Tom Peters’Tom Peters’

Re-ImagineRe-Imagine

EXCELLENCEEXCELLENCE!!

HR Summit and Expo 2013/07 October 2013HR Summit and Expo 2013/07 October 2013 Dubai International Convention and Exhibition CenterDubai International Convention and Exhibition Center

(slides at tompeters.com; also see excellencenow.com)(slides at tompeters.com; also see excellencenow.com)

7 Steps to Sustaining Success & Excellence7 Steps to Sustaining Success & Excellence

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

7 Steps to Sustaining Success7 Steps to Sustaining Success

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

PART 1:PART 1:People FIRSTPeople FIRST

““Business has Business has to give people to give people

enriching, enriching, rewarding lives …rewarding lives …

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

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

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

worth worth doindoing.”g.”

——Richard BransonRichard Branson

A 15-Point Human Capital Asset Development ManifestoA 15-Point Human Capital Asset Development Manifesto

1.1. Corporate social responsibility” starts at home—i.e., Corporate social responsibility” starts at home—i.e., inside the enterprise!inside the enterprise! MAXIMIZING GDD/Gross MAXIMIZING GDD/Gross Domestic Development of the workforce is the primary Domestic Development of the workforce is the primary source of mid-term and beyond growth and source of mid-term and beyond growth and profitability—and maximizes national productivity and profitability—and maximizes national productivity and wealth. wealth.

2.2. Regardless of the transient external situation, Regardless of the transient external situation, development of “human capital” is always the #1 development of “human capital” is always the #1 priority.priority. This is true in general, in particular in difficult This is true in general, in particular in difficult times which demand resilience—and uniquely true in times which demand resilience—and uniquely true in this age in which IMAGINATIVE brainwork is de facto this age in which IMAGINATIVE brainwork is de facto the only plausible survival strategy for higher wage the only plausible survival strategy for higher wage nations. (nations. (Generic “brainwork,” traditional and Generic “brainwork,” traditional and dominant “white-collar activities, is increasindominant “white-collar activities, is increasingglly by beineingg pperformed berformed byy exponentiall exponentiallyy enhanced artificial enhanced artificial intelliintelliggenceence.).)

Source: Source: A 15-Point Human Capital Asset Development Manifesto/A 15-Point Human Capital Asset Development Manifesto/ World Strategy Forum/The New Rules: World Strategy Forum/The New Rules: Reframing Capitalism/Seoul/15 June 2012Reframing Capitalism/Seoul/15 June 2012

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

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

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

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

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

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

"If you want staff to "If you want staff to give great service to give great service to customers, you must customers, you must first give great first give great service to staff."service to staff."

—Founder, Zingerman's (food service)

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

DownDownVineet Nayar/CEO/HCL TechnologiesVineet Nayar/CEO/HCL Technologies

"When I hire "When I hire someone, that's someone, that's when when I I ggo to o to

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

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

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

renovation”renovation”

““The path to a The path to a hostmanshihostmanship culture p culture paradoxically does not go through the paradoxically does not go through the guest.guest. In fact it wouldn’t be totally wrong to say that the guest has nothing to do In fact it wouldn’t be totally wrong to say that the guest has nothing to do

with it.with it. True hostmanship leaders focus on their employees. What drives exceptionalism is True hostmanship leaders focus on their employees. What drives exceptionalism is finding the right people and getting them to love their work and see it as a passion. ... Thefinding the right people and getting them to love their work and see it as a passion. ... The guest comes into the picture only when you are ready to ask, ‘guest comes into the picture only when you are ready to ask, ‘Would you prefer to stay atWould you prefer to stay at

a hotel where the staff love their work or where management has made customers itsa hotel where the staff love their work or where management has made customers its

highest priority?’”highest priority?’” ““We went throuWe went througgh the hotel and h the hotel and made amade a ... ... ‘‘consideration renovation.consideration renovation.’’ Instead of redoinInstead of redoingg bathrooms, dinin bathrooms, dining g

rooms, and rooms, and gguest rooms, we uest rooms, we ggave ave emempploloyyees new uniforms, bouees new uniforms, bougght flowers ht flowers and fruit, and chanand fruit, and changged colors.ed colors. Our focus Our focus was totallwas totallyy on the staff. on the staff. TheTheyy were the were the

ones we wanted to make haones we wanted to make happy.ppy. We wanted them We wanted them to wake up everto wake up everyy mornin morningg excited about a new da excited about a new dayy at work at work.” .”

——Jan Gunnarsson and Olle Blohm, Jan Gunnarsson and Olle Blohm, Hostmanship: Hostmanship: The Art of Making People Feel WelcomeThe Art of Making People Feel Welcome..

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

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

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

priority?’priority?’””

Brand Brand = =

Talent.Talent.

B(I) > B(I) > B(O)B(O)

Our Mission

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

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

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

WPP

““In a world where customers wake In a world where customers wake up every morning asking, ‘What’s up every morning asking, ‘What’s

new, what’s different, what’s new, what’s different, what’s amazing?’ amazing?’ success depends on a success depends on a

company’s ability to unleash company’s ability to unleash initiative, imagination and passion initiative, imagination and passion of employees at all levelsof employees at all levels—and this—and this can only happen if all those folks can only happen if all those folks are connected heart and soul to are connected heart and soul to their work [their ‘calling’], their their work [their ‘calling’], their company and their mission.”company and their mission.” —John —John

Mackey Mackey and Raj Sisoda, Conscious Capitalism: Liberating theand Raj Sisoda, Conscious Capitalism: Liberating the

Heroic Spirit of BusinessHeroic Spirit of Business

*2/3 vote by team after 90-days probation *2/3 vote by team after 90-days probation for new member to achieve fulltime for new member to achieve fulltime statusstatus*Total transparency re compensation*Total transparency re compensation**All 7 members of exec team exact same All 7 members of exec team exact same pay package including bonusespay package including bonuses*Cash plus bonuses of highest paid no *Cash plus bonuses of highest paid no more than 19X averagemore than 19X average**Exact same benefits package for all Exact same benefits package for all employees including CEO, though employees including CEO, though adjusted for seniorityadjusted for seniority*Benefits package decided by all hands *Benefits package decided by all hands vote every 3 yearsvote every 3 years

——John Mackey and Raj Sisoda, Conscious Capitalism: Liberating the John Mackey and Raj Sisoda, Conscious Capitalism: Liberating the Heroic Spirit of Business Heroic Spirit of Business (“Conscious Hiring and Retention Practices”)(“Conscious Hiring and Retention Practices”)

PAUSEPAUSE: “It: “It

isis the game.”the game.”

““If I could have chosen not to tackle the IBM culture head-If I could have chosen not to tackle the IBM culture head-on,on,

I probably wouldn’t have. My bias coming in was toward I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of changing the attitude and behaviors of hundreds of

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

one aspect of the game one aspect of the game ——IT IS THE IT IS THE GGAMEAME.”.”

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

WSJ/0910.13:WSJ/0910.13: “What matters most “What matters most to a company over time, to a company over time, strategy or culture? strategy or culture?

Dominic Barton, MD, McKinsey & Co.:Dominic Barton, MD, McKinsey & Co.:

“Culture.“Culture.””

““I told my board that if they I told my board that if they want to get the share price 50% want to get the share price 50%

in 12-18 months, I can do it in 12-18 months, I can do it without raising a sweat. Butwithout raising a sweat. But it will destroy the longterm it will destroy the longterm

prospects of the company—and prospects of the company—and they’ll have to do it without they’ll have to do it without

me.”me.” —CEO, large ($10B+) electronic components company—CEO, large ($10B+) electronic components company

““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

““LEADERSLEADERS

‘‘DODO’’ PEOPLE.”PEOPLE.”

““Tom, you Tom, you left out one left out one

thing …”thing …”

““Tom, you left out one Tom, you left out one

thing …thing … Leaders Leaders enenjjooyy

leadinleading!”g!”

““LEADERS LEADERS

‘‘DODO’’ PEOPLE. PEOPLE.

PERIOD.”PERIOD.” —Anon.—Anon.

Les WexnerLes Wexner:: From From sweaters to sweaters to

people!*people!*

*Limited Brands founder Les Wexner queried on astounding *Limited Brands founder Les Wexner queried on astounding longterm success—said, in effect, it happened because he gotlongterm success—said, in effect, it happened because he got

as excited about developing people as he had been about as excited about developing people as he had been about

predicting fashion trends in his early yearspredicting fashion trends in his early years

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

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

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

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

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

““No matter what the No matter what the situation, situation, [the great manager’s][the great manager’s] first first response is always to think response is always to think

about the individual about the individual concerned and concerned and how thinhow thinggs s

can be arrancan be arrangged to heled to helpp that that individual exindividual expperience erience successsuccess.”.” —Marcus Buckingham, —Marcus Buckingham,

The One Thing You Need to KnowThe One Thing You Need to Know

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

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

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

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

LEADERSHIPLEADERSHIP IS A SACRED IS A SACRED

TRUST.TRUST.***President, classroom teacher, CEO, shop foreman*President, classroom teacher, CEO, shop foreman

"Leadership is a "Leadership is a gift. It's given by gift. It's given by those who follow. those who follow.

You have to be You have to be worthy of it.”worthy of it.”

——General Mark Welsh, Commander, U.S. Air Forces Europe General Mark Welsh, Commander, U.S. Air Forces Europe

The Memories The Memories That That MatterMatter

The Memories That MatterThe Memories That Matter

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

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

““Unremarkable” Unremarkable” except forexcept for RESULTS: RESULTS:

Superb people Superb people developer developer

(her/his folks (her/his folks invariablyinvariably

amazed at what amazed at what they’ve accomplished!)they’ve accomplished!)

““Among the most effective leaders I have Among the most effective leaders I have encountered and worked with in half a century, encountered and worked with in half a century, some have locked themselves into their offices some have locked themselves into their offices and others were ultra-gregarious. Some were and others were ultra-gregarious. Some were

quick and impulsive, some studied the situation quick and impulsive, some studied the situation

and took forever to come to a decision. and took forever to come to a decision. The The one and only personality trait the one and only personality trait the effective ones did have in common effective ones did have in common was something they did was something they did notnot have: have:

They had little or no ‘charisma,’ and They had little or no ‘charisma,’ and little use for the term.”little use for the term.” —Peter Drucker, in —Peter Drucker, in Susan Cain, Susan Cain,

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

The Memories That MatterThe Memories That Matter

Unalloyed pleasure in being informed of the fallaciousness of yourUnalloyed pleasure in being informed of the fallaciousness of your beliefs by someone 15 years your junior and several rungs below beliefs by someone 15 years your junior and several rungs below youyou on the hierarchical ladder. on the hierarchical ladder. Selflessness. (A sterling reputation as “a guy always willing to help Selflessness. (A sterling reputation as “a guy always willing to help outout with alacrity despite personal cost.”)with alacrity despite personal cost.”)As thoughtful and respectful, or more so, toward thine “enemies” asAs thoughtful and respectful, or more so, toward thine “enemies” as toward friends and supporters.toward friends and supporters.

Always and relentlessly put at the top of your list/any Always and relentlessly put at the top of your list/any list being first and foremost list being first and foremost “of service”“of service” to your to your internal and external constituents. internal and external constituents. (Employees/Peers/(Employees/Peers/ Customers/Vendors/Community.)Customers/Vendors/Community.)Treated the term “servant leadership” as holy writ. (And Treated the term “servant leadership” as holy writ. (And “preached”“preached” “ “servant leadership” to others—new “non-managerial” hire or oldservant leadership” to others—new “non-managerial” hire or old pro, age 18 or 48.)pro, age 18 or 48.)

PromotionPromotion

2/year 2/year = =

LegacyLegacy

““The The ONEONE Question”: Question”: “In the last year [3 years, current job], “In the last year [3 years, current job],

name the … name the … threethree ppeoeopplele … whose growth you’ve … whose growth you’ve

most contributed to. Please explain where they were at the most contributed to. Please explain where they were at the beginning of the year, where they are today, and where they are beginning of the year, where they are today, and where they are heading in the next 12 months. heading in the next 12 months. Please explain … in painstakingPlease explain … in painstaking

detail … your development strategy in each case. detail … your development strategy in each case. Please tell me Please tell me your biggest development disappointment—looking back, could you your biggest development disappointment—looking back, could you or would you have done anything differently? Please tell me about or would you have done anything differently? Please tell me about your greatest development triumph—and disaster—in the last five your greatest development triumph—and disaster—in the last five

years. What are the ‘three big things’ you’ve learned about helping years. What are the ‘three big things’ you’ve learned about helping

people grow along the way?”people grow along the way?”

Promotion DecisionsPromotion Decisions

“life and “life and death death

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

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

managerial position if his managerial position if his vision focuses on people’s vision focuses on people’s weaknesses rather than rather than

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

““I can’t tell I can’t tell yyou how manou how manyy times we times we ppassed uassed upp hotshots hotshots

for for gguuyys we thous we thougght were ht were better better ppeoeopplele … and watched our … and watched our

guys do a lot better than the big guys do a lot better than the big names, not just in the classroom, but names, not just in the classroom, but on the field—and, naturally, after they on the field—and, naturally, after they graduated, too. Again and again, the graduated, too. Again and again, the blue chips faded out, and our little blue chips faded out, and our little up-and-comers clawed their way to up-and-comers clawed their way to

all-conference and All-America all-conference and All-America teams.”teams.”

—Bo Schembechler (and John Bacon), —Bo Schembechler (and John Bacon), “Recruit for Character,” “Recruit for Character,” Bo’s Lasting LessonsBo’s Lasting Lessons

EvaluationEvaluation

EVALUATING EVALUATING PEOPLE = #1 PEOPLE = #1

DIFFERENTIATORDIFFERENTIATOR

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

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

““In most companies, the Talent Review Process is a In most companies, the Talent Review Process is a farce. At GE, Jack Welch and his two top HR people farce. At GE, Jack Welch and his two top HR people

visit each division for a day. They review the top 20 to visit each division for a day. They review the top 20 to 50 people by name. They talk about Talent Pool 50 people by name. They talk about Talent Pool

strengthening issues.strengthening issues. The Talent The Talent Review Process is a Review Process is a contact scontact spport at GE;ort at GE;

it has the intensitit has the intensityy and and the imthe impportance of the ortance of the

budbudgget et pprocess at most rocess at most comcomppaniesanies.”.” —Ed Michaels, —Ed Michaels, War for TalentWar for Talent

Self-evaluationSelf-evaluation

““To develop To develop others, start with others, start with yourself.”yourself.” —Marshall Goldsmith—Marshall Goldsmith

““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)

““How can a high-level leader like _____ How can a high-level leader like _____ be so out of touch with the truth about be so out of touch with the truth about

himself? It’s more common than you himself? It’s more common than you

would imagine. 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 acute lack of The problem is an acute lack of feedback [especially on people issues].”feedback [especially on people 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 changing

himself." himself." - Leo Tolstoy- Leo Tolstoy

HiringHiring

““Development can help great Development can help great

people be even people be even BETTER—BETTER—BUT IF BUT IF I HAD A DOLLAR TO 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

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

asasppect of businessect of business

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

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

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

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

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

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

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

The Army KnowsThe Army Knows!!

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

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

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

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

same awareness?same awareness?

THE THE SERGEANTS SERGEANTS

RUN THE RUN THE ARMY. ARMY.

PERIOD.PERIOD.

““In great armies, the In great armies, the job of generals is to job of generals is to

back up their back up their sergeants.”sergeants.”

—COL Tom Wilhelm, from Robert Kaplan, —COL Tom Wilhelm, from Robert Kaplan, “The Man Who Would Be Khan,” “The Man Who Would Be Khan,” The AtlanticThe Atlantic

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

based on the based on the first-line first-line manamanagger!er!

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

““People leave People leave managers not managers not

companies.”companies.” —Dave Wheeler—Dave Wheeler

E.g.: Do you have the ...E.g.: Do you have the ... ABSOLUTEABSOLUTE BEST BEST TRAINING & TRAINING & DEVELOPMENT DEVELOPMENT PROGRAMSPROGRAMSIN THE INDUSTRYIN THE INDUSTRY ... ...

(or some subset thereof)(or some subset thereof) for first-line supervisors?for first-line supervisors?

Suggested addition to your statement of Core Suggested addition to your statement of Core

Values: Values: “We are obsessed with “We are obsessed with developing a cadre of 1st line developing a cadre of 1st line managers that is second to managers that is second to

none—we understand that this none—we understand that this cadre per se is arguably one of cadre per se is arguably one of

our top two or three most our top two or three most important ‘Strategic Assets.’”important ‘Strategic Assets.’”

53 = 5353 = 53

People are People are NOTNOT “Standardized.” “Standardized.” Their evaluations Their evaluations

should should NOTNOT be be standardized. standardized.

EVEREVER..

Standardized Evaluations?Standardized Evaluations?

Sports?Sports?The Arts?The Arts?

Music?Music?Theater?Theater?

““C-level”?C-level”?!!

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

training. In most training. In most businesses, it's a “ho businesses, it's a “ho hum” mid-level staff hum” mid-level staff

function.function.

Why is intensive-extensive Why is intensive-extensive training obvious for the training obvious for the army & navy & sports army & navy & sports

teams & performing arts teams & performing arts

groups--but groups--but not for for

the average business?the average business?

I would hazard a guess I would hazard a guess that most CEOs see IT that most CEOs see IT

investments as a investments as a “strategic necessity,” “strategic necessity,”

but see training but see training expenses as “a expenses as “a

necessary evil.” necessary evil.”

3. 3. Three-star generals and admirals (and Three-star generals and admirals (and symphony conductors and sports coaches and symphony conductors and sports coaches and police chiefs and fire chiefs) OBSESS about police chiefs and fire chiefs) OBSESS about training.training. Why is it an almost dead certainty that Why is it an almost dead certainty that in a random 30-minute interview you are in a random 30-minute interview you are unlikely to hear a CEO touch upon this topic? (unlikely to hear a CEO touch upon this topic? (I I would hazard a would hazard a gguess that most CEOs see IT uess that most CEOs see IT investments as a “strateinvestments as a “strateggic necessitic necessityy,” but see ,” but see trainintrainingg ex exppenses as “a necessarenses as “a necessaryy evil evil.”).”)

4. 4. Proposition/axiom: Proposition/axiom: The CTO/Chief TRAINING The CTO/Chief TRAINING Officer is arguably the #1 staff job in the Officer is arguably the #1 staff job in the enterprise, at least on a par with, say, the CFO enterprise, at least on a par with, say, the CFO or CIO or head of R&D.or CIO or head of R&D. (Again, external (Again, external circumstances—see immediately above—are circumstances—see immediately above—are forcing our hand.)forcing our hand.)

5. 5. The training budget takes precedence over The training budget takes precedence over the capital budget.the capital budget. PERIOD. It’s easier fun to PERIOD. It’s easier fun to get your picture taken next to a new machine. get your picture taken next to a new machine. But how do you get a photo of a new and much But how do you get a photo of a new and much improved attitude in a key distribution center? improved attitude in a key distribution center? But the odds are 25:1 that the new attitude But the odds are 25:1 that the new attitude will add more to the bottom line than will the will add more to the bottom line than will the glorious state-of-the-art machine. glorious state-of-the-art machine.

6. 6. Human capital development should Human capital development should routinely sit atop any agenda or document routinely sit atop any agenda or document associated with enterprise strategy.associated with enterprise strategy. Most any Most any initiative you undertake should formally initiative you undertake should formally address implications for and contributions to address implications for and contributions to human capital asset development. human capital asset development.

(1)(1) Training merits Training merits ““C-level” C-level” status! status!(2)(2) Top trainers should Top trainers should be be paid a king’spaid a king’s ransomransom—and be of—and be of the same caliber asthe same caliber as top marketers ortop marketers or researchers.researchers.

Container StoreContainer Store

270270/16/16

10/>10010/>100

““Training” Training” Writ LargeWrit Large

11. 11. The national education infrastructure—The national education infrastructure—from kindergarten to continuing adult from kindergarten to continuing adult education—may well be National Priority #1.education—may well be National Priority #1. Moreover, the educational infrastructure must Moreover, the educational infrastructure must be altered radically to underpin support for the be altered radically to underpin support for the creative jobs that will be more or less the sole creative jobs that will be more or less the sole basis of future employment and national basis of future employment and national growth and wealth creation.growth and wealth creation.

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

remain an artistremain an artist.”.” —Picasso—Picasso

““Human Human creativitycreativity

is the ultimate is the ultimate economic economic

resource.”resource.” —Richard Florida—Richard Florida

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

most energetic and most energetic and enthusiastic and enthusiastic and

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

university graduates must—university graduates must—mustmust,,

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

Big Data: Big Data: Re-Imagining Re-Imagining

HR????HR????

““[These HP] pioneers may not realize just [These HP] pioneers may not realize just how big a shift this practice is from a how big a shift this practice is from a cultural standpoint. cultural standpoint. The computer is The computer is doing more than obeying the usual doing more than obeying the usual

mechanical orders to retain facts and mechanical orders to retain facts and figures. It’s producing new information figures. It’s producing new information that’s so powerful, it must be handled that’s so powerful, it must be handled with a new kind of carewith a new kind of care. We’re in a new . We’re in a new world in which systems not only divine world in which systems not only divine new, important information, but must new, important information, but must carefully manage it as well.” carefully manage it as well.” —Eric Siegel,—Eric Siegel,

Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie, or Die Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie, or Die (based on a real case, an HP “Flight risk” PA model developed by HR, (based on a real case, an HP “Flight risk” PA model developed by HR,

with astronomical savings potential)with astronomical savings potential)

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

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

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

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

considering quitting. It predicts considering quitting. It predicts your plans and intentions, pyour plans and intentions, possiblossiblyy

before before yyou have even conceived ou have even conceived themthem.”.” —Eric Siegel,—Eric Siegel, Predictive Analytics: The Power to Predict Predictive Analytics: The Power to Predict

Who Will Click, Buy, Lie, or Die Who Will Click, Buy, Lie, or Die (based on(based on a real case, an HP “Flight risk” PA model developed by HR, with a real case, an HP “Flight risk” PA model developed by HR, with

astronomical savings potential)astronomical savings potential)

Reductionist Reductionist Leadership Leadership

TrainingTraining

ARE YOU A ARE YOU A “PROFESSIONAL” “PROFESSIONAL” WHEN IT COMESWHEN IT COMES TO TO PROMOTINGPROMOTING

PEOPLEPEOPLE??

Are you a Are you a “professional” “professional” when it comes when it comes to to evaluatinevaluating g

ppeoeoplplee? ?

Are you a Are you a “professional” “professional”

when it comes to when it comes to HirinHiring pg peoeopplele??

ARE YOU A ARE YOU A “PROFESSIONAL” “PROFESSIONAL”

WHEN IT COMES TO WHEN IT COMES TO DEVELOPINGDEVELOPING

PEOPLEPEOPLE??

Are you a Are you a “professional” “professional” when it comeswhen it comes

to … ? to … ?***The “real stuff” of effective organizational LEADERSHIP*The “real stuff” of effective organizational LEADERSHIP

Reductionist Leadership TrainingReductionist Leadership Training

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

A 15-PointA 15-Point Human Capital Human Capital

Asset Asset Development Development

ManifestoManifestoTom Peters/0615.12Tom Peters/0615.12

A 15-PointA 15-Point Human Capital Human Capital

Asset Development Asset Development ManifestoManifesto

World Strategy Forum/World Strategy Forum/The New Rules: Reframing CapitalismThe New Rules: Reframing Capitalism

Tom Peters/Seoul/0615.12Tom Peters/Seoul/0615.12

A 15-Point Human Capital Development A 15-Point Human Capital Development ManifestoManifesto

1. 1. “Corporate social responsibility” starts at “Corporate social responsibility” starts at home—i.e., inside the enterprise!home—i.e., inside the enterprise! MAXIMIZING MAXIMIZING GDD/Gross Domestic Development of the GDD/Gross Domestic Development of the workforce is the primary source of mid-term and workforce is the primary source of mid-term and beyond growth and profitability—and maximizes beyond growth and profitability—and maximizes national productivity and wealth. national productivity and wealth.

2. 2. Regardless of the transient external Regardless of the transient external situation, development of “human capital” is situation, development of “human capital” is always the #1 priority.always the #1 priority. This is true in general, in This is true in general, in particular in difficult times which demand particular in difficult times which demand resilience—and uniquely true in this age in resilience—and uniquely true in this age in which IMAGINATIVE brainwork is de facto the which IMAGINATIVE brainwork is de facto the only plausible survival strategy for higher wage only plausible survival strategy for higher wage nations. (nations. (Generic “brainwork,” traditional and Generic “brainwork,” traditional and dominant “white-collar activities, is increasindominant “white-collar activities, is increasingglly y bbeineingg pperformed berformed byy exponentiall exponentiallyy enhanced enhanced artificial intelliartificial intelliggenceence.).)

3. 3. Three-star generals and admirals (and Three-star generals and admirals (and symphony conductors and sports coaches and symphony conductors and sports coaches and police chiefs and fire chiefs) OBSESS about police chiefs and fire chiefs) OBSESS about training.training. Why is it an almost dead certainty that Why is it an almost dead certainty that in a random 30-minute interview you are in a random 30-minute interview you are unlikely to hear a CEO touch upon this topic? (unlikely to hear a CEO touch upon this topic? (I I would hazard a would hazard a gguess that most CEOs see IT uess that most CEOs see IT investments as a “strateinvestments as a “strateggic necessitic necessityy,” but see ,” but see trainintrainingg ex exppenses as “a necessarenses as “a necessaryy evil evil.”).”)

4. 4. Proposition/axiom: Proposition/axiom: The CTO/Chief TRAINING The CTO/Chief TRAINING Officer is arguably the #1 staff job in the Officer is arguably the #1 staff job in the enterprise, at least on a par with, say, the CFO enterprise, at least on a par with, say, the CFO or CIO or head of R&D.or CIO or head of R&D. (Again, external (Again, external circumstances—see immediately above—are circumstances—see immediately above—are forcing our hand.)forcing our hand.)

5. 5. The training budget takes precedence over The training budget takes precedence over the capital budget.the capital budget. PERIOD. It’s easier fun to PERIOD. It’s easier fun to get you picture taken next to a hew machine. get you picture taken next to a hew machine. But how do you get a photo of of a new and But how do you get a photo of of a new and much improved attitude in a key distribution much improved attitude in a key distribution center? But the odds are 25:1 that the new center? But the odds are 25:1 that the new attitude will add more to the bottom line than attitude will add more to the bottom line than will the glorious state-of-the-art machine. will the glorious state-of-the-art machine.

6. 6. Human capital development should Human capital development should routinely sit atop any agenda or document routinely sit atop any agenda or document associated with enterprise strategy.associated with enterprise strategy. Most any Most any initiative you undertake should formally initiative you undertake should formally address implications for and contributions to address implications for and contributions to human capital asset development. human capital asset development.

7. 7. Every individual on the payroll should have Every individual on the payroll should have a benchmarked professional growth strategy.a benchmarked professional growth strategy. Every leader at every level should be evaluated Every leader at every level should be evaluated in no small measure on the collective in no small measure on the collective effectiveness of individual growth strategies—effectiveness of individual growth strategies—that is, each individual’s absolute growth is of that is, each individual’s absolute growth is of direct relevance to every leader’s assessed direct relevance to every leader’s assessed performance. performance.

10.10. The practical key to all human asset The practical key to all human asset development activities is the 1st-line development activities is the 1st-line manager.manager. (“Sergeants run the Army” is an (“Sergeants run the Army” is an accurate commonplace. observation—accurate commonplace. observation—supported by development resources.) Hence supported by development resources.) Hence development of the full cadre of 1st-line development of the full cadre of 1st-line managers is an urgent—and invariably managers is an urgent—and invariably underplayed—strategic imperative. Arguably, underplayed—strategic imperative. Arguably, the collective quality and development the collective quality and development trajectory of 1st-line leaders is an trajectory of 1st-line leaders is an organization’s #1 human asset development organization’s #1 human asset development priority. (Consistent with all the above, the priority. (Consistent with all the above, the 1st-line leader’s skill at “people 1st-line leader’s skill at “people development” is her or his top priority—for development” is her or his top priority—for which she or he must be rigorously and which she or he must be rigorously and continually trained.)continually trained.)

11. 11. The national education infrastructure—The national education infrastructure—from kindergarten to continuing adult from kindergarten to continuing adult education—may well be National Priority #1.education—may well be National Priority #1. Moreover, the educational infrastructure must Moreover, the educational infrastructure must be altered radically to underpin support for the be altered radically to underpin support for the creative jobs that will be more or less the sole creative jobs that will be more or less the sole basis of future employment and national basis of future employment and national growth and wealth creation.growth and wealth creation.

13. 13. The great majority of us work in small The great majority of us work in small enterprises; hence national growth enterprises; hence national growth objectives based upon human capital objectives based upon human capital development MUST necessarily extend development MUST necessarily extend “downward” to even 1-person enterprises.“downward” to even 1-person enterprises. Collective productivity improvement through Collective productivity improvement through human capital development among small human capital development among small businesses has an unimaginably large—and businesses has an unimaginably large—and underappreciated—payoff. While many small underappreciated—payoff. While many small business appreciate the notion, they are business appreciate the notion, they are unprepared to take the steps necessary to unprepared to take the steps necessary to engage their, say, dozen employees in engage their, say, dozen employees in seeking productivity improvements.seeking productivity improvements.

15. 15. Associated with the above is a RADICAL Associated with the above is a RADICAL reorientation of leadership education and reorientation of leadership education and development—throughout the development—throughout the enterprise/education/continuing education enterprise/education/continuing education infrastructure.infrastructure. (E.g., Among other things, the (E.g., Among other things, the MBA and executive education will require MBA and executive education will require open-heart surgery—aimed at shifting focus open-heart surgery—aimed at shifting focus from finance and marketing to human from finance and marketing to human resource development. ) To deal with the resource development. ) To deal with the most likely future employment scenarios, most likely future employment scenarios, leaders will need to be masters of the liberal leaders will need to be masters of the liberal arts—said arts are, again, the determinant of arts—said arts are, again, the determinant of responding to the emerging world.responding to the emerging world.

PART 2:PART 2:Context & Context & ExcellenceExcellence

1,000,0001,000,000

GRINGRIN

GGeneticsenetics

RRoboticsobotics

IInformaticsnformatics

NNanotechnologyanotechnology

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

point from an point from an engineering engineering

perspective. ….”perspective. ….”

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

RACE RACE AGAINST AGAINST

THE THE MACHINEMACHINE

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

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

throes of a throes of a Great Restructuring. Our . Our

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

are lagging behind.”are lagging behind.”

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

“The median worker is losing the race against the machine.” —Erik Brynjolfsson and —Erik Brynjolfsson and

Andrew McAfee, The Race Against the MachineAndrew McAfee, The Race Against the Machine

“A bureaucrat is an expensive microchip.”

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

China China tootoo/Foxconn:/Foxconn:

1,000,000 1,000,000 robots in next robots in next

3 years3 yearsSource:Source: Race AGAINST the Machine, Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfeeErik Brynjolfsson and Andrew McAfee

Post-Great Recession: Post-Great Recession:

Equipment Equipment expendituresexpenditures

+26%; payrolls flat+26%; payrolls flat

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

AUTOMATE THIS: AUTOMATE THIS: HOW ALGORITHMS HOW ALGORITHMS CAME TO RULE THE CAME TO RULE THE

WORLDWORLD

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

Beethoven, picked through legalese , picked through legalese

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

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

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

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

driver.”.”

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

Legal industry/Pattern Recognition/Legal industry/Pattern Recognition/Discovery (e-discovery algorithms):Discovery (e-discovery algorithms):

500500 lawyers to … lawyers to …

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

BIG DATABIG DATA

““Analytics can yield literally hundreds of Analytics can yield literally hundreds of millions of data points—far too many for millions of data points—far too many for

human intuition to make any sense of the human intuition to make any sense of the data. So in conjunction with the ability to data. So in conjunction with the ability to

store very big data about online store very big data about online behavior, researchers have developed behavior, researchers have developed

strong tools for data mining, statistically strong tools for data mining, statistically evaluating correlations between many evaluating correlations between many types and sources of data to expose types and sources of data to expose

hidden patterns and connections. hidden patterns and connections. The The patterns predict human behavior—and patterns predict human behavior—and

even hidden human motivations.”even hidden human motivations.” —Illah Reza —Illah Reza Nourbakhsh, Nourbakhsh,

Professor of Robotics, Carnegie Mellon,Professor of Robotics, Carnegie Mellon, Robot FuturesRobot Futures

““Predictions Predictions based on based on

correlationscorrelations lie lie at the heart of at the heart of

big data.”big data.”Source:Source: Big Data: A Revolution That Will Transform How We Live, Big Data: A Revolution That Will Transform How We Live,

Work, and Think, Work, and Think, by Viktor Mayer-Schonberger and Kenneth Cukierby Viktor Mayer-Schonberger and Kenneth Cukier

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

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

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

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

considering quitting. It predicts considering quitting. It predicts your plans and intentions, pyour plans and intentions, possiblossiblyy

before before yyou have even conceived ou have even conceived themthem.”.” —Eric Siegel,—Eric Siegel, Predictive Analytics: The Power to Predict Predictive Analytics: The Power to Predict

Who Will Click, Buy, Lie, or Die Who Will Click, Buy, Lie, or Die (based on(based on a real case, an HP “Flight risk” PA model developed by HR, with a real case, an HP “Flight risk” PA model developed by HR, with

astronomical savings potential)astronomical savings potential)

PowerPower!!

““Flash When I work with experimental digital gadgets, I am always reminded of Flash When I work with experimental digital gadgets, I am always reminded of how small changes in the details of a digital design can have profound unforeseen how small changes in the details of a digital design can have profound unforeseen

effects on the experiences of the people who are playing with it. The slightest effects on the experiences of the people who are playing with it. The slightest change in something as seemingly trivial as the ease of use of a button can change in something as seemingly trivial as the ease of use of a button can

sometimes alter behavior patterns.sometimes alter behavior patterns. For instance, For instance, Stanford University researcher Stanford University researcher

Jeremy Bailinson has Jeremy Bailinson has demonstrated that changing the demonstrated that changing the

height of one’s avatars in height of one’s avatars in immersive virtual reality immersive virtual reality

transforms self-esteem and transforms self-esteem and social self-perception.social self-perception. Technologies are Technologies are

extensions of ourselves, and, like the avatars in Jeremy’s lab, our identities extensions of ourselves, and, like the avatars in Jeremy’s lab, our identities can be shifted by the quirks of gadgets. It is impossible to work with information can be shifted by the quirks of gadgets. It is impossible to work with information

technology without also engaging in social engineering.”technology without also engaging in social engineering.” —Jaron Lanier,—Jaron Lanier, You Are Not a GadgetYou Are Not a Gadget

ExcellenceExcellence!!

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

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

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

““Breakthrough” 82*Breakthrough” 82*

People! People! Customers! Customers!

Action! Action! ValuesValues! !

**In Search of ExcellenceIn Search of Excellence

““Why in the Why in the World did youWorld did you

go to go to SiberiaSiberia?”?”

EnterpriseEnterprise* (*at its best):* (*at its best): An An emotionalemotional, , vitalvital, , innovativeinnovative, , jojoyyfulful, , creativecreative, , entreentreppreneurialreneurial endeavor that elicits endeavor that elicits maximum maximum

concerted humanconcerted human potential in thepotential in the wholehearted pursuit of wholehearted pursuit of EXCELLENCE inEXCELLENCE in serviceservice of others of others.**

**Employees, Customers, Suppliers, Communities, Owners, Temporary partners**Employees, Customers, Suppliers, Communities, Owners, Temporary partners

““the joy* the joy* of work”of work”

——John Mackey and Raj Sisoda, Conscious Capitalism: Liberating the Heroic Spirit of BusinessJohn Mackey and Raj Sisoda, Conscious Capitalism: Liberating the Heroic Spirit of Business

*See also,*See also, Joy Inc.: How We Built a Workplace People LoveJoy Inc.: How We Built a Workplace People Love ——Richard Sheridan (Menlo Innovations) Richard Sheridan (Menlo Innovations)

Excellence:Excellence:

NOTNOT an an “Aspiration“Aspiration

””

EXCELLENCE is EXCELLENCE is notnot an "aspiration.”an "aspiration.”

EXCELLENCE is … EXCELLENCE is … THE THE NEXTNEXT FIVE FIVE

MINUTESMINUTES..

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

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

BLDBLD

EXCELLENCE is EXCELLENCE is notnot an institutional an institutional

choice.choice.

EXCELLENCE is …EXCELLENCE is … A A PERSONALPERSONAL

CHOICE. CHOICE.

Twitter/BLD/Biggest Life Decision:Twitter/BLD/Biggest Life Decision: You You can take any damned can take any damned attitude you choose attitude you choose to work today! It's to work today! It's your your BLDBLD/Biggest /Biggest

Life Decision!Life Decision!

PART 3:PART 3:LeadershipLeadership

CONRAD HILTON, at a gala celebrating CONRAD HILTON, at a gala celebrating his career, was called to the podium his career, was called to the podium

and asked,and 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 the door with “location, door with “location,

location, location”—and location, location”—and a terrific architect. a terrific architect. You You keep ’em keep ’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

Sports:Sports: YOU BEAT YOU BEAT YOURSELF!YOURSELF!

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

review allot review allot moremore timetime to the process/ to the process/

details/politics of details/politics of “implementing” than“implementing” than

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

““EXECUTIONEXECUTION IS IS THETHE JOBJOB OF OF

THE BUSINESS THE BUSINESS LEADERLEADER.”.”——Larry BossidyLarry Bossidy & Ram

Charan/ Execution: The Discipline of Getting Things Done

MBWA25MBWA25

MManaginganaging

BBy y

WWanderingandering

AAroundround

MBWAMBWA

2255

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

stores— stores— at least at least 2525

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

places: Home Depot, Whole Foods, Crate places: Home Depot, Whole Foods, Crate & Barrel. I try to be& Barrel. I try to be

a sponge to pick up as much a sponge to pick up as much as I can.”as I can.” —Howard Schultz—Howard Schultz

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

““Most managers spend a great deal of time thinking about what they plan to do, but Most managers spend a great deal of time thinking about what they plan to do, but relatively little time thinking about what they plan not to do. As a result, they become so relatively little time thinking about what they plan not to do. As a result, they become so

caught up … in fighting the fires of the moment that they cannot really attend to the long-caught up … in fighting the fires of the moment that they cannot really attend to the long-term threats and risks facing the organization. So the first soft skill of leadership the hard term threats and risks facing the organization. So the first soft skill of leadership the hard way is to cultivate the perspective of Marcus Aurelius: avoid busyness, free up your time, way is to cultivate the perspective of Marcus Aurelius: avoid busyness, free up your time,

stay focused on what really matters.stay focused on what really matters. Let me Let me pput it bluntlut it bluntlyy: ever: everyy leader should routinelleader should routinelyy kee keepp a substantial a substantial pportion of his or her timeortion of his or her time——I would saI would sayy as as

much asmuch as 5050 ppercentercent——unscheduledunscheduled..

… Only when you have substantial ‘slop’ in your schedule—unscheduled time—will you have … Only when you have substantial ‘slop’ in your schedule—unscheduled time—will you have the space to reflect on what you are doing, learn from experience, and recover from your the space to reflect on what you are doing, learn from experience, and recover from your

inevitable mistakes. Leaders without such free time end up tackling issues only when there inevitable mistakes. Leaders without such free time end up tackling issues only when there is an immediate or visible problem. Managers’ typical response to my argument about free is an immediate or visible problem. Managers’ typical response to my argument about free

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

enormous effort on the enormous effort on the ppart of the leader to keeart of the leader to keepp free free time for the trultime for the trulyy im impportant thinortant thinggss.”.” —Dov Frohman (& Robert —Dov Frohman (& Robert HowardHoward), Leadership The Hard Way: Why Leadership Can’t Be Taught—And How You Can ), Leadership The Hard Way: Why Leadership Can’t Be Taught—And How You Can

Learn It AnywayLearn It Anyway (Chapter 5, “The Soft Skills Of Hard Leadership”)(Chapter 5, “The Soft Skills Of Hard Leadership”)

You = Your You = Your calendarcalendar**

*The calendar *The calendar NEVERNEVER lies.lies.

Don’t > Don’t > Do*Do*

* “Don’t-ing” must be systematic * “Don’t-ing” must be systematic > WILLPOWER> WILLPOWER

““The The ONEONE THINGTHING you need to know you need to know about sustained about sustained

individual success: individual success: Discover what you Discover what you

don’t like doing and don’t like doing and

STOPSTOP doing it.”doing it.”

—Marcus Buckingham, The One Thing You Need to Know

ONEONE at at a Timea Time

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

concentration. Effective concentration. Effective executives do first things executives do first things

first … first … and theand theyy do one thindo one thingg at a timeat a time.”.” —Peter —Peter

DruckerDrucker

MBWA 4MBWA 4MBWA 8 MBWA 8 MBWA 12MBWA 12

““The The 44 most most

important important wordswords in any in any

organization are …organization are …

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

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

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

MBWA 8: MBWA 8: Change the World With EIGHT WordsChange the World With EIGHT Words

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

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

MBWA 12: MBWA 12: Change the WorldChange the World

With TWELVE Words With TWELVE Words

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

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

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

***What [new thing] have you learned [in the last 24 hours]? ***What [new thing] have you learned [in the last 24 hours]? ********************* * ********************* *

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

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

[Count ’em!!] [Practice makes [Practice makes

better!] [better!] [This is a This is a STRATEGIC

skill!skill!]]

Acknowledgement.Acknowledgement.

““The deepest principal The deepest principal in human nature is the in human nature is the

cravingcraving* to be * to be appreciated.”appreciated.”

—William James—William James

**“Craving,” not “wish” or “desire” or “Craving,” not “wish” or “desire” or “longing”/Dale Carnegie, “longing”/Dale Carnegie, How to WinHow to Win

Friends and Influence People Friends and Influence People (“The BIG(“The BIG Secret of Dealing With People”) Secret of Dealing With People”)

““The deepest urgeThe deepest urge in human nature in human nature

is the desire to be is the desire to be important.”important.” —John Dewey—John Dewey

(In Dale Carnegie, (In Dale Carnegie, How to Win Friends and Influence People How to Win Friends and Influence People (“The BIG Secret of Dealing With People”)(“The BIG Secret of Dealing With People”)

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

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

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

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

rarely make rarely make significant significant

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

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

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

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

Meeting PowerMeeting Power!!

Complain allComplain all you want, but you want, but

meetinmeetinggss are what you are what you

[boss] [boss] dodo!!

Meetings = Meetings = #1#1 leadership leadership

opportunityopportunity

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.

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

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

#1#1 CEO CEO

FailingFailing

““If I had to pick If I had to pick one failing of CEOs, one failing of CEOs, it’s that they don’t it’s that they don’t read enough.”read enough.” —Co-founder of —Co-founder of

one of the largest investment services firms in the USA/worldone of the largest investment services firms in the USA/world

Addiction By Design: Machine Gambling in Las Vegas Addiction By Design: Machine Gambling in Las Vegas Anti-fragile: Things That Gain From DisorderAnti-fragile: Things That Gain From DisorderAutomate This: How Algorithms Came to Rule Our WorldAutomate This: How Algorithms Came to Rule Our WorldBig Data: A Revolution That Will Transform How We Live, Work, and ThinkBig Data: A Revolution That Will Transform How We Live, Work, and ThinkConscious Capitalism: Liberating the Heroic Spirit of BusinessConscious Capitalism: Liberating the Heroic Spirit of BusinessCreating Innovators: The Making of Young People Who Will Change the WorldCreating Innovators: The Making of Young People Who Will Change the WorldCreation: How Science Is Reinventing Life ItselfCreation: How Science Is Reinventing Life ItselfCyber War: The Next Threat to National Security and What to Do About ItCyber War: The Next Threat to National Security and What to Do About ItEmployees First, Customers SecondEmployees First, Customers SecondEverything Bad Is Good For You: How Today’s Popular Culture Is Actually Making Us SmarterEverything Bad Is Good For You: How Today’s Popular Culture Is Actually Making Us SmarterExtra Lives: Why Video Games MatterExtra Lives: Why Video Games MatterFab: The Coming Revolution on Your Desktop—Fro Personal Computers to Personal FabricationFab: The Coming Revolution on Your Desktop—Fro Personal Computers to Personal FabricationFast Future: How the Millennial Generation Is Shaping the WorldFast Future: How the Millennial Generation Is Shaping the WorldThe Filter Bubble: What the Internet Is Hiding From YouThe Filter Bubble: What the Internet Is Hiding From YouFooled By Randomness: The Hidden Role of Chance in Life and in the MarketsFooled By Randomness: The Hidden Role of Chance in Life and in the MarketsFor the Win: How Game Thinking Can Revolutionize Your BusinessFor the Win: How Game Thinking Can Revolutionize Your BusinessThe Future Arrived YesterdayThe Future Arrived YesterdayThe Gamification Revolution: How Leaders Leverage Game Mechanics to Crush the CompetitionThe Gamification Revolution: How Leaders Leverage Game Mechanics to Crush the CompetitionHow to Create: The Secret of Human Thought RevealedHow to Create: The Secret of Human Thought RevealedKnowledge and Power: ?The Information Theory of Capitalism and How It Is Revolutionizing Our WorldKnowledge and Power: ?The Information Theory of Capitalism and How It Is Revolutionizing Our WorldThe Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful BusinessesThe Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful BusinessesLords of StrategyLords of StrategyLoyalty 3.0: ?How Big Data and Gamification Are Revolutionizing Customer and Employee EngagementLoyalty 3.0: ?How Big Data and Gamification Are Revolutionizing Customer and Employee EngagementMakers: The New Industrial RevolutionMakers: The New Industrial RevolutionModels Behaving Badly: Why Confusing Illusion with Reality Can Lead to Disaster on Wall Street and in Life Models Behaving Badly: Why Confusing Illusion with Reality Can Lead to Disaster on Wall Street and in Life The Myth of American Decline and the Growth of a New EconomyThe Myth of American Decline and the Growth of a New EconomyNanotechnology for DummiesNanotechnology for DummiesOpen Services Innovation: Rethinking Your Business to Grow and Compete in a New EraOpen Services Innovation: Rethinking Your Business to Grow and Compete in a New EraThe Org: The Underlying Logic of the OfficeThe Org: The Underlying Logic of the OfficeThe Power of Co-Creation: Build It With Them to Boost Growth, Productivity and ProfitsThe Power of Co-Creation: Build It With Them to Boost Growth, Productivity and ProfitsPredictive Analytics: The Power to Predict Who Will Click, Buy, Lie or DiePredictive Analytics: The Power to Predict Who Will Click, Buy, Lie or DiePresent Shock: When Everything Happens NowPresent Shock: When Everything Happens NowQuiet: The Power of Introverts in a World That Can’t Stop TalkingQuiet: The Power of Introverts in a World That Can’t Stop TalkingRace Against The Machine: How the Digital Revolution Is Accelerating Innovation, Driving Productivity, Race Against The Machine: How the Digital Revolution Is Accelerating Innovation, Driving Productivity, and Irreversibly Transforming Employment and the Economy and Irreversibly Transforming Employment and the Economy Reality Is Broken: Why Games Make Us Better and How They Can Change the WorldReality Is Broken: Why Games Make Us Better and How They Can Change the WorldRewire: Digital Cosmopolitans in the Age of ConnectionRewire: Digital Cosmopolitans in the Age of ConnectionRobot FuturesRobot FuturesThe Rise of the Creative ClassThe Rise of the Creative ClassThe Shareholder Value Myth: How Putting Shareholders First Harms Investors, Corporations and the PublicThe Shareholder Value Myth: How Putting Shareholders First Harms Investors, Corporations and the PublicThe Signal and the Noise: Why So Many Predictions Fail—But Some Don’tThe Signal and the Noise: Why So Many Predictions Fail—But Some Don’tThe Singularity Is Near: When Humans Transcend BiologyThe Singularity Is Near: When Humans Transcend BiologySocial Business By Design: Transformative Social Media Strategies for the Connected CompanySocial Business By Design: Transformative Social Media Strategies for the Connected CompanyThe Startup of You: Adapt to the Future, Invest in Yourself and Transform Your CareerThe Startup of You: Adapt to the Future, Invest in Yourself and Transform Your CareerTaming the Big Data Tidal Wave: Finding Opportunities in Huge Data Streams With Advanced AnalyticsTaming the Big Data Tidal Wave: Finding Opportunities in Huge Data Streams With Advanced AnalyticsThinking, Fast and SlowThinking, Fast and SlowTo Save Everything, Click Here: The Folly of Technological SolutionismTo Save Everything, Click Here: The Folly of Technological SolutionismTubes: A journey to the Center of the InternetTubes: A journey to the Center of the InternetWait: The Art and Science of DelayWhat You Can Change … and What You Can’tWait: The Art and Science of DelayWhat You Can Change … and What You Can’tWired For War: The Robotics Revolution and Conflict in the Twenty-first CenturyWired For War: The Robotics Revolution and Conflict in the Twenty-first CenturyYou Are Not a GadgetYou Are Not a Gadget

Questionable Questionable JudgmentJudgment

SkillsSkills

Thinking, Fast and SlowThinking, Fast and Slow

“Why are experts inferior to algorithms? One reason is that “Why are experts inferior to algorithms? One reason is that experts try to be clever, think outside the box … Thisexperts try to be clever, think outside the box … This may work in the odd case, but more often than not it may work in the odd case, but more often than not it

reduces validity. …” reduces validity. …”

“The important conclusion from this research is that“The important conclusion from this research is that an algorithm that is constructed on the back of an an algorithm that is constructed on the back of an envelope is often good enough to compete with an envelope is often good enough to compete with an

optimally weighted formula—and certainly good enoughoptimally weighted formula—and certainly good enough to outdo expert judgment.” to outdo expert judgment.”

“It is wrong to blame anyone for failing to forecast “It is wrong to blame anyone for failing to forecast accurately in an unpredictable world. However, it seems fair accurately in an unpredictable world. However, it seems fair

to to blame professionals for believing they can succeed at an blame professionals for believing they can succeed at an

impossible task.”impossible task.”

Source: Daniel Kahneman, Source: Daniel Kahneman, Thinking, Fast and SlowThinking, Fast and Slow (Chapter: “intuitions Vs. Formulas”)(Chapter: “intuitions Vs. Formulas”)

Clinical versus Statistical PredictionClinical versus Statistical Prediction

“There is now [1996] a meta-“There is now [1996] a meta-analysis of studies of the analysis of studies of the

comparative efficacy of clinical comparative efficacy of clinical judgment and actuarial judgment and actuarial

prediction methods. … Of 136 prediction methods. … Of 136 research studies from a wide research studies from a wide variety of predictive domains, variety of predictive domains, not more than 5 not more than 5 ppercent show ercent show

the clinician’s the clinician’s ppredictive redictive pprocedure to be more accurate rocedure to be more accurate

than a statistical onethan a statistical one.”.”

Source: Paul Meehl, Clinical versus Statistical Prediction (1954)Source: Paul Meehl, Clinical versus Statistical Prediction (1954)

11 Mouth, Mouth,

22 Ears Ears

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

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

18 …18 …

18 … 18 … secondsseconds!!

[An [An obsessionobsession with] Listening is ... the ultimate mark with] Listening is ... the ultimate mark

of of RespectRespect..

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

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

[cont.][cont.]

““I always writeI always write ‘LISTEN’‘LISTEN’ on on the back of my hand the back of my hand before a meeting.”before a meeting.”

Source: Tweet viewed @tom_petersSource: Tweet viewed @tom_peters

10 Essential Selling Principles Most Salespeople Get 10 Essential Selling Principles Most Salespeople Get Wrong Wrong

1. Assuming the problem that the prospect communicates 1. Assuming the problem that the prospect communicates is the real problem. is the real problem.

2. Thinking that your sales “presentation” will seal the 2. Thinking that your sales “presentation” will seal the deal.deal.

3. 3. Talking too much.Talking too much.4. Believing that you can sell anybody anything. 4. Believing that you can sell anybody anything. 5. Overeducating the prospect when you should be 5. Overeducating the prospect when you should be

selling. selling. 6. Failing to remember that salespeople are decision-6. Failing to remember that salespeople are decision-

makers, too.makers, too.7. Reading minds. 7. Reading minds. 8. Working as an “unpaid consultant” to seal the deal.8. Working as an “unpaid consultant” to seal the deal.9. Being your own worst enemy.9. Being your own worst enemy.10. Keeping your fingers crossed that a prospect doesn’t 10. Keeping your fingers crossed that a prospect doesn’t

notice a problem. notice a problem.

Source: Source: ForbesForbes/0503.13/0503.13

*8 of 10 sales *8 of 10 sales presentations failpresentations fail

*50% failed sales *50% failed sales presentations … presentations … talking talking “at” before listening!“at” before listening!

—Susan Scott, “Let Silence Do the Heavy Listening,” chapter title, —Susan Scott, “Let Silence Do the Heavy Listening,” chapter title, Fierce Conversations: Achieving Success at Work and in Life,Fierce Conversations: Achieving Success at Work and in Life,One Conversation at a TimeOne Conversation at a Time

Suggested addition to your statement of Core Suggested addition to your statement of Core

Values: Values: “We are Effective “We are Effective Listeners—we treat Listening Listeners—we treat Listening

EXCELLENCEEXCELLENCE as the as the Centerpiece of our Centerpiece of our

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

and Growth.”and Growth.”

*Listening is of the*Listening is of the

utmost … utmost … STRATEGIC importance! importance!

*Listening is a proper … *Listening is a proper …

CORE VALUE ! ! *Listening is … *Listening is … TRAINABLE !!

*Listening is a … *Listening is a …

PROFESSION !!

Helping:Helping:Not For SissiesNot For Sissies

Are you a full-fledged “professional” when it

comes to helping?

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!)

K = R = K = R = PP

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

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

appreciating heart.”appreciating heart.” —Henry Clay

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

NONENONE of THE top 15 of THE top 15

factors determining factors determining PPatient atient

SSatisfaction referred to patient’s health atisfaction referred to patient’s health outcomeoutcome..

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

EmploEmployyee Satisfactionee Satisfaction

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

“There is a misconception that supportive interactions 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; Plantree Alliance) (Griffin Hospital/Derby CT; Plantree Alliance)

KKindness = indness =

RRepeat business epeat business

= = PProfit.rofit.

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

Kindness:Kindness:

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

Responsiveness/Responsiveness/Apology/ Apology/

““I’m sorry!”I’m sorry!”

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

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

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

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

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

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

THREETHREE--MINUTEMINUTE PHONEPHONE CALLCALL WOULD WOULD

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

RUPTURE.RUPTURE.**

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

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

PROBLEM. THEPROBLEM. THE

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

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

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

>>>>PerfectionPerfection

Acquire vs. maintain:Acquire vs. maintain:

5X5X***Hence: Service*Hence: Service >>>> SalesSales (!!)(!!)

““We”We”

Observed closely: The use ofObserved closely: The use of

“I”“I” oror

“we”“we” during during

aa job interview.job interview.

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

““I am I am hundreds of hundreds of times better heretimes better here [than[than

in my prior hospital assignment]in my prior hospital assignment] because of because of the support system. the support system. It’s like It’s like

yyou were workinou were workingg in an in an ororgganism; anism; yyou are not a ou are not a

sinsinggle cell when le cell when yyou are out ou are out there there ppracticinracticingg.’”.’” —quote from Dr. Nina Schwenk, —quote from Dr. Nina Schwenk,

in Chapter 3, “Practicing Team Medicine,” from Leonard Berry & Kent Seltman, in Chapter 3, “Practicing Team Medicine,” from Leonard Berry & Kent Seltman, from from Management Lessons From Mayo ClinicManagement Lessons From Mayo Clinic

"The personnel committees on all "The personnel committees on all three campuses have become three campuses have become

aggressive in addressing the issue aggressive in addressing the issue of physicians who are not living of physicians who are not living

the Mayo value of exhibiting the Mayo value of exhibiting respectful, collegial behavior to all respectful, collegial behavior to all team members. team members. Some Some pphhyysicians sicians

have been sushave been susppended without ended without ppaayy or terminatedor terminated.”.” —Leonard Barry & Kent Seltman, —Leonard Barry & Kent Seltman,

Management Lessons from Mayo ClinicManagement Lessons from Mayo Clinic

"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. Yet I didn't have a single class that taught me communication or teamwork skills—something I need every day I walk into the

hospital.” —Peter Pronovost, —Peter Pronovost, Safe Patients, Smart HospitalsSafe Patients, Smart Hospitals

 

XFX =XFX =

#1#1

XFX = XFX = #1#1**

*Cross-Functional *Cross-Functional eXcellence eXcellence

NEVER NEVER WASTE A WASTE A LUNCH!LUNCH!

““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.”

% XF % XF

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

evaluation! [The PAs Club.]evaluation! [The PAs Club.]

XFX:XFX: SOCIALSOCIAL ACCELERATORS …ACCELERATORS …

XFX/Typical XFX/Typical 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! (Purposefully. Consistently. Measurably.)functions! (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? Measured.)(Minimum 10% to 25% for everyone? Measured.)3. Ask peers in other functions for references so you can 3. Ask peers in other functions for references so you can become conversant in their world. (It’s one helluva sign become conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-ism.) of ... GIVE-A-DAMN-ism.) 4. Religiously invite counterparts in other functions to your 4. Religiously invite counterparts in other functions to your team meetings. Ask them to present “cool stuff” from “their team meetings. Ask them to present “cool stuff” from “their world” to your group. (Useful. Mark of respect.)world” to your group. (Useful. Mark of respect.)5. 5. PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: TO ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ONCE A DAY … make a short call or visit or send an email of ONCE A DAY … make a short call or visit or send an email of “Thanks” for some sort of XFX gesture by your folks and “Thanks” for some sort of XFX gesture by your folks and some other function’s folks.)some other function’s folks.) 6. Present counterparts in other functions awards for 6. Present counterparts in other functions awards for service to your group. Tiny awards at least weekly; and an service to your group. Tiny awards at least weekly; and an “Annual“Annual All-Star Supporters [from other groups] Banquet” All-Star Supporters [from other groups] Banquet” modeled after superstar salesperson banquets. modeled after superstar salesperson banquets.

XFX/: Typical XFX/: Typical SocialSocial Accelerators Accelerators

16. Formal evaluations. Everyone, starting with the 16. Formal evaluations. Everyone, starting with the receptionist, should have a significant XF rating component in receptionist, should have a significant XF rating component in their evaluation. (The “XFX Performance” should be among their evaluation. (The “XFX Performance” should be among the Top 3 items in all managers’ evaluations.)the Top 3 items in all managers’ evaluations.)17. 17. Every functional unit should have strict and extensive Every functional unit should have strict and extensive measures of “customer satisfaction” based on evaluations measures of “customer satisfaction” based on evaluations from other functions of its usefulness and effectiveness and from other functions of its usefulness and effectiveness and value-added to the enterprise as a whole. value-added to the enterprise as a whole. 18. Demand XF experience for, especially, senior jobs. For 18. Demand XF experience for, especially, senior jobs. For example, the U.S. military requires all would-be generals and example, the U.S. military requires all would-be generals and admirals to have served a full tour in a job whose only goals admirals to have served a full tour in a job whose only goals were cross-functional achievements.were cross-functional achievements.19. “Deep dip.” Dive three levels down in the organization to 19. “Deep dip.” Dive three levels down in the organization to fill a senior role with some one who has been noticeably pro-fill a senior role with some one who has been noticeably pro-active on adding value via excellent cross-functional active on adding value via excellent cross-functional integration. integration. 20. XFX is … PERSONAL … as well as about organizational 20. XFX is … PERSONAL … as well as about organizational effectiveness. PXFX [Personal XFX] is arguably the #1 effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to personal success—in terms of organizational Accelerant to personal success—in terms of organizational career, freelancer/Brand You, or as entrepreneur. career, freelancer/Brand You, or as entrepreneur.

21. 21. Excellence!Excellence! There is a “State of XF Excellence” per There is a “State of XF Excellence” per se. Talk it up constantly. Pursue it. Aspire to nothing less.se. Talk it up constantly. Pursue it. Aspire to nothing less.

EXPLICITLYEXPLICITLY & & VISIBLYVISIBLY & &

RELENTLESSLY RELENTLESSLY MANAGE TO XFX MANAGE TO XFX

STANDARD!STANDARD!

““You’re You’re spending too spending too

much timemuch time with your with your [bill-paying][bill-paying] customers!”customers!”

C(I)C(I)>>C(EC(E))

C(I) > C(E)C(I) > C(E)

Goal/s:Goal/s: (1) “Unfair” (1) “Unfair” “internal market “internal market

share”! (2) share”! (2) Have Have yyour our whole orwhole orgganization anization

zealouslzealouslyy workin workingg to to make make yyouou successful successful!!

““Success doesn’t depend on the number of Success doesn’t depend on the number of people you know; it depends on the number people you know; it depends on the number

of people you know in of people you know in hihigghh places!”places!”

oror

“Success doesn’t depend on the number of “Success doesn’t depend on the number of people you know; it depends on the number people you know; it depends on the number

of people you know in of people you know in ‘‘lowlow’’ places!”places!”

More than “performance More than “performance evaluation/award”evaluation/award”

More than “team accomplishment More than “team accomplishment evaluation/award.”evaluation/award.”

Rather:Rather: Specific and frequent and Specific and frequent and VISIBLE recognition to INDIVIDUALS who VISIBLE recognition to INDIVIDUALS who

have helped INDIVIDUALS in other have helped INDIVIDUALS in other functions—or, for that matter, our own functions—or, for that matter, our own group. E.g. group. E.g. BIG VISIBLE RECOGNITIONBIG VISIBLE RECOGNITION for sfor sppecific acts, small acts more than ecific acts, small acts more than

larlargge acts, of selflesslye acts, of selflessly helhelppiningg others others pper seer se..

PART 4:PART 4:Innovation & Innovation & Value AddedValue Added

11/47/47

Lesson47:Lesson47: WTTMSWTTMS

WW

WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTSTUFFSTUFFWINSWINS

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

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

““We 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 suckingcompetitors are still sucking their thumbs trying to 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 It ggets back to ets back to pplanninlanningg versus actin versus acting: g: We act We act from day onefrom day one; ; others others pplan how lan how

toto p planlan——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

““EXPERIMENT EXPERIMENT FEARLESSLY”FEARLESSLY”

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

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

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

““FAIL.FAIL. FORWARD. FORWARD.

FAST.”FAST.”High Tech CEO, Pennsylvania

““REWARDREWARD excellent failures. PUNISHPUNISH mediocre

successes.”—Phil Daniels, Sydney exec

““The essenceThe essence of capitalism is of capitalism is

encouraging failure, encouraging failure, not rewarding not rewarding

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

““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

WTTMSWTTMSASTMSUTFASTMSUTFWW

WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTSTUFFSTUFFANDANDSCREWS SCREWS THE THE MOST MOST STUFF STUFF UPUP THETHEFASTESTFASTESTWINSWINS

We Are We Are WhatWhat

We Eat. 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

WEWE ARE ARE THE THE COMPANYCOMPANY WE KEEP!WE KEEP!

MANAGEMANAGE IT! IT!

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

Axiom: Axiom: At its core, At its core, evereveryy (!!!) (!!!) relationship-partnership decision relationship-partnership decision

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

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

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

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

““[CEO A.G.] Lafley has shifted [CEO A.G.] Lafley has shifted P&G’sP&G’s focus onfocus on

inventing all its own products to developing … inventing all its own products to developing …

OTHERS’ OTHERS’ INVENTIONS AT INVENTIONS AT

LEAST HALF LEAST HALF THE TIMETHE TIME.. One successfulOne successful

example, Mr. Clean Magic Eraser, based on a product example, Mr. Clean Magic Eraser, based on a product found in an Osaka market.” found in an Osaka market.” ——FortuneFortune

““DON’T DON’T BENCHMARK, BENCHMARK, FUTUREFUTUREMARK!MARK!

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

not evenly distributed” —William Gibson

““DON’T DON’T BENCHMARK,BENCHMARK,

‘OTHER’ ‘OTHER’ MARKMARK!!””

Rob McEwen/CEO/Rob McEwen/CEO/Goldcorp Inc./Goldcorp Inc./

Red Lake Red Lake GOLDSource: Source: Wikinomics: How Mass

Collaboration Changes Everything, Don Tapscott & Anthony Williams

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

Companies offering Companies offering work to online work to online

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

‘crowdsourcing.’”‘crowdsourcing.’” —Headline, —Headline, FTFT

“The Bottleneck …The Bottleneck …

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

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

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

Top of the Top of the Bottle”Bottle”

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

We Are WhatWe Are What We Eat: The We Eat: The “Fred Smith “Fred Smith Question”Question”

““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

TGRs:TGRs:LBTsLBTs

LITTLE =LITTLE =

BIGBIG

Big carts =Big carts =

1.5X1.5XSource: Wal*MartSource: Wal*Mart

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

$B$BSource: PepsiCoSource: PepsiCo

2X: 2X: “When Friedman “When Friedman

slisligghtlhtly y curvedcurved the right angle of the right angle of

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

magnitude of change in magnitude of change in pedestrians’ behavior’—the pedestrians’ behavior’—the

percentage who entered increased percentage who entered increased from from oneone--thirdthird to nearly to nearly twotwo--

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

Machine GamblingMachine Gambling

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

+45%+45% revenue revenue

Source:Source: “Effects of Ambient Odors on Slot-Machine Useage in Las Vegas “Effects of Ambient Odors on Slot-Machine Useage in Las Vegas Casinos,” reported inCasinos,” reported in Natasha Dow Schull, Natasha Dow Schull, Addiction By Design: Addiction By Design:

Machine Gambling in Las Vegas Machine Gambling in Las Vegas (66% revenue, 85% profit)(66% revenue, 85% profit)

<TG<TGWWandand … …

>TG>TGRR[Things Gone [Things Gone WRONG-Things Gone -Things Gone RIGHTRIGHT]]

(1)(1) Amenable to rapid Amenable to rapid experimentation/experimentation/ failure “free” (PR, $failure “free” (PR, $

$)$)(2)(2) Quick to implement/ Quick to implement/ Quick to Roll outQuick to Roll out(3)(3) Inexpensive to Inexpensive to implement/Roll outimplement/Roll out(4)(4) Huge multiplier Huge multiplier(5)(5) An “Attitude” An “Attitude”

TGRs:TGRs:CCNNOO

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

an impact on just about an impact on just about everything we do.”everything we do.”

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

MillerCoors:MillerCoors: Gender imbalance. Women of Sales peer Gender imbalance. Women of Sales peer support. Private network, Attrition plummeted.support. Private network, Attrition plummeted.

Teva Canada:Teva Canada: Supply chain excellence achieved. Share- Supply chain excellence achieved. Share-Point/troubleshooting/Strategy-Nets/hooked to other Point/troubleshooting/Strategy-Nets/hooked to other functions; Moxie social tools, document editing, etc.functions; Moxie social tools, document editing, etc.

IBM:IBM: Social business tools/30 percent drop in project Social business tools/30 percent drop in project completion time/300K on LinkedIn, 200K on Facebookcompletion time/300K on LinkedIn, 200K on Facebook

Bloomberg:Bloomberg: Mobi social media analytics prelude to stock Mobi social media analytics prelude to stock performanceperformance

Intuit:Intuit: struggling against H&R Block temp struggling against H&R Block temp staffing/customers #1 asset/Live Community, focused on staffing/customers #1 asset/Live Community, focused on help with transactions (not general, embedded in help with transactions (not general, embedded in TurboTaxTurboTax

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

Gamification Gamification

“Gamification presents “Gamification presents the the best tools humanitbest tools humanityy has ever hadhas ever had to create to create

and sustain and sustain engagement in people.” engagement in people.”

Source: Gabe Zichermann & Joselin Linder, Source: Gabe Zichermann & Joselin Linder, Gamification: How Leaders Gamification: How Leaders Leverage Game Mechanics to Crush the Competition Leverage Game Mechanics to Crush the Competition

CCMMO/ MarketingO/ MarketingCCEEO/ExperienceO/Experience

CCNNO/eNgagementO/eNgagement

““You get a sense of the scale and intricacy You get a sense of the scale and intricacy of the task by considering the sound of the task by considering the sound

effects alone: The game contains 54,000 effects alone: The game contains 54,000 pieces of audio and 40,000 lines of pieces of audio and 40,000 lines of

dialogue.dialogue. There are There are

2,7002,700 different different

noises for footsteps alone noises for footsteps alone depending on whose foot is depending on whose foot is

stepping on what.”stepping on what.”

——Sam LeithSam Leith onon Halo 3, Halo 3, from Jane McGonigal, from Jane McGonigal, Reality Is Broken: Reality Is Broken: Why Games MakeUs Better and How They Can Change the World Why Games MakeUs Better and How They Can Change the World

TGRs:TGRs:8/808/80

CustomersCustomers describing their describing their service experience as service experience as

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

the service experience they the service experience they provide asprovide as

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

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

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

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

sir?”sir?”

It It BEGINSBEGINS (and (and ENDSENDS) )

in the …in the …

PARKINGPARKING LOTLOT**

*Disney*Disney

<TG<TGWWandand … …

>TG>TGRR[Things Gone [Things Gone WRONG-Things Gone -Things Gone RIGHTRIGHT]]

TGRTGRSS..MANAGEMANAGE ’EM. ’EM.

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

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

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

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

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

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

DesignDesign! !

Design Design RulesRules!!

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

*August 2011*August 2011

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

Source: Source: InsightsInsights, definitions of design, the Design Council [UK], definitions of design, the Design Council [UK]

““Design is Design is

treated like treated like a relia religgionion at at

BMW.”*BMW.”* —Fortune—Fortune

**APPLEAPPLE market cap > Exxon Mobil (August 2011) market cap > Exxon Mobil (August 2011)

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

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

AestheticsAesthetics what McDonald’s was to the what McDonald’s was to the AAggee ofof ConvenienceConvenience or Ford was to the Age of Mass Production or Ford was to the Age of Mass Production—the touchstone success story, the exemplar of … the —the touchstone success story, the exemplar of … the

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

enhance the qualityenhance the quality of everything the customers see, of everything the customers see, touch, hear, smell or taste,’touch, hear, smell or taste,’ writeswrites

CEO Howard Schultz.” CEO Howard Schultz.” —Virginia Postrel, The Substance of Style: How the Rise of Aesthetic

Value Is Remaking Commerce, Culture and Consciousness

Hypothesis:Hypothesis: DESIGNDESIGN is the is the pprincirincippalal

differencedifference

between between lovelove

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

CCDDOO**Chief *Chief DDesignesign Officer Officer

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

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

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

Design is …Design is …

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

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

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

to to bebe designers.” designers.” —Roger Martin/Dean/Rotman Management School/University of Toronto—Roger Martin/Dean/Rotman Management School/University of Toronto

IBIBMMtoto

IIBBMM

““Lou, Your mission Lou, Your mission is to break the is to break the

company up and company up and release hidden release hidden

value!”value!”

““Lou, with all the Lou, with all the money I’ve spentmoney I’ve spent

with you guys, why in with you guys, why in the hell hasn’t my the hell hasn’t my

business been business been transformed?”transformed?”

$55B*$55B**IBM Global Services/*IBM Global Services/

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

PlanetarPlanetary y RainmakerRainmaker--inin--ChiefChief!!

“[CEO Sam] Palmisano’s “[CEO Sam] Palmisano’s strategy is to expand tech’s strategy is to expand tech’s borders by pushing users—borders by pushing users—

and entire industries—and entire industries—towardtoward radicallradically y differentdifferent businessbusiness modelsmodels.. The payoff for IBM would be The payoff for IBM would be

access to an ocean of revenue—Palmisano access to an ocean of revenue—Palmisano

estimates it atestimates it at $$500500 billionbillion aa y yearear ——that technology companies have never been that technology companies have never been

able to touch.”able to touch.” ——FortuneFortune

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

hell if you don’t hell if you don’t have services.”have services.”—Lou Gerstner, on IBM’s coming revolution (1997)—Lou Gerstner, on IBM’s coming revolution (1997)

““Big Brown’s New Bag: UPS Big Brown’s New Bag: UPS Aims to Be the Aims to Be the Traffic ManaTraffic Managger er for Corfor Corpporate Americaorate America”” —Headline/—Headline/BWBW

“UPS wants to take over the “UPS wants to take over the sweet ssweet sppot in the endless looot in the endless loop p

of of ggoods, information and oods, information and cacappital that all the ital that all the ppackagesackages

[it moves][it moves] r reeppresentresent.”.” —ecompany.com —ecompany.com

(E.g., (E.g., UPS Logistics UPS Logistics manages the logistics of manages the logistics of

4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)

Huge:Huge: “Customer “Customer

SatisfactionSatisfaction with with product/Service” product/Service”

to to

“CUSTOMER “CUSTOMER SUCCESSSUCCESS””

“ ‘“ ‘Results’ are Results’ are measured by the measured by the

successsuccess of all those of all those who have purchased who have purchased

your product or your product or service”service” —Jan Gunnarsson & Olle —Jan Gunnarsson & Olle

Blohm, Blohm, The Welcoming LeaderThe Welcoming Leader

Big STINKS:Big STINKS:Mid-size Mid-size

Superstars/Superstars/Roll Out theRoll Out the Red Carpet Red Carpet

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

seems obviousseems obvious … …

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

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

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

obvious: BuBuyy a ver a veryy larlarggee

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

Fail: Evolution, Extinction and Economics

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

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

NONENONE ofof

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

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

—Financial Times—Financial Times

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

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

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

MITTELSTANDMITTELSTAND* *** **

**“agile creatures darting between the legs of“agile creatures darting between the legs of the multinational monsters”the multinational monsters” ((Bloomberg BusinessWeek, Bloomberg BusinessWeek, 10.10)10.10)

**E.g. Goldmann Produktion**E.g. Goldmann Produktion

THE RED THE RED CARPET CARPET STORESTORE

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

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

Independent StoresIndependent Storesin Americain America —by George Whalin—by George Whalin

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 calls it, begins in the parking lot calls it, begins in the parking lot and goes on to and goes on to

1,600 cheeses1,600 cheeses and, yes, and, yes, 1,400 varieties of 1,400 varieties of hot saucehot sauce —not to mention —not to mention 12,000 wines 12,000 wines priced from $8 to $8,000priced from $8 to $8,000 a bottle; all this is a bottle; all this is

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

Small Giants: Small Giants: Companies That Choose to Be Companies That Choose to Be

Great Instead of BigGreat Instead of Big

Small Giants: Companies that Chose to Be Great Instead of Big (Bo Burlingham)

““THEY CULTIVATED THEY CULTIVATED EXCEPTIONALLY INTIMATE EXCEPTIONALLY INTIMATE RELATIONSHIPS WITH CUSTOMERS AND SUPPLIERSRELATIONSHIPS WITH CUSTOMERS AND SUPPLIERS, , based based on personal contact, one-on-one interaction, and mutual on personal contact, one-on-one interaction, and mutual commitment to delivering on promises.commitment to delivering on promises.

“EACH COMPANY HAD AN ACH COMPANY HAD AN EXTRAORDINARILY INTIMATE EXTRAORDINARILY INTIMATE RELATIONSHIP WITH THE LOCAL CITY, TOWN, OR COUNTYRELATIONSHIP WITH THE LOCAL CITY, TOWN, OR COUNTY in in which it did business -- a relationship that went well beyond which it did business -- a relationship that went well beyond the usual concept of `giving back.’ the usual concept of `giving back.’

““The companies had what struck me asThe companies had what struck me as UNUSUALLY UNUSUALLY INTIMATE WORKPLACESINTIMATE WORKPLACES..

““I noticed theI noticed the PASSIONPASSION that the leaders brought to what the that the leaders brought to what the company did.company did. THEY LOVED THE SUBJECT MATTERTHEY LOVED THE SUBJECT MATTER, , whether it whether it be music, safety lighting, food, special effects, constant be music, safety lighting, food, special effects, constant torque hinges, beer, records storage, construction, dining, torque hinges, beer, records storage, construction, dining, or fashion."or fashion."

14,00014,00020,00020,000

3030

14,00014,00020,00020,000

3030

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

3030/Craigslist/Craigslist

““We all agree your We all agree your theory is crazy. The theory is crazy. The

question, which question, which divides us, is divides us, is

whether it is crazy whether it is crazy enough.”enough.” —Niels Bohr, to Wolfgang Pauli—Niels Bohr, to Wolfgang Pauli

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

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

already doing it.”already doing it.”—Hajime Mitarai, Canon—Hajime Mitarai, Canon

Every project:Every project: Where’s Where’s your “Craig’s your “Craig’s

List List

[WOW!][WOW!]

option”option”??

Kevin Roberts’ CredoKevin Roberts’ Credo

11. Ready. Fire! Aim.. Ready. Fire! Aim.2. If it ain’t broke ... Break it!2. If it ain’t broke ... Break it!3. Hire crazies.3. Hire crazies.4. Ask dumb questions.4. Ask dumb questions.5. Pursue failure.5. Pursue failure.6. Lead, follow ... or get out of the way!6. Lead, follow ... or get out of the way!7. Spread confusion.7. Spread confusion.8. Ditch your office.8. Ditch your office.9. Read odd stuff.9. Read odd stuff.

10. AVOID MODERATIONAVOID MODERATION!!

““INSANELY GREAT”INSANELY GREAT”STEVE JOBSSTEVE JOBS

“RADICALLY THRILLING” “RADICALLY THRILLING” BMW

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

Initiatives/Key Projects score 88 or higher or higher [out of 10] on a

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

Scale?

ExcellenceExcellence!!

EXCELLENCE.EXCELLENCE. Always. Always. If notIf not EXCELLENCE,EXCELLENCE,

what?what?If notIf not EXCELLENCEEXCELLENCE now, now,

when?when?

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

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

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

worth worth doindoing.”g.”

——Richard BransonRichard Branson