% innovators or bust!)Then: Listen! Liberate! Celebrate! 100% innovators or bust!)
EdEdgginessiness.. (Perpetually dancing at the frontier, and a little or a lot beyond.)(Perpetually dancing at the frontier, and a little or a lot beyond.)
EnraEnraggeded.. (Determined to challenge & change the status quo!)(Determined to challenge & change the status quo!)
EnEnggaaggeded.. (Addicted to MBWA/Managing By Wandering Around. In touch. Always.) (Addicted to MBWA/Managing By Wandering Around. In touch. Always.)
ElectronicElectronic.. (Partners with the world 60/60/24/7 via electronic community building(Partners with the world 60/60/24/7 via electronic community building and entanglement of every sort. Crowdsourcing/doing power!)and entanglement of every sort. Crowdsourcing/doing power!)
EncomEncomppassingassing.. (Relentlessly pursue diverse opinions—the more diversity the merrier! Diversity per se “works”!)(Relentlessly pursue diverse opinions—the more diversity the merrier! Diversity per se “works”!)
EmotionEmotion.. (The alpha. The omega. The essence of leadership. The essence of sales. (The alpha. The omega. The essence of leadership. The essence of sales. The essence of marketing. The essence. Period. Acknowledge it.)The essence of marketing. The essence. Period. Acknowledge it.)
EmEmppathathy.y. (Connect, connect, connect with others’ reality and aspirations! “Walk(Connect, connect, connect with others’ reality and aspirations! “Walk in the other person’s shoes”—until the soles have holes!)in the other person’s shoes”—until the soles have holes!)
ExExpperienceerience.. (Life is theater! Make every activity-contact memorable! Standard:(Life is theater! Make every activity-contact memorable! Standard: “ “Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.)Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.)
EliminateEliminate.. (Keep it simple!)(Keep it simple!)
ErrorErrorppronerone.. (Ready! Fire! Aim! Try a lot of stuff and make a lot of booboos and then try some more stuff(Ready! Fire! Aim! Try a lot of stuff and make a lot of booboos and then try some more stuff and make some more booboos—all of it at the speed of light!)and make some more booboos—all of it at the speed of light!)
EvenhandedEvenhanded.. (Straight as an arrow! Fair to a fault! Honest as Abe!)(Straight as an arrow! Fair to a fault! Honest as Abe!)
ExpectationsExpectations.. (Michelangelo: “The greatest danger for most of us is not that our aim is too high and we miss it, (Michelangelo: “The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.” Amen!)but that it is too low and we reach it.” Amen!)
EudaimoniaEudaimonia.. (Pursue the highest of human moral purpose—the core of Aristotle’s philosophy. Be of service. (Pursue the highest of human moral purpose—the core of Aristotle’s philosophy. Be of service. Always.)Always.)
ExcellenceExcellence.. (The only standard! Never an exception! Start now! No excuses! If not Excellence, what?(The only standard! Never an exception! Start now! No excuses! If not Excellence, what? If not Excellence now, when?)If not Excellence now, when?)
““Mr. Watson, Mr. Watson, how long does it how long does it take to achieve take to achieve
Excellence?”Excellence?”
Commerce Bank: From “Service” to Commerce Bank: From “Service” to “Experience”“Experience”
7X. 730A-7X. 730A-800P. F12A.800P. F12A.
**Commerce/7 days/730A-8P/MidnightCommerce/7 days/730A-8P/Midnight Friday/645A.M./2 for “No”Friday/645A.M./2 for “No”*Larry Janesky/Jim Penman/not cool *Larry Janesky/Jim Penman/not cool can be very coolcan be very cool*Granite Rock/Cross it off/Wash trucks*Granite Rock/Cross it off/Wash trucks*Elgin Corrugated Box/Promised vs*Elgin Corrugated Box/Promised vs DeliveredDelivered*5X/Acquire vs maintain (Higher *5X/Acquire vs maintain (Higher “ “market share” current)market share” current)*Reichheld/One question*Reichheld/One question*Comeback>Perfection*Comeback>Perfection*Apologize/“Bedside manner”/Lawsuits*Apologize/“Bedside manner”/Lawsuits*“Thank you”/10 years*“Thank you”/10 years*Make the call/3 minutes*Make the call/3 minutes*Listen up/18*Listen up/18
The Commerce Bank ModelThe Commerce Bank Model
“every computer at commerce bank has a “every computer at commerce bank has a
specialspecial redred keykey on it that on it that
says, ‘found something stupid that we are says, ‘found something stupid that we are doing that interferes with our ability to service doing that interferes with our ability to service
the customer? Tell us about it, and if we the customer? Tell us about it, and if we agree, we will give you $50.’”agree, we will give you $50.’”
Source: Source: Fans! Not customers. How Commerce Bank Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Created a Super-growth Business in a No-growth
IndustryIndustry, Vernon Hill & Bob Andelman, Vernon Hill & Bob Andelman
Experience: “Rebel Lifestyle!”
“What we sell is the “What we sell is the ability for a 43-year-old ability for a 43-year-old accountant to dress in accountant to dress in
black leather, ride black leather, ride through small towns and through small towns and
have people be afraidhave people be afraid of him.” of him.”
HarleyHarley exec, quoted in Results-Based Leadership
““Experiences Experiences are as distinct are as distinct
from services as from services as services are from services are from goods.”goods.” —Joe Pine & Jim Gilmore, The
Experience Economy: Work Is Theatre & Every Business a Stage
The Commerce Bank ModelThe Commerce Bank Model
“cost cutting “cost cutting is a death is a death spiral.”spiral.”
Source: Source: Fans! Not customers. How Commerce Bank Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Created a Super-growth Business in a No-growth
IndustryIndustry, Vernon Hill & Bob Andelman, Vernon Hill & Bob Andelman
The Commerce Bank ModelThe Commerce Bank Model
““overover-invest in -invest in our people, our people, overover--
invest in our invest in our facilities.”facilities.”
Source: Source: Fans! Not customers. How Commerce Bank Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Created a Super-growth Business in a No-growth
IndustryIndustry, Vernon Hill & Bob Andelman, Vernon Hill & Bob Andelman
WallopWal*Mart16*WallopWal*Mart16*
*Or: Why it’s so ABSURDLY EASYABSURDLY EASY to BEATBEAT a GIANTGIANT Company
“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The
answer seems obvious: Buy a Buy a very large one very large one and just waitand just wait.”.”
—Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics
The “Small Guys” Guide: Wallop Wal*Mart16
**Niche-aimed.Niche-aimed. (Never, ever “all things for all people,” a “mini- (Never, ever “all things for all people,” a “mini-Wal*Mart.)Wal*Mart.)
**Never attack the monsters head on!Never attack the monsters head on! (Instead steal niche (Instead steal niche business and lukewarm customers.)business and lukewarm customers.)
**““DramaticallDramatically y DifferentDifferent”” (La Difference ... within our community, (La Difference ... within our community,
our industry regionally, etc … is as obvious as the end of one’s nose!) our industry regionally, etc … is as obvious as the end of one’s nose!) (THIS IS WHERE MOST MIDGETS COME UP SHORT.)(THIS IS WHERE MOST MIDGETS COME UP SHORT.)
**Compete on value/experience/intimacy, not price.Compete on value/experience/intimacy, not price. (You (You ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.)ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.)
**Emotional bond with Clients, Vendors.Emotional bond with Clients, Vendors. (BEAT THE BIGGIES (BEAT THE BIGGIES ON EMOTION/CONNECTION!!)ON EMOTION/CONNECTION!!)
““You do not merely want to be You do not merely want to be
the best of the best.the best of the best. You You want to be want to be
considered the considered the onlonlyy ones who ones who do what do what yyou ou
dodo.”.” —Jerry Garcia—Jerry Garcia
The “Small Guys” Guide: Wallop Wal*Mart16
**Hands-on, emotional leadership.Hands-on, emotional leadership. (“We are a great & (“We are a great & cool & intimate & joyful & dramatically different team working to cool & intimate & joyful & dramatically different team working to transform our Clients lives via Consistently Incredible transform our Clients lives via Consistently Incredible Experiences!”)Experiences!”)
**A community star!A community star! (“Sell” local-ness per se. Sell the hell (“Sell” local-ness per se. Sell the hell out of it!)out of it!)
**An incredible experience, from the first to last An incredible experience, from the first to last moment—and then in the follow-up!moment—and then in the follow-up! (“These guys (“These guys are cool! They ‘get’ me! They love me!”)are cool! They ‘get’ me! They love me!”)
**DESIGN DRIVEN!DESIGN DRIVEN! (“Design” is a premier weapon-in- (“Design” is a premier weapon-in-pursuit-of-the sublime for small-ish enterprises, including the pursuit-of-the sublime for small-ish enterprises, including the professional services.)professional services.)
The “Small Guys” Guide: Wallop Wal*Mart16
**Employer of choice.Employer of choice. (A very cool, well-paid (A very cool, well-paid place to work/learning and growth experience in at place to work/learning and growth experience in at least the short term … marked by notably progressive least the short term … marked by notably progressive policies.) (THIS IS EMINENTLY DO-ABLE!!)policies.) (THIS IS EMINENTLY DO-ABLE!!)
**Sophisticated use of information Sophisticated use of information technologytechnology. (Small-“ish” is no excuse for “small . (Small-“ish” is no excuse for “small aims”/execution in IS/IT!)aims”/execution in IS/IT!)
**Web-power!Web-power! (The Web can make very small very (The Web can make very small very big … if the product-service is super-cool and one big … if the product-service is super-cool and one purposefully masters buzz/viral marketing.)purposefully masters buzz/viral marketing.)
**Innovative!Innovative! (Must keep renewing and expanding (Must keep renewing and expanding and revising and re-imagining “the promise” to and revising and re-imagining “the promise” to employees, the customer, the community.)employees, the customer, the community.)
The “Small Guys” Guide: Wallop Wal*Mart16
**Brand-Lovemark* Brand-Lovemark* (*Kevin Roberts)(*Kevin Roberts) Maniacs Maniacs! ! (“Branding” is not just for big folks with big budgets. And modest (“Branding” is not just for big folks with big budgets. And modest size is actually a Big Advantage in becoming a local-regional-size is actually a Big Advantage in becoming a local-regional-niche “lovemark.”)niche “lovemark.”)
**Focus on women-as-clients.Focus on women-as-clients. (Most don’t. How stupid.) (Most don’t. How stupid.)
**Excellence!Excellence! (A small player … per me … (A small player … per me …
has no right or reason to exist unless they are in Relentless has no right or reason to exist unless they are in Relentless Pursuit of Excellence. One earns the right—one damn day and Pursuit of Excellence. One earns the right—one damn day and client experience at a time!—to beat the Big Guys in your chosen client experience at a time!—to beat the Big Guys in your chosen niche!)niche!)
Small Giants: Small Giants: Companies That Companies That
Choose To Be Choose To Be Great Instead Great Instead Of BigOf Big —by Bo Burlingham
Small Giants/Bo Burlingham
"First, I could see that, unlike most entrepreneurs, I could see that, unlike most entrepreneurs, their founders and leaders had recognized the full their founders and leaders had recognized the full range of choices they had about the type of company range of choices they had about the type of company they would create."they would create."
"Second, the leaders had the leaders had overcome the enormous overcome the enormous pressures on successful companies to take paths they pressures on successful companies to take paths they had not chosenhad not chosen and did not necessarily want to and did not necessarily want to follow." follow."
"Third, each company had an each company had an extraordinarily intimate extraordinarily intimate relationship with the local city, town, or countyrelationship with the local city, town, or county in in which it did business -- a relationship that went well which it did business -- a relationship that went well beyond the usual concept of `giving back.'" beyond the usual concept of `giving back.'"
"Fourth, they cultivated they cultivated exceptionally intimate exceptionally intimate relationships with customers and suppliersrelationships with customers and suppliers, based on , based on personal contact, one-on-one interaction, and mutual personal contact, one-on-one interaction, and mutual commitment to delivering on promises." commitment to delivering on promises."
Small Giants/Bo Burlingham
"Fifth, the companies also had what struck me as the companies also had what struck me as unusually unusually intimate workplacesintimate workplaces." ."
"Sixth, I was impressed by the variety of corporate I was impressed by the variety of corporate structures and modes of governance that these structures and modes of governance that these companies had come up with." companies had come up with."
"Finally, I noticed the I noticed the passionpassion that the leaders that the leaders brought to what the company did. brought to what the company did. They loved the They loved the subject mattersubject matter, whether it be music, safety lighting, , whether it be music, safety lighting, food, special effects, constant torque hinges, beer, food, special effects, constant torque hinges, beer, records storage, construction, dining, or fashion."records storage, construction, dining, or fashion."
Goldmann Goldmann ProduktionsProduktions
(11/50%/$5M/”dip and coat,” expensive (11/50%/$5M/”dip and coat,” expensive pigments vs “through coloring,” fadesBekro pigments vs “through coloring,” fadesBekro
Chemie)Chemie)
*Commerce/7 days/730A-8P/Midnight*Commerce/7 days/730A-8P/Midnight Friday/645A.M./2 for “No”/Friday/645A.M./2 for “No”/ Red Button/Dog biscuitsRed Button/Dog biscuits**Larry Janesky/Jim Penman/not cool Larry Janesky/Jim Penman/not cool can be very cool can be very cool *Granite Rock/Cross it off/Wash trucks*Granite Rock/Cross it off/Wash trucks*Elgin Corrugated Box/Promised vs*Elgin Corrugated Box/Promised vs DeliveredDelivered*5X/Acquire vs maintain (Higher *5X/Acquire vs maintain (Higher “ “market share” current)market share” current)*Reichheld/One question*Reichheld/One question*Comeback>Perfection*Comeback>Perfection*Apologize/“Bedside manner”/Lawsuits*Apologize/“Bedside manner”/Lawsuits*“Thank you”/10 years*“Thank you”/10 years*Make the call/3 minutes*Make the call/3 minutes
Jim’s Mowing CanadaJim’s Mowing CanadaJim’s Mowing UKJim’s Mowing UKJim’s AntennasJim’s Antennas
Jim’s BookkeepingJim’s BookkeepingJim’s Building MaintenanceJim’s Building Maintenance
Jim’s Carpet CleaningJim’s Carpet CleaningJim’s Car CleaningJim’s Car Cleaning
Jim’s Computer ServicesJim’s Computer Services
Jim’s Dog WashJim’s Dog WashJim’s Driving SchoolJim’s Driving School
Jim’s FencingJim’s FencingJim’s FloorsJim’s Floors
Jim’s PaintingJim’s PaintingJim’s PavingJim’s Paving
Jim’s Pergolas [gazebos]Jim’s Pergolas [gazebos]Jim’s Pool CareJim’s Pool Care
Jim’s Pressure CleaningJim’s Pressure CleaningJim’s RoofingJim’s Roofing
Jim’s Security DoorsJim’s Security DoorsJim’s TreesJim’s Trees
Jim’s Window CleaningJim’s Window CleaningJim’s WindscreensJim’s Windscreens
Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group
*Basement Systems Inc.*Basement Systems Inc.*Larry Janesky*Larry Janesky**Dry Basement ScienceDry Basement Science (115,000!)(115,000!)
*1990: $0; 2003: $13M; *1990: $0; 2003: $13M; 2007: 2007:
$62,000,000$62,000,000
*Commerce/7 days/730A-8P/Midnight*Commerce/7 days/730A-8P/Midnight Friday/645A.M./2 for “No”/Friday/645A.M./2 for “No”/ Red Button/Dog biscuitsRed Button/Dog biscuits*Larry Janesky/Jim Penman/not cool *Larry Janesky/Jim Penman/not cool can be very cool can be very cool *Granite Rock/Cross it off/Wash trucks*Granite Rock/Cross it off/Wash trucks*Elgin Corrugated Box/Promised vs*Elgin Corrugated Box/Promised vs DeliveredDelivered*5X/Acquire vs maintain (Higher *5X/Acquire vs maintain (Higher “ “market share” current)market share” current)*Reichheld/One question*Reichheld/One question*Comeback>Perfection*Comeback>Perfection**Apologize/“Bedside manner”/LawsuitsApologize/“Bedside manner”/Lawsuits**“Thank you”/10 years“Thank you”/10 years**Make the call/3 minutesMake the call/3 minutes
““I regard I regard aappoloologgizinizing as the g as the most magical, healing, most magical, healing,
restorative gesture human restorative gesture human beings can make. It is the beings can make. It is the
centerpiece of my work with centerpiece of my work with executives who want to get executives who want to get better.”better.” —Marshall Goldsmith—Marshall Goldsmith, What Got You Here , What Got You Here
Won’t Get You There: How Successful People Become Even Won’t Get You There: How Successful People Become Even More Successfu. More Successfu.
Relationships (of all varieties): THERE THERE ONCE WAS A TIME WHEN ONCE WAS A TIME WHEN A A THREETHREE--MINUTEMINUTE PHONEPHONE
CALLCALL WOULD HAVE WOULD HAVE AVOIDED SETTING OFF AVOIDED SETTING OFF
THE DOWNWARD SPIRAL THE DOWNWARD SPIRAL THAT RESULTED IN A THAT RESULTED IN A COMPLETE RUPTURE.COMPLETE RUPTURE.
THE PROBLEM IS THE PROBLEM IS RARELY/NEVER THE RARELY/NEVER THE
PROBLEM. THE PROBLEM. THE RESPONSE TO THE RESPONSE TO THE
PROBLEM INVARIABLY PROBLEM INVARIABLY ENDS UP BEING THE ENDS UP BEING THE
REAL PROBLEMREAL PROBLEM.**PERCEPTION IS ALL THERE IS!*PERCEPTION IS ALL THERE IS!
““Courtesies of a small Courtesies of a small and trivial character are and trivial character are
the ones which strike the ones which strike deepest in the grateful deepest in the grateful
and appreciating heart.”and appreciating heart.”
—Henry Clay
*Commerce/7 days/730A-8P/Midnight*Commerce/7 days/730A-8P/Midnight Friday/645A.M./2 for “No”Friday/645A.M./2 for “No”*Larry Janesky/Jim Penman/not cool *Larry Janesky/Jim Penman/not cool can be very coolcan be very cool*Granite Rock/Cross it off/Wash trucks*Granite Rock/Cross it off/Wash trucks*Elgin Corrugated Box/Promised vs*Elgin Corrugated Box/Promised vs DeliveredDelivered*5X/Acquire vs maintain (Higher *5X/Acquire vs maintain (Higher “ “market share” current)market share” current)*Reichheld/One question*Reichheld/One question*Comeback>Perfection*Comeback>Perfection*Apologize/“Bedside manner”/Lawsuits*Apologize/“Bedside manner”/Lawsuits*“Thank you”/10 years*“Thank you”/10 years*Make the call/3 minutes*Make the call/3 minutes**Listen up/18Listen up/18
*$100+ purchase/3-cent lemon*$100+ purchase/3-cent lemon*National “Brand”/2-cent candy*National “Brand”/2-cent candy*Disney parking lot attendants (PPSI)*Disney parking lot attendants (PPSI)**Dave Linnegar/REMAX/“Life successDave Linnegar/REMAX/“Life success company” company” **Hal Rosenbluth/“The Customer ComesHal Rosenbluth/“The Customer Comes Second”/Tears for Second”/Tears for HalHal*Griffin–Planetree/5 Pianos/“Kindness*Griffin–Planetree/5 Pianos/“Kindness is free”/0-15/Cookie smells/Map/#6is free”/0-15/Cookie smells/Map/#6*Flowers/No cars/Street sweeper/*Flowers/No cars/Street sweeper/ Mechanics’ business cards (TAC/Mechanics’ business cards (TAC/ Drive by)Drive by)*Bill & Dave knew/MBWA (“WALK”)*Bill & Dave knew/MBWA (“WALK”)
The Customer The Customer Comes Second: Comes Second: Put Your People Put Your People First and Watch First and Watch ’em Kick Butt’em Kick Butt —Hal —Hal
Rosenbluth andRosenbluth and Diane McFerrin Peters* (*no relation)Diane McFerrin Peters* (*no relation)
““You have to You have to treat your treat your
employees like employees like customers.”customers.” —Herb Kelleher, —Herb Kelleher,
complete answer, upon being asked his “secrets to success”complete answer, upon being asked his “secrets to success”
Source: Joe Nocera, Source: Joe Nocera, NYTNYT, “Parting Words of an Airline Pioneer,” on the occasion , “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots
union took out a full-page ad in USA Today thanking HK for all he had done; union took out a full-page ad in USA Today thanking HK for all he had done; across theacross the
way in Dallas American Airlines’ pilots were picketing the Annual Meeting)way in Dallas American Airlines’ pilots were picketing the Annual Meeting)
*$100+ purchase/3-cent lemon*$100+ purchase/3-cent lemon*National “Brand”/2-cent candy*National “Brand”/2-cent candy*Disney parking lot attendants (PPSI)*Disney parking lot attendants (PPSI)*Dave Linnegar/REMAX/“Life success*Dave Linnegar/REMAX/“Life success company” company” *Hal Rosenbluth/“The Customer Comes*Hal Rosenbluth/“The Customer Comes Second”/Tears for Second”/Tears for HalHal**Griffin–Planetree/5 Pianos/“KindnessGriffin–Planetree/5 Pianos/“Kindness is free”/0-15/Cookie smells/Map/#6is free”/0-15/Cookie smells/Map/#6*Flowers/No cars/Street sweeper/*Flowers/No cars/Street sweeper/ Mechanics’ business cards (TAC/Mechanics’ business cards (TAC/ Drive by)Drive by)*Bill & Dave knew/MBWA (“WALK”)*Bill & Dave knew/MBWA (“WALK”)
Press Ganey AssocPress Ganey Assoc:: 139,380139,380 former former patients from patients from 225225 hospitals: hospitals:
nonenone of THE top 15 of THE top 15
factors determining factors determining PPatient atient
SSatisfaction referred to patient’s atisfaction referred to patient’s health health outcomeoutcome
P.S.P.S. directldirectly related to y related to StaffStaff InteractionInteraction
P.P.S.P.P.S. directldirectly correlated with y correlated with EmploEmployyee ee SatisfactionSatisfaction
Source: Source: Putting Patients FirstPutting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel, Susan Frampton, Laura Gilpin, Patrick Charmel
““There is a misconception that supportive interactions require There is a misconception that supportive interactions require more staff or more time and are therefore more costly. Although more staff or more time and are therefore more costly. Although
labor costs are a substantial part of any hospital budget, the labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget. interactions themselves add nothing to the budget.
Kindness is Kindness is freefree.. Listening to patients or answering their Listening to patients or answering their
questions costs nothing. It can be argued that negative questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive to their interactions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very costly. … needs or limiting their sense of control—can be very costly. …
Angry, frustrated or frightened patients may be combative, Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring far more time withdrawn and less cooperative—requiring far more time than it would have taken to interact with them initially in a than it would have taken to interact with them initially in a
positive way.”positive way.” ——Putting Patients FirstPutting Patients First, Susan Frampton, , Susan Frampton, Laura Gilpin, Patrick CharmelLaura Gilpin, Patrick Charmel
*$100+ purchase/3-cent lemon*$100+ purchase/3-cent lemon*National “Brand”/2-cent candy*National “Brand”/2-cent candy*Disney parking lot attendants (PPSI)*Disney parking lot attendants (PPSI)*Dave Linnegar/REMAX/“Life success*Dave Linnegar/REMAX/“Life success company” company” *Hal Rosenbluth/“The Customer Comes*Hal Rosenbluth/“The Customer Comes Second”/Tears for Second”/Tears for HalHal*Griffin–Planetree/5 Pianos/“Kindness*Griffin–Planetree/5 Pianos/“Kindness is free”/0-15/Cookie smells/Map/#6is free”/0-15/Cookie smells/Map/#6*Flowers/No cars/Street sweeper/*Flowers/No cars/Street sweeper/ Mechanics’ business cards (TAC/Mechanics’ business cards (TAC/ Drive by)Drive by)**Bill & Dave knew/MBWA (“WALK”)Bill & Dave knew/MBWA (“WALK”)
*Container Store/2X*Container Store/2X*Circuit City/Geek Squad (vs Best*Circuit City/Geek Squad (vs Best Buy/fire senior, hire junior)Buy/fire senior, hire junior)*Bloomberg/Send flowers*Bloomberg/Send flowers*Shrink wrap/2X*Shrink wrap/2X*Bag size/$B*Bag size/$B*Big carts/1.5X*Big carts/1.5X*Lights/Wide isles*Lights/Wide isles**Nudgery/Default, +50%/6.5 v 3.5, etcNudgery/Default, +50%/6.5 v 3.5, etc*Wegmans/#1*Wegmans/#1*BIDVest/BKK (Commerce/Radio City*BIDVest/BKK (Commerce/Radio City Music Hall)Music Hall)*First things first/Self-awareness*First things first/Self-awareness
““Design is Design is evereveryythinthing. g. Everything is Everything is desidesiggnn.”.”
““We are We are allall designers.” designers.”
Inspiration:Inspiration: The Power of Design: A Force for The Power of Design: A Force for Transforming Everything, Transforming Everything, Richard FarsonRichard Farson
401(k) active opt-in:401(k) active opt-in: 45%45%401(k) as default:401(k) as default: 86%86%Source: Source: New York TimesNew York Times, 1202.08 (research by Richard, 1202.08 (research by Richard Thaler, co-author Thaler, co-author NudgeNudge))
Behavioral Primacy!
E.g.: plate size; E.g.: plate size; location of platters, location of platters,
6.56.5 feet Away = feet Away =
--6363% % “Seconds” “Seconds”
Source: Brian Wansink, Source: Brian Wansink, Mindless EatingMindless Eating (20 lbs per year; 200 decisions per day) (20 lbs per year; 200 decisions per day)
90K in U.S.A. 90K in U.S.A. ICUsICUs on any on any given day; given day; 178178 steps/day steps/day
in ICU. in ICU.
50%50% stays result stays result
in “serious complication”in “serious complication”
Source: Atul Gawande, “The Checklist” (Source: Atul Gawande, “The Checklist” (New YorkerNew Yorker, 1210.07), 1210.07)
****Peter PronovostPeter Pronovost, Johns Hopkins, , Johns Hopkins, 20012001**Checklist, line infections**Checklist, line infections**1/3**1/3rdrd at least one error when he started at least one error when he started**Nurses/permission to stop procedure **Nurses/permission to stop procedure if doc, other not following checklistif doc, other not following checklist**In 1 year, 10-day line-infection rate:**In 1 year, 10-day line-infection rate:
11% to … 11% to … 0%0%
Source: Atul Gawande, “The Checklist” (Source: Atul Gawande, “The Checklist” (New YorkerNew Yorker, 1210.07), 1210.07)
**Docs, nurses make own **Docs, nurses make own checklists on whateverchecklists on whatever process-procedure they choose process-procedure they choose**Within **Within weeksweeks, average stay in , average stay in
ICUICU down down 50%50%Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07)Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07)
““Everything matters”Everything matters”
-80%-80%Source:Source: Nudge,Nudge, Richard Thaler and Cass Richard Thaler and Cass
Sunstein, etching of fly in the urinalSunstein, etching of fly in the urinal reduces “spillage” by 80%, Schiphol Airportreduces “spillage” by 80%, Schiphol Airport
Why We Buy/Nudge/Sway/ Why We Buy/Nudge/Sway/ Kahneman-TverskyKahneman-TverskyNo waste baskets/paper recyclingNo waste baskets/paper recyclingCases vs chartsCases vs chartsDefault/401(k)/45% vs 86%Default/401(k)/45% vs 86%Designer next to the CEODesigner next to the CEOOpel plant away from factoryOpel plant away from factoryRickover’s chair/Sunlight in myRickover’s chair/Sunlight in my eyes/LBJ on the edge of the rugeyes/LBJ on the edge of the rugThank you notes/10 yearsThank you notes/10 years
Stew/Wrapped and loose fish/2XStew/Wrapped and loose fish/2XStew/No exit aislesStew/No exit aislesWal*Mart/Oversized cartsWal*Mart/Oversized cartsCoins with likenessesCoins with likenessesPost Office architecturePost Office architecturePat visits the Local presidentPat visits the Local presidentThom Mayer and the crossed armsThom Mayer and the crossed arms““Management” of body languageManagement” of body language (2/3rds of communication)(2/3rds of communication)
Prowl the bowels of theProwl the bowels of the organizationorganizationFirst question askedFirst question askedTop of the agendaTop of the agendaCalendar!Calendar!Checklist/Peter Pronovost/ICU lineChecklist/Peter Pronovost/ICU line infections/50%-0%infections/50%-0%Visible measures/Creech andVisible measures/Creech and billboardsbillboardsCreech/mechanics’ “drive by”Creech/mechanics’ “drive by”Food at frontFood at front
Seating arrangementSeating arrangementTable shapeTable shapePhysical arrangements (distance,Physical arrangements (distance, co-location, grand or not/Apple)co-location, grand or not/Apple)Geologists/GeophysicistsGeologists/GeophysicistsXFX/Cross-functional ExcellenceXFX/Cross-functional Excellence (meetings, talks, etc)(meetings, talks, etc)““The hang out axiom” (“We areThe hang out axiom” (“We are what we eat.”)what we eat.”)See greenery, recover faster See greenery, recover faster (map,(map, smell of cookies, pianos/smell of cookies, pianos/ Planetree)Planetree)Vary road crossing times/engageVary road crossing times/engage
Sexy voice/USAFSexy voice/USAFWalls of “yesterday” or Walls of “yesterday” or “tomorrow”“tomorrow”Staff “lives with” lineStaff “lives with” line““Broken windows”-“beer and pissBroken windows”-“beer and piss patrol”/sense of order, smallpatrol”/sense of order, small crimes beget large onescrimes beget large onesWashington and “dress for Washington and “dress for success”/winter 1776success”/winter 1776Dress codeDress codeFly in the urinal/-80%Fly in the urinal/-80%Parking lot location/elevatorParking lot location/elevator speed/food courtspeed/food court
Plate size/distance from “seconds” Plate size/distance from “seconds” (6.5 feet = 63%)(6.5 feet = 63%)>50 feet = 50 miles/T Allen>50 feet = 50 miles/T AllenCasual gathering places/ “nooks”/Casual gathering places/ “nooks”/ 3M-Austin3M-AustinWalk down the stairs once a month/Walk down the stairs once a month/ 9-11 survivor9-11 survivorGlasses in the cup (two weeks)Glasses in the cup (two weeks)TP party prepTP party prep“Renegade” buildings“Renegade” buildingsWelcoming reception area (Insta-Welcoming reception area (Insta- “ “smell culture”)smell culture”)Burlington Police Department/Burlington Police Department/ decals on glasses/12.31.06decals on glasses/12.31.06
Bike at the door/Running shoesBike at the door/Running shoes next to the bednext to the bedMeasures/New (TP & Seabees)Measures/New (TP & Seabees)Reports (WIAR/Women’s InitiativeReports (WIAR/Women’s Initiative Annual Report/Deloitte & Annual Report/Deloitte & Touche)Touche)MBWAMBWAGrant sleep on the ground, Grant sleep on the ground, travel with one assistanttravel with one assistantPromotions/Deep dipPromotions/Deep dip“Small” personal gestures“Small” personal gesturesFocus/One inescapable campaign/Focus/One inescapable campaign/ Welch-GEWelch-GE
*Container Store/2X*Container Store/2X*Circuit City/Geek Squad (vs Best*Circuit City/Geek Squad (vs Best Buy/fire senior, hire junior)Buy/fire senior, hire junior)*Bloomberg/Send flowers*Bloomberg/Send flowers*Shrink wrap/2X*Shrink wrap/2X*Bag size/$B*Bag size/$B*Big carts/1.5X*Big carts/1.5X*Lights/Wide isles*Lights/Wide isles*Nudgery/Default, +50%/6.5 v 3.5, etc*Nudgery/Default, +50%/6.5 v 3.5, etc*Wegmans/#1*Wegmans/#1*BIDVest/BKK (Commerce/Radio City*BIDVest/BKK (Commerce/Radio City Music Hall)Music Hall)**First things first/Self-awarenessFirst things first/Self-awareness
““Being aware of Being aware of yourself and how you yourself and how you
affect everyone around affect everyone around you is what you is what
distinguishes a superior distinguishes a superior leader.”leader.” —Edie Seashore —Edie Seashore
((Strategy + BusinessStrategy + Business #45) #45)
““To develop others, To develop others, start with yourself.”start with yourself.”
—Marshall Goldsmith—Marshall Goldsmith
““How can a high-level How can a high-level leader like _____ be so out leader like _____ be so out
of touch with the truth of touch with the truth about himself? It’s more about himself? It’s more common than you would common than you would
imagine. In fact, the imagine. In fact, the higher up the ladder a higher up the ladder a leader climbs, the less leader climbs, the less
accurate his self-accurate his self-assessment is likely to assessment is likely to be. be. The The pproblem is an roblem is an acute lack of feedbackacute lack of feedback [especially on people [especially on people
issues].”issues].” —Daniel Goleman (et al.), —Daniel Goleman (et al.), The New LeadersThe New Leaders
*Container Store/2X*Container Store/2X*Circuit City/Geek Squad (vs Best*Circuit City/Geek Squad (vs Best Buy/fire senior, hire junior)Buy/fire senior, hire junior)*Bloomberg/Send flowers*Bloomberg/Send flowers*Shrink wrap/2X*Shrink wrap/2X*Bag size/$B*Bag size/$B*Big carts/1.5X*Big carts/1.5X*Lights/Wide isles*Lights/Wide isles*Nudgery/Default, +50%/6.5 v 3.5, etc*Nudgery/Default, +50%/6.5 v 3.5, etc*Wegmans/#1*Wegmans/#1*BIDVest/BKK (Commerce/Radio City*BIDVest/BKK (Commerce/Radio City Music Hall)Music Hall)*First things first/Self-awareness*First things first/Self-awareness
**Fred S./curiosity/“Who’s the mostFred S./curiosity/“Who’s the most interesting person you’ve met in theinteresting person you’ve met in the last 90 days? How do I contact him orlast 90 days? How do I contact him or her?”her?”*Innovation #1/You are who you hang*Innovation #1/You are who you hang out with./Customers/Vendors/Lunchout with./Customers/Vendors/Lunch dates/Vacations/Community contacts/dates/Vacations/Community contacts/ Board members/etc.Board members/etc.*#1. Period. Hiring.*#1. Period. Hiring.*#1T. Promoting./10 in 5*#1T. Promoting./10 in 5*Stranger’s funeral/Net worth?*Stranger’s funeral/Net worth?*Decency/“Thoughtful in all we do.”*Decency/“Thoughtful in all we do.”*ROIR/Tea &Independence/Vlad goes*ROIR/Tea &Independence/Vlad goes partying/EVII dances & shakes thepartying/EVII dances & shakes the worldworld
Vanity Fair:Vanity Fair: “What is your most “What is your most marked characteristic?”marked characteristic?”
Mike Bloomberg:Mike Bloomberg:
““Curiosity.”Curiosity.”
*Fred S./curiosity/“Who’s the most*Fred S./curiosity/“Who’s the most interesting person you’ve met in theinteresting person you’ve met in the last 90 days? How do I contact him orlast 90 days? How do I contact him or her?”her?”**Innovation #1/You are who you hangInnovation #1/You are who you hang out with./Customers/Vendors/Lunchout with./Customers/Vendors/Lunch dates/Vacations/Community contacts/dates/Vacations/Community contacts/ Board members/etc.Board members/etc.*#1. Period. Hiring.*#1. Period. Hiring.*#1T. Promoting./10 in 5*#1T. Promoting./10 in 5*Stranger’s funeral/Net worth?*Stranger’s funeral/Net worth?*Decency/“Thoughtful in all we do.”*Decency/“Thoughtful in all we do.”*ROIR/Tea &Independence/Vlad goes*ROIR/Tea &Independence/Vlad goes partying/EVII dances & shakes thepartying/EVII dances & shakes the worldworld
The “We are what we eat” The “We are what we eat” axiom:axiom: At its core, At its core, evereveryy
(!!!) relationship-(!!!) relationship-partnership decision partnership decision (employee, vendor, (employee, vendor,
customer, etc) is a customer, etc) is a stratestrateggicic decision about:decision about:
“Innovate,“Innovate, ‘Yes’ or ‘Yes’ or ‘No’‘No’ ” ”
Measure “Strangeness”/Portfolio QualityMeasure “Strangeness”/Portfolio Quality
StaffStaffConsultantsConsultants
VendorsVendorsOut-sourcing Partners Out-sourcing Partners (#, Quality)(#, Quality)
Innovation Alliance PartnersInnovation Alliance PartnersCustomersCustomers
Competitors Competitors (who we “benchmark” against)(who we “benchmark” against)
Strategic Initiatives Strategic Initiatives Product Portfolio Product Portfolio (LineEx v. Leap)(LineEx v. Leap)
IS/IT ProjectsIS/IT ProjectsHQ LocationHQ LocationLunch MatesLunch Mates
LanguageLanguageBoardBoard
““[CEO A.G.] Lafley has shifted [CEO A.G.] Lafley has shifted P&G’sP&G’s focus on inventing all its own focus on inventing all its own
products to developing products to developing
others’ others’ inventions at inventions at least half the least half the timetime.. One successful One successful
example Mr. Clean Magic Eraser, example Mr. Clean Magic Eraser, based on a product found in anbased on a product found in an
Osaka market.” Osaka market.” ——FortuneFortune
““Diverse groups of problem solvers—groupsDiverse groups of problem solvers—groups of people with diverse tools—consistently of people with diverse tools—consistently outperformed groups of the best and the outperformed groups of the best and the
brightest. If I formed two groups, one brightest. If I formed two groups, one random (and therefore diverse) and one random (and therefore diverse) and one
consisting of the best individual performers, consisting of the best individual performers, the first group almost always did better. …the first group almost always did better. …
DiversityDiversity trumped trumped abilityability.”.” —Scott Page, —Scott Page, The Difference: How The Difference: How
the Power of Diversity Creates Better Groups,the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Diversity Firms, Schools, and Societies Diversity
*Fred S./curiosity/“Who’s the most*Fred S./curiosity/“Who’s the most interesting person you’ve met in theinteresting person you’ve met in the last 90 days? How do I contact him orlast 90 days? How do I contact him or her?”her?”*Innovation #1/You are who you hang*Innovation #1/You are who you hang out with./Customers/Vendors/Lunchout with./Customers/Vendors/Lunch dates/Vacations/Community contacts/dates/Vacations/Community contacts/ Board members/etc.Board members/etc.* * #1. Period. Hiring.#1. Period. Hiring.* * #1T. Promoting./10 in 5#1T. Promoting./10 in 5*Stranger’s funeral/Net worth?*Stranger’s funeral/Net worth?*Decency/“Thoughtful in all we do.”*Decency/“Thoughtful in all we do.”*ROIR/Tea &Independence/Vlad goes*ROIR/Tea &Independence/Vlad goes partying/EVII dances & shakes thepartying/EVII dances & shakes the worldworld
““In short, hiring is In short, hiring is the the most immost impportant ortant
asasppect of businessect of business and yet remains and yet remains
woefully woefully misunderstood.”misunderstood.”
Source: Source: Wall Street JournalWall Street Journal, 10.29.08,, 10.29.08, review ofreview of Who: The A Method for Hiring, Who: The A Method for Hiring,
Geoff Smart and Randy StreetGeoff Smart and Randy Street
““Development can Development can help great people be help great people be even better—even better—but if I but if I
had a dollar to spend, had a dollar to spend, I’d sI’d sppend 70 cents end 70 cents ggettinettingg the ri the rigght ht
pperson in the doorerson in the door.”.” ——
Paul Russell, Director, Leadership &Paul Russell, Director, Leadership & Development, Google Development, Google
Who?Who?
——The screening interviewThe screening interview——The “Topgrading The “Topgrading Interview”Interview” (story and patterns)(story and patterns)——Focused interviewFocused interview——Reference interview*Reference interview*
*Detailed rituals, goals, followup*Detailed rituals, goals, followup
Source: Source: Who: The A Method for Hiring, Who: The A Method for Hiring, Geoff Smart and Randy StreetGeoff Smart and Randy Street
*Fred S./curiosity/“Who’s the most*Fred S./curiosity/“Who’s the most interesting person you’ve met in theinteresting person you’ve met in the last 90 days? How do I contact him orlast 90 days? How do I contact him or her?”her?”*Innovation #1/You are who you hang*Innovation #1/You are who you hang out with./Customers/Vendors/Lunchout with./Customers/Vendors/Lunch dates/Vacations/Community contacts/dates/Vacations/Community contacts/ Board members/etc.Board members/etc.*#1. Period. Hiring.*#1. Period. Hiring.*#1T. Promoting./10 in 5*#1T. Promoting./10 in 5*Stranger’s funeral/Net worth?*Stranger’s funeral/Net worth?**Decency/“Thoughtful in all we do.”Decency/“Thoughtful in all we do.”*ROIR/Tea &Independence/Vlad goes*ROIR/Tea &Independence/Vlad goes partying/EVII dances & shakes thepartying/EVII dances & shakes the worldworld
ThoughtfulnessThoughtfulness is key to customer retention. is key to customer retention.ThoughtfulnessThoughtfulness is key to employee recruitment is key to employee recruitment and satisfaction.and satisfaction.Thoughtfulness Thoughtfulness is key to brand perception.is key to brand perception.ThoughtfulnessThoughtfulness is key to your ability to look in is key to your ability to look in the mirror—and tell your kids about your job.the mirror—and tell your kids about your job.““ThoughtfulnessThoughtfulness is free.” is free.”ThoughtfulnessThoughtfulness is key to speeding things up— is key to speeding things up— it reduces friction.it reduces friction.ThoughtfulnessThoughtfulness is key to transparency and is key to transparency and eveneven cost containment—it abets rather than stiflescost containment—it abets rather than stifles truth-telling.truth-telling.
*Fred S./curiosity/“Who’s the most*Fred S./curiosity/“Who’s the most interesting person you’ve met in theinteresting person you’ve met in the last 90 days? How do I contact him orlast 90 days? How do I contact him or her?”her?”*Innovation #1/You are who you hang*Innovation #1/You are who you hang out with./Customers/Vendors/Lunchout with./Customers/Vendors/Lunch dates/Vacations/Community contacts/dates/Vacations/Community contacts/ Board members/etc.Board members/etc.*#1. Period. Hiring.*#1. Period. Hiring.*#1T. Promoting./10 in 5*#1T. Promoting./10 in 5*Stranger’s funeral/Net worth?*Stranger’s funeral/Net worth?*Decency/“Thoughtful in all we do.”*Decency/“Thoughtful in all we do.”**ROIR/Tea &Independence/Vlad goesROIR/Tea &Independence/Vlad goes partying/EVII dances & shakes thepartying/EVII dances & shakes the worldworld
““Allied commands depend Allied commands depend on mutual confidence on mutual confidence [and this confidence] [and this confidence] is gained, above all is gained, above all
through the through the develodeveloppmentment of friendshiof friendshippss.”.”
——General D.D. Eisenhower, General D.D. Eisenhower, Armchair General Armchair General * (05.08)* (05.08)
*“Perhaps his most outstanding ability [at West Point] was*“Perhaps his most outstanding ability [at West Point] was the ease with which he made friends and earned the trust the ease with which he made friends and earned the trust of fellow cadets who came from widely varied backgrounds;of fellow cadets who came from widely varied backgrounds; it was a quality that would pay great dividends during his it was a quality that would pay great dividends during his
future coalition command.”future coalition command.”
““Berezovsky … came under attack from the newlyBerezovsky … came under attack from the newly powerful Primakov, and was shunned by most of thepowerful Primakov, and was shunned by most of the
political elitepolitical elite. . Putin made a Putin made a ppoint of oint of attendinattendingg Berezovsk Berezovskyy’s wife’s ’s wife’s
birthdabirthdayy part party. Berezovsky y. Berezovsky repaid Putin by championing repaid Putin by championing
his candidacy to run the F.S.B., his candidacy to run the F.S.B., Russia’s secret police, formerly Russia’s secret police, formerly
the K.G.B., and ultimately by the K.G.B., and ultimately by suggesting that the Family suggesting that the Family
make him president.make him president. To sum up, the To sum up, the man’s qualifications were: he did not take a bribe from a car man’s qualifications were: he did not take a bribe from a car
dealership and had been unafraid to go to a party for an dealership and had been unafraid to go to a party for an acquaintance who had fallen into disfavor.”acquaintance who had fallen into disfavor.” —”Dead Soul,” —”Dead Soul,”
Vanity FairVanity Fair, October 2008, October 2008
The Real World’s “Little” Rule BookThe Real World’s “Little” Rule Book
Ben/teaBen/teaNorm/teaNorm/tea
DDE/make friendsDDE/make friendsWFBuckley/make friends-help friendsWFBuckley/make friends-help friends
Gust/Suck downGust/Suck downCharlie/poker pal-BOFCharlie/poker pal-BOF
Eddie VII/dance-flatter-mingle-learn the languageEddie VII/dance-flatter-mingle-learn the languageVlad/birthday party of outgroup guy’s wifeVlad/birthday party of outgroup guy’s wife
CIO/finance networkCIO/finance networkERP installer/consult-“one line of code”ERP installer/consult-“one line of code”
GE Energy/make friends risk assessmentGE Energy/make friends risk assessmentGWB/check the invitation listGWB/check the invitation list
GHWB/T-notesGHWB/T-notesHank/60 callsHank/60 callsMarkM/5K-5MMarkM/5K-5M
Delaware/show upDelaware/show upOppy/snub Lewis StraussOppy/snub Lewis Strauss
NM/smileNM/smile-$4.3T/tin ear-$4.3T/tin ear
TP/3M, I’m sorryTP/3M, I’m sorrytp.com/Big 4-What do you think?tp.com/Big 4-What do you think?
Women/genesWomen/genesBanker/after churchBanker/after church
Total Bloody Mess/Can they pay back the loan?Total Bloody Mess/Can they pay back the loan?
**Top4/“What do you think?”Top4/“What do you think?”*Matthew Kelly/“Dream manager”*Matthew Kelly/“Dream manager”*XFX/Cross-functional excellence/*XFX/Cross-functional excellence/ Lunch/% of lunchesLunch/% of lunches*“Suck down”*“Suck down”*PSF/Professional Service Firm/Every*PSF/Professional Service Firm/Every function/R&Dfunction/R&D*Words matter/“Radically Thrilling”/*Words matter/“Radically Thrilling”/ “ “Insanely Great”/“Make somethingInsanely Great”/“Make something great”/“Astonish me”/ “Only onesgreat”/“Astonish me”/ “Only ones who …”who …”*Fred Malek/U.S. Grant/Conrad Hilton*Fred Malek/U.S. Grant/Conrad Hilton*Gold Corp/Goldrush on the Web/*Gold Corp/Goldrush on the Web/ CrowdsourcingCrowdsourcing
““The four most The four most important words in any important words in any
organizationorganization
are …are … ‘What do ‘What do you think?’you think?’ ” ”
Source: courtesy Dave Wheeler, posted atSource: courtesy Dave Wheeler, posted at tompeters.com, source of original unknown (0609.08) tompeters.com, source of original unknown (0609.08)
*Top4/“What do you think?”*Top4/“What do you think?”**Matthew Kelly/“Dream manager”Matthew Kelly/“Dream manager”*XFX/Cross-functional excellence/*XFX/Cross-functional excellence/ Lunch/% of lunchesLunch/% of lunches*“Suck down”*“Suck down”*PSF/Professional Service Firm/Every*PSF/Professional Service Firm/Every function/R&Dfunction/R&D*Words matter/“Radically Thrilling”/*Words matter/“Radically Thrilling”/ “ “Insanely Great”/“Make somethingInsanely Great”/“Make something great”/“Astonish me”/ “Only onesgreat”/“Astonish me”/ “Only ones who …”who …”*Fred Malek/U.S. Grant/Conrad Hilton*Fred Malek/U.S. Grant/Conrad Hilton*Gold Corp/Goldrush on the Web/*Gold Corp/Goldrush on the Web/ CrowdsourcingCrowdsourcing
The Dream ManagerThe Dream Manager —Matthew —Matthew
KellyKelly
“An organization can only become the-best-version-of-“An organization can only become the-best-version-of-itself to the extent that the people who drive that itself to the extent that the people who drive that
organization are striving to become better-versions-of-organization are striving to become better-versions-of-themselves.” “A company’s purpose is to become the-themselves.” “A company’s purpose is to become the-
best-version-of-itself. The question is: What is an best-version-of-itself. The question is: What is an employee’s purpose? Most would say, ‘to help the employee’s purpose? Most would say, ‘to help the
company achieve its purpose’—but they would be wrong. company achieve its purpose’—but they would be wrong. That is certainly part of the employee’s role, but an That is certainly part of the employee’s role, but an employee’s primary purpose is to become the-best-employee’s primary purpose is to become the-best-version-of-himself or –herself. … When a company version-of-himself or –herself. … When a company
forgets that it exists to serve customers, it quickly goes forgets that it exists to serve customers, it quickly goes
out of business.out of business. Our employees are our Our employees are our first customers, and our most first customers, and our most
important customers.”important customers.”
*Top4/“What do you think?”*Top4/“What do you think?”*Matthew Kelly/“Dream manager”*Matthew Kelly/“Dream manager”*XFX/Cross-functional excellence/*XFX/Cross-functional excellence/ Lunch/% of lunchesLunch/% of lunches*“Suck down”*“Suck down”*PSF/Professional Service Firm/Every*PSF/Professional Service Firm/Every function/R&Dfunction/R&D*Words matter/“Radically Thrilling”/*Words matter/“Radically Thrilling”/ “ “Insanely Great”/“Make somethingInsanely Great”/“Make something great”/“Astonish me”/ “Only onesgreat”/“Astonish me”/ “Only ones who …”who …”**Fred Malek/U.S. Grant/Conrad HiltonFred Malek/U.S. Grant/Conrad Hilton*Gold Corp/Goldrush on the Web/*Gold Corp/Goldrush on the Web/ CrowdsourcingCrowdsourcing
Conrad Hilton, at a gala Conrad Hilton, at a gala celebrating his life,celebrating his life,
was asked, “What was the was asked, “What was the most important lesson most important lesson
you’ve learned in your long you’ve learned in your long and distinguished career?” and distinguished career?”
His immediate answer …His immediate answer …
Conrad Hilton, at a gala celebrating his life,Conrad Hilton, at a gala celebrating his life, was asked, “What was the most important lesson you’ve learned was asked, “What was the most important lesson you’ve learned
in your long and distinguished career?” in your long and distinguished career?”
His immediate answer: His immediate answer: ““remember remember to tuck the to tuck the
shower curtain shower curtain inside the inside the bathtubbathtub””
““almost inhuman almost inhuman disinterestedness disinterestedness in … strategy”in … strategy” —Josiah —Josiah
Bunting on Bunting on U.S. GrantU.S. Grant (from (from Ulysses S. Ulysses S. GrantGrant))
*Top4/“What do you think?”*Top4/“What do you think?”*Michael Kelly/“Dream manager”*Michael Kelly/“Dream manager”*XFX/Cross-functional excellence/*XFX/Cross-functional excellence/ Lunch/% of lunchesLunch/% of lunches*“Suck down”*“Suck down”**PSF/Professional Service Firm/EveryPSF/Professional Service Firm/Every function/R&Dfunction/R&D*Words matter/“Radically Thrilling”/*Words matter/“Radically Thrilling”/ “ “Insanely Great”/“Make somethingInsanely Great”/“Make something great”/“Astonish me”/ “Only onesgreat”/“Astonish me”/ “Only ones who …”who …”*Fred Malek/U.S. Grant/Conrad Hilton*Fred Malek/U.S. Grant/Conrad Hilton*Gold Corp/Goldrush on the Web/*Gold Corp/Goldrush on the Web/ CrowdsourcingCrowdsourcing
PSF Transformation: Credit Department/Trek
Was Is
Credit Dept Financial ServicesFinancial Services
Hammer on dealers until Make dealers successful so theyMake dealers successful so theythey pay CAN payCAN pay
AR sold to 3rd party Trek is the commercial financialTrek is the commercial financialcommercial co. CompanyCompany
23 employees 12 employees12 employees
Oversee peak AR of $70M Oversee peak AR of $160MOversee peak AR of $160M
Identify risky dealers Identify opportunitiesIdentify opportunities
Cost Center Profit CenterProfit Center
No products Products: Consulting, MC/Visa,Products: Consulting, MC/Visa, Stored value of gift cards, Gift cardStored value of gift cards, Gift card peripherals, Online paymentsperipherals, Online payments
Source: John Burke/0330.06
*Top4/“What do you think?”*Top4/“What do you think?”*Michael Kelly/“Dream manager”*Michael Kelly/“Dream manager”*XFX/Cross-functional excellence/*XFX/Cross-functional excellence/ Lunch/% of lunchesLunch/% of lunches*“Suck down”*“Suck down”*PSF/Professional Service Firm/Every*PSF/Professional Service Firm/Every function/R&Dfunction/R&D*Words matter/“Radically Thrilling”/*Words matter/“Radically Thrilling”/ “ “Insanely Great”/“Make somethingInsanely Great”/“Make something great”/“Astonish me”/ “Only onesgreat”/“Astonish me”/ “Only ones who …”who …”*Fred Malek/U.S. Grant/Conrad Hilton*Fred Malek/U.S. Grant/Conrad Hilton**Gold Corp/Goldrush on the Web/Gold Corp/Goldrush on the Web/ CrowdsourcingCrowdsourcing
Rob McEwen/CEO/CEO/Goldcorp Inc./Goldcorp Inc./
Red Lake Red Lake goldSource: Wikinomics: How Mass
Collaboration Changes Everything, Don Tapscott & Anthony WilliamsDon Tapscott & Anthony Williams
““The Billion-man The Billion-man Research Team: Research Team:
Companies offering Companies offering work to online work to online
communities are communities are reaping the benefits of reaping the benefits of
‘crowdsourcing.’”‘crowdsourcing.’” —Headline, —Headline, FTFT, 0110.07, 0110.07
**Podcasting/Is there a 4-year-old onPodcasting/Is there a 4-year-old on the top team?the top team?*What’s in a word?/Excellence*What’s in a word?/Excellence*“Hard is soft. Soft is hard.”/*“Hard is soft. Soft is hard.”/ Intangibles/PerceptionIntangibles/Perception*Enthusiasm*Enthusiasm*Gorillas in our midst/50%+*Gorillas in our midst/50%+*She/the market*She/the market*She/the leader*She/the leader*Boomers/Geezers/$$$$/many/*Boomers/Geezers/$$$$/many/ #1 next 25 years/e55+>e55-#1 next 25 years/e55+>e55-*“*“DDiversity” vs “iversity” vs “ddiversity”iversity”*NZ/“Better By Design”/Steve knows*NZ/“Better By Design”/Steve knows
““In Blackburn,In Blackburn, fourfour-y-yearear--oldsolds are making podcasts. In Suffolk, are making podcasts. In Suffolk,
the sometimes tedious and impractical ritual the sometimes tedious and impractical ritual of morning Assembly has been replaced in one of morning Assembly has been replaced in one
school by a news video compiled by pupils; school by a news video compiled by pupils; posting it on YouTube means parents can posting it on YouTube means parents can
watch as well—and they do. … Learners at all watch as well—and they do. … Learners at all stages and ages, from all over the world, are stages and ages, from all over the world, are
downloading free tutorials while they downloading free tutorials while they replenish their iPods, courtesy of iTunes U. …replenish their iPods, courtesy of iTunes U. …
Source: Source: The GuardianThe Guardian, 0113.09, “Resource 2009,” a preview of BETT 2009, 0113.09, “Resource 2009,” a preview of BETT 2009
*Podcasting/Is there a 4-year-old on*Podcasting/Is there a 4-year-old on the top team?the top team?*What’s in a word?/Excellence*What’s in a word?/Excellence*“Hard is soft. Soft is hard.”/*“Hard is soft. Soft is hard.”/ Intangibles/PerceptionIntangibles/Perception**EnthusiasmEnthusiasm*Gorillas in our midst/50%+*Gorillas in our midst/50%+*She/the market*She/the market*She/the leader*She/the leader*Boomers/Geezers/$$$$/many/*Boomers/Geezers/$$$$/many/ #1 next 25 years/e55+>e55-#1 next 25 years/e55+>e55-*“*“DDiversity” vs “iversity” vs “ddiversity”iversity”*NZ/“Better By Design”/Steve knows*NZ/“Better By Design”/Steve knows
““Nothing is so Nothing is so contagious as contagious as enthusiasm.”enthusiasm.”
—Samuel Taylor Coleridge
Our Mission
To develop and manage To develop and manage talent;talent;
to apply that talent,to apply that talent,throughout the world, throughout the world,
for the benefit of clients;for the benefit of clients;to do so in partnership; to do so in partnership;
to do so with profit.to do so with profit.
WPP
*Podcasting/Is there a 4-year-old on*Podcasting/Is there a 4-year-old on the top team?the top team?*What’s in a word?/Excellence*What’s in a word?/Excellence*“Hard is soft. Soft is hard.”/*“Hard is soft. Soft is hard.”/ Intangibles/PerceptionIntangibles/Perception*Enthusiasm*Enthusiasm*Gorillas in our midst/50%+*Gorillas in our midst/50%+**She/the marketShe/the market**She/the leaderShe/the leader**Boomers/Geezers/$$$$/many/Boomers/Geezers/$$$$/many/ #1 next 25 years/e55+>e55-#1 next 25 years/e55+>e55-*“*“DDiversity” vs “iversity” vs “ddiversity”iversity”*NZ/“Better By Design”/Steve knows*NZ/“Better By Design”/Steve knows
““Forget Forget ChinaChina, , IndiaIndia and the and the
InternetInternet: Economic : Economic Growth Is Driven Growth Is Driven
by by WomenWomen.”.” —Headline,
Economist, April 15, 2006, Leader, page 14
““Women Women areare thethe
majority majority market”market”
—Fara Warner/—Fara Warner/The Power of the PurseThe Power of the Purse
““The The most most significant variablesignificant variable
inin everyevery sales situation is sales situation is
thethe gendergender of the buyer, of the buyer, and more importantly, how and more importantly, how
the salesperson the salesperson communicates to the communicates to the
buyer’s gender.”buyer’s gender.” —Jeffery Tobias Halter, Selling to Men, Selling to Women
Cases! Cases! Cases!Cases! Cases! Cases!McDonald’sMcDonald’s (“mom-centered” to “majority consumer”;
not via kids)
Home DepotHome Depot (“Do it [everything!] Herself”)
P&GP&G (more than “house cleaner”)
DeBeersDeBeers (“right-hand rings”/$4B)
AXA FinancialAXA FinancialKodakKodak (women = “emotional centers of the household”)
NikeNike (> jock endorsements; new def sports; majority consumer)
AvonAvonBratzBratz (young girls want “friends,” not a blond stereotype)
Source: Fara Warner/Fara Warner/The Power of the PurseThe Power of the Purse
““Goldman Sachs in Tokyo has Goldman Sachs in Tokyo has developed an index of 115 developed an index of 115
companies poised to benefit companies poised to benefit from women’s increased from women’s increased
purchasing power; purchasing power; over the past over the past decade the value of shares in decade the value of shares in Goldman’s basket has risen by Goldman’s basket has risen by
96%, against the Tokyo 96%, against the Tokyo stockmarket’s rise stockmarket’s rise
of 13%of 13%.”.” —Economist, April 15
““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
10 UNASSAILABLE REASONS WOMEN RULE10 UNASSAILABLE REASONS WOMEN RULE
WomenWomen make [all] the financial decisions.WomenWomen control [all] the wealth.WomenWomen [substantially] outlive men.WomenWomen start most of the new businesses.Women’sWomen’s work force participation rates have soared worldwide.WomenWomen are closing in on “same pay for same job.”WomenWomen are penetrating senior ranks rapidly [even if the pace is slow for the corner office per se].Women’sWomen’s leadership strengths are exceptionally well aligned with new organizational effectiveness imperatives.WomenWomen are better salespersons than men.WomenWomen buy [almost] everything—commercial as well as consumer goods.
So what exactly is the point of So what exactly is the point of menmen??
““One thing is certain: Women’s rise to power, which is One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no in all domains and at all levels of society. Women are no
longer content to provide efficient labor or to be longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to consumers with rising budgets and more autonomy to spend. … This is just the beginning. The phenomenon spend. … This is just the beginning. The phenomenon
will only grow as girls prove to be more successful than will only grow as girls prove to be more successful than
boys in the school system.boys in the school system. For a number For a number of observers, we have of observers, we have
already entered the age of already entered the age of ‘womenomics,’ the economy ‘womenomics,’ the economy
as thought out and as thought out and practiced by a womanpracticed by a woman.”.” —Aude
Zieseniss de Thuin, Financial Times, 10.03.2006
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““People turning 50 People turning 50
today have today have more more thanthan halfhalf of of their adult life their adult life
ahead of them.”ahead of them.” —Bill
Novelli, 50+: Igniting a Revolution to Reinvent America
44-65: “New “New Customer Customer Majority”Majority” *
*45% larger than 18-43; 60% larger by 2010Source: Ageless Marketing, David Wolfe & Robert Snyder
““Baby-boomer Baby-boomer WomenWomen: The : The Sweetest of Sweetest of
Sweet Spots for Sweet Spots for Marketers”Marketers” —David Wolfe and
Robert Snyder, Ageless Marketing
We are the We are the Aussies & Kiwis &Aussies & Kiwis & Americans & Americans & CanadiansCanadians. We are the . We are the Western Western
EuropeansEuropeans & & JapaneseJapanese. We are the . We are the fastest growingfastest growing, the , the biggestbiggest, the , the
wealthiestwealthiest, the , the boldestboldest, the most , the most (yes) (yes) ambitiouambitious, the most s, the most experimental & experimental &
exploratoryexploratory, the most , the most differentdifferent, the most , the most indulgentindulgent, the most , the most difficult &difficult & demandingdemanding, the most , the most service & experience obsessedservice & experience obsessed, the most , the most vigorousvigorous, ,
(the (the leastleast vigorous,) the most vigorous,) the most health conscioushealth conscious, the , the most most femalefemale, the most profoundly important , the most profoundly important
commercial market in the history of the world—andcommercial market in the history of the world—and
we will be the Center of we will be the Center of yyour universe for the our universe for the
next twentnext twentyy-five -five yyearsears.. We have arrived!We have arrived!
We are the We are the Kiwis & Aussies &Kiwis & Aussies & Americans Americans & Canadians& Canadians. We are the . We are the Western Western
EuropeansEuropeans & & JapaneseJapanese. We are the . We are the fastest growingfastest growing, the , the biggestbiggest, the , the
wealthiestwealthiest, the , the boldestboldest, the , the most (yes) most (yes) ambitiouambitious, the most s, the most experimental experimental & exploratory & exploratory, the most , the most differentdifferent, the most , the most indulgentindulgent, the most , the most difficult &difficult & demandingdemanding, the most , the most service & experience obsessedservice & experience obsessed, the most , the most vigorousvigorous, ,
(the (the leastleast vigorous,) the most vigorous,) the most health conscioushealth conscious, the , the most most femalefemale, the most profoundly important , the most profoundly important
commercial market in the history of the world—andcommercial market in the history of the world—and
we will be the Center of we will be the Center of yyour universe for the our universe for the
next twentnext twentyy-five -five yyearsears. . We have arrived!We have arrived!
*Podcasting/Is there a 4-year-old on*Podcasting/Is there a 4-year-old on the top team?the top team?*What’s in a word?/Excellence*What’s in a word?/Excellence*“Hard is soft. Soft is hard.”/*“Hard is soft. Soft is hard.”/ Intangibles/PerceptionIntangibles/Perception*Enthusiasm*Enthusiasm*Gorillas in our midst/50%+*Gorillas in our midst/50%+*She/the market*She/the market*She/the leader*She/the leader*Boomers/Geezers/$$$$/many/*Boomers/Geezers/$$$$/many/ #1 next 25 years/e55+>e55-#1 next 25 years/e55+>e55-*“*“DDiversity” vs “iversity” vs “ddiversity”iversity”**NZ/“Better By Design”/Steve knowsNZ/“Better By Design”/Steve knows
““You You knowknow a a designdesign is is goodgood
whenwhen you you wantwant to to licklick it.” it.” —Steve Jobs—Steve Jobs
Source: Source: Design: Intelligence Made VisibleDesign: Intelligence Made Visible,, Stephen Bayley & Terence ConranStephen Bayley & Terence Conran
Hypothesis:Hypothesis: DESIGNDESIGN is is the pthe princirincippalal
differencedifference between between lovelove
and and hate!*hate!**Not “like” and “dislike”*Not “like” and “dislike”
*Basics.*Basics.*ROIR X10*ROIR X10*Execution X10*Execution X10*Values X10*Values X10*Quality X10*Quality X10*Empowerment (More initiative)*Empowerment (More initiative)*Transparency*Transparency*Decisiveness*Decisiveness*MBWA*MBWA*Communicate X10*Communicate X10*Keep It Simple*Keep It Simple*Decency*Decency*Truthfulness*Truthfulness
*Energy!*Energy!*On guard/Constant attitude checks *On guard/Constant attitude checks *Beware: Training. R&D. Sales. (“Across*Beware: Training. R&D. Sales. (“Across the board” = Insanity)the board” = Insanity)*“Small wins”/Positives*“Small wins”/Positives*Deep recession/The best years of our*Deep recession/The best years of our professional lifeprofessional life*Commitment to growth/All*Commitment to growth/All*Deep recession/Innovation’s finest*Deep recession/Innovation’s finest hourhour*No cut corners*No cut corners*EXCELLENCE.*EXCELLENCE.
““A leader is A leader is a a dealer in dealer in hope.” hope.” —Napoleon
(+TP’s writing room pics)(+TP’s writing room pics)
USN&WR: USN&WR: What traits do successful activists share?What traits do successful activists share?
Studs Terkel, age 91Studs Terkel, age 91:: “They “They have hope, and have hope, and
they imbue they imbue others with others with
hope.”hope.”
On NELSON:On NELSON: “[other] “[other] admirals more admirals more frightened of frightened of losing than losing than
anxious to win”anxious to win”
1. 1. Have you in the last 10 days … visited a Have you in the last 10 days … visited a customecustomer?r?2. 2. Have you called a customer … Have you called a customer … TODAYTODAY??
3. Have you in the last 60-90 days … had a seminar in which several folks from the 3. Have you in the last 60-90 days … had a seminar in which several folks from the customer’s operation (different levels, different functions, different divisions) interacted, customer’s operation (different levels, different functions, different divisions) interacted, via facilitator, with various of your folks?via facilitator, with various of your folks?
4. 4. Have you thanked a front-line employee for a Have you thanked a front-line employee for a small act of helpfulness … in the last three days?small act of helpfulness … in the last three days?5. Have you thanked a front-line employee for a small act of helpfulness … in the 5. Have you thanked a front-line employee for a small act of helpfulness … in the last three last three hourshours??6. Have you thanked a frontline employee for carrying around a great 6. Have you thanked a frontline employee for carrying around a great attitude attitude … today?… today?7. Have you in the last week recognized—publicly—one of your folks for a small act of 7. Have you in the last week recognized—publicly—one of your folks for a small act of cross-functional co-operationcross-functional co-operation??8. Have you in the last week recognized—publicly—one of “their” folks (another 8. Have you in the last week recognized—publicly—one of “their” folks (another function) for a small act of cross-functional co-operation?function) for a small act of cross-functional co-operation?9. Have you invited in the last month a leader of 9. Have you invited in the last month a leader of another functionanother function to your weekly team to your weekly team priorities meeting?priorities meeting?10. Have you personally in the last week-month called-visited an internal or external 10. Have you personally in the last week-month called-visited an internal or external customer to customer to sort out, inquire, or apologizesort out, inquire, or apologize for some little or big thing that went awry? for some little or big thing that went awry? (No reason for doing so? If true—in your mind—then you’re more out of touch than I (No reason for doing so? If true—in your mind—then you’re more out of touch than I dared imagine.)dared imagine.)
1. Have you in 1. Have you in the last 10 days the last 10 days … visited a … visited a customecustomer?r?2. Have you 2. Have you called a customer called a customer … … TODAYTODAY??
11. Have you in the last two days had a chat with someone (a couple of levels down?) about 11. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines concerning a project’s next steps?specific deadlines concerning a project’s next steps?12. Have you in the last two days had a chat with someone (a couple of levels down?) about 12. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines concerning a project’s next steps … and what specifically specific deadlines concerning a project’s next steps … and what specifically you can do to you can do to remove a hurdleremove a hurdle? (“Ninety percent of what we call management consists of making it difficult for ? (“Ninety percent of what we call management consists of making it difficult for people to get things done.”—Peter “His eminence” Drucker.)people to get things done.”—Peter “His eminence” Drucker.)13. Have you celebrated in the last week a “small” (or large!) 13. Have you celebrated in the last week a “small” (or large!) milestone milestone reached? (I.e., are you a reached? (I.e., are you a milestone fanatic?)milestone fanatic?)14. Have you in the last week or month revised some estimate in the “wrong” direction and 14. Have you in the last week or month revised some estimate in the “wrong” direction and apologized for making a lousy estimate? (Somehow you must publicly apologized for making a lousy estimate? (Somehow you must publicly reward the telling of reward the telling of difficult truthsdifficult truths.).)
15. 15. Have you installed in your tenure a very Have you installed in your tenure a very comprehensive customer satisfaction scheme comprehensive customer satisfaction scheme for all for all internalinternal customers? customers? (With major consequences for hitting or (With major consequences for hitting or
missing the mark.)missing the mark.)
16. Have you in the last six months had a week-long, visible, very intensive 16. Have you in the last six months had a week-long, visible, very intensive visit-“tour”visit-“tour” of of external customers?external customers?17. Have you in the last 60 days called an abrupt halt to a meeting and “ordered” everyone to get 17. Have you in the last 60 days called an abrupt halt to a meeting and “ordered” everyone to get out of the office, and “into the field” and in the out of the office, and “into the field” and in the next eight hoursnext eight hours, after asking those involved, fixed , after asking those involved, fixed (f-i-x-e-d!) a nagging “small” problem through practical action?(f-i-x-e-d!) a nagging “small” problem through practical action?18. Have you in the last week had a rather thorough discussion of a “cool design thing” someone 18. Have you in the last week had a rather thorough discussion of a “cool design thing” someone has come across—away from your industry or function—at a Web site, in a product or its has come across—away from your industry or function—at a Web site, in a product or its packaging? packaging? 19. Have you in the last two weeks had an informal meeting—at least an hour long—with a 19. Have you in the last two weeks had an informal meeting—at least an hour long—with a frontline employee to discuss things we do right, things we do wrong, what it would take to meet frontline employee to discuss things we do right, things we do wrong, what it would take to meet your mid- to long-term aspirations?your mid- to long-term aspirations?20. Have you had in the last 60 days had a general meeting to discuss “things we do wrong” … 20. Have you had in the last 60 days had a general meeting to discuss “things we do wrong” … that we can fix in the next that we can fix in the next fourteen daysfourteen days??
UniCredit Group/UniCredit Group/ UniCredito Italiano* ** UniCredito Italiano* **
—3—3rdrd party measurement party measurement—Customer-initiated—Customer-initiated measurement measurement—Primary $$$$ incentives—Primary $$$$ incentives—“Factories”—“Factories”—Primary Corporate Initiative—Primary Corporate Initiative—Etc—Etc*#13*#13**TP/#1**TP/#1
21. Have you had in the last year a one-day, intense offsite with each (?) of your 21. Have you had in the last year a one-day, intense offsite with each (?) of your internal customers—followed by a big celebration of “things gone right”?internal customers—followed by a big celebration of “things gone right”?22. Have you in the last week pushed someone to do some family thing that you fear 22. Have you in the last week pushed someone to do some family thing that you fear might be overwhelmed by deadline pressure?might be overwhelmed by deadline pressure?23. 23. Have you learned the names of the children of everyone who reports to you?Have you learned the names of the children of everyone who reports to you? (If (If not, you have six months to fix it.)not, you have six months to fix it.)24. Have you taken in the last month an interesting-24. Have you taken in the last month an interesting-weirdweird outsider to lunch? outsider to lunch?25. Have you in the last month invited an interesting-weird outsider to sit in on an25. Have you in the last month invited an interesting-weird outsider to sit in on animportant meeting?important meeting?26. Have you in the last three days discussed something interesting, beyond your 26. Have you in the last three days discussed something interesting, beyond your industry, that you ran across in a meeting, reading, etc?industry, that you ran across in a meeting, reading, etc?27. Have you in the last 24 hours injected into a meeting “I ran across this interesting 27. Have you in the last 24 hours injected into a meeting “I ran across this interesting idea in [strange place]”?idea in [strange place]”?28. Have you in the last two weeks asked someone to report on something, anything 28. Have you in the last two weeks asked someone to report on something, anything that constitutes an act of brilliant service rendered in a “trivial” situation—restaurant, that constitutes an act of brilliant service rendered in a “trivial” situation—restaurant, car wash, etc? (And then discussed the relevance to your work.)car wash, etc? (And then discussed the relevance to your work.)
29. 29. Have you in the last 30 days examined in detail (hour Have you in the last 30 days examined in detail (hour by hour) your calendar to evaluate the degree “time by hour) your calendar to evaluate the degree “time actually spent” mirrors your “espoused priorities”? actually spent” mirrors your “espoused priorities”? (And repeated this exercise with everyone on team.)(And repeated this exercise with everyone on team.)
30. Have you in the last two months had a presentation to the group by a “weird” 30. Have you in the last two months had a presentation to the group by a “weird” outsider? outsider?
31. Have you in the last two months had a presentation to the group by a customer, 31. Have you in the last two months had a presentation to the group by a customer, internal customer, vendor featuring “working folks” 3 or 4 levels down in the vendor internal customer, vendor featuring “working folks” 3 or 4 levels down in the vendor organization? organization? 32. Have you in the last two months had a presentation to the group of a cool, 32. Have you in the last two months had a presentation to the group of a cool, beyond-our-industry ideas by two of your folks?beyond-our-industry ideas by two of your folks?33. Have you at every meeting today (and forever more) re-directed the conversation 33. Have you at every meeting today (and forever more) re-directed the conversation to the practicalities of implementation concerning some issue before the group?to the practicalities of implementation concerning some issue before the group?34. Have you at every meeting today (and forever more) had an end-of-meeting 34. Have you at every meeting today (and forever more) had an end-of-meeting discussion on “action items to be dealt with in the next 4, 48 hours? (And then made discussion on “action items to be dealt with in the next 4, 48 hours? (And then made this list public—and followed up in 48 hours.) And made sure everyone has at least this list public—and followed up in 48 hours.) And made sure everyone has at least one such item.)one such item.)35. Have you had a discussion in the last six months about what it would take to get 35. Have you had a discussion in the last six months about what it would take to get recognition in local-national poll of recognition in local-national poll of “best places to work”?“best places to work”?36. Have you in the last month approved a 36. Have you in the last month approved a cool-different training coursecool-different training course for one for one of your folks?of your folks?
37. 37. Have you in the last month Have you in the last month taught taught a front-line a front-line training course?training course?38. Have you in the last week discussed the idea of 38. Have you in the last week discussed the idea of ExcellenceExcellence? (What it means, how? (What it means, howto get there.)to get there.)39. Have you in the last week discussed the idea of 39. Have you in the last week discussed the idea of “Wow”?“Wow”? (What it means, how (What it means, howto inject it into an ongoing “routine” project.)to inject it into an ongoing “routine” project.)40. Have you in the last 45 days assessed some major process in terms of the details 40. Have you in the last 45 days assessed some major process in terms of the details of the “experience,” as well as results, it provides to its external or internal of the “experience,” as well as results, it provides to its external or internal customers?customers?
41. Have you in the last month had one of your folks attend a meeting you were supposed to go 41. Have you in the last month had one of your folks attend a meeting you were supposed to go to which gives them unusual exposure to senior folks?to which gives them unusual exposure to senior folks?42. Have you in the last 60 (30?) days sat with a trusted friend or “coach” to discuss your 42. Have you in the last 60 (30?) days sat with a trusted friend or “coach” to discuss your “management style”—and its long- and short-term impact on the group?“management style”—and its long- and short-term impact on the group?
43. 43. Have you in the Have you in the last three dayslast three days considered a professional considered a professional relationship that was a little rocky and made a call to the person relationship that was a little rocky and made a call to the person involved to discuss issues and smooth the waters? (Taking the involved to discuss issues and smooth the waters? (Taking the “blame,” fully deserved or not, for letting the thing-issue fester.)“blame,” fully deserved or not, for letting the thing-issue fester.)
44. Have you in the last … 44. Have you in the last … two hourstwo hours … stopped by someone’s (two-levels “down") office- … stopped by someone’s (two-levels “down") office-workspace for 5 minutes to ask “What do you think?” about an issue that arose at a more or workspace for 5 minutes to ask “What do you think?” about an issue that arose at a more or less just completed meeting? (And then stuck around for 10 or so minutes to listen—and less just completed meeting? (And then stuck around for 10 or so minutes to listen—and visibly taken notes.)visibly taken notes.)45. Have you … in the last day … looked around you to assess whether the diversity pretty 45. Have you … in the last day … looked around you to assess whether the diversity pretty accurately maps the diversity of the market being served? (And …) accurately maps the diversity of the market being served? (And …) 46. Have you in the last day at some meeting gone out of your way to make sure that a 46. Have you in the last day at some meeting gone out of your way to make sure that a normally reticent person was engaged in a conversation—and then thanked him or her, normally reticent person was engaged in a conversation—and then thanked him or her, perhaps privately, for their contribution?perhaps privately, for their contribution?47. Have you during your tenure instituted very public (visible) presentations of performance?47. Have you during your tenure instituted very public (visible) presentations of performance?48. Have you in the last four months had a session specifically aimed at checking on the 48. Have you in the last four months had a session specifically aimed at checking on the “corporate culture” and the degree we are true to it—with all presentations by relatively junior “corporate culture” and the degree we are true to it—with all presentations by relatively junior folks, including front-line folks? (And with a determined effort to keep the conversation folks, including front-line folks? (And with a determined effort to keep the conversation restricted to “real world” “small” cases—not theory.) restricted to “real world” “small” cases—not theory.) 49. Have you in the last six months talked about the 49. Have you in the last six months talked about the Internal Brand PromiseInternal Brand Promise??50. Have you in the last year had a full-day off site to talk about individual (and group) 50. Have you in the last year had a full-day off site to talk about individual (and group) aspirations?aspirations?
Relationships (of all varieties): THERE THERE ONCE WAS A TIME WHEN A ONCE WAS A TIME WHEN A
THREETHREE--MINUTEMINUTE PHONEPHONE CALLCALL WOULD HAVE AVOIDED WOULD HAVE AVOIDED
SETTING OFF THE DOWNWARD SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A SPIRAL THAT RESULTED IN A
COMPLETE RUPTURE.COMPLETE RUPTURE.
““Courtesies of a small Courtesies of a small and trivial character are and trivial character are
the ones which strike the ones which strike deepest in the grateful deepest in the grateful
and appreciating heart.”and appreciating heart.”
—Henry Clay
(1)(1) sum of Projects sum of Projects == Goal (“Vision”) Goal (“Vision”)
(2)(2) sum of sum of Milestones =Milestones = project project
(3)(3) rapid Review + rapid Review + Truth-telling = Truth-telling = accountability accountability
try it. Try it. Try it. try it. Try it. Try it. Try it. Try it. Try it.Try it. Try it. Try it.
Try it. Try it. Try it. Try it. Screw it Screw it up.up. Try it. Try it. Try Try it. Try it. Try
it. Try it. Try it. Try it. it. Try it. Try it. Try it. Try it. Try it. Screw it up.Screw it up. it. it.
Try it. Try it. try it. Try it. Try it. try it. Try it.Try it. Screw it up.Screw it up. Try it. Try it. Try it. Try it. Try it. Try it.
““We have a We have a ‘strategic plan.’ ‘strategic plan.’ It’s called It’s called doing doing thingsthings.”.” — Herb Kelleher
A man approached JP Morgan, held up an envelope, and said, “Sir, A man approached JP Morgan, held up an envelope, and said, “Sir, in my hand I hold a guaranteed formula for success, which I will in my hand I hold a guaranteed formula for success, which I will
gladly sell you for $25,000.”gladly sell you for $25,000.”
“Sir,” JP Morgan replied, “I do not know what is in the envelope, “Sir,” JP Morgan replied, “I do not know what is in the envelope, however if you show me, and I like it, Ihowever if you show me, and I like it, I
give you my word as a gentleman that I will pay you what you ask.” give you my word as a gentleman that I will pay you what you ask.”
The man agreed to the terms, and handed over the envelope. JP The man agreed to the terms, and handed over the envelope. JP Morgan opened it, and extracted a single sheet of paper. He gave it Morgan opened it, and extracted a single sheet of paper. He gave it one look, a mere glance, then handed the piece of paper back to the one look, a mere glance, then handed the piece of paper back to the
gent.gent.
And paid him the And paid him the agreed upon $25,000.agreed upon $25,000.
1. 1. Every morning, write Every morning, write a list of the things a list of the things that need to be done that need to be done that day. that day.
2.2. Do them.Do them. Source: Hugh MacLeod/tompeters.com/NPRSource: Hugh MacLeod/tompeters.com/NPR
“This is so simple it sounds stupid, but it is amazing how few oil people really
understand that you only you only find oil if you find oil if you drill wellsdrill wells.. You may
think you’re finding it when you’re drawing maps and
studying logs, but you have to drill.”
Source: The Hunters, by John Masters, Canadian O & G wildcatter
““We made mistakes, of course. Most of them were We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the omissions we didn’t think of when we initially wrote the
software. software. We fixed them by doing it over and over, We fixed them by doing it over and over, again and again.again and again. We do the same today. While our We do the same today. While our competitors are still sucking their thumbs trying to competitors are still sucking their thumbs trying to
make the design perfect, we’re already on prototype make the design perfect, we’re already on prototype
versionversion ##55.. By the time our rivals areBy the time our rivals are
ready with wires and screws, we are on versionready with wires and screws, we are on version
##1010.. It gets back to It gets back to
planning versus actingplanning versus acting: : We act We act from day onefrom day one; ; others plan how others plan how toto planplan——for monthsfor months.”.” —Bloomberg by —Bloomberg by
BloombergBloomberg
““ExperimenExperiment t
fearlessly”fearlessly”Source: BW0821.06, Type A Organization Strategies/
“How to Hit a Moving Target”—Tactic #1Tactic #1
““You can’t be a serious You can’t be a serious innovator unless and until innovator unless and until you are ready, willing and you are ready, willing and
able to seriously play. able to seriously play. ‘‘Serious playSerious play’ is not an ’ is not an
oxymoron; it is the oxymoron; it is the essenceessence of of innovationinnovation.” .” —Michael Schrage,—Michael Schrage, Serious PlaySerious Play
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
““Learn not Learn not to be to be
careful.”careful.”
—Photographer Diane Arbus to her students (Careful = The sidelinesCareful = The sidelines, from
Harriet Rubin in The Princessa)
Think about It!?Think about It!?
Innovation Innovation = = Reaction to the Reaction to the
PrototypePrototype
Source: Michael SchrageSource: Michael Schrage
“Natural selection is death. ... Without huge amounts of death, organisms do not change over time. ...
Death is the mother of structure. ... It took four
billion years of death ... to invent the human mind ...” —
The Cobra Event
““If people tell me If people tell me they skied all day they skied all day
and never fell and never fell down, I tell them down, I tell them to try a different to try a different
mountain.”mountain.” —Michael Bloomberg (—Michael Bloomberg (BWBW/0625.07)/0625.07)
““In business, you In business, you rewardreward people for taking people for taking risksrisks. .
When it When it doesn’tdoesn’t workwork outout you pyou promoteromote them-because them-because they were willing to try new they were willing to try new
things. If people tell me things. If people tell me they skied all day and never they skied all day and never fell down, I tell them to tryfell down, I tell them to try
a different mountain.” a different mountain.” —Michael Bloomberg (—Michael Bloomberg (BWBW/0625.07)/0625.07)
Read This!
Richard Farson & Ralph Keyes:
Whoever Makes Whoever Makes the Most Mistakes the Most Mistakes Wins: The Paradox Wins: The Paradox
of Innovationof Innovation
““The Silicon Valley of The Silicon Valley of today is built less atop the today is built less atop the spires of earlier triumphs spires of earlier triumphs than upon the rubble of than upon the rubble of
earlier debacles.”earlier debacles.”—Newsweek—Newsweek/ Paul / Paul
SaffoSaffo
On NELSON: “[other] “[other] admirals more admirals more frightened of frightened of losing than losing than
anxious to win”anxious to win”
Paul Allaire/Xerox:Paul Allaire/Xerox: “We are in a “We are in a brawl with no rules.”brawl with no rules.”
TP:TP: “There’s “There’s [literally][literally] only one only one
possible answer … possible answer … SScrew crew
AAround round VVigorouslyigorously!!
““You miss You miss
100100%%
of the shots of the shots you never you never
take.”take.” —Wayne—Wayne GretzkyGretzky
““Andrew Higgins , who built landing craft in Andrew Higgins , who built landing craft in WWII, refused to hire graduates of WWII, refused to hire graduates of
engineering schools. engineering schools. He believed He believed that they only teach that they only teach
you what you you what you can’tcan’t dodo in engineering school.in engineering school. He started off with 20 employees, and by He started off with 20 employees, and by the middle of the war had 30,000 working the middle of the war had 30,000 working
for him. He turned out 20,000 landing craft. for him. He turned out 20,000 landing craft. D.D. Eisenhower told me, ‘Andrew Higgins D.D. Eisenhower told me, ‘Andrew Higgins
won the war for us. He did it without won the war for us. He did it without engineers.’ ”engineers.’ ”
—Stephen Ambrose/—Stephen Ambrose/Fast CompanyFast Company
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”