Leaders-Teachers Do Not Transform People! Instead leaders-mentors-teachers (1) provide a context which is marked by (2) access to a luxuriant portfolio of meaningful opportunities (projects) which (3) allow people to fully (and safely, mostlycaveat: they dont engage unless theyre mad about something) express their innate curiosity and (4) engage in a vigorous discovery voyage (alone and in small teams, assisted by an extensive self-constructed network) by which those people (5) go to-create places they (and their mentors-teachers- leaders) had never dreamed existedand then the leaders-mentors-teachers (6) applaud like hell, stage photo-ops, and ring the church bells 100 times to commemorate the bravery of their followers explorations!
Renaissance Men are … a snare, a myth, a delusion!
5A. The Leader Is Rarely/Never the Best Performer.
33 Division Titles. 26 League Pennants. 14 World Series: Earl Weaver0. Tom Kelly0. Jim Leyland0. Walter Alston1AB. Tony LaRussa132 games, 6 seasons. Tommy LasordaP, 26 games. Sparky Anderson1 season.
If Microsoft is good at anything, its avoiding the trap of worrying about criticism. Microsoft fails constantly. Theyre eviscerated in public for lousy products. Yet they persist, through version after version, until they get something good enough. Then they leverage the power theyve gained in other markets to enforce their standard. Seth Godin, Zooming Seth Godin
Leaders dont want to win. Leaders need to win. #49
It is no use saying We are doing our best. You have got to succeed in doing what is necessary. WSC
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 playedor does she keep wandering back to strategy or philosophy? Larry Bossidy, Honeywell/AlliedSignal, in Execution
13. Leaders … Understand the Ultimate Power of RELATIONSHIPS.
Women speak and hear a language of connection and intimacy, and men speak and hear a language of status and independence. Men communicate to obtain information, establish their status, and show independence. Women communicate to create relationships, encourage interaction, and exchange feelings. Judy Rosener, Americas Competitive Secret Judy Rosener
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 days events? Who is better at keeping in touch with others? Source: Selling Is a Womans Game: 15 Powerful Reasons Why Women Can Outsell Men, Nicki Joy & Susan Kane-Benson
Forget>Learn The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out. Dee Hock
Forbes100 from 1917 to 1987: 39 members of the Class of 17 were alive in 87; 18 in 87 F100; 18 F100 survivors underperformed the market by 20%; just 2 (2%), GE & Kodak, outperformed the market 1917 to 1987. S&P 500 from 1957 to 1997: 74 members of the Class of 57 were alive in 97; 12 (2.4%) of 500 outperformed the market from 1957 to 1997. Source: Dick Foster & Sarah Kaplan, Creative Destruction: Why Companies That Are Built to Last Underperform the Market
Good management was the most powerful reason [leading firms] failed to stay atop their industries. Precisely because these firms listened to their customers, invested aggressively in technologies that would provide their customers more and better products of the sort they wanted, and because they carefully studied market trends and systematically allocated investment capital to innovations that promised the best returns, they lost their positions of leadership. Clayton Christensen, The Innovators Dilemma
Leaders dump the ones who brung em Nokia, HP, 3M, PerkinElmer, Corning, etc.
16. BUT … Leaders Have to Deliver, So They Worry About Throwing the Baby Out with the Bathwater.
Damned If You Do, Damned If You Dont, Just Plain Damned. Subtitle in the chapter, Own Up to the Great Paradox: Success Is the Product of Deep Grooves/ Deep Grooves Destroy Adaptivity, Liberation Management (1992)
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
COMPETITORS: The best swordsman in the world doesnt need to fear the second best swordsman in the world; no, the person for him to be afraid of is some ignorant antagonist who has never had a sword in his hand before; he doesnt do the thing he ought to do, and so the expert isnt prepared for him; he does the thing he ought not to do and often it catches the expert out and ends him on the spot. Mark Twain
Employees: Are there enough weird people in the lab these days? V. Chmn., pharmaceutical house, to a lab director (06.01)
Suppliers: There is an ominous downside to strategic supplier relationships. An SSR supplier is not likely to function as any more than a mirror to your organization. Fringe suppliers that offer innovative business practices need not apply. Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees
The Cracked Ones Let in the Light Our business needs a massive transfusion of talent, and talent, I believe, is most likely to be found among non-conformists, dissenters and rebels. David Ogilvy
Deviants, Inc. Deviance tells the story of every mass market ever created. What starts out weird and dangerous becomes Americas next big corporate payday. So are you looking for the next mass market idea? Its out there … way out there. Source: Ryan Matthews & Watts Wacker, Fast Company (03.02)
WEIRD IDEAS THAT WORK: (1) Hire slow learners (of the organizational code). (1.5) Hire people who make you uncomfortable, even those you dislike. (2) Hire people you (probably) dont need. (3) Use job interviews to get ideas, not to screen candidates. (4) Encourage people to ignore and defy superiors and peers. (5) Find some happy people and get them to fight. (6) Reward success and failure, punish inaction. (7) Decide to do something that will probably fail, then convince yourself and everyone else that success is certain. (8) Think of some ridiculous, impractical things to do, then do them. (9) Avoid, distract, and bore customers, critics, and anyone who just wants to talk about money. (10) Dont try to learn anything from people who seem to have solved the problems you face. (11) Forget the past, particularly your companys success. Bob Sutton, Weird Ideas That Work: 11½ Ideas for Promoting, Managing, and Sustaining Innovation
1 st Law Mktg Physics: OVERT BENEFIT (Focus: 1 or 2 > 3 or 4/One Great Thing. Source #1: Personal Passion) 2 ND Law: REAL REASON TO BELIEVE (Stand & Deliver!) 3 RD Law: DRAMATIC DIFFERENCE (Execs Dont Get It: intent to purchase – 100%; unique – 0% to 5%) Source: Jump Start Your Business Brain, Doug HallDoug Hall
They [consumer goods company] have acquired a bunch of products, which is what everyone is doing. But whats the point, the message, the story line, the Big Idea that makes it all hang together? Exec, major consumer goods company
20A. Leaders … Make Their Mark / Leaders … Do Stuff That Matters
I never, ever thought of myself as a businessman. I was interested in creating things I would be proud of.Richard Branson
The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo
50+ $7T wealth (70%)/$2T annual income 50% all discretionary spending 79% own homes/40M credit card users 41% new cars/48% luxury cars $610B healthcare spending/ 74% prescription drugs 5% of advertising targets Ken Dychtwald, Age Power: How the 21 st Century Will Be Ruled by the New Old
Marketers attempts at reaching those over 50 have been miserably unsuccessful. No markets motivations and needs are so poorly understood. Peter Francese, founding publisher, American Demographics
Age Power will rule the 21 st century, and we are woefully unprepared. Ken Dychtwald, Age Power : How the 21 st Century Will Be Ruled by the New Old
(1) Translate ALL departmental activities into discrete W.W.P.F. Products. (2) 100% go on the Web. (3) Non-awesome are outsourced (75%??). (4) Remaining Centers of Excellence are retained & leveraged to the hilt!
Typically in a mortgage company or financial services company, risk management is an overhead, not a revenue center. Weve become more than that. We pay for ourselves, and we actually make money for the company.Frank Eichorn, Director of Credit Risk Data Management Group, Wells Fargo Home Mortgage (Source: sas.com)
24. Leaders Push Their Organizations W-a-y Up the Value-added/ Intellectual Capital Chain
09.11.2000: HP bids $18,000,000,000 for PricewaterhouseCoopers Consulting business!
These days, building the best server isnt enough. Thats the price of entry. Ann Livermore, Hewlett-Packard
Gerstners IBM: Systems Integrator of choice. Global Services: $35B. Pledge/99: Business Partner Charter. 72 strategic partners, aim for 200. Drop many in-house programs/products. (BW/12.01).
You are headed for commodity hell if you dont have services. Lou Gerstner on IBMs coming revolution (1997)
We want to be the air traffic controllers of electrons. Bob Nardelli, GE Power Systems
Customer Satisfaction to Customer Success Were getting better at [Six Sigma] every day. But we really need to think about the customers profitability. Are customers bottom lines really benefiting from what we provide them? Bob Nardelli, GE Power Systems
Keep In Mind: Customer Satisfaction versus Customer Success
Was: Bunch of Guys Who Make Circuit Breakers Division. Is: GE Industrial Systems.
Nardellis goal ($50B to $100B by 2005): … move Home Depot beyond selling goods to selling home services. … He wants to capture home improvement dollars wherever and however they are spent. E.g.: house calls (At-Home Service: $10B by 05?) … pros shops (Pro Set) … home project management (Project Management System … a deeper selling relationship). Source: USA Today/06.14.2002
E.g. … UTC/Otis + Carrier: boxes to integrated building systems
UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent. ecompany.com/06.01 (E.g., UPS Logistics manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)
No longer are we only an insurance provider. Today, we also offer our customers the products and services that help them achieve their dreams, whether its financial security, buying a car, paying for home repairs, or even taking a dream vacation.Martin Feinstein, CEO, Farmers Group
The organizations we created have become tyrants. They have taken control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls that no one can scale or penetrate or even peer over. Frank Lekanne Deprez & René Tissen, Zero Space: Moving Beyond Organizational Limits.
In an era when terrorists use satellite phones and encrypted email, US gatekeepers stand armed against them with pencils and paperwork, and archaic computer systems that dont talk to each other. Boston Globe (09.30.2001)
Once devised in Riyadh, the tasking order took hours to get to the Navys six aircraft carriersbecause the Navy had failed years earlier to procure the proper communications gear that would have connected the Navy with its Air Force counterparts. … To compensate for the lack of communications capability, the Navy was forced to fly a daily cargo mission from the Persian Gulf and Red Sea to Riyadh in order to pick up a computer printout of the air mission tasking order, then fly back to the carriers, run photocopy machines at full tilt, and distribute the documents to the air wing squadrons that were planning the next strike. –Bill Owens, Lifting the Fog of War
Dawn Meyerreicks, CTO of the Defense Intelligence Systems Agency, made one of the most fateful military calls of the 21 st century. After 9/11 … her office quickly leased all the available transponders covering Central Asia. The implications should change everything about U.S. military thinking in the years ahead. The U.S. Air Force had kicked off its fight against the Taliban with an ineffective bombing campaign, and Washington was anguishing over whether to send in a few Army divisions. Donald Rumsfeld told Gen. Tommy Franks to give the initiative to 250 Special Forces already on the ground. They used satellite phones, Predator surveillance drones, and GPS- and laser-based targeting systems to make the air strikes brutally effective. In effect, they Napsterized the battlefield by cutting out the middlemen (much of the militarys command and control) and working directly with the real players. … The data came in so fast that HQ revised operating procedures to allow intelligence analysts and attack planners to work directly together. Their favorite tool, incidentally, was instant messaging over a secure network.Ned Desmond/Broadbands New Killer App/ Business 2.0/ OCT2002
IT MAY SOMEDAY BE SAID THAT THE 21 ST CENTURY BEGAN ON SEPTEMBER 11, 2001. … Al-Qaeda represents a new and profoundly dangerous kind of organizationone that might be called a virtual state. On September a virtual state proved that modern societies are vulnerable as never before.Time/09.09.2002
The deadliest strength of Americas new adversaries is their very fluidity, Defense Secretary Donald Rumsfeld believes. Terrorist networks, unburdened by fixed borders, headquarters or conventional forces, are free to study the way this nation responds to threats and adapt themselves to prepare for what Mr. Rumsfeld is certain will be another attack. … Business as usual wont do it, he said. His answer is to develop swifter, more lethal ways to fight. Big institutions arent swift on their feet in adapting but rather ponderous and clumsy and slow. The New York Times/09.04.2002
1. Its the (OUR!) organization, stupid! 2. Friction free! 3. No STOVEPIPES! 4. Stovepiping is a F.O.Firing Offense. 5. ALL on the web! (ALL = ALL.) 6. Open access! 6. Project Managers rule! (E.g.: Control the purse strings and evals.) 7. VALUE-ADDED RULES! (Services Rule.) (Experiences Rule.) (Brand Rules.) 8. SOLUTIONS RULE! (We sell SOLUTIONS. Period. We sell PRODUCTIVITY & PROFITABILITY. Period.) 9. Solutions = Our culture. 10. Partner with B.I.C. (Best-In-Class). Period.
12. All functions contribute equallyIS, HR, Finance, Purchasing, Engineering, Logistics, Sales, Etc. 13. Project Management can come from any function. 14. WE ARE ALL IN SALES. PERIOD. 15. We all invest in wiring the customer organization. 16. WE ALL LIVE THE BRAND. (Brand = Solutions. That MAKE MONEY FOR OUR CUSTOMER- PARTNER.) 17. We use the word PARTNER until we all want to barf! 18. We NEVER BLAME other parts of our organization for screw-ups. 19. WE AIM TO REINVENT THIS INDUSTRY! 20. We hate the word-idea COMMODITY.
21. We believe in High tech, High touch. 22. We are DREAMERS. 23. We deliver. (PROFITS.) (CUSTOMER SUCCESS.) 24. If we play the SOLUTIONS GAME brilliantly, no one can touch us! 25. Our TEAM needs 100% I.C.s (Imaginative Contributors). This is the ULTIMATE All Hands affair!
Innovation & Speeds New Basics* 1. XFTs are the culture. 2. Project-centric. 3. Open talent market. 4. Cause-based projects. 5. Ubiquitous open systems. ISat home & throughout supply chain. Web based. 6. F-L-A-T. *Innovation, Speed, CRM, Experience/ Solution demand this
Ebusiness is about rebuilding the organization from the ground up. Most companies today are not built to exploit the Internet. Their business processes, their approvals, their hierarchies, the number of people they employ … all of that is wrong for running an ebusiness. Ray Lane, Kleiner Perkins
[ Words to Live By … Hierarchy is an organization with its face toward the CEO and its ass toward the customer. Kjell Nordström and Jonas Ridderstråle, Funky Business]
Supply Chain 2000: When Joe Employee at Company X launches his browser, hes taken to Company Xs personalized home page. He can interact with the entire scope of Company Xs world – customers, other employees, distributors, suppliers, manufacturers, consultants. The browser – that is, the portal – resembles a My Yahoo for Company X and hooks into every network associated with Company X. The real trick is that Joe Employee, business partners and customers dont have to be in the office. They can log on from a cell phone, Palm Pilot, pager or home office system. Red Herring (09.2000)
26. Leaders Know that the HVA/Solutions Revolution rests upon: Experiences … Dream Fulfillment … Design.
A World of Scintillating/ Awesome/ WOW Experiences.
Experiences are as distinct from services as services are from goods. Joseph Pine & James Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage
Club Med is more than just a resort; its a means of rediscovering oneself, of inventing an entirely new me. Source: Jean-Marie Dru, Disruption
Guinness as a brand is all about community. Its about bringing people together and sharing stories. Ralph Ardill, Imagination, in re Guinness Storehouse
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. Harley exec, quoted in Results-Based Leadership
The Experience Ladder Experiences Services Goods Raw Materials
The [Mostly Ignored] Soul of Experiences: Design Rules!
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
Design is treated like a religion at BMW. Fortune
We dont have a good language to talk about this kind of thing. In most peoples vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. Design is the fundamental soul of a man-made creation. Steve Jobs
Hypothesis: DESIGN is the principal difference between love and hate!
THE BASE CASE: I am a design fanatic. Though not artistic, I love cool stuff. But it goes [much] further, far beyond the personal. Design has become a professional obsession. I SIMPLY BELIEVE THAT DESIGN PER SE IS THE PRINCIPAL REASON FOR EMOTIONAL ATTACHMENT [or detachment] RELATIVE TO A PRODUCT OR SERVICE OR EXPERIENCE. Design, as I see it, is arguably the #1 DETERMINANT of whether a product-service-experience stands out … or doesnt. Furthermore, its another one of those things that damn few companies put – consistently – on the front burner.
Message (?????): Men cannot design for womens needs.
Perhaps the macho look can be interesting … if you want to fight dinosaurs. But now to survive you need intelligence, not power and aggression. Modern intelligence means intuitionits female. Source: Philippe Starck, Harvard Design Magazine (Summer 1998)
WebWorld = Everything Web as a way to run your businesss innards Web as connector for your entire supply-demand chain Web as spiders web which re-conceives the industry Web/B2B as ultimate wake-up call to commodity producers Web as the scourge of slack, inefficiency, sloth, bureaucracy, poor customer data Web as an Encompassing Way of Life Web = Everything (P.D. to after-sales) Web forces you to focus on what you do best Web as entrée, at any size, to Worlds Best at Everything as next door neighbor
Message: eCommerce is not a technology play! It is a relationship, partnership, organizational and communications play, made possible by new technologies.
Message: There is no such thing as an effective B2B or Internet-supply chain strategy in a low-trust, bottlenecked- communication, six-layer organization.
Theres no use trying, said Alice. One cant believe impossible things. I daresay you havent had much practice, said the Queen. When I was your age, I always did it for half an hour a day. Why, sometimes Ive believed as many as six impossible things before breakfast. Lewis Carroll
Inet … … allows you to dream dreams you could never have dreamed before!
Supposejust supposethat the Web is a new world were just beginning to inhabit. Were like the earlier European settlers in the United States, living on the edge of the forest. We dont know whats there and we dont know exactly what we need to do to find out: Do we pack mountain climbing gear, desert wear, canoes, or all three? Of course while the settlers may not have known what the geography of the New World was going to be, they at least knew that there was a geography. The Web, on the other hand, has no geography, no landscape. It has no distance. It has nothing natural in it. It has few rules of behavior and fewer lines of authority. Common sense doesnt hold here, and uncommon sense hasnt yet emerged. David Weinberger, Small Pieces Loosely Joined David Weinberger
28. Needed? Type IV Leadership: Technology Dreamer-True Believer
Why focus on these late teens and twenty- somethings? Because they are the first young who are both in a position to change the world, and are actually doing so. … For the first time in history, children are more comfortable, knowledgeable and literate than their parents about an innovation central to society. … The Internet has triggered the first industrial revolution in history to be led by the young. The Economist [12/2000]
8 Minutes * Dr. Sugata Mira, NIIT/ New Delhi/ 1999** *Ignorance to Surfing **And then theres oya yubi sedai, the thumb generation
36A. Leaders Know … Culture Change Takes But a Minute. (No Bull!)
What Do I Do First? One Minute Excellence!* *Thomas Watson
Culture Change is not Corporate. Culture Change is not a Program. Culture change does not take Years. Culture Change does not start Today. Culture Change starts Right Now! Culture Change Lives in the Moment! Culture Change is Entirely in Your Hands!
It was much later that I realized Dads secret. He gained respect by giving it. He talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a bishop or a college president. He was seriously interested in who you were and what you had to say. Sara Lawrence-Lightfoot, Respect
My favorite word is grace – whether its amazing grace, saving grace, grace under fire, Grace Kelly. How we live contributes to beauty – whether its how we treat other people or the environment. Celeste Cooper, designer
The BRAND lives (OR DIES) in the minutiae of the leaders moment- to-moment actions.
You must be the change you wish to see in the world. Gandhi
We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion. Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions to how we work with others. Companies will thrive on the basis of their stories and myths. Companies will need to understand that their products are less important than their stories. Rolf Jensen, Copenhagen Institute for Future Studies
Some people look for things that went wrong and try to fix them. I look for things that went right and try to build on them. Bob Stone/ Mr. Rego/ Confessions of an Uncivil Servant
Leaders aimed on changing their world identify palpable heroes, who executed palpable projects they point to these people and say to the masses, See, here it is, done by one of your own. (And then they deep-dip a few of those heroes to demo their seriousness.)
REAL Org Change: Demos & Models (Model Installations, ReGo Labs)/ Heroes (mostly extant: burned to reinvent govt)/ Stories & Storytellers (Props!)/ Chroniclers (Writers, Videographers, Pamphleteers, Etc.)/ Cheerleaders & Recognition (Pos>>Neg, Volume)/ New Language (Hot/Emotional/WOW)/ Seekers (networking mania)/ Protectors / Support Groups / End RunsPull Strategy (weird alliances, weird customers, weird suppliers, weird alumnae-JKC)/ Field Real People Focus (3 COs) (long way away)/ Speed (O.O.D.A. Loopsact before the bad guys can react) C.f., Bob Stone, Confessions of an Uncivil Servant
Each VP a V.C.: Portfolio of high-risk investments in people & ideas from all across the company.