Conrad Hilton … 1 1

Conrad Hilton, at a gala celebrating his career, was called to the podium and asked, “What were the most important lessons you learned in your long and distinguished career?” His answer … 2 2

“REMEMBER TO TUCK THE SHOWER CURTAIN INSIDE THE BATHTUB.” 3

You get ’em in the door with “location, location, location”—and a terrific architect. You keep ’em coming back with the tucked in shower curtain!* *Profit rarely comes from transaction #1; it is a byproduct of transaction #2, #3, #4 …

“EXECUTION IS STRATEGY.” —Fred Malek 5

“The score takes care of itself.” —Bill Walsh 6

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

2X

(Slides at tompeters.com and excellencenow.com) LONG Tom Peters’ EXCELLENCE. ALIGNMENT. Corporate Visions 19 September 2013 (Slides at tompeters.com and excellencenow.com) 9

2X “When Friedman slightly curved the right angle of an entrance corridor to one property, he was ‘amazed at the magnitude of change in pedestrians’ behavior’ (the percentage who entered increased from one-third to nearly two-thirds.” —Natasha Dow Schull, Addiction By Design: Machine Gambling in Las Vegas

“Pleasing” odor #1 vs. “pleasing” odor #2: +45% revenue Machine Gambling “Pleasing” odor #1 vs. “pleasing” odor #2: +45% revenue Source: “Effects of Ambient Odors on Slot-Machine Useage in Las Vegas Casinos,” reported in Natasha Dow Schull, Addiction By Design: Machine Gambling in Las Vegas (66% revenue, 85% profit)

Source: PLOS ONE (via The Atlantic CITIES /0429.13) Glaring Eyes: -62% Source: PLOS ONE (via The Atlantic CITIES /0429.13)

can be shifted by the quirks of gadgets. It is impossible to “When I work with experimental digital gadgets, I am always reminded of how small changes in the details of a digital design can have profound unforeseen effects on the experiences of the people who are playing with it. The slightest change in something as seemingly trivial as the ease of use of a button can sometimes alter behavior patterns. For instance, Stanford University researcher Jeremy Bailinson has demonstrated that changing the height of one’s avatars in immersive virtual reality transforms self-esteem and social self-perception. Technologies are extensions of ourselves, and, like the avatars in Jeremy’s lab, our identities can be shifted by the quirks of gadgets. It is impossible to work with information technology without also engaging in social engineering.” —Jaron Lanier, You Are Not a Gadget

“[Cheetos] is one of the most marvelously constructed foods on the planet, in terms of pleasure. [The puff’s ability to melt in the mouth] is called ‘vanishing caloric density.’ If something melts down quickly, your brain thinks that there’s no calories in it. You can just keep eating it forever.” —Steven Witherly, food scientist Source: Michael Moss, Salt Sugar Fat: How the Food Giants Hooked Us

Bag sizes = New markets: Source: PepsiCo

Big carts = 1.5X Source: Wal*Mart

120-oz container to ketchup-bottle size laundry-detergent concentrate (100% conversion): 1/4th packaging; 1/4th weight; 1/4th cost to ship; 1/4th space on ships, trucks, shelves. 3 years: 95M #s plastic resin saved, 125M #s cardboard conserved, 400M less gallons of water shipped, 500K gallons less diesel fuel, 11M less #s CO2 released) Source: Force of Nature: The Unlikely Story of Walmart’s Green Revolution, Edward Humes

LITTLE = BIG

<TGW and … >TGR [Things Gone WRONG-Things Gone RIGHT.] 19

*I use “manage-measure” a lot. Translation: These are TGRs. Manage ’em. Measure ’em.* *I use “manage-measure” a lot. Translation: These are not “soft” ideas; they are exceedingly important things that can be managed—AND measured. 20

(1) Amenable to rapid experimentation/ failure “free” (PR, $$) (2) Quick to implement/ Quick to Roll out (3) Inexpensive to implement/Roll out (4) Huge multiplier (5) An “Attitude”

Half-day/Generate 25 ideas (2) One week/5 experiments (3) One month/Select best 2 (4) 60-90 days/Roll out

Customers describing their service experience as “superior”: 8% Companies describing the service experience they provide as “superior”: 80% —Source: Bain & Company survey of 362 companies, reported in John DiJulius, What's the Secret to Providing a World-class Customer Experience?

“Experiences are as distinct from services as services are from goods “Experiences are as distinct from services as services are from goods.” —Joe Pine & Jim Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage 24

“Perception is all there is”

COMEBACK >> PERFECTION [BIG, QUICK RESPONSE] >> PERFECTION

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

Design Rules! APPLE market cap > Exxon Mobil* *August 2011 28

“Only one company can be the cheapest. All others must use design “Only one company can be the cheapest. All others must use design.” —Rodney Fitch, Fitch & Co. Source: Insights, definitions of design, the Design Council [UK]

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

Jungle Jim’s International Market, Fairfield, Ohio: “An adventure in ‘shoppertainment,’ as Jungle Jim’s calls it, begins in the parking lot and goes on to 1,600 cheeses and, yes, 1,400 varieties of hot sauce —not to mention 12,000 wines priced from $8 to $8,000 a bottle; all this is brought to you by 4,000 vendors. Customers come from every corner of the globe.” Bronner’s Christmas Wonderland, Frankenmuth, Michigan, pop 5,000: 98,000-square-foot “shop” features the likes of 6,000 Christmas ornaments, 50,000 trims, and anything else you can name if it pertains to Christmas. Source: George Whalin, Retail Superstars 31

Basement Systems Inc.

(Joel Resnick/Flemington NJ) THE RED CARPET STORE (Joel Resnick/Flemington NJ) 33

“Be the best. It’s the only market that’s not crowded.” From: Retail Superstars: Inside the 25 Best Independent Stores in America, George Whalin 34

“… IT IS THE GAME.” 35

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

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

“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 38

Dominic Barton, MD, Mc Kinsey & Co.: “Culture.” WSJ/0910.13: “What matters most to a company over time? Strategy or culture? Dominic Barton, MD, Mc Kinsey & Co.: “Culture.”

B(I) > B(O) 40 40

“crack the code on how your company can develop and live its unique story”

“Let me help you down the jetway.”

“In a world where customers wake up every morning asking, ‘What’s new, what’s different, what’s amazing?’ success depends on a company’s ability to unleash initiative, imagination and passion of employees at all levels—and this can only happen if all those folks are connected heart and soul to their work [their ‘calling’], their company and their mission.” —John Mackey and Raj Sisoda, Conscious Capitalism: Liberating the Heroic Spirit of Business

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

wholehearted pursuit of EXCELLENCE in 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.** **Employees, Customers, Suppliers, Communities, Owners, Temporary partners

“the joy* of work” —John Mackey and Raj Sisoda, Conscious Capitalism: Liberating the Heroic Spirit of Business *See also, Joy Inc.: How We Built a Workplace People Love —Richard Sheridan (Menlo Innovations)

*Total transparency re compensation *2/3 vote by team after 90-days probation for new member to achieve fulltime status *Total transparency re compensation *All 7 members of exec team exact same pay package including bonuses *Cash plus bonuses of highest paid no more than 19X average *Exact same benefits package for all employees including CEO, though adjusted for seniority *Benefits package decided by all hands vote every 3 years —John Mackey and Raj Sisoda, Conscious Capitalism: Liberating the Heroic Spirit of Business (“Conscious Hiring and Retention Practices”)

Hard is Soft. Soft is Hard.

Hard is Soft. Soft is Hard.

Hard [numbers, plans] is Soft. Soft [people/relationships] is Hard.

“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

“On the face of it, shareholder value is the dumbest idea in the world “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

“BUSINESS HAS TO GIVE PEOPLE ENRICHING, REWARDING LIVES … 53

“BUSINESS HAS TO GIVE PEOPLE ENRICHING, REWARDING LIVES … OR IT'S SIMPLY NOT WORTH DOING.” —Richard Branson (1/4,096) 54

The people you developed who went on to The Memories That Matter The people you developed who went on to stellar accomplishments inside or outside the company. The (no more than) two or three people you developed who went on to create stellar institutions of their own. The long shots (people with “a certain something”) you bet on who surprised themselves—and your peers. The people of all stripes who 2/5/10/20 years later say “You made a difference in my life,” “Your belief in me changed everything.” The sort of/character of people you hired in general. (And the bad apples you chucked out despite some stellar traits.) A handful of projects (a half dozen at most) you doggedly pursued that still make you smile and which fundamentally changed the way things are done inside or outside the company/industry. The supercharged camaraderie of a handful of Great Teams aiming to “change the world.” 55

“You have to treat your employees like customers “You have to treat your employees like customers.” —Herb Kelleher, upon being asked his “secret to success” Source: Joe Nocera, NYT, “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots union took out a full-page ad in USA Today thanking HK for all he had done) ; across the way in Dallas, American Airlines’ pilots were picketing AA’s Annual Meeting) 56

"When I hire someone, that's when I go to work for them "When I hire someone, that's when I go to work for them.” —John DiJulius, "What's the Secret to Providing a World-class Customer Experience"

"When I hire someone, that's when I go to work for them.” —John DiJulius So what ONE THING will you to do TODAY to foster employees’/an employee’s growth?

“Employees who don't feel significant rarely make significant contributions.” —Mark Sanborn

"If you want staff to give great service, give great service to staff "If you want staff to give great service, give great service to staff." —Ari Weinzweig, Zingerman's 60

EXCELLENT customer experience depends entirely on EXCELLENT employee experience!

If you want to WOW your customers then you must first WOW those who WOW the customers!

Hard is Soft. Soft is Hard.

Hard [numbers, plans] is Soft. Soft [people/relationships] is Hard.

EMPLOYEES FIRST, CUSTOMERS SECOND: Turning Conventional Management Upside Down Vineet Nayar/CEO/HCL Technologies

“consideration renovation” “hostmanship”/ “consideration renovation” 66 66

The Art of Making People Feel Welcome. “The path to a hostmanship culture paradoxically does not go through the guest. In fact it wouldn’t be totally wrong to say that the guest has nothing to do with it. True hostmanship leaders focus on their employees. What drives exceptionalism is finding the right people and getting them to love their work and see it as a passion. ... The guest comes into the picture only when you are ready to ask, ‘Would you prefer to stay at a hotel where the staff love their work or where management has made customers its highest priority?’” “We went through the hotel and made a ... ‘consideration renovation.’ Instead of redoing bathrooms, dining rooms, and guest rooms, we gave employees new uniforms, bought flowers and fruit, and changed colors. Our focus was totally on the staff. They were the ones we wanted to make happy. We wanted them to wake up every morning excited about a new day at work.” —Jan Gunnarsson and Olle Blohm, Hostmanship: The Art of Making People Feel Welcome. 67 67

“ … The guest comes into the picture only when you are ready to ask, ‘Would you prefer to stay at a hotel where the staff love their work or where management has made customers its highest priority?’”

“We are a ‘Life Success’ Company.” Dave Liniger, founder, RE/MAX 69

“The organization would ultimately win not because it gave agents more money, but because it gave them a chance for better lives.” —Phil Harkins & Keith Hollihan, Everybody Wins, on RE/MAX

100%

THE DREAM MANAGER —Matthew Kelly “An organization can only become the-best-version-of-itself to the extent that the people who drive that organization are striving to become better-versions-of-themselves.” “A company’s purpose is to become the-best-version-of-itself. The question is: What is an employee’s purpose? Most would say, ‘to help the company achieve its purpose’—but they would be wrong. That is certainly part of the employee’s role, but an employee’s primary purpose is to become the-best-version-of-himself or –herself. … When a company forgets that it exists to serve customers, it quickly goes out of business. Our employees are our first customers, and our most important customers.” 72

“OUR EMPLOYEES ARE OUR FIRST CUSTOMERS, AND OUR MOST IMPORTANT CUSTOMERS.” 73

“I start with the premise that the function of leadership is to produce more leaders, not more followers.” —Ralph Nader

MORE THAN THEY’VE DREAMED OF BEING.” “The role of the Director is to create a space where the actors and actresses can BECOME MORE THAN THEY’VE EVER BEEN BEFORE, MORE THAN THEY’VE DREAMED OF BEING.” —Robert Altman, Oscar acceptance speech 75

“No matter what the situation, [the great manager’s] first response is always to think about the individual concerned and how things can be arranged to help that individual experience success.” —Marcus Buckingham, The One Thing You Need to Know 76

If the manager’s sole task is to make team members successful— then what is your [manager] plan to make each individual more successful within the coming week?

BRAND = TALENT. 78

Our Mission TO DEVELOP AND MANAGE TALENT; TO APPLY THAT TALENT, THROUGHOUT THE WORLD, FOR THE BENEFIT OF CLIENTS; TO DO SO IN PARTNERSHIP; TO DO SO WITH PROFIT. WPP 79

… NO LESS THAN CATHEDRALS IN WHICH THE FULL AND AWESOME POWER OF THE IMAGINATION AND SPIRIT AND NATIVE ENTREPRENEURIAL FLAIR OF DIVERSE INDIVIDUALS IS UNLEASHED IN PASSIONATE PURSUIT OF … EXCELLENCE. 80

Hence, our job as leaders—the alpha and the omega and Oath of Office: Managers/Servant Leaders Our goal is to serve our customers brilliantly and profitably over the long haul. Serving our customers brilliantly and profitably over the long haul is a product of brilliantly serving, over the long haul, the people who serve the customer. Hence, our job as leaders—the alpha and the omega and everything in between—is abetting the sustained growth and success and engagement and enthusiasm and commitment to Excellence of those, one at a time, who directly or indirectly serve the ultimate customer. We—leaders of every stripe—are in the “Human Growth and Development and Success and Aspiration to Excellence business.” “We” [leaders] only grow when “they” [each and every one of our colleagues] are growing. “We” [leaders] only succeed when “they” [each and every one of our colleagues] are succeeding. “We” [leaders] only energetically march toward Excellence when “they” [each and every one of our colleagues] are energetically marching toward Excellence. Period. 81

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.)

You take care of the people. 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.)

“The leaders of Great Groups … love talent … and know where to find it “The leaders of Great Groups … love talent … and know where to find it. They … revel in … the talent of others.” —Warren Bennis & Patricia Ward Biederman, Organizing Genius

The people you developed who went on to The Memories That Matter The people you developed who went on to stellar accomplishments inside or outside the company. The (no more than) two or three people you developed who went on to create stellar institutions of their own. The long shots (people with “a certain something”) you bet on who surprised themselves—and your peers. The people of all stripes who 2/5/10/20 years later say “You made a difference in my life,” “Your belief in me changed everything.” The sort of/character of people you hired in general. (And the bad apples you chucked out despite some stellar traits.) A handful of projects (a half dozen at most) you doggedly pursued that still make you smile and which fundamentally changed the way things are done inside or outside the company/industry. The supercharged camaraderie of a handful of Great Teams aiming to “change the world.” 85

“life and death decisions”

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

2/YEAR = LEGACY.

“A man should never be promoted to a managerial position if his vision focuses on people’s weaknesses rather than on their strengths.” —Peter Drucker, The Practice of Management 89

Andrew Carnegie’s Tombstone Inscription … Here lies a man Who knew how to enlist In his service Better men than himself. Source: Peter Drucker, The Practice of Management 90

Les Wexner: From sweaters to people!* *Limited Brands founder Les Wexner queried on astounding long-term success—said, in effect, it happened because he got as excited about developing people as he had been about predicting fashion trends in his early years

53 = 53 92

“The key difference between checkers and chess is that in checkers the pieces all move the same way, whereas in chess all the pieces move differently. … DISCOVER WHAT IS UNIQUE ABOUT EACH PERSON AND CAPITALIZE ON IT.” —Marcus Buckingham, The One Thing You Need to Know

Evaluating people = #1 differentiator Source: Jack Welch/Jeff Immelt on GE’s #1 strategic skill (!!!!)

70 CENTS 95

“Development can help great people be even BETTER—BUT IF I HAD A DOLLAR TO SPEND, I’D SPEND 70 CENTS GETTING THE RIGHT PERSON IN THE DOOR.” —Paul Russell, Director, Leadership and Development, Google

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

“This is not about getting the right answer “This is not about getting the right answer. The thing that you will be evaluated on is whether you bring out all the best qualities in your partner. Your job is to make the other applicant look as good as possible.” —James Goebel, co-founder, Menlo Innovations Source: Joy Inc.: How We Built a Workplace People Love —Richard Sheridan (Menlo Innovations)

WOW!! Observed closely: The use of “I” or “we” during a job interview. Source: Leonard Berry & Kent Seltman, chapter 6, “Hiring for Values,” Management Lessons From Mayo Clinic

… this will be the woman’s century …

such as life, soul, and hope are “I speak to you with a feminine voice. It’s the voice of democracy, of equality. I am certain, ladies and gentlemen, that this will be the woman’s century. In the Portuguese language, words such as life, soul, and hope are of the feminine gender, as are other words like courage and sincerity.” —President Dilma Rousseff of Brazil, 1st woman to keynote the United Nations General Assembly

Source: Headline, Economist “Forget CHINA, INDIA and the INTERNET: Economic Growth Is Driven by WOMEN.” Source: Headline, Economist 102

W > 2X (C + I)* *“Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could climb as high as $28 trillion in the next five years. Their $13 trillion in total yearly earnings could reach $18 trillion in the same period. In aggregate, women represent a growth market bigger than China and India combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer. And yet many companies do just that—even ones that are confidant that they have a winning strategy when it comes to women. Consider Dell’s …” Source: Michael Silverstein and Kate Sayre, “The Female Economy,” HBR, 09.09 103

“Women are THE majority market” —Fara Warner/The Power of the Purse 104

“AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” TITLE/ Special Report/ BusinessWeek 105

Women’s Strengths Match New Economy Imperatives: Link [rather than rank] workers; favor interactive-collaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills, individual & group contributions equally; readily accept ambiguity; honor intuition as well as pure “rationality”; inherently flexible; appreciate cultural diversity. Source: Judy B. Rosener, America’s Competitive Secret: Women Managers 106

“Power Women 100”/Forbes 10.25.10 26 female CEOs of Public Companies: Vs. Men/Market: +28% * (*Post-appointment) Vs. Industry: +15% 107

“Headline 2020: Women Hold 80 Percent of Management and Professional Jobs” Source: The Extreme Future: The Top Trends That Will Reshape the World in the Next 20 Years, James Canton 108

“C-level”?!! 109

Why is intensive-extensive training obvious for the army & navy & sports teams & performing arts groups--but not for the average business?

In the Army, 3-star generals worry about training In the Army, 3-star generals worry about training. In most businesses, it's a “ho hum” mid-level staff function.

“training, TRAINING and M-O-R-E T-R-A-I-N-I-N-G” —CINCPAC Nimitz to CNO King/actual emphasis in written communication /1943/on #1 need for U.S. Navy in South Pacific

Container Store 270/16 10/>100

I would hazard a guess that most CEOs see IT investments as a “strategic necessity,” but see training expenses as “a necessary evil.”

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

A 15-Point Human Capital Development Manifesto 1. “Corporate social responsibility” starts at home—i.e., inside the enterprise! MAXIMIZING GDD/Gross Domestic Development of the workforce is the primary source of mid-term and beyond growth and profitability—and maximizes national productivity and wealth. (Re profitability: If you want to serve the customer with uniform Excellence, then you must FIRST effectively and faithfully serve those who serve the customer—i.e. our employees, via maximizing tools and professional development.)

2. Regardless of the transient external situation, development of “human capital” is always the #1 priority. This is true in general, in particular in difficult times which demand resilience—and uniquely true in this age in which IMAGINATIVE brainwork is de facto the only plausible survival strategy for higher wage nations. (Generic “brainwork,” traditional and dominant “white-collar activities, is increasingly being performed by exponentially enhanced artificial intelligence.)

“A bureaucrat is an expensive microchip.” “The median worker is losing the race against the machine.” —Erik Brynjolfsson and Andrew McAfee, Race Against the Machine “A bureaucrat is an expensive microchip.” —Dan Sullivan, consultant and executive coach

“The root of our problem is not that we’re in a Great Recession or a Great Stagnation, but rather that we are in the early throes of a Great Restructuring. Our technologies are racing ahead, but our skills and organizations are lagging behind.” Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfee

“Algorithms have already written symphonies as moving as those composed by Beethoven, picked through legalese with the deftness of a senior law partner, diagnosed patients with more accuracy than a doctor, written news articles with the smooth hand of a seasoned reporter, and driven vehicles on urban highways with far better control than a human driver.” —Christopher Steiner, Automate This: How Algorithms Came to Rule the World

Legal industry/Pattern Recognition/Discovery (e-discovery algorithms): 500 lawyers to … ONE Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfee

SERGEANTS 122

If the regimental commander lost most of his 2nd lieutenants and 1st lieutenants and captains and majors, it would be a tragedy. If he lost his sergeants it would be a catastrophe. The Army and the Navy are fully aware that success on the battlefield is dependent to an extraordinary degree on its Sergeants and Chief Petty Officers. Does industry have the same awareness? 123

Employee retention & satisfaction & productivity: Overwhelmingly based on the first-line manager! Source: Marcus Buckingham & Curt Coffman, First, Break All the Rules: What the World’s Greatest Managers Do Differently 124

“People leave managers not companies.” —Dave Wheeler

4

“The four most important words in any organization are … 127

THE FOUR MOST IMPORTANT WORDS IN ANY ORGANIZATION ARE … “WHAT DO YOU THINK?” Source: courtesy Dave Wheeler, posted at tompeters.com 128

Effectively "helping" may Some Help With Helping … Help works when the recipient subsequently feels smarter—not dumber. Regularly help too soon—and you will set up expectation of inaction until your "help" is provided. Help poorly conveyed spawns powerlessness and resentment in recipient. Helping requires a sniper's rifle or surgeon's scalpel—not a shotgun or machete. Helping strategies vary [significantly] from individual to individual—leave the “cookie cutter” at home. Effectively "helping" may be the most difficult leadership task of all! "Help" is only truly successful when the recipient says, and believes: "I did it myself!" Near truism: Nobody wants help. But we would all liked to have received help. Guitarist Robert Fripp: "Don't be helpful. Be available. Helpful people are a nuisance."

“The deepest principal in human nature is the craving “The deepest principal in human nature is the craving* to be appreciated.” —William James *“Craving,” not “wish” or “desire” or “longing”/Dale Carnegie, How to Win Friends and Influence People (“The BIG Secret of Dealing With People”)

“Acknowledge” … perhaps the most powerful word (and idea) in the English language—and manager’s tool kit!

"Good leaders make people feel that they're at the very heart of things, not at the periphery.” —Warren Bennis

“People want to be part of something larger than themselves “People want to be part of something larger than themselves. They want to be part of something they’re really proud of, that they’ll fight for, sacrifice for , trust.” —Howard Schultz, Starbucks

18 134

*Source: Jerome Groopman, How Doctors Think “THE DOCTOR INTERRUPTS AFTER …* *Source: Jerome Groopman, How Doctors Think 135

18 … 136

18 … SECONDS! 137

[An obsession with] Listening is ... the ultimate mark of Respect. Listening is ... the heart and soul of Engagement. Listening is ... the heart and soul of Kindness. Listening is ... the heart and soul of Thoughtfulness. Listening is ... the basis for true Collaboration. Listening is ... the basis for true Partnership. Listening is ... a Team Sport. Listening is ... a Developable Individual Skill.* (*Though women are far better at it than men.) Listening is ... the basis for Community. Listening is ... the bedrock of Joint Ventures that work. Listening is ... the bedrock of Joint Ventures that grow. Listening is ... the core of effective Cross-functional Communication* (*Which is in turn Attribute #1 of organizational effectiveness.) [cont.] 138

LISTEN = “PROFESSION” = STUDY = PRACTICE = EVALUATION = ENTERPRISE VALUE 139

“It’s amazing how this seemingly small thing— simply paying fierce attention to another, really asking, really listening, even during a brief conversation—can evoke such a wholehearted response.” —Susan Scott, Fierce Conversations: Achieving Success at Work and in Life, One Conversation at a Time

TO TEMPS? IF NOT, THERE [DAMN WELL] OUGHT TO BE. IS THERE A FULL-BORE TRAINING COURSE IN "LISTENING" FOR 100% OF EMPLOYEES, CEO TO TEMPS? IF NOT, THERE [DAMN WELL] OUGHT TO BE.

“IF YOU DON’T LISTEN, YOU DON’T SELL ANYTHING.” Best Listeners Win … “IF YOU DON’T LISTEN, YOU DON’T SELL ANYTHING.” —Carolyn Marland 142

10 Essential Selling Principles Most Salespeople Get Wrong 1. Assuming the problem that the prospect communicates is the real problem. 2. Thinking that your sales “presentation” will seal the deal. 3. Talking too much. 4. Believing that you can sell anybody anything. 5. Overeducating the prospect when you should be selling. 6. Failing to remember that salespeople are decision-makers, too. 7. Reading minds. 8. Working as an “unpaid consultant” to seal the deal. 9. Being your own worst enemy. 10. Keeping your fingers crossed that a prospect doesn’t notice a problem. Source: Forbes/0503.13

8 of 10 sales presentations fail **8 of 10 sales presentations fail **50% failed sales presentations … talking “at” before listening! —Susan Scott, “Let Silence Do the Heavy Listening,” chapter title, Fierce Conversations: Achieving Success at Work and in Life, One Conversation at a Time

“I always write ‘LISTEN’ on the back of my hand before a meeting.” Source: Tweet viewed @tom_peters

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

Lunch! 147

*Cross-Functional eXcellence XFX = #1* *Cross-Functional eXcellence 148 148

Never waste a lunch! 149

“Allied commands depend on mutual confidence through the development and this confidence is gained, above all through the development of friendships.” —General D.D. Eisenhower, Armchair General* *“Perhaps his most outstanding ability [at West Point] was the ease with which he made friends and earned the trust of fellow cadets who came from widely varied backgrounds; it was a quality that would pay great dividends during his future coalition command.” 150

*Measure! Monthly! Part of evaluation! [The PAs Club.] % XF lunches* *Measure! Monthly! Part of evaluation! [The PAs Club.] 151

XFX/Typical Social Accelerators 1. EVERYONE’s [more or less] JOB #1: Make friends in other functions! (Purposefully. Consistently. Measurably.) 2. “Do lunch” with people in other functions!! Frequently!! (Minimum 10% to 25% for everyone? Measured.) 3. Ask peers in other functions for references so you can become conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-ism.) 4. Religiously invite counterparts in other functions to your team meetings. Ask them to present “cool stuff” from “their world” to your group. (Useful. Mark of respect.) 5. PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ONCE A DAY … make a short call or visit or send an email of “Thanks” for some sort of XFX gesture by your folks and some other function’s folks.) 6. Present counterparts in other functions awards for service to your group. Tiny awards at least weekly; and an “Annual All-Star Supporters [from other groups] Banquet” modeled after superstar salesperson banquets.

Formal evaluations. Everyone, starting with the receptionist, should have a significant XFX rating component in their evaluation. (The “XFX Performance” should be among the Top 3 items in all managers’ evaluations.) 153

"It became necessary to develop medicine as a cooperative science; the clinician, the specialist, the laboratory workers, the nurses uniting for the good of the patient, each assisting in the elucidation of the problem at hand, and each dependent upon the other for support.” —Dr. William Mayo, 1910

“Competency is irrelevant if we don’t share common values “Competency is irrelevant if we don’t share common values.” —Mayo Clinic exec, from Leonard Berry & Kent Seltman, “Orchestrating the Clues of Quality,” Chapter 7 from Management Lessons From Mayo Clinic

"The personnel committees on all three campuses have become aggressive in addressing the issue of physicians who are not living the Mayo value of exhibiting respectful, collegial behavior to all team members. Some physicians have been suspended without pay or terminated.” —Leonard Barry & Kent Seltman, Management Lessons from Mayo Clinic

“I am hundreds of times better here [than in my prior hospital assignment] because of the support system. It’s like you were working in an organism; you are not a single cell when you are out there practicing.’” —quote from Dr. Nina Schwenk, in Chapter 3, “Practicing Team Medicine,” from Leonard Berry & Kent Seltman, from Management Lessons From Mayo Clinic

WOW!! Observed closely: The use of “I” or “we” during a job interview. Source: Leonard Berry & Kent Seltman, chapter 6, “Hiring for Values,” Management Lessons From Mayo Clinic

eLunch! 159

“Customer engagement is moving from relatively isolated market transactions to deeply connected and sustained social relationships. This basic change in how we do business will make an impact on just about everything we do.” Social Business By Design: Transformative Social Media Strategies For the Connected Company —Dion Hinchcliffe & Peter Kim

Bloomberg: Mobil social media analytics prelude to stock performance MillerCoors: Gender imbalance. Women of Sales peer support. Private network, Attrition plummeted. Teva Canada: Supply chain excellence achieved. Share-Point/troubleshooting/Strategy-Nets/hooked to other functions; Moxie social tools, document editing, etc. IBM: Social business tools/30 percent drop in project completion time/300K on LinkedIn, 200K on Facebook Bloomberg: Mobil social media analytics prelude to stock performance Intuit: struggling against H&R Block temp staffing/customers #1 asset/Live Community, focused on help with transactions (not general, embedded in TurboTax Social Business By Design: Transformative Social Media Strategies For the Connected Company —Dion Hinchcliffe & Peter Kim

Wow! 162

Hard is Soft. Soft is Hard.

Hard [numbers, plans] is Soft. Soft [people/relationships] is Hard.

Zappos 10 Corporate Values Deliver “WOW. ” through service Zappos 10 Corporate Values Deliver “WOW!” through service. Embrace and drive change. Create fun and a little weirdness. Be adventurous, creative and open-minded. Pursue growth and learning. Build open and honest relationships with communication. Build a positive team and family spirit. Do more with less. Be passionate and determined. Be humble. Source: Delivering Happiness, Tony Hsieh, CEO, Zappos.com 166 166

“INSANELY GREAT” Steve Jobs “RADICALLY THRILLING” BMW 167

“We are crazy. We should do something when people say it is ‘crazy “We are crazy. We should do something when people say it is ‘crazy.’ If people say something is ‘good’, it means someone else is already doing it.” —Hajime Mitarai, Canon

“Normal” = “0for 800”

Innovation Index: How many of your Top 5 Strategic Initiatives/Key Projects score 8 or higher [out of 10] on a “Weird”/“Profound”/ “Wow”/“Game-changer” Scale?

Skinning Cats

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

14,000 20,000 30 173

14,000/eBay 20,000/Amazon 30/Craigslist 174

Every project: Where’s your “Craig’s List [WOW!] option”?

“There’s no use trying,’ said Alice “There’s no use trying,’ said Alice. ‘One cannot believe impossible things.’ ‘I daresay you haven’t had much practice,’ said the Queen. ‘When I was your age, I always did it for half an hour a day. Why, sometimes I’ve believed as many as six impossible things before breakfast.’” — Lewis Carroll

“We all agree your theory is crazy “We all agree your theory is crazy. The question, which divides us, is whether it is crazy enough.” —Niels Bohr, to Wolfgang Pauli

Kevin Roberts’ Credo 1. Ready. Fire. Aim. 2. If it ain’t broke Kevin Roberts’ Credo 1. Ready. Fire! Aim. 2. If it ain’t broke ... Break it! 3. Hire crazies. 4. Ask dumb questions. 5. Pursue failure. 6. Lead, follow ... or get out of the way! 7. Spread confusion. 8. Ditch your office. 9. Read odd stuff. 10. AVOID MODERATION! 178

“If you ask me what I have come to do in this world, I who am an artist, I will reply: I am here to live my life out loud.” — Émile Zola

“If I had any epitaph that I would rather have more than any other, it would be to say that I had …disturbed the sleep of my generation.” —Adlai Stevenson

“I WANT TO BE THOROUGHLY USED UP WHEN I DIE “I WANT TO BE THOROUGHLY USED UP WHEN I DIE. … Life is no ‘brief candle’ to me. It is a sort of splendid torch which I have got hold of for the moment, and I want to make it burn as brightly as possible before handing it on to future generations.” —George Bernard Shaw

(feisty OCTOGENARIAN, living in Seattle) "The object of life's journey is not to arrive at the grave safely in a well preserved body, but rather to skid in sideways, totally worn out, shouting, 'Holy Shit, What a Ride!!!’ ” —Mavis Leyrer (feisty OCTOGENARIAN, living in Seattle)

WOW! 183