LONGLONG

Tom Peters’Tom Peters’

Re-ImagineRe-Imagine

EXCELLENCEEXCELLENCE!!HSM Management & Leadership ForumHSM Management & Leadership Forum

São Paulo/08 April 2015São Paulo/08 April 2015

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

CONRAD HILTON …CONRAD HILTON …

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

asked,asked, “What were the most important

lessons you learned in your long and

distinguished career?” His answer …His answer …

““Remember Remember to tuck the to tuck the

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

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

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

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

PeoplePeople!! CustomersCustomers!!

ActionAction!! ValuesValues!!

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

1. A Bias for 1. A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. 3. AutonomAutonomyy and and EntreEntreppreneurshireneurshipp4. Productivity Through 4. Productivity Through PeoPeopplele5. 5. Hands OnHands On, , Value-DrivenValue-Driven6. 6. Stick toStick to the Knitting the Knitting7. 7. SimSimpplele Form, Form, LeanLean Staff Staff8. Simultaneous 8. Simultaneous Loose-TightLoose-Tight PropertiesProperties

““Breakthrough” 82*Breakthrough” 82*

People! People! Customers! Customers!

Action! Action! ValuesValues! !

**In Search of ExcellenceIn Search of Excellence

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

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

EXCELLENCE is … THEEXCELLENCE is … THE

NEXTNEXT 55 MINUTESMINUTES..**

(*Or (*Or NOTNOT.).)

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

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

““Strive for Strive for Excellence. Excellence.

Ignore Ignore success.”success.”—

—Bill Young, race car driver

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

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

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

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

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

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

WHY WHY NOT?NOT?

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

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

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

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

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

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

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

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

team.”team.”

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

6 Words:6 Words:But a But a

MouthfulMouthful

Hard is Soft.Hard is Soft.Soft is Hard.Soft is Hard.

SERVICE.SERVICE.PERIOD.PERIOD.

ORGANIZATIONS ORGANIZATIONS EXISTEXIST TO TO SERVESERVE. .

PERIOD.PERIOD.

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

PeoplePeople PeoplePeople PeoplePeople

PeoplePeople

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

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

rewarding lives …rewarding lives …

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

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

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

worth worth doindoing.”g.”

——Richard BransonRichard Branson

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

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

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

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

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

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

““May I help May I help you down you down

the jetway.”the jetway.”

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

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

AirlinesAirlines

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

renovation”renovation”

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

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

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

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

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

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

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

priority?’priority?’””

EMPLOYEES FIRST, CUSTOMERS SECOND:EMPLOYEES FIRST, CUSTOMERS SECOND: Turning Conventional Management Upside DownTurning Conventional Management Upside Down

Vineet Nayar/CEO/HCL TechnologiesVineet Nayar/CEO/HCL Technologies

Rocket Science. Rocket Science. NOT.NOT.

““If you want staff to If you want staff to give great service, give great service, give great service give great service

to staff.” to staff.” ——Ari Weinzweig, Zingerman’s Ari Weinzweig, Zingerman’s

Source: Source: Small Giants: Companies That Choose to Be Small Giants: Companies That Choose to Be Great Instead of Big, Great Instead of Big, Bo BurlinghamBo Burlingham

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

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

much richer.”much richer.” * *** **

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

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

1996-2014/12 companies every year/ 1996-2014/12 companies every year/ 341,567 new jobs/+172%:341,567 new jobs/+172%:

PublixPublixWhole FoodsWhole FoodsWegmansWegmansNordstromNordstromCisco SystemsCisco Systems

MarriottMarriottREIREIGoldman SachsGoldman Sachs

Four SeasonsFour SeasonsSAS InstituteSAS InstituteW.L. GoreW.L. GoreTDIndustriesTDIndustriesSource: Source: FortuneFortune/ “The 100 Best Companies to Work / “The 100 Best Companies to Work For”/0315.15For”/0315.15

100 Best Companies to Work for, 100 Best Companies to Work for,

1984-2009:1984-2009: Plus Plus 3.5% 3.5% pper annumer annum risk risk adjusted returnsadjusted returns

Source: Source: FortuneFortune/“The 100 Best Companies to Work /“The 100 Best Companies to Work For”/0315.15/Alex Edmunds, WhartonFor”/0315.15/Alex Edmunds, Wharton

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

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

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

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

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

Brand Brand = =

Talent.Talent.

Our Mission

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

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

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

WPP

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

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

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

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

DDODDOs/s/Deliberately Developmental OrganizationsDeliberately Developmental Organizations

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

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

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

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

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

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

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

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

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

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

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

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

The The 7-Step7-StepMethodMethod

7 Steps to Sustaining Success7 Steps to Sustaining Success

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

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

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

““YOUR YOUR CUSTOMERS CUSTOMERS

WILL NEVER BE WILL NEVER BE ANY HAPPIER ANY HAPPIER THAN YOUR THAN YOUR

EMPLOYEES.”EMPLOYEES.”

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

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

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

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

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

team.”team.”

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

Training = Training = InvestmentInvestment

#1#1!!

6/2/36/2/3**

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

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

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

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

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

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

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

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

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

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

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

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

Boss & RPD:Boss & RPD: Your (boss) job is Your (boss) job is safer if every one of your safer if every one of your

team members is team members is committed to committed to

RPDRPD/Radical /Radical Personal Personal

DevelopmentDevelopment. Actively . Actively support one support one

and all!and all!

Gamblin’ ManGamblin’ Man

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

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

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

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

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

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

Training #1: Bottom LineTraining #1: Bottom Line

NOBODYNOBODY gets off the gets off the

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

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

““The topic is probably the oldest and biggest debate in The topic is probably the oldest and biggest debate in

Customer service. Customer service. What is more important: What is more important: How well you hire, or the training and How well you hire, or the training and

culture you bring your employees into? culture you bring your employees into?

While both are very important, While both are very important, 7575

percent is the Customer service training percent is the Customer service training and the service culture of your companyand the service culture of your company. .

Do you really think that Disney has found 50,000 Do you really think that Disney has found 50,000 amazing service-minded people? There probably aren’t amazing service-minded people? There probably aren’t

50,000 people on earth who were born to serve. 50,000 people on earth who were born to serve. Companies like Ritz-Carlton and Disney find good people Companies like Ritz-Carlton and Disney find good people

and put them in such a strong service and training and put them in such a strong service and training environment that doesn’t allow for accept anything less environment that doesn’t allow for accept anything less

than excellencethan excellence.” .”

——John DiJulius, John DiJulius, The Customer Service Revolution: Overthrow The Customer Service Revolution: Overthrow Conventional Business, Inspire Employees, and Change the WorldConventional Business, Inspire Employees, and Change the World

““Only businesses built on the premise Only businesses built on the premise that employee and Customer loyalty are that employee and Customer loyalty are their strongest assets are the ones that their strongest assets are the ones that thrive and emerge as market leaders for thrive and emerge as market leaders for

the long term. the long term. These These businesses realize that businesses realize that

Customer service training Customer service training is an investment, not an is an investment, not an

expense.”expense.” —John DiJulius, —John DiJulius,

The Customer Service Revolution: Overthrow Conventional The Customer Service Revolution: Overthrow Conventional Business, Inspire Employees, and Change the WorldBusiness, Inspire Employees, and Change the World

HiringHiring

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

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

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

on why so many smiles at Starbucks shops

Observed closely: The use ofObserved closely: The use of

“I”“I” oror

“We”“We” during aduring a

job interview.job interview.

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

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

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

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

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

““Asked for the most important attribute that an ideal Asked for the most important attribute that an ideal Honda applicant should have, [Honda] noted that he Honda applicant should have, [Honda] noted that he

preferredpreferred ‘people who had ‘people who had been in trouble.’ ”been in trouble.’ ”

““Honda believed genius arose from idiosyncrasy,Honda believed genius arose from idiosyncrasy,

‘Non-conformity is ‘Non-conformity is essential,’ he told his essential,’ he told his

workers.’”workers.’”Source: Jeffrey Rothfeder, Source: Jeffrey Rothfeder, Driving Honda: Driving Honda:

Inside the World’s Most Innovative Car CompanyInside the World’s Most Innovative Car Company

QuietQuiet

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

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

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

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

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

2/Year = 2/Year = LegacyLegacy

Promotion DecisionsPromotion Decisions

“life and “life and death death

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

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

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

weaknesses rather rather than on their than on their

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

EvaluationEvaluation

EVALUATING EVALUATING

PEOPLE = PEOPLE = #1#1

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

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

SelfSelf--EvaluationEvaluation

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

affect everaffect everyyone around one around yyouou is what is what

distindistingguishesuishes a superior a superior leader.”leader.”

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

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

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

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

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

Productivity Asset Productivity Asset

#1#1!!

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

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

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

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

same awareness?same awareness?

““People People leave leave

manamanaggersers not not companies.”companies.”

——Dave WheelerDave Wheeler

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

based on the based on the

first-line first-line manamanagger!er!

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

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

employee satisfaction?employee satisfaction?

YESYES!!

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

WOMEN RULEWOMEN RULE!!

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

by promoting women.”by promoting women.”——Nicholas Kristof, “Twitter, Women, and Power,” Nicholas Kristof, “Twitter, Women, and Power,” NYTimesNYTimes

““In my experience, In my experience, women make much women make much

better executives than better executives than men.”men.” —Kip Tindell, CEO, Container Store—Kip Tindell, CEO, Container Store

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find that New Studies find that

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

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

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

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

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

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

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

Inspiring. Building relationships. Inspiring. Building relationships.

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

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

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

other measures. Operating profit other measures. Operating profit

was …was … 56%56% higher.”higher.”

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

THE MORAL THE MORAL IMPERATIVE:IMPERATIVE:

PEOPLE PEOPLE DEVELOPMENTDEVELOPMENT

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

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

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

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

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

In In Good BusinessGood Business, Mihaly Csikszentmihalyi argues , Mihaly Csikszentmihalyi argues persuasively that business has become the center of society. persuasively that business has become the center of society.

As such, an obligation to community is front & center. As such, an obligation to community is front & center. Business as societal bedrock, has theBusiness as societal bedrock, has the

RESPONSIBILITYRESPONSIBILITY to increase theto increase the

““SUMSUM OF HUMANOF HUMAN WELLWELL--BEINGBEING.”.” Business is NOT "part of the community."Business is NOT "part of the community."

In terms of how adults collectively spend their waking In terms of how adults collectively spend their waking

hours …hours … BUSINESSBUSINESS ISIS THETHE COMMUNITYCOMMUNITY.. And should act accordingly. The And should act accordingly. The

(REALLY) good news:(REALLY) good news: Community mindednessCommunity mindedness is a great way (THE best way?) to have is a great way (THE best way?) to have

spirited/committed/ customer-centric work force—and, spirited/committed/ customer-centric work force—and, ultimately, increase (maximize?) profitability!ultimately, increase (maximize?) profitability!

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

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

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

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

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

China/Foxconn:China/Foxconn:

1,000,000

robots/next robots/next 3 years years

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

““Since Since 19961996, manufacturing , manufacturing employment in China itself employment in China itself

has actuallyhas actually fallenfallen by an by an

estimatedestimated 2525 p percentercent. . That’s That’s

overover 30,000,00030,000,000 fewerfewer Chinese workers in that sector, Chinese workers in that sector, even while output soared by even while output soared by 70 percent.70 percent. It’s not that American workers It’s not that American workers

[AND Japanese workers][AND Japanese workers] are being replaced by Chinese are being replaced by Chinese workers. It’s that both American workers. It’s that both American andand Chinese workers are Chinese workers are

being made more efficient [replaced] by automation.”being made more efficient [replaced] by automation.”

——Erik Brynjolfsson and Andrew McAfee, Erik Brynjolfsson and Andrew McAfee, The Second Machine Age: The Second Machine Age: Work, Progress, and Prosperity in a time of Brilliant TechnologiesWork, Progress, and Prosperity in a time of Brilliant Technologies

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

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

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

robotrobot

““The intellectual The intellectual talents of highly talents of highly

trained professionals trained professionals are no more protected are no more protected from automation than from automation than

is the driver’s left is the driver’s left turn.”turn.”

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

Let’s Welcome Our Newest Board Member: “Just like “Just like

other members of the other members of the board, board, the algorithm the algorithm ggets to ets to

vote on whether the firm vote on whether the firm makes an investment in a makes an investment in a ssppecific comecific comppananyy or not or not. . The program will be the The program will be the sixth member of DKV's sixth member of DKV's

board.” board.” ——Business Insider, Business Insider, 13 May 2014:13 May 2014:

““A Hong Kong VC fund has just appointed an algorithm to its board.” A Hong Kong VC fund has just appointed an algorithm to its board.”

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

point from an point from an engineering engineering

perspective. ….”perspective. ….”

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

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

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

throes of a throes of a Great Restructuring. .

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

are lagging behind.”are lagging behind.”

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

The New Logic: Scale w/o EmploymentThe New Logic: Scale w/o Employment

Kodak: 1988/Kodak: 1988/145,000145,000 employees; 2012/bankruptemployees; 2012/bankrupt

Instagram: 30,000,000 customers/Instagram: 30,000,000 customers/

1313 employees employees

(WhatsApp: 450,000,000 (WhatsApp: 450,000,000

customers/ customers/ 5555 employees/ employees/Valued @ $19,000,000,000)Valued @ $19,000,000,000)

Source: Robert Reich’s Blog/0317.15Source: Robert Reich’s Blog/0317.15

““Software is Software is eating the eating the

world.”world.”——Marc AndreessenMarc Andreessen

SENSOR PILLS:SENSOR PILLS: “… Proteus Digital Health is one of “… Proteus Digital Health is one of several pioneers in sensor-based health technology. They several pioneers in sensor-based health technology. They make a silicon chip the size of a grain of sand that is make a silicon chip the size of a grain of sand that is embedded into a safely digested pill that is swallowed. embedded into a safely digested pill that is swallowed. When the chip mixes with stomach acids, the processor When the chip mixes with stomach acids, the processor is powered byis powered by the body’s electricity and transmits data to a patch worn the body’s electricity and transmits data to a patch worn on the skin. That patch, in turn, transmits data via on the skin. That patch, in turn, transmits data via Bluetooth to a mobile app, which then transmits the dataBluetooth to a mobile app, which then transmits the data to a central database where a health technician can to a central database where a health technician can verify if a patient has taken her or his medications. verify if a patient has taken her or his medications.

““This is a bigger deal than it may seem. In 2012, it was This is a bigger deal than it may seem. In 2012, it was estimated that people not taking their prescribed estimated that people not taking their prescribed medications cost medications cost $258 BILLION$258 BILLION in emergency room visits, in emergency room visits, hospitalization, and doctor visits. An average of hospitalization, and doctor visits. An average of 130,000130,000 Americans die each year because they don’t follow their Americans die each year because they don’t follow their prescription regimens closely enough..” (The FDA prescription regimens closely enough..” (The FDA approved placebo testing in April 2012; sensor pills are approved placebo testing in April 2012; sensor pills are ticketed to come to market in 2015 or 2016.) ticketed to come to market in 2015 or 2016.)

Source: Robert Scoble and Shel Israel, Source: Robert Scoble and Shel Israel, Age of Context: Mobile, Sensors, Data and Age of Context: Mobile, Sensors, Data and the Future of Privacythe Future of Privacy

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

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

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

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

INNOVATIONINNOVATION

11/48/48

Lesson48:Lesson48: WTTMSWTTMS

WW

WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTSTUFFSTUFFWINSWINS

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

1. 1. A Bias for A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. 3. AutonomAutonomy and y and EntreEntreppreneurshireneurshipp4. Productivity Through 4. Productivity Through PeoPeopplele5. 5. Hands OnHands On, , Value-DrivenValue-Driven6. 6. Stick toStick to the Knitting the Knitting7. 7. SimSimpplele Form, Form, LeanLean Staff Staff8. Simultaneous 8. Simultaneous Loose-TightLoose-Tight PropertiesProperties

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

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

““WE HAVE A WE HAVE A STRATEGIC PLAN. STRATEGIC PLAN.

IT’S CALLED ‘DOING IT’S CALLED ‘DOING THINGS.’ ”THINGS.’ ” —Herb Kelleher—Herb Kelleher

“DON’T ‘PLAN.’ “DON’T ‘PLAN.’ DO STUFF.”DO STUFF.”

—David Kelley/IDEO

““EXPERIMENT EXPERIMENT FEARLESSLY”FEARLESSLY”

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

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

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

““We made mistakes, of course. Most of them were We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the omissions we didn’t think of when we initially wrote the

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

make the design perfect, we’re already on prototype make the design perfect, we’re already on prototype

versionversion ##55.. By the time our rivals are ready By the time our rivals are ready

with wires and screws, we are on version with wires and screws, we are on version

##1010.. It gets back to It gets back to planning versus actingplanning versus acting: : We act We act from day onefrom day one; ; others plan how others plan how

toto planplan——for monthsfor months.”.”

——Bloomberg by BloombergBloomberg by Bloomberg

““FAIL.FAIL. FORWARD. FORWARD.

FAST.”FAST.”High Tech CEO, Pennsylvania

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

David Kelley/IDEO

“ ‘“ ‘Success,’ Honda said, Success,’ Honda said, ‘can only be achieved ‘can only be achieved

through repeated failure through repeated failure and introspection. and introspection. Success Success rereppresents one resents one ppercent of ercent of yyour work, which results our work, which results onlonlyy from the ninet from the ninetyy-nine -nine

ppercent that is called ercent that is called failurefailure.’ ”.’ ” —Jeffrey Rothfeder, —Jeffrey Rothfeder, Driving Honda: Driving Honda:

Inside the World’s Most Innovative Car CompanyInside the World’s Most Innovative Car Company

Ideas Economy: Ideas Economy: CAN YOUR CAN YOUR

BUSINESS FAIL BUSINESS FAIL FAST ENOUGH TO FAST ENOUGH TO

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

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

inefficiency, fast , fast and furious and and furious and

numerous failures.”numerous failures.”—Kevin Kelly

““The essenceThe essence of capitalism is of capitalism is

encouraging failure, encouraging failure, not rewarding not rewarding

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

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

you must you must

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

Most Mistakes WinsMost Mistakes Wins))

We Are WhatWe Are What We Eat We Eat

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

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

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

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

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

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

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

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

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

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

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

Companies offering Companies offering work to online work to online

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

crowdsourcing.”crowdsourcing.” —Headline, —Headline, FTFT

““Who’s the most Who’s the most interesting person interesting person you’ve met in the you’ve met in the last 90 days? How last 90 days? How do I get in touch do I get in touch

with them?”with them?” —Fred Smith—Fred Smith

Ouch!Ouch!

“The Bottleneck …The Bottleneck …

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

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

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

Top of the Top of the Bottle”Bottle”

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

WE WE AREARE THE THE COMPANYCOMPANY WE KEEP!WE KEEP!

MANAGEMANAGE IT! IT!

InnovateInnovate or Die: or Die:

Measure It!Measure It!

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

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

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

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

Innovation IndexInnovation Index:: Move Move

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

“WOWification “WOWification Scale”Scale” … … THIS THIS

WEEKWEEK. .

InnovateInnovate or Die: or Die:

Ubiquitous!Ubiquitous!

Iron Innovation Equality Law:Iron Innovation Equality Law: The quality and The quality and

quantity and quantity and imaginativenessimaginativeness

of innovation shall be of innovation shall be the same in all the same in all

functionsfunctions —e.g., in HR and —e.g., in HR and purchasing as much as in marketing or purchasing as much as in marketing or

product development.*product development.*

VALUE-ADDED VALUE-ADDED STRATEGIESSTRATEGIES

TGRs:TGRs:8/808/80

CustomersCustomers describing their service describing their service

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

the service experience they provide the service experience they provide asas

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

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

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

““May I clean May I clean your glasses, your glasses,

sir?”sir?”

It It BEGINSBEGINS (and (and ENDSENDS) )

in the …in the …

PARKINGPARKING LOTLOT**

*Disney*Disney

<TG<TGWandand … …

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

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

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

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

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

TGRs:TGRs: 3 Minutes3 Minutes

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

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

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

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

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

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

THREETHREE--MINUTEMINUTE PHONEPHONE CALLCALL WOULD WOULD

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

RUPTURE.RUPTURE.**

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

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

PROBLEM. THEPROBLEM. THE

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

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

TGRs:TGRs:LBTs*LBTs*

*Little BIG Things*Little BIG Things

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

$B$BSource: PepsiCoSource: PepsiCo

Big carts =Big carts =

1.5X1.5XSource: WalmartSource: Walmart

2X:2X: “When Friedman“When Friedman

slisligghtlhtly y curvedcurved the right angle of the right angle of

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

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

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

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

Machine GamblingMachine Gambling

““Pleasing” odor #1 vs. Pleasing” odor #1 vs. “pleasing” odor #2: “pleasing” odor #2:

+45%+45% revenue revenue Source:Source: “Effects of Ambient Odors on Slot-Machine Useage in Las Vegas “Effects of Ambient Odors on Slot-Machine Useage in Las Vegas

Casinos,” reported inCasinos,” reported in Natasha Dow Schull, Natasha Dow Schull, Addiction By Design: Addiction By Design: Machine Gambling in Las Vegas Machine Gambling in Las Vegas (66% revenue, 85% profit)(66% revenue, 85% profit)

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

Social Business/ Social Business/ Customer Customer

EngagementEngagement

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

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

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

Welcome to the Age of Social Media:Welcome to the Age of Social Media: “It “It takes 20 years to build takes 20 years to build a reputation and five a reputation and five minutes to ruin it.minutes to ruin it. Also, Also, the Internet and technology have the Internet and technology have

made customers more demanding., made customers more demanding., and they expect information, and they expect information,

answers, products, responses, and answers, products, responses, and resolutions sooner than ASAP.”resolutions sooner than ASAP.” —John —John

DiJulius, DiJulius, The Customer Service Revolution: Overthrow ConventionalThe Customer Service Revolution: Overthrow Conventional

Business, Inspire Employees, and Change the WorldBusiness, Inspire Employees, and Change the World

Welcome to the Age of Social Media:Welcome to the Age of Social Media: “What used to be “word of “What used to be “word of

mouth” is now “word of mouth” is now “word of mouse.” You are either mouse.” You are either

creating brand ambassadors creating brand ambassadors or brand terrorists doing or brand terrorists doing

brand assassination.”brand assassination.”——John DiJulius, John DiJulius, The Customer Service Revolution: Overthrow The Customer Service Revolution: Overthrow

Conventional Business, Inspire Employees, and Change the WorldConventional Business, Inspire Employees, and Change the World

Welcome to the Age of Social Media:Welcome to the Age of Social Media:

“The customer is “The customer is in complete in complete control of control of

communication.”communication.”——John DiJulius, John DiJulius, The Customer Service Revolution: Overthrow The Customer Service Revolution: Overthrow

Conventional Business, Inspire Employees, and Change the WorldConventional Business, Inspire Employees, and Change the World

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

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

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

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

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

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

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

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

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

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

brand.”brand.”

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

““Caesars’ Caesars’ Entertainment Entertainment have bet have bet

their future on their future on harvestinharvestingg ppersonal ersonal

data rather than data rather than develodeveloppiningg the fanciest the fanciest

pproroppertieserties.”.” —Adam Tanner, —Adam Tanner,

What Stays in Vegas: What Stays in Vegas: The World of Personal Data—Lifeblood of Big The World of Personal Data—Lifeblood of Big Business—and the End of Privacy as We Know itBusiness—and the End of Privacy as We Know it

DESIGNDESIGN!!

Design Design RulesRules!!

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

*August 2011*August 2011

““YouYou knowknow a a designdesign isis goodgood

whenwhen you you want want to to licklick itit.”.” —Steve Jobs—Steve Jobs

Source: Source: Design: Intelligence Made VisibleDesign: Intelligence Made Visible,, Stephen Bayley & Terence ConranStephen Bayley & Terence Conran

““Design is Design is

treated like treated like a relia religgionion at at

BMW.”BMW.” —Fortune—Fortune

Hypothesis:Hypothesis: DESIGNDESIGN is the is the pprincirincippalal

differencedifference

between between lovelove

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

Design is …Design is …

NEVERNEVER neutralneutral..

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

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

Dieter Rams on a well-designed Dieter Rams on a well-designed

new object:new object: “Innovative, “Innovative, useful, aesthetic, useful, aesthetic, understandable, understandable,

unobtrusive, honest, unobtrusive, honest, long-lasting, thorough, long-lasting, thorough,

environmentally friendly environmentally friendly and feature as little and feature as little design as possible.”design as possible.”——Ian Parker, Ian Parker, New YorkerNew Yorker, 23 March 2015, on Jony Ives, 23 March 2015, on Jony Ives

Apple design: Apple design:

“Huge “Huge degree of degree of

carecare.”.”——Ian Parker, Ian Parker, New YorkerNew Yorker, 23 March 2015, on Jony Ives, 23 March 2015, on Jony Ives

““Typically, design is a Typically, design is a vertical stripe in the vertical stripe in the chain of events in a chain of events in a

product’s delivery. product’s delivery. [At [At

Apple, it’s]Apple, it’s] a long, horizontal a long, horizontal stripe, where design is stripe, where design is

part of every part of every conversation.” conversation.”

——Robert Brunner, former Apple design chiefRobert Brunner, former Apple design chief

““Designers are people who think with Designers are people who think with their hearts.”their hearts.” —James, age 10—James, age 10

“I would like to be a designer because you “I would like to be a designer because you could make things that would help people.”could make things that would help people.”

—Jade, age 10 —Jade, age 10

“If there was no design, there would be nothing “If there was no design, there would be nothing to do, and nothing would progress or get to do, and nothing would progress or get

better. The world would fall apart.”better. The world would fall apart.” —Anna, age 11—Anna, age 11

“My favourite design is the Nike ‘tick’ because “My favourite design is the Nike ‘tick’ because it makes me feel confident—even though I am it makes me feel confident—even though I am

not so good at sports.”not so good at sports.” —Raoul, age 11—Raoul, age 11

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

CCDDOO***Chief *Chief DDesignesign Officer Officer

First Steps: First Steps: “Beauty Contest”!“Beauty Contest”!

1. Select one form/document: invoice, 1. Select one form/document: invoice, airbill, sick leave policy, customer airbill, sick leave policy, customer returns claim form.returns claim form.

2.2. Rate the selected doc on a scale of 1 to Rate the selected doc on a scale of 1 to 10 (1 = Bureaucratica Obscuranta/Sucks; 10 (1 = Bureaucratica Obscuranta/Sucks; 10 = Work of Art) on four dimensions:10 = Work of Art) on four dimensions:

BeautBeauty. y. GraceGrace. . ClaritClarity. y. SimplicitSimplicity.y.3. Re-invent!3. Re-invent!4.4. Repeat, with a new selection,Repeat, with a new selection, every 15 working days.every 15 working days.

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

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

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

WOMENWOMEN.”.”

Source: Headline, Economist

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

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

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

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

And yet many companies do just that—even ones that are confidant that they have a winning strategy when it And yet many companies do just that—even ones that are confidant that they have a winning strategy when it comes to women. Consider Dell’s …”comes to women. Consider Dell’s …”

Source: Michael Silverstein and Kate Sayre, “The Female Economy,” Source: Michael Silverstein and Kate Sayre, “The Female Economy,” HBRHBR, 09.09, 09.09

““Women areWomen are THETHE majority majority

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

““The The MOST MOST SIGNIFICANT SIGNIFICANT

VARIABLEVARIABLE inin EVERYEVERY sales situation is thesales situation is the

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

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

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

The Perfect Answer

Jill and Jack buy slacks in black…

Sales/After-sales ProcessSales/After-sales Process

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

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

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

Added” Added” OpportunityOpportunity

““Rolls-RoyceRolls-Royce now earns now earns

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

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

them.”them.”——EconomistEconomist

IBIBMMtoto

IIBBMM

UUPPSS toto

UPUPSS

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

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

(“Solve”)(“Solve”)

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

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

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

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

S&P 500S&P 500

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

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

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

seems obviousseems obvious … …

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

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

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

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

AND THE AND THE WINNERS WINNERS

AREN’T/AREN’T/AREARE

The Magnificent The Magnificent Monsters of Monsters of

MotuekaMotueka(et al.)(et al.)

THETHE RED RED CARPET CARPET STORESTORE

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

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

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

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

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

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

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

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

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

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

Independent Independent Stores in Stores in

AmericaAmerica —by George Whalin—by George Whalin

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

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

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

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

priced from priced from

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

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

globe.”globe.”

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

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

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

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

““BE THE BEST. BE THE BEST. IT’S THE ONLY IT’S THE ONLY

MARKET THAT’S MARKET THAT’S NOT CROWDED.”NOT CROWDED.”

From: From: Retail Superstars: Inside the 25 BestRetail Superstars: Inside the 25 Best Independent Stores in America,Independent Stores in America, George Whalin George Whalin

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

Dominators!Dominators!

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

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

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

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

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

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

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

EntrepreneursEntrepreneurs and and

Businesspersons Businesspersons AllAll

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

BUSINESSBUSINESS

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

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

Excellence & WOW!Excellence & WOW!

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

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

Innovation.Innovation.))

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

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

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

entreentreppreneursreneurs.. When we When we

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

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

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

——Muhammad Yunus,Muhammad Yunus,

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

Distinct or Distinct or

extinct!extinct!

““The average age of a The average age of a startup founder is 40. startup founder is 40. And And hihiggh-h-ggrowth starturowth startupps s are nearlare nearlyy twice as twice as

likellikelyy to be launched b to be launched byy ppeoeopple over 55 as ble over 55 as byy

ppeoeopplele 20-34 20-34.”.” —Vivek Wadhwa, Kauffman foundation (—Vivek Wadhwa, Kauffman foundation (TimeTime/0325.13)/0325.13)

““The growth and The growth and success of women-success of women-

owned businesses is owned businesses is one of the most one of the most

profound changes profound changes takingtaking place in the place in the

business world today.”business world today.” ——

Margaret Heffernan, Margaret Heffernan, How She Does ItHow She Does It

LEADERSHIPLEADERSHIP

25/5025/50

2525

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

stores— stores— at least at least 2525

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

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

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

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

MBWAMBWA

MManaginganaging

BBy y

WWanderingandering

AAroundround

5050

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

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

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

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

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

as much asas much as 5050 percent—percent—

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

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

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

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

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

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

““IT’SIT’S

ALWAYSALWAYS SHOWTIME.”SHOWTIME.”

—

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

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

““Nothing is Nothing is so contagious so contagious

as as enthusiasm.”enthusiasm.”

—Samuel Taylor Coleridge—Samuel Taylor Coleridge

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

enthusiasm.”enthusiasm.”

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

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

4, 8, 124, 8, 12

““The The 44 most most

important important wordswords in any in any

organization are …organization are …

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

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

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

MBWA MBWA 88: :

Change the World With EIGHT Change the World With EIGHT WordsWords

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

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

Are you a full-fledged “professional” when it

comes to helping?

MBWA MBWA 1212: :

Change the WorldChange the World With TWELVE Words With TWELVE Words

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

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

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

***What (new thing) have you learned (in the last 24 hours)? ***What (new thing) have you learned (in the last 24 hours)? ********************* * ********************* *

AcknowledgementAcknowledgement!!

AcknowledgementAcknowledgement!!

““The deepest The deepest urgeurge

in human nature in human nature is the desire to is the desire to

be important.”be important.” —John —John

DeweyDewey(In Dale Carnegie, (In Dale Carnegie, How to Win Friends and Influence How to Win Friends and Influence

People People (“The BIG Secret of Dealing With People”)(“The BIG Secret of Dealing With People”)

"Appreciative words are "Appreciative words are the most powerful forcethe most powerful force

for good on earth.”for good on earth.”——George W. Crane, physician, columnistGeorge W. Crane, physician, columnist

““The two most powerful The two most powerful things in existence: athings in existence: a

kind word and akind word and a thoughtful gesture.” thoughtful gesture.”

——Ken Langone, co-founder, Home DepotKen Langone, co-founder, Home Depot

““AcknowledAcknowledggee” … ” … perhaps the most perhaps the most

powerful word (and powerful word (and idea) in the English idea) in the English

language—and language—and manager’s tool kit!manager’s tool kit!

““Employees who Employees who don't feel significant don't feel significant

rarely make rarely make significant significant

contributions.”contributions.” —Mark Sanborn—Mark Sanborn

““PeoPeopple want to be le want to be ppartart of somethinof somethingg lar largger than er than

themselvesthemselves.. They want They want to be part of something to be part of something

they’re really they’re really pproudroud of, that of, that they’ll they’ll fifigghtht forfor,, sacrificesacrifice forfor,, trusttrust.”.” —Howard Schultz, Starbucks

11

““If there is any If there is any ONEONE ‘secret’ ‘secret’

to effectiveness, it is concentration. to effectiveness, it is concentration. Effective executives do first things first Effective executives do first things first

… … and they do and they do

ONEONE thing at a thing at a time.”time.” —Peter Drucker—Peter Drucker

You = Your You = Your calendarcalendar**

*The calendar *The calendar NEVERNEVER lies.lies.

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

‘TO-DON’T ’‘TO-DON’T ’

List !”List !”

Meetings ROCKMeetings ROCK!!(Make that: SHOULD Rock)(Make that: SHOULD Rock)

Bitch all you Bitch all you want, but want, but meetinmeetinggss

are what you are what you (boss/leader)(boss/leader) dodo!!

Meetings are Meetings are #1#1 thing thing

bosses bosses dodo. Therefore, . Therefore, 100%100%

of those meetings:of those meetings: EXCELLENCE. EXCELLENCE. ENTHUSIASM. ENTHUSIASM. ENGAGEMENT. ENGAGEMENT.

LEARNING. TEMPO. LEARNING. TEMPO. WORK-OF-ARTWORK-OF-ART.. DAMNDAMN ITIT..

#1#1 CEOCEO Failing?Failing?

““If I had toIf I had to pick one failing pick one failing

of CEOs, it’sof CEOs, it’s that …that …

——Co-founder of one of the largest investment services firms in the USA/worldCo-founder of one of the largest investment services firms in the USA/world

“If I had to pick one failing of

CEOs, it’s that … they don’t read enough.”

1818

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

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

18 …18 …

18 … 18 … secondsseconds!!

(An (An obsessionobsession with) Listening is ... the ultimate mark with) Listening is ... the ultimate mark

of of RespectRespect..

Listening is ... the heart and soul of Listening is ... the heart and soul of EngagementEngagement..Listening is ... the heart and soul of Listening is ... the heart and soul of KindnessKindness..Listening is ... the heart and soul of Listening is ... the heart and soul of ThoughtfulnessThoughtfulness..Listening is ... the basis for true Listening is ... the basis for true CollaborationCollaboration..Listening is ... the basis for true Listening is ... the basis for true PartnershipPartnership..Listening is ... a Listening is ... a Team SportTeam Sport..Listening is ... a Listening is ... a Developable Individual SkillDevelopable Individual Skill.* .* (*Though women (*Though women are are farfar better at it than men.) better at it than men.)

Listening is ... the basis forListening is ... the basis for CommunityCommunity..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures that workJoint Ventures that work..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures thatJoint Ventures that growgrow..Listening is ... the core of Listening is ... the core of effective Cross-functional effective Cross-functional CommunicationCommunication* * (*Which is in turn Attribute #1 of (*Which is in turn Attribute #1 of organization effectiveness.)organization effectiveness.)

(cont.)(cont.)

Suggested Suggested Core Value Core Value #1:#1: “We are Effective “We are Effective

Listeners—we treat Listening Listeners—we treat Listening EXCELLENCEEXCELLENCE as the as the Centerpiece of our Centerpiece of our

Commitment to Respect and Commitment to Respect and Engagement and Community Engagement and Community

and Growth.”and Growth.”

LISTEN = “PROFESSION” =

STUDY = PRACTICE = EVALUATION =

ENTERPRISE VALUE

Hard is Soft.Hard is Soft.Soft is Hard.Soft is Hard.

100%100%

Leaders:

Communications failure …

100%*

*Your fault!

0/8000/800

““Normal” =Normal” = “0 “0 forfor 800” 800”

*There are … *There are … ZEROZERO … “normal people” in the history books. … “normal people” in the history books.

““We are crazy. We should do We are crazy. We should do something when people say it is something when people say it is

‘crazy.’‘crazy.’ If people say If people say something is ‘good’, something is ‘good’, it means someone it means someone

else is already doing else is already doing it.”it.”

—Hajime Mitarai, CEO, Canon—Hajime Mitarai, CEO, Canon

““INSANELY GREAT”INSANELY GREAT”STEVE JOBSSTEVE JOBS

“RADICALLY THRILLING”“RADICALLY THRILLING” BMW

“ASTONISH ME”“ASTONISH ME” SERGEI DIAGHLEV, TO A LEAD DANCER

“BUILD SOMETHING GREAT”“BUILD SOMETHING GREAT” HIROSHI YAMAUCHI, NINTENDO, TO A SENIOR GAME DESIGNER

“MAKE IT IMMORTAL”“MAKE IT IMMORTAL” DAVID OGILVY, TO A COPYWRITER.

““Let us create Let us create such a building such a building

that future that future generations will generations will

take us for take us for lunaticslunatics.”.”

—the church hierarchs at Seville, on a prospective cathedral—the church hierarchs at Seville, on a prospective cathedral

““If things seem under If things seem under control, you’re just not control, you’re just not going fast enough.” going fast enough.”

——Mario Andretti, race driverMario Andretti, race driver

““I’m not comfortable I’m not comfortable unless I’m uncomfortable.” unless I’m uncomfortable.”

——Jay ChiatJay Chiat

““If it works, it’s obsolete.”If it works, it’s obsolete.”

——Marshall McLuhanMarshall McLuhan

!

AppendixAppendixThe 34 The 34 BFOsBFOs**

*BFO/Blinding Flash of the Obvious*BFO/Blinding Flash of the Obvious

This Is the This Is the (OBVIOUS)(OBVIOUS) Stuff I Care About. Stuff I Care About.

This Is the This Is the (OBVIOUS)(OBVIOUS) Stuff, the Absence ofStuff, the Absence of

Which Sends Me Into a …Which Sends Me Into a …

BLIND RAGEBLIND RAGE..

Tom Peters/14 May 2014Tom Peters/14 May 2014

NOTE: In 1985, I gave a 2-day seminar to YPO members in Manhattan. As we moved to close, I asked for feedback. Early on, a chap by the name of Manny Garcia got up to speak—Manny, who became a pal, was one of Burger King’s top franchisees. He began, “I really didn’t hear anything new in the two days”—you could have heard my sharp intake of breath from the back row. He continued, “I’d add that this was probably the best seminar I’ve attended in my many years in business.” Huh? “I’d call it a ‘BLINDING FLASH OF THE OBVIOUS.’ We KNOW all these things—but time and again we fail to relentlessly practice them.” In retrospect, I consider Manny’s feedback to be the best I’ve ever gotten. There will be … GUARANTEED … nothing new in the slides in this set. We know putting people REALLY first translates into mid- to long-term growth and maximized profitability. SO WHY DON’T WE DO IT? We know … GREAT TRAINING … pays for itself 100 times over—in business just much as in sports and the arts. SO WHY DON’T WE DO IT? We know a simple “THANK YOU” is the greatest of all motivators. SO WHY DON’T WE DO IT? And on—and on—it goes.

Frankly, I am in a rotten mood. If I was preaching rocket science, and people didn’t “get it,” that’d be one thing. But each point in this section amounts to, beyond doubt, a, yes … BLINDING FLASH OF THE OBVIOUS.

Damn it! Let’s get a move on! It is indeed obvious, then … NO EXCUSES!

The 34 BFOsThe 34 BFOs**

*Blinding Flash(es) of the Obvious*Blinding Flash(es) of the Obvious

BFOBFO #1#1:: If you (RELIGIOUSLY) help people— If you (RELIGIOUSLY) help people—

EVERY SINGLE PERSON, JUNIOR OR EVERY SINGLE PERSON, JUNIOR OR SENIOR, LIFER OR TEMPSENIOR, LIFER OR TEMP—grow and —grow and reach/exceed their perceived potential, then reach/exceed their perceived potential, then they in turn will bust their individual and they in turn will bust their individual and collective butts to create great experiences for collective butts to create great experiences for Clients—and the “bottom line” will get fatter Clients—and the “bottom line” will get fatter and fatter and fatter. (ANYBODY LISTENING?) and fatter and fatter. (ANYBODY LISTENING?)

((PEOPLEPEOPLE FIRSTFIRST = = MAXIMIZEDMAXIMIZED PROFITABILITYPROFITABILITY. . PERIODPERIOD.) .) (ANYBODY LISTENING?)(ANYBODY LISTENING?) (FYI: (FYI: “People “People FIRST” message 10X more urgent than ever in FIRST” message 10X more urgent than ever in the high-engagement “AGE OF SOCIAL the high-engagement “AGE OF SOCIAL BUSINESS.”)BUSINESS.”)

BFO 2:BFO 2: ENABLING “ALL ENABLING “ALL HANDS” GROWTH/ PERSONAL HANDS” GROWTH/ PERSONAL DEVELOPMENT IS … LEADER DEVELOPMENT IS … LEADER

DUTY DUTY #1#1..

(And ALL good things flow there from.)(And ALL good things flow there from.)

BFO 3:BFO 3: The “CTO”/Chief Training Officer The “CTO”/Chief Training Officer

should (should (MUST!MUST! ) be on a par with the ) be on a par with the CFO/CMO. CFO/CMO.

TRAINING = TRAINING = INVESTMENT #1.INVESTMENT #1.

(8 of 10 CEOs see training as an “expense,” (8 of 10 CEOs see training as an “expense,” not an investment/prime asset booster.) not an investment/prime asset booster.) ( ( ““Our training courses are so good Our training courses are so good they make me want to giggle.” “Our they make me want to giggle.” “Our trainers are on the same pay scale as trainers are on the same pay scale as our engineers.”our engineers.” ) (In a 45-minute “tour ) (In a 45-minute “tour

d’horizon” of the enterprise: GUARANTEE 9 of d’horizon” of the enterprise: GUARANTEE 9 of 10 CEOs* (*10 of 10?) wouldn’t once mention 10 CEOs* (*10 of 10?) wouldn’t once mention

training. training. THAT = DISGRACE.)THAT = DISGRACE.)

BFO 4:BFO 4: OUT-READ ‘EM. OUT-READ ‘EM. AGE 17. AGE 77.AGE 17. AGE 77. 2014: READ & GROW … 2014: READ & GROW …

or wilt. or wilt. (One financial services superstar pegs CEO problem #1: “They (One financial services superstar pegs CEO problem #1: “They don’t read enough.”) STUDENTHOOOD (OBSESSION don’t read enough.”) STUDENTHOOOD (OBSESSION THEREWITH) (for ALL of us) FOR LIFE!THEREWITH) (for ALL of us) FOR LIFE!

BFO 5:BFO 5: Organizations one & all exist for ONE reason … Organizations one & all exist for ONE reason … TO TO BE OF SERVICE. BE OF SERVICE. PERIODPERIOD.. (And effective leaders in turn are … (And effective leaders in turn are …

SERVANT LEADERS. SERVANT LEADERS. PERIODPERIOD.).)

BFO 6:BFO 6: The … HEART OF THE MATTER (productivity, The … HEART OF THE MATTER (productivity, quality, service, you name it) … is the typically under-quality, service, you name it) … is the typically under-

attended … attended … FIRST-LINE BOSSFIRST-LINE BOSS.. (Your FULL (Your FULL

CADRE of 1st-line bosses is arguably … CADRE of 1st-line bosses is arguably … ASSET ASSET #1#1.) .)

BFO 7:BFO 7: WTTMSWWTTMSW. (Whoever Tries The Most . (Whoever Tries The Most Stuff Wins.) WTTMSASTMSUTFW. (Whoever Tries The Stuff Wins.) WTTMSASTMSUTFW. (Whoever Tries The Most Stuff And Screws The Most Stuff Up The Fastest Most Stuff And Screws The Most Stuff Up The Fastest Wins.) Practical translation #1: Winning through the Wins.) Practical translation #1: Winning through the Discipline of QUICK PROTOTYPES. Discipline of QUICK PROTOTYPES.

READY. FIRE. AIM.READY. FIRE. AIM. Winners:Winners:

““RELENTLESS EXPERIMENTATION.”RELENTLESS EXPERIMENTATION.”

““A Bias For Action”: A Bias For Action”: #1#1 Success Requisite in 1982. Success Requisite in 1982.

““A Bias For Action”: A Bias For Action”: #1#1 Success Requisite in 2014. Success Requisite in 2014.

..

BFO 8:BFO 8: “Fail faster. Succeed sooner.” “Fail faster. Succeed sooner.”

““FAIL. FORWARD. FAST.”FAIL. FORWARD. FAST.”““Fail. Fail again. Fail better.”Fail. Fail again. Fail better.”

““REWARD excellent failures. PUNISH REWARD excellent failures. PUNISH mediocre successes.”mediocre successes.”Book/Farson: “Whoever Makes The Most Mistakes Book/Farson: “Whoever Makes The Most Mistakes Wins.”Wins.”We do NOT “accept”/ “tolerate” failures. We do NOT “accept”/ “tolerate” failures.

WE CELEBRATE FAILURES.WE CELEBRATE FAILURES.

BFO 9:BFO 9:

Excellence is NOT an “aspiration.”Excellence is NOT an “aspiration.”Excellence IS the next 5 minutes.Excellence IS the next 5 minutes. (Or not.)(Or not.)

BFO 10:BFO 10: Enabling change Rule #1: It’s NOT NOT Enabling change Rule #1: It’s NOT NOT NOT about “vanquishing (‘ignorant’) foes.” It’s NOT about “vanquishing (‘ignorant’) foes.” It’s ALL ALL ALL about RELENTLESSLY seeking & ALL ALL ALL about RELENTLESSLY seeking &

recruiting & nurturing … recruiting & nurturing … ALLIESALLIES..

BFO 11: BFO 11: The Gospel of “SMALL WINS.”The Gospel of “SMALL WINS.” You You and your Allies cobble together a skein of and your Allies cobble together a skein of successful trials (“small wins”); momentum successful trials (“small wins”); momentum around this portfolio of demos more important around this portfolio of demos more important than any high-investment Big Victory. than any high-investment Big Victory.

(ALLLIES + SMALL WINS + (ALLLIES + SMALL WINS + MOMENTUM = UNSTOPPABLE.)MOMENTUM = UNSTOPPABLE.)

BFO 12:BFO 12: Year = 220 LUNCHES. Year = 220 LUNCHES. WASTE NOT ONEWASTE NOT ONE.. Cross-functional Cross-functional SNAFUs #1 problem for most orgs. Software … SNAFUs #1 problem for most orgs. Software … WILL NOT … fix it. ONLY … “Social Stuff” worksWILL NOT … fix it. ONLY … “Social Stuff” works—e.g., makin’ pals in other functions; LUNDH = —e.g., makin’ pals in other functions; LUNDH = Strategy #1. Strategy #1.

Goal: Goal: XFX/Cross-Functional XFX/Cross-Functional ExcellenceExcellence … or die trying. Requisite: … or die trying. Requisite: DAILY/RELENTLESS ATTENTION & ALL-HANDS-DAILY/RELENTLESS ATTENTION & ALL-HANDS-ALL-THE-TIME ENGAGEMENT.ALL-THE-TIME ENGAGEMENT.

BFO 13:BFO 13: In Search of Excellence In Search of Excellence in 6 words:in 6 words:

“Hard is soft. Soft is Hard.”“Hard is soft. Soft is Hard.” (E.g., Numbers are the “soft stuff”—witness the crash. (E.g., Numbers are the “soft stuff”—witness the crash. Solid relationships/ integrity/trust/teamwork = True Solid relationships/ integrity/trust/teamwork = True “hard stuff.”)“hard stuff.”)

Strategy is important.Strategy is important.Systems are important.Systems are important.

CULTURE is … CULTURE is … MOREMORE IMPORTANT. IMPORTANT.

(Serious change = Tackling the culture. PERIOD.)(Serious change = Tackling the culture. PERIOD.)(In his autobiography, even “Mr. Analysis,” Lou (In his autobiography, even “Mr. Analysis,” Lou Gerstner, IBM turnaround CEO, reluctantly Gerstner, IBM turnaround CEO, reluctantly acknowledged culture’s unequivocal primacy in the big-acknowledged culture’s unequivocal primacy in the big-change-game.)change-game.)

BFO 14:BFO 14: We Are What We Eat = We Are What We Eat = WE ARE WE ARE WHO WE HANG OUT WITH.WHO WE HANG OUT WITH. (“Hang out (“Hang out with ‘cool’ and thou shalt become more cool. with ‘cool’ and thou shalt become more cool. Hang out with ‘dull’ and thou shalt become Hang out with ‘dull’ and thou shalt become more dull.”) more dull.”) RELIGIOUSLY-CONSCIOUSLY MANAGE RELIGIOUSLY-CONSCIOUSLY MANAGE “HANG OUT.”“HANG OUT.” EVERY “hang out decision” EVERY “hang out decision” (employees/customers/ (employees/customers/ vendors/consultants/lunch mates/board vendors/consultants/lunch mates/board

composition/ locale/etc.) is a … composition/ locale/etc.) is a … STRATEGIC STRATEGIC INNOVATION DECISIONINNOVATION DECISION..(Diversity [ON ANY DIMENSION YOU CAN (Diversity [ON ANY DIMENSION YOU CAN NAME] an imperative in confusing times.)NAME] an imperative in confusing times.)

(Hire for … (Hire for … CURIOSITYCURIOSITY. EXPLICITLY.). EXPLICITLY.)

BFO 15:BFO 15: Apple market cap surpasses Exxon Mobil. Apple market cap surpasses Exxon Mobil.

Why? Why? D-E-S-I-G-ND-E-S-I-G-N. Are . Are YOUYOU obsessed by … obsessed by …

DESIGNDESIGN? (In? (In EVERYEVERY nook and cranny of nook and cranny of EVERYEVERY tiny or humongous enterprise—tiny or humongous enterprise—and in your own and in your own professional affairs.) professional affairs.) (DESIGN is an instinctive STATE OF (DESIGN is an instinctive STATE OF MIND as well as a set of practices.) (Less than MIND as well as a set of practices.) (Less than EXCELLENCE in functionality = Unacceptable.)EXCELLENCE in functionality = Unacceptable.)(Less than SUPER-COOL aesthetics = Unacceptable.) (Less than SUPER-COOL aesthetics = Unacceptable.)

BFO 16:BFO 16: LBT/TGR MULTIPLIER POWER.LBT/TGR MULTIPLIER POWER.

Ceaselessly seek the LBTs/ Ceaselessly seek the LBTs/ Little BIG ThingsLittle BIG Things. . ““Small stuff” … BIG Impact: Walmart increases (mere) Small stuff” … BIG Impact: Walmart increases (mere) shopping basket size, small appliance sales up 50%. shopping basket size, small appliance sales up 50%. Reducing TGWs/Things Gone Wrong invaluable. BUT … Reducing TGWs/Things Gone Wrong invaluable. BUT … put at least as much effort into remorselessly put at least as much effort into remorselessly

accumulating accumulating TGRs/THINGS GONE TGRs/THINGS GONE RIGHTRIGHT. . (E.g. Disney’s OBSESSION with a memorable Start & (E.g. Disney’s OBSESSION with a memorable Start & Finish courtesy … PARKING LOT EXCELLENCE.) Finish courtesy … PARKING LOT EXCELLENCE.)

BFO 17:BFO 17: WOMENWOMEN BUY EVERYTHING. BUY EVERYTHING. WOMENWOMEN ARE THE MOST EFFECTIVE LEADERS. ARE THE MOST EFFECTIVE LEADERS. WOMENWOMEN ARE THE MOST SUCCESSFUL ARE THE MOST SUCCESSFUL INVESTORS.INVESTORS. (Does your organization … UNMISTAKABLY … reflect (Does your organization … UNMISTAKABLY … reflect these immutable truths from stem to stern?) (these immutable truths from stem to stern?) (“This “This will be the women’s century.”will be the women’s century.” —Dilma Rousseff, —Dilma Rousseff, president of Brazil, opening address U.N. General president of Brazil, opening address U.N. General Assembly)Assembly)

BFO 18:BFO 18: KEEP ADDING VALUE. KEEP ADDING VALUE.

IBIBMM To I To IBBM: Machine dominance to Business M: Machine dominance to Business

Services dominance. UServices dominance. UPPS to UPS to UPSS: delivering : delivering Parcels to Managing Logistics Systems. Parcels to Managing Logistics Systems. (EVERYONE’s game: “Customer (EVERYONE’s game: “Customer SATISFACTION” to “Systemic customer SATISFACTION” to “Systemic customer SOLUTIONS”)SOLUTIONS”)

BFO 19:BFO 19: Forget B-I-G. (100% of biggies Forget B-I-G. (100% of biggies UNDER-perform long-term.) Instead UNDER-perform long-term.) Instead build national wealth around …build national wealth around …

“MITTELSTAND” companies—“MITTELSTAND” companies—MIDSIZE SUPERSTAR MIDSIZE SUPERSTAR NICHE-/MICRO-NICHE NICHE-/MICRO-NICHE DOMINATORSDOMINATORS —in ANY category you can —in ANY category you can name. (C.f., Germany’s Mittelstand worldbeaters--#1 name. (C.f., Germany’s Mittelstand worldbeaters--#1

global exporter for years.) (Battle cry: global exporter for years.) (Battle cry: “BE THE “BE THE BEST. IT’S THE ONLY MARKET THAT’S BEST. IT’S THE ONLY MARKET THAT’S NOT CROWDED.”NOT CROWDED.” WHYWHY ELSEELSE BOTHERBOTHER?)?)

(FYI: (FYI: ANYTHING/EVERYTHINGANYTHING/EVERYTHING subject to subject to

MIND-BOGGLING ADDED-VALUE/ MIND-BOGGLING ADDED-VALUE/ DIFFERENTIATIONDIFFERENTIATION. . (BANISH the word … “commodity.”)(BANISH the word … “commodity.”)

BFO 20:BFO 20: The problem is RARELY the problemThe problem is RARELY the problem. The . The lackluster RESPONSE to the problem is invariably the lackluster RESPONSE to the problem is invariably the real problem. Answer? Slavishly adhere to these two real problem. Answer? Slavishly adhere to these two

response commandments: response commandments: LIGHTENING-FAST LIGHTENING-FAST RESPONSE OVERKILL. UNEQUIVOCAL RESPONSE OVERKILL. UNEQUIVOCAL QUICK-TIME APOLOGY. QUICK-TIME APOLOGY.

BFO 21:BFO 21: What do people (MOST) desire—including thee What do people (MOST) desire—including thee

and me? and me? ACKNOWLEDGEMENTACKNOWLEDGEMENT. . So: Show your appreciation … BIG TIME/ALL THE TIME. So: Show your appreciation … BIG TIME/ALL THE TIME. (Track it … RELIGIOUSLY!) (“Acknowledgement” is … (Track it … RELIGIOUSLY!) (“Acknowledgement” is … THE MOST POWERFUL WORD IN THE LEADER’S THE MOST POWERFUL WORD IN THE LEADER’S VOCABULARY.)VOCABULARY.)

BFO 22:BFO 22: The two most powerful words in the English The two most powerful words in the English language are? language are?

No contest: No contest: “THANK YOU.”“THANK YOU.” (ACT ACCORDINGLY—e.g., OBSESSIVELY.)(ACT ACCORDINGLY—e.g., OBSESSIVELY.)

BFO 23:BFO 23: Have you done your Have you done your MBWAMBWA/ Managing By / Managing By Wandering Around … TODAY? If not, why not? (Hint: Wandering Around … TODAY? If not, why not? (Hint: There are … There are … ZEROZERO ACCEPTABLE EXCUSES.) ACCEPTABLE EXCUSES.)

BFO 24:BFO 24: Your CALENDAR knows your TRUE priorities. Your CALENDAR knows your TRUE priorities.Do YOU?Do YOU?

You … ARE … your calendar.You … ARE … your calendar.Your calendar … NEVER LIES.Your calendar … NEVER LIES.(Drucker: Best bosses do ONE thing at a Time)(Drucker: Best bosses do ONE thing at a Time)

BFO 25:BFO 25: What is the individual’s/organization’s #1 What is the individual’s/organization’s #1

enduring strategic asset? Easy: enduring strategic asset? Easy: ASSET #1ASSET #1 = = INDIVIDUAL AND COLLECTIVE EXCELLENCE AT … INDIVIDUAL AND COLLECTIVE EXCELLENCE AT …

L-I-S-T-E-N-I-N-G.L-I-S-T-E-N-I-N-G. (Listening can be … (Listening can be … TAUGHT. Listening PER SE is a … PROFESSION. Are YOU TAUGHT. Listening PER SE is a … PROFESSION. Are YOU a “stellar professional listener”? THINK ABOUT IT. a “stellar professional listener”? THINK ABOUT IT. PLEASE.)PLEASE.)

BFO 26:BFO 26: LEADERSHIP is not about ABSTRACTIONS.LEADERSHIP is not about ABSTRACTIONS.LEADERSHIP is about … MASTERING DISCREET SKILLS. LEADERSHIP is about … MASTERING DISCREET SKILLS. E.g.:E.g.:

““Aggressive ‘professional’ listener.”Aggressive ‘professional’ listener.”Meetings as leadership opportunity #1.Meetings as leadership opportunity #1.Creating a “civil society.”Creating a “civil society.”Expert at “helping.” (HelpingExpert at “helping.” (Helping “professional.”) “professional.”)Expert at holding productive conversations.Expert at holding productive conversations.Fanatic about clear communications.Fanatic about clear communications.Fanatic about training.Fanatic about training.Master of appreciation/acknowledgement.Master of appreciation/acknowledgement.Effective at apology.Effective at apology.Creating a culture of automatic helpfulness by all to all.Creating a culture of automatic helpfulness by all to all.Presentation excellence. Presentation excellence. Conscious master of body language.Conscious master of body language.Master of hiring. (Hiring Master of hiring. (Hiring “professional”)“professional”)Master of evaluating people.Master of evaluating people.Avid practitioner of MBWA/Managing By Wandering Around. Avid practitioner of MBWA/Managing By Wandering Around. Avid student of the process of influencing others per se. Avid student of the process of influencing others per se. Student of decision-making/devastating impact of irrational aspects thereof.Student of decision-making/devastating impact of irrational aspects thereof.Creating a no-nonsense execution culture.Creating a no-nonsense execution culture.Meticulous about employee development/100% of staff.Meticulous about employee development/100% of staff.Student of the power of “d”iversity (all flavors of difference).Student of the power of “d”iversity (all flavors of difference).Aggressive in pursuing gender balance.Aggressive in pursuing gender balance.Making team-building excellence everyone’s daily priority.Making team-building excellence everyone’s daily priority.Understanding value of matchless 1st-line management.Understanding value of matchless 1st-line management.

BFO 27:BFO 27: Aim to make EVERY internal and external Aim to make EVERY internal and external experience (PRODUCT/ SERVICE/SYSTEM/EMPLOYEE experience (PRODUCT/ SERVICE/SYSTEM/EMPLOYEE INTERACTION/CUSTOMER INTERACTION/ COMMUNITY INTERACTION/CUSTOMER INTERACTION/ COMMUNITY

INTERACTION) a … INTERACTION) a … WOW!WOW! (WOW = WOW. (WOW = WOW.

USE THE “W-WORD” PER SE! USE THE “W-WORD” PER SE! E.g., E.g., Do 4 out of your Top 5 projects score 8 or Do 4 out of your Top 5 projects score 8 or above on a 10-point“WOW Scale”?above on a 10-point“WOW Scale”? If not, get on it: If not, get on it: NOW. NOW. TODAY. TODAY. WITHIN THE HOUR.WITHIN THE HOUR.

WOW-ify!WOW-ify!WOW NowWOW Now.).)

BFO 28:BFO 28: While on the topic of … WOW: While on the topic of … WOW: White collar work is by and large ticketed to fall prey to White collar work is by and large ticketed to fall prey to artificial intelligence/eye-popping algorithms as well as artificial intelligence/eye-popping algorithms as well as globalization. Stand there and take it on the chin?globalization. Stand there and take it on the chin?NO.NO.My answer/1999 book/My answer/1999 book/The Professional Service Firm 50The Professional Service Firm 50::

CONVERT EVERY “DEPARTMENT”/ “UNIT” CONVERT EVERY “DEPARTMENT”/ “UNIT” (AND YOURSELF) INTO A FULL-FLEDGED … (AND YOURSELF) INTO A FULL-FLEDGED … “PSF”/PROFESSIONAL SERVICES FIRM … “PSF”/PROFESSIONAL SERVICES FIRM …

WHOLLY DEDICATED TO … WHOLLY DEDICATED TO … EXCELLENCEEXCELLENCE & & WOWWOW & & ADDINGADDING SKYSCRAPINGSKYSCRAPING VALUEVALUE TO THEIR/ YOUR CUSTOMERS’ TO THEIR/ YOUR CUSTOMERS’ (USUALLY INTERNAL CUSTOMERS) ACTIVITIES.(USUALLY INTERNAL CUSTOMERS) ACTIVITIES.Why not?Why not?There is no good reason not to proceed in this direction There is no good reason not to proceed in this direction within the fortnight!within the fortnight!

BFO 29:BFO 29: EVERYEVERY DAY PROVIDES A DOZEN DAY PROVIDES A DOZEN (LITERALLY) LEADERSHIP (LITERALLY) LEADERSHIP OPPORTUNITIES FOR OPPORTUNITIES FOR EVERYEVERY ONE OF US. ONE OF US. (Every = EVERY. From the most junior—(Every = EVERY. From the most junior—and and even the 3-day temp—even the 3-day temp—to the Big Dudes.)to the Big Dudes.)GRAB AT LEAST ONE.GRAB AT LEAST ONE.

BFO 30:BFO 30: Circa 2014+: You (me/all of Circa 2014+: You (me/all of us) totally misunderstand overall us) totally misunderstand overall econ context if you choose not to econ context if you choose not to

start today on … start today on … RPD/Radical RPD/Radical Personal Development.Personal Development.

BFO 31:BFO 31: CIVILITY WORKS. CIVILITY PAYS. CIVILITY WORKS. CIVILITY PAYS.

E.g.: E.g.: K = R = PK = R = P..

Kindness = Kindness = Repeat business =Repeat business =Profit.Profit.(ONE MORE TIME: “Kindness” is(ONE MORE TIME: “Kindness” is N-O-T N-O-T “Soft.”)“Soft.”)

BFO 32:BFO 32: Most of us/most organizations discount Most of us/most organizations discount … INTROVERTS. THAT IS A … … INTROVERTS. THAT IS A … 1ST ORDER 1ST ORDER STRATEGIC BLUNDER.STRATEGIC BLUNDER. (Please read Susan (Please read Susan Cain’s book Cain’s book QUIET. It was a no-bull QUIET. It was a no-bull lifechanger for me.)lifechanger for me.)

BFO 33:BFO 33: Listen (HARD) to my old D.C. boss, Listen (HARD) to my old D.C. boss, Fred Malek:Fred Malek:

““EXECUTION EXECUTION ISIS STRATEGY.” STRATEGY.” ((Kelleher/Southwest: Kelleher/Southwest: “We have a ‘strategic plan.’ “We have a ‘strategic plan.’ DOING THINGS.”DOING THINGS.”) (Welch/GE: ) (Welch/GE: “In real life, strategy is “In real life, strategy is actually very straightforward. Pick a general direction actually very straightforward. Pick a general direction … AND IMPLEMENT LIKE HELL.”… AND IMPLEMENT LIKE HELL.” ) (Charles Munger, ) (Charles Munger, Berkshire Hathaway: Berkshire Hathaway: “Costco figured out the big, “Costco figured out the big, simple things and executed with total fanaticism.”simple things and executed with total fanaticism.” ) )

(Execution: That all-important … (Execution: That all-important … “LAST 99 “LAST 99 PERCENT.”PERCENT.” ) )

BFO 34: The Works …BFO 34: The Works …

SEGEW 2014: SERVICE!-ENGAGEMENT!-GROWTH!-EXCELLENCE!-WOW!SEGEW 2014: SERVICE!-ENGAGEMENT!-GROWTH!-EXCELLENCE!-WOW!

Employees as 1st customersEmployees as 1st customers Acknowledgement & RespectAcknowledgement & Respect Commitment to Personal Growth & Training-to-Die-ForCommitment to Personal Growth & Training-to-Die-For EngagementEngagement Work Worth DoingWork Worth DoingPeerless 1st-line Leadership Cadre Committed to Employee GrowthPeerless 1st-line Leadership Cadre Committed to Employee GrowthMBWA ObsessionMBWA ObsessionSeamless Cross-functional ExcellenceSeamless Cross-functional Excellence360-degree “Social” Engagement Inside & Outside the Firm360-degree “Social” Engagement Inside & Outside the FirmCo-creation of EverythingCo-creation of EverythingA Moral Service Ethos A Moral Service Ethos (Each other/Vendors/Customers/Customers’ Customers/Communities)(Each other/Vendors/Customers/Customers’ Customers/Communities)An Ethos of Helping (“On the Bus” or “Off the Bus”)An Ethos of Helping (“On the Bus” or “Off the Bus”)Scintillating Design—Aesthetics & Functionality—Pervades EveryScintillating Design—Aesthetics & Functionality—Pervades Every Aspect of the Business (Inside & Outside)Aspect of the Business (Inside & Outside)Provision of Extraordinary Customer (& Employee) ExperiencesProvision of Extraordinary Customer (& Employee) Experiences Obsession With TGRs/Things Gone RightObsession With TGRs/Things Gone RightMatchless QualityMatchless Quality““Services Added”/Extended-Integrated-Partnered SolutionsServices Added”/Extended-Integrated-Partnered Solutions to Broad Customer Needsto Broad Customer NeedsRelentless Experimentation (“Bias for Action”/Instant Prototyping/Relentless Experimentation (“Bias for Action”/Instant Prototyping/ Celebration of “Excellent Failures”/Transparency/Celebration of “Excellent Failures”/Transparency/Pursuit of “Multipliers”)Pursuit of “Multipliers”)JOY!JOY! (In All We Do) (In All We Do)GROWTH! GROWTH! (In All We Do)(In All We Do)WOW!WOW! (In All We Do) (In All We Do)EXCELLENCE!EXCELLENCE! (In All We Do) (In All We Do)