NOTE: To appreciate this presentation [and insure that it is not a mess], you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” 1

Excellence: The 12H “Theory of Everything” BNZ/A CONVERSATION WITH TOM PETERS Auckland/23 February 2011/Museum Events Centre 2

& societal Role of Enterprise. The Moral Basis For & societal Role of Enterprise. 3

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

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

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

Why in the World did you go to Siberia?

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

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

The Memories That Matter. 11

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 longshots (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.” 12

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.) 13

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. 14

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.) 15

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.) 16

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.” 17

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

“In a way, the world is a great liar. It shows you it worships and admires money, but at the end of the day it doesn’t. It says it adores fame and celebrity, but it doesn’t, not really. The world admires, and wants to hold on to, and not lose, goodness. It admires virtue. At the end it gives its greatest tributes to generosity, honesty, courage, mercy, talents well used, talents that, brought into the world, make it better. That’s what it really admires. That’s what we talk about in eulogies, because that’s what’s important. We don’t say, ‘The thing about Joe was he was rich!’ We say, if we can … 19

“We say, if we can … ‘The thing about Joe was he took good care of people.’” —Peggy Noonan, “A Life’s Lesson,” on the astounding response to the passing of Tim Russert, The Wall Street Journal, June 21-22, 2008 20

Four [really] First things Before First Things … 21 21

#1

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?

#1 cause of employee Dis-satisfaction?

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

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

ABSOLUTE BEST TRAINING PROGRAM IN THE INDUSTRY ... E.g.: Do you have the ... ABSOLUTE BEST TRAINING PROGRAM IN THE INDUSTRY ... (or some subset thereof) for first-line supervisors? 27

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

#2

Problem #1. Opportunity #1.

*Cross-Functional eXcellence XFX = #1* *Cross-Functional eXcellence 31

Gerald Seymour. John Le Carre. 32

Never waste a lunch!

“Personal relationships are the fertile soil from which all advancement, all success, all achievement in real life grow.” —Ben Stein

“Allied commands depend on mutual confidence 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.”

R.O.I.R. > R.O.I. 36

Return On Investment In Relationships 37

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

Measure! (Base/230) 39

Lunch > SAP/ Oracle

(Way) Underutilized Lever Space! Space! Space! Space! 41

Geologists + Geophysicists + A little bit of love = Oil 42

XFX: Social accelerators … 43

“XFX Social Accelerators.” 1. EVERYONE’s [more or less] JOB #1: Make friends in other functions! (Purposefully. Consistently. Measurably.) 2. “Do lunch” with people in other functions!! Frequently!! (Minimum 10% to 25% for everyone? Measured.) 3. Ask peers in other functions for references so you can become conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-ism.) 4. Invite counterparts in other functions to your team meetings. Religiously. Ask them to present “cool stuff” from “their world” to your group. (B-I-G deal; useful and respectful.) 5. PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ONCE A DAY … make a short call or visit or send an email of “Thanks” for some sort of XFX gesture by your folks and some other function’s folks.) 6. Present counterparts in other functions awards for service to your group. Tiny awards at least weekly; and an “Annual All-Star Supporters [from other groups] Banquet” modeled after superstar salesperson banquets. 7. Discuss—A SEPARATE AGENDA ITEM—good and problematic acts of cross-functional co-operation at every Team Meeting.

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. 45

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

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.) 47

Promote into functional leadership positions based primarily on … temperament. 48

“Incidentally” … 49

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

“Success doesn’t depend on the number of people you know; it depends on the number of people you know in high places!” or “Success doesn’t depend on the number of people you know; it depends on the number of people you know in low places!” 51

C(I)>C(E) 52

S = ƒ(SD>SU) S = ƒ(#&DR; -2L, -3L, -4L, I&E) Success is a function of: Number and depth of relationships 2, 3, and 4 levels down inside and outside the organization S = ƒ(SD>SU) Sucking down is more important than sucking up—the idea is to have the [your] entire organization working for you. S = ƒ(#non-FF, #non-FL) Number of friends not in my function S = ƒ(#XFL/m) Number of lunches with colleagues in other functions per month S = ƒ(#FF) Number of friends in the finance organization 53

VISIBLE. CONSTANT. OBSESSION. THE WHOLE POINT HERE IS THAT “XFX” IS ALMOST CERTAINLY THE #1 OPPORTUNITY FOR STRATEGIC DIFFERENTIATION. WHILE MANY WOULD LIKELY AGREE, IN OUR MOMENT-TO-MOMENT AFFAIRS, XFX PER SE IS NOT SO OFTEN VISIBLY & PERPETUALLY AT THE TOP OF EVERY AGENDA. I ARGUE HERE FOR NO LESS THAN … VISIBLE. CONSTANT. OBSESSION. 54

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.” 55

*Cross-Functional eXcellence XFX = #1* *Cross-Functional eXcellence 56 56

#3 57

*Source: Jerome Groopman, How Doctors Think “The doctor interrupts after …* *Source: Jerome Groopman, How Doctors Think 58

18 … 59

18 … seconds! 60

[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.] 61

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)? 63

Suggested addition to your statement of Core Values: “We are Effective Listeners—we treat Listening EXCELLENCE as the Centerpiece of our Commitment to Respect and Engagement and Community and Growth.” 64

"When I was in medical school, I spent hundreds of hours looking into a microscope—a skill I never needed to know or ever use. Yet I didn't have a single class that taught me communication or teamwork skills—something I need every day I walk into the hospital.” —Peter Pronovost, Safe Patients, Smart Hospitals  

Listening is of the utmost … strategic importance *Listening is of the utmost … strategic importance! *Listening is a proper … core value ! *Listening is … trainable ! *Listening is a … profession ! 66

Message: Listening is a … profession! 67

Listen! Ask! •Listening Leaders: The Ten Golden Rules To Listen, Lead & Succeed—Lyman Steil and Richard Bommelje •The Zen of Listening—Rebecca Shafir •Effective Listening Skills—Dennis Kratz and Abby Robinson Kratz •Are You Really Listening?—Paul Donoghue and Mary Siegel •Active Listening: Improve Your Ability to Listen and Lead—Michael Hoppe •Listening: The Forgotten Skill —Madelyn Burley-Allen •Leading with Questions: How Leaders Find the Right Solutions by Knowing What to Ask—Michael Marquardt •Smart Questions: Learn to Ask the Right Questions for Powerful Results—Gerald Nadler and William Chandon •The Art of Asking: Ask Better Questions, Get Better Answers —Terry Fadem •How to Ask Great Questions—Karen Lee-Thorp •Change Your Questions, Change Your Life—Marilee Adams •Asking the Right Questions: A Guide to Critical Thinking —Neil Browne and Stuart Keeley 68

“The problem with communication “The problem with communication ... is the ILLUSION that it has been accomplished.” —George Bernard Shaw

It’s always your fault.

#3A 71

“Profession”

Decide & Commit. Study. Practice. Apply. Evaluate & Measure *Decide & Commit *Study *Practice *Apply *Evaluate & Measure *“CI” [Continuous Improvement]

Are you a “professional” when it comes to Strategic Listening?

Are you a “professional” when it comes to Asking questions?

Are you a “professional” when it comes to Offering help?

Are you a “professional” when it comes to Effective apology?

Are you a “professional” when it comes to The Art of appreciation?

Are you a “professional” when it comes to Hiring people?

Are you a “professional” when it comes to Developing people?

Are you a “professional” when it comes to evaluating people?

Are you a “professional” when it comes to Promoting people?

Are you a “professional” when it comes to … Are you a “professional” when it comes to … ?* *The “real stuff” of effective organizational LEADERSHIP

#4 84

1/8 seconds 20 years

Date: 1/1/11 Activity: Boomers start turning 65 Rate: 7 Date: 1/1/11 Activity: Boomers start turning 65 Rate: 7.5 per minute/ 10,000 per day/ 4,000,000 per year Duration: 20 years Impacted: EVERYTHING

Must read: SHOCK OF GRAY: The Aging of the World’s Population and How It Pits Young Against Old, Child Against Parent, Worker Against Boss, Company Against Rival, and Nation Against Nation —Ted Fishman

Philips Lifeline. 6,000,000 members. 600,000 calls typical morning Philips Lifeline *6,000,000 members *600,000 calls typical morning *Philips bought for $750,000,000 in 2006 *Homecare in 2010: $140,000,000,000/sky high growth

!!!!!!!!!!!!!!!!! “People turning 50 today have more than half of their adult life ahead of them.” —Bill Novelli, 50+: Igniting a Revolution to Reinvent America 89

7/13 90

*“[55-plus] are more active in online 55+ > 55-* *“[55-plus] are more active in online finance, shopping and entertainment than those under 55?”—Forrester Research (USA Today, 8 January 2009) 91

44-65: “New Customer Majority” Source: Ageless Marketing, David Wolfe & Robert Snyder 92

“Marketers attempts at reaching those over 50 have been miserably unsuccessful. No market’s motivations and needs are so poorly understood.” —Peter Francese, founding publisher, American Demographics 93

“Baby-boomer Women: The Sweetest of Sweet Spots for Marketers” —David Wolfe and Robert Snyder, Ageless Marketing 94

Median Household Net Worth <35: $7K 35-44: $44K 45-54: $83K 55-64: $112K 65-69: $114K 70-74: $120K >74: $100K Source: U.S. Census

Suggested addition to your statement of Core Values: We understand that there is an “aging tsunami” that will alter the marketplace dramatically—and we stand ready to respond to/shape this humongous market’s needs and desires. 96

We are the Aussies & Kiwis & Americans & Canadians We are the Aussies & Kiwis & Americans & Canadians. We are the Western Europeans & Japanese. We are the fastest growing, the biggest, the wealthiest, the boldest, the most (yes) ambitious, the most experimental & exploratory, the most different, the most indulgent, the most difficult & demanding, the most service & experience obsessed, the most vigorous, (the least vigorous,) the most health conscious, the most female, the most profoundly important commercial market in the history of the world—and we will be the Center of your universe for the next twenty-five years. We have arrived! 97

W = 25T > 2(C + I) 98

Four [really] First things Before First Things … 99 99

Four First Things Before First Things: Core Values/Surpassing Business Assets/ Sustainable Competitive Advantages 1. EXCELLENCE … First-line management cadre as engine of enterprise performance! 2. EXCELLENCE … Value-added opportunity #1 through seamless cross-functional integration! 3. EXCELLENCE … “Strategic” listening as peerless enterprise differentiator! 4. EXCELLENCE … Seizing the stupendous aging market opportunity! 100

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 the EXCELLENCE of this cadre per se is arguably one of our top two or three most important ‘Strategic Assets.’” 101

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.” 102

Suggested addition to your statement of Core Values: “We are Effective Listeners—we treat Listening EXCELLENCE as the Centerpiece of our Commitment to Respect and Engagement and Community and Growth.” 103

alter the marketplace dramatically—and Suggested addition to your statement of Core Values: We understand that there is an “aging tsunami” that will alter the marketplace dramatically—and we stand ready to respond to/shape this humongous market’s needs and desires. 104

“Theory of Everything” Excellence: The 12H “Theory of Everything” 105

H1

All you need to know … Hilton Howard Herb Henry I Hill Harley Handy Heather Hartville Henry II Hamel Hsieh 107

Conrad Hilton, at a gala celebrating his career, was asked, “What was the most important lesson you’ve learned in your long and distinguished career?” His answer … 108

“remember to tuck the shower curtain inside the bathtub” 109

“Execution is strategy.” —Fred Malek

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

“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

“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

“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

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

“In real life, strategy is actually very straightforward “In real life, strategy is actually very straightforward. Pick a general direction … and implement like hell.” —Jack Welch 116

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

Internal organizational excellence = Deepest “Blue Ocean”

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

H2

All you need to know … Hilton Howard Herb Henry I Hill Harley Handy Heather Hartville Henry II Hamel Hsieh 121

25

“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

50%. Un-scheduled. Source: Dov Frohman 125

You = Your calendar* *The calendar never lies. 126

Your calendar knows Precisely what you really care about. Do you???? 127

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

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

“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

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

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

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

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

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

“Excellence … can be obtained if you: ... care more than others think is wise; ... risk more than others think is safe; ... dream more than others think is practical; ... expect more than others think is possible.” Source: Anon. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM) 136

H3 137

All you need to know … Hilton Howard Herb Henry I Hill Harley Handy Heather Hartville Henry II Hamel Hsieh 138

“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) 139

"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 140

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

“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.” Source: Jan Gunnarsson and Olle Blohm, Hostmanship: The Art of Making People Feel Welcome. 142 142

“consideration renovation” 143 143

“Ladies and gentlemen serving ladies and gentlemen.” —Ritz Carlton credo 144

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.” 145

“Our employees are our first customers, and our most important customers.” 146

Vineet Nayar CEO/HCL Technologies 147

Zabar’s Parking Garage Zabar’s Parking Garage* *Retail Superstars: Inside the 25 Best Independent Stores in America, by George Whalin 149

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

“We are a ‘Life Success’ Company.” Dave Liniger, founder, RE/MAX 151

“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 152

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 153

Brand = Talent. 154

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 155

… 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. 156

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. 157

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. 158

Leadership is a sacred trust Leadership is a sacred trust.* *President, classroom teacher, CEO, shop foreman

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 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?” 162

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 165

“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

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 167

“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

PARC’s Bob Taylor: “Connoisseur of Talent”

What will you do in the next 90 days to begin the Systematic journey to “Connoisseur of talent”??

53 = 53 171

People are not “Standardized People are not “Standardized.” Their evaluations should not be standardized. Ever. 172

100 Days per annum: “Name one thing that’s more important?”

What will you do in the next 90 days to begin the Systematic journey to “all pro” At Evaluations??

“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

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

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

TP: “How to throw $500,000 into the sea in one easy lesson!!” 179

< CAPEX > People! 180

2X Source: Container Store/Goal: increase average sale per shopper 181

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

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

Meanwhile in Rochester NY … 184

Wegmans. 185

Luiza Helena, Magazine Luiza 186

“The four most important words in any organization are … 187

The four most important words in any organization are … “What do you think?” Source: courtesy Dave Wheeler, posted at tompeters.com 188

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!] 189

Help! Ed Schein: Helping: How to Offer, Give, and Receive Help What do managers do for a living? Help! Right? How many of us could call ourselves “professional helpers,” meaning that we have studied—like a professional mastering her musical craft—“helping”? (Not many, I’d judge.) Ed Schein: Helping: How to Offer, Give, and Receive Help Last chapter: 7 “principles.” E.g.: PRINCIPLE 2: “Effective Help Occurs When the Helping Relationship Is Perceived to Be Equitable. PRINCIPLE 4: “Everything You Say or Do Is an Intervention that Determines the Future of the Relationship.. PRINCIPLE 5: “Effective Helping Begins with Pure Inquiry. PRINCIPLE 6: “It Is the Client Who Owns the Problem.”* (*Love the idea that the employee is a “Client” ! Words matter!! Read a quote from NFL player-turned lawyer-turned professional football coach, calling his players “my clients.”) Employee as Client! “Helping” is what we [leaders] “do” for a living! STUDY/PRACTICE “helping” as you would neurosurgery! (“Helping” is your neurosurgery!) 190

2% /98%

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

“Things don’t stay the same “Things don’t stay the same. You have to understand that not only your business situation changes, but the people you’re working with aren’t the same day to day. Someone is sick. Someone is having a wedding. You must gauge the mood, the thinking level of the team that day.” —Coach K [Krzyzewski]

230 workdays = 230 “rosters”

Is your goal for your team for … today?? “What … Precisely … Is your goal for your team for … today??

“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

Bottom line: Effectiveness at “people stuff” starts with effectiveness at “me stuff.”

H3.5 200

HAROLD H. HESITANT B. A. M. S. Ph. D HAROLD H. HESITANT B.A. M.S. Ph.D. 1942 – 2011 HE WANTED TO DO SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN’T LET HIM!

“BRAND YOU.” NO OPTION.

Globalization1. 0: Countries globalizing (1492-1800) Globalization2 Globalization1.0: Countries globalizing (1492-1800) Globalization2.0: Companies globalizing (1800-2000) Globalization3.0 (2000+): Individuals collaborating & competing globally Source: Tom Friedman/The World Is Flat

“If there is nothing very special about your work, no matter how hard you apply yourself you won’t get noticed, and that increasingly means you won’t get paid much either.” —Michael Goldhaber, Wired

Distinct or … Extinct. 205

“You are the storyteller of your own life, and you can create your own legend or not.” —Isabel Allende

“To Be somebody or to Do something” BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)

“Knowledge becomes obsolete incredibly fast “Knowledge becomes obsolete incredibly fast. The continuing professional education of adults is the No. 1 industry in the next 30 years … mostly on line.” —Peter Drucker

“All human beings are entrepreneurs “All human beings are entrepreneurs. When we were in the caves we were all self-employed . . . finding our food, feeding ourselves. That’s where human history began . . . As civilization came we suppressed it. We became labor because they stamped us, ‘You are labor.’ We forgot that we are entrepreneurs.” —Muhammad Yunus

Personal “Brand Equity” Evaluation My current Project is challenging me in the these ways … New things I’ve learned in the last 90 days include … I am known for [2 to 3 things]; next year at this time I’ll also be known for [1 more thing]. My public “recognition program” consists of … Additions to my network in the last 90 days include … My resume is discernibly different from last year’s at this time as follows …

H4 211

All you need to know … Hilton Howard Herb Henry I Hill Harley Handy Heather Hartville Henry II Hamel Hsieh 212

“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) 213

none! 214

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 215

“There is a misconception that supportive interactions require more staff or more time and are therefore more costly. Although labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget. Kindness is free. Listening to patients or answering their questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very costly. … Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring far more time than it would have taken to interact with them initially in a positive way.” Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel (Griffin Hospital/Derby CT; Plantree Alliance) 216

K = R = P Kindness = Repeat business = Profit. 217

K = R = P/Kindness = Repeat business = Profit Kindness: Thoughtful. Decent. Caring. Attentive. Engaged. Listens well/obsessively. Appreciative. Open. Visible. Honest. Responsive. On time all the time. Apologizes with dispatch for screwups. “Over”-reacts to screwups of any magnitude. “Professional” in all dealings. Optimistic. Understands that kindness to staff breeds kindness to others/outsiders. Applies throughout the “supply chain.” Applies to 100% of customer’s staff. Explicit part of values statement. Basis for evaluation of 100% of our staff. 218

“The deepest human need is the … need to be appreciated “The deepest human need is the … need to be appreciated.” —William James 219

Tomorrow: How many times will you mange to blurt out, “Thank you” Tomorrow: How many times will you mange to blurt out, “Thank you”? [Count ‘em!] [Practice makes better!] [This is a STRATEGIC skill!] 220

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

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

“Ladies and gentlemen serving ladies and gentlemen.” —Ritz Carlton credo 223

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. 224

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

—Bill Walsh (from The Score Takes Care of Itself) “Keep a short enemies list. One enemy can do more damage than the good done by a hundred friends.” —Bill Walsh (from The Score Takes Care of Itself) 226

“It’s a simple fact. Many people will remember a ‘simple’ sleight for decades! Beware!” —consumer goods exec 227

“One of the secrets of a long and fruitful life is to forgive everybody of everything every night right before going to bed.” —Bernard Baruch 228

*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. 229

*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 231

*Hence: Service >> Sales (!!) Acquire vs. maintain: 5X* *Hence: Service >> Sales (!!) 232

“Will you guys please come up front “Will you guys please come up front. Will you guys please move to the rear.” 233

Service > Sales 234

Sales > Marketing 235

H5 236

All you need to know … Hilton Howard Herb Henry I Hill Harley Handy Heather Hartville Henry II Hamel Hsieh 237

2,000,000 238

7X. 7:30A-8:00P. F12A. 7:30AM = 7:15AM. 8:00PM = 8:15PM. 239

Conveyance: Kingfisher Air Location: Approach to New Delhi 240

“May I clean your glasses, sir?” 241

It BEGINS (and ENDS) in the … 242

parking lot* *Disney 243

Carl’s Street- Sweeper 244

<TGW and … >TGR [Things Gone WRONG-Things Gone RIGHT] 245

TGRs. Manage ‘em. Measure ‘em. 246

Little = BIG 247

Big carts = 1.5X Source: Walmart 248

Bag sizes = New markets: Source: PepsiCo 249

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

H6 251

All you need to know … Hilton Howard Herb Henry I Hill Harley Handy Heather Hartville Henry II Hamel Hsieh 252

And in Milwaukee … 253

Experience: “Rebel Lifestyle Experience: “Rebel Lifestyle!” “What we sell is the ability for a 43-year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.” Source: Harley exec, quoted in Results-Based Leadership 254

“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 255

“At our core, we’re a coffee company, but the opportunity we have to extend the brand is beyond coffee; it’s entertainment.” —Howard Schultz (“The Starbucks Aesthetic,” NYT) 256

CXO* *Chief eXperience Officer 257

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

The Value-Added Ladder Spellbinding Experiences Services Goods Raw Materials 259

H7 260

All you need to know … Hilton Howard Herb Henry I Hill Harley Handy Heather Hartville Henry II Hamel Hsieh 261

All Equal Except … “At Sony we assume that all products of our competitors have basically the same technology, price, performance and features. Design is the only thing that differentiates one product from another in the marketplace.” —Norio Ohga 262

“Design is treated like a religion at BMW.” —Fortune 263

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

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

Design is … never neutral.

CDO* *Chief Design Officer 267

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

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

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

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

Beauty. Grace. Clarity. Simplicity.

H8 273

All you need to know … Hilton Howard Herb Henry I Hill Harley Handy Heather Hartville Henry II Hamel Hsieh 274

Source: Headline, Economist “Forget China, India and the Internet: Economic Growth Is Driven by Women.” Source: Headline, Economist 275

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, 09.09 276

“One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to spend. … This is just the beginning. The phenomenon will only grow as girls prove to be more successful than boys in the school system. For a number of observers, we have already entered the age of ‘womenomics,’ the economy as thought out and practiced by a woman.” —Aude Zieseniss de Thuin, Women’s Forum for the Economy and Society 277

“Women are the majority market” —Fara Warner/The Power of the Purse 278

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

“The most significant variable in every sales situation is the gender of the buyer, and more importantly, how the salesperson communicates to the buyer’s gender.” —Jeffery Tobias Halter, Selling to Men, Selling to Women 280

The Perfect Answer Jill and Jack buy slacks in black… Pick one! 281

282

Cases! Cases! Cases! McDonald’s (“mom-centered” to F as “majority consumer”; not via kids) Home Depot (“Do it [everything!] Herself”) P&G (more than F as “house cleaner”) DeBeers (“right-hand rings”/$4B) AXA Financial Kodak (women = “emotional centers of the household”) Nike (> jock endorsements; new def sports; majority consumer) Avon Bratz (young girls want “friends,” not a blond stereotype) Source: Fara Warner/The Power of the Purse 283

“We simply had stopped being relevant to women.” —Kay Napier, SVP Marketing, McDonald’s (Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom”)

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

Lowe’s! 286

“Women don’t ‘buy’ brands. They ‘join’ them “Women don’t ‘buy’ brands. They ‘join’ them.” —Faith Popcorn, EVEolution 287

2.6 vs. 21 288

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

H8.5 290

“AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” TITLE/ Special Report/ BusinessWeek 291

292

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 293

“Power Women 100”/Forbes 10.25.10 26 female CEOs of Public Companies: Vs. Men/Market: +28% * (*Post-appointment) Vs. Industry: +15% 294

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

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

*Women decide. *Women save. *Women spend. *Women rule. 297

Women decide. Women save. Women spend. Women rule *Women decide *Women save *Women spend *Women rule *In the developed world *In the developing world *The trend is accelerating 298

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

“Girls are the new boys. ” Source: The Daily Mail, 0425 “Girls are the new boys.” Source: The Daily Mail, 0425.2007,“Why today’s women want a girl”

H9 301

All you need to know … Hilton Howard Herb Henry I Hill Harley Handy Heather Hartville Henry II Hamel Hsieh 302

“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 … 303 303

“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 304 304

“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 305

“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 306

#4 Japan #3 USA #2 China #1 Germany 307

MittELstand* *“agile creatures darting between the legs of the multinational monsters" (Bloomberg BusinessWeek, 10.10) 308

Larry Janesky Rocks … 309

Basement Systems Inc. (Seymour CT) *Basement Systems Inc. (Seymour CT) *Dry Basement Science (115,000 copies!) *1990: $0; 2003: $13M; 2008: $62,000,000 310

(Joel Resnick/Flemington NJ) The Red Carpet Store (Joel Resnick/Flemington NJ) 311

“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 312

Retail Superstars: Inside the 25 Best Independent Stores in America —by George Whalin 313

Hartville Hardware Hartville, Ohio, pop <2,500 100,000 square feet (plus catalog, Web serve location) Family run “One of biggest and best tool merchants in USA” Customers from 100s of miles away Renowned semi-annual tool sale (12,000 transactions at recent incarnation) Anchor for 110-independent shops @ Hartville MarketPlace Staff are premier trainers Etc. Etc. Source: Retail Superstars: Inside the 25 Best Independent Stores in America, George Whalin 314

Jungle Jim’s International Market, Fairfield, Ohio: “An adventure in ‘shoppertainment,’ as Jungle Jim’s call it, begins in the parking lot and goes on to 1,600 cheeses and, yes, 1,400 varieties of hot sauce —not to mention 12,000 wines priced from $8 to $8,000 a bottle; all this is brought to you by 4,000 vendors. Customers come from every corner of the globe.” Bronner’s Christmas Wonderland, Frankenmuth, Michigan, pop 5,000: 98,000-square-foot “shop” features the likes of 6,000 Christmas ornaments, 50,000 trims, and anything else you can name if it pertains to Christmas. Source: George Whalin, Retail Superstars 315

Abt Electronics/Family/1936 Insane competition (Chicagoland Abt Electronics/Family/1936 Insane competition (Chicagoland!) Campus/350K sq.ft./37 acres/$300M revenue Design Center (Classes on every-damn-thing, etc.) “Destination” like Ikea (restaurant, atrium with spectacular flowers, 7,500 gallon aquarium, etc.) In-house delivery teams (spiffy uniforms, etc.) Training/knowledge training!!!!!!!! “Yes.” Period. NO EXCUSES. “Over”-staffed Merchandising (boats displaying marine electronics, cars with various systems, etc.) Web (encyclopedic info re almost all stuff sold, blog, live chat with live experts “24/7”, etc.) Rating of services (>>> Home Depot, Lowes, etc.) Source: George Whalin, Retail Superstars 316

Lessons [for Everyone] from Retail Superstars! 1. Courses/Workshops/Demos/Engagement 2. Instructional guides/material/books 3. Events & Events & Events … 4. Create “Community” of customers 5. Destination 6. Women-as-customer 7. Staff selection/training/retention (FANATICISM) 8. Fanaticism/Execution 9. Design/Atmospherics/Ambience 10. Tableaus/Products-in-use 11. Flow/starts & finishes (Disney-like) 12. 100% orchestrated experience/focus: “Moments of truth” 13. Constant experimentation/Pursue Little BIG Things 14. Social Media/Ongoing conversation with customers 15. Community star 16. Aim high 17. PASSION 317

YOU CAN HOLD IT. 318

ONLY 262 MILES TO BUC-EE’S YOU CAN HOLD IT.* Billboard … ONLY 262 MILES TO BUC-EE’S YOU CAN HOLD IT.* *“If I weren’t already married, I’d have my wedding there.” —Dallas Morning News Metro blogger 319

H10 320

All you need to know … Hilton Howard Herb Henry I Hill Harley Handy Heather Hartville Henry II Hamel Hsieh 321

READY. FIRE! AIM. H. Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985) 322

“This is so simple it sounds stupid, but it is amazing how few oil people really understand that you only find oil if you drill wells. You may think you’re finding it when you’re drawing maps and studying logs, but you have to drill.” Source: The Hunters, by John Masters, wildly successful Canadian Oil & Gas wildcatter

1/45 324

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 325

—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 326

Mickey Drexler/The Gap-J Crew Mickey Drexler/The Gap-J Crew **Bias for instant action/Towering impatience with in-action **Impatient but not brutal **Relentless/Speed-of-light experimentation; more ASAP if works, drop if not **Vibrates with energy (literally) **Always on the prowl—anywhere, everywhere—for ideas **Lots of team-standing-around-making-instant-assessments-decisions—all contributing **Likes working with women more than men because F more intuitive than M **Dresses like the brand—at 66 **Offense, not defense **Communicates all the time [removes fear of CEO presence]. Everyone, including most junior, made part of the decision-making team **Listens attentively regardless of age/seniority **Obvious in his transparent respect for young employees **Trusts intuition plus fanatic about the numbers **Expects everyone to know their numbers cold from memory **Always aware of “the business case”—as well as fashion-master **Aggressive pricing **MBWA/Managing By Wandering Around **Open with everyone, from youth to folks at Earnings Call **Constant customer contact-dialogue/React instantly to customer feedback **Willing to act (experiment) based on one datapoint **Engages with the most junior of his people **At 66, comfortably uses “hot” words like “Cool” “Wow” Source: The New Yorker/0920.10 327

“Experiment fearlessly” Source: BusinessWeek, “Type A Organization Strategies: How to Hit a Moving Target”—Tactic #1 328

“relentless trial and error”* *Cornerstone of effective approach to “rebalancing” company portfolios in the face of changing and uncertain global economic conditions (Wall Street Journal, 11.08.10) 329

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

“Fail. Forward. Fast.” High Tech CEO, Pennsylvania 331

“Fail. Fail again. Fail better.” —Samuel Beckett 332

“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) 333

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

“You miss 100% of the shots you never take.” —Wayne Gretzky 335

BLAME NOBODY. EXPECT NOTHING. DO SOMETHING. Source: Locker room sign posted by NFL football coach Bill Parcells 336

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

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All you need to know … Hilton Howard Herb Henry I Hill Harley Handy Heather Hartville Henry II Hamel Hsieh 339

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

We are What We Eat/We Are the company we keep 341

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

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’ ” 343

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

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

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

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

“d”iversity 348

Can you pass the … “Squint test”? 349

“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 350

“The Bottleneck …

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

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All you need to know … Hilton Howard Herb Henry I Hill Harley Handy Heather Hartville Henry II Hamel Hsieh 355

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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 357 357

“Insanely Great” Steve Jobs “Radically thrilling” BMW 358

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

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

“Let us create such a building that future generations will take us for lunatics.” —the church hierarchs at Seville 361

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! 362

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

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 30 365

14,000/eBay 20,000/Amazon 30/Craigslist 366

Summary: The Moral Basis For & societal Role of Enterprise Really first things before first things H15 (The Theory of Everything) 367

Summary: The Moral Basis For & societal Role of Enterprise 368

Organizations exist to serve. Period. Leaders live to serve. Period. 369

Summary: Really first things before first things 370

First Things Before First Things: Core Values/Surpassing Business Assets/ Sustainable Competitive Advantages 1. EXCELLENCE … First-line management cadre as engine of enterprise performance! 2. EXCELLENCE … Value-added opportunity #1 through seamless cross-functional integration! 3. EXCELLENCE … “Strategic” listening as peerless enterprise differentiator! 4. EXCELLENCE … Seizing the stupendous aging market opportunity! 371

Summary: 12H (The Theory of Everything) 372

The 12H Theory of Everything. Conrad Hilton/Sweat the details The 12H Theory of Everything *Conrad Hilton/Sweat the details!/EXECUTION is Strategy! *Howard Schultz/MBWA!!!!/Best LISTENER wins! *Herb Kelleher/It’s always all about the PEOPLE!!!!!!!!!!!!!!!!!!!! *Henry Clay/Big payoff from SMALL COURTESIES! *Vernon Hill/“TGRs”! [Things Gone RIGHT]/Little BIG Things! *Harley Davidson/EXPERIENCES to die for!/Feel the LOVE! *Charles Handy/Everything is DESIGN! *Heather Schultz/WOMEN buy!/WOMEN roar!/WOMEN rule! *Hartville Hardware/MONOPLY through EXCELLENCE! *H. Ross Perot/Most TRIES & SCREWUPS are alpha & omega! *Gary Hamel/You are who you HANG OUT with! *Tony Hsieh/WOW!/Radically thrilling!/Insanely great! 373

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