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Tom Peters Excellence: The 14H “Theory of Everything” “Theory of Everything” National Business Growth Summit/Workshop National Business Growth Summit/Workshop.

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Presentation on theme: "Tom Peters Excellence: The 14H “Theory of Everything” “Theory of Everything” National Business Growth Summit/Workshop National Business Growth Summit/Workshop."— Presentation transcript:

1 Tom Peters Excellence: The 14H “Theory of Everything” “Theory of Everything” National Business Growth Summit/Workshop National Business Growth Summit/Workshop 16 February 2011/Sydney Convention Center

2 The Moral Basis For & societal Role of Enterprise. & societal Role of Enterprise.

3 “Business has to give people enriching, rewarding lives … or it's simply not worth doing.” —Richard Branson

4 Organizations exist to serve. Period. Leaders live to serve. Period. serve. Period.

5 “It is not enough for an agency to be respected for its professional competence. Indeed, there isn’t much be respected for its professional competence. Indeed, there isn’t much to choose between the competence to choose between the competence of big agencies. of big agencies. “What so often makes the difference is the character of the men and women who represent the agency at the top level, with clients and the business community. “If they are respected as admirable people, the agency gets business— whether from present clients or prospective ones.” —David Ogilvy

6 “I can’t tell you how many times we passed up hotshots for guys we thought were better people, and watched our guys do a lot better than the big names, not just in the classroom, but on the field—and, naturally, after they graduated, too. Again and again, the blue chips faded out, and our little up-and-comers clawed their way to all-conference and All-America teams.” —Bo Schembechler (and John Bacon), “Recruit for Character,” Bo’s Lasting Lessons

7 Why in the World did you go to Siberia? go to Siberia?

8 Enterprise* ** (*at its best): An emotional, vital, innovative, joyful, creative, entrepreneurial endeavor that elicits maximum concerted human concerted human potential in the wholehearted service of others **Employees, Customers, Suppliers, Communities, Owners, Temporary partners potential in the wholehearted service of others.** **Employees, Customers, Suppliers, Communities, Owners, Temporary partners

9 Excellence1982: The Bedrock “Eight Basics” Excellence1982: The Bedrock “Eight Basics” 1. A Bias for Action 2. Close to the Customer 3. Autonomy and Entrepreneurship 4. Productivity Through People 5. Hands On, Value-Driven 6. Stick to the Knitting 7. Simple Form, Lean Staff 8. Simultaneous Loose-Tight Properties” Properties”

10 The Memories That Matter.

11 The Memories That Matter The Memories That Matter The people you developed who went on to stellar accomplishments inside or outside stellar accomplishments inside or outside the company. the company. The (no more than) two or three people you developed who went on to create stellar institutions of their own. create stellar institutions of their own. The longshots (people with “a certain something”) you bet on who surprised themselves—and your peers. surprised themselves—and your peers. The people of all stripes who 2/5/10/20 years later say “You made a difference in my life,” later say “You made a difference in my life,” “Your belief in me changed everything.” “Your belief in me changed everything.” The sort of/character of people you hired in general. (And 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 that still make you smile and which fundamentally changed the way still 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 to The supercharged camaraderie of a handful of Great Teams aiming to “change the world.” “change the world.”

12 The Memories That Matter The Memories That Matter Belly laughs at some of the stupid-insane things you and your mates tried. tried. Less than a closet full of “I should have …” A frighteningly consistent record of having invariably said, “Go for it!” invariably said, “Go for it!” Not intervening in the face of considerable loss—recognizing that to develop top talent means tolerating failures and allowing the develop top talent means tolerating failures and allowing the person who screwed up to work their own way through and out of person 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. Demanding … CIVILITY … regardless of circumstances. Turning around one or two or so truly dreadful situations—and watching almost everyone involved rise to the occasion (often to watching almost everyone involved rise to the occasion (often to their own surprise) and acquire a renewed sense of purpose in the their own surprise) and acquire a renewed sense of purpose in the process. process. Leaving something behind of demonstrable-lasting worth. (On short as well as long assignments.) well as long assignments.)

13 The Memories That Matter The Memories That Matter Having almost always (99% of the time) put “Quality” and “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 have “done more”—but to have done so would have compromised your and “done more”—but to have done so would have compromised your and your team’s character and integrity. your team’s character and integrity. A sense of time well and honorably spent. The 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 set the tone—especially in difficult situations. the tone—especially in difficult situations. Never (rarely) let your external expression of enthusiasm/ determination flag—the rougher the times, the more your expressed determination flag—the rougher the times, the more your expressed energy and bedrock optimism and sense of humor showed. energy and bedrock optimism and sense of humor showed. The respect of your peers. A stoic unwillingness to badmouth others—even in private.

14 The Memories That Matter The Memories That Matter An invariant creed: When something goes amiss, “The buck stops with me”; when something goes right, it was their doing, not yours. me”; when something goes right, it was their doing, not yours. A 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- 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 others 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 are inconsistent with your “certain hypotheses.” inconsistent with your “certain hypotheses.” Humility in the face of others, at every level, who know more than you about “the way who know more than you about “the way things really are.” things really are.” Bit your tongue on a thousand occasions—and listened, really really listened. (And been constantly delighted when, as a result, you really listened. (And been constantly delighted when, as a result, you invariably learned something new and invariably increased your invariably learned something new and invariably increased your connection with the speaker.) connection with the speaker.)

15 The Memories That Matter The Memories That Matter Unalloyed pleasure in being informed of the fallaciousness of your beliefs by someone 15 years your junior and several rungs below you beliefs by someone 15 years your junior and several rungs below you on the hierarchical ladder. on the hierarchical ladder. Selflessness. (A sterling reputation as “a guy always willing to help out with alacrity despite personal cost.”) with alacrity despite personal cost.”) As 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 list being first and foremost “of service” to your list being first and foremost “of service” to your internal and external constituents. (Employees/Peers/ internal and external constituents. (Employees/Peers/ Customers/Vendors/Community.) Customers/Vendors/Community.) Treated the term “servant leadership” as holy writ. (And “preached” “servant leadership” to others—new “non-managerial” hire or old “servant leadership” to others—new “non-managerial” hire or old pro, age 18 or 48.) pro, age 18 or 48.)

16 The Memories That Matter The Memories That Matter Created the sort of workplaces you’d like your kids to inhabit. (Explicitly conscious of this “Would I want my inhabit. (Explicitly conscious of this “Would I want my kids to work here?” litmus test.) kids to work here?” litmus test.) A “certifiable” “nut” about quality and safety and integrity. (More or less regardless of any costs.) less regardless of any costs.) A notable few circumstances where you resigned rather than compromise your bedrock beliefs. compromise your bedrock beliefs. Perfectionism just short of the paralyzing variety. A self- and relentlessly enforced group standard of “EXCELLENCE-in-all-we-do”/“EXCELLENCE in our “EXCELLENCE-in-all-we-do”/“EXCELLENCE in our behavior toward one another.” behavior toward one another.”

17 Joe J. Jones 1942 – 2010 Net Worth $21,543,672.48

18 “In a way, the world is a great liar. It shows you it worships and admires money, but at the end of the day it doesn’t. It says it adores fame and celebrity, but it doesn’t, not really. The world admires, and wants to hold on to, and not lose, goodness. It admires virtue. At the end it gives its greatest tributes to generosity, honesty, courage, mercy, talents well used, talents that, brought into the world, make it better. That’s what it really admires. That’s what we talk about in eulogies, because that’s what’s important. We don’t say, ‘The thing about Joe was he was rich!’ We say, if we can …

19 “We say, if we can … ‘The thing about Joe was he took good care of people.’” ‘The thing about Joe was he took good care of people.’” —Peggy Noonan, “A Life’s Lesson,” on the astounding response to the passing of Tim Russert, —Peggy Noonan, “A Life’s Lesson,” on the astounding response to the passing of Tim Russert, The Wall Street Journal, June 21-22, 2008 The Wall Street Journal, June 21-22, 2008

20 Four [really] First things Before First Things …

21 #1

22 If the regimental commander lost most of his 2nd lieutenants and 1st lieutenants and captains and majors, it would be a tragedy. If he lost his sergeants it would be a catastrophe. The Army and the Navy are fully aware that success on the battlefield is dependent to an extraordinary degree on its Sergeants and Chief Petty Officers. Does industry have the same awareness?

23 #1 cause of employee Dis-satisfaction?

24 Employee retention & satisfaction: Overwhelmingly based on the first-line manager! Source: Marcus Buckingham & Curt Coffman, First, Break All the Rules: What the World’s Greatest Managers Do Differently

25 I am sure you “spend time” on this. My question: Is it an … OBSESSION …worthy of the impact it has on enterprise performance?

26 E.g.: Do you have the... ABSOLUTE BEST TRAINING PROGRAM IN THE INDUSTRY... (or some subset thereof) for first-line supervisors? for first-line supervisors?

27 Suggested addition to your statement of Core Values: “We are obsessed with developing a cadre of 1st line managers that is second to none—we understand that this cadre per se is arguably one of our top two or three most important ‘Strategic Assets.’”

28 #2

29 Problem #1. Opportunity #1.

30 XFX = #1* *Cross-Functional eXcellence

31 Gerald Seymour. John Le Carre.

32 Never waste a lunch! Never waste a lunch!

33 “Allied commands depend on mutual confidence and this confidence is gained, above all through the development of friendships.” of friendships.” —General D.D. Eisenhower, Armchair General* *“Perhaps his most outstanding ability [at West Point] was the ease with which he made friends and earned the trust of fellow cadets who came from widely varied backgrounds ; it was a quality that would pay great was the ease with which he made friends and earned the trust of fellow cadets who came from widely varied backgrounds ; it was a quality that would pay great dividends during his future coalition command.” dividends during his future coalition command.”

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

35 R eturn O n I nvestment In R elationships

36 % XF lunches* * Measure !! Monthly! Part of evaluation! [The PAs Club.]

37 Measure !

38 Lunch > SAP/ > SAP/Oracle

39 XFX: Social accelerators …

40 “XFX Social Accelerators.” 1. EVERYONE’s [more or less] JOB #1: Make friends in other functions! (Purposefully. Consistently. Measurably.) 2. “Do lunch” with people in other functions!! Frequently!! (Minimum 10% to 25% for everyone? Measured.) 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- ism.) 4. Invite counterparts in other functions to your team meetings. Religiously. Ask them to present “cool stuff” from “their world” to your group. (B-I-G deal; useful and respectful.) 5. PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ONCE A DAY … make a short call or visit or send an email of “Thanks” for some sort of XFX gesture by your folks and some other function’s folks.) 6. Present counterparts in other functions awards for service to your group. Tiny awards at least weekly; and an “Annual All-Star Supporters [from other groups] Banquet” modeled after superstar salesperson banquets. 7. Discuss—A SEPARATE AGENDA ITEM—good and problematic acts of cross-functional co-operation at every Team Meeting.

41 Present counterparts in other functions recognition/awards for service to your group: Tiny awards at least weekly. An “Annual All-Star Supporters [from other groups] Banquet” modeled after [and equivalent to!] superstar salesperson banquets.

42 “XFX Social Accelerators.” 8. When someone in another function asks for assistance, respond with … 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 external customer. (Remember, XFX is the key to Customer Retention which is in turn the key to “all good things.”) 9. Do not bad mouth... “the damned accountants,” “the bloody HR guy.” Ever. (Bosses: Severe penalties for this—including public tongue- lashings.) 10. Get physical!! “Co-location” may well be the most powerful “culture change lever.” Physical X-functional proximity is almost a … guarantee … of remarkably improved co-operation—to aid this one needs flexible workspaces that can be mobilized for a team in a flash. 11. Formal evaluations. Everyone, starting with the receptionist, should have a significant XF rating component in their evaluation. (The “XFX Performance” should be among the Top 3 items in all managers’ evaluations.) 12. Demand XF experience for, especially, senior jobs. For example, 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-functional achievements. 13. XFX is … PERSONAL … as well as about organizational effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to personal success—in terms of organizational career, freelancer/Brand You, or as entrepreneur.

43 Formal evaluations. Everyone, starting with the receptionist, should have a significant XFX rating component in their evaluation. (The “XFX Performance” should be among the Top 3 items in all managers’ evaluations.)

44 Women’s Negotiating Strengths *Ability to put themselves in their counterparties’ shoes *Comprehensive, attentive and detailed communication style *Empathy that facilitates trust-building *Curious and attentive listening *Less competitive attitude *Strong sense of fairness and ability to persuade *Proactive risk manager *Collaborative decision-making Source: Horacio Falcao, cover story, World Business, “Say It Like a Woman: Why the 21 st -century negotiator will need the female touch”

45 “Incidentally” …

46 Women’s Negotiating Strengths *Ability to put themselves in their counterparties’ shoes *Comprehensive, attentive and detailed communication style *Empathy that facilitates trust-building *Curious and attentive listening *Less competitive attitude *Strong sense of fairness and ability to persuade *Proactive risk manager *Collaborative decision-making Women’s Negotiating Strengths *Ability to put themselves in their counterparties’ shoes *Comprehensive, attentive and detailed communication style *Empathy that facilitates trust-building *Curious and attentive listening *Less competitive attitude *Strong sense of fairness and ability to persuade *Proactive risk manager *Collaborative decision-making Source: Horacio Falcao, Cover story/May 2006, World Business, “Say It Like a Woman: Why the 21 st -century negotiator will need the female touch”

47 #3

48 “The doctor interrupts after …* after …* *Source: Jerome Groopman, How Doctors Think

49 18 …

50 18 … seconds!

51 [An obsession with] Listening is... the ultimate mark of Respect. of Respect. Listening is... the heart and soul of Engagement. Listening is... the heart and soul of Kindness. Listening is... the heart and soul of Thoughtfulness. Listening is... the basis for true Collaboration. Listening is... the basis for true Partnership. Listening is... a Team Sport. Listening is... a Developable Individual Skill.* (*Though women are far better at it than men.) are far better at it than men.) Listening is... the basis for Community. Listening is... the bedrock of Joint Ventures that work. Listening is... the bedrock of Joint Ventures that grow. Listening is... the core of effective Cross-functional Communication* (*Which is in turn Attribute #1 of Communication* (*Which is in turn Attribute #1 of organizational effectiveness.) organizational effectiveness.)[cont.]

52 Listening is... the engine of superior EXECUTION. Listening is... the key to making the Sale. Listening is... the key to Keeping the Customer’s Business. Listening is... Service. Listening is... the engine of Network development. Listening is... the engine of Network maintenance. Listening is... the engine of Network expansion. Listening is... Social Networking’s “secret weapon.” Listening is... Learning. Listening is... the sine qua non of Renewal. Listening is... the sine qua non of Creativity. Listening is... the sine qua non of Innovation. Listening is... the core of taking diverse opinions aboard. Listening is... Strategy. Listening is... Source #1 of “Value-added.” Listening is... Differentiator #1. Listening is... Profitable.* (*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 Commitment to EXCELLENCE EXCELLENCE

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

54 Suggested addition to your statement of Core Values: “We are Effective Listeners—we treat Listening EXCELLENCE as the Centerpiece of our Commitment to Respect and Engagement and Community and Growth.”

55 *Listening is of the utmost … importance! *Listening is a proper … ! *Listening is … ! *Listening is a … ! *Listening is of the utmost … strategic importance! *Listening is a proper … core value ! *Listening is … trainable ! *Listening is a … profession !

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

57 #4

58 1/8 seconds 20 years

59 Date: 1/1/11 Activity: Boomers start turning 65 Rate: 7.5 per minute/ 10,000 per day/ 4,000,000 per year Duration: 20 years Impacted: EVERYTHING

60 !!!!!!!!!!!!!!!!! “People turning 50 today have more than half of their adult life ahead of them.” “People turning 50 today have more than half of their adult life ahead of them.” —Bill Novelli, 50+: Igniting a Revolution to Reinvent America

61 7/13

62 55+ > 55-* *“[55-plus] are more active in online finance, shopping and entertainment than those under 55?”—Forrester Research finance, shopping and entertainment than those under 55?”—Forrester Research (USA Today, 8 January 2009)

63 44-65: “New Customer Majority” Source: Ageless Marketing, David Wolfe & Robert Snyder

64 “ Marketers attempts at reaching those over 50 have been miserably unsuccessful. No market’s motivations and needs are so poorly understood.” —Peter Francese, founding publisher, American Demographics

65 “Baby-boomer Women : The Sweetest of Sweet Spots for Marketers” —David Wolfe and Robert Snyder, Ageless Marketing

66 Median Household Net Worth 74: $100K Source: U.S. Census

67 Suggested addition to your statement of Core Values: We understand that there is an “aging tsunami” that will alter the marketplace dramatically—and we stand ready to respond to/shape this humongous market’s needs and desires.

68 Four [really] First things Before First Things …

69 Four First Things Before First Things: Core Values/Surpassing Business Assets/ Sustainable Competitive Advantages 1. EXCELLENCE … First-line management cadre as engine of enterprise performance! 2. EXCELLENCE … Value-added opportunity #1 through seamless cross-functional integration! 3. EXCELLENCE … “Strategic” listening as peerless enterprise differentiator! 4. EXCELLENCE … Seizing the stupendous aging market opportunity! Four First Things Before First Things: Core Values/Surpassing Business Assets/ Sustainable Competitive Advantages 1. EXCELLENCE … First-line management cadre as engine of enterprise performance! 2. EXCELLENCE … Value-added opportunity #1 through seamless cross-functional integration! 3. EXCELLENCE … “Strategic” listening as peerless enterprise differentiator! 4. EXCELLENCE … Seizing the stupendous aging market opportunity!

70 H1

71 All you need to know … Hilton Howard Herb Henry I Henry II Hamel Hill Harley Handy Hartville Heather Hewlett Hsieh Hillis

72 Conrad Hilton, at a gala celebrating his career, was asked, His answer … Conrad Hilton, at a gala celebrating his career, was asked, “What was the most important lesson you’ve learned in your long and distinguished career?” His answer …

73 “ remember to tuck the shower curtain inside the bathtub”

74 “Execution is strategy.” —Fred Malek

75 “We have a strategic plan. It’s called doing things.” —Herb Kelleher

76 “ Execution is the job of the business leader.” —Larry Bossidy “ Execution is the job of the business leader.” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done

77 “ When assessing candidates, the first thing I looked for was energy and enthusiasm for execution. Does she talk about the thrill of getting things done, the obstacles overcome, the role her people played —or does she keep wandering back to strategy or philosophy?” —Larry Bossidy, Execution

78 Execution is a systematic process of rigorously discussing hows and whats, tenaciously following through, and ensuring accountability.” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done “ Execution is a systematic process of rigorously discussing hows and whats, tenaciously following through, and ensuring accountability.” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done

79 Does/will the next presentation you give/review allot more time to the process/details of “implementing” than to the “analysis of problem/opportunity”

80 “In real life, strategy is actually very straightforward. Pick a general direction … and implement like hell.” —Jack Welch

81 “The art of war does not require complicated maneuvers; the simplest are the best and common sense is fundamental. From which one might wonder how it is generals make blunders; it is because they try to be clever.” —Napoleon is because they try to be clever.” —Napoleon

82 Internal organizational excellence = Deepest “Blue Ocean”

83 “The score takes care of itself.” —Bill Walsh

84 H2

85 All you need to know … Hilton Howard Herb Henry I Henry II Hamel Hill Harley Handy Hartville Helgesen Hewlett Hsieh Hillis

86 25

87 “I’m always stopping by our stores— at least 25 a week. I’m also in other places: Home Depot, Whole Foods, Crate & Barrel. … I try to be a sponge to pick up as much as I can. …” —Howard Schultz Source: Fortune, “Secrets of Greatness”

88 MBWA Managing By Wandering Around/HP

89 50%. Un-scheduled. Source: Dov Frohman

90 You = Your calendar* *The calendar never lies.

91 Your calendar knows Precisely what you really care about. Do you ????

92 “Dennis, you need a … ‘To-don’t ’ List !”

93 Don’t > Do* * “Don’ting” must be systematic > WILLPOWER

94 “If there is any one ‘secret’ to effectiveness, it is concentration. Effective executives do first things first … and they do one thing at a time.” —Peter Drucker

95 “ You must be the change you wish to see in the world.” “ You must be the change you wish to see in the world.” Gandhi

96 “ It’s always showtime.” “ It’s always showtime.” —David D’Alessandro, Career Warfare

97 Monday/Tomorrow: “Script” your first 5-10 “plays.” (I.e., carefully launch the day/week in a purposeful fashion.)

98 “ I am a dispenser of enthusiasm.” —Ben Zander

99 “ Nothing is so contagious as enthusiasm.” —Samuel Taylor Coleridge

100 “A leader is a dealer in hope.” (+TP’s writing room pics) “A leader is a dealer in hope.” —Napoleon (+TP’s writing room pics)

101 H3

102 All you need to know … Hilton Howard Herb Henry I Henry II Hamel Hill Harley Handy Hartville Helgesen Hewlett Hsieh Hillis

103 “You have to treat your employees like customers.” —Herb Kelleher, upon being asked his “secret to success” Source: Joe Nocera, NYT, “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots union took out a full-page ad in USA Today thanking HK for all he had done) ; across the way in Dallas, American Airlines’ pilots were picketing AA’s Annual Meeting)

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

105 “A Nice Place to Work “Some of our people spend their entire working lives in our agency. We do our damnedest to make it a happy experience. I put this first, believing that superior service to our clients, and profits for our stockholders, depend on it. …” —David Ogilvy, on Ogilvy & Mather’s corporate culture —David Ogilvy, on Ogilvy & Mather’s corporate culture

106 “The path to a hostmanshi p culture paradoxically does not go through the guest. In fact it wouldn’t be totally wrong to say that the guest has nothing to do with it. True hostmanship leaders focus on their employees. What drives exceptionalism is finding the right people and getting them to love their work and see it as a passion.... The guest comes into the picture only when you are ready to ask, ‘Would you prefer to stay at a hotel where the staff love their work or where management has made customers its highest priority?’” “We went through the hotel and made a... ‘ consideration renovation.’ Instead of redoing bathrooms, dining rooms, and guest rooms, we gave employees new uniforms, bought flowers and fruit, and changed colors. Our focus was totally on the staff. They were the ones we wanted to make happy. We wanted them to wake up every morning excited about a new day at work.” new day at work.” Source: Jan Gunnarsson and Olle Blohm, Hostmanship: The Art of Making People Feel Welcome.

107 “ consideration renovation”

108 Zabar’s Parking Garage* *Retail Superstars: Inside the 25 Best Independent Stores in America, by George Whalin

109 List 5 (10?) (2?) “Zabar’s garage” equivalents in your organization. … in your organization. …

110 “We are a ‘Life Success’ Company.” “We are a ‘Life Success’ Company.” Dave Liniger, founder, RE/MAX

111 “The role of the Director is to create a space where the actors and actresses can become more than they’ve ever been before, more than they’ve dreamed of being.” more than they’ve dreamed of being.” —Robert Altman, Oscar acceptance speech

112 Brand = Talent.

113 To develop and manage talent; to apply that talent, throughout the world, for the benefit of clients; to do so in partnership; to do so with profit. Our Mission To develop and manage talent; to apply that talent, throughout the world, for the benefit of clients; to do so in partnership; to do so with profit. WPP

114 … no less than Cathedrals in which the full and awesome power of the Imagination and Spirit and native Entrepreneurial flair of diverse individuals is unleashed in passionate pursuit of … Excellence.

115 Oath of Office: Managers/Servant Leaders Oath of Office: Managers/Servant Leaders Our goal is to serve our customers brilliantly and profitably over the long haul. the long haul. Serving our customers brilliantly and profitably over the long haul is a product of brilliantly serving, over the long haul, the haul is a product of brilliantly serving, over the long haul, the people who serve the customer. people who serve the customer. Hence, our job as leaders—the alpha and the omega and everything in between—is abetting the sustained growth and everything in between—is abetting the sustained growth and success and engagement and enthusiasm and commitment to success and engagement and enthusiasm and commitment to Excellence of those, one at a time, who directly or indirectly Excellence 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 and Development and Success and Aspiration to Excellence Development and Success and Aspiration to Excellence business.” business.” “We” [leaders] only grow when “they” [each and every one of our colleagues] are growing. growing. “We” [leaders] only succeed when “they” [each and every one of our colleagues] are succeeding. are succeeding. “We” [leaders] only energetically march toward Excellence when “they” [each and every one of our colleagues] are energetically marching “they” [each and every one of our colleagues] are energetically marching toward Excellence. toward Excellence.Period.

116 7 Steps to Sustaining Success You take care of the people. The people take care of the service. The service takes care of the customer. The customer takes care of the profit. The profit takes care of the re-investment. The re-investment takes care of the re-invention. The re-invention takes care of the future. (And at every step the only measure is EXCELLENCE.)

117 7 Steps to Sustaining Success You take care of the people. The people take care of the service. The service takes care of the customer. The customer takes care of the profit. The profit takes care of the re-investment. The re-investment takes care of the re-invention. The re-invention takes care of the future. (And at every step the only measure is EXCELLENCE.)

118 “The ONE Question”: “In the last year [3 years, current job], name the … three people … whose growth you’ve most contributed to. Please explain where they were at the beginning of the year, where they are today, and where they are heading in the next 12 months. Please explain … in painstaking detail … your development strategy in each case. Please tell me your biggest development disappointment—looking back, could you or would you have done anything differently? Please tell me about your greatest development triumph—and disaster—in the last five years. What are the ‘three big things’ you’ve learned about helping people grow along the way?”

119 2/year = legacy.

120 Promotion Decisions “life and death decisions” Source: Peter Drucker, The Practice of Management

121 “A man should never be promoted to a managerial position if his vision focuses on people’s rather than on their.” —Peter Drucker, The Practice of Management “A man should never be promoted to a managerial position if his vision focuses on people’s weaknesses rather than on their strengths.” —Peter Drucker, The Practice of Management

122 Andrew Carnegie’s Tombstone Inscription … Here lies a man Who knew how to enlist In his service Better men than himself. Source: Peter Drucker, The Practice of Management

123 “Connoisseur of Talent” PARC’s Bob Taylor: “Connoisseur of Talent”

124 53 = 53

125 People are not “Standardized.” Their evaluations should not be standardized. Ever.

126 “ Development can help great people be even better— but if I had a dollar to spend, I’d spend 70 cents getting the right person in the door.” — Paul Russell, Director, Leadership and Development, Google

127 “In short, hiring is the most important aspect of business and yet remains woefully misunderstood.” “In short, hiring is the most important aspect of business and yet remains woefully misunderstood.” Source: Wall Street Journal, 10.29.08, review of Who: The A Method for Hiring, review of Who: The A Method for Hiring, Geoff Smart and Randy Street

128 What will you do in the next 90 days to begin the journey to “all Star” hire-er??

129 “I can’t tell you how many times we passed up hotshots for guys we thought were better people, and watched our guys do a lot better than the big names, not just in the classroom, but on the field—and, naturally, after they graduated, too. Again and again, the blue chips faded out, and our little up-and-comers clawed their way to all-conference and All-America teams.” —Bo Schembechler (and John Bacon), “Recruit for Character,” Bo’s Lasting Lessons

130 TP: TP: “How to throw $500,000 into the sea in one easy lesson!!”

131 People! People!

132 2X 2X Source: Container Store/Goal: increase average sale per shopper

133 Exhibitions of bravery: All hail the … TRAINING … department.

134 No company ever Expended too much thought/Effort/ $$$$ on training!* *ESPECIALLY … small company

135 “The four most important words in any organization are …

136 The four most important words in any organization are … “What do you think?” are … “What do you think?” Source: courtesy Dave Wheeler, posted at tompeters.com

137 Tomorrow: How many times will you “ask the WDYT question”? [Practice makes better!] [This is a skill!] Tomorrow: How many times will you “ask the WDYT question”? [ Count ‘em!! ] [Practice makes better!] [This is a STRATEGIC skill!]

138 What do managers do for a living? Help!Right? How many of us could call ourselves “professional helpers,” meaning that we have studied—like a professional mastering her musical craft—“helping”? (Not many, I’d judge.) Ed Schein: Helping: How to Offer, Give, and Receive Help Last chapter: 7 “principles.” E.g.: PRINCIPLE 2: “Effective Help Occurs When the Helping Relationship Is Perceived to Be Equitable. Perceived to Be Equitable. PRINCIPLE 4: “Everything You Say or Do Is an Intervention that Determines the Future of the Relationship.. Determines the Future of the Relationship.. PRINCIPLE 5: “Effective Helping Begins with Pure Inquiry. PRINCIPLE 6: “It Is the Client Who Owns the Problem.”* (*Love the idea that the employee is a “Client” ! Words matter!! Read a quote from NFL player-turned lawyer-turned professional football coach, calling his players “my clients.”) Employee as Client! “Helping” is what we [leaders] “do” for a living! STUDY/PRACTICE “helping” as you would neurosurgery! (“Helping” is your neurosurgery!)

139 2% /98% 2% /98%

140 “Be kind, for everyone you meet is fighting a great battle.” —Philo of Alexandria

141 “Being aware of yourself and how you affect everyone around you is what distinguishes a superior leader.” —Edie Seashore (Strategy + Business #45)

142 “How can a high-level leader like _____ be so out of touch with the truth about himself? It’s more common than you would imagine. The problem is an acute lack of feedback [especially on people issues].” —Daniel Goleman (et al.), The New Leaders “How can a high-level leader like _____ be so out of touch with the truth about himself? It’s more common 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 acute lack of feedback [especially on people issues].” —Daniel Goleman (et al.), The New Leaders

143 H4

144 All you need to know … Hilton Howard Herb Henry I Henry II Hamel Hill Harley Handy Hartville Helgesen Hewlett Hsieh Hillis

145 “Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” “Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” —Henry Clay, American Statesman (1777-1852)

146 none!

147 Press Ganey Assoc: 139,380 former patients from 225 hospitals: none of THE top 15 factors determining P atient S atisfaction referred to patient’s health outcome. Instead: directly related to Staff Interaction; directly correlated with Employee Satisfaction Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

148 There is a misconception that supportive interactions require more staff or more time and are therefore more costly. Although labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget. Kindness is free. Listening to patients or answering their questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very costly. … Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring far more time than it would have taken to interact with them initially in a positive way.” Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel (Griffin Hospital/Derby CT; Plantree Alliance) “There is a misconception that supportive interactions require more staff or more time and are therefore more costly. Although labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget. Kindness is free. Listening to patients or answering their questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very costly. … Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring far more time than it would have taken to interact with them initially in a positive way.” Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel (Griffin Hospital/Derby CT; Plantree Alliance)

149 K = R = P Kindness = Repeat business = Profit.

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

151 “The deepest human need is the … need to be appreciated.” —William James

152 Tomorrow: How many times will you mange to blurt out, “Thank you”? [ Practice makes better!] [This is a skill!] Tomorrow: How many times will you mange to blurt out, “Thank you”? [ Count ‘em! ] [ Practice makes better!] [This is a STRATEGIC skill!]

153 *appreciation is of the utmost … strategic importance! *appreciation is a proper … core value ! *appreciation is … trainable ! *appreciation is a … profession !

154 A CANDIDATE FOR THE “VALUES STATEMENT”: “We habitually express appreciation for one another’s efforts—because we do in fact consciously appreciate everyone’s ‘ordinary’ ‘daily’ contributions, let alone the extraordinary ones.”

155 “Ladies and gentlemen serving ladies and gentlemen.” —Ritz Carlton credo

156 “I regard apologizing as the most magical, healing, restorative gesture human beings can make. It is the centerpiece of my work with executives who want to get better.” —Marshall Goldsmith, What Got You Here Won’t Get You There: How Successful People Become Even More Successful. Even More Successful.

157 With a new and forthcoming policy on apologies … Toro, the lawn mower folks, reduced the average cost of settling a claim from $115,000 in 1991 to $35,000 in 2008—and the company hasn’t been to trial in the last 15 years! in 2008—and the company hasn’t been to trial in the last 15 years! Source: John Kador, Effective Apology

158 “Keep a short enemies list. One enemy can do than the good done by a hundred friends.” “Keep a short enemies list. One enemy can do more damage than the good done by a hundred friends.” —Bill Walsh (from The Score Takes Care of Itself)

159 “It’s a simple fact. Many people will remember a ‘simple’ sleight for decades! Beware!” —consumer goods exec for decades! Beware!” —consumer goods exec

160 “One of the secrets of a long and fruitful life is to forgive everybody of everything every night right before going to bed.” —Bernard Baruch “One of the secrets of a long and fruitful life is to forgive everybody of everything every night right before going to bed.” —Bernard Baruch

161 THERE ONCE WAS A TIME WHEN A THREE-MINUTE PHONE CALL WOULD HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE.* Relationships (of all varieties) : THERE ONCE WAS A TIME WHEN A THREE-MINUTE PHONE CALL WOULD HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE.* *divorce, loss of a BILLION $$$ aircraft sale, etc., etc.

162 THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM.* *PERCEPTION IS ALL THERE IS!

163 Comeback [big, quick response] >> >>Perfection

164 Acquire vs. maintain: 5X* *Hence: Service >> Sales (!!)

165 “Will you guys please come up front. Will you guys please move to the rear.”

166 Service > Sales

167 Sales > Marketing Sales > Marketing

168 H5

169 All you need to know … Hilton Howard Herb Henry I Henry II Hamel Hill Harley Handy Hartville Helgesen Hewlett Hsieh Hillis

170 READY. FIRE! AIM. H. Ross Perot (vs “ Aim! Aim! Aim!” /EDS vs GM/1985)

171 you only find oil if you drill wells. “ This is so simple it sounds stupid, but it is amazing how few oil people really understand that you only find oil if you drill 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

172 1 /45

173 In Search of Excellence /1982: The Bedrock “Eight Basics” The Bedrock “Eight Basics” 1. A Bias for Action 2. Close to the Customer 3. Autonomy and Entrepreneurship 4. Productivity Through People 5. Hands On, Value-Driven 6. Stick to the Knitting 7. Simple Form, Lean Staff 8. Simultaneous Loose-Tight Properties Properties

174 “We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the software. We fixed them by doing it over and over, again and again. We do the same today. While our competitors are still sucking their thumbs trying to make the design perfect, we’re already on prototype version # 5. By the time our rivals are ready with wires and screws, we are on version #10. It gets back to planning versus acting: We act from day one; others plan how to plan—for months.” —Bloomberg by Bloomberg

175 Mickey Drexler/The Gap-J Crew ** Bias for instant action/Towering impatience with in-action **Impatient but not brutal ** Relentless/Speed-of-light experimentation; more ASAP if works, drop if not ** Vibrates with energy (literally) ** Always on the prowl—anywhere, everywhere—for ideas **Lots of team-standing-around-making-instant-assessments-decisions—all contributing **Likes working with women more than men because F more intuitive than M **Dresses like the brand—at 66 ** Offense, not defense ** Communicates all the time [removes fear of CEO presence]. Everyone, including most junior, made part of the decision-making team ** Listens attentively regardless of age/seniority **Obvious in his transparent respect for young employees ** Trusts intuition plus fanatic about the numbers **Expects everyone to know their numbers cold from memory **Always aware of “the business case”—as well as fashion-master **Aggressive pricing ** MBWA/Managing By Wandering Around **Open with everyone, from youth to folks at Earnings Call ** Constant customer contact-dialogue/React instantly to customer feedback ** Willing to act (experiment) based on one datapoint **Engages with the most junior of his people **At 66, comfortably uses “hot” words like “Cool” “Wow” Source: The New Yorker/0920.10 Mickey Drexler/The Gap-J Crew ** Bias for instant action/Towering impatience with in-action **Impatient but not brutal ** Relentless/Speed-of-light experimentation; more ASAP if works, drop if not ** Vibrates with energy (literally) ** Always on the prowl—anywhere, everywhere—for ideas **Lots of team-standing-around-making-instant-assessments-decisions—all contributing **Likes working with women more than men because F more intuitive than M **Dresses like the brand—at 66 ** Offense, not defense ** Communicates all the time [removes fear of CEO presence]. Everyone, including most junior, made part of the decision-making team ** Listens attentively regardless of age/seniority **Obvious in his transparent respect for young employees ** Trusts intuition plus fanatic about the numbers **Expects everyone to know their numbers cold from memory **Always aware of “the business case”—as well as fashion-master **Aggressive pricing ** MBWA/Managing By Wandering Around **Open with everyone, from youth to folks at Earnings Call ** Constant customer contact-dialogue/React instantly to customer feedback ** Willing to act (experiment) based on one datapoint **Engages with the most junior of his people **At 66, comfortably uses “hot” words like “Cool” “Wow” Source: The New Yorker/0920.10

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

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

178 Read It Richard Farson & Ralph Keyes: Whoever Makes the Most Mistakes Wins: The Paradox of Innovation

179 “Fail. Forward. Fast.” “Fail. Forward. Fast.” High Tech CEO, Pennsylvania

180 “Fail. Fail again. Fail better.” —Samuel Beckett

181 “It is not enough to ‘tolerate’ failure— you must ‘celebrate’ failure.” —Richard Farson (Whoever Makes the Most Mistakes Wins)

182 “No man ever became great except through many and great mistakes.” —William Gladstone (from Timeless Wisdom, compiled by Gary Fenchuk) (from Timeless Wisdom, compiled by Gary Fenchuk)

183 “You miss 100% of the shots you never take.” —WayneGretzky “You miss 100% of the shots you never take.” —Wayne Gretzky

184 BLAME NOBODY. EXPECT NOTHING. DO SOMETHING. DO SOMETHING. Source: Locker room sign posted by NFL football coach Bill Parcells football coach Bill Parcells

185 H6

186 All you need to know … Hilton Howard Herb Henry I Henry II Hamel Hill Harley Handy Hartville Helgesen Hewlett Hsieh Hillis

187 “You will become like the five people you associate with the most—this can be either a blessing or a curse.” —Billy Cox “You will become like the five people you associate with the most—this can be either a blessing or a curse.” —Billy Cox

188 We are What We Eat/We Are the company we keep we keep

189 Measure “Strangeness”/Portfolio Quality Staff Consultants Vendors Out-sourcing Partners (#, Quality) Innovation Alliance Partners Customers Competitors (who we “benchmark” against) Strategic Initiatives Product Portfolio (LineEx v. Leap) IS/IT Projects HQ Location Lunch Mates Language Board

190 The “We are what we eat”/ “We are who we hang out with” Axiom: At its core, every (!!!) relationship-partnership decision (employee, vendor, customer, etc, etc) is a strategic decision about: “Innovate, ‘Yes’ or ” The “We are what we eat”/ “We are who we hang out with” Axiom: At its core, every (!!!) relationship-partnership decision (employee, vendor, customer, etc, etc) is a strategic decision about: “Innovate, ‘Yes’ or ‘No’ ”

191 “[CEO A.G.] Lafley has shifted P&G’s focus on inventing all its own products to developing … others’ inventions at least half the time. One successful example, Mr. Clean Magic Eraser, based on a product found in an Osaka market.” — Fortune

192 CUSTOMERS: “Future-defining customers may account for only 2% to 3% of your total, but they represent a crucial window on the future.” Adrian Slywotzky, Mercer Consultants

193 Axiom: Never use a vendor who is not in the top quartile (decile?) in their industry on R&D spending!

194 “Don’t benchmark, futuremark!” “Don’t benchmark, futuremark!” Impetus: “The future is already here; it’s just not evenly distributed” —William Gibson

195 “d”iversity

196 Can you pass the … “Squint test”?

197 “Who’s the most interesting person you’ve met in the last 90 days? How do I get in touch with them?” —Fred Smith

198

199 The Bottleneck … “ The Bottleneck …

200 The Bottleneck … Is at the Top of the Bottle” “Where are you likely to find people with the least diversity of experience, the largest investment in the past, and the greatest reverence for industry dogma … At the top!” — Gary Hamel/Harvard Business Review “ The Bottleneck … Is at the Top of the Bottle” “Where are you likely to find people with the least diversity of experience, the largest investment in the past, and the greatest reverence for industry dogma … At the top!” — Gary Hamel/Harvard Business Review

201 H7

202 All you need to know … Hilton Howard Herb Henry I Henry II Hamel Hill Harley Handy Hartville Helgesen Hewlett Hsieh Hillis

203 2,000,000

204 7X. 7:30A-8:00P. F12A. 7:30AM = 7:15AM. 8:00PM = 8:15PM.

205 Conveyance: Kingfisher Air Location: Approach to New Delhi

206 “May I clean your glasses, sir?”

207 It BEGINS (and ENDS ) in the …

208 parking lot* *Disney

209 Carl’s Street- Sweeper

210 TGR [Things Gone WRONG -Things Gone RIGHT ] TGR [Things Gone WRONG -Things Gone RIGHT ]

211 TGR s. Manage ‘em. Measure ‘em.

212 Little = BIG

213 Big carts = 1.5X 1.5X Source: Walmart

214 Bag sizes = New markets: $B $B Source: PepsiCo

215 “Broken windows”: Clean the streets, fix the broken windows, ticket the open-beer-can holders, etc, etc “Broken windows”: Clean the streets, fix the broken windows, ticket the open-beer-can holders, etc, etc = Sense of order = Sense of order = Crime way down = Crime way down

216 H8

217 All you need to know … Hilton Howard Herb Henry I Henry II Hamel Hill Harley Handy Hartville Helgesen Hewlett Hsieh Hillis

218 And in Milwaukee …

219 “What we sell is the ability for a 43- year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.” Harley Experience: “Rebel Lifestyle!” “What we sell is the ability for a 43- year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.” Source: Harley exec, quoted in Results-Based Leadership

220 “Experiences are as distinct from services as services are from goods.” “Experiences are as distinct from services as services are from goods.” —Joe Pine & Jim Gilmore,The Experience Economy: Work Is Theatre & Every Business a Stage

221 “At our core, we’re a coffee company, but the opportunity we have to extend the brand is beyond coffee; it’s entertainment.” “At our core, we’re a coffee company, but the opportunity we have to extend the brand is beyond coffee; it’s entertainment.” —Howard Schultz (“The Starbucks Aesthetic,” NYT)

222 C X O* *Chief e X perience Officer

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

224 The Value-Added Ladder Spellbinding Experiences Services Goods Raw Materials

225 H9

226 All you need to know … Hilton Howard Herb Henry I Henry II Hamel Hill Harley Handy Hartville Helgesen Hewlett Hsieh Hillis

227 All Equal Except … “At Sony we assume that all products of our competitors have basically the same technology, price, performance and features. Design is the only thing that differentiates one product from another in the marketplace.” —Norio Ohga

228 “Design is treated like a religion at BMW.” —Fortune

229 “With its carefully conceived mix of colors and textures, aromas and music, Starbucks is more indicative of our era than the iMac. It is to the Age of Aesthetics what McDonald’s was to the Age of Convenience or Ford was to the Age of Mass Production—the touchstone success story, the exemplar of … the aesthetic imperative. … ‘Every Starbucks store is carefully designed to enhance the quality of everything the customers see, touch, hear, smell or taste,’ writes CEO Howard Schultz.” “With its carefully conceived mix of colors and textures, aromas and music, Starbucks is more indicative of our era than the iMac. It is to the Age of Aesthetics what McDonald’s was to the Age of Convenience or Ford was to the Age of Mass Production—the touchstone success story, the exemplar of … the aesthetic imperative. … ‘Every Starbucks store is carefully designed to enhance the quality of everything the customers see, touch, hear, smell or taste,’ writes CEO Howard Schultz.” —Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness

230 Hypothesis: DESIGN is the principal difference between love and hate!* Hypothesis: DESIGN is the principal difference between love and hate!* *Not “like” and “dislike”

231 Design is … never neutral.

232 C D O *Chief Design Officer C D O * *Chief Design Officer

233 “Design is everything. Everything is design.” “We are all designers.” Inspiration: The Power of Design: A Force for Transforming Everything, Richard Farson

234 “One bank is currently claiming to … — Charles Handy “One bank is currently claiming to … ‘ leverage its global footprint to provide effective financial solutions for its customers by providing a gateway to diverse markets.’” — Charles Handy

235 “I assume that it is just saying that it is there to … ‘ help its customers wherever they are’.” —Charles Handy

236 Beauty.Grace.Clarity.Simplicity.

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

238 H10

239 All you need to know … Hilton Howard Herb Henry I Henry II Hamel Hill Harley Handy Hartville Helgesen Hewlett Hsieh Hillis

240 I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, The answer seems 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 …

241 Buy a very large one and just wait.” “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 large one and just wait.” —Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics

242 “Mr. Foster and his McKinsey colleagues collected detailed performance data stretching back 40 years for 1,000 U.S. companies. They found that none of the long-term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did.” —Financial Times

243 “Data drawn from the real world attest to a fact that is beyond our control: —Norberto Odebrecht, Education Through Work “Data drawn from the real world attest to a fact that is beyond our control: Everything in existence tends to deteriorate.” —Norberto Odebrecht, Education Through Work

244 #4 Japan #3 USA #2 China #1 Germany

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

246 Larry Janesky Rocks …

247 *Basement Systems Inc. (Seymour CT) *Dry Basement Science (115,000 copies!) *1990: $0; 2003: $13M; 2008: $62,000,000

248 The Red Carpet Store (Joel Resnick/Flemington NJ)

249 “Be the best. It’s the only market that’s not crowded.” From: Retail Superstars: Inside the 25 Best Independent Stores in America, George Whalin Independent Stores in America, George Whalin

250 Retail Superstars: Inside the 25 Best Independent Stores in America —by George Whalin

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

252 Jungle Jim’s International Market, Fairfield, Ohio: “An adventure in ‘shoppertainment,’ as Jungle Jim’s call it, begins in the parking lot and goes on to 1,600 cheeses and, yes, 1,400 varieties of hot sauce — not to mention 12,000 wines priced from $8 to $8,000 a bottle; all this is brought to you by 4,000 vendors. Customers come from every corner of the globe.” Bronner’s Christmas Wonderland, Frankenmuth, Michigan, pop 5,000: 98,000-square-foot “shop” features the likes of 6,000 Christmas ornaments, 50,000 trims, and anything else you can name if it pertains to Christmas. Source: George Whalin, Retail Superstars

253 Abt Electronics/Family/1936 Insane competition (Chicagoland!) Campus/350K sq.ft./37 acres/$300M revenue Design Center (Classes on every-damn-thing, etc.) “Destination” like Ikea (restaurant, atrium with spectacular flowers, 7,500 gallon aquarium, etc.) In-house delivery teams (spiffy uniforms, etc.) Training/knowledge training!!!!!!!! “Yes.” Period. NO EXCUSES. “Over”-staffed Merchandising (boats displaying marine electronics, cars with various systems, etc.) Web (encyclopedic info re almost all stuff sold, blog, live chat with live experts “24/7”, etc.) Rating of services (>>> Home Depot, Lowes, etc.) Source: George Whalin, Retail Superstars Abt Electronics/Family/1936 Insane competition (Chicagoland!) Campus/350K sq.ft./37 acres/$300M revenue Design Center (Classes on every-damn-thing, etc.) “Destination” like Ikea (restaurant, atrium with spectacular flowers, 7,500 gallon aquarium, etc.) In-house delivery teams (spiffy uniforms, etc.) Training/knowledge training!!!!!!!! “Yes.” Period. NO EXCUSES. “Over”-staffed Merchandising (boats displaying marine electronics, cars with various systems, etc.) Web (encyclopedic info re almost all stuff sold, blog, live chat with live experts “24/7”, etc.) Rating of services (>>> Home Depot, Lowes, etc.) Source: George Whalin, Retail Superstars

254 Lessons [for Everyone] from Retail Superstars! Lessons [for Everyone] from Retail Superstars! 1. Courses/Workshops/Demos/Engagement 2. Instructional guides/material/books 3. Events & Events & Events … 4. Create “Community” of customers 5. Destination 6. Women-as-customer 7. Staff selection/training/retention (FANATICISM) 8. Fanaticism/Execution 9. Design/Atmospherics/Ambience 10. Tableaus/Products-in-use 11. Flow/starts & finishes (Disney-like) 12. 100% orchestrated experience/focus: “Moments of truth” 13. Constant experimentation/Pursue Little BIG Things 14. Social Media/Ongoing conversation with customers 15. Community star 16. Aim high 17. PASSION

255 YOU CAN HOLD IT.

256 Billboard … ONLY 262 MILES TO BUC-EE’S YOU CAN HOLD IT.* *“If I weren’t already married, I’d have my wedding there.” —Dallas Morning News Metro blogger there.” —Dallas Morning News Metro blogger

257 H11

258 All you need to know … Hilton Howard Herb Henry I Henry II Hamel Hill Harley Handy Hartville Heather Hewlett Hsieh Hillis

259 “Forget China, India and the Internet : Economic Growth Is Driven by Women.” Source: Headline, Economist

260 W > 2X (C + I)* *“Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could climb as high as $28 trillion in the next five years. Their $13 trillion in total yearly earnings could reach $18 trillion in the same period. In aggregate, women represent a growth market bigger than China and India combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer. 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 …” Source: Michael Silverstein and Kate Sayre, “The Female Economy,” HBR, 09.09

261 “One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to spend. … This is just the beginning. The phenomenon will only grow as girls prove to be more successful than boys in the school system. For a number of observers, we have already entered the age of ‘womenomics,’ the economy as thought out and practiced by a woman.” —Aude Zieseniss de Thuin, Women’s Forum for the Economy and Society

262 “Women are the majority market” —Fara Warner/The Power of the Purse

263 Women as Decision Makers/Various sources Home Furnishings … 94% Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment) Houses … 91% D.I.Y. (major “home projects”) … 80% Consumer Electronics … 51% (66% home computers) Cars … 68% (influence 90% ) All consumer purchases … 83% * Bank Account … 89% Household investment decisions … 67% Small business loans/biz starts … 70% Health Care … 80% *In the USA women hold >50% managerial positions including >50% purchasing officer positions; hence women also make the majority of commercial purchasing decisions.

264 “The most significant variable in every sales situation is the gender of the buyer, and more importantly, how the salesperson communicates to the buyer’s gender.” “The most significant variable in every sales situation is the gender of the buyer, and more importantly, how the salesperson communicates to the buyer’s gender.” —Jeffery Tobias Halter, Selling to Men, Selling to Women

265 The Perfect Answer Jill and Jack buy slacks in black…

266

267 Cases! Cases! Cases! McDonald’s (“mom-centered” to F as “majority consumer”; not via kids) Home Depot (“Do it [everything!] Herself”) P&G (more than F as “house cleaner”) DeBeers (“right-hand rings”/$4B) AXA Financial Kodak (women = “emotional centers of the household”) Nike (> jock endorsements; new def sports; majority consumer) Avon Bratz (young girls want “friends,” not a blond stereotype) Source: Fara Warner/The Power of the Purse

268 “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”)

269 “McDonald’s shifted its strategy toward women from one of ‘minority’ consumers who served as a conduit to the important children’s market to one in which women are the company’s majority consumers and the main driver behind menu and promotion innovation.” “McDonald’s shifted its strategy toward women from one of ‘minority’ consumers who served as a conduit to the important children’s market to one in which women are the company’s majority consumers and the main driver behind menu and promotion innovation.” —Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom”

270 Lowe’s!

271 “Women don’t ‘buy’ brands. They ‘join’ them.” —Faith Popcorn, EVEolution

272 2.6 vs. 21

273 Women: Harder to convince; more loyal once convinced. Men: Snap decision; fickle. Purchasing Patterns Women: Harder to convince; more loyal once convinced. Men: Snap decision; fickle. Source: Martha Barletta, Marketing to Women

274 H11.5

275 “AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” TITLE/ Special Report/ BusinessWeek

276

277 Women’s Strengths Match New Economy Imperatives: Link [rather than rank] workers; favor interactive- collaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills, individual & group contributions equally; readily accept ambiguity; honor intuition as well as pure “rationality”; inherently flexible; appreciate cultural diversity. Source: Judy B. Rosener, America’s Competitive Secret: Women Managers

278 “Power Women 100”/Forbes 10.25.10 26 female CEOs of Public Companies: Vs. Men/Market: +28% * (*Post-appointment) Vs. Industry: +15%

279 “TAKE THIS QUICK QUIZ Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it easier to meet new people? Who asks more questions in a conversation? Who is a better listener? Who has more interest in communication skills? Who is more inclined to get involved? Who encourages harmony and agreement? Who has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is better at keeping in touch “TAKE THIS QUICK QUIZ: Who manages more things at once? Who puts more effort into their appearance? Who usually takes care of the details? Who finds it easier to meet new people? Who asks more questions in a conversation? Who is a better listener? Who has more interest in communication skills? Who is more inclined to get involved? Who encourages harmony and agreement? Who has better intuition? Who works with a longer ‘to do’ list? Who enjoys a recap to the day’s events? Who is better at keeping in touch with others?” Selling Is a Woman’s Game: with others?” Source/from the back cover: Selling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson

280 “Women Beat Men at Art of Investing” Source: Headline, Miami Herald, reporting on a study by Profs. Terrance Odean and Brad Barber, UC Davis “Women Beat Men at Art of Investing” Source: Headline, Miami Herald, reporting on a study by Profs. Terrance Odean and Brad Barber, UC Davis (Cause: Guys are “in and out” of stocks more often; women choose carefully and hold on for the long term)

281 *Women decide. *Women save. *Women spend. *Women rule.

282 *Women decide *Women save *Women spend *Women rule *In the developed world *In the developing world *The trend is accelerating

283 Not Just America … “Boys Falling Seven Years Behind Girls at GCSE Level” —headline, Weekly Telegraph, UK, 10.25.06

284 “Girls are the new boys.” Source: The Daily Mail, 0425.2007,“Why today’s women want a girl”

285 H12

286 All you need to know … Hilton Howard Herb Henry I Henry II Hamel Hill Harley Handy Hartville Heather Hewlett Hsieh Hillis

287 “HP to acquire EDS for $13.9 billion” —Hewlett-Packard press release, 05.13.2008

288 Huge: Customer Satisfaction versus Customer Success

289 “ ‘Results’ are measured by the success of all those who have purchased your product or service” —Jan Gunnarsson & Olle Blohm, The Welcoming Leader

290 IB M : $55B* *IBM Global Services/ “Systems integrator of choice”

291 “It’s all about solutions. We talk with customers about how to run better, stronger, cheaper supply chains. We have 1,000 engineers who work with customers …” —Bob Stoffel, UPS senior exec

292 “THE GIANT STALKING BIG OIL: How Schlumberger Is Rewriting the Rules of the Energy Game.”: “IPM [Integrated Project Management] strays from [Schlumberger’s] traditional role as a service provider and moves deeper into areas once dominated by the majors.” Source: BusinessWeek cover story, January 2008

293 MasterCard Advisors

294 Flagship of BestBuy Wholesale “Solutions” Strategy Makeover. I. LAN Installation Co. (3%) II. Geek Squad. (30%.) III. Acquired by BestBuy. IV. Flagship of BestBuy Wholesale “Solutions” Strategy Makeover.

295 Up, Up, Up, Up the Value-added Ladder.

296 H13

297 All you need to know … Hilton Howard Herb Henry I Henry II Hamel Hill Harley Handy Hartville Heather Hewlett Hsieh Hillis

298

299 Zappos 10 Corporate Values Deliver “WOW!” through service. Embrace and drive change. Create fun and a little weirdness. Be adventurous, creative and open-minded. Pursue growth and learning. Build open and honest relationships with Zappos 10 Corporate Values Deliver “WOW!” through service. Embrace and drive change. Create fun and a little weirdness. Be adventurous, creative and open-minded. Pursue growth and learning. Build open and honest relationships with communication. Build a positive team and family spirit. Do more with less. Be passionate and determined. Be humble. communication. Build a positive team and family spirit. Do more with less. Be passionate and determined. Be humble. Source: Delivering Happiness, Tony Hsieh, CEO, Zappos.com

300 “ Insanely Great” Steve Jobs “Radically thrilling” “ Insanely Great” Steve Jobs “Radically thrilling” BMW

301 “Astonish me!” “Build something great!” “Make it immortal!” ) “Astonish me!” (Sergei Diaghlev) “Build something great!” (Hiroshi Yamauchi ) “Make it immortal!” (David Ogilvy). )

302 “Every project we undertake starts with the same question : ‘How can we do what has never been done before?’” —Stuart Hornery, Lend Lease

303 “Let us create such a building that future generations will take us for lunatics.” —the church hierarchs at Seville

304 Kevin Roberts’ Credo 1. Ready. Fire! Aim. 2. If it ain’t broke... Break it! 3. Hire crazies. 4. Ask dumb questions. 5. Pursue failure. 6. Lead, follow... or get out of the way! 7. Spread confusion. 8. Ditch your office. 9. Read odd stuff. Avoid moderation! Kevin Roberts’ Credo 1. Ready. Fire! Aim. 2. If it ain’t broke... Break it! 3. Hire crazies. 4. Ask dumb questions. 5. Pursue failure. 6. Lead, follow... or get out of the way! 7. Spread confusion. 8. Ditch your office. 9. Read odd stuff. 10. Avoid moderation!

305 “You can’t behave in a calm, rational manner. You’ve got to be out there on the lunatic fringe.” — Jack Welch

306 There is more than one way to skin a cat!* than one way to skin a cat!* *Every project REQUIRES (if you’re smart) an outside look by one/some Seriously Weird Cat/s outside look by one/some Seriously Weird Cat/s —in pursuit of whacked-out options.

307 14,000 20,000 30

308 14,000/ e Bay 20,000/Amazon 30/Craigslist

309 H14

310 All you need to know … Hilton Howard Herb Henry I Henry II Hamel Hill Harley Handy Hartville Heather Hewlett Hsieh Hillis

311 “The computers are in control. We just live in their world.”

312 “In some sense you can argue that the science fiction scenario is already starting to happen. The computers are in control. We just live in their world.” —Danny Hillis, Thinking Machines (Wired 01.2011)

313 “ It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.” “ It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.” —Charles Darwin

314 “ You must be the change you wish to see in the world.” —Gandhi

315 Summary: The Moral Basis For & societal Role of Enterprise Really first things before first things H15 (The Theory of Everything) Summary: The Moral Basis For & societal Role of Enterprise Really first things before first things H15 (The Theory of Everything)

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

317 Organizations exist to serve. Period. Leaders live to serve. Period. serve. Period.

318 Summary: Really first things before first things Summary: Really first things before first things

319 First Things Before First Things: Core Values/Surpassing Business Assets/ Sustainable Competitive Advantages 1. EXCELLENCE … First-line management cadre as engine of enterprise performance! 2. EXCELLENCE … Value-added opportunity #1 through seamless cross-functional integration! 3. EXCELLENCE … “Strategic” listening as peerless enterprise differentiator! 4. EXCELLENCE … Seizing the stupendous aging market opportunity! First Things Before First Things: Core Values/Surpassing Business Assets/ Sustainable Competitive Advantages 1. EXCELLENCE … First-line management cadre as engine of enterprise performance! 2. EXCELLENCE … Value-added opportunity #1 through seamless cross-functional integration! 3. EXCELLENCE … “Strategic” listening as peerless enterprise differentiator! 4. EXCELLENCE … Seizing the stupendous aging market opportunity!

320 Summary: 14H (The Theory of Everything) Summary: 14H (The Theory of Everything)

321 The 14H Theory of Everything *Conrad Hilton/Sweat the details!/EXECUTION is Strategy! *Howard Schultz/MBWA!!!!/Best LISTENER wins! *Herb Kelleher/It’s always all about the PEOPLE!!!!!!!!!!!!!!!!!!!! *Henry Clay/Big payoff from SMALL COURTESIES! *H. Ross Perot/Most TRIES & SCREWUPS are alpha & omega! *Gary Hamel/You are who you HANG OUT with! *Vernon Hill/“TGRs”! [Things Gone RIGHT]/Little BIG Things! *Harley Davidson/EXPERIENCES to die for!/Feel the LOVE! *Charles Handy/Everything is DESIGN! *Hartville Hardware/MONOPLY through EXCELLENCE! *Heather Schultz/WOMEN buy!/WOMEN roar!/WOMEN rule! *Hewlett Packard/Make our customer a RAGING SUCCESS! *Tony Hsieh/WOW!/Radically thrilling!/Insanely great! *Danny Hillis/YEOW! The “singularity” may be upon us! The 14H Theory of Everything *Conrad Hilton/Sweat the details!/EXECUTION is Strategy! *Howard Schultz/MBWA!!!!/Best LISTENER wins! *Herb Kelleher/It’s always all about the PEOPLE!!!!!!!!!!!!!!!!!!!! *Henry Clay/Big payoff from SMALL COURTESIES! *H. Ross Perot/Most TRIES & SCREWUPS are alpha & omega! *Gary Hamel/You are who you HANG OUT with! *Vernon Hill/“TGRs”! [Things Gone RIGHT]/Little BIG Things! *Harley Davidson/EXPERIENCES to die for!/Feel the LOVE! *Charles Handy/Everything is DESIGN! *Hartville Hardware/MONOPLY through EXCELLENCE! *Heather Schultz/WOMEN buy!/WOMEN roar!/WOMEN rule! *Hewlett Packard/Make our customer a RAGING SUCCESS! *Tony Hsieh/WOW!/Radically thrilling!/Insanely great! *Danny Hillis/YEOW! The “singularity” may be upon us!

322 “Excellence … can be obtained if you: can be obtained if you:... care more than others think... care more than others think is wise;... risk more than others think is wise;... risk more than others think is safe;... dream more than others think is safe;... dream more than others think is practical;... expect more than others think is practical;... expect more than others think is possible.” is possible.” Source: Anon. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)


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