Sustaining EXCELLENCE! LONG Tom Peters’ Sustaining EXCELLENCE! Jabil Circuit/Officers Meeting 2013 TradeWinds Resort/St. Pete Beach/02 May 2013 (slides @ tompeters.com/excellencenow.com) 1

“I am often asked … 2 2

“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The answer seems obvious … Source: Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics 3 3

“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The answer seems obvious: Buy a very large one and just wait.” —Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics 4 4

“Mr. Foster and his McKinsey colleagues collected detailed performance data stretching back 40 years for 1,000 U.S. companies. They found that NONE of the long-term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did.” —Financial Times 5

“It’s just a fact: Survivors underperform.” —Dick Foster

“Data drawn from the real world attest to a fact that is beyond our control: Everything in existence tends to deteriorate.” —Norberto Odebrecht, Education Through Work 7

Dick Kovacevich: “You don’t get better by being bigger. You get worse 8

Conrad Hilton, at a gala celebrating his career … 9 9

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 … 10 10

“Remember to tuck the shower curtain inside the bathtub.” 11

Sports: You beat yourself!

“Execution is strategy.” —Fred Malek 13

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

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

(1) Sum of Projects = Goal (“Vision”) (2) Sum of Milestones = Project (3) Rapid Review + Truth-telling = Accountability/ Adjustment

“REALISM is the heart of execution “REALISM is the heart of execution.” —Larry Bossidy & Ram Charan/Execution: The Discipline of Getting Things Done

“Costco figured out the big, simple things and executed with total fanaticism.” —Charles Munger, Berkshire Hathaway 18

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

EXCELLENCE IN EXECUTION = DEEPEST “BLUE OCEAN”

Really First Things Before First Things

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? 22

“People leave managers not companies.” —Dave Wheeler

Suggested addition to your statement of Core Values: “We are obsessed with developing a cadre of 1st line managers that is second to none—we understand that this cadre per se is arguably one of our top two or three most important ‘Strategic Assets.’” 24

Really First Things Before First Things

*Cross-Functional eXcellence XFX = #1* *Cross-Functional eXcellence 26 26

Never waste a lunch! 27

*Measure! Monthly! Part of evaluation! [The PAs Club.] % XF lunches* *Measure! Monthly! Part of evaluation! [The PAs Club.] 28

call or visit or send an email of “Thanks” for some 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.

Present counterparts in other functions recognition/awards for service to your group: Tiny awards at least weekly. An “Annual All-Star Supporters [from other groups] Banquet” modeled after [and equivalent to!] superstar salesperson banquets. 30

XFX/: Typical Social Accelerators 16. Formal evaluations. Everyone, starting with the receptionist, should have a significant XF rating component in their evaluation. (The “XFX Performance” should be among the Top 3 items in all managers’ evaluations.) 17. Every functional unit should have strict and extensive measures of “customer satisfaction” based on evaluations from other functions of its usefulness and effectiveness and value-added to the enterprise as a whole. 18. Demand XF experience for, especially, senior jobs. For example, the U.S. military requires all would-be generals and admirals to have served a full tour in a job whose only goals were cross-functional achievements. 19. “Deep dip.” Dive three levels down in the organization to fill a senior role with some one who has been noticeably pro-active on adding value via excellent cross-functional integration. 20. XFX is … PERSONAL … as well as about organizational effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to personal success—in terms of organizational career, freelancer/Brand You, or as entrepreneur. 21. Excellence! There is a “State of XF Excellence” per se. Talk it up constantly. Pursue it. Aspire to nothing less.

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.) 32

ALL HAIL … THOSE WHO HELP!

THEY ALL GOTTA SEE THE ONE WHO SACRIFICED TO HELP SOMEONE GET IMMEDIATE FEEDBACK-KUDOS. (PERHAPS MORE RECOGNITION THAN THE “PRINCIPAL” “DOER.”)

Suggested addition to your statement of Core Values: “We will not rest until seamless cross-functional integration/communication has become our primary source of value-added. EXCELLENCE in cross-functional integration shall become a daily operational passion for 100% of us.” 35

ONE Act of XFX Enhancement every day!

Case 37

… hundreds of times better here …

Team medicine (“medicine as a co-operative science”) William Mayo, 1910, on the Clinic’s Two Core Values: Patient-centered care Team medicine (“medicine as a co-operative science”) Source: Leonard Berry & Kent Seltman, “Orchestrating the Clues of Quality,” Chapter 7 from 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 are 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

Really First Things Before First Things

*Source: Jerome Groopman, How Doctors Think “The doctor interrupts after …* *Source: Jerome Groopman, How Doctors Think 43

18 … 44

18 … seconds! 45

[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 organization effectiveness.) [cont.] 46

Listening is ... the engine of superior EXECUTION. Listening is ... the key to making the Sale. Listening is ... the key to Keeping the Customer’s Business. Listening is ... Service. Listening is ... the engine of Network development. Listening is ... the engine of Network maintenance. Listening is ... the engine of Network expansion. Listening is ... Social Networking’s “secret weapon.” Listening is ... Learning. Listening is ... the sine qua non of Renewal. Listening is ... the sine qua non of Creativity. Listening is ... the sine qua non of Innovation. Listening is ... the core of taking diverse opinions aboard. Listening is ... Strategy. Listening is ... Source #1 of “Value-added.” Listening is ... Differentiator #1. Listening is ... Profitable.* (*The “R.O.I.” from listening is higher than from any other single activity.) Listening is … the bedrock which underpins a Commitment to EXCELLENCE!

If you agree with the above, shouldn’t listening be ... a Core Value? If you agree with the above, shouldn’t listening be ... perhaps Core Value #1?* (*“We are Effective Listeners—we treat Listening EXCELLENCE as the Centerpiece of our Commitment to Respect and Engagement and Community and Growth.”) If you agree, shouldn’t listening be ... a Core Competence? If you agree, shouldn’t listening be ... Core Competence #1? If you agree, shouldn’t listening be ... an explicit “agenda item” at every Meeting? If you agree, shouldn’t listening be ... our Strategy—per se? (Listening = Strategy.) If you agree, shouldn’t listening be ... the #1 skill we look for in Hiring (for every job)? 48

Listen = “Profession” = Study = practice = evaluation = Enterprise value 49

Really First Things Before First Things

Whine all you want, but meetings are what you [boss] do!

Meetings = #1 leadership opportunity

Meeting: Every meeting that does not stir the imagination and curiosity of attendees and increase bonding and co-operation and engagement and sense of worth and motivate rapid action and enhance enthusiasm is a permanently lost opportunity.

Sustaining EXCELLENCE! Tom Peters’ Sustaining EXCELLENCE! Jabil Circuit/Officers Meeting 2013 TradeWinds Resort/St. Pete Beach/02 May 2013 (slides @ tompeters.com/excellencenow.com) 54

1.

“Business has to give people enriching, rewarding lives … or it's simply not worth doing.” —Richard Branson 56

“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) 57

"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"

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

“I didn’t have a ‘mission statement’ at Burger King. I had a dream “I didn’t have a ‘mission statement’ at Burger King. I had a dream. Very simple. It was something like, ‘Burger King is 250,000 people, every one of whom gives a shit.’ Every one. Accounting. Systems. Not just the drive through. Everyone is ‘in the brand.’ That’s what we’re talking about, nothing less.” — Barry Gibbons

Amen! “What creates trust, in the end, is the leader’s manifest respect for the followers.” — Jim O’Toole, Leading Change

"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 62

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

“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 64

Brand = Talent. 65

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 66

“Leaders ‘do’ people. Period.” —Anon.

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. 68

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.)

3 People 71

“The ONE Question”: “In the last year [3 years, current job], name the … three people … whose growth you’ve most contributed to. Please explain where they were at the beginning of the year, where they are today, and where they are heading in the next 12 months. Please explain … in painstaking detail … your development strategy in each case. Please tell me your biggest development disappointment—looking back, could you or would you have done anything differently? Please tell me about your greatest development triumph—and disaster—in the last five years. What are the ‘three big things’ you’ve learned about helping people grow along the way?” 72

2/year = legacy.

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

“A man should never be promoted to a managerial position if his vision focuses on people’s weaknesses rather than on their strengths.” —Peter Drucker, The Practice of Management 75

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 76

“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

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

“Unremarkable” except for RESULTS: Superb people developer (her/his folks invariably amazed at what they’ve accomplished!)

70 Cents 80

“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

“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

“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

“C-level”? 84

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.

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

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.

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

“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

Heroism: Training > Patriotism

2X 92

TP: “How to throw $500,000 into the sea in one easy lesson!!” 93

< CAPEX > PEOPLE! 94

2X Source: Container Store/Goal: increase average sale per shopper 95

The Memories That Matter. 96

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.” 97

A frighteningly consistent record of having The Memories That Matter Belly laughs at some of the stupid-insane things you and your mates tried. Less than a closet full of “I should have …” A frighteningly consistent record of having invariably said, “Go for it!” Not intervening in the face of considerable loss—recognizing that to develop top talent means tolerating failures and allowing the person who screwed up to work their own way through and out of their self-created mess. Dealing with one or more crises with particular/memorable aplomb. Demanding … CIVILITY … regardless of circumstances. Turning around one or two or so truly dreadful situations—and watching almost everyone involved rise to the occasion (often to their own surprise) and acquire a renewed sense of purpose in the process. Leaving something behind of demonstrable-lasting worth. (On short as well as long assignments.) 98

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

A Mandela-like “naïve” belief that others will The Memories That Matter An invariant creed: When something goes amiss, “The buck stops with me”; when something goes right, it was their doing, not yours. A Mandela-like “naïve” belief that others will rise to the occasion if given the opportunity. A reputation for eschewing the “trappings of power.” (Strong self- management of tendencies toward arrogance or dismissiveness.) Intense, even “driven” … but not to the point of being careless of others in the process of forging ahead. Willing time and again to be surprised by ways of doing things that are inconsistent with your “certain hypotheses.” Humility in the face of others, at every level, who know more than you about “the way things really are.” Bit your tongue on a thousand occasions—and listened, really really listened. (And been constantly delighted when, as a result, you invariably learned something new and invariably increased your connection with the speaker.) 100

Always and relentlessly put at the top of your list/any The Memories That Matter Unalloyed pleasure in being informed of the fallaciousness of your beliefs by someone 15 years your junior and several rungs below you on the hierarchical ladder. Selflessness. (A sterling reputation as “a guy always willing to help out with alacrity despite personal cost.”) As thoughtful and respectful, or more so, toward thine “enemies” as toward friends and supporters. Always and relentlessly put at the top of your list/any list being first and foremost “of service” to your internal and external constituents. (Employees/Peers/ Customers/Vendors/Community.) Treated the term “servant leadership” as holy writ. (And “preached” “servant leadership” to others—new “non-managerial” hire or old pro, age 18 or 48.) 101

Created the sort of workplaces you’d like your kids to The Memories That Matter Created the sort of workplaces you’d like your kids to inhabit. (Explicitly conscious of this “Would I want my kids to work here?” litmus test.) A “certifiable” “nut” about quality and safety and integrity. (More or less regardless of any costs.) A notable few circumstances where you resigned rather than compromise your bedrock beliefs. Perfectionism just short of the paralyzing variety. A self- and relentlessly enforced group standard of “EXCELLENCE-in-all-we-do”/“EXCELLENCE in our behavior toward one another.” 102

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

Not.

2.

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

*In Search of Excellence “Breakthrough” 82* People! Customers! Action! Values! *In Search of Excellence

Hard is Soft. Soft is Hard.

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

“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

Excellence 112

“At a party … 113 113

“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 … 114 114

“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) 115

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. Source: John Bogle, Enough. The Measures of Money, Business, and Life (Bogle is founder of the Vanguard Mutual Fund Group)

“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” “Too Many Twenty-first Century Values, Not Enough Eighteenth-Century Values” “Too Much ‘Success,’ Not Enough Character” Source: Chapter titles from Jack Bogle, Enough. 117

3.

In Search of Excellence /1982: 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 120

READY. FIRE! AIM. H. Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985) 121

“Burt Rutan wasn’t a fighter jock; he was an engineer who had been asked to figure out why the F-4 Phantom was flying pilots into the ground in Vietnam. While his fellow engineers attacked such tasks with calculators, Rutan insisted on considering the problem in the air. A near-fatal flight not only led to a critical F-4 modification, it also confirmed for Rutan a notion he had held ever since he had built model airplanes as a child. The way to make a better aircraft wasn’t to sit around perfecting a design, it was to get something up in the air and see what happens, then try to fix whatever goes wrong.” —Eric Abrahamson & David Freedman, Chapter 8, “Messy Leadership,” from A Perfect Mess: The Hidden Benefits of Disorder

1/45 123

Lesson45: WTTMSW 124

WHOEVER TRIES THE MOST STUFF WINS

Better yet: WTTMSTFW 126

WHOEVER TRIES THE MOST STUFF FASTEST WINS

Better yet: WTTMS(ASTMSU)TFW 128

WHOEVER TRIES THE MOST STUFF (AND SCREWS UP) FASTEST WINS

TRY IT . TRY IT. TRY IT.

Try It. Try It. Try It. Try It. Try It. Try It. Try It. Try It. Try It Try It. Try It. Try It. Try It. Try It. Try It. Try It. Try It. Try It. Try It. Try It. Try It. Try It. Try It. Try It. Try It. Try It. Try It. Try It. Try It. Try It. Try It. Try It. Try It. Try It.

—Bloomberg by Bloomberg “We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the software. We fixed them by doing it over and over, again and again. We do the same today. While our competitors are still sucking their thumbs trying to make the design perfect, we’re already on prototype version #5. By the time our rivals are ready with wires and screws, we are on version #10. It gets back to planning versus acting: We act from day one; others plan how to plan—for months.” —Bloomberg by Bloomberg 132

Culture of Prototyping “Effective prototyping may be THE MOST VALUABLE CORE COMPETENCE an innovative organization can hope to have.” —Michael Schrage 133

“DEMO OR DIE!” Source: This was the approach championed by Nicholas Negroponte which vaulted his MIT Media Lab to the forefront of IT-multimedia innovation. It was his successful alternative to the traditional MIT-academic “publish or perish.” Negroponte’s rapid-prototyping version was emblematic of the times and the pace and the enormity of the opportunity. (NYTimes/0426.11)

DEMO. NOW. OR. DIE.

“mean-time-to-prototype” Source: Sony, via Michael Schrage 136

Whoever Creates The Quickest Prototypes Wins

“You can’t be a serious innovator unless and until you are ready, willing and able to seriously play. ‘Serious play’ is not an oxymoron; it is the essence of innovation.” —Michael Schrage, Serious Play SORRY … I LOVE THIS. “SERIOUS PLAY” … OR … FUHGEDDABOUDIT!!!!!!!!!!!!!!!! No bull: I’m 57 … and I believe that this is … THE Truth. NO SHIT.

“EXPERIMENT FEARLESSLY” Source: BusinessWeek, “Type A Organization Strategies: How to Hit a Moving Target”—Tactic #1 “RELENTLESS TRIAL AND ERROR” Source: Wall Street Journal, cornerstone of effective approach to “rebalancing” company portfolios in the face of changing and uncertain global economic conditions (11.08.10) 139

“FAIL. FORWARD. FAST.” High Tech CEO, Pennsylvania 140

“No matter. Try again. Fail again. Fail better.” —Samuel Beckett 141

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

“The secret of fast progress is inefficiency, fast and furious and numerous failures.” —Kevin Kelly 143

“FAIL FASTER. SUCCEED SOONER.” David Kelley/IDEO

“REWARD excellent failures. PUNISH mediocre successes “REWARD excellent failures. PUNISH mediocre successes.” —Phil Daniels, Sydney exec 145

“It is not enough to ‘tolerate’ failure—you must ‘celebrate’ failure “It is not enough to ‘tolerate’ failure—you must ‘celebrate’ failure.” —Richard Farson (Whoever Makes the Most Mistakes Wins) 146

(in “Corner Office,” New York Times) “I used to play pretty serious chess. It’s very easy for me—though I find it is difficult for a lot of people—to recognize that a lot of the things you do are mistakes. One of the things very important to becoming a good chess player was losing a lot of games. You get to the point that when you lose a game, you don’t beat yourself up. You try to learn from it. We try to encourage that attitude. —Alan Trefler, CEO, Pegasystems (in “Corner Office,” New York Times)

“In business, you reward people for taking risks “In business, you reward people for taking risks. When it doesn’t work out you promote them—because they were willing to try new things. If people tell me they skied all day and never fell down, I tell them to try a different mountain.” —Michael Bloomberg (BW/0625.07) 148

“YOU MISS 100% OF THE SHOTS YOU NEVER TAKE.” —Wayne Gretzky 149

Iron Innovation Equality Law: The Quality and Quantity and Imaginativeness of Innovation [and “R & D” per se] … shall be the same in all functions —e.g., in HR and purchasing as much as in marketing or product development. 150

3A.

*“Skunkworks” (my preference) or “Skunk Works” (Lockheed) “Skunk Camps” “Skunks” “Skunking” *“Skunkworks” (my preference) or “Skunk Works” (Lockheed)

“Skunkworks”: 1 person for 3 months

“Never doubt that a small group of committed people can change the world. Indeed it is the only thing that ever has.” —Margaret Mead

“the 1% solution”* *“Innovation grants,” etc. Source: Scott Bedbury

THE “PARALLEL UNIVERSE” AXIOM

“Venture” fund: Gerstner/Amex, Dow/Marriott, Grove/Intel, DuPont/AI, Bedbury/ Starbucks, etc.

“Somewhere in your organization, groups of people are … already doing things differently … and better. To create lasting change, find these areas of positive deviance and fan the flames.” —Richard Pascale & Jerry Sternin, “Your Company’s Secret Change Agents,” HBR (The late Mr. Sternin was an incredibly successful change agent in developing countries)

3B.

The Case for Decentralization The Ultimate “Try It” Strategy: The Case for Decentralization

Decentralization vs Centralization = “That’s ALL There Is” (from childrearing 101 to the Federalist Papers to Org.2012)

“Rose gardeners face a choice every spring “Rose gardeners face a choice every spring. The long-term fate of a rose garden depends on this decision. If you want to have the largest and most glorious roses of the neighborhood, you will prune hard. This represents a policy of low tolerance and tight control. You force the plant to make the maximum use of its available resources, by putting them into the the rose’s ‘core business.’ Pruning hard is a dangerous policy in an unpredictable environment. Thus, if you are in a spot where you know nature may play tricks on you, you may opt for a policy of high tolerance. You will never have the biggest roses, but you have a much-enhanced chance of having roses every year. You will achieve a gradual renewal of the plant. In short, tolerant pruning achieves two ends: (1) It makes it easier to cope with unexpected environmental changes. (2) It leads to a continuous restructuring of the plant. The policy of tolerance admittedly wastes resources—the extra buds drain away nutrients from the main stem. But in an unpredictable environment, this policy of tolerance makes the rose healthier in the long run.” —Arie De Geus, The Living Company

“In short, tolerant pruning achieves two ends: (1) It makes it easier to cope with unexpected environmental changes. (2) It leads to a continuous restructuring of the plant. The policy of tolerance admittedly wastes resources—the extra buds drain away nutrients from the main stem. But in an unpredictable environment, this policy of tolerance makes the rose healthier in the long run.”

Resilience per se should/must become a corporate value and explicit part of business strategy!

Lessons from the Bees! “Since merger mania is now the rage, what lessons can the bees teach us? A simple one: Merging is not in nature. [Nature’s] process is the exact opposite: one of growth, fragmentation and dispersal. There is no megalomania, no merging for merging’s sake. The point is that unlike corporations, which just get bigger, bee colonies know when the time has come to split up into smaller colonies which can grow value faster. What the bees are telling us is that the corporate world has got it all wrong.” —David Lascelles, Co-director of The Centre for the Study of Financial Innovation [UK]

The True Logic* of Decentralization: 6 DIVISIONS = 6 “TRIES” 6 DIVISIONS = 6 DIFFERENT LEADERS = 6 INDEPENDENT “TRIES” = MAX PROBABILITY OF “WIN” 6 DIVISIONS = 6 VERY DIFFERENT LEADERS = 6 VERY INDEPENDENT “TRIES” = MAX PROBABILITY OF “FAR OUT”/”3-SIGMA” “WIN” *“Driver”: Law of Large #s

“‘Decentralization’ is not a piece of paper. It’s not me “‘Decentralization’ is not a piece of paper. It’s not me. It’s either in your heart, or not.” —Brian Joffe/BIDvest 167

Innovation Enemy #1 I.C.D. Note 1: Inherent/Inevitable/ Immutable Centralist Drift Note 2: Jim Burke’s 1-word vocabulary: “No.”

Immutable Centralist Drift Public Enemy #1: I.C.D. Immutable Centralist Drift “Once a system grows sufficiently complex and centralized, it doesn’t matter how badly our best and brightest foul things up. Every crisis increases their authority, because they seem to be the only ones who understand the system well enough to fix it. But their fixes tend to make the system even more complex and centralized, and more vulnerable to the next national-security surprise, the next natural disaster, the next economic crisis.” —Ross Douthat/NYTimes

“I do not rule Russia. Ten-thousand clerks do.” —Czar Nicholas I

"Every great cause begins as a movement, becomes a business, & eventually degenerates into a racket." —Eric Hoffer

Help wanted: I.C.D. COPS

“Best practice” = ZERO Standard Deviation

4.

MITTELSTAND* ** *“agile creatures darting between the legs of the multinational monsters” (Bloomberg BusinessWeek, 10.10) **E.g. Goldmann Produktion 175

(Joel Resnick/Flemington NJ) THE RED CARPET STORE (Joel Resnick/Flemington NJ) 176

*PSA/Para-sea anchors Source: Kia Ora/Air New Zealand magazine Motueka, New Zealand Coppins Sea Anchors* *PSA/Para-sea anchors Source: Kia Ora/Air New Zealand magazine

Basement Systems Inc.

Jim’s Dog Wash Jim’s Mowing Canada Jim’s Mowing UK Jim’s Antennas Jim’s Bookkeeping Jim’s Building Maintenance Jim’s Carpet Cleaning Jim’s Car Cleaning Jim’s Computer Services Jim’s Dog Wash Jim’s Driving School Jim’s Fencing Jim’s Floors Jim’s Painting Jim’s Paving Jim’s Pergolas [gazebos] Jim’s Pool Care Jim’s Pressure Cleaning Jim’s Roofing Jim’s Security Doors Jim’s Trees Jim’s Window Cleaning Jim’s Windscreens Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group 179 179

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 181

“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 182

5.

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

“The Bottleneck …

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

The “Hang Out Axiom I”: WE ARE WHAT WE EAT/WE ARE THE COMPANY WE KEEP 187

The “We are what we eat”/ “We are who we hang out with” Axiom: At its core, every (!!!) relationship-partnership decision (employee, vendor, customer, etc., etc.) is a strategic decision about: “Innovate, ‘Yes’ or ‘No’ ” 188

Measure/Manage: Portfolio “Strangeness”/ “Quality” 1. Customers 2. Vendors 3. Out-sourcing Partners 4. Acquisitions 5. Purposeful “Theft” 6. Diversity/“d”iversity 7. Diversity/Crowd-sourcing Diversity/Weird Diversity/Curiosity 10. Benchmarks 11. Calendar 12. MBWA 13. Lunch/General 14. Lunch/Other functions 15. Location/Internal 16. Location/HQ 17. Top team 18. Board

“DON’T BENCHMARK, FUTUREMARK “DON’T BENCHMARK, FUTUREMARK!” Impetus: “The future is already here; it’s just not evenly distributed” —William Gibson

“DON’T BENCHMARK, ‘OTHER’ MARK!”

“The short road to ruin is to emulate the methods of your adversary “The short road to ruin is to emulate the methods of your adversary.” — Winston Churchill

EMPLOYEES: “Are there enough weird people in the lab these days EMPLOYEES: “Are there enough weird people in the lab these days?” Source: V. Chmn., pharmaceutical house, to a lab director

“[CEO A.G.] Lafley has shifted P&G’s focus on inventing all its own products to developing … OTHERS’ INVENTIONS AT LEAST HALF THE TIME. One successful example, Mr. Clean Magic Eraser, is based on a product found in an Osaka market.” —Fortune

“Diverse groups of problem solvers—groups of people with diverse tools—consistently outperformed groups of the best and the brightest. If I formed two groups, one random (and therefore diverse) and one consisting of the best individual performers, the first group almost always did better. … DIVERSITY TRUMPED ABILITY.” —Scott Page, The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies 195

Diversity … per se … is a key … maybe the key … to effective and innovative decision making.

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

Once a month on, say, a Friday, invite somebody intriguing, in any field, to have lunch with your gang. Call it: “Freak Fridays”

characteristic?” Vanity Fair: “What is your most marked Mike Bloomberg: “Curiosity.”

CQ/Curiosity Quotient CQ/Curiosity Quotient* *Hire for it in more or less 100% slots/Promote for it

“Do one thing every day that scares you.” —Eleanor Roosevelt

“Normal” = “0 for 800”

Alas: Education [almost invariably] kills creativity

“Every child is born an artist. The trick is to remain an artist “Every child is born an artist. The trick is to remain an artist.” —Picasso

“It is nothing short of a miracle that modern methods of instruction have not yet entirely strangled the holy curiosity of inquiry.” —Albert Einstein

“Human creativity is the ultimate economic resource “Human creativity is the ultimate economic resource.” —Richard Florida, The Rise of the Creative Class

Co-creation: Gamechanger!

“The Billion-man Research Team: Companies offering work to online communities are reaping the benefits of ‘crowdsourcing.’” —Headline, FT

Rob McEwen/CEO/ Goldcorp Inc Rob McEwen/CEO/ Goldcorp Inc./ Red Lake GOLD Source: Wikinomics: How Mass Collaboration Changes Everything, Don Tapscott & Anthony Williams

6.

Forget>“Learn” “The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.” —Dee Hock

Forgetting >> Learning

We need a FORMAL … “Forgetting Strategy.”

7.

MORE MOORE

From: “Satisfaction” To: “Success”

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

IBM

“Lou, with all the money I’ve spent with you guys, why in the hell hasn’t my business been transformed?”

IBM to IBM

$55B* *IBM Global Services/ “Systems integrator of choice”

Planetary Rainmaker-in-Chief Planetary Rainmaker-in-Chief! “[CEO Sam] Palmisano’s strategy is to expand tech’s borders by pushing users—and entire industries—toward radically different business models. The payoff for IBM would be access to an ocean of revenue—Palmisano estimates it at $500 billion a year —that technology companies have never been able to touch.” —Fortune

“You are headed for commodity hell if you don’t have services “You are headed for commodity hell if you don’t have services.” —Lou Gerstner, on IBM’s coming revolution (1997)

UPS

What Can Brown Do for You? Source: ubiquitous UPS ad campaign

“Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Corporate America” —Headline/BW “UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent.” —ecompany.com (E.g., UPS Logistics manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)

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

Source: BusinessWeek cover story “THE GIANT STALKING BIG OIL: HOW SCHLUMBERGER IS REWRITING THE RULES OF THE ENERGY GAME.”: “IPM [Integrated Project Management] strays from [Schlumberger’s] traditional role as a service provider and moves deeper into areas once dominated by the majors.” Source: BusinessWeek cover story

IPM’s Chief: “We’ll do just about anything an oilfield owner would want, from drilling to production.”

A 2008 BusinessWeek cover story informed us that Schlumberger may well take over the world: “THE GIANT STALKING BIG OIL: How Schlumberger Is Rewriting the Rules of the Energy Game.” In short, Schlumberger knows how to create and run oilfields, anywhere, from drilling to fullscale production to distribution. And the nugget is hardcore, relatively small, technically accomplished, highly autonomous teams. As China and Russia, among others, make their move in energy, state run companies are eclipsing the major independents. (China’s state oil company just surpassed Exxon in market value.) At the center of it all, abetting these new players who are edging out the Exxons and BPs, the Kings of Large-scale, Long-term Project Management wear Schlumberger overalls. At the center of the center of the Schlumberger “empire” is a relatively newly configured outfit, reminiscent of IBM’s Global Services and UPS’ integrated logistics’ experts and even Best Buy’s now ubiquitous “Geek Squads.” The Schlumberger version of IBM Global Services is simply called IPM, for Integrated Project Management. It lives in a nondescript building near Gatwick Airport, and its chief says it will do “just about anything an oilfield owner would want, from drilling to production.” That is, as BusinessWeek put it, “[IPM] strays from [Schlumberger’s] traditional role as a service provider* and moves deeper into areas once dominated by the majors.” (*My old pal was solo on remote offshore platforms interpreting geophysical logs and the like.)

GE Enterprise Solutions* GE Enterprise Solutions delivers high-impact, integrated solutions that improve customers’ productivity and profitability. Enterprise Solutions helps customers compete and win in a changing global environment by combining the power of GE’s intelligent technologies with its multi-industry experience and expertise. Enterprise Solutions comprises high-tech, high-growth businesses including Sensing & Inspection Technologies, Security, GE Fanuc Intelligent Platforms, and Digital Energy. The business has 17,000 customer-focused associates in more than 60 countries around the world. *from GE.com

“Instant Infrastructure: GE Becomes a General Store for Developing Countries” —headline/ NYT

UTC/Otis + UTC/Carrier: boxes. to “integrated building systems” UTC/Otis + UTC/Carrier: boxes* to “integrated building systems” *elevators, air conditioners

MasterCard Advisors 235

LEAVE IT TO BEAVER.

Trapper: <$20 per beaver pelt. Source: WSJ

WDCP/“WILDLIFE DAMAGE-CONTROL PROFESSIONAL”: $150 to “remove” “problem beaver”; $750-$1,000 for flood-control piping … so that beavers can stay. Source: WSJ

Trapper = Redneck WDCP = PSF/ Professional Services Provider

7X to 40X for “Solution” [rather than “service transaction”]

8.

LITTLE = BIG

#1

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

#2

Don’t like it? Don’t pay. Source: Granite Rock Co.

#3

Red light flashes= -10%

#4

It BEGINS (and ENDS) in the …

Parking lot* *Disney

#5

National “Brand”/ 2-CENT candy

#6

Big carts = 1.5X Source: Wal*Mart

#7

Bag sizes = New markets: Source: PepsiCo

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

“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

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?

5X Acquire vs maintain*: *Recession goal: Higher “market share” current customers

CXO* *Chief eXperience Officer 262

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

9.

25 266

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

MBWA Managing By Wandering Around/HP 268

50% Un-scheduled 269

MBWA 4

“The four most important words in any organization are … 271

MBWA 8: Change the World With Four Words “WHAT DO YOU THINK?” Source: courtesy Dave Wheeler, posted at tompeters.com 272

MBWA 8

MBWA 8: Change the World With EIGHT Words What do you think MBWA 8: Change the World With EIGHT Words What do you think?* How can I help?** *Dave Wheeler: “What are the four most important words in the boss’ lexicon?” **Boss as CHRO/Chief Hurdle Removal Officer **********************************

MBWA 12

MBWA 12: Change the World With TWELVE Words What do you think MBWA 12: Change the World With TWELVE Words What do you think?* How can I help?** What have you learned?*** *Dave Wheeler: “What are the four most important words in the boss’ lexicon?” **Boss as CHRO/Chief Hurdle Removal Officer ********************************** ***What [new thing] have you learned [in the last 24 hours]? **********************

MBWA 16

MBWA 16: Change the World With SIXTEEN Words What do you think MBWA 16: Change the World With SIXTEEN Words What do you think?* How can I help?** What have you learned?*** “Thank you!”**** “I’m sorry.”***** *Dave Wheeler: “What are the four most important words in the boss’ lexicon?” **Boss as CHRO/Chief Hurdle Removal Officer ********************************** ***What [new thing] have you learned [in the last 24 hours]? ********************** ****Recognition-Appreciation POWER! ********************************************** *****Accept responsibilities for your bloopers—large or small *************************

Tomorrow: How many times will you “ask the WDYT question”. [Count ’em Tomorrow: How many times will you “ask the WDYT question”? [Count ’em!!] [Practice makes better!] [This is a STRATEGIC skill!] 279

You = Your Calendar 280

You = Your calendar* *The calendar NEVER lies. 281

YOUR CALENDAR KNOWS PRECISELY WHAT YOU REALLY CARE ABOUT. DO YOU???? 282

Don’t > Do* * “Don’ting” must be systematic > WILLPOWER 283

“The one thing you need to know about sustained individual success: Discover what you don’t like doing and STOP doing it.” —Marcus Buckingham, The One Thing You Need to Know

“If there is any one ‘secret’ to effectiveness, it is concentration “If there is any one ‘secret’ to effectiveness, it is concentration. Effective executives do first things first … and they do one thing at a time.” —Peter Drucker 285

“It’s always showtime.” —David D’Alessandro, Career Warfare 286

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

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

“A man without a smiling face must not open a shop.” —Chinese Proverb

Me first! 290

“To develop others, start with yourself.” —Marshall Goldsmith

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

“How can a high-level leader like _____ be so out of touch with the truth about himself? It’s more common than you would imagine. In fact, the higher up the ladder a leader climbs, the less accurate his self-assessment is likely to be. The problem is an acute lack of feedback [especially on people issues].” —Daniel Goleman (et al.), The New Leaders

"Everyone thinks of changing the world, but no one thinks of changing himself" —Leo Tolstoy

"You will never change your life until you change something you do daily. The secret of your success is found in your daily routine." —John C. Maxwell

EXCELLENCE is not an "aspiration.” EXCELLENCE is … THE NEXT FIVE MINUTES.

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

EXCELLENCE is … THE NEXT FIVE MINUTES.

Or not.

10.

“Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” —Henry Clay, American Statesman (1777-1852) "Let's not forget that small emotions are the great captains of our lives." –—Van Gogh 301

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. Instead: directly related to Staff Interaction; directly correlated with Employee Satisfaction Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel 302

“There is a misconception that supportive interactions require more staff or more time and are therefore more costly. Although labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget. KINDNESS IS FREE. Listening to patients or answering their questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very costly. … Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring far more time than it would have taken to interact with them initially in a positive way.” Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel (Griffin Hospital/Derby CT; Planetree Alliance) 303

K = R = P 304

KINDNESS = REPEAT BUSINESS = PROFIT. 305

Kindness … WORKS! Kindness … PAYS!

1/80* *Post-interview “Thank you” notes 307

“Thank You.” 308

"Appreciative words are the most powerful force for good on earth.” —George W. Crane, physician, columnist “The two most powerful things in existence: a kind word and a thoughtful gesture.” —Ken Langone, co-founder, Home Depot

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

Here Won’t Get You There: How Successful People Become “I regard apologizing as the most magical, healing, restorative gesture human beings can make. It is the centerpiece of my work with executives who want to get better.” —Marshall Goldsmith, What Got You Here Won’t Get You There: How Successful People Become Even More Successful. 311

*divorce, loss of a BILLION $$$ aircraft sale, etc., etc. Relationships (of all varieties): THERE ONCE WAS A TIME WHEN A THREE-MINUTE PHONE CALL WOULD HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE.* *divorce, loss of a BILLION $$$ aircraft sale, etc., etc. 313

The completed “three-minute call” often-usually-invariably leads to a strengthening of the relationship. It not only acts as atonement but also paves the path for a “better than ever” trajectory. And having taken the initiative per se is worth its weight in … 314

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

COMEBACK >> PERFECTION [BIG, QUICK RESPONSE] >> PERFECTION 316

*Hence: Service >> Sales (!!) Acquire vs. maintain: 5X* *Hence: Service >> Sales (!!) 317

Hard is Soft. Soft is Hard.

"SOFT SKILLS” MASTERY = EXCELLENCE IN IMPLEMENTATION

Return On Investment In Relationships 320 320

R.O.I.R. >> R.O.I. 321 321

11.

Wow! 323

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 325 325

“INSANELY GREAT” Steve Jobs “RADICALLY THRILLING” BMW 326

“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

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 30 330

14,000/eBay 20,000/Amazon 30/Craigslist 331

“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

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

“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! 335

EXCELLENCE. Always. If not EXCELLENCE, what EXCELLENCE. Always. If not EXCELLENCE, what? If not EXCELLENCE now, when?