1. Tom Peters’ EXCELLENCE ! “THE WORKS” 1966-2015 Chapter TWO: EXCELLENCE 30 November 2015 (10+ years of presentation slides at tompeters.com)

2. Contents/“The Works”/1966-2015/EXCELLENCE ! Contents/“The Works”/1966-2015/EXCELLENCE ! Chapter ONE: Execution/The “All-Important Last 95%” Chapter TWO: EXCELLENCE (Or Why Bother at All?) Chapter THREE: 34 BFOs/Blinding Flashes of the Obvious Chapter FOUR: People (REALLY!) First Chapter FIVE: Tech Tsunami/Software Is Eating the World++ Chapter SIX: People First/A Moral Imperative Circa 2015 Chapter SEVEN: Giants Stink/Age of SMEs/Be The Best, It’s the Only Market That’s Not Crowded It’s the Only Market That’s Not Crowded Chapter EIGHT: Innovate Or Die/W.T.T.M.S.W./ Whoever Tries The Most Stuff Wins++ Whoever Tries The Most Stuff Wins++ Chapter NINE: Nine Value-added Strategies Chapter TEN: The “PSF”/Professional Service Firm “Model” as Exemplar/“Cure All” as Exemplar/“Cure All” Chapter ELEVEN: You/Me/The “Age of ‘BRAND YOU’/‘Me Inc.’” Chapter TWELVE: Women Are Market #1 For Everything/ Women Are the Most Effective Leaders Women Are the Most Effective Leaders Chapter THIRTEEN: Leadership/46 Scattershot Tactics Chapter FOURTEEN: Avoid Moderation!/Pursue “Insanely Great”/Just Say “NO!” to Normal “Insanely Great”/Just Say “NO!” to Normal

3. STATEMENT OF PURPOSE This—circa November 2015—is my best shot. It is … “THE WORKS.” Some half-century in the making (from 1966, Vietnam, U.S. Navy ensign, combat engineer/Navy Seabees—my 1st “management” job—to today, 49 years later); but also the product of a massive program of self-directed study in the last 36 months. It includes, in effect, a 250-page book’s worth—50,000++ words—of annotation. The times are nutty—and getting nuttier at an exponential pace. I have taken as best I can the current context fully into account. But I have given equal attention to more or less eternal (i.e., human) verities that will continue to drive organizational performance and a quest for EXCELLENCE for the next several years—and perhaps beyond. (Maybe this bifurcation results from my odd adult life circumstances: 30 years in Silicon Valley, 20 years in Vermont.) Enjoy. Steal. P-L-E-A-S-E try something, better yet several somethings.* ** *** **** ***** *Make no mistake … THIS IS A 14-CHAPTER BOOK. I think and write in PowerPoint; I dearly hope you will join me in this cumulative—half century—journey. **My “Life Mantra #1”: WTTMSW/Whoever Tries The Most Stuff Wins. ***I am quite taken by N.N. Taleb’s term “antifragile” (it’s the title of his most recent book). The point is not “resilience” in the face of change; that’s reactive. Instead the idea is proactive—literally “getting off” on the madness per se; perhaps I somewhat anticipated this with my 1987 book, Thriving on Chaos. ****Re “new stuff,” this presentation has benefited immensely from Social Media—e.g., I have learned a great deal from my 125K+ twitter followers; that is, some fraction of this material is “crowdsourced.” ***** I am not interested in providing a “good presentation.” I am interested in spurring practical action. Otherwise, why waste your time—or mine? Note: There is considerable DUPLICATION in what follows. I do not imagine you will read this book straight through. Hence, to some extent, each chapter is more or less stand-alone. STATEMENT OF PURPOSE This—circa November 2015—is my best shot. It is … “THE WORKS.” Some half-century in the making (from 1966, Vietnam, U.S. Navy ensign, combat engineer/Navy Seabees—my 1st “management” job—to today, 49 years later); but also the product of a massive program of self-directed study in the last 36 months. It includes, in effect, a 250-page book’s worth—50,000++ words—of annotation. The times are nutty—and getting nuttier at an exponential pace. I have taken as best I can the current context fully into account. But I have given equal attention to more or less eternal (i.e., human) verities that will continue to drive organizational performance and a quest for EXCELLENCE for the next several years—and perhaps beyond. (Maybe this bifurcation results from my odd adult life circumstances: 30 years in Silicon Valley, 20 years in Vermont.) Enjoy. Steal. P-L-E-A-S-E try something, better yet several somethings.* ** *** **** ***** *Make no mistake … THIS IS A 14-CHAPTER BOOK. I think and write in PowerPoint; I dearly hope you will join me in this cumulative—half century—journey. **My “Life Mantra #1”: WTTMSW/Whoever Tries The Most Stuff Wins. ***I am quite taken by N.N. Taleb’s term “antifragile” (it’s the title of his most recent book). The point is not “resilience” in the face of change; that’s reactive. Instead the idea is proactive—literally “getting off” on the madness per se; perhaps I somewhat anticipated this with my 1987 book, Thriving on Chaos. ****Re “new stuff,” this presentation has benefited immensely from Social Media—e.g., I have learned a great deal from my 125K+ twitter followers; that is, some fraction of this material is “crowdsourced.” ***** I am not interested in providing a “good presentation.” I am interested in spurring practical action. Otherwise, why waste your time—or mine? Note: There is considerable DUPLICATION in what follows. I do not imagine you will read this book straight through. Hence, to some extent, each chapter is more or less stand-alone.

4. Epigraphs “Business has to give people enriching, rewarding lives … or it's simply not worth doing.” —Richard Branson “Your customers will never be any happier than your employees.” —John DiJulius “We have a strategic plan. It’s called ‘doing things.’ ” —Herb Kelleher “You miss 100% of the shots you never take.” —WayneGretzky “You miss 100% of the shots you never take.” —Wayne Gretzky “Ready. Fire. Aim.” —Ross Perot “Execution is strategy.” —Fred Malek “Avoid moderation.” —Kevin Roberts “I’m not comfortable unless I’m uncomfortable.” —Jay Chiat “It takes 20 years to build a reputation and five minutes to ruin it.” —John DiJulius on social media —John DiJulius on social media “Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” —Henry Clay “You know a design is cool when you want to lick it.” —Steve Jobs “This will be the women’s century.” —Dilma Rousseff “Be the best. It’s the only market that’s not crowded.” —George Whalin

5. First Principles. Guiding Stars. Minimums. *EXECUTION! The “Last 95%.” GET IT (Whatever) DONE. *EXCELLENCE. Always. PERIOD. *People REALLY First! Moral Obligation #1. *EXPONENTIAL Tech Tsunami. GET OFF ON CONTINUOUS UPHEAVALS! *Innovate or DIE! WTTMSW/Whoever Tries The Most Stuff Wins! *Women Buy (EVERYTHING)! Women Are the Best Leaders! Women RULE! *Oldies Have (All of) the Market Power! *DESIGN Matters! EVERYWHERE! *Maximize TGRs!/Things Gone RIGHT! *SMEs, Age of/“Be the Best, It’s the Only Market That’s Not Crowded.” *Moderation KILLS!

6. NEW WORLD ORDER ? ! 0810/2011: Apple > Exxon* 0724/2015: Amazon > Walmart** *Market capitalization; Apple became #1 in the world. **Market capitalization; Walmart is a “Fortune 1” company— the biggest in the world by sales.

7. Phew.

8. Contents/“The Works”/1966-2015/EXCELLENCE ! Contents/“The Works”/1966-2015/EXCELLENCE ! Chapter ONE: Execution/The “All-Important Last 95%” Chapter TWO: EXCELLENCE (Or Why Bother at All?) Chapter THREE: 34 BFOs/Blinding Flashes of the Obvious Chapter FOUR: People (REALLY!) First Chapter FIVE: Tech Tsunami/Software Is Eating the World++ Chapter SIX: People First/A Moral Imperative Circa 2015 Chapter SEVEN: Giants Stink/Age of SMEs/Be The Best, It’s the Only Market That’s Not Crowded It’s the Only Market That’s Not Crowded Chapter EIGHT: Innovate Or Die/W.T.T.M.S.W./ Whoever Tries The Most Stuff Wins++ Whoever Tries The Most Stuff Wins++ Chapter NINE: Nine Value-added Strategies Chapter TEN: The “PSF”/Professional Service Firm “Model” as Exemplar/“Cure All” as Exemplar/“Cure All” Chapter ELEVEN: You/Me/The “Age of ‘BRAND YOU’/‘Me Inc.’” Chapter TWELVE: Women Are Market #1 For Everything/ Women Are the Most Effective Leaders Women Are the Most Effective Leaders Chapter THIRTEEN: Leadership/46 Scattershot Tactics Chapter FOURTEEN: Avoid Moderation!/Pursue “Insanely Great”/Just Say “NO!” to Normal “Insanely Great”/Just Say “NO!” to Normal

9. Chapter TWO E X CELLENCE

10. 2.1 X3/4

12. I wrote a book in 1982. A few people bought it. Then, hooray, a few more …

13. In Search of Excellence/1982: 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

14. PeopleExecutionExcellence

15. PXX = PXX = People. People. eXecution. eXecution. eXcellence. eXcellence.

16. In Search of Excellence … in 3 words.* (*Circa 1982. Circa 2015.)

17. ActionPeopleCustomersValues

18. To be sure, the “Eight Basics.” (They’ve held up pretty darn well.) Nonetheless … In Search of Excellence in … 4 words on the prior slide. 4 words on the prior slide. (Circa 1982. Circa 2015.)

19. Excellence.2015: The Bedrock “Eleven Basics” Excellence.2015: The Bedrock “Eleven Basics” 1. A Bias for Action/Serious Play/Execution 4. People First/Training-Development Mania 2. Symbiosis With the Customer 3. Autonomy and Entrepreneurship 5. Hands On, Value-Driven 6. Simple Form, Lean Staff, Collaboration Imperative Imperative 7. Simultaneous Loose-Tight Properties 8. Ubiquitous Design-mindedness 9. Technology Fanaticism 10. Antifragile/Speed Demons

20. Excellence.2015: The Bedrock “Eleven Basics” Excellence.2015: The Bedrock “Eleven Basics” 1. A Bias for Action/Serious Play/Execution* 4. People First/Training-Development Mania 2. Symbiosis With the Customer 3. Autonomy and Entrepreneurship 5. Hands On, Value-Driven 6. Simple Form, Lean Staff, Collaboration Imperative Collaboration Imperative 7. Simultaneous Loose-Tight Properties 8. Ubiquitous Design-mindedness 9. Technology Fanaticism 10. Antifragile/Speed Demons *RED is changes from 1982 list.

21. Update 2015. Much the same. But important changes. (The changes—as well as the similarities—are imbedded in the material in this presentation.)

22. 2.2 X140 Excellence “Twitter-ized” Excellence “Twitter-ized”

23. In Search of Excellence “twitter-ized”/ <140 Characters: Cherish your people, cuddle your customers, wander around, “try it” beats In Search of Excellence “twitter-ized”/ <140 Characters: Cherish your people, cuddle your customers, wander around, “try it” beats “talk about it,” pursue Excellence, tell “talk about it,” pursue Excellence, tell the truth. the truth.127/Q.E.D.

24. In Search of Excellence.2015 … Twitter -ization. Twitter -ization.

25. My Story/40+ Years/140 Characters **Take charge of your life! **Aim high! **Be “Of service”! **Engage and empower others! **Follow the Golden Rule! **Act now! **Relentless! **No less than EXCELLENCE! My Story/40+ Years/140 Characters **Take charge of your life! **Aim high! **Be “Of service”! **Engage and empower others! **Follow the Golden Rule! **Act now! **Relentless! **No less than EXCELLENCE!

26. My life … Twitter -ized.

27. ( 2.3 By The Way … )

28. ExIn*: 1982-2002/Forbes.com DJIA: $10,000 yields EI: $10,000 yields * “Excellence Index”/Basket of 32 publicly traded stocks ExIn*: 1982-2002/Forbes.com DJIA: $10,000 yields $85,000 EI: $10,000 yields $140,050 * “Excellence Index”/Basket of 32 publicly traded stocks

29. I am often asked how the “Excellent companies” have fared. Some, to be sure, were bombs. But, on the 20 th anniversary of the book’s publication, in 2002, Forbes.com analyzed the stock market performance of the firms. The results, FYI, are on the prior slide. (In addition to the satisfactory performance, Forbes noted that, unlike the real world of stock-picker indices, this analysis precluded selling off stocks that were tanking— hence the Index is at a big disadvantage to standard indices; yet it had still done very well.) (For no particular reason, neither I nor anyone else seems to have done a subsequent analysis. Frankly, 20 years is a pretty good test.)

30. 2.4 X6 Just 6 Words*: But a Core Philosophy (*+7 Ss)

31. Hard is Soft. Soft is Hard.

32. Hard (numbers, plans) is Soft. Soft (people/relationships/culture) is Hard.

33. Action.People.Customers.Values. Some—most?—call these areas “soft”: Where are the numbers Where are the plans? Surely there is room for the numbers—and the plans. But they are the real “soft stuff”—malleable and manipulable. (As we saw again and again during the economic crisis.) The truly “hard stuff”—which can’t be faked or exaggerated—are the relationships with, for instance, our customers and our own people. “‘Hard’ is ‘soft.’ ‘Soft’ is ‘hard.’” Mantra #1 from In Search of EXCELLENCE. Mantra 1982. Mantra 2015.

34. “THE 7-S MODEL” STRATEGY STRUCTURE SYSTEMS STYLE SKILLS STAFF SUPER-ORDINATE GOAL “THE 7-S MODEL” STRATEGY STRUCTURE SYSTEMS STYLE SKILLS STAFF SUPER-ORDINATE GOAL

35. “The 7-S Model” “Hard S s ” (Strategy, Structure, Systems) “Soft S S ” (Style, Skills, Staff, Super-ordinate goal) “The 7-S Model” “Hard S s ” (Strategy, Structure, Systems) “Soft S S ” (Style, Skills, Staff, Super-ordinate goal)

36. “The 7-S Model” STRATEGY STRUCTURE SYSTEMS STYLE (CORPORATE “CULTURE,” “THE WAY WE DO THINGS AROUND HERE”) SKILLS (“DISTINCTIVE COMPETENCE/S”) STAFF (PEOPLE-TALENT) SUPER-ORDINATE GOAL (VISION, CORE VALUES) “The 7-S Model” STRATEGY STRUCTURE SYSTEMS STYLE (CORPORATE “CULTURE,” “THE WAY WE DO THINGS AROUND HERE”) SKILLS (“DISTINCTIVE COMPETENCE/S”) STAFF (PEOPLE-TALENT) SUPER-ORDINATE GOAL (VISION, CORE VALUES)

37. The “McKinsey 7-S Model” (or simply “7-S model”) that Bob Waterman and I developed in 1979 (with Tony Athos, Richard Pascale and Julien Phillips) has stood the test of time—36 years to date. Our current-day McKinsey colleagues claim it’s still the “most useful framework for assessing Organizational Effectiveness”—it underpins a great deal of McKinsey’s current work. The idea, encompassed by the “Hard is soft, Soft is Hard” notion, is that there are “soft Ss” as well as “hard Ss” that must be considered and managed-as-one to maximize organization well-being and competitive strength. Moreover—and here’s the rub—all 7 must in effect be perfectly aligned to achieve sustaining Excellence. (No mean feat!)

38. .

39. The 7-S model was/is to be laid out this way. The diagram implicitly introduces the crucial idea of … “fit.” Each of the “Ss” must be considered in relationship to the other six. This balancing/high-tension act is at the center of the leader’s role as Enterprise Architect.

40. “ If I could have chosen not to tackle the IBM culture head- on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of people is very, very hard. —IT IS THE GAME.” —Lou Gerstner, “ If I could have chosen not to tackle the IBM culture head- on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of people is very, very hard. [YET] I CAME TO SEE IN MY TIME AT IBM THAT CULTURE ISN’T JUST ONE ASPECT OF THE GAME —IT IS THE GAME.” —Lou Gerstner, Who Says Elephants Can’t Dance Who Says Elephants Can’t Dance

41. Hard to describe the meaning of this to me personally. Gerstner said again and again when he an I were at McKinsey that I was full of baloney for focusing on the “soft” “culture stuff.” Per this slide, from his autobiography featuring the IBM years, he apparently became a convert !

42. THE SOFT EDGE

43. Pillars of Soft-Edge Excellence TrustTeamsTasteSmartsStory Source: The Soft Edge, Rich Karlgaard

44. Rich Karlgaard is the publisher of Forbes magazine—and a Silicon Valley stalwart of the 1 st order. So it is especially interesting that he would write a book on “the soft stuff.” But The Soft Edge is just that—and his arguments are compelling. The bottom line, in Silicon Valley for example, is that you will not achieve more than a smidgeon of your tech potential unless the organization which carries out your mission emphasizes Rich’s “soft edge” traits. (The idea holds elsewhere as well. But the point is that even in Silicon Valley the “soft stuff” is paramount as one seeks lasting impact and excellence.)

45. “Far too many companies invest too little time and money in their soft-edge excellence. … The three main reasons for this mistake are: 1. The hard edge is easier to quantify. … 2. Successful hard-edge investment provides a faster return on investment. … 3. CEOs, CFO, chief operating officers, boards of directors, and shareholders speak the language of finance. 3. CEOs, CFO, chief operating officers, boards of directors, and shareholders speak the language of finance. …” Source: The Soft Edge, Rich Karlgaard

46. Soft-Edge Advantages Soft-Edge Advantages 1. Soft-edge strength leads to greater brand recognition, higher profit margins, … [It] is the ticket out of Commodityville. “2. Companies strong in the soft edge are better prepared to survive a big strategic mistake or cataclysmic disruption … “3. Hard-edge strength is absolutely necessary to compete, but it provides only a fleeting advantage.” Source: The Soft Edge, Rich Karlgaard

47. Amen. (Read the book. PLEASE.)

48. Hard is Soft. Soft is Hard.

49. Hard (numbers, plans) is Soft. Soft (people/relationships/culture) is Hard.

50. McKinsey: Culture > Strategy Wall Street Journal, 0910.13, interview: “What matters most to a company over time? Strategy or culture?” Dominic Barton, Managing Director, McKinsey & Co.: “Culture.” McKinsey: People > Strategy “People Before Strategy” —title, lead article, Harvard Business Review July-August 2015, by McKinsey MD Dominic Barton et al.

51. McKinsey fought me tooth and nail in the late 1970s. Strategy #1 was the unbending credo. Times change. The current McKinsey MD is singing a different tune—in fact from a different hymnal. Interesting.Eh?

52. 2.5 X1

53. “Mr. Watson, how long does it take to achieve excellence?”

54. Thomas Watson, legendary CEO of IBM.

55. “One minute. …”

56. “One minute. You make up your mind to never again consciously do something that is not excellent.” not excellent.”

57. EXCELLENCE starts inside you and is reflected—or not—in your most minute and temporal behaviors.

58. 2.6 X/BLD

59. “Everything can be taken from a man but one thing: the last of the human freedoms—to choose one’s attitude in any given set of circumstances, to choose one’s own way.” —Victor Frankl the last of the human freedoms—to choose one’s attitude in any given set of circumstances, to choose one’s own way.” —Victor Frankl

60. Frankl, one of the world’s greatest psychologists, was a survivor of a Nazi concentration camp.

61. BLD: Fact is, you CAN take ANY damned attitude YOU choose to work today! to work today! In fact, it's your … In fact, it's your … BLD/ B iggest L ife D ecision!

62. BIGGEST. Up to you. Soooo…..

63. EXCELLENCE is a PERSONAL choice … NOT an institutional choice!

64. In fact there are few items in this presentation that are more important than this one. Bottom line: YOUR CHOICE. PERIOD.

65. Joe J. Jones 1942 – 2015 HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN’T LET HIM!

66. There are a hundred hundred reasons why this or that desirable/exciting thing (SERVICE, EXCELLENCE) “can’t be done around here”*—or, at least, not today. But, in the end, it’s your tombstone, not “theirs.” (*I hear that damn refrain at every seminar ! )

67. 2.7 X3/5/7

68. CAUSE. (worthy of commitment) SPACE. (room for/encouragement for initiative by ALL) DECENCY. (respect, grace, integrity, civility)

69. It came out of nowhere … sprang from my keyboard unbidden. A(nother) “Theory of Everything” in … 3 words.* (*What can I say? I keep looking for clarity & brevity in presenting the main themes of my work since 1976.)

70. CAUSE. (worthy of commitment) SPACE. (room for/encouragement for initiative by ALL) DECENCY. (respect, grace, integrity, civility) SERVICE. (worthy of our clients’ & extended family’s continuing custom) EXCELLENCE. (PERIOD)

71. CAUSE. (worthy of commitment) SPACE. (room for/encouragement for initiative by ALL) DECENCY. (respect, grace, integrity, civility) SERVICE. (worthy of our clients’ & extended family’s continuing custom) EXCELLENCE. (PERIOD) SERVANT LEADERSHIP.

72. CAUSE. SPACE. DECENCY. SERVICE. EXCELLENCE. SERVANT LEADERSHIP.

73. I added 2 more ideas/2 more words. Then 1 more idea/another 2 words. Hence in the end, A … “Theory of Everything” in 7 words.

74. 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.)

75. Another 7

76. 2.8 A Sacred Trust

77. “LEADERS ‘DO’ PEOPLE. PERIOD.” —Anon.

78. LEADERSHIP IS A SACRED TRUST.* *President, classroom teacher, CEO, shop foreman

79. !

80. " Leadership is a gift. It's given by those who follow. You have to be worthy of it.” —General Mark Welsh, Commander, U.S. Air Forces Europe

81. !

82. 2.9 Engineering. NOT.

83. A LIBERAL ART

84. Response to question on his Response to question on his (Peter Drucker’s) “most important contribution”: “I focused this discipline on people and power; on values, structure, and constitution; and above all, on responsibilities— THAT IS, I FOCUSED THE DISCIPLINE OF MANAGEMENT ON MANAGEMENT AS A TRULY LIBERAL ART.” (18 January 1999) I FOCUSED THE DISCIPLINE OF MANAGEMENT ON MANAGEMENT AS A TRULY LIBERAL ART.” (18 January 1999)

85. Hard is Soft. Soft is hard. Management as a … LIBERAL ART. * ** (*P-l-e-a-s-e convey that to the business schools— fat chance getting an iota of reaction.) (**The consequences of this are enormous. The impact on people practices, for one giant thing, are mind boggling—starting, obviously with hiring.)

86. 2.10 X5

87. EXCELLENCE is not not not a “long-term” "aspiration.”

88. EXCELLENCE is not a “long-term” "aspiration.” EXCELLENCE is the ultimate short- term strategy. EXCELLENCE is … THE NEXT 5 MINUTES.* NEXT 5 MINUTES.* (*Or NOT.)

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

90. Translation: Reflect on your last five minutes— and next five minutes. Did they/will they measure up to the “Excellence Standard”? (That’s all there is, there ain’t no more.) Next five minutes. OR NOT.

91. “I shall tell you a great secret, my friend. Do not wait for the last judgment; it takes place every day.” —Albert Camus

92. Truer words …

93. 2.11 Excellence: The Thing About Joe …

94. “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 …

95. “ … 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

96. Phew! Wow!

97. Joe J. Jones 1942 – 2015 Net Worth $21,543,672.48

98. Not.

99. $$$$$$: Not the stuff of tombstones. Eh?

100. 2.12 EXCELLENCE: Beyond Success …

101. “[This year’s] graduates are told [by commencement speakers] to pursue happiness and joy. But, of course, when you read a biography of someone you admire, it’s rarely the things that made them happy that compel our admiration. It’s the things they did to court unhappiness—the things they did that were arduous and miserable, which sometimes cost them friends and aroused hatred. It’s excellence, not happiness, that we admire most.” —David Brooks, “It’s Not About You,” op-ed, New York Times, 30 May 2011

102. “Strive for Excellence. Ignore success.” “Strive for Excellence. Ignore success.” —Bill Young, race car driver

103. Not only do I agree with this sentiment—but I think it is profound. In higher mathematics the accuracy of a new proof is not enough. The proof must be parsimonious, beautiful in its own fashion. In the same way, “ugly success” may have its virtues, but also its vices. E.g., the winning sports team that exhibits arrogance rather than grace toward one’s defeated opponents. EXCELLENCE—to me—has its own rewards per se and is the mightiest of aspirations— particularly as one looks back in the hindsight of a decade or two.

104. 2.13 Excellence: Five Or Less Words To The Wise

105. EXCELLENCE/Five Or Less Words To The Wise EXCELLENCE/Five Or Less Words To The Wise 4 most important words: “What do you think?” (Dave Wheeler @ tompeters.com: “Most important 4 tompeters.com: “Most important 4 words in an organization.”) words in an organization.”) 4 most important words: “How can I help?” (Boss as CHRO/ Chief Hurdle Removal Officer) Chief Hurdle Removal Officer) 2 most important words: “Thank you!” (Appreciation/ Recognition) Recognition) 2 most important words: “All yours.” (“Hands-off” delegation/ Respect/Trust) Respect/Trust) 3 most important words: “I’m going out.” (MBWA/Managing By Wandering Around/In touch!) Wandering Around/In touch!) 2 most important words: “I’m sorry.” (Power of unconditional apology = Stunning! Marshall apology = Stunning! Marshall Goldsmith: #1 exec issue) Goldsmith: #1 exec issue) 5 most important words: “Did you tell the customer?” (Over- communicate) communicate) 2 most important words: “She says …” (“She” is the customer!)

106. EXCELLENCE/Five Or Less Words To The Wise EXCELLENCE/Five Or Less Words To The Wise 2 most important words: “Yes ma’am.” (Women are more often than not the best managers.) than not the best managers.) 2 most important words: “Try it!” (My only “for sure” in 49 years: Herb Kelleher: “We have a strategic Herb Kelleher: “We have a strategic plan, it’s called doing things.”/Bill plan, it’s called doing things.”/Bill Parcells: “Blame no one. Expect Parcells: “Blame no one. Expect nothing. Do something.”) nothing. Do something.”) 3 most important words: “Try it again!” (My only “for sure” 44 years: MOST TRIES WINS.) years: MOST TRIES WINS.) 2 most important words: “Good try!” (CELEBRATE “good failures.” Richard Farson/book: failures.” Richard Farson/book: Whoever Makes the Most Mistakes Whoever Makes the Most Mistakes Wins. Samuel Beckett: “Fail. Fail again. Wins. Samuel Beckett: “Fail. Fail again. Fail better.”) Fail better.”) 3 most important words: “At your service.” (Organizations exist to serve. Period. Leaders live to serve. to serve. Period. Leaders live to serve. Period.) Period.) 4 most important words: “How are we doing?” (To customers, regularly.) regularly.) 4 most important words: “How was Mary’s recital?” (Know your employees’ kids.) employees’ kids.) 2 most important words: “Let’s party!” (Celebrate “small wins” at the drop of a hat.) the drop of a hat.)

107. EXCELLENCE/Five Or Less Words To The Wise EXCELLENCE/Five Or Less Words To The Wise 1 most important word: “No.” (“To don’ts” > “To dos”) 1 most important word: “Yes.” (Hey, give it a shot/Anon. quote: “The best answer is always, ‘What the “The best answer is always, ‘What the hell.’”/Wayne Gretzky: “You miss hell.’”/Wayne Gretzky: “You miss 100% of the shots you don’t take.”) 100% of the shots you don’t take.”) 2 most important words: “Lunch today?” (“Social stuff” = Secret to problem/opportunity #1:/XFX/ to problem/opportunity #1:/XFX/ cross-functional Excellence.) cross-functional Excellence.) 4 most important words: “Thank Dick in accounting.” (Readily acknowledge help from other acknowledge help from other functions.) functions.) 2 most important words: “After you.” (Courtesy rules.) 3 most important words: “Thanks for coming.” (Civility. E.g., boss acknowledges employee coming to acknowledges employee coming to her/his office.) her/his office.) 2 most important words: “Great smile!” (Note & acknowledge good attitude.) good attitude.) 1 most important word: “Wow!” (The gold standard … for everything.) everything.) 1 most important word: “EXCELLENT!” (The … ONLY … acceptable standard/aspiration.) acceptable standard/aspiration.)

108. 2.14 Excellence: The 19Es

109. If Not Excellence, What? If Not Excellence Now, When? The “19 Es” of Excellence Enthusiasm. (Be an irresistible force of nature!) Energy. (Be fire! Light fires!) Exuberance. (Vibrate—cause earthquakes!) Execution. (Do it! Now! Get it done! Barriers are baloney! Excuses are for wimps! Accountability is gospel! Adhere to the Bill Parcells doctrine: “Blame nobody! Expect nothing! Do something!”) Adhere to the Bill Parcells doctrine: “Blame nobody! Expect nothing! Do something!”) Empowerment. (Respect and appreciation! Always ask, “What do you think?” Then: Listen! Liberate! Celebrate! 100% innovators or bust!) Then: Listen! Liberate! Celebrate! 100% innovators or bust!) Edginess. (Perpetually dancing at the frontier, and a little or a lot beyond.) Enraged. (Determined to challenge & change the status quo!) Engaged. (Addicted to MBWA/Managing By Wandering Around. In touch. Always.) Electronic. (Partners with the world 60/60/24/7 via electronic community building and entanglement of every sort. Crowdsourcing/doing power!) and entanglement of every sort. Crowdsourcing/doing power!) Encompassing. (Relentlessly pursue diverse opinions—the more diversity the merrier! Diversity per se “works”!) Emotion. (The alpha. The omega. The essence of leadership. The essence of sales. The essence of marketing. The essence. Period. Acknowledge it.) The essence of marketing. The essence. Period. Acknowledge it.) Empathy. (Connect, connect, connect with others’ reality and aspirations! “Walk in the other person’s shoes”—until the soles have holes!) in the other person’s shoes”—until the soles have holes!) Experience. (Life is theater! Make every activity-contact memorable! Standard: “Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.) “Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.) Eliminate. (Keep it simple!) Errorprone. (Ready! Fire! Aim! Try a lot of stuff and make a lot of booboos and then try some more stuff and make some more booboos—all of it at the speed of light!) and make some more booboos—all of it at the speed of light!) Evenhanded. (Straight as an arrow! Fair to a fault! Honest as Abe!) Expectations. (Michelangelo: “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.” Amen!) but that it is too low and we reach it.” Amen!) Eudaimonia. (Pursue the highest of human moral purpose—the core of Aristotle’s philosophy. Be of service. Always.) Excellence. (The only standard! Never an exception! Start now! No excuses! If not Excellence, what? If not Excellence now, when?) If not Excellence now, when?)

110. The “19 Es” of EXCELLENCE The “19 Es” of EXCELLENCE Enthusiasm! (Be an irresistible force of nature! Be fire! Light fires!) Exuberance! (Vibrate—cause earthquakes!) Execution! (Do it! Now! Get it done! Barriers are baloney! Excuses are for wimps! Accountability is gospel! Adhere to coach Bill Parcells’ for wimps! Accountability is gospel! Adhere to coach Bill Parcells’ doctrine: “Blame nobody!! Expect nothing!! Do something!!”) doctrine: “Blame nobody!! Expect nothing!! Do something!!”) Empowerment! (Respect! Appreciation! Ask until you’re blue in the face, “What do you think?” Then: Listen! Liberate! 100.00% innovators!) “What do you think?” Then: Listen! Liberate! 100.00% innovators!) Edginess! (Perpetually dance at the frontier and a little, or a lot, beyond.) Enraged! (Maintain a permanent state of mortal combat with the status-quo!) status-quo!) Engaged! (Addicted to MBWA/Managing By Wandering Around. In touch. Always.) Always.) Electronic! (Partner with the whole wide world 60/60/24/7 via all manner of electronic community building and entanglement. Crowdsourcing of electronic community building and entanglement. Crowdsourcing wins!) wins!) Encompassing! (Relentlessly pursue diversity of every flavor! Diversity per se generates big returns!) (Seeking superb leaders: Women rule!) per se generates big returns!) (Seeking superb leaders: Women rule!) Emotion! (The alpha! The omega! The essence of leadership! The essence of sales! The essence of design! The essence of life itself! essence of sales! The essence of design! The essence of life itself! Acknowledge it! Use it!) Acknowledge it! Use it!)

111. The “19 Es” of EXCELLENCE The “19 Es” of EXCELLENCE Empathy! (Connect! Connect! Connect! Click with others’ reality and aspirations! “Walk in the other person’s shoes”—until the soles aspirations! “Walk in the other person’s shoes”—until the soles have holes!) have holes!) Ears! (Effective listening in every encounter: Strategic Advantage No. 1! Believe it!) Believe it!) Experience! (Life is theater! It’s always showtime! Make every contact a “Wow” ! Standard: “Insanely Great”/Steve Jobs; “Radically a “Wow” ! Standard: “Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.) Thrilling”/BMW.) Eliminate! (Keep it simple!! Furiously battle hyper-complexity and gobbledygook!!) gobbledygook!!) Errorprone! (Ready! Fire! Aim! Try a lot of stuff, make a lot of booboos. CELEBRATE the booboos! Try more stuff, make more booboos! He CELEBRATE the booboos! Try more stuff, make more booboos! He who makes the most mistakes wins! Fail! Forward! Fast!) who makes the most mistakes wins! Fail! Forward! Fast!) Evenhanded! (Straight as an arrow! Fair to a fault! Honest as Abe!) Expectations! (Michelangelo: “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 that our aim is too high and we miss it, but that it is too low and we hit it.”) hit it.”) Eudaimonia! (The essence of Aristotelian philosophy: True happiness is pursuit of the highest of human moral purpose. Be of service! pursuit of the highest of human moral purpose. Be of service! Always!) Always!) EXCELLENCE! (The only standard! Never an exception! Start NOW! No excuses!) No excuses!)

112. 2.15.1 Why Not I?

113. Excellence. Always. If not Excellence, what? If not Excellence now, when?

114. This is my mantra. This is my life. (Fact is, though we rarely “make it,” I find an aspiration of less than excellence beyond my comprehension.)

115. The failure to pursue EXCELLENCE is incomprehensible to me.

116. We may not “get there”—to EXCELLENCE— but what is the point of most anything if one does not aspire to doing “it,” humble or grand, with passion and in pursuit of an admirable outcome ?

117. “If a man is called to be a street sweeper, he should sweep streets even as Michelangelo painted, or Beethoven composed music, or Shakespeare wrote poetry. He should sweep streets so well that all the hosts of heaven and earth will pause to say, here lived a great street sweeper who did his job well.” —Dr. Martin Luther King, Jr. a great street sweeper who did his job well.” —Dr. Martin Luther King, Jr.

118. To my point … Some might say this means one should not aspire to be “more” than a streetsweeper. Dr. King would doubtless agree at one level. But there is a larger and more universal point—the aspiration for EXCELLENCE, the way in which the given task is performed, not the prestige of the task. Beyond this, though, is the fact that in 9 of 10 instances an exhibition of EXCELLENCE per se at anything is the foremost calling card when it comes to moving in whatever direction one wishes. (I once heard General Colin Powell say the greatest of success principles—okay, he said “success”—is to do today’s job with all one’s might and not waste energy or time angling for the next job. Excellence/ success today is the ultimate “USP”/Unique Selling Proposition.)

119. 2.15.2 EXCELLENCE. Now. EXCELLENCE. Always.

120. Shorthand.

121. EXCELLENCE. Now. EXCELLENCE. Always. 1.People first, second, third, fourth … /The “business” of leaders is people: to inspire/engage/provide a trajectory of opportunity—enterprise of every size and type as “cathedral” for human development. "When I hire someone, that's when I go to work for them.” —John DiJulius 1A. Customer comes 2nd/ If you want to best “Wow!” customers then you must first Wow! those who serve the customers./"If you want staff to give great service, give great service to staff.”—Ari Weinzweig, Zingerman's/ “You have to treat your employees like customers.” —Herb Kelleher, on his #1 “secret to success.” 1B. Manager’s sole raison d’etre: Make each of my team members successful! members successful! 1C. Effective organizations: No bit players!

122. EXCELLENCE. Now. EXCELLENCE. Always. 1D. Appreciation. Acknowledgement. “The deepest human need is the need to be appreciated.” — human need is the need to be appreciated.” — Believe it! A few kind words are often remembered Believe it! A few kind words are often remembered for years! for years! 1E. 1st line supervisors. Every organization’s … most important … leadership cadre. Productivity is largely important … leadership cadre. Productivity is largely determined by the caliber of the 1st line boss. determined by the caliber of the 1st line boss. Selection and development of your “sergeants” must Selection and development of your “sergeants” must become an “obsession”—almost all do a half-assed become an “obsession”—almost all do a half-assed job. job. 1F. Weird/ There are no “normals” in the history books!/Insure a healthy supply of oddballs/Diversity of books!/Insure a healthy supply of oddballs/Diversity of every flavor = Fresh perspectives! Better decisions! every flavor = Fresh perspectives! Better decisions! 1G. Memories That Matter. And don’t./ “People stuff” sticks with you: You’ll look back on the handful of sticks with you: You’ll look back on the handful of people you developed who proceeded to change the people you developed who proceeded to change the world—and the multitude (if you’ve earned it) who world—and the multitude (if you’ve earned it) who say, “I grew most when I worked with you.” Ever seen say, “I grew most when I worked with you.” Ever seen a tombstone engraved with the deceased’s net worth? a tombstone engraved with the deceased’s net worth?

123. EXCELLENCE. Now. EXCELLENCE. Always. EXCELLENCE. Now. EXCELLENCE. Always. 2. You/me: Businesses no longer coddle. You’re in charge!/ “Brand you” —stand out for something charge!/ “Brand you” —stand out for something valuable, or else; learn something new every day, or valuable, or else; learn something new every day, or else!/“Distinct or Extinct!” else!/“Distinct or Extinct!” 3. Organizations Exist to Serve. PERIOD. 4. EXECUTION/ “Don’t forget to tuck the shower curtain into the bath tub.” —Conrad Hilton on into the bath tub.” —Conrad Hilton on his “sweat the details” obsession and #1 “success his “sweat the details” obsession and #1 “success secret”/ “Execution is strategy.” secret”/ “Execution is strategy.” —Fred Malek/ “Execution is the leader’s job #1.”—Larry —Fred Malek/ “Execution is the leader’s job #1.”—Larry Bossidy Bossidy 4A. “They do … ONE BIG THING at a time.” —Drucker on successful managers’ #1 trait. successful managers’ #1 trait. 4B. Resilience circa 2011: Understand it. Hire for it. Promote for it. Obsess on it. Promote for it. Obsess on it.

124. EXCELLENCE. Now. EXCELLENCE. Always. EXCELLENCE. Now. EXCELLENCE. Always. 5. MBWA/Managing By Wandering Around/ Starbucks’ Schultz visits 25 stores a week/ “In touch” is “not Schultz visits 25 stores a week/ “In touch” is “not optional”/You = Your calendar/Calendars never lie! optional”/You = Your calendar/Calendars never lie! 5A. Listening per se = Candidate for Core Value #1/ Listening per se is a profession./“If you don’t listen, Listening per se is a profession./“If you don’t listen, you don’t sell anything.”/Docs interrupt patients after you don’t sell anything.”/Docs interrupt patients after … 18 seconds. And you? … 18 seconds. And you? 5B. “What do you think?” “How can I help?” —MBWA 8/Eight words, repeated like a mantra while 8/Eight words, repeated like a mantra while “wandering around,” that unlock engagement/ “wandering around,” that unlock engagement/ success for multitudes. success for multitudes. 5C. Innovate by “Hanging out” /“You are what you eat.”/ “You will become like the five people you eat.”/ “You will become like the five people you associate with the most —a blessing or a curse.”/ associate with the most —a blessing or a curse.”/ Want “cool”? Expose yourself to cool! /Manage Want “cool”? Expose yourself to cool! /Manage “hanging out” zealously-formally —with customers, “hanging out” zealously-formally —with customers, interesting outsiders, etc. interesting outsiders, etc.

125. EXCELLENCE. Now. EXCELLENCE. Always. EXCELLENCE. Now. EXCELLENCE. Always. 5D. K = R = P (Kindness = Repeat business = Profit.) “Hard is soft. Soft is hard.” —#1 finding In Search of “Hard is soft. Soft is hard.” —#1 finding In Search of Excellence. Kindness is “hard”—and pay off in $$$$. Excellence. Kindness is “hard”—and pay off in $$$$. 5E. Apology Power—Awesome power: 3-minute “I’m sorry” call heals anything—do it religiously!/”Over- sorry” call heals anything—do it religiously!/”Over- the-top” response to even small booboo strengthens the-top” response to even small booboo strengthens customer relationships! customer relationships!

126. EXCELLENCE. Now. EXCELLENCE. Always. EXCELLENCE. Now. EXCELLENCE. Always. 6.“Little BIG Things”/Focus on “multipliers”: Walmart goes to big shopping cart = +50% “big stuff” sales boost!/“Wash your Hands” —save thousands of lives P.A. in hospitals! goes to big shopping cart = +50% “big stuff” sales boost!/“Wash your Hands” —save thousands of lives P.A. in hospitals! 6A. “Little BIG Things”: SMEs bedrock of all economies. Nurture them. SME’s battle cry per George Whalin: “Be the best. It’s the only market that’s not crowded.” per George Whalin: “Be the best. It’s the only market that’s not crowded.” 7. Apple > Exxon in market cap courtesy … DESIGN! /The big “Duh”: “Cool beats un- cool!”/Design candidate for “best way to differentiate goods-services in competitive markets.” 7A. TGRs/Things Gone Right. Wagon Wheel restaurant, Gill MA—clean restroom with fresh flowers.—we remember such touches more or less forever/ Manage-measure TGRs. Manage-measure TGRs. 7B. Scintillating Experiences. Howard Schultz on Starbucks: “At our core, we’re a coffee Starbucks: “At our core, we’re a coffee company, but the opportunity we have to extend the brand is beyond coffee; it’s entertainment.” company, but the opportunity we have to extend the brand is beyond coffee; it’s entertainment.”

127. EXCELLENCE. Now. EXCELLENCE. Always. EXCELLENCE. Now. EXCELLENCE. Always. 8. WOMEN Buy! WOMEN Rule! WOMEN’s World! Women buy 80% of everything—$28T world market/“Why Warren 80% of everything—$28T world market/“Why Warren Buffett Invests Like a Girl”—e.g., studies harder-holds Buffett Invests Like a Girl”—e.g., studies harder-holds longer-less frenzied buying and selling/Women’s longer-less frenzied buying and selling/Women’s leadership style fits 21st century less-hierarchical leadership style fits 21st century less-hierarchical enterprise./Evidence clear— Women well on the way to enterprise./Evidence clear— Women well on the way to 21st century economic domination! Brazil’s President 21st century economic domination! Brazil’s President Dilma Rousseff at UN: “the century of women.” Dilma Rousseff at UN: “the century of women.” 9. Web-Social Media/ “Everyone becomes our valued partner, a member of our community—and partner, a member of our community—and watchdog”/The Power of Co-creation —my “Top Biz watchdog”/The Power of Co-creation —my “Top Biz Book for 2010”/SM can be lynchpin of transformative Book for 2010”/SM can be lynchpin of transformative strategy—for organizations of every shape and size! strategy—for organizations of every shape and size! 10. Value added via transformation from “Customer satisfaction” to “ customer success” —huge difference- satisfaction” to “ customer success” —huge difference- opportunity! /E.g., IBM Global Services, from opportunity! /E.g., IBM Global Services, from afterthought to $60B/UPS Logistics/MasterCard afterthought to $60B/UPS Logistics/MasterCard Advisors/ IDEO, help clients create “culture of Advisors/ IDEO, help clients create “culture of innovation”/“The Geek Squad”—Best Buy's #1 strategic innovation”/“The Geek Squad”—Best Buy's #1 strategic point of differentiation. point of differentiation.

128. EXCELLENCE. Now. EXCELLENCE. Always. 11. Innovation “secret” #1: “Most tries wins.” / “A Bias for Action”—excellence trait #1, In Search of Excellence Action”—excellence trait #1, In Search of Excellence /“Ready. Fire! Aim.” —Ross Perot//“Instead of trying to /“Ready. Fire! Aim.” —Ross Perot//“Instead of trying to figure out the best way to do something and sticking figure out the best way to do something and sticking to it, just try out an approach and keep fixing it.” to it, just try out an approach and keep fixing it.” —Bert Rutan —Bert Rutan 11A. Try a lot = Fail a lot /“Fail. Forward. Fast.”/ “Fail faster, succeed sooner”—David Kelley /“Reward faster, succeed sooner”—David Kelley /“Reward excellent failures, punish mediocre successes”/ excellent failures, punish mediocre successes”/ Whoever Makes the Most Mistakes Wins —Richard Whoever Makes the Most Mistakes Wins —Richard Farson Farson 11B. “You miss 100% of the shots you never take.” —Wayne Gretzky —Wayne Gretzky

129. EXCELLENCE. Now. EXCELLENCE. Always. EXCELLENCE. Now. EXCELLENCE. Always. 12. Live WOW!/Zappos creed … “WOW Customers”/ eBay 14,000 employees, Amazon 20,000 eBay 14,000 employees, Amazon 20,000 employees, Craig’s List 30 employees; regardless of employees, Craig’s List 30 employees; regardless of issue, Where’s your “Wild and Wooly Craig’s issue, Where’s your “Wild and Wooly Craig’s List Option”?/ Final point in superstar adman Kevin List Option”?/ Final point in superstar adman Kevin Roberts’ Credo: “Avoid moderation!” Roberts’ Credo: “Avoid moderation!” 13. EXCELLENCE is a personal choice … not an institutional choice! EXCELLENCE is not an “aspiration” —it’s the next five minutes! EXCELLENCE is not an “aspiration” —it’s the next five minutes! 13A. EXCELLENCE. Always. If not EXCELLENCE, What? If not EXCELLENCE Now, When? If not EXCELLENCE Now, When?

130. 2.16 Why Not II?

131. “Why in the World did you go to Siberia?” go to Siberia?”

132. A half-dozen years ago I went to Novosibirsk, Siberia, to give a seminar. (Novosibirsk, center of Soviet scientific excellence, was now confronting the global economy—and looking for a new direction.) The unusual setting caused me to go back to “first principals” in my thinking about enterprise. I asked myself, for starters … “WHAT’S THE POINT?”

133. ENTERPRISE* (*AT ITS BEST): An emotional, vital, innovative, joyful, creative, entrepreneurial endeavor that elicits maximum concerted human concerted human potential in the potential in the wholehearted pursuit of EXCELLENCE in wholehearted pursuit of EXCELLENCE in service of others **Employees, Customers, Suppliers, Communities, Owners, Temporary partners service of others.** **Employees, Customers, Suppliers, Communities, Owners, Temporary partners

134. ENTERPRISE* (*AT ITS BEST) : An emotional, vital, innovative, joyful, creative, entrepreneurial endeavor that elicits maximum concerted human potential in the wholehearted pursuit of EXCELLENCE in service of others concerted human potential in the wholehearted pursuit of EXCELLENCE in service of others.

135. Enterprise, as I note … AT ITS BEST. (Obviously not always achieved—or, alas, even aspired to.) On the other hand … if this or something very much like it is not the aim, then … what is the point? Think about it. Please. (E.g., Consider the opposite of each word here—is, say, “joyless” acceptable?) (Photo is me and my interpreter, who turned out to have an economics PhD from the University of Maryland; on stage in Novosibirsk.)

136. “It may sound radical, unconventional, and bordering on being a crazy business idea. However— as ridiculous as it sounds—joy is the core belief of our workplace. Joy is the reason my company, Menlo Innovations, a customer software design and development firm in Ann Arbor, exists. It defines what we do and how we do it. It is the single shared belief of our entire team.” —Richard Sheridan, Joy, Inc.: How We Built a Workplace People Love

137. The industry is tough as nails, fastpaced—and unforgiving. And yet Menlo CEO Richard Sheridan insists that his raison d’etre, competitive advantage and success “secret” is … JOY! Again, please think about this. Carefully. What would be the literal translation in your world? And: WHY NOT ? (Seriously.)

138. 2.17 Why Not III?

139. Apple design: “Huge degree of care.” —Ian Parker, New Yorker, 23 March 2015, on Apple design chief Jony Ives

140. “Huge degree of caring” should—in my thoroughly biased opinion—be the hallmark of every professional’s work. In our own fashion, we should apply Jony Ive’s standard to everything we do. Starting—yes—with the emails we send. Why not? Care-in-communication: What could be more important to a professional?

141. “Expose yourself to the best things humans have done and then try to bring those things into what you are doing.” —Steve Jobs are doing.” —Steve Jobs

142. A profound challenge—and it goes a long way to explaining Apple’s excellence. “Huge degree of caring” and exposure to “the best things humans have done.” Why shouldn’t this standard apply to everything that every one of us does?

143. 2.18 ORGANIZATIONS THAT ARE AS EXCELLENT/WELL DESIGNED AS AN APPLE DEVICE

144. “New technology, by itself, has little economic benefit. … The economic benefits arise not from innovation itself, but from the entrepreneurs who eventually discover ways to put innovation to practical use— and, most critically, from the organizational changes through which businesses reshape themselves to take advantage of new technology.” —Marc Levinson, The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger

145. The shipping container only “changed the world” … decades... after its creation. First “everything” had to change. That is, the entire nature of ports and the transportation system writ large. Which is to say, it’s the subsequent and painstaking and political and “non-instant” … ORGANIZATIONAL ARRANGEMENTS... that make all the difference, not the technology per se.

146. “ Management” as conventionally perceived is a dreary/ misleading/constrained word. E.g., mgt/standard usage = Shouting orders in the slave galley. Consider, please, a more encompassing/more accurate definition: “‘Management’ is the arrangement and animation of human affairs in pursuit of desired outcomes.” Management is not about Theory X vs. Theory Y/“top down” vs. “bottom up.” Management is about the essence of human behavior (Drucker called it a “liberal art”), how we fundamentally arrange our collective efforts in order to survive, adapt—and, one hopes, thrive. (E.g., Hall of Fame management document: Constitution of the United States of America.)

147. As Peter Drucker, in particular, taught us, management is an artform of the utmost importance to humanity— consider the U.S. Constitution, one of the greatest management documents in human history. (Yes, it is a “management document.”) We think of the care and craft that goes into the design of, say, an Apple product. But we don’t typically think in the same way about “management architecture.” That is a mistake of the first order. Arrangement of human affairs to produce a desired and sustainable result is by definition Leadership Team Task #1. I am urging you to think about your organizational architecture the same way Steve Jobs thought about one of his landmark Apple devices. As Peter Drucker, in particular, taught us, management is an artform of the utmost importance to humanity— consider the U.S. Constitution, one of the greatest management documents in human history. (Yes, it is a “management document.”) We think of the care and craft that goes into the design of, say, an Apple product. But we don’t typically think in the same way about “management architecture.” That is a mistake of the first order. Arrangement of human affairs to produce a desired and sustainable result is by definition Leadership Team Task #1. I am urging you to think about your organizational architecture the same way Steve Jobs thought about one of his landmark Apple devices.

148. In Good Business, Mihaly Csikszentmihalyi (the FLOW guru ) argues persuasively that business has become the center of society. As such, an obligation to community is front & center. Business as societal bedrock, per Csikszentmihalyi, has the RESPONSIBILITY to increase the … “SUM OF HUMAN WELL- BEING.” Business is NOT “part of the community.” In terms of how adults collectively spend their waking hours: Business IS the community. And should act accordingly. The (REALLY) good news: Community mindedness is a great way (the BEST way?) to have spirited/committed/customer-centric work force—and, ultimately, increase (maximize?) growth and profitability.

149. BUSINESS IS NOT “PART OF THE COMMUNITY. BUSINESS IS THE COMMUNITY. HENCE BUSINESS ENTAILS AN ENORMOUS MORAL COMPONENT.. I love this! (And “buy it” 100%.) Read it. Re-read it. Think about it. Discuss it. Act on it.

150. Business’ Moral Imperative: “[INCREASE THE] SUM OF HUMAN WELL- BEING.” Source: Good Business, Mihaly Csikszentmihalyi

151. Yup. Wow. (Up for it?*) (*Actually, you have no choice.) ( Now more than ever—e.g., tech driven changes are playing havoc with employment, and we’re barely at the beginning of the beginning.)

152. 2.19 SERVICE. PERIOD.

153. ORGANIZATIONS EXIST TO SERVE. PERIOD. LEADERS LIVE TO SERVE. PERIOD. SERVE. PERIOD.

154. PERIOD. (And if this is NOT your measure …)

155. EXCELLENCE. Always. If not EXCELLENCE, what? If not EXCELLENCE now, when? EXCELLENCE is not an "aspiration." EXCELLENCE is not a "journey." EXCELLENCE is the next five minutes. Organizations exist to SERVE. Period. Leaders exist to SERVE. Period. SERVICE is a beautiful word. SERVICE is character, community, commitment. (And profit.) SERVICE is a beautiful word. SERVICE is not "Wow." SERVICE is not "raving fans." SERVICE is not "a great experience." SERVICE is not "a great experience." Service is "just" that—SERVICE.

156. My take on “all this” … understanding the role of enterprise by combining the call to SERVE and the aspiration to EXCELLENCE. (In Search of Excellence, my 1982 book with Bob Waterman, is generally regarded as the book that married the idea of Excellence per se to the practice of business. The quest for Excellence is the unyielding bedrock of enterprise—as we saw it. And to that I now say with passion and urgency … add service to excellence at the “co-top” of the veeeeery short list.)

157. 2.20 EXCELLENCE. Not.

158. “At a party given by a billionaire on Shelter Island, Kurt Vonnegut informs his pal, Joseph Heller, that their host, a hedge fund manager, had made more money in a single day than Heller had earned from his wildly popular novel Catch-22 over its whole history. Heller responds …

159. “At a party given by a billionaire on Shelter Island, Kurt Vonnegut informs his pal, Joseph Heller … that their host, a hedge fund manager, had made more money in a single day than Heller had earned from his wildly popular novel Catch-22 over its whole history. Heller responds … ‘ Yes, but I have something he will never have … Source: John Bogle, Enough. The Measures of Money, Business, and Life (Bogle is founder of the Vanguard Mutual Fund Group) Source: John Bogle, Enough. The Measures of Money, Business, and Life (Bogle is founder of the Vanguard Mutual Fund Group)

160. At a party given by a billionaire on Shelter Island, Kurt Vonnegut informs his pal, Joseph Heller … that their host, a hedge fund manager, had made more money in a single day than Heller had earned from his wildly popular novel Catch-22 over its whole history. Heller responds … Yes, but I have something he will never have … enough. enough. Source: John Bogle, Enough. The Measures of Money, Business, and Life (Bogle is founder of the Vanguard Mutual Fund Group) Source: John Bogle, Enough. The Measures of Money, Business, and Life (Bogle is founder of the Vanguard Mutual Fund Group)

161. If there is a “must read” book in the current century that examines the moral role of business in society, it’s Jack Bogle’s Enough. The Measures of Money, Business, and Life. (The Vonnegut-Heller exchange launches the book.)

162. “Too Much Cost, Not Enough Value” “Too Much Speculation, Not Enough Investment” “Too Much Complexity, Not Enough Simplicity” “Too Much Counting, Not Enough Trust” “Too Much Business Conduct, Not Enough Professional Conduct” “Too Much Salesmanship, Not Enough Stewardship” “Too Much Focus on Things, Not Enough Focus on Commitment” Focus on Commitment” “Too Many Twenty-first Century Values, Not Enough Eighteenth-Century Values” “Too Much ‘Success,’ Not Enough Character” Source: Jack Bogle, Enough! (chapter titles)

163. Revealing—and compelling—chapter titles from Enough. The Measures of Money, Business, and Life. Read it. P-L-E-A-S-E.

164. 2.21 EXCELLENCE. Not.

165. There is a great deal of mythology around “excellence”—a lot of stuff that just ain’t true. Here’s a sample.

166. Five () Questionable “Foundation Myths” Five ( VERY ) Questionable “Foundation Myths”

167. Five Sustaining—and Very Dangerous—Myths 1. Star CEOs drive big enterprise performance differences 2. CEOs must maximize shareholder value 3. Stars are stars and maintain their stellar performance in new settings 4. It’s 2015, dude: hustle beats patience 5. Introverts are not my cup of tea: hey, noisy times call for noisy people

168. FIVE MYTHS, FIVE BOOKS FIVE MYTHS, FIVE BOOKS *Michael Dorff, Indispensable and Other Myths *Lynn Stout, The Shareholder Value Myth: How Putting Shareholders First Harms How Putting Shareholders First Harms Investors, Corporations, and the Public Investors, Corporations, and the Public *Boris Groysberg, Chasing Stars: The Myth of Talent and the Portability of Performance *Frank Partnoy, Wait: The Art and Science Talent and the Portability of Performance *Frank Partnoy, Wait: The Art and Science of Delay of Delay *Susan Cain, Quiet: The Power of Introverts in a World That Can’t Stop Talking in a World That Can’t Stop Talking

169. Five relatively new—and superbly researched— books attack five management/performance Foundation Myths.

170. 2.21.1 The “Big Two” CEO Myths/#1: 2.21.1 The “Big Two” CEO Myths/#1: Do CEOs Matter?

171. High-Impact CEOs? “The belief that CEOs are the most important cause of corporate performance is deep and widespread but largely lacks empirical support. Even fervent advocates of CEO power have calculated the CEO’s impact as small and easily swamped by environmental and company-specific variables. … The reality is that for the vast majority of companies, one competent CEO is very much like another. … The causation myth’s durability is also due to our tendency to credit the leader for a group’s success or failure. Any number of studies have demonstrated that subjects wrongly assign responsibility to a group’s leader even when the true cause was truly something else.” —Michael Dorff, Indispensable and Other Myths

172. High-Impact CEOs? “Michael Dorff, author of Indispensable and Other Myths, told me that with large, established companies, ‘It’s hard to show that picking one qualified CEO over another has a major impact on performance.’ Indeed, a that picking one qualified CEO over another has a major impact on performance.’ Indeed, a major study by the economists Xavier Gabaix and Augustin Landier, who happen to believe that current compensation levels are economically efficient, found that if the and Augustin Landier, who happen to believe that current compensation levels are economically efficient, found that if the company with the 250 th most talented CEO [by economic measures] suddenly managed to hire the most talented CEO, its value would increase by a mere 0.016%.” —James Surowiecki, “Why CEO Pay Reform Failed,” The New Yorker, 0420.15

173. Throw in the towel? Leaders don’t make a difference? Not the point. But it is a cautionary tale. The answer to every problem is not to seek “the tall man on the white horse” to save the day. Life is a lot more ragged than that. Carry on. Muddle through. (And maybe try a few of the tactics offered up in this chapter?!)

174. 2.21.2 The “Big Two” CEO Myths/#2: Must CEOs Maximize Shareholder Value?

175. “The notion that corporate law requires directors, executives, and employees to maximize shareholder wealth simply isn’t true. There is no solid legal support for the claim that directors and executives in U.S. public corporations have an enforceable legal duty to maximize shareholder wealth. The idea is fable.” —Lynn Stout, professor of corporate and business law, Cornell Law school, in The Shareholder Value Myth: How Putting Shareholders First Harms Investors, Corporations, and the Public

176. “Courts uniformly refuse to actually impose sanctions on directors or executives for failing to pursue one purpose over another. In particular, courts refuse to hold directors of public corporations legally accountable for failing to maximize shareholder wealth.” —Lynn Stout, professor of corporate and business law, Cornell Law school, in The Shareholder Value Myth: How Putting Shareholders First Harms Investors, Corporations, and the Public

177. Lynn Stout’s slim volume is a worthy read. That is … a first-order myth buster.

178. “On the face of it, shareholder value is the dumbest idea in the world. Shareholder value is a result, not a strategy. … Your main constituencies are your employees, your customers and your products.” —Jack Welch, FT, 0313.09, page 1

179. Jack Welch? THE … Jack Welch? “Shareholder Value Jack”? YUP.

180. 2.21.3 The “Superstar” Myth

181. “Reliance on stars is a highly speculative practice, since we really don’t know very much about what drives outstanding individual performance. … Chapter 3 presents our most central and global finding about the effects of changing employers on star analysts’ performance. In short, exceptional performance is far less portable than is widely believed. Global stars experienced an immediate degradation in performance. Even after five years at a new firm, star analysts who changed employers underperformed comparable star analysts who stayed put.” —Boris Groysberg, professor of business administration, Harvard, Chasing Stars: The Myth of Talent and the Portability of Performance

182. Another truism bites the dust.

183. “Reliance on stars is a highly speculative practice, since we really don’t know very much about what drives outstanding individual performance. … Chapter 7 looks at the phenomenon of hiring entire teams. … Compared to stars who moved alone, those who moved in teams did not suffer a performance decline, suggesting that team-specific skills have a marked effect on performance.” —Boris Groysberg, professor of business administration, Harvard, Chasing Stars: The Myth of Talent and the Portability of Performance

184. Context matters: THE BIG “DUH”!

185. “Reliance on stars is a highly speculative practice, since we really don’t know very much about what drives outstanding individual performance. … Chapter 8 looks at portability of performance in individual terms by examining the role of gender. Our data produced an unexpected finding: Star women’s skills were more portable than those of their male counterparts. Women in a male-dominated profession appeared to nurture stronger external (and therefore portable) relationships in the face of institutional barriers to creating strong in-house relationships. When they moved, therefore, they could take their outside (not firm-specific) network with them. They suffered less from the loss of firm- specific relationships that never developed in the first place. Also, women were apparently more strategic than men about changing jobs. …” —Boris Groysberg, professor of business administration, Harvard, Chasing Stars: The Myth of Talent and the Portability of Performance

186. Gender matters given institutional realities: THE BIG “DUH” II.

187. 2.21.4 Wait: The Art and Science of Delay —Frank Partnoy

188. I can hardly exaggerate the degree to which this book impacted me. I have instinctively bought into the idea (certainty) that “Wild times/‘Moore’s Law’” means our default position must always be … race. Haste is hardly un-important. Partnoy challenges us. In fact, with so much change in the air, it is, counter-intuitively, the quintessential time to strategically … SLOW DOWN (AND THINK) BEFORE WE ACT.

189. “The central element of good decision-making is a person’s ability to manage delay.” —Frank Partnoy, Wait: The Art and Science of Delay

190. “Central element”/“define who we are” is strong and provocative language. At the least, ( VERY ) worth thinking about.

191. “The essence of intelligence would seem to be in knowing when to think and act quickly, and knowing when to think and act slowly.” —Robert Sternberg, in Frank Partnoy, Wait: The Art and Science of Delay

192. “Thinking about the role of delay is a profound and fundamental part of being human. … The amount of time we take to reflect on decisions will define who we are. Is our mission simply to be another animal, or are we here for something more?” —Frank Partnoy, Wait: The Art and Science of Delay

193. “Life might be a race against time, but is enriched when we rise above our instincts and stop the clock to process and understand what we are doing and why.” —Frank Partnoy, Wait: The Art and Science of Delay

194. More … VERY … strong language. Once again, worthy of great reflection. SPEED SAVES. SPEED KILLS.

195. “Given the fast pace of modern life, most of us tend to react too quickly. … Technology surrounds us, speeding us up. We feel its crush every day. Yet the best time managers are comfortable pausing for as long as necessary before they act, even in the face of the most pressing decisions.. Some seem to slow down time....” —Frank Partnoy, Wait: The Art and Science of Delay

196. “In most situations, we should take more time than we do. The longer the wait, the better. And once we have a sense of how long a decision should take, we generally should delay the moment of decision until the last possible instant.” —Frank Partnoy, Wait: The Art and Science of Delay

197. “Researchers have found again and again that children who can delay their reactions end up happier and more successful than their snap-reacting playmates. They are superior at building social skills, feeling empathy, and resolving conflicts, and they have higher cognitive ability.” —Frank Partnoy, Wait: The Art and Science of Delay

198. “When we thin slice, we reach powerful unconscious conclusions about others in seconds. Unfortunately, they are often wrong.” —Frank Partnoy, Wait: The Art and Science of Delay

199. “ [Legendary fighter pilot and military strategist John] Boyd could outmaneuver his opponents, not by acting first, but by waiting for his opponent to act first.” —Frank Partnoy, Wait: The Art and Science of Delay

200. “ … computer programmer, investor, writer, painter Paul Graham wrote, ‘The most impressive people I know are all terrible procrastinators.’ ” —Frank Partnoy, Wait: The Art and Science of Delay

201. I OFFER NO COURSE OF ACTION. I WAS TAKEN ABACK. PARTNOY HAS MADE ME REFLECT. WHO COULD ASK FOR MORE? Over to you …

202. 2.21.5 Quiet: The Power of Introverts in a World That Can’t Stop Talking —Susan Cain

203. “We live with a value system that I call the Extrovert Ideal—the omnipresent belief that the ideal self is gregarious, alpha, and comfortable in the spotlight. The archetypal extrovert prefers action to contemplation, risk-taking to heed-taking, certainty to doubt. … We think that we value individuality, but all too often we admire one type of individual … Introversion is now a second-class personality trait. … The Extrovert Ideal has been documented in many studies. Talkative people, for example, are rated as smarter, better looking, more interesting, and more desirable as friends. Velocity of speech counts as well as volume: We rank fast talkers as more competent and likeable than slow ones. But we make a grave mistake to embrace the Extrovert Ideal so unthinkingly. … As the science journalist Winifred Gallagher writes, ‘The glory of the disposition that stops to consider stimuli rather than rushing to engage with them is its long association with intellectual and artistic achievement. Neither E = mc squared or Paradise Lost was dashed off by a party animal.’ Even in less obviously introverted occupations, like finance, politics, and activism, some of the greatest leaps forward were made by introverts … figures like Eleanor Roosevelt, Warren Buffett and Gandhi achieved what they did not in spite of but because of their introversion.” — Susan Cain, Quiet: The Power of Introverts in a World That Can’t Stop Talking

204. Susan Cain’s Quiet: The Power of Introverts in a World That Can’t Stop Talking made a profound impact on me. We tend to favor the “noisy ones”—and thence downplay the power of the 50% amongst us who are “the quiet ones.” I.e., we blow off (or, at least, undervalue) almost 50% 0f the talent pool. Talk about a “missed opportunity” !

205. “Among the most effective leaders I have encountered and worked with in half a century, some have locked themselves into their offices and others were ultra-gregarious. Some were quick and impulsive, some studied the situation and took forever to come to a decision. The one and only personality trait the effective ones did have in common was something they did not have: They had little or no ‘charisma,’ and little use for the term.” —Peter Drucker, in Susan Cain, Quiet: The Power of Introverts in a World That Can’t Stop Talking

206. “Most inventors and engineers I have met are like me—they’re shy and they live in their heads. … They work best when they are alone, and can control an invention’s design. … I’m going to give you some advice that might be hard to take: Work alone. You’re going to be best able to design revolutionary products and features. …” —from Steve Wozniak, in Susan Cain, Quiet: The Power of Introverts in a World That Can’t Stop Talking

207. “If we assume that quiet and loud people have roughly the same number of good (and bad) ideas, then we should worry if the louder and more forceful people always carry the day.” — Susan Cain, Quiet: The Power of Introverts in a World That Can’t Stop Talking

208. “Open-plan workers are more likely to suffer from high blood pressure and elevated stress levels and get the flu; they argue more with their colleagues. … Introverts seem to their colleagues. … Introverts seem to know these things intuitively and resist being herded together. …” Video game design company Backbone Entertainment’s creative director: “We switched over to cubicles [from a ‘warehouse’ format] and were worried about it. You’d think in a creative environment people would hate that. But it turns out they prefer having nooks and crannies they can hide away in and be away a creative environment people would hate that. But it turns out they prefer having nooks and crannies they can hide away in and be away from everybody.” from everybody.” Source: Susan Cain, Quiet: The Power of Introverts in a World That Can’t Stop Talking

209. “The results were unambiguous. The men in 23 of the 24 groups produced more ideas when they worked on their own than when they worked as a group. They also produced ideas of equal or higher quality when working individually. And the advertising executives were the advertising executives were no better at group work than no better at group work than than the presumably introverted research scientists.” — Susan Cain, Quiet: The Power of Introverts in a World That Can’t Stop Talking

210. “ [Adam Grant] predicted extroverts would be better telemarketers, but it turned out there was zero correlation extroversion levels and cold-calling prowess. ‘The extroverts would make these wonderful calls, but they’d often be distracted and lose focus. The introverts would talk quietly, but boom, boom, boom they were making the calls; they were focused and determined.’” — Susan Cain, Quiet: The Power of Introverts in a World That Can’t Stop Talking

211. “In a gentle way, you can shake the world.” —Gandhi, from Susan Cain, Quiet: The Power of Introverts in a World That Can’t Stop Talking

212. Conversational pairings/experiment: “The introverts and extraverts participated about equally, giving the lie to the idea that introverts talk less. But the introvert pairs tended to focus on one or two serious subjects of conversation, while the extrovert pairs lighter-hearted and wider- ranging topics.” — Susan Cain, Quiet: The Power of Introverts in a World That Can’t Stop Talking

213. “If you are a manager, remember that one third to one half of your workforce is probably introverted, whether they appear that way or not. Think twice about how you design your organization’s office space. Don’t expect introverts to get jazzed up about open office plans or, for that matter, lunchtime birthday parties or teambuilding retreats. Make the most of introverts’ strengths— these are the people who can help you think deeply, strategize, solve complex problems, and spot canaries in your coal mine. “Also remember the dangers of the new groupthink. If it’s creativity you’re after, ask your employees to solve problems alone before sharing their ideas … Don’t mistake assertiveness or elegance for good ideas. If you have a proactive workforce (and I hope you do), remember that they may perform better under an introverted leader than under an extroverted or charismatic one.” — Susan Cain, Quiet: The Power of Introverts in a World That Can’t Stop Talking

214. “The next time you see a person with a composed face and a soft voice, remember that inside her mind she might be solving an equation, composing a sonnet, designing a hat. She might, that is, be deploying the power of quiet.” — Susan Cain, Quiet: The Power of Introverts in a World That Can’t Stop Talking

215. I repeat, we more often than not blow off half the population of candidates for hiring—and subsequently promotion.

216. 2.22 EXCELLENCE.

217. Excellence. Always. If not Excellence, what? If not Excellence now, when?

218. EXCELLENCE is a PERSONAL choice … NOT an institutional choice!

219. EXCELLENCE is not a “long-term” "aspiration.” EXCELLENCE is the ultimate short- term strategy. EXCELLENCE is … THE NEXT 5 MINUTES.* NEXT 5 MINUTES.* (*Or NOT.)

220. ORGANIZATIONS EXIST TO SERVE. PERIOD. LEADERS LIVE TO SERVE. PERIOD. SERVE. PERIOD.

221. Hard is Soft. Soft is Hard.

222. Hard (numbers, plans) is Soft. Soft (people/relationships/culture) is Hard.