“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

LONGLONG

Excellence.Excellence.Always.Always.

Gartner Group/Gartner Group/PPM & IT Governance SummitPPM & IT Governance Summit Tom Peters/San Diego/22 June 2011Tom Peters/San Diego/22 June 2011

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

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

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

andand “Verdana”“Verdana”

What What WorksWorks..What What Doesn’tDoesn’t..

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

seems obviousseems obvious … …

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

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

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

obvious: Buy a very Buy a very largelarge

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

Fail: Evolution, Extinction and Economics

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

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

TheTheyy found that found that nonenone ofof

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

the database, the worse thethe database, the worse theyy did did.”.”

—Financial Times—Financial Times

Dick Kovacevich: You don’t get better by being

bigger. You get worse.”

““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

“Not a single company that qualified as having made a sustained transformation ignited its leap with a big

acquisition or merger. Moreover, Moreover, comparison companies—those that failed to make a comparison companies—those that failed to make a leap or, if they did, failed to sustain it—often tried to leap or, if they did, failed to sustain it—often tried to

make themselves great with a big acquisition or make themselves great with a big acquisition or merger. They failed to grasp the simple truth that while merger. They failed to grasp the simple truth that while you can buy your way to growth, you cannot buy your you can buy your way to growth, you cannot buy your

way to greatness.”way to greatness.” —Jim Collins/—Jim Collins/TimeTime

““When asked to name just one big When asked to name just one big merger that had lived up to merger that had lived up to

expectations, Leon Cooperman, expectations, Leon Cooperman, former cochairman of Goldman Sachs’ former cochairman of Goldman Sachs’

Investment Policy Committee, Investment Policy Committee,

answered:answered: I’m sure there are success stories out

there, but at this moment I draw a

blank.” —Mark Sirower, —Mark Sirower, The Synergy TrapThe Synergy Trap

M & A success rate as measured M & A success rate as measured by adding value to theby adding value to the

acquirer:acquirer:

15%15%Source: Mark Sirower, Source: Mark Sirower, The Synergy TrapThe Synergy Trap

SpinoffsSpinoffs … …

systematically perform systematically perform better than IPOs … track better than IPOs … track record, profitsrecord, profits … … ““freed freed

from the confines of the from the confines of the parentparent … … more more

entreentreppreneurial, more reneurial, more nimblenimble.”.” ——Jerry KnightJerry Knight/ Washington Post// Washington Post/

#4 Japan#4 Japan#3 USA#3 USA

#2 China#2 China

#1 #1 GermanyGermany

MittELstandMittELstand**

**“agile creatures “agile creatures darting betweendarting between the legs of the the legs of the multinational multinational

monsters"monsters"

Source:Source: Bloomberg BusinessWeek Bloomberg BusinessWeek on the German on the German MITTELSTANDMITTELSTAND

Seymour CTSeymour CTFairfield OHFairfield OH

Frankenmuth Frankenmuth MIMI

Basement Systems Inc.

Jungle Jim’s International Market, Jungle Jim’s International Market, FairfieldFairfield, , OhioOhio:: “An “An

adventure in adventure in ‘‘shoshoppppertainmentertainment,’,’ as as Jungle Jim’s Jungle Jim’s

call it, begins in the parking lot call it, begins in the parking lot and goes on to and goes on to 1,600 1,600 cheesescheeses and, yes, and, yes, 1,400 varieties of hot 1,400 varieties of hot saucesauce —not to mention —not to mention 12,000 wines priced 12,000 wines priced from $8 to $8,000from $8 to $8,000 a bottle; all this is brought to a bottle; all this is brought to

you by you by 4,000 vendors4,000 vendors.. Customers come from Customers come from every corner of the globe.” every corner of the globe.”

Bronner’s Christmas Wonderland, Bronner’s Christmas Wonderland, FrankenmuthFrankenmuth, ,

MichiMichigganan, pop 5,000:, pop 5,000: 98,000-square-foot98,000-square-foot

“shop” features the likes of “shop” features the likes of 6,000 Christmas 6,000 Christmas ornaments, 50,000 trimsornaments, 50,000 trims, and anything else , and anything else you can name if it pertains to Christmas.you can name if it pertains to Christmas.

Source: George Whalin, Source: George Whalin, Retail SuperstarsRetail Superstars

““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

What What WorksWorks..What What Doesn’tDoesn’t..

No.“Optimization”

“We’ve got to get this right.”

“Perfectly compatible”“Synergy”

“Big”

Dick Kovacevich: You don’t get better by being

bigger. You get worse.”

““It is generally It is generally much easier to much easier to kill kill

an organizationan organization than change it than change it substantially.”substantially.”

—Kevin Kelly, —Kevin Kelly, Out of ControlOut of Control

““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

Regis McKenna*: “A lot of companies in the Valley fail.”

Robert Noyce**: “Maybe not enough fail.”

RM: “What do you mean by that?”

RN: “Whenever you fail, it means you’re trying new things.”

*McKenna was the original Silicon Valley “marketing guru”**Robert Noyce was an Intel co-founder and one of the fathers of the modern information industry.

Source: Fast Company

““Once a system grows sufficiently Once a system grows sufficiently complex and centralized, it doesn’t complex and centralized, it doesn’t

matter how badly our best and matter how badly our best and brightest foul things up. Every crisis brightest foul things up. Every crisis increases their authority, because increases their authority, because they seem to be the only ones who they seem to be the only ones who

understand the system well enough to understand the system well enough to fix it. fix it. But their fixes tend to make the But their fixes tend to make the

ssyystem even more comstem even more compplex and lex and centralized, and more vulnerable to centralized, and more vulnerable to the next national-securitthe next national-securityy sur surpprise, rise, the next natural disaster, the next the next natural disaster, the next

economic crisiseconomic crisis.” .” —Ross Douthat/—Ross Douthat/NYTimesNYTimes on the financial crisis on the financial crisis

““Don’t ever use that word Don’t ever use that word ‘synergy.’ It’s a ‘synergy.’ It’s a

hideous word. The only thing that word. The only thing that

works is natural law.works is natural law. Given enouGiven enouggh time,h time,

natural relationships will natural relationships will develodevelopp between our between our

businessesbusinesses.”.” —Barry Diller, responding to a—Barry Diller, responding to a

student question, address at the Harvard Business Schoolstudent question, address at the Harvard Business School (from Marshall Goldsmith, (from Marshall Goldsmith, What Got You Here Won’t Get You ThereWhat Got You Here Won’t Get You There

Yes.Yes.

“Satisfice” “Satisfice”“Requisite variety”“Requisite variety”

“Radical “Radical decentralization”decentralization”

“Resilience”“Resilience”“Focus”/“Niche”/“Focus”/“Niche”/

“Mittelstand”“Mittelstand”

““Rose gardeners face a choice every spring. The long-term fate of a rose garden Rose gardeners face a choice every spring. The long-term fate of a rose garden depends on this decision. If you want to have the largest and most glorious roses of the depends on this decision. If you want to have the largest and most glorious roses of the neighborhood, you will prune hard. This represents a policy of low tolerance and tight neighborhood, you will prune hard. This represents a policy of low tolerance and tight

control. You force the plant to make the maximum use of its available resources, by control. You force the plant to make the maximum use of its available resources, by

putting them into the the rose’s ‘core business.’ putting them into the the rose’s ‘core business.’ Pruning hard is a Pruning hard is a dangerous policy in an unpredictable environment. Thus, dangerous policy in an unpredictable environment. Thus, if you are in a spot where you know nature may play tricks if you are in a spot where you know nature may play tricks on you, you may opt for a policy of high tolerance. You will on you, you may opt for a policy of high tolerance. You will

never have the biggest roses, but you have a much-never have the biggest roses, but you have a much-enhanced chance of having roses every year. You will enhanced chance of having roses every year. You will

achieve a gradual renewal of the plant. In short, tolerant achieve a gradual renewal of the plant. In short, tolerant pruning achieves two ends: (1) It makes it easier to cope pruning achieves two ends: (1) It makes it easier to cope with unexpected environmental changes. (2) It leads to a with unexpected environmental changes. (2) It leads to a

continuous restructuring of the plant. The policy of continuous restructuring of the plant. The policy of tolerance admittedly wastes resources—the extra buds tolerance admittedly wastes resources—the extra buds

drain away nutrients from the main stem. But in an drain away nutrients from the main stem. But in an unpredictable environment, this policy of tolerance makes unpredictable environment, this policy of tolerance makes the rose healthier in the long run.”the rose healthier in the long run.” —Arie De Geus, —Arie De Geus, The Living CompanyThe Living Company

What What MattersMatters..What What Doesn’tDoesn’t..

““At a party given by a billionaire At a party given by a billionaire on Shelter Island, Kurt Vonnegut on Shelter Island, Kurt Vonnegut

informs his pal, Joseph Heller, informs his pal, Joseph Heller, that their host, a hedge fund that their host, a hedge fund

manager, had made more money manager, had made more money in a single day than Heller had in a single day than Heller had earned from his wildly popular earned from his wildly popular novel novel Catch-22Catch-22 over its whole over its whole

history. Heller responds …history. Heller responds …

““At a party given by a billionaire on Shelter Island, Kurt Vonnegut At a party given by a billionaire on Shelter Island, Kurt Vonnegut informs his pal, Joseph Heller … that their host, a hedge fund informs his pal, Joseph Heller … that their host, a hedge fund

manager, had made more money in a single day than Heller had manager, had made more money in a single day than Heller had earned from his wildly popular novel earned from his wildly popular novel Catch-22Catch-22 over its whole over its whole

history. Heller responds …history. Heller responds … ‘Yes, but I ‘Yes, but I have something have something

he will never he will never have …have …

Source: John Bogle, Source: John Bogle, Enough. The Measures of Money, Business, Enough. The Measures of Money, Business, and Lifeand Life (Bogle is founder of the Vanguard Mutual Fund Group) (Bogle is founder of the Vanguard Mutual Fund Group)

At a party given by a billionaire on Shelter Island, At a party given by a billionaire on Shelter Island, Kurt Vonnegut informs his pal, Joseph Heller … that Kurt Vonnegut informs his pal, Joseph Heller … that their host, a hedge fund manager, had made more their host, a hedge fund manager, had made more money in a single day than Heller had earned from his money in a single day than Heller had earned from his wildly popular novel wildly popular novel Catch-22Catch-22 over its whole history. over its whole history. Heller responds … Yes, but I have something he will Heller responds … Yes, but I have something he will never have … never have …

enough.enough. Source: John Bogle, Source: John Bogle, Enough. The Measures of Money, Business, and Enough. The Measures of Money, Business, and LifeLife (Bogle is founder of the Vanguard Mutual Fund Group) (Bogle is founder of the Vanguard Mutual Fund Group)

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

Net WorthNet Worth

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

““Managers have lost dignity over the Managers have lost dignity over the past decade in the face of wide spread past decade in the face of wide spread institutional breakdown of trust and institutional breakdown of trust and self-policing in business. To regain self-policing in business. To regain

society’s trust, we believe that society’s trust, we believe that business leaders must embrace a way business leaders must embrace a way

of looking at their role that goes of looking at their role that goes beyond their responsibility to the beyond their responsibility to the shareholders to include a civic and shareholders to include a civic and

personal commitment to their duty as personal commitment to their duty as institutional custodians. In other words, institutional custodians. In other words,

it is time that management became a it is time that management became a profession.”profession.” —Rakesh Khurana & Nitin Nohria, “It’s Time To Make —Rakesh Khurana & Nitin Nohria, “It’s Time To Make

Management a True Profession,” HBR/10.08Management a True Profession,” HBR/10.08

““It is not enough for an agency toIt is not enough for an agency to be respected for its professional be respected for its professional competence. Indeed, there isn’tcompetence. Indeed, there isn’t

much to choose between the much to choose between the competence of big agencies. competence of big agencies.

““What so often makes the difference is What so often makes the difference is the the charactercharacter of the men and women who of the men and women who

represent the agency at the top level, represent the agency at the top level, with clients and the business community.with clients and the business community.

““If they are If they are resresppectedected asas admirableadmirable ppeoeopplele, the agency gets business—, the agency gets business—

whether from present clients or whether from present clients or prospective ones.” prospective ones.” —David Ogilvy —David Ogilvy

Organizations Organizations existexist to to serveserve. .

Period.Period.

Leaders Leaders livelive to to serveserve. Period.. Period.

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 Properties” Properties”

““Breakthrough” 82*Breakthrough” 82*

People! People! CustomersCustomers

! ! Action! Action! Values! Values!

**In Search of ExcellenceIn Search of Excellence

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

““On the face of it, On the face of it, shareholder value is the shareholder value is the

dumbest idea in the world. dumbest idea in the world. Shareholder value is a Shareholder value is a

result, not a strategy. … result, not a strategy. … Your main constituenciesYour main constituencies are are yyour emour empploloyyees, ees, yyour our

customers and customers and yyour our pproductsroducts.”.” —Jack Welch, —Jack Welch, FTFT, 0313.09, page 1 , 0313.09, page 1

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

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

relationships)relationships)

““[This year’s] graduates are told [by commencement [This year’s] graduates are told [by commencement speakers] to pursue happiness and joy. But, of course, speakers] to pursue happiness and joy. But, of course,

when you read a biography of someone you admire, when you read a biography of someone you admire, it’s rarely the things that made them happy that it’s rarely the things that made them happy that compel our admiration. It’s the things they did to compel our admiration. It’s the things they did to court unhappiness—the things they did that were court unhappiness—the things they did that were

arduous and miserable, which sometimes cost them arduous and miserable, which sometimes cost them

friends and aroused hatredfriends and aroused hatred.. It’s It’s excellence, not excellence, not

hahappppiness, that we iness, that we admire mostadmire most.”.” —David Brooks,—David Brooks,

“ “It’s Not About You,” oped,It’s Not About You,” oped, New York Times New York Times, 30 May 2011, 30 May 2011

““In a way, the world is a great liar. In a way, the world is a great liar. It shows you it worships and admires It shows you it worships and admires money, but at the end of the day it money, but at the end of the day it doesn’t. It says it adores fame and doesn’t. It says it adores fame and

celebrity, but it doesn’t, not really. The celebrity, but it doesn’t, not really. The world admires, and wants to hold on to, world admires, and wants to hold on to,

and not lose, goodness. It admires virtue. and not lose, goodness. It admires virtue. At the end it gives its greatest tributes to At the end it gives its greatest tributes to

generosity, honesty, courage, mercy, generosity, honesty, courage, mercy, talents well used, talents that, brought talents well used, talents that, brought

into the world, make it better. That’s what into the world, make it better. That’s what it really admires. That’s what we talk about it really admires. That’s what we talk about

in eulogies, because that’s what’s in eulogies, because that’s what’s important. We don’t say, ‘The thing about important. We don’t say, ‘The thing about Joe was he was rich!’ We say, if we can … Joe was he was rich!’ We say, if we can …

“ … “ … We say, if we can …We say, if we can …

‘‘The thing about The thing about Joe was he took Joe was he took

good care of good care of people.’”people.’”

——Peggy Noonan, “A Life’s Lesson,” on the astounding response to the passing of Tim RussertPeggy Noonan, “A Life’s Lesson,” on the astounding response to the passing of Tim Russert ,, The Wall Street Journal, The Wall Street Journal, June 21-22, 2008June 21-22, 2008

The Memories That MatterThe Memories That Matter

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

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

#1: “Design Is #1: “Design Is Everything.”Everything.”

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

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

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

Charles Handy:Charles Handy: “One bank is currently claiming to … “One bank is currently claiming to …

‘leverage its global footprint to provide effective financial solutions for its customers by

providing a gateway to diverse markets.’”

““I assume that it is just I assume that it is just saying that it issaying that it is there to …there to …

““I assume that it is just saying that it I assume that it is just saying that it

isis there to …there to … ‘ ‘helhelpp its its customers customers

wherever thewherever theyy areare’.”’.” —Charles Handy—Charles Handy

““I make all the launch teams tell me what the I make all the launch teams tell me what the

magazine’s about inmagazine’s about in five five words or lesswords or less..

You can’t run alongside You can’t run alongside millions of consumers and millions of consumers and explain what you mean. It explain what you mean. It

forces some discipline on you.”forces some discipline on you.”

—Ann Moore, CEO, Time Inc., on new magazines—Ann Moore, CEO, Time Inc., on new magazines

"I've never seen a job done "I've never seen a job done by a team of five hundred by a team of five hundred

that couldn't be done better that couldn't be done better by a team of fifty.” by a team of fifty.” —Gordon Bell,—Gordon Bell,

VAX operating system architect at DEC/VAX operating system architect at DEC/Industry guru par excellenceIndustry guru par excellence

Computer Associates (quote approximate)Computer Associates (quote approximate)

90K in U.S.A. 90K in U.S.A. ICUsICUs on any given day; on any given day; 178178 discrete steps/day/patient in ICU. discrete steps/day/patient in ICU.

50% ICU stays result ICU stays result

in in “serious complication”

Source: Atul Gawande, “The Checklist” (Source: Atul Gawande, “The Checklist” (New YorkerNew Yorker, 1210.07), 1210.07)

**Dr. Peter Pronovost, Johns Hopkins

**Checklist/dealing with

line infections**1/3rd lines, at least one procedural error when he started checklist program**Nurses/permission-requirement to stop procedure if doc, other not following checklist (BIG DEAL)**In 1 year, ICU’s 10-day line-infection rate:

11% to … 0%

Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07)

**Docs, nurses empowered/ encouraged to make own checklists on whatever process-procedure they choose**Within weeks, average stay in

ICU down 50%Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07)

Appropriate systems’ standards:Appropriate systems’ standards:

Beauty. Beauty. Grace. Grace. Clarity. Clarity.

Simplicity.Simplicity.

““You You knowknow a a designdesign is is goodgood

whenwhen you you wantwant toto licklick it.”it.” —Steve Jobs—Steve Jobs

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

Architect Rem Koolhaas on his drive forArchitect Rem Koolhaas on his drive for

clarity-simplicity: clarity-simplicity: “Often “Often my job is to my job is to

undo things.”undo things.”Source: Source: New YorkerNew Yorker

““The art of war does not The art of war does not require complicated require complicated

maneuvers; the simplest are maneuvers; the simplest are the best and common sense is the best and common sense is fundamental. From which one fundamental. From which one

might wonder how it is might wonder how it is

generals make blunders; generals make blunders; itit is because theis because theyy tr tryy to to

be cleverbe clever.”.” —Napoleon—Napoleon

#2: What’s #2: What’s ALWAYS #1.ALWAYS #1.

XFX = XFX = #1#1**

*Cross-Functional *Cross-Functional eXcellence eXcellence

Never Never waste a waste a lunch!lunch!

The sacred The sacred 220 “ABs”.*220 “ABs”.*

*“At bats”*“At bats”

““Personal Personal relationships are the relationships are the fertile soil from which fertile soil from which all advancement, all advancement, allall

success, success, allall achievement in realachievement in real

life grow.”life grow.” —Ben Stein—Ben Stein

““They brainstormed about how They brainstormed about how to turn this [catastrophic] mis-to turn this [catastrophic] mis-

understanding around, and came understanding around, and came up with a simple plan—up with a simple plan—every daevery dayy

for the next three months she for the next three months she would have lunch or coffee with would have lunch or coffee with one of the one of the ppartnersartners. Today she is . Today she is

executive vice president for executive vice president for [Fortune 50 company].”[Fortune 50 company].”

——Betsy Myers, on and extraordinarily talented professional who had been Betsy Myers, on and extraordinarily talented professional who had been blocked from leadership positions in her firm, from blocked from leadership positions in her firm, from Take the Lead: Take the Lead:

Motivate, Inspire, and Bring Out the Best in Yourself and Everyone Around Motivate, Inspire, and Bring Out the Best in Yourself and Everyone Around YouYou

George Crile (George Crile (Charlie Wilson’s WarCharlie Wilson’s War ) on Charlie ) on Charlie Wilson:Wilson: “The way things normally work, if you’re not Jewish you “The way things normally work, if you’re not Jewish you don’t get into the Jewish caucus, but Charlie did. And if you’re not don’t get into the Jewish caucus, but Charlie did. And if you’re not

black you don’t get into the black caucus. But Charlie plays poker with black you don’t get into the black caucus. But Charlie plays poker with

the black caucus; they had a game, and he’s the only white guy in it.the black caucus; they had a game, and he’s the only white guy in it.

The House The House [of Representatives][of Representatives],, like an like anyy human institution, is moved by human institution, is moved by friendshifriendshipps, and no matter what s, and no matter what

ppeoeopple mile migght think about Wilson’s ht think about Wilson’s antics, theantics, theyy tend to like him and tend to like him and

enenjjoy his comoy his comppanany.”y.”

R.O.I.R. R.O.I.R. >>

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

RReturn eturn OOn n

IInvestment In nvestment In

RRelationshipselationships

What … What … PRECISELYPRECISELY … is … is

thisthis week’sweek’s RRelationship elationship IInvestment nvestment

PPlan?lan?

““Keep a short Keep a short enemies list. One enemies list. One

enemy can do enemy can do more damage than more damage than the good done by a the good done by a hundred friends.”hundred friends.”

——Bill Walsh, Bill Walsh, The Score Takes Care of ItselfThe Score Takes Care of Itself (Walsh was the “hall (Walsh was the “hall of fame” coach of the San Francisco 49ers football team)of fame” coach of the San Francisco 49ers football team)

““XFXXFX SocialSocial Accelerators.” Accelerators.”

1. EVERYONE’s [more or less] JOB #1: Make friends in other 1. EVERYONE’s [more or less] JOB #1: Make friends in other functions! functions! (Purposefully. Consistently. Measurably.)(Purposefully. Consistently. Measurably.)2. “Do lunch” with people in other functions!! Frequently!! 2. “Do lunch” with people in other functions!! Frequently!! (Minimum 10% to 25% for everyone? (Minimum 10% to 25% for everyone? Measured.)Measured.)3. Ask peers in other functions for references so you can become 3. Ask peers in other functions for references so you can become conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-ism.)ism.)4. Invite counterparts in other functions to your team meetings. 4. Invite counterparts in other functions to your team meetings. Religiously. Ask them to present “cool stuff” from “their world” to Religiously. Ask them to present “cool stuff” from “their world” to your group. (B-I-G deal; useful and respectful.)your group. (B-I-G deal; useful and respectful.)5.5. PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ONCE A DAYONCE A DAY … make a short call or visit or send an email of “Thanks” for some … make a short call or visit or send an email of “Thanks” for some sort of XFX gesture by your folks and some other function’s folks.)sort of XFX gesture by your folks and some other function’s folks.)6. Present counterparts in other functions awards for service to 6. Present counterparts in other functions awards for service to your group. Tiny awards at least weekly; and an your group. Tiny awards at least weekly; and an “Annual All-Star “Annual All-Star Supporters [from other groups] Banquet” modeled after superstar Supporters [from other groups] Banquet” modeled after superstar salesperson banquets.salesperson banquets.7. Discuss—A SEPARATE AGENDA ITEM—good and problematic acts 7. Discuss—A SEPARATE AGENDA ITEM—good and problematic acts of cross-functional co-operation at every Team Meeting.of cross-functional co-operation at every Team Meeting.

Present counterparts in other Present counterparts in other functions recognition/awards for functions recognition/awards for

service to your group:service to your group: Tiny Tiny awards at least weekly. An awards at least weekly. An

“Annual All-Star “Annual All-Star Supporters Supporters [from other groups][from other groups] Banquet” modeled after Banquet” modeled after

[and equivalent to[and equivalent to!!]] superstar superstar salesperson banquets.salesperson banquets.

““XFX XFX SocialSocial Accelerators.” Accelerators.”

8. When someone in another function asks for assistance, respond 8. When someone in another function asks for assistance, respond with … with … more … alacrity than you would if it were the person in the more … alacrity than you would if it were the person in the cubicle next to yours—or even more than you would for a key cubicle next to yours—or even more than you would for a key external customer. (Remember, XFX is the key to Customer external customer. (Remember, XFX is the key to Customer Retention which is in turn the key to “all good things.”)Retention which is in turn the key to “all good things.”)9.9. Do not bad mouth ... “the damned accountants,” “the bloody HR Do not bad mouth ... “the damned accountants,” “the bloody HR guy.” Ever.guy.” Ever. (Bosses: Severe penalties for this—including (Bosses: Severe penalties for this—including public public tongue-lashings.)tongue-lashings.)10. Get physical!! 10. Get physical!! “Co-location” may well be the most powerful “Co-location” may well be the most powerful “culture change lever.” “culture change lever.” Physical X-functional proximity is almost a Physical X-functional proximity is almost a … … guarantee … of remarkably improved co-operation—to aid this guarantee … of remarkably improved co-operation—to aid this one needs flexible workspaces that can be mobilized for a team in a one needs flexible workspaces that can be mobilized for a team in a flash.flash.11. Formal evaluations. 11. Formal evaluations. Everyone, starting with the receptionist, Everyone, starting with the receptionist, should have a significant XF rating component in their evaluation.should have a significant XF rating component in their evaluation. (The “XFX Performance” should be among the Top 3 items in all (The “XFX Performance” should be among the Top 3 items in all managers’ evaluations.)managers’ evaluations.)12. Demand XF experience for, especially, senior jobs. For example, 12. Demand XF experience for, especially, senior jobs. For example, the U.S. military requires all would-be generals and admirals to the U.S. military requires all would-be generals and admirals to have served a full tour in a job whose only goals were cross-have served a full tour in a job whose only goals were cross-functional achievements.functional achievements.13. XFX is … PERSONAL … as well as about organizational 13. XFX is … PERSONAL … as well as about organizational effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to personal success—in terms of organizational career, personal success—in terms of organizational career, freelancer/Brand You, or as entrepreneur. freelancer/Brand You, or as entrepreneur.

Formal evaluations. Formal evaluations. EverEveryyoneone, , starting with the starting with the

receptionist, should have a receptionist, should have a sisiggnificantnificant XFX rating XFX rating

component in their component in their evaluation. (The “XFX evaluation. (The “XFX

Performance” should be Performance” should be among the Top 3 items in among the Top 3 items in

allall managers’ evaluations.) managers’ evaluations.)

““His habit was to let the His habit was to let the locals get primary credit—locals get primary credit—unheard of! Sometimes he unheard of! Sometimes he

disappeared into the disappeared into the woodwork entirely. He had woodwork entirely. He had

the whole __PD working their the whole __PD working their butts off for him, including butts off for him, including the the [temperamental][temperamental] Chief.” Chief.” —close —close colleague of senior federal law enforcement officercolleague of senior federal law enforcement officer

fYIfYI

Women’s NeWomen’s Neggotiatinotiatingg Stren Strenggthsths

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

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

Loser:Loser: “He’s such a“He’s such a suck-up!” suck-up!”

Winner:Winner: “He’s such a“He’s such a suck-down.” suck-down.”

George Crile George Crile (Charlie Wilson’s War)(Charlie Wilson’s War) on Gust on Gust

Avarkotos’ strategy:Avarkotos’ strategy: “He had “He had become something of a become something of a

legend with these legend with these ppeoeopple who manned the le who manned the

underbellunderbellyy of the of the Agency [CIA].”Agency [CIA].”

““I got to I got to know his know his

secretaries.”secretaries.”

““I got to know his I got to know his [Icahn’s][Icahn’s] secretaries. They are always secretaries. They are always the keepers of everything.”the keepers of everything.”

—Dick Parsons, then CEO Time Warner,—Dick Parsons, then CEO Time Warner, on dealing with an Icahn threat to his company on dealing with an Icahn threat to his company

“Parsons is not a visionary. “Parsons is not a visionary. He is, instead, a master in He is, instead, a master in the art of relationship.”the art of relationship.”

—Bloomberg Businessweek (03.11)—Bloomberg Businessweek (03.11)

““Suck Suck downdown for for success!”success!”

S = ƒ(#&DR; -2L, -3L, -4L, I&E)S = ƒ(#&DR; -2L, -3L, -4L, I&E)Success is a function of: Number and depth of relationships Success is a function of: Number and depth of relationships 2, 3, and 4 levels down inside and outside the organization2, 3, and 4 levels down inside and outside the organization

S = ƒ(SD>SU)S = ƒ(SD>SU)Sucking down is more important than sucking up—the idea Sucking down is more important than sucking up—the idea is to have the [your] entire organization working for you.is to have the [your] entire organization working for you.

S = ƒ(#non-FF, #non-FL)S = ƒ(#non-FF, #non-FL)Number of friends not in my functionNumber of friends not in my function

S = ƒ(#XFL/m)S = ƒ(#XFL/m)Number of lunches with colleagues in otherNumber of lunches with colleagues in otherfunctions per monthfunctions per month

S = ƒ(#FF)S = ƒ(#FF)Number of friends in the finance organizationNumber of friends in the finance organization

75%*75%* of of effective project effective project management is management is

political mastery!political mastery!

Believe it!Believe it!

SIP:SIP: A ll A ll success success is ais aMatter of Matter of

implementationimplementation..All implementation isAll implementation isa matter of a matter of politicspolitics..

““I believe that it is more I believe that it is more important for a leader to be important for a leader to be trained in trained in pspsyychiatrchiatry than y than

ccyyberneticsbernetics. The head of a big . The head of a big company recently said to me, ‘I company recently said to me, ‘I am no longer a Chairman. I have am no longer a Chairman. I have

had to become a psychiatric had to become a psychiatric nurse.’ Today’s executive is nurse.’ Today’s executive is

under pressure unknown to the under pressure unknown to the last generation.”last generation.” —David Ogilvy—David Ogilvy

Promote into Promote into functional leadership functional leadership

positions based positions based primarily on … primarily on …

temperamenttemperament..

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

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

through thethrough the

develodeveloppmentment ofof friendshifriendshippss.”.”

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

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

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

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

““In the election in 1994, In the election in 1994, his smile was his smile was the camthe camppaiaiggnn. That smiling iconic . That smiling iconic

campaign poster—on billboards, on campaign poster—on billboards, on highways, on street lamps, at tea highways, on street lamps, at tea shops and fruit stalls. It told black shops and fruit stalls. It told black

voters that he would be their voters that he would be their champion and white voters that he champion and white voters that he would be their protector. It was the would be their protector. It was the

smile of the proverb ‘tout smile of the proverb ‘tout comprendre, c’est tout pardoner’—to comprendre, c’est tout pardoner’—to

understand is to forgive all. It was understand is to forgive all. It was political Prozac for a nervous political Prozac for a nervous

electorate.”electorate.”

From “See the Good in Others,”From “See the Good in Others,” Mandela’s Way: Mandela’s Way: Fifteen Lessons on Life, Love, and Courage, Fifteen Lessons on Life, Love, and Courage, by Richard Stengelby Richard Stengel

#3: What’s #3: What’s ALWAYS #1.ALWAYS #1.

Conrad Hilton …Conrad Hilton …

Conrad Hilton, at a gala celebrating his Conrad Hilton, at a gala celebrating his career, was called to the podium and 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.”.”

You get ’em You get ’em inin the door the door with “location, location, with “location, location,

location.” location.” You keepYou keep ’em ’em comincoming g backback with the tucked-in with the tucked-in shower curtain.shower curtain.**

*Profit rarely comes from transaction #1; *Profit rarely comes from transaction #1; it is a byproduct of transaction it is a byproduct of transaction #2, #3, #4#2, #3, #4 … …

““Execution Execution isis strategy.”strategy.”

—Fred Malek—Fred Malek

““In real life, strategyIn real life, strategy is actually very is actually very

straightforward. Pickstraightforward. Pick a general direction a general direction … … andand imimpplementlement likelike hellhell.”.” —Jack Welch—Jack Welch

““almost inhuman almost inhuman disinterestedness disinterestedness in … strategy”in … strategy” —Josiah —Josiah

Bunting on Bunting on U.S. GrantU.S. Grant (from (from Ulysses S. Ulysses S. GrantGrant))

““Costco figured out Costco figured out the the bigbig,, simplesimple things things

and and executedexecuted with with total total fanaticismfanaticism.”.”

—Charles Munger, Berkshire Hathaway

““ExecutionExecution is is thethe jobjob of the of the

businessbusiness leaderleader.”.”—Larry Bossidy—Larry Bossidy & Ram

Charan/ Execution: The Discipline of Getting Things Done

““When assessing candidates, the When assessing candidates, the first thing I looked for was energy first thing I looked for was energy

and enthusiasm for execution. and enthusiasm for execution. Does she talk about the thrill Does she talk about the thrill of of ggettinettingg thin thinggs done, the s done, the

obstacles overcome, the role obstacles overcome, the role her her ppeople eople pplayedlayed —or does she —or does she keep wandering back to strategy keep wandering back to strategy

or philosophy?”or philosophy?” —Larry Bossidy, —Larry Bossidy, ExecutionExecution

““I saw that leaders placed too much I saw that leaders placed too much emphasis on what some call high-emphasis on what some call high-level strategy, on intellectualizing level strategy, on intellectualizing

and philosophizing, and not enough and philosophizing, and not enough on implementation.on implementation. People would People would

agree on a project or initiative, and agree on a project or initiative, and

then nothing would come of it.”then nothing would come of it.” —Larry Bossidy & Ram Charan/—Larry Bossidy & Ram Charan/Execution: The Discipline of Getting Things DoneExecution: The Discipline of Getting Things Done

“Execution isExecution is aa

systematic systematic processprocess of rigorously of rigorously

discussing hows and whats, discussing hows and whats, tenaciously following through, and tenaciously following through, and

ensuring accountability.”ensuring accountability.” —Larry Bossidy & Ram Charan/ —Larry Bossidy & Ram Charan/ Execution: Execution:

The The DisciDiscipplineline of Getting Things Done of Getting Things Done

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

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

Does/will the next Does/will the next presentation you presentation you

give/review allot give/review allot moremore time to the time to the

process/details of process/details of “implementing” than to “implementing” than to

the “analysis of the “analysis of problem/opportunity”problem/opportunity”

Sports:Sports: You beat You beat yourself!yourself!

#4: What’s #4: What’s ALWAYS #1.ALWAYS #1.

““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 organizational effectiveness.)organizational effectiveness.)

[cont.][cont.]

““I wasn’t bowled over by I wasn’t bowled over by [David Boies][David Boies] intelligence … What impressed me was intelligence … What impressed me was

that when he asked a question, he waited that when he asked a question, he waited

for an answer. for an answer. He not only He not only listened … listened … he made me he made me feel like I was the only feel like I was the only

person in the roomperson in the room.”.” —Lawyer Kevin —Lawyer Kevin

_____, on his first, inadvertent meeting with renowned attorney David Boies, _____, on his first, inadvertent meeting with renowned attorney David Boies, from Marshall Goldsmith, “The One Skill That Separates,” from Marshall Goldsmith, “The One Skill That Separates,” Fast CompanyFast Company

Could It Be This Simple?Could It Be This Simple?

InIn-effective leaders … -effective leaders …

TALKTALK..

Effective leaders … Effective leaders …

LISTENLISTEN..Inspiration: Inspiration: Multipliers: How the Best Leaders Make Everyone SmarterMultipliers: How the Best Leaders Make Everyone Smarter, ,

Liz Wiseman [Some “hard” evidence that effective leaders, in terms of % of Liz Wiseman [Some “hard” evidence that effective leaders, in terms of % of elapsed meeting time, talk less than half as much as less effective leaders.] elapsed meeting time, talk less than half as much as less effective leaders.]

Is there a full-bore Is there a full-bore training course in training course in

"Listening" for "Listening" for

100100%% of of employees, CEOemployees, CEO

to temps? If not, There to temps? If not, There [[damndamn wellwell] ought to ] ought to

be.be.

"When I was in medical school, I "When I was in medical school, I spent hundreds of hours looking spent hundreds of hours looking into a microscope—a skill I never into a microscope—a skill I never needed to know or ever use. needed to know or ever use. YetYet I didn't have a sinI didn't have a singgle class that le class that tautaugght me communication or ht me communication or teamwork skills—somethinteamwork skills—somethingg I I need every daneed every dayy I walk into the I walk into the hoshosppitalital.” .” —Peter Pronovost, —Peter Pronovost, Safe Patients, Safe Patients,

Smart HospitalsSmart Hospitals  

#5: MBWA.#5: MBWA.

2255

MBWMBWAA

Managing By Wandering Around/Managing By Wandering Around/HPHP

General David Petraeus’ “White lines along the General David Petraeus’ “White lines along the road”:road”:

““Secure and serve the population.Secure and serve the population. Live among the people.Live among the people. Promote reconciliation.Promote reconciliation. Move mounted, work dismounted;Move mounted, work dismounted; situational awareness can only besituational awareness can only be achieved by operating face-to-face,achieved by operating face-to-face, not separated by ballistic glass.not separated by ballistic glass.

WalkWalk..**”” ——David Petraeus, David Petraeus, Men’s JournalMen’s Journal (06.08) (06.08)

* * “I love that last one for its simplicity.”“I love that last one for its simplicity.” —David Petraeus —David Petraeus

““The first and greatest The first and greatest imperative of command imperative of command

is to be present in is to be present in person. Those who person. Those who

impose risk must be impose risk must be seen to share it.”seen to share it.”

—John Keegan, —John Keegan, The Mask of CommandThe Mask of Command

““Tom, let me tell you the Tom, let me tell you the definition of a good lending definition of a good lending

officer. After church on Sunday, officer. After church on Sunday, on the way home with his on the way home with his

family, he takes a little detour family, he takes a little detour to drive by the factory he just to drive by the factory he just

lent money to. Doesn’t go in or lent money to. Doesn’t go in or any such thing, just drives by any such thing, just drives by

and takes a look.”and takes a look.”

““I call 60 CEOs I call 60 CEOs [in [in

the first week of the year]the first week of the year] to to wish them happy wish them happy

New Year. …”New Year. …”

—Hank Paulson, former CEO, Goldman Sachs —Hank Paulson, former CEO, Goldman Sachs (and U.S. Treasury Secretary)(and U.S. Treasury Secretary)

Dov Frohman:Dov Frohman: The “50% The “50% Rule” Rule” Dov Frohman:Dov Frohman: “Daydream!” “Daydream!”

You = Your You = Your calendarcalendar**

*The calendar *The calendar nevernever lies.lies.

Your calendar Your calendar knowsknows PreciselyPrecisely

what youwhat youreally care about.really care about.

DoDo youyou????????

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

‘To-don’t ’‘To-don’t ’

List !”List !”

Don’t > Don’t > Do*Do*

* “Don’ting” must be systematic > * “Don’ting” must be systematic > WILLPOWERWILLPOWER

““If there is any If there is any oneone ‘secret’ to effectiveness, ‘secret’ to effectiveness,

it is concentration. it is concentration. Effective executives do Effective executives do first things first … first things first … and and thetheyy do one thin do one thingg at a at a

timetime.”.” —Peter Drucker—Peter Drucker

““It’s It’s alwaalwayyss showtime.”showtime.”

—David D’Alessandro, Career Warfare

““It is necessary It is necessary for the for the

President to be President to be the nation’s No. the nation’s No.

1 actor.”1 actor.”FDRFDR

““It had been a scene that those in the room It had been a scene that those in the room would long remember. Washington had would long remember. Washington had

performed his role to perfection. It was not performed his role to perfection. It was not enough that a leader look the part; by enough that a leader look the part; by

Washington’s rules he must know how to act it Washington’s rules he must know how to act it

with self-command and precision.with self-command and precision. John John Adams would later describe Adams would later describe

Washington approvingly as one Washington approvingly as one of the ‘great actors of the of the ‘great actors of the

age’.”age’.” —David McCullough, —David McCullough, 1776, on Washington, 1776, on Washington,

when the situation was most dire, convincing the British that when the situation was most dire, convincing the British that the Americans were a force to be reckoned withthe Americans were a force to be reckoned with

““You must You must bebe the change you the change you

wish to see in the wish to see in the world.”world.”

Gandhi

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

enthusiasm.”enthusiasm.”

—Ben Zander—Ben Zander

““Nothing is Nothing is so contagious so contagious

as as enthusiasm.”enthusiasm.”

—Samuel Taylor Coleridge—Samuel Taylor Coleridge

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

Encourage Encourage exuberance. Get rid exuberance. Get rid

of sad dogs who of sad dogs who spread doom.”spread doom.” —David Ogilvy—David Ogilvy

““The leader must have The leader must have infectious optimism. … infectious optimism. …

The final test of a leader The final test of a leader is the feeling you have is the feeling you have

when you leave his when you leave his presence after a presence after a

conference. Have you a conference. Have you a feeling of uplift and feeling of uplift and

confidence?”confidence?” —Field Marshall Bernard Montgomery—Field Marshall Bernard Montgomery

Sadly, passion is not a Sadly, passion is not a word often heard in word often heard in

the elephant the elephant organizations, nor in organizations, nor in schools, where it can schools, where it can

seem disruptive.”seem disruptive.” —Charles Handy, —Charles Handy, AlchemistsAlchemists

Ronald Reagan:Ronald Reagan: “radiated “radiated an almost an almost

transcendent transcendent hahappppinessiness.”.” —Lou Cannon, Reagan —Lou Cannon, Reagan

biographerbiographer

““People want to be People want to be ppart art of somethinof somethingg larger than larger than themselvesthemselves.. They want to They want to

be part of something they’re be part of something they’re really really pproudroud of, that they’ll of, that they’ll

fifigght ht forfor,, sacrifice sacrifice forfor , , trusttrust.”.” —Howard Schultz, Starbucks (IBD/09.05)

““I never, ever thought of I never, ever thought of

myself as a businessman.myself as a businessman. I I was interested in was interested in creatincreatingg thin thinggs s

I would be I would be proud ofproud of.”.” ——Richard BransonRichard Branson

““You’ve got to You’ve got to be able to see be able to see the beauty in a the beauty in a

hamburger hamburger bun.”bun.” —Ray Kroc—Ray Kroc

““Storytelling Storytelling is the core is the core of culture.”of culture.”

—Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell

AlthouAlthouggh h ggood business ood business cases are develocases are developped throued througgh h the use of numbers, they are the use of numbers, they are

ttypypicallicallyy approved on the approved on the basis of a storybasis of a story.. Storytelling can Storytelling can

translate those dry and abstract translate those dry and abstract numbers into compelling pictures of a numbers into compelling pictures of a

leader’s goals. I saw it at the World Bank leader’s goals. I saw it at the World Bank [where Denning was a senior executive][where Denning was a senior executive] and have seen it and have seen it

in scores of other large organizations.”in scores of other large organizations.” ——Stephen Denning, Stephen Denning, The Leader’s Guide to Storytelling: The Leader’s Guide to Storytelling: Mastering the Art and Discipline of Business NarrativeMastering the Art and Discipline of Business Narrative

““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 + Strategy +

BusinessBusiness #45) #45)

““Leadership Leadership isis self-knowledge. Successful self-knowledge. Successful leaders are those who are conscious about leaders are those who are conscious about their behavior and the impact it has on the their behavior and the impact it has on the

people around them. They are willing to people around them. They are willing to examine what behaviors of their own may examine what behaviors of their own may

be getting in the way. … The toughest be getting in the way. … The toughest

person you will ever lead is yourself. person you will ever lead is yourself. We We can’t effectivelcan’t effectivelyy lead lead

others unless we can lead others unless we can lead ourselvesourselves.”.” —Betsy Myers, —Betsy Myers, Take the Lead: Take the Lead:

Motivate, Inspire, and Bring Out the Best in YourselfMotivate, Inspire, and Bring Out the Best in Yourself and Everyone Around Youand Everyone Around You

““How can a high-level How can a high-level leader like _____ be so out of leader like _____ be so out of touch with the truth about touch with the truth about himself? It’s more common himself? It’s more common

than you would imagine. than you would imagine. In fact, the higher up the ladder a leader

climbs, the less accurate his self-

assessment is likely to be. The problem is an The problem is an

acute lack of feedback acute lack of feedback [especially on people [especially on people

issues].”issues].”

—Daniel Goleman (et al.), —Daniel Goleman (et al.), The New LeadersThe New Leaders

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

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

changing himself" changing himself" - Leo Tolstoy- Leo Tolstoy

""You will never change You will never change your life until you change your life until you change something you do daily. something you do daily.

The secret of The secret of yyour our success is found in success is found in yyour our daildailyy routine routine."." -- John C. Maxwell-- John C. Maxwell

#6: I’m NOT#6: I’m NOTKidding.Kidding.

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

are what you are what you [boss] [boss] dodo!!

Meetings = #1 Meetings = #1 leadership leadership

opportunityopportunity

Meetings are Meetings are #1#1 thing thing

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

of those meetings:of those meetings: EXCELLENCE. EXCELLENCE.

ENTHUSIASM. TEMPO. ENTHUSIASM. TEMPO. WORK-OF-ARTWORK-OF-ART.. DAMN IT. DAMN IT.

Meeting:Meeting: EverEveryy meetin meetingg that that does not stir the imadoes not stir the imaggination ination

and curiosity of attendees and and curiosity of attendees and increase bondinincrease bondingg and co- and co-

oopperation and eneration and enggaaggement ement and sense of worth and and sense of worth and

motivate ramotivate rappid action and id action and enhance enthusiasm is a enhance enthusiasm is a

ppermanentlermanentlyy lost o lost opppportunitortunity.y.

Meeting:Meeting: ““TheaterTheater of of inquiry and inquiry and

persuasion and persuasion and motivation and motivation and

engagement and engagement and enhanced enhanced

teamwork”teamwork”

FYI:FYI: This is … This is … notnot … a rant about … a rant about

“conducting “conducting better meetings.”better meetings.”

#7: K = R = P#7: K = R = P

““Courtesies of a small Courtesies of a small and trivial character are and trivial character are

the ones which strike the ones which strike deepest in the grateful deepest in the grateful

and appreciating heart.”and appreciating heart.”

—Henry Clay,American Statesman (1777-1852)

"Let's not forget that small "Let's not forget that small emotions are the greatemotions are the great

captains of our lives."captains of our lives."—Van Gogh—Van Gogh

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

with creatures of logic, butwith creatures of logic, but with creatures of emotion, with creatures of emotion,

creatures bristling with creatures bristling with prejudice and motivated by prejudice and motivated by pride and vanity.”pride and vanity.” —Dale Carnegie—Dale Carnegie

““I denied myself the pleasure of contradicting him I denied myself the pleasure of contradicting him abruptly and of showing immediately some abruptly and of showing immediately some

absurdity in his proposition; and in answering I absurdity in his proposition; and in answering I began by observing that in certain cases or began by observing that in certain cases or

circumstances his opinion would be right, but that circumstances his opinion would be right, but that in the present case there ‘appeared’ or ‘seemed to in the present case there ‘appeared’ or ‘seemed to

me’ some difference, etc. me’ some difference, etc. The conversation The conversation I enI enggaagged in went more ed in went more ppleasantlleasantly;y; the the

modest wamodest wayy in which I in which I pproropposed my osed my ooppinions inions pprocured them a readier recerocured them a readier recepption tion

and less contradiction; I had less and less contradiction; I had less mortification when I was found to be inmortification when I was found to be in the wronthe wrongg, and I more easil, and I more easilyy pprevailed revailed with others to with others to ggive up their mistakes ive up their mistakes

and and jjoin with me when I haoin with me when I happppened to be ened to be in the riin the rigghtht.”.” —Benjamin Franklin—Benjamin Franklin

Press Ganey AssocPress Ganey Assoc:: 139,380139,380 former former patients from patients from 225225 hospitals: hospitals:

nonenone of THE top 15 factors of THE top 15 factors

determining determining PPatient atient SSatisfaction atisfaction referred to patient’s health referred to patient’s health outcomeoutcome..

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

EmploEmployyee Satisfactionee Satisfaction

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

“There is a misconception that supportive interactions require There is a misconception that supportive interactions require more staff or more time and are therefore more costly. more staff or more time and are therefore more costly.

Although labor costs are a substantial part of any hospital Although labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget, the interactions themselves add nothing to the

budget. budget. Kindness is Kindness is freefree.. Listening to patients or answering Listening to patients or answering

their questions costs nothing. It can be argued that negative their questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive tointeractions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very their needs or limiting their sense of control—can be very costly. … Angry, frustrated or frightened patients may be costly. … Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring farcombative, withdrawn and less cooperative—requiring far more time than it would have taken to interact with them more time than it would have taken to interact with them

initially in a positive way.”initially in a positive way.”

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

(Griffin Hospital/Derby CT; Planetree Alliance) (Griffin Hospital/Derby CT; Planetree Alliance)

K = R = K = R = PP

Kindness = Kindness = Repeat Business Repeat Business

== Profit.Profit.

"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: things in existence: a kind word and a a kind word and a

thoughtful gesture.” thoughtful gesture.” ——Ken Langone, co-founder, Home DepotKen Langone, co-founder, Home Depot

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

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

centercenterppieceiece of my work with of my work with executives who want to get executives who want to get better.”better.” —Marshall Goldsmith—Marshall Goldsmith, What Got You , What Got You

Here Won’t Get You There: How Successful People BecomeHere Won’t Get You There: How Successful People Become Even More Successful. Even More Successful.

With a new and forthcoming policy on apologies …With a new and forthcoming policy on apologies … Toro, Toro, the lawn mower folks, reduced the the lawn mower folks, reduced the average cost of settling a claim from average cost of settling a claim from $$115,000115,000 in 1991 to $ in 1991 to $35,00035,000 in 2008— in 2008—and the company hasn’t been to trial and the company hasn’t been to trial in the last in the last 1515 y yearsears! ! The VA hospital in Lexington, Massachusetts, developed an The VA hospital in Lexington, Massachusetts, developed an approach, totally uncharacteristic in healthcare, to approach, totally uncharacteristic in healthcare, to apologizing for errors—even when no patient request or apologizing for errors—even when no patient request or

claim was madeclaim was made.. In 2000, the systemic mean In 2000, the systemic mean VA hospital malpractice settlement VA hospital malpractice settlement throughout the United States was throughout the United States was $$413,000413,000; the Lexington VA hospital ; the Lexington VA hospital settlement number was $settlement number was $36,00036,000 ——and and there were far fewer per patient claims to begin with.)there were far fewer per patient claims to begin with.)

Source: John Kador, Source: John Kador, Effective ApologyEffective Apology

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

THREETHREE--MINUTEMINUTE PHONEPHONE CALLCALL WOULD HAVE AVOIDED WOULD HAVE AVOIDED

SETTING OFF THE DOWNWARD SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A SPIRAL THAT RESULTED IN A

COMPLETE RUPTURE.COMPLETE RUPTURE.**

*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 PROBLEMREAL PROBLEM.***PERCEPTION IS ALL THERE IS!PERCEPTION IS ALL THERE IS!

ComebackComeback[big, quick response][big, quick response]

>>>>PerfectionPerfection

Edward VIIEdward VIIB. FranklinB. Franklin

Or Not: gen Clinton-gen Cornwallis-

Yorktown

““Berezovsky … came under attack from the newlyBerezovsky … came under attack from the newly powerful Primakov, and was shunned by most of thepowerful Primakov, and was shunned by most of the

political elitepolitical elite. . Putin made a Putin made a ppoint of oint of attendinattendingg Berezovsk Berezovskyy’s wife’s ’s wife’s

birthdabirthdayy part party. Berezovsky repaid y. Berezovsky repaid Putin by championing his Putin by championing his

candidacy to run the F.S.B., candidacy to run the F.S.B., Russia’s secret police, formerly the Russia’s secret police, formerly the

K.G.B., and ultimately by K.G.B., and ultimately by suggesting that the Family make suggesting that the Family make

him president.him president. To sum up, the man’s qualifications To sum up, the man’s qualifications were: he did not take a bribe from a car dealership and had were: he did not take a bribe from a car dealership and had been unafraid to go to a party for an acquaintance who had been unafraid to go to a party for an acquaintance who had

fallen into disfavor.”fallen into disfavor.” —”Dead Soul,” —”Dead Soul,” Vanity FairVanity Fair, October 2008, October 2008

““If I could have chosen not to tackle the IBM culture head-If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in was toward on, I probably wouldn’t have. My bias coming in was toward

strategy, analysis and measurement. In comparison, strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of changing the attitude and behaviors of hundreds of

thousands of people is very, very hard.thousands of people is very, very hard. [Yet] I came to see in my time at IBM that culture isn’t just

one aspect of the game ——it is the gameit is the game.”.” —Lou —Lou

Gerstner,Gerstner, Who Says Elephants Can’t DanceWho Says Elephants Can’t Dance

Read this …Read this …

Influence: Influence: Science and Science and

Practice Practice ——Robert CialdiniRobert Cialdini

#8: We Are#8: We Are What We Eat What We Eat

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

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

The “Hang Out Axiom I”:The “Hang Out Axiom I”: We We are are What We What We

Eat/WeEat/We Are Are the the companycompany we keepwe keep

Measure/Manage: Portfolio “StranMeasure/Manage: Portfolio “Stranggeness”/Qualiteness”/Qualityy

StaffStaffConsultantsConsultants

VendorsVendorsOut-sourcing Partners Out-sourcing Partners (#, Quality, Diversity)(#, Quality, Diversity)

Innovation Alliance PartnersInnovation Alliance PartnersCustomersCustomers

Competitors Competitors (who we “benchmark” against)(who we “benchmark” against)

Strategic Initiatives Strategic Initiatives Product Portfolio Product Portfolio (Line extension v. Leap)(Line extension v. Leap)

IS/IT ProjectsIS/IT ProjectsHQ LocationHQ LocationLunch MatesLunch Mates

LanguageLanguageBoardBoardEtc.Etc.

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’ ” ”

CUSTOMERS:CUSTOMERS: “Future-“Future-defining customers may defining customers may account for only account for only 2%2% to to 3%3% of your total, of your total, but but

thetheyy re reppresent a resent a crucial window on the crucial window on the futurefuture.”.” —Adrian Slywotzky, Mercer Consultants—Adrian Slywotzky, Mercer Consultants

SUPPLIERS:SUPPLIERS: ““There is an There is an ominous downside to ominous downside to

stratestrateggic suic supppplier lier relationshirelationshippss.. An SSR supplier is An SSR supplier is not likely to function as any more not likely to function as any more

than a mirror to your organization. than a mirror to your organization. Fringe suppliers that offer Fringe suppliers that offer

innovative business practices need innovative business practices need not apply.”not apply.” —Wayne Burkan, —Wayne Burkan, Wide Angle Vision: Wide Angle Vision:

Beat the Competition by Focusing on Fringe Competitors, Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue EmployeesLost Customers, and Rogue Employees

““Don’t Don’t benchmark, benchmark,

futuremark!”futuremark!” Impetus: “The future is already here; it’s just

not evenly distributed” —William Gibson

““Companies have Companies have defined so much ‘best defined so much ‘best practice’ that they are practice’ that they are

now more or less now more or less identical.” identical.” —Jesper Kunde, —Jesper Kunde, Unique Now ... or NeverUnique Now ... or Never

““While everything mayWhile everything may

be better, be better, it isit is also increasingly also increasingly

the same.”the same.”—Paul Goldberger, “The Sameness of Things,” —Paul Goldberger, “The Sameness of Things,” New York TimesNew York Times

“The short road to ruin is to emulate the

methods of your adversary.” — Winston

Churchill

COMPETITORS:COMPETITORS: “The best swordsman “The best swordsman in the world doesn’t need to in the world doesn’t need to

fear the second best fear the second best swordsman in the world;swordsman in the world; no, the no, the

person for him to be afraid of is some ignorant person for him to be afraid of is some ignorant antagonist who has never had a sword in his antagonist who has never had a sword in his

hand before; he doesn’t do the thing he ought hand before; he doesn’t do the thing he ought to do, and so the expert isn’t prepared for him; to do, and so the expert isn’t prepared for him; he does the thing he ought not to do and often he does the thing he ought not to do and often it catches the expert out and ends him on the it catches the expert out and ends him on the

spot.”spot.”

—Mark Twain—Mark Twain

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

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

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

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

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

Diversity … Diversity … perper sese … is a key … … is a key …

maybemaybe thethe keykey … … to effective and to effective and

innovative innovative decision making.decision making.

““Where do good new ideas Where do good new ideas come from? That’s simple! come from? That’s simple!

From differences.From differences. Creativity Creativity comes from unlikely comes from unlikely

juxtapositionsjuxtapositions.. The bestThe best way to maximize differences way to maximize differences is to mix ages, cultures and is to mix ages, cultures and

disciplines.”disciplines.” —Nicholas Negroponte, MIT Media —Nicholas Negroponte, MIT Media LabLab

““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

Once a month on, say, a Friday, invite Once a month on, say, a Friday, invite somebody intriguing, in any field,somebody intriguing, in any field,

to have lunch with your gang. to have lunch with your gang.

Call it: Call it: “Freak “Freak Fridays”Fridays”

Vanity Fair:Vanity Fair: “What is your most marked“What is your most marked characteristic?”characteristic?”

Mike Bloomberg:Mike Bloomberg:

“Curiosity.”“Curiosity.”

Forget>“Learn”Forget>“Learn”

“The problem is never “The problem is never how to get new, how to get new,

innovative thoughts innovative thoughts

into your mind, into your mind, but how to get the old

ones out.” —Dee Hock—Dee Hock

#9: WTTMSW#9: WTTMSW

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

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

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

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

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

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

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

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

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

11/45/45

Lesson45:Lesson45: WTTMSWTTMS

WW

WhoeverWhoeverTriesTriesTheTheMostMostStuffStuffWinsWins

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

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

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

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

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

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

toto planplan——for monthsfor months.”.”

——Bloomberg by BloombergBloomberg by Bloomberg

Culture of PrototypingCulture of Prototyping

“Effective prototyping may “Effective prototyping may

be be thethe most most valuablevaluable core core competencecompetence an an

innovative organization can innovative organization can hope to have.”hope to have.” —Michael Schrage—Michael Schrage

Think about It!?Think about It!?

Innovation Innovation = = Reaction to the Reaction to the

PrototypePrototype

Source: Michael SchrageSource: Michael Schrage

““ExperimenExperiment t

fearlessly”fearlessly”Source: BusinessWeek, “Type A Organization Strategies:

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

““relentless relentless trial and trial and error”error”**

*Cornerstone of effective approach to “rebalancing” company *Cornerstone of effective approach to “rebalancing” company portfolios in the face of changing and uncertain globalportfolios in the face of changing and uncertain global economic conditionseconomic conditions ((Wall Street Journal, Wall Street Journal, 11.08.10)11.08.10)

““DemoDemo or die!” or die!”

Source: This was the approach championed by Source: This was the approach championed by NicholasNicholas NeNeggroropponteonte which vaulted his which vaulted his MITMIT MediaMedia LabLab to the forefront of IT-multimedia to the forefront of IT-multimedia

innovation. It was his successful alternative to the traditional innovation. It was his successful alternative to the traditional MIT-academic MIT-academic “publish or perish.”“publish or perish.” Negroponte’s rapid-prototyping Negroponte’s rapid-prototyping

version was emblematic of the times and the pace and the enormityversion was emblematic of the times and the pace and the enormity of the opportunity. (of the opportunity. (NYTimesNYTimes/0426.11)/0426.11)

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

““the the 1%1%

solution”*solution”*

**“Innovation grants,”“Innovation grants,” etc. etc.Source: Scott BedburySource: Scott Bedbury

““Venture” Venture” fund:fund: Gerstner/Amex, Gerstner/Amex, Dow/Marriott, Grove/Intel, Dow/Marriott, Grove/Intel,

DuPont/AI, Bedbury/ DuPont/AI, Bedbury/ Starbucks, etc.Starbucks, etc.

Read ItRead It

Richard Farson & Ralph Keyes:Richard Farson & Ralph Keyes:

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

of Innovation of Innovation

““Fail.Fail. Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

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

David Kelley/IDEO

““RewardReward excellent failures.

PunishPunish mediocre successes.”

—Phil Daniels, Sydney exec

""Barn's burnt Barn's burnt down … now I down … now I can see the can see the

moon."moon." —Masahide, Japanese poet—Masahide, Japanese poet

The Ultimate “Try The Ultimate “Try it” Strategy: it” Strategy: The case for The case for

decentralizationdecentralization

““Rose gardeners face a choice every spring. The long-term fate of a rose garden Rose gardeners face a choice every spring. The long-term fate of a rose garden depends on this decision. If you want to have the largest and most glorious roses of the depends on this decision. If you want to have the largest and most glorious roses of the neighborhood, you will prune hard. This represents a policy of low tolerance and tight neighborhood, you will prune hard. This represents a policy of low tolerance and tight

control. You force the plant to make the maximum use of its available resources, by control. You force the plant to make the maximum use of its available resources, by

putting them into the the rose’s ‘core business.’ putting them into the the rose’s ‘core business.’ Pruning hard is a Pruning hard is a dangerous policy in an unpredictable environment. Thus, dangerous policy in an unpredictable environment. Thus, if you are in a spot where you know nature may play tricks if you are in a spot where you know nature may play tricks on you, you may opt for a policy of high tolerance. You will on you, you may opt for a policy of high tolerance. You will

never have the biggest roses, but you have a much-never have the biggest roses, but you have a much-enhanced chance of having roses every year. You will enhanced chance of having roses every year. You will

achieve a gradual renewal of the plant. In short, tolerant achieve a gradual renewal of the plant. In short, tolerant pruning achieves two ends: (1) It makes it easier to cope pruning achieves two ends: (1) It makes it easier to cope with unexpected environmental changes. (2) It leads to a with unexpected environmental changes. (2) It leads to a

continuous restructuring of the plant. The policy of continuous restructuring of the plant. The policy of tolerance admittedly wastes resources—the extra buds tolerance admittedly wastes resources—the extra buds

drain away nutrients from the main stem. But in an drain away nutrients from the main stem. But in an unpredictable environment, this policy of tolerance makes unpredictable environment, this policy of tolerance makes the rose healthier in the long run.”the rose healthier in the long run.” —Arie De Geus, —Arie De Geus, The Living CompanyThe Living Company

The True Logic* of Decentralization:The True Logic* of Decentralization:

6 divisions = 6 “tries”6 divisions = 6 “tries”

6 divisions = 6 6 divisions = 6 DIFFERENTDIFFERENT leaders = 6 leaders = 6 INDEPENDENTINDEPENDENT

“tries” = Max probability of “tries” = Max probability of “win”“win”

6 divisions = 6 6 divisions = 6 veryvery DIFFERENT DIFFERENT leaders = 6 leaders = 6 veryvery INDEPENDENT INDEPENDENT

“tries” = Max probability of “tries” = Max probability of ““far outfar out”/””/”3-sigma3-sigma”” “win” “win”

*“Driver”: *“Driver”: Law of Large #sLaw of Large #s

Decentralization Decentralization vs Centralization vs Centralization

= “That’s = “That’s AllAll There Is”There Is” (from (from

childrearing 101 to the childrearing 101 to the Federalist Papers Federalist Papers to Org.2011) to Org.2011)

Innovation Enemy Innovation Enemy #1#1

I.C.D.I.C.D.Note 1:Note 1: InherentInherent//InevitableInevitable//ImmutableImmutable Centralist Drift Centralist Drift

Note 2: Jim Burke’s 1-word vocabulary: “No.”Note 2: Jim Burke’s 1-word vocabulary: “No.”

“Best practice” = Best practice” =

ZEROZERO Standard Standard DeviationDeviation

#10: What’s #10: What’s ALWAYS #1.ALWAYS #1.

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

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

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

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

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

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)

"If you want staff to "If you want staff to give great service, give great service, give great service to give great service to staff."staff." —Ari Weinzweig, Zingerman's

““I put this I put this first first …”…”

““A Nice Place to WorkA Nice Place to Work

““Some of our people spend their Some of our people spend their entire working lives in our entire working lives in our

agency. We do our damnedest to agency. We do our damnedest to make it a make it a happyhappy experience. experience. I I pput this first, believinut this first, believingg that that

susupperior service to our clients, erior service to our clients, and and pprofits for our stockholders, rofits for our stockholders,

dedeppend on itend on it.. …” …”

——David Ogilvy, on Ogilvy & Mather’s corporate cultureDavid Ogilvy, on Ogilvy & Mather’s corporate culture

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

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

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

worth worth doingdoing.”.”

——Richard BransonRichard Branson

Brand Brand = =

Talent.Talent.

Our Mission

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

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

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

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

WPP

… … no less than no less than CathedralsCathedrals

in which the full and in which the full and awesome power of the awesome power of the

Imagination and Spirit and Imagination and Spirit and native Entrepreneurial flairnative Entrepreneurial flair

of diverse individualsof diverse individuals is is unleashed in passionate unleashed in passionate pursuit of … pursuit of … ExcellenceExcellence..

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

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

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

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

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

““The leaders of Great The leaders of Great

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

it. They … it. They … revelrevel inin …… the talent of the talent of

others.”others.” —Warren Bennis & Patricia Ward —Warren Bennis & Patricia Ward

Biederman, Biederman, Organizing GeniusOrganizing Genius

PARC’s Bob Taylor:

“Connoisseu“Connoisseur r

of Talent”of Talent”

2/year 2/year = =

legacy.legacy.

Promotion DecisionsPromotion Decisions

“life and “life and death death

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

Les WexnerLes Wexner:: From From sweaters to sweaters to

people!people!

““In most companies, the Talent Review In most companies, the Talent Review Process is a farce. At GE, Jack Welch and Process is a farce. At GE, Jack Welch and his two top HR people visit each division his two top HR people visit each division for a day. They review the top 20 to 50 for a day. They review the top 20 to 50 people by name. They talk about Talent people by name. They talk about Talent

Pool strengthening issues.Pool strengthening issues. The Talent The Talent Review Process is a contact Review Process is a contact

sspport at GE; it has the ort at GE; it has the intensitintensityy and the im and the impportance ortance

of the budof the budgget et pprocess at rocess at most commost comppaniesanies.”.” —Ed Michaels,—Ed Michaels,

War for TalentWar for Talent

Evaluating people Evaluating people = #1 differentiator= #1 differentiator

Source: Jack Welch/Jeff Immelt on GE’s Source: Jack Welch/Jeff Immelt on GE’s #1#1

strategic skill (strategic skill (!!!!!!!!))

““Development can help great Development can help great

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

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

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

GoogleGoogle

What do managers What do managers dodo for a living? for a living?

Help!Help!Right?Right?

How many of us could call ourselves How many of us could call ourselves “professional helpers,”“professional helpers,” meaning that we have meaning that we have studied—like a professional mastering her musical craft—“helping”? (Not many, I’d studied—like a professional mastering her musical craft—“helping”? (Not many, I’d judge.)judge.)

Ed Schein:Ed Schein: Helping: How to Offer, Give, and Receive HelpHelping: How to Offer, Give, and Receive Help

Last chapter: 7 “principles.” E.g.:Last chapter: 7 “principles.” E.g.:

PRINCIPLE 2:PRINCIPLE 2: “Effective Help Occurs When the Helping Relationship Is“Effective Help Occurs When the Helping Relationship Is Perceived to Be Equitable.Perceived to Be Equitable.PRINCIPLE 4:PRINCIPLE 4: “Everything You Say or Do Is an Intervention that “Everything You Say or Do Is an Intervention that Determines the Future of the Relationship..Determines the Future of the Relationship..PRINCIPLE 5:PRINCIPLE 5: “Effective Helping Begins with Pure Inquiry.“Effective Helping Begins with Pure Inquiry.PRINCIPLE 6:PRINCIPLE 6: “It Is the Client Who Owns the Problem.”*“It Is the Client Who Owns the Problem.”*

(Words matter!! Read a quote from NFL player-turned lawyer-turned professional football coach, (Words matter!! Read a quote from NFL player-turned lawyer-turned professional football coach,

calling his players “my clients.” calling his players “my clients.” (*Love the idea that the employee is a “Client” !(*Love the idea that the employee is a “Client” ! ))

EmEmpploloyyee as Clientee as Client! ! ““HelHelpping” is what we [leaders] “do” for a livining” is what we [leaders] “do” for a living!g!STUDY/PRACTICE “helSTUDY/PRACTICE “helppiningg” as ” as yyou would neurosurgerou would neurosurgery!y!

(“(“Helping” Helping” isis yyour neurosurgerour neurosurgery!)y!)

[MUST] Start with these two:[MUST] Start with these two:

*Crucial Conversations*Crucial Conversations — —Kerry Patterson, JosephKerry Patterson, Joseph Grenny, Ron McMillan,Grenny, Ron McMillan, Al SwitzlerAl Switzler*Crucial Confrontations*Crucial Confrontations — —Kerry Patterson, JosephKerry Patterson, Joseph Grenny, Ron McMillan,Grenny, Ron McMillan, Al SwitzlerAl Switzler

Why Not? Why Not?

There is moreThere is more than one way to than one way to

skin a cat!*skin a cat!**Every project*Every project REQUIRESREQUIRES (if you’re smart)(if you’re smart) an an

outside look by one/some Seriously Weird Cat/soutside look by one/some Seriously Weird Cat/s——in pursuit of whacked-out options.in pursuit of whacked-out options.

14,00014,00020,00020,000

3030

14,000/14,000/eeBayBay20,000/Amazon20,000/Amazon

3030/Craigslist/Craigslist

In Any Event .. In Any Event ..

Excellence.Excellence. Always. Always.

If notIf not Excellence,Excellence, what?what?

If notIf not ExcellenceExcellence now, when?now, when?