Excellence: The 12H “Theory of Everything” BNZ /A CONVERSATION WITH TOM PETERS

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

insure that it is not a insure that it is not a messmess],], you need Microsoft you need Microsoft

fonts:fonts:

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

“Chiller”“Chiller” andand “Verdana”“Verdana”

Excellence:Excellence:

The The 12H 12H “ “Theory of Everything”Theory of Everything”

BNZBNZ/A CONVERSATION WITH TOM PETERS /A CONVERSATION WITH TOM PETERS Auckland/23 February 2011/Museum Events CentreAuckland/23 February 2011/Museum Events Centre

The Moral Basis ForThe Moral Basis For & societal Role of & societal Role of

Enterprise.Enterprise.

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

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

doing.”doing.” —Richard Branson—Richard Branson

““It is not enough for an agency toIt is not enough for an agency to be respected for its professional be respected for its professional

competence. Indeed, there isn’t muchcompetence. Indeed, there isn’t much to choose between the competenceto choose between the competence

of big agencies. of big agencies.

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

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

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

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

Organizations Organizations existexist to to serveserve. .

Period.Period.

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

Why in the Why in the

World did World did youyou

go to go to SiberiaSiberia??

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

concerted humanconcerted human potential in the potential in the wholeheartedwholehearted serviceservice of others of others.****Employees, Customers, Suppliers, Communities, Owners, Temporary partners**Employees, Customers, Suppliers, Communities, Owners, Temporary partners

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

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

““Breakthrough” 82*Breakthrough” 82*

People! People! CustomersCustomers

! ! Action! Action! Values! Values!

**In Search of ExcellenceIn Search of Excellence

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 longshots (people with “a certain something”) you bet on whoThe longshots (people with “a certain something”) you bet on who surprised themselves—surprised themselves—andand your peers. your peers.

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


Belly laughs at some of the stupid-insane things you and your Belly laughs at some of the stupid-insane things you and your matesmates tried.tried.Less than a closet full of “I should have …”Less than a closet full of “I should have …”

A frighteningly consistent record of having A frighteningly consistent record of having invariably said, invariably said, “Go for it!”“Go for it!”Not intervening in the face of considerable loss—recognizing that toNot intervening in the face of considerable loss—recognizing that to develop top talent means tolerating failures and allowing thedevelop top talent means tolerating failures and allowing the person who screwed up to work their own way through and out ofperson who screwed up to work their own way through and out of their self-created mess.their self-created mess.Dealing with one or more crises with particular/memorable aplomb.Dealing with one or more crises with particular/memorable aplomb.

Demanding … Demanding … CIVILITYCIVILITY … regardless of circumstances.… regardless of circumstances.Turning around one or two or so truly dreadful situations—andTurning around one or two or so truly dreadful situations—and watching almost everyone involved rise to the occasion (often towatching almost everyone involved rise to the occasion (often to their own surprise) and acquire a renewed sense of purpose in their own surprise) and acquire a renewed sense of purpose in thethe process.process.Leaving something behind of demonstrable-lasting worth. (On short Leaving something behind of demonstrable-lasting worth. (On short asas well as long assignments.)well as long assignments.)


Having almost always (99% of the time) put “Quality” and Having almost always (99% of the time) put “Quality” and “Excellence”“Excellence” ahead of “Quantity.” (At times an unpopular approach.)ahead of “Quantity.” (At times an unpopular approach.)A few “critical” instances where you stopped short and could haveA few “critical” instances where you stopped short and could have “ “done more”—but to have done so would have compromised your done more”—but to have done so would have compromised your andand your team’s character and integrity.your team’s character and integrity.A sense of time well and honorably spent.A sense of time well and honorably spent.The expression of “simple” human kindness and consideration—noThe expression of “simple” human kindness and consideration—no matter how harried you may be/may have been.matter how harried you may be/may have been.Understood that your demeanor/expression of character always setUnderstood that your demeanor/expression of character always set the tone—especially in difficult situations. the tone—especially in difficult situations. Never (rarely) let your external expression of enthusiasm/ Never (rarely) let your external expression of enthusiasm/ determination flag—the rougher the times, the more your determination flag—the rougher the times, the more your expressedexpressed energy and bedrock optimism and sense of humor showed.energy and bedrock optimism and sense of humor showed.

The respect of your peers.The respect of your peers.A stoic unwillingness to badmouth others—even in private.A stoic unwillingness to badmouth others—even in private.


An invariant creed: When something goes amiss, An invariant creed: When something goes amiss, “The buck stops with“The buck stops with meme”; when something goes right, it was ”; when something goes right, it was their their doing, not yours.doing, not yours.

A Mandela-like “naïve” belief that others willA Mandela-like “naïve” belief that others will rise to the occasion if given the opportunity.rise to the occasion if given the opportunity.A reputation for eschewing the “trappings of power.” (Strong self-A reputation for eschewing the “trappings of power.” (Strong self- management of tendencies toward arrogance or dismissiveness.)management of tendencies toward arrogance or dismissiveness.)Intense, even “driven” … but not to the point of being careless of Intense, even “driven” … but not to the point of being careless of othersothers in the process of forging ahead.in the process of forging ahead.Willing time and again to be surprised by ways of doing things that Willing time and again to be surprised by ways of doing things that areare inconsistent with your “certain hypotheses.”inconsistent with your “certain hypotheses.”

Humility in the face of others, at every level, Humility in the face of others, at every level, who know more than you about “the waywho know more than you about “the way things really are.”things really are.”Bit your tongue on a thousand occasions—and Bit your tongue on a thousand occasions—and listened, listened, reallyreally really really listened. (And listened. (And been constantly delighted when, as a result, been constantly delighted when, as a result, youyou invariablyinvariably learned something new and learned something new and invariablyinvariably increased your increased your connection with the speaker.)connection with the speaker.)


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.)


Created the sort of workplaces you’d like your kids toCreated the sort of workplaces you’d like your kids to inhabit. (Explicitly conscious of this “Would I want inhabit. (Explicitly conscious of this “Would I want mymy kids to work here?” litmus test.)kids to work here?” litmus test.)A “certifiable” “nut” about quality and safety and integrity. (More A “certifiable” “nut” about quality and safety and integrity. (More oror less regardless of any costs.)less regardless of any costs.)A notable few circumstances where you resigned rather thanA notable few circumstances where you resigned rather than compromise your bedrock beliefs.compromise your bedrock beliefs.Perfectionism just short of the paralyzing variety.Perfectionism just short of the paralyzing variety.

A self- and relentlessly enforced group standard of A self- and relentlessly enforced group standard of “ “EXCELLENCE-in-all-we-do”/“EXCELLENCE in ourEXCELLENCE-in-all-we-do”/“EXCELLENCE in our behavior toward one another.”behavior toward one another.”

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

Net WorthNet Worth

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

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

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

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

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

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

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

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

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

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

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

Four [really] Four [really] First things First things Before First Before First

Things …Things …

#1#1

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

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

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

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

same awareness?same awareness?

#1#1 cause of cause of

employee employee Dis-satisfaction?Dis-satisfaction?

Employee retention & satisfaction:Employee retention & satisfaction: 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 First, Break All the Rules: What the World’s Greatest Managers Do Differentlythe Rules: What the World’s Greatest Managers Do Differently

I am sure you “spend time” I am sure you “spend time” on this. My question: Is it an on this. My question: Is it an

… … OBSESSIONOBSESSION … …worthy of the impact it has worthy of the impact it has on enterprise performance?on enterprise performance?

E.g.: Do you have the ...E.g.: Do you have the ...

ABSOLUTE BEST ABSOLUTE BEST TRAINING PROGRAMTRAINING PROGRAMIN 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.’”

#2#2

Problem #1.Opportunity

#1.

XFX = XFX = #1#1**

*Cross-Functional *Cross-Functional eXcellence eXcellence

Gerald Seymour.Gerald Seymour.John Le Carre.John Le Carre.

Never Never waste a waste a lunch!lunch!

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

success, success, allall achievement in realachievement in real

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

““Allied commands depend Allied commands depend on mutual confidence on mutual confidence and this confidence is and this confidence is

gained, above all gained, above all through the through 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 the he made friends and earned the trust of fellow cadets who came from wideltrust of fellow cadets who came from widelyy varied varied

backbackggroundsrounds; it was a quality that would pay great; it was a quality that would pay great dividends during his future coalition command.”dividends during his future coalition command.”

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

RReturn eturn OOn n

IInvestment In nvestment In

RRelationshipselationships

% XF % XF

lunches*lunches***MeasureMeasure!!!! Monthly! Monthly!

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

MeasureMeasure

!!(Base/230)(Base/230)

Lunch Lunch > SAP/> SAP/OracleOracle

(Way) Underutilized Lever(Way) Underutilized Lever

Space!Space!Space!Space!Space!Space!Space!Space!

Geologists + Geologists + Geophysicists + Geophysicists +

A little bit of love =A little bit of love =

OilOil

XFX:XFX: SocialSocial accelerators …accelerators …

““XFXXFX SocialSocial Accelerators.” Accelerators.”

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

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

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

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

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

““XFX XFX SocialSocial Accelerators.” Accelerators.”

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

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

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

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

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

allall managers’ evaluations.) managers’ evaluations.)

Promote into Promote into functionalfunctional leadership leadership

positions based positions based primarily on … primarily on …

temperamenttemperament..

““Incidentally” …Incidentally” …

Women’s NeWomen’s Neggotiatinotiatingg Stren Strenggthsths

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

Source: Horacio Falcao, Cover story/May 2006, World Business, “Say It Like a Woman: Why the 21st-century negotiator will need the female touch”

““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!”

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

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

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

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

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

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

THE WHOLE POINT HERE IS THAT THE WHOLE POINT HERE IS THAT “XFX”“XFX” IS IS

ALMOST CERTAINLY THE ALMOST CERTAINLY THE #1#1 OPPORTUNITY OPPORTUNITY FOR STRATEGIC DIFFERENTIATION. WHILE FOR STRATEGIC DIFFERENTIATION. WHILE

MANY WOULD LIKELY AGREE, IN OUR MANY WOULD LIKELY AGREE, IN OUR MOMENT-TO-MOMENT AFFAIRS, XFX PER SE MOMENT-TO-MOMENT AFFAIRS, XFX PER SE

IS NOT SO OFTEN VISIBLY & PERPETUALLY AT IS NOT SO OFTEN VISIBLY & PERPETUALLY AT THE THE TOPTOP OF EVERY AGENDA. I ARGUE HERE OF EVERY AGENDA. I ARGUE HERE

FOR NO LESS THAN …FOR NO LESS THAN …

VISIBLE.VISIBLE.CONSTANT.CONSTANT.OBSESSION.OBSESSION.


Values: Values: “We will not rest until “We will not rest until seamless cross-functional seamless cross-functional

integration/communication has integration/communication has become our primary source of become our primary source of value-value-addedadded. EXCELLENCE in . EXCELLENCE in cross-functional integration cross-functional integration

shall become a shall become a daildaily y oopperationalerational p passionassion for 100% of for 100% of

us.”us.”

XFX = XFX =

#1#1***Cross-Functional *Cross-Functional eXcellence eXcellence

#3#3

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

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

18 18 ……

18 … 18 … secondsseconds!!

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

of of RespectRespect..

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

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

[cont.][cont.]

Listening is ... the engine of Listening is ... the engine of superior superior EXECUTIONEXECUTION..Listening is ... the key to Listening is ... the key to making the making the SaleSale..Listening is ... the key to Listening is ... the key to Keeping the Customer’s BusinessKeeping the Customer’s Business..Listening is ... Listening is ... ServiceService..Listening is ... the engine of Listening is ... the engine of Network developmentNetwork development..Listening is ... the engine of Listening is ... the engine of Network maintenanceNetwork maintenance..Listening is ... the engine of Listening is ... the engine of Network expansionNetwork expansion..Listening is ... Listening is ... Social Networking’s “secret weapon.”Social Networking’s “secret weapon.”Listening is ... Listening is ... LearningLearning..Listening is ... the Listening is ... the sine qua non of sine qua non of RenewalRenewal..Listening is ... the Listening is ... the sine qua non of sine qua non of CreativityCreativity..Listening is ... the Listening is ... the sine qua non of sine qua non of InnovationInnovation..Listening is ... the core of Listening is ... the core of taking diverse opinions aboardtaking diverse opinions aboard..Listening is ... Listening is ... StrategyStrategy..Listening is ... Listening is ... Source #1 of “Value-addedSource #1 of “Value-added.”.”Listening is ... Listening is ... Differentiator #1Differentiator #1..Listening is ... Listening is ... ProfitableProfitable.*.* (*The “R.O.I.” from listening is higher than(*The “R.O.I.” from listening is higher than from any other single activity.)from any other single activity.)

Listening is … the bedrock which underpins a Listening is … the bedrock which underpins a Commitment toCommitment to EXCELLENCEEXCELLENCE

IfIf you agree with the above, shouldn’t listening be ... a Core you agree with the above, shouldn’t listening be ... a Core

Value?Value?If you agree with the above, shouldn’t listening be ... perhaps If you agree with the above, shouldn’t listening be ... perhaps Core Value #1?* Core Value #1?* (*“We are Effective Listeners—we treat (*“We are Effective Listeners—we treat Listening EXCELLENCE as the Centerpiece of our Commitment Listening EXCELLENCE as the Centerpiece of our Commitment to Respect and Engagement and Community and Growth.”)to Respect and Engagement and Community and Growth.”)If you agree, shouldn’t listening be ... a Core Competence?If you agree, shouldn’t listening be ... a Core Competence?If you agree, shouldn’t listening be ... Core Competence #1?If you agree, shouldn’t listening be ... Core Competence #1?If you agree, shouldn’t listening be ... an explicit “agenda item” If you agree, shouldn’t listening be ... an explicit “agenda item” at every Meeting?at every Meeting?If you agree, shouldn’t listening be ... our Strategy—per se? If you agree, shouldn’t listening be ... our Strategy—per se? (Listening = Strategy.)(Listening = Strategy.)If you agree, shouldn’t listening be ... the #1 skill we look for in If you agree, shouldn’t listening be ... the #1 skill we look for in Hiring (for every job)?Hiring (for every job)?


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.”

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

Smart HospitalsSmart Hospitals

*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 ! !

Message:Message: Listening is a Listening is a … …

professionprofession!!

Listen! Ask!Listen! Ask!

••Listening Leaders: The Ten Golden Rules ToListening Leaders: The Ten Golden Rules To Listen, Lead & Succeed—Listen, Lead & Succeed—Lyman Steil andLyman Steil and Richard BommeljeRichard Bommelje••The Zen of Listening—The Zen of Listening—Rebecca ShafirRebecca Shafir••Effective Listening Skills—Effective Listening Skills—Dennis Kratz andDennis Kratz and Abby Robinson KratzAbby Robinson Kratz••Are You Really Listening?—Are You Really Listening?—Paul Donoghue andPaul Donoghue and Mary SiegelMary Siegel••Active Listening: Improve Your Ability to ListenActive Listening: Improve Your Ability to Listen and Lead—and Lead—Michael HoppeMichael Hoppe••Listening: The Forgotten SkillListening: The Forgotten Skill — —Madelyn Burley-AllenMadelyn Burley-Allen••Leading with Questions: How Leaders Find the Right Solutions Leading with Questions: How Leaders Find the Right Solutions by Knowing What to Ask—by Knowing What to Ask—Michael MarquardtMichael Marquardt••Smart Questions: Learn to Ask the Right Questions for Powerful Smart Questions: Learn to Ask the Right Questions for Powerful Results—Results—Gerald Nadler and William ChandonGerald Nadler and William Chandon••The Art of Asking: Ask Better Questions, Get Better AnswersThe Art of Asking: Ask Better Questions, Get Better Answers — —Terry FademTerry Fadem••How to Ask Great Questions—How to Ask Great Questions—Karen Lee-ThorpKaren Lee-Thorp••Change Your Questions, Change Your Life—Change Your Questions, Change Your Life—Marilee AdamsMarilee Adams••Asking the Right Questions: A Guide to Critical ThinkingAsking the Right Questions: A Guide to Critical Thinking — —Neil Browne and Stuart KeeleyNeil Browne and Stuart Keeley

““The problem with The problem with communication ... communication ... is the ILLUSION is the ILLUSION that it has been that it has been accomplished.”accomplished.”

——George Bernard ShawGeorge Bernard Shaw

It’s It’s always always youryour fault.fault.

#3A#3A

““Profession”Profession”

*Decide & Commit*Decide & Commit*Study*Study*Practice*Practice*Apply*Apply*Evaluate & *Evaluate & MeasureMeasure*“CI”*“CI” [Continuous Improvement][Continuous Improvement]

Are you a Are you a “professional” “professional” when it comeswhen it comes to to StrategicStrategic ListeningListening??

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

when it comes to when it comes to

AskingAsking questionsquestions??


when it comes to when it comes to

OfferingOffering helphelp??

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

apologyapology??


when it comes to when it comes to TheThe ArtArt ofof

appreciationappreciation??


when it comes to when it comes to HiringHiring peoplepeople? ?


when it comes to when it comes to DevelopingDeveloping peoplepeople? ?


when it comes to when it comes to evaluatingevaluating peoplepeople? ?

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 comeswhen it comes

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

#4#4

1/8 seconds1/8 seconds20 years20 years

Date: 1/1/11Date: 1/1/11Activity: Boomers startActivity: Boomers start turning 65 turning 65

Rate: Rate: 7.5 per minute/7.5 per minute/ 10,000 per day/ 10,000 per day/ 4,000,000 per year 4,000,000 per yearDuration: 20 yearsDuration: 20 yearsImpacted: EVERYTHINGImpacted: EVERYTHING

MustMust read: read:

SHOCK OF GRAY: The Aging SHOCK OF GRAY: The Aging of the World’s Population of the World’s Population

and How It Pits Young and How It Pits Young Against Old, Child Against Against Old, Child Against

Parent, Worker Against Parent, Worker Against Boss, Company Against Boss, Company Against

Rival, and Nation Against Rival, and Nation Against Nation Nation —Ted Fishman—Ted Fishman

Philips LifelinePhilips Lifeline

*6,000,000 members*6,000,000 members**600,000 calls typical morning600,000 calls typical morning*Philips bought for*Philips bought for $750,000,000 in 2006 $750,000,000 in 2006*Homecare in 2010:*Homecare in 2010: $140,000,000,000/ $140,000,000,000/sksky y hihigghh g growthrowth

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““People turning 50 People turning 50

today have today have more more thanthan halfhalf of of their adult life their adult life

ahead of them.”ahead of them.” —Bill

Novelli, 50+: Igniting a Revolution to Reinvent America

7/17/133

55+ > 55-55+ > 55-**

*“[55-plus] are more active in online*“[55-plus] are more active in online finance, shopping and entertainment than finance, shopping and entertainment than

those under 55?”—Forrester Research those under 55?”—Forrester Research ((USA TodayUSA Today, 8 January 2009), 8 January 2009)

44-6544-65:: “New “New Customer Customer Majority”Majority”

Source: Source: Ageless MarketingAgeless Marketing, David Wolfe & Robert Snyder, David Wolfe & Robert Snyder

““Marketers attempts at reaching Marketers attempts at reaching those over 50 have been miserably those over 50 have been miserably

unsuccessful.unsuccessful. No market’s No market’s motivations andmotivations and

needs are so needs are so poorlpoorlyy

understoodunderstood.”.” ——Peter Francese, founding publisher, Peter Francese, founding publisher, American DemographicsAmerican Demographics

““Baby-boomer Baby-boomer WomenWomen: : TheThe Sweetest of Sweetest of

Sweet Spots for Sweet Spots for Marketers”Marketers”

—David Wolfe and Robert Snyder, —David Wolfe and Robert Snyder, Ageless MarketingAgeless Marketing

Median Household Net WorthMedian Household Net Worth

<35: $7K<35: $7K35-44: $44K35-44: $44K45-54: $83K45-54: $83K

55-64: $112K55-64: $112K65-69: $114K65-69: $114K70-74: $120K70-74: $120K

>74: $100K>74: $100KSource: U.S. CensusSource: U.S. Census


Values: Values: We understand that We understand that there is an “aging tsunami” there is an “aging tsunami”

that will alter the that will alter the marketplace dramatically—marketplace dramatically—

and we stand ready to and we stand ready to respond to/shape this respond to/shape this

humongous market’s needs humongous market’s needs and desires. and desires.

We are the We are the Aussies & Kiwis &Aussies & Kiwis & Americans & CanadiansAmericans & Canadians. . We are the We are the Western EuropeansWestern Europeans & & JapaneseJapanese. We are . We are the the fastest growingfastest growing, the , the biggestbiggest, the , the

wealthiestwealthiest, the , the boldestboldest, the most , the most (yes) (yes) ambitiouambitious, the most s, the most

experimental & exploratoryexperimental & exploratory, the , the most most differentdifferent, the most , the most indulgentindulgent, the most , the most difficult difficult

&& demandingdemanding, the most , the most service & experience service & experience obsessedobsessed, the most , the most vigorousvigorous, (the , (the leastleast vigorous,) vigorous,) the most the most health conscioushealth conscious, the most , the most femalefemale, the , the

most profoundly important commercial market in the most profoundly important commercial market in the

history of the world—andhistory of the world—and we will be we will be the Center of the Center of yyour our

universe for the next universe for the next twenttwentyy-five -five yyearsears.. We We

have arrived!have arrived!

W W == 25T 25T >> 2(C 2(C + I)+ I)

Four [really] Four [really] First things First things Before First Before First

Things …Things …

Four First Things Before First Four First Things Before First Things:Things: Core Values/Surpassing Business Assets/ Core Values/Surpassing Business Assets/ Sustainable Competitive Advantages Sustainable Competitive Advantages

1. 1. EXCELLENCE … First-line managementEXCELLENCE … First-line management cadre as cadre as engine engine of of enterpriseenterprise performance! performance!

2. 2. EXCELLENCE … Value-added EXCELLENCE … Value-added opportunity #1opportunity #1 through seamless through seamless cross-functional integration! cross-functional integration!

3. 3. EXCELLENCE … “Strategic” listening asEXCELLENCE … “Strategic” listening as peerless peerless enterpriseenterprise differentiator! differentiator!

4.4. EXCELLENCE … Seizing the EXCELLENCE … Seizing the stupendousstupendous aging market opportunity! aging market opportunity!


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 the none—we understand that the EXCELLENCE of this cadre per EXCELLENCE of this cadre per se is arguably one of our top se is arguably one of our top two or three most important two or three most important

‘Strategic Assets.’”‘Strategic Assets.’”


Values: Values: “We will not rest until “We will not rest until seamless cross-functional seamless cross-functional

integration/communication has integration/communication has become our primary source of become our primary source of value-added. EXCELLENCE in value-added. EXCELLENCE in cross-functional integration cross-functional integration

shall become a shall become a daildaily y oopperational erational passion for passion for 100100% of % of

us.”us.”


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

EXCELLENCE as the EXCELLENCE 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.”


Values: Values: We understand that We understand that there is an “aging tsunami” there is an “aging tsunami”

that willthat will alter the marketplace alter the marketplace

dramatically—anddramatically—and we stand ready to respond we stand ready to respond to/shape this humongous to/shape this humongous

market’s needs and desires. market’s needs and desires.

Excellence:Excellence:

The The 12H 12H “ “Theory of Everything”Theory of Everything”

H1H1

All you need to know …All you need to know …

HiltonHiltonHowardHowardHerbHerbHenry IHenry IHillHillHarleyHarleyHandyHandyHeatherHeatherHartvilleHartvilleHenry IIHenry IIHamelHamelHsiehHsieh

Conrad Hilton, at a gala Conrad Hilton, at a gala celebrating his career,celebrating his career,

was asked, was asked, “What was the most important lesson you’ve 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””

““Execution Execution isis strategy.”strategy.”

—Fred Malek—Fred Malek

““We have a We have a strategic plan. strategic plan.

It’s called doing It’s called doing things.”things.” —Herb Kelleher—Herb Kelleher

““ExecutionExecution is is thethe jobjob of the of the

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

Charan/ Execution: The Discipline of Getting Things Done

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

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

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

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

“Execution isExecution is aa

systematic systematic processprocess of rigorously of rigorously

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

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

The The DisciDiscipplineline of Getting Things Done of Getting Things Done

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

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

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

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

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

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

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

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

might wonder how it is might wonder how it is

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

be cleverbe clever.”.” —Napoleon—Napoleon

InternalInternal organizational organizational excellence = excellence =

Deepest “Blue Deepest “Blue Ocean”Ocean”

““The score The score takes care of takes care of

itself.”itself.” —Bill Walsh—Bill Walsh

H2H2



2255

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

stores— stores— at least 25 at least 25 a weeka week. I’m also in other . I’m also in other

places: Home Depot, Whole Foods, places: Home Depot, Whole Foods, Crate & Barrel. … I try to beCrate & 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”

MBWMBWAA

Managing By Wandering Around/Managing By Wandering Around/HPHP

50%.50%.UnUn--scheduled.scheduled.

Source: Dov FrohmanSource: Dov Frohman

You = You = Your Your

calendarcalendar**

*The calendar *The calendar nevernever lies.lies.

Your calendar Your calendar knowsknows PreciselyPrecisely

what youwhat youreally care about.really care about.

DoDo youyou????????

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

‘To-don’t ’‘To-don’t ’

List !”List !”

Don’t > Don’t > Do*Do*

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

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

it is concentration. it is concentration. Effective executives do Effective executives do

first things first … first things first … and and thetheyy do one thin do one thingg at a timeat a time.”.” —Peter Drucker—Peter Drucker

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

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

Gandhi

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

—David D’Alessandro, Career Warfare

Monday/Tomorrow:Monday/Tomorrow: “Script” “Script” your first 5-10 your first 5-10

“plays.” “plays.” (I.e., carefully (I.e., carefully

launch the day/week in a launch the day/week in a purposefulpurposeful fashion.)fashion.)

““Nothing is Nothing is so contagious so contagious

as as enthusiasm.”enthusiasm.”

—Samuel Taylor Coleridge—Samuel Taylor Coleridge

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

enthusiasm.”enthusiasm.”

—Ben Zander—Ben Zander

““Excellence …Excellence … can be obtained if you:can be obtained if you:

... ... carecare more than others think more than others think is wise;is wise; ... ... riskrisk more than others think more than others think is safe;is safe; ... ... dreamdream more than others think more than others think is practical;is practical; ... ... exexppectect more than others think more than others think is possible.”is possible.”

Source: Anon.Source: Anon. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM) (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)

H3H3



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

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

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

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

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

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

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

““A Nice Place to WorkA Nice Place to Work

““Some of our people spend their Some of our people spend their entire working lives in our agency. entire working lives in our agency. We do our damnedest to make it a We do our damnedest to make it a happyhappy experience. experience. I put this first, I put this first,

believinbelievingg that su that supperior service to our erior service to our clients, and clients, and pprofits for our rofits for our

stockholders, destockholders, deppend on itend on it. …”. …”

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

““The path to a The path to a hostmanshihostmanshipp culture paradoxically does culture paradoxically does

not go through the guest. In fact it wouldn’t be totally wrong to say that the guest not go through the guest. In fact it wouldn’t be totally wrong to say that the guest has nothing to do with it.has nothing to do with it. True hostmanship leaders focus on their employees. True hostmanship leaders focus on their employees.

What drives exceptionalism is finding the right people and getting them to love What drives exceptionalism is finding the right people and getting them to love their work and see it as a passion. ... The guest comes into the picture only when their work and see it as a passion. ... The guest comes into the picture only when

you are ready to ask, ‘you are ready to ask, ‘Would you prefer to stay at a hotel where the staff love their Would you prefer to stay at a hotel where the staff love their work or where management has made customers its highest priority?’”work or where management has made customers its highest priority?’” ““We went We went

throuthrouggh the hotel and made ah the hotel and made a ... ... ‘‘consideration consideration renovation.renovation.’’ Instead of redoinInstead of redoingg bathrooms, dinin bathrooms, dining g

rooms, and rooms, and gguest rooms, we uest rooms, we ggave emave empploloyyees new uniforms, bouees new uniforms, bougght flowers and ht flowers and

fruit, and chanfruit, and changged colors.ed colors. Our focus was Our focus was totalltotallyy on the staff. on the staff. TheTheyy

were the ones we wanted to were the ones we wanted to make hamake happy.ppy. We wanted them to wake up everWe wanted them to wake up everyy mornin morningg

excited about aexcited about a new danew dayy at work.” at work.”

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

““consideration consideration renovation”renovation”

““Ladies and Ladies and gentlemen serving gentlemen serving

ladies and ladies and gentlemen.”gentlemen.”

——Ritz Carlton credoRitz Carlton credo

The Dream ManagerThe Dream Manager —Matthew Kelly—Matthew Kelly

“An organization can only become the-best-version-of-itself to “An organization can only become the-best-version-of-itself to the extent that the people who drive that organization are the extent that the people who drive that organization are striving to become better-versions-of-themselves.” “A striving to become better-versions-of-themselves.” “A company’s purpose is to become the-best-version-of-itself. The company’s purpose is to become the-best-version-of-itself. The

question is:question is: What is an emploWhat is an employyee’s ee’s ppururppose? ose? Most would saMost would sayy, ‘to hel, ‘to helpp the com the comppananyy achieve its achieve its ppururppose’—but theose’—but theyy would be would be wronwrong. g. That is certainlThat is certainlyy part of the part of the emploemployyee’s role, but an emploee’s role, but an employyee’s ee’s pprimarrimaryy ppururppose is to become the-best-ose is to become the-best-version-of-himself or herselfversion-of-himself or herself.. … When a … When a company forgets that it exists to serve customers, it quickly company forgets that it exists to serve customers, it quickly

goes out of business.goes out of business. Our emOur empploloyyees are our ees are our first customers, and our most imfirst customers, and our most impportant ortant customerscustomers.”.”

““Our employees Our employees are our first are our first

customers, and customers, and our most our most important important

customers.”customers.”

Vineet NayarVineet NayarCEO/HCL TechnologiesCEO/HCL Technologies

Zabar’sZabar’s Parking Parking GarageGarage**

*Retail Superstars: Inside the 25 Best Independent Stores in America, *Retail Superstars: Inside the 25 Best Independent Stores in America, by George Whalinby George Whalin

List 5 (10?) (2?) List 5 (10?) (2?) “Zabar’s garage” “Zabar’s garage”

equivalentsequivalents in your in your

organization. …organization. …

““We are a We are a ‘‘LiLiffee

SuccessSuccess’ ’ Company.”Company.”

Dave Liniger, founder, RE/MAX

““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 they’ve ever been they’ve ever been

before,before, more than they’ve more than they’ve dreamed of beingdreamed of being.”.”

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

Brand Brand = =

Talent.Talent.

Our Mission

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

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

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

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

WPP

… … no less than no less than CathedralsCathedrals

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

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

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

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

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

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

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

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

Hence, our job as leaders—the Hence, our job as leaders—the alpha and the omega and alpha and the omega and everything in between—is everything in between—is

abetting the sustained growth abetting the sustained growth and success and engagement and success and engagement

and enthusiasm and and enthusiasm and commitment to Excellence of commitment to Excellence of

those, one at a time, who those, one at a time, who directly or indirectly serve the directly or indirectly serve the

ultimate customer.ultimate customer.

LeadershipLeadership is a sacred is a sacred

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

7 Steps to Sustaining Success7 Steps to Sustaining Success

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

7 Steps to Sustaining 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.)

““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?”

2/year 2/year = =

legacy.legacy.

Promotion DecisionsPromotion Decisions

“life and “life and death death

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

““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 on rather than on

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

““The key difference between checkers and The key difference between checkers and chess is that in checkers the pieces all move chess is that in checkers the pieces all move

the same way, whereas in chess all the pieces the same way, whereas in chess all the pieces

move differently. …move differently. … Discover what Discover what is unique about each is unique about each person and capitalize person and capitalize

on iton it.”.” —Marcus Buckingham, —Marcus Buckingham, The One Thing You Need to The One Thing You Need to

KnowKnow

Andrew Carnegie’s Tombstone Inscription …Andrew Carnegie’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 leaders of Great The leaders of Great Groups Groups lovelove talent talent and and

know where to find it.know where to find it. They They revelrevel in the talent in the talent

of others.”of others.”

—Warren Bennis & Patricia Ward Biederman, —Warren Bennis & Patricia Ward Biederman, Organizing GeniusOrganizing Genius

PARC’s Bob Taylor:

“Connoisseu“Connoisseur r

of Talent”of Talent”

What will you do What will you do in the in the nextnext 9090 daysdays

to begin the to begin the Systematic Systematic journey journey to “Connoisseur of to “Connoisseur of

talent”??talent”??

53 = 53 = 5353

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

should should notnot be be standardized. standardized.

EverEver..

100 Days per 100 Days per annum:annum:

“Name one thing “Name one thing that’s more that’s more important?”important?”

What will you do What will you do in the in the nextnext 9090

daysdays to begin the to begin the Systematic Systematic

journey to “all journey to “all pro” At pro” At

EvaluationsEvaluations?? ??

““Development can help great Development can help great

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

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

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

GoogleGoogle

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

asasppect of ect of businessbusiness and yet and yet

remains woefully remains woefully misunderstood.”misunderstood.”

Source: Source: Wall Street JournalWall Street Journal, 10.29.08,, 10.29.08, review ofreview of Who: The A Method for Hiring, Who: The A Method for Hiring,

Geoff Smart and Randy StreetGeoff Smart and Randy Street

““I can’t tell I can’t tell yyou how manou how manyy times we times we ppassed uassed upp hotshots for hotshots for gguuyys we s we thouthougght were better ht were better ppeoeopplele, and , and

watched our guys do a lot better than watched our guys do a lot better than the big names, not just in the the big names, not just in the

classroom, but on the field—and, classroom, but on the field—and, naturally, after they graduated, too. naturally, after they graduated, too.

Again and again, the blue chips faded Again and again, the blue chips faded out, and our little up-and-comers out, and our little up-and-comers clawed their way to all-conference clawed their way to all-conference

and All-America teams.”and All-America teams.” —Bo Schembechler —Bo Schembechler (and John Bacon), “Recruit for Character,” (and John Bacon), “Recruit for Character,”

Bo’s Lasting LessonsBo’s Lasting Lessons

What will you do What will you do in the in the nextnext 9090 daysdays to begin to begin the journey to the journey to “all Star” hire-“all Star” hire-

er?? er??

TP: TP: “How to throw

$500,000 into

the sea in one easy

lesson!!”

< CAPEX< CAPEX> People!> People!

2X2XSource: Container Store/Goal: increase average sale per shopperSource: Container Store/Goal: increase average sale per shopper

Exhibitions of Exhibitions of bravery: All hail bravery: All hail the … the … TRAININGTRAINING … department.… department.

No company ever No company ever Expended too Expended too

much much thoughtthought//EffortEffort/ / $$$$$$$$ on training! on training!**

**ESPECIALLYESPECIALLY … small company … small company

Meanwhile in Meanwhile in Rochester NY …Rochester NY …

WegmansWegmans

..

Luiza Helena, Luiza Helena, Magazine LuizaMagazine Luiza

““The The fourfour most most imimpportantortant 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 do “What do youyou

think?”think?”

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

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

skill!]skill!]

What do managers do for a living?What do managers do 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 meaning that we have studied—like a professional mastering her musical craft—“helping”? (Not have studied—like a professional mastering her musical craft—“helping”? (Not many, I’d judge.)many, I’d 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.”*

(*Love the idea that the employee is a (*Love the idea that the employee is a “Client”“Client” ! ! Words matter!! Read a quote from Words matter!! Read a quote from NFL player-turned lawyer-turned professional football coach, calling his players “my clients.”)NFL player-turned lawyer-turned professional football coach, calling his players “my clients.”)

Employee as Client! Employee as Client! ““Helping” is what we [leaders] “do” for a living!Helping” is what we [leaders] “do” for a living!STUDY/PRACTICE “helping” as you would neurosurgery!STUDY/PRACTICE “helping” as you would neurosurgery!(“Helping” (“Helping” isis your neurosurgery!) your neurosurgery!)

2%2% /98%/98%

““Be kind, for Be kind, for everyone you everyone you

meet is fighting a meet is fighting a great battle.”great battle.”

——Philo of AlexandriaPhilo of Alexandria

““Things don’t stay the same. You Things don’t stay the same. You have to understand that not only have to understand that not only your business situation changes, your business situation changes,

but the people you’re working with but the people you’re working with aren’t the same day to day. aren’t the same day to day.

Someone is sick. Someone is Someone is sick. Someone is having a wedding. having a wedding. You must You must ggauaugge e the mood, the thinkinthe mood, the thinkingg level of the level of the

team that dateam that day.”y.” —Coach K [Krzyzewski]—Coach K [Krzyzewski]

230 workdays 230 workdays == 230 230

“rosters”“rosters”

““What … What … PreciselyPrecisely … … Is Is youryour goal goal

for for youryour teamteam for … for … todaytoday?? ??

““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

distinguishes a superior distinguishes a superior leader.”leader.” —Edie Seashore (—Edie Seashore (Strategy + Strategy +

BusinessBusiness #45) #45)

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

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

climbs, the less accurate his self-

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

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

issues].”issues].”

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

Bottom line:Bottom line: Effectiveness Effectiveness at “people stuff” at “people stuff”

starts with starts with effectiveness at effectiveness at

““me stuff.”me stuff.”

H3.5H3.5

HAROLD H. HESITANTHAROLD H. HESITANT

B.A. M.S. Ph.D.B.A. M.S. Ph.D.1942 – 2011 1942 – 2011

HE WANTED TO DO SOME HE WANTED TO DO SOME

REALLY COOL STUFF REALLY COOL STUFF

BUT …BUT …

HIS BOSS WOULDN’T HIS BOSS WOULDN’T

LET HIM! LET HIM!

““BRAND BRAND YOU.”YOU.”

NO OPTION.NO OPTION.

Globalization1.0: Globalization1.0: Countries Countries globalizing globalizing (1492-1800)(1492-1800)

Globalization2.0: Globalization2.0: Companies Companies globalizing globalizing (1800-(1800-2000)2000)

Globalization3.0 Globalization3.0 (2000+)(2000+): : IndividualsIndividuals collaboratingcollaborating & competing globally & competing globally

Source: Tom Friedman/Source: Tom Friedman/The World Is FlatThe World Is Flat

““If there is nothing very If there is nothing very special about your work,special about your work, no no matter how hard you apply matter how hard you apply

yourself you won’t get yourself you won’t get noticed, and that increasingly noticed, and that increasingly

means you won’t get paid means you won’t get paid

much either.”much either.” —Michael Goldhaber, —Michael Goldhaber, WiredWired

DistinctDistinct or …or …

Extinct.Extinct.

““You are the You are the storyteller of your storyteller of your own life, and you own life, and you

can create your own can create your own

legend or not.”legend or not.” —Isabel

Allende

““To To BeBe somebody or to somebody or to

DoDo something”something”

BOYD: The Fighter Pilot Who Changed the Art of WarBOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) (Robert Coram)

““Knowledge becomes Knowledge becomes obsolete incredibly fast. obsolete incredibly fast.

The continuing The continuing professional professional

education of adults is education of adults is the No. 1 industry in the No. 1 industry in the next 30 yearsthe next 30 years … …

mostly on line.”mostly on line.” —Peter Drucker—Peter Drucker

““All human beings are All human beings are entrepreneursentrepreneurs.. When we were in When we were in

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

human history began . . . As human history began . . . As civilization came we suppressed it. civilization came we suppressed it.

We became labor because they We became labor because they stamped us, ‘You are labor.’ We stamped us, ‘You are labor.’ We

forgot that we are entrepreneurs.”forgot that we are entrepreneurs.” —Muhammad Yunus—Muhammad Yunus

Personal Personal “Brand Equity” Evaluation“Brand Equity” Evaluation

– My current Project is challenging me in the My current Project is challenging me in the these ways …these ways …

– New things I’ve learned in the last 90 days New things I’ve learned in the last 90 days include …include …

– I am known for [2 to 3 things]; next year at this I am known for [2 to 3 things]; next year at this time I’ll also be known for [1 more thing].time I’ll also be known for [1 more thing].

– My public “recognition program” My public “recognition program” consists of …consists of …

– Additions to my network in the last 90 days Additions to my network in the last 90 days include …include …

– My resume is My resume is discerniblydiscernibly differentdifferent from last year’s from last year’s

at this time as follows …at this time as follows …

H4H4



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

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

and appreciating heart.”and appreciating heart.”

—Henry Clay,American Statesman (1777-1852)

nonenone!!

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

nonenone of THE top 15 factors of THE top 15 factors

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

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

EmploEmployyee Satisfactionee Satisfaction

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

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

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

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

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

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

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

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

K = R = K = R = PP

Kindness = Repeat business = Profit.Kindness = Repeat business = Profit.

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 screwups.Apologizes with dispatch for screwups.““Over”-reacts to screwups of any magnitude.Over”-reacts to screwups 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.

““The deepest The deepest human need is human need is

the … the … need to be need to be aappppreciatedreciated.”.”

—William James—William James

Tomorrow: How many Tomorrow: How many times will you mange to times will you mange to blurt out, “Thank you”? blurt out, “Thank you”?

[Count ‘em!]

[[PracticePractice makes better!] [This is a makes better!] [This is a STRATEGIC skill!]skill!]

*appreciation is of the*appreciation is of the

utmost … utmost … strategicstrategic importance! importance!

*appreciation is a proper … *appreciation is a proper …

core core valuevalue ! !

*appreciation is … *appreciation is … trainabletrainable !!

*appreciation is a … *appreciation is a … professionprofession ! !

A CANDIDATE FOR THE “VALUES STATEMENT”:A CANDIDATE FOR THE “VALUES STATEMENT”:

““We habitually express We habitually express appreciation for one appreciation for one

another’s efforts—because another’s efforts—because we do in fact consciously we do in fact consciously

appreciate everyone’s appreciate everyone’s ‘ordinary’ ‘daily’ ‘ordinary’ ‘daily’

contributions, let alone the contributions, let alone the extraordinary ones.”extraordinary ones.”

““LadiesLadies and and ggentlemenentlemen serving serving

ladies and ladies and gentlemen.”gentlemen.”

——Ritz Carlton credoRitz Carlton credo

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

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

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

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

With a new and forthcoming policy on With a new and forthcoming policy on

apologies …apologies … Toro, the lawn mower Toro, the lawn mower folks, reduced the average folks, reduced the average

cost of settling a claim from cost of settling a claim from $$115,000115,000 in 1991 to $ in 1991 to $35,00035,000 in 2008—and the company in 2008—and the company

hasn’t been to trial in the last hasn’t been to trial in the last 15 years! 15 years!

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

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

enemenemy can do y can do more damage than the than the good done by good done by a a

hundredhundred friendsfriends.”.”

——Bill Walsh (from Bill Walsh (from The Score Takes Care of ItselfThe Score Takes Care of Itself))

““It’s a simple fact. It’s a simple fact. Many people will Many people will

remember a remember a ‘simple’ sleight‘simple’ sleight for decades! for decades!

Beware!”Beware!” —consumer goods exec—consumer goods exec

““One of the secrets of One of the secrets of a long and fruitful life a long and fruitful life

is to forgive everybody is to forgive everybody of everything every of everything every night right before night right before

going to bed.”going to bed.” —Bernard Baruch—Bernard Baruch

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

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

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

COMPLETE RUPTURE.COMPLETE RUPTURE.**

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

THE PROBLEM IS THE PROBLEM IS RARELY/NEVER THE RARELY/NEVER 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:

5X*5X**Hence: Service *Hence: Service >>>> Sales Sales (!!)(!!)

““Will you guys Will you guys please come up please come up front. Will you front. Will you

guys please move guys please move to the rear.”to the rear.”

Service > Service > SalesSales

Sales > Sales > MarketingMarketing

H5H5



2,000,0002,000,000

7X.7X. 7:30A-8:00P. 7:30A-8:00P.

F12A.F12A.7:30AM = 7:30AM = 7:15AM.7:15AM.

8:00PM = 8:00PM = 8:15PM.8:15PM.

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

Carl’sCarl’s Street- Street-

Sweeper Sweeper

<TG<TGWWandand … …

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

TGRTGRss..Manage ‘em.Manage ‘em.

Measure Measure ‘em. ‘em.

Little =Little =

BIBIGG

Big carts =Big carts =

1.5X1.5XSource: WalmartSource: Walmart

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

$B$BSource: PepsiCoSource: PepsiCo

““Broken windows”: Clean Broken windows”: Clean the streets, fix the broken the streets, fix the broken windows, ticket the open-windows, ticket the open-beer-can holders, etc, etcbeer-can holders, etc, etc

== Sense of orderSense of order = Crime = Crime waway downy down

H6H6



And in And in Milwaukee …Milwaukee …

Experience: “Rebel Lifestyle!”

“What we sell is the “What we sell is the ability for a 43-year-old ability for a 43-year-old accountant to dress in accountant to dress in

black leather, ride black leather, ride through small towns and through small towns and

have people be afraidhave people be afraid of him.” of him.”

Source: HarleyHarley exec, quoted in Results-Based Leadership

““ExperiencesExperiences are as distinct are as distinct from servicesfrom services

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

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

““At our core, we’re a At our core, we’re a coffee company, but the coffee company, but the opportunity we have to opportunity we have to

extend the brand is extend the brand is

beyond coffee;beyond coffee; it’s it’s entertainmententertainment.”.”

—Howard Schultz (“The Starbucks Aesthetic,” NYT)

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

Words!Words!

—— Magician of Magical Moments Magician of Magical Moments—— Maestro of Moments of Truth Maestro of Moments of Truth—— Recruiter of Raving Fans Recruiter of Raving Fans—— Impresario of First Impressions Impresario of First Impressions—Chief of Last Impressions —Chief of Last Impressions —— Wizard of WOW!Wizard of WOW!—— Captain of Brilliant Comebacks Captain of Brilliant Comebacks—— Director of Electronic Customer Director of Electronic Customer ExperiencesExperiences—— Conductor of Customer Intimacy Conductor of Customer Intimacy—— King of Customer Community King of Customer Community—— Queen of Customer Retention Queen of Customer Retention—— CEO of Ownership Experience CEO of Ownership Experience—— Managing Director of After-sales Managing Director of After-sales ExperienceExperience

The Value-Added LadderThe Value-Added Ladder

Spellbinding Spellbinding ExperiencesExperiences

ServicesServicesGoodsGoods

Raw Materials Raw Materials

H7H7



All EAll Eqqual ual ExceExcepptt … …

“At Sony we assume that all “At Sony we assume that all products of our competitors products of our competitors

have basically the same have basically the same technology, price, performance technology, price, performance

and features.and features. DesiDesiggn is the n is the onlonlyy thin thingg that that

differentiates one differentiates one pproduct from another roduct from another in the marketin the marketpplacelace.”.” ——

NorioNorio OhgaOhga

““Design is Design is

treated like treated like a religiona religion at at

BMW.”BMW.” —Fortune—Fortune

““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 is the pthe princirincippalal

differencedifference between between lovelove

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

Design is …Design is …

nevernever neutralneutral..

CCDDOO**Chief *Chief DesignDesign 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

““One bank is currently One bank is currently

claiming to …claiming to … ‘leverage its global

footprint to provide effective

financial solutions for its customers

by providing a gateway to

diverse markets.’”——Charles HandyCharles Handy

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

that it isthat it is there to …there to … ‘‘helhelpp its customers its customers wherever thewherever theyy

are’are’.”.” —Charles Handy—Charles Handy

CGRO***CGRO/ Chief Grunge Removal Officer(CDC/ Chief of De-Complexification)(CAO/ Chief Anti-systems Officer)

(CBSEO/ Chief BS Eradication Officer)

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

Simplicity.Simplicity.

H8H8



““Forget Forget ChinaChina, , IndiaIndia and the and the InternetInternet: :

Economic Growth Is Economic Growth Is Driven by Driven by

WomenWomen.”.”

Source: Headline, Economist

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

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

$28 trillion in the next five $28 trillion in the next five yyearsears. Their $13 trillion in total yearly earnings could reach $18 . Their $13 trillion in total yearly earnings could reach $18

trillion in the same period.trillion in the same period. In aggregate, women represent a growth market bigger than China and In aggregate, women represent a growth market bigger than China and India combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate India combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer. And yet many companies do just that—even ones that are confidant that they have a winning the female consumer. And yet many companies do just that—even ones that are confidant that they have a winning

strategy when it comes to women. Consider Dell’s …”strategy when it comes to women. Consider Dell’s …”

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

““One thing is certain: Women’s rise to power, which is One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no in all domains and at all levels of society. Women are no

longer content to provide efficient labor or to be longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to consumers with rising budgets and more autonomy to spend. … This is just the beginning. The phenomenon spend. … This is just the beginning. The phenomenon

will only grow as girls prove to be more successful than will only grow as girls prove to be more successful than

boys in the school system.boys in the school system. For a number For a number of observers, we have of observers, we have

already entered the age of already entered the age of ‘‘womenomics,’ the economy womenomics,’ the economy

as thought out and as thought out and practiced by a womanpracticed by a woman.”.” —Aude Zieseniss de —Aude Zieseniss de

Thuin, Women’s Forum for the Economy and SocietyThuin, Women’s Forum for the Economy and Society

““Women areWomen are thethe majority majority

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

Women as Decision Makers/Various sourcesWomen as Decision Makers/Various sources

Home Furnishings … Home Furnishings … 94%94%Vacations … Vacations … 92%92% (Adventure Travel … 70%/ $55B travel equipment)(Adventure Travel … 70%/ $55B travel equipment)

Houses … Houses … 91%91%D.I.Y. D.I.Y. (major “home projects”)(major “home projects”) … … 80%80%

Consumer Electronics … Consumer Electronics … 51%51% (66% home computers)(66% home computers)

Cars … Cars … 68%68% (influence (influence 90%90%))

AllAll consumerconsumer p purchasesurchases … … 83%83% **

Bank Account … Bank Account … 89%89%Household investment decisions … Household investment decisions … 67%67%Small business loans/biz starts … Small business loans/biz starts … 70%70%

Health Care … Health Care … 80%80%*In the USA women hold *In the USA women hold >50%>50% managerial positions including managerial positions including >50%>50% purchasing officer purchasing officer positions positions; hence women also make the majority of ; hence women also make the majority of commercialcommercial purchasing decisions. purchasing decisions.

““The The most most significant variablesignificant variable

inin everyevery sales situation is sales situation is

thethe gendergender of the buyer, of the buyer, and more importantly, how and more importantly, how

the salesperson the salesperson communicates to the communicates to the

buyer’s gender.”buyer’s gender.” —Jeffery Tobias Halter, Selling to Men, Selling to Women

The Perfect Answer

Jill and Jack buy slacks in black…

Cases! Cases! Cases!Cases! Cases! Cases!

McDonald’sMcDonald’s (“mom-centered” to F as(“mom-centered” to F as

“majority consumer”; not via kids) “majority consumer”; not via kids)

Home DepotHome Depot (“Do it [everything!] Herself”)(“Do it [everything!] Herself”)

P&GP&G (more than F as “house cleaner”) (more than F as “house cleaner”)

DeBeersDeBeers (“right-hand rings”/$4B)(“right-hand rings”/$4B)

AXA FinancialAXA FinancialKodakKodak (women = “emotional centers of the household”)(women = “emotional centers of the household”)

NikeNike (> jock endorsements; new def sports; majority consumer)(> jock endorsements; new def sports; majority consumer)

AvonAvonBratzBratz (young girls want “friends,” not a blond stereotype)(young girls want “friends,” not a blond stereotype)

Source: Source: Fara Warner/Fara Warner/The Power of the The Power of the PursePurse

“We simply had

stopped being

relevant to women.”

—Kay Napier, SVP Marketing, McDonald’s (Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s

Discovers the Woman Inside the Mom”)

““McDonald’s shifted its strategy McDonald’s shifted its strategy toward women from one of toward women from one of

‘minority’ consumers who served ‘minority’ consumers who served as a conduit to the important as a conduit to the important

children’s market to one in which children’s market to one in which women are the company’s women are the company’s

majority consumers and the main majority consumers and the main driver behind menu and driver behind menu and

promotion innovationpromotion innovation.”.” —Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom”

Lowe’sLowe’s!!

““Women don’t ‘buy’ Women don’t ‘buy’

brands. brands. They They ‘‘join’ join’

themthem.”.”—Faith Popcorn, —Faith Popcorn, EVEolutionEVEolution

2.62.6 vs.vs.

2121

Purchasing Patterns

WomenWomen:: Harder to convince; Harder to convince; more loyal once convinced.more loyal once convinced.

MenMen:: Snap decision; fickle. Snap decision; fickle.

Source: Martha Barletta, Marketing to Women

H8.5H8.5

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find New Studies find

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

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

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

rank] workers; rank] workers; favor interactive-favor interactive-collaborative leadership style collaborative leadership style

[empowerment beats top-down decision [empowerment beats top-down decision making];making]; sustain fruitful collaborations; sustain fruitful collaborations;

comfortable with sharing information; comfortable with sharing information; see see redistribution of power as victory, not redistribution of power as victory, not

surrendersurrender; favor multi-dimensional ; favor multi-dimensional feedback; feedback; value technical & interpersonal value technical & interpersonal

skills, individual & group contributions skills, individual & group contributions equally;equally; readily accept ambiguity; readily accept ambiguity; honor honor intuition as well as pure “rationality”;intuition as well as pure “rationality”; inherently flexible; inherently flexible; appreciate cultural appreciate cultural

diversitydiversity..

Source: Source: Judy B. Rosener, Judy B. Rosener, America’s Competitive Secret: Women ManagersAmerica’s Competitive Secret: Women Managers

““Power Women 100”/Power Women 100”/ForbesForbes 10.25.10 10.25.1026 female CEOs of Public Companies:26 female CEOs of Public Companies:

Vs. Men/Market: Vs. Men/Market: +28%+28% ** (*Post-appointment) (*Post-appointment)

Vs. Industry: Vs. Industry: +15%+15%

““TAKE THIS QUICK QUIZTAKE THIS QUICK QUIZ: Who manages more Who manages more things at once?things at once? Who puts more effort into their Who puts more effort into their appearance?appearance? Who usually takes care of the Who usually takes care of the

details?details? Who finds it easier to meet new Who finds it easier to meet new people?people? Who asks more questions in a Who asks more questions in a

conversation?conversation? Who is a better listener?Who is a better listener? Who Who has more interest in communication skills?has more interest in communication skills? Who is more inclined to get involved?Who is more inclined to get involved? Who Who encourages harmony and agreement?encourages harmony and agreement? Who Who

has better intuition?has better intuition? Who works with a longer Who works with a longer ‘to do’ list?‘to do’ list? Who enjoys a recap to the day’s Who enjoys a recap to the day’s events?events? Who is better at keeping in touchWho is better at keeping in touch

with others?”with others?”

Source/from the back cover: SellinSellingg Is a Woman’s Game Is a Woman’s Game:: 15 Powerful Reasons Wh15 Powerful Reasons Whyy Women Can Outsell Women Can Outsell

MenMen, Nicki Jo, Nicki Joyy & Susan Kane-Benson & Susan Kane-Benson

““Women Beat Women Beat Men at Art of Men at Art of

Investing”Investing”Source: Headline, Source: Headline, Miami HeraldMiami Herald, reporting on a study by Profs. Terrance Odean and , reporting on a study by Profs. Terrance Odean and

Brad Barber, UC DavisBrad Barber, UC Davis (Cause: Guys are “in and out” of stocks more often; women choose carefully

and hold on for the long term)

**Women Women decidedecide..**Women Women savesave..**Women Women ssppendend..**Women Women rulerule..

*Women *Women decidedecide*Women *Women savesave*Women *Women ssppendend*Women *Women rulerule

**In the In the develodeveloppeded world world**In the In the develodeveloppining worldg world**The trend is The trend is acceleratinacceleratingg

Not Just America …Not Just America …

“Boys Falling “Boys Falling SevenSeven Years Years Behind Girls Behind Girls

at GCSE Level”at GCSE Level” —headline, —headline, Weekly TelegraphWeekly Telegraph, UK, 10.25.06, UK, 10.25.06

““Girls are Girls are the new the new boys.”boys.”

Source: Source: The Daily MailThe Daily Mail, 0425.2007,“Why today’s women want a girl”, 0425.2007,“Why today’s women want a girl”

H9H9



“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 … …

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

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

obvious: Buy a very Buy a very largelarge

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

Fail: Evolution, Extinction and Economics

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

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

TheTheyy found that found that nonenone ofof

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

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

—Financial Times—Financial Times

““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

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

#2 China#2 China

#1 #1 GermanyGermany

MittELstandMittELstand**

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

Larry JaneskyLarry Janesky Rocks … Rocks …

*Basement Systems Inc.*Basement Systems Inc.

(Seymour CT) (Seymour CT)

**Dry Basement ScienceDry Basement Science (115,000 copies!) (115,000 copies!)

*1990: $0; 2003: $13M; *1990: $0; 2003: $13M; 2008: 2008:

$62,000,000$62,000,000

The Red The Red Carpet Carpet StoreStore(Joel Resnick/Flemington NJ)(Joel Resnick/Flemington NJ)

““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

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

Independent Independent Stores in Stores in

AmericaAmerica —by George Whalin—by George Whalin

Hartville HardwareHartville HardwareHartville, Ohio, Hartville, Ohio, pop <2,500pop <2,500100,000 square feet100,000 square feet (plus catalog, (plus catalog, Web serve location) Web serve location)Family runFamily run“One of biggest and best tool merchants “One of biggest and best tool merchants in USA” in USA”Customers from 100s of miles awayCustomers from 100s of miles awayRenowned semi-annual tool sale (12,000Renowned semi-annual tool sale (12,000 transactions at recent incarnation) transactions at recent incarnation)Anchor for 110-independent shops @ Anchor for 110-independent shops @ Hartville MarketPlace Hartville MarketPlaceStaff are premier trainersStaff are premier trainersEtc.Etc.Etc.Etc.Source: Source: Retail Superstars: Inside the 25 Best Independent Stores in AmericaRetail Superstars: Inside the 25 Best Independent Stores in America, George Whalin, George Whalin

Jungle Jim’s International Market, Fairfield, Ohio:Jungle Jim’s International Market, Fairfield, Ohio: “An “An

adventure in adventure in ‘‘shoshoppppertainmentertainment,’,’ as as

Jungle Jim’s call it, begins in the parking lot Jungle Jim’s call it, begins in the parking lot and goes and goes on to on to 1,600 cheeses1,600 cheeses and, yes, and, yes, 1,400 varieties of hot 1,400 varieties of hot saucesauce —not to mention —not to mention 12,000 wines priced from $8 to 12,000 wines priced from $8 to $8,000$8,000 a bottle; all this is brought to you by a bottle; all this is brought to you by 4,000 4,000 vendors.vendors. Customers come from every corner of the Customers come from every corner of the globe.” globe.”

Bronner’s Christmas Wonderland, Frankenmuth, Bronner’s Christmas Wonderland, Frankenmuth, Michigan, pop 5,000:Michigan, pop 5,000: 98,000-square-foot98,000-square-foot “shop” “shop” features the likes of features the likes of 6,000 Christmas ornaments, 6,000 Christmas ornaments, 50,000 trims50,000 trims, and anything else you can name if it , and anything else you can name if it pertains to Christmas.pertains to Christmas.

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

Abt Electronics/Family/1936Abt Electronics/Family/1936

Insane competition (Chicagoland!)Insane competition (Chicagoland!)Campus/350K sq.ft./37 acres/$300M revenueCampus/350K sq.ft./37 acres/$300M revenueDesign Center (Classes on every-damn-thing, Design Center (Classes on every-damn-thing, etc.)etc.)“Destination” like Ikea (restaurant, atrium“Destination” like Ikea (restaurant, atrium with spectacular flowers, 7,500 gallon with spectacular flowers, 7,500 gallon aquarium, etc.) aquarium, etc.)In-house delivery teams (spiffy uniforms, etc.)In-house delivery teams (spiffy uniforms, etc.)Training/knowledge training!!!!!!!!Training/knowledge training!!!!!!!!“Yes.” Period. NO EXCUSES.“Yes.” Period. NO EXCUSES.“Over”-staffed“Over”-staffedMerchandising (boats displaying marineMerchandising (boats displaying marine electronics, cars with various systems, etc.) electronics, cars with various systems, etc.)Web (encyclopedic info re almost all stuff sold,Web (encyclopedic info re almost all stuff sold, blog, live chat with live experts “24/7”, etc.) blog, live chat with live experts “24/7”, etc.)Rating of services (Rating of services (>>>>>> Home Depot, Lowes, Home Depot, Lowes, etc.)etc.)

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

Lessons [for Everyone] from Lessons [for Everyone] from Retail Superstars!Retail Superstars!

1. Courses/Workshops/Demos/Engagement 1. Courses/Workshops/Demos/Engagement 2. Instructional guides/material/books2. Instructional guides/material/books3. Events & Events & Events …3. Events & Events & Events …4. Create “Community” of customers 4. Create “Community” of customers 5. Destination 5. Destination 6. Women-as-customer6. Women-as-customer7. Staff selection/training/retention (FANATICISM) 7. Staff selection/training/retention (FANATICISM) 8. Fanaticism/Execution 8. Fanaticism/Execution 9. Design/Atmospherics/Ambience 9. Design/Atmospherics/Ambience 10. Tableaus/Products-in-use 10. Tableaus/Products-in-use 11. Flow/starts & finishes (Disney-like)11. Flow/starts & finishes (Disney-like)12. 100% orchestrated experience/focus: “Moments of 12. 100% orchestrated experience/focus: “Moments of

truth” truth” 13. Constant experimentation/Pursue Little BIG Things 13. Constant experimentation/Pursue Little BIG Things 14. Social Media/Ongoing conversation with customers 14. Social Media/Ongoing conversation with customers 15. Community star 15. Community star 16. Aim high16. Aim high17. PASSION17. PASSION

YOU YOU CAN CAN

HOLD HOLD IT.IT.

Billboard …Billboard …

ONLY 262 MILES TO ONLY 262 MILES TO BUC-EE’SBUC-EE’S

YOU CAN HOLD IT.*YOU CAN HOLD IT.*

*“If I weren’t already married, I’d have my wedding*“If I weren’t already married, I’d have my wedding there.” there.” —Dallas Morning News Metro—Dallas Morning News Metro blogger blogger

H10H10



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)

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

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

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

studying logs, but you have to drill.”

Source: The Hunters, by John Masters, wildly successful Canadian Oil & Gas wildcatter

11/45/45

In Search of ExcellenceIn Search of Excellence /1982: /1982: The Bedrock “Eight Basics”The Bedrock “Eight Basics”

1. 1. A Bias for ActionA Bias for Action2. Close to the Customer2. Close to the Customer3. Autonomy and Entrepreneurship3. Autonomy and Entrepreneurship4. Productivity Through People4. Productivity Through People5. Hands On, Value-Driven5. Hands On, Value-Driven6. Stick to the Knitting6. Stick to the Knitting7. Simple Form, Lean Staff7. Simple Form, Lean Staff8. Simultaneous Loose-Tight8. Simultaneous Loose-Tight Properties Properties

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

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

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

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

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

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

toto planplan——for monthsfor months.”.”

——Bloomberg by BloombergBloomberg by Bloomberg

Mickey Drexler/The Gap-J CrewMickey Drexler/The Gap-J Crew

****Bias for instant action/Towering impatience with in-actionBias for instant action/Towering impatience with in-action**Impatient but not brutal **Impatient but not brutal

****Relentless/Speed-of-light experimentation; more ASAP if works, drop if notRelentless/Speed-of-light experimentation; more ASAP if works, drop if not****Vibrates with energy (literally)Vibrates with energy (literally)****Always on the prowl—anywhere, everywhere—for ideasAlways on the prowl—anywhere, everywhere—for ideas**Lots of team-standing-around-making-instant-assessments-decisions—all contributing**Lots of team-standing-around-making-instant-assessments-decisions—all contributing**Likes working with women more than men because F more intuitive than M**Likes working with women more than men because F more intuitive than M**Dresses like the brand—at 66**Dresses like the brand—at 66

****Offense, not defenseOffense, not defense****Communicates all the time [removes fear of CEO presence]. EveryoneCommunicates all the time [removes fear of CEO presence]. Everyone, ,

including most junior, made part of the decision-making teamincluding most junior, made part of the decision-making team****Listens attentively regardless of age/seniorityListens attentively regardless of age/seniority**Obvious in his transparent respect for young employees**Obvious in his transparent respect for young employees

****Trusts intuition plus fanatic about the numbers Trusts intuition plus fanatic about the numbers **Expects everyone to know their numbers cold from memory**Expects everyone to know their numbers cold from memory**Always aware of “the business case”—as well as fashion-master**Always aware of “the business case”—as well as fashion-master**Aggressive pricing**Aggressive pricing

****MBWA/Managing By Wandering AroundMBWA/Managing By Wandering Around**Open with everyone, from youth to folks at Earnings Call**Open with everyone, from youth to folks at Earnings Call

****Constant customer contact-dialogue/React instantly to customer feedbackConstant customer contact-dialogue/React instantly to customer feedback****Willing to act (experiment) based on one datapointWilling to act (experiment) based on one datapoint**Engages with the most junior of his people**Engages with the most junior of his people**At 66, comfortably uses “hot” words like “Cool” “Wow”**At 66, comfortably uses “hot” words like “Cool” “Wow”

Source: Source: The New YorkerThe New Yorker/0920.10/0920.10

““ExperimenExperiment t

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

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

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

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

Read ItRead It

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

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

of Innovation of Innovation

““Fail.Fail. Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

““Fail. Fail Fail. Fail again. Fail again. Fail better.”better.”

—Samuel Beckett—Samuel Beckett

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

you must you must

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

Most Mistakes WinsMost Mistakes Wins))

““No man ever No man ever became great became great

except through except through many and great many and great

mistakes.”mistakes.” —William Gladstone—William Gladstone

(from (from Timeless WisdomTimeless Wisdom, compiled by Gary Fenchuk) , compiled by Gary Fenchuk)

““You miss You miss

100100%%

of the shots of the shots you never you never

take.”take.” —Wayne—Wayne GretzkyGretzky

BLAME NOBODY.BLAME NOBODY.EXPECT EXPECT NOTHING.NOTHING.DO SOMETHING.DO SOMETHING.

Source: Locker room sign posted by NFLSource: Locker room sign posted by NFL football coach Bill Parcellsfootball coach Bill Parcells

““It is It is notnot the the strongest of the strongest of the

species that survives, species that survives, nornor the most the most

intelligent, but intelligent, but the the one most one most responsive responsive

to changeto change.”.” —Charles Darwin

H11H11



““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

We We are are What What We Eat/WeWe Eat/We

AreAre the the companycompany we keepwe keep

Measure “StranMeasure “Stranggeness”/Portfolio Qualityeness”/Portfolio Quality

StaffStaffConsultantsConsultants

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

Innovation Alliance PartnersInnovation Alliance PartnersCustomersCustomers

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

Strategic Initiatives Strategic Initiatives Product Portfolio Product Portfolio (LineEx v. Leap)(LineEx v. Leap)

IS/IT ProjectsIS/IT ProjectsHQ LocationHQ LocationLunch MatesLunch Mates

LanguageLanguageBoardBoard

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’ ” ”

““[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 the least half the

timetime.. 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

CUSTOMERS:CUSTOMERS: “Future-defining “Future-defining customers may account customers may account

for only for only 2%2% to to 3%3% of your of your total, total, but they but they

represent a crucial represent a crucial window on the future.”window on the future.”

Adrian Slywotzky, Mercer ConsultantsAdrian Slywotzky, Mercer Consultants

Axiom:Axiom: Never use a Never use a vendor who is not in vendor who is not in

the the top quartiletop quartile (decile?) in their (decile?) in their industry on R&D industry on R&D

spending! spending!

““Don’t Don’t benchmark, benchmark,

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

not evenly distributed” —William Gibson

““d”iversityd”iversity

Can you pass the …Can you pass the …

“Squint “Squint test”?test”?

““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

“The The Bottleneck Bottleneck

……

“The Bottleneck The Bottleneck … Is at … Is at

the Top of the the Top of the Bottle”Bottle”

“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 … …

AtAt thethe totop!”p!”

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

H12H12



Zappos 10 Corporate ValuesZappos 10 Corporate Values

Deliver Deliver “WOW!”“WOW!” through through

service.service.Embrace and drive change.Embrace and drive change.Create fun and a little weirdness.Create fun and a little weirdness.Be adventurous, creative and open-minded.Be adventurous, creative and open-minded.Pursue growth and learning.Pursue growth and learning.Build open and honest relationships withBuild open and honest relationships with communication.communication.Build a positive team and family spirit.Build a positive team and family spirit.Do more with less.Do more with less.Be passionate and determined.Be passionate and determined.Be humble.Be humble.

Source: Source: Delivering HappinessDelivering Happiness, Tony Hsieh, CEO, Zappos.com, Tony Hsieh, CEO, Zappos.com

““Insanely Great”Insanely Great”Steve JobsSteve Jobs

“Radically thrilling” “Radically thrilling” BMW

““Astonish me!”Astonish me!” (Sergei Diaghlev)

“Build something great!”“Build something great!” (Hiroshi Yamauchi)

“Make it immortal!”“Make it immortal!” (David Ogilvy).

))

““EverEveryy project we undertake project we undertake

starts with the same question :starts with the same question :

‘‘How can we do How can we do what has never what has never

been done been done bebefforeore?’”?’”

—Stuart Hornery, Lend Lease—Stuart Hornery, Lend Lease

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

future generations future generations will take us for will take us for

lunaticslunatics.”.” —the church hierarchs at Seville—the church hierarchs at Seville

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!!

““You can’t behave You can’t behave in a calm, rational in a calm, rational manner. You’ve got manner. You’ve got to be out there on to be out there on the the lunaticlunatic frinfringgee.”.”

— Jack Welch— Jack Welch

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

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

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

14,00014,00020,00020,000

3030

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

3030/Craigslist/Craigslist

Summary:Summary: The Moral Basis ForThe Moral Basis For & societal Role of & societal Role of Enterprise Enterprise

Really first things Really first things before first things before first things

H15 (The Theory ofH15 (The Theory of Everything) Everything)

Summary:Summary: The Moral Basis The Moral Basis ForFor & societal Role & societal Role ofof Enterprise Enterprise

Organizations Organizations existexist to to serveserve. .

Period.Period.

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

Summary:Summary: Really first things Really first things before first before first thingsthings

First Things Before First Things:First Things Before First Things: Core Values/Surpassing Business Assets/ Core Values/Surpassing Business Assets/ Sustainable Competitive Advantages Sustainable Competitive Advantages

1. 1. EXCELLENCE … First-line managementEXCELLENCE … First-line management cadre as engine of cadre as engine of enterpriseenterprise performance! performance!

2. 2. EXCELLENCE … Value-added opportunity #1EXCELLENCE … Value-added opportunity #1 through seamless through seamless cross-functional integration! cross-functional integration!

3. 3. EXCELLENCE … “Strategic” listening asEXCELLENCE … “Strategic” listening as peerless enterprise peerless enterprise differentiator! differentiator!

4.4. EXCELLENCE … Seizing the stupendous EXCELLENCE … Seizing the stupendous aging market opportunity! aging market opportunity!

Summary:Summary: 12H (The Theory of12H (The Theory of Everything)Everything)

The 12H Theory of EverythingThe 12H Theory of Everything

*Conrad Hilton/*Conrad Hilton/Sweat the details!/EXECUTION Sweat the details!/EXECUTION isis Strategy! Strategy!*Howard Schultz/*Howard Schultz/MBWA!!!!/Best LISTENER wins!MBWA!!!!/Best LISTENER wins!*Herb Kelleher/*Herb Kelleher/It’s always all about the It’s always all about the PEOPLE!!!!!!!!!!!!!!!!!!!!PEOPLE!!!!!!!!!!!!!!!!!!!!*Henry Clay/*Henry Clay/Big payoff from SMALL COURTESIES!Big payoff from SMALL COURTESIES!*Vernon Hill/*Vernon Hill/“TGRs”! [Things Gone RIGHT]/Little BIG “TGRs”! [Things Gone RIGHT]/Little BIG Things!Things!*Harley Davidson/*Harley Davidson/EXPERIENCES to die for!/Feel the LOVE!EXPERIENCES to die for!/Feel the LOVE!*Charles Handy/*Charles Handy/Everything is DESIGN!Everything is DESIGN!*Heather Schultz/*Heather Schultz/WOMEN buy!/WOMEN roar!/WOMEN rule!WOMEN buy!/WOMEN roar!/WOMEN rule!*Hartville Hardware/*Hartville Hardware/MONOPLY through EXCELLENCE!MONOPLY through EXCELLENCE!*H. Ross Perot/*H. Ross Perot/Most TRIES & SCREWUPS are alpha & Most TRIES & SCREWUPS are alpha & omega!omega!*Gary Hamel/*Gary Hamel/You are who you HANG OUT with! You are who you HANG OUT with! *Tony Hsieh/*Tony Hsieh/WOW!/Radically thrilling!/Insanely great!WOW!/Radically thrilling!/Insanely great!

““Excellence …Excellence … can be obtained if you:can be obtained if you:

... ... carecare more than others think more than others think is wise;is wise; ... ... riskrisk more than others think more than others think is safe;is safe; ... ... dreamdream more than others think more than others think is practical;is practical; ... ... exexppectect more than others think more than others think is possible.”is possible.”

Source: Anon.Source: Anon. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM) (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)

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Excellence: The 12H “Theory of Everything” BNZ /A CONVERSATION WITH TOM PETERS

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