LONG Tom Peters’ Excellence.Always. Management Forum Bogota/16 March 2009

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

Slides at … tompeters.com tompeters.com

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 immediate answer …

“ remember to tuck the shower curtain inside the bathtub”

“Execution is strategy.” —Fred Malek “Execution is strategy.” —Fred Malek fffffii

“almost inhuman disinterestedness in … strategy” —Josiah Bunting on U.S. Grant (from Ulysses S. Grant)

MBWA

Message from a banker, circa 1988: “Tom let me tell you the definition of a good lending officer. After church on Sunday, on the way home with his family, he takes a little detour to drive by the factory he just lent money to. Doesn’t go in or any such thing, just drives by and takes a look.” thing, just drives by and takes a look.”

“It suddenly occurred to me …

that in the space of two or three hours he never talked about cars.” —Les Wexner “It suddenly occurred to me that in the space of two or three hours he never talked about cars.” —Les Wexner

“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” —chapter titles from John Bogle, Enough. The Measures of Money, Business, and Life (Bogle is founder of the Vanguard Mutual Fund Group)

L(+21) = L(-21)

Leadership(21A.D.) = Leadership(21B.C.)

1982

Excellence1982: The Bedrock “Eight Basics” 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” Properties”

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

Hard Is Soft Soft Is Hard

Hard Is Soft (Plans, # s ) Soft Is Hard (people, customers, values, relationships))

2007 Siberia

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

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

2007 Sydney

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

… 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.

“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

“You have to treat your employees like customers.” —Herb Kelleher, complete answer, upon being asked his “secrets 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 the Annual Meeting) way in Dallas American Airlines’ pilots were picketing the Annual Meeting)

The Customer Comes Second —Hal Rosenbluth and Diane McFerrin Peters* (*no relation)

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

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.”

“The four most important words in any organization are … ‘What do you think?’ ” are … ‘What do you think?’ ” Source: courtesy Dave Wheeler, posted at tompeters.com, source of original unknown ( ) tompeters.com, source of original unknown ( )

18”

"Trust the development experts—all seven billion of them.” —headline, Financial Times, , to an article by development guru William Easterly, commenting negatively on the World Bank Growth Commission’s recent report that concludes, in effect, “trust the World Bank experts”

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

“Buy in”- “Ownership”- Authorial bragging rights-“Born again” Champion = One Line of Code!

“Leaders ‘SERVE’ people. Period.” “Leaders ‘SERVE’ people. Period.” —inspired by Robert Greenleaf

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

“Managing winds up being the management of the allocation of resources against tasks. Leadership focuses on people. My definition of a leader is someone who helps people succeed.” —Carol Bartz, Yahoo! “Managing winds up being the management of the allocation of resources against tasks. Leadership focuses on people. My definition of a leader is someone who helps people succeed.” —Carol Bartz, Yahoo!

Ben Changes His BHAG!* *Big Hairy Audacious Goal/Collins

TP: TP: “How to flush $500,000 down the toilet in one easy lesson!!”

People! People!

Wegmans

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. 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

Brand = Talent.

The 19 Es of Excellence

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

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

“1 minute”

Some like it hot!

“Insanely Great”

“Radically thrilling” “Radically thrilling” BMW

“You do not merely want to be the best of the best. You want to be considered the only ones who do what you do.” “You do not merely want to be the best of the best. You want to be considered the only ones who do what you do.” —Jerry Garcia

dubai

Single greatest act of pure imagination

Does your project portfolio “have “have a dubai”? a dubai”?

#1 Truthteller …

You = Your calendar* *Calendars never lie

“I used to have a rule for myself that at any point in time I wanted to have in mind — as it so happens, also in writing, on a little card I carried around with me — the three big things I was trying to get done. Three. Not two. Not four. Not five. Not ten. Three.” — Richard Haass, The Power to Persuade

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

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

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

#1 Trait …

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

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

Halt. Do. It. Now. …

-1%

Skip the map

“Mapping your competitive position” or …

1. Have you in the last 10 days … visited a customer? 2. Have you called a customer … TODAY? 1. Have you in the last 10 days … visited a customer? 2. Have you called a customer … TODAY?

The “Have you …” 50

1. Have you in the last 10 days … visited a customer? 2. Have you called a customer … TODAY? 3. Have you in the last days … had a seminar in which several folks from the customer’s operation (different levels, different functions, different divisions) interacted, via facilitator, with various of your folks? 4. Have you thanked a front-line employee for a small act of helpfulness … in the last three days? 5. Have you thanked a front-line employee for a small act of helpfulness … in the last three hours? 6. Have you thanked a frontline employee for carrying around a great attitude … today? 7. Have you in the last week recognized—publicly—one of your folks for a small act of cross-functional co-operation? 8. Have you in the last week recognized—publicly—one of “their” folks (another function) for a small act of cross-functional co-operation? 9. Have you invited in the last month a leader of another function to your weekly team priorities meeting? 10. Have you personally in the last week-month called-visited an internal or external customer to sort out, inquire, or apologize for some little or big thing that went awry? (No reason for doing so? If true—in your mind—then you’re more out of touch than I dared imagine.)

11. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines concerning a project’s next steps? 12. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines concerning a project’s next steps … and what specifically you can do to remove a hurdle? (“Ninety percent of what we call management consists of making it difficult for people to get things done.”—Peter “His eminence” Drucker.) 13. Have you celebrated in the last week a “small” (or large!) milestone reached? (I.e., are you a milestone fanatic?) 14. Have you in the last week or month revised some estimate in the “wrong” direction and apologized for making a lousy estimate? (Somehow you must publicly reward the telling of difficult truths.) 15. Have you installed in your tenure a very comprehensive customer satisfaction scheme for all internal customers? (With major consequences for hitting or missing the mark.) 16. Have you in the last six months had a week-long, visible, very intensive visit-“tour” of external customers? 17. Have you in the last 60 days called an abrupt halt to a meeting and “ordered” everyone to get out of the office, and “into the field” and in the next eight hours, after asking those involved, fixed (f-i-x-e-d!) a nagging “small” problem through practical action? 18. Have you in the last week had a rather thorough discussion of a “cool design thing” someone has come across—away from your industry or function—at a Web site, in a product or its packaging? 19. Have you in the last two weeks had an informal meeting—at least an hour long—with a frontline employee to discuss things we do right, things we do wrong, what it would take to meet your mid- to long-term aspirations? 20. Have you had in the last 60 days had a general meeting to discuss “things we do wrong” … that we can fix in the next fourteen days?

21. Have you had in the last year a one-day, intense offsite with each (?) of your internal customers—followed by a big celebration of “things gone right”? 22. Have you in the last week pushed someone to do some family thing that you fear might be overwhelmed by deadline pressure? 23. Have you learned the names of the children of everyone who reports to you? (If not, you have six months to fix it.) 24. Have you taken in the last month an interesting-weird outsider to lunch? 25. Have you in the last month invited an interesting-weird outsider to sit in on an important meeting? 26. Have you in the last three days discussed something interesting, beyond your industry, that you ran across in a meeting, reading, etc? 27. Have you in the last 24 hours injected into a meeting “I ran across this interesting idea in [strange place]”? 28. Have you in the last two weeks asked someone to report on something, anything that constitutes an act of brilliant service rendered in a “trivial” situation— restaurant, car wash, etc? (And then discussed the relevance to your work.) 29. Have you in the last 30 days examined in detail (hour by hour) your calendar to evaluate the degree “time actually spent” mirrors your “espoused priorities”? (And repeated this exercise with everyone on team.) 30. Have you in the last two months had a presentation to the group by a “weird” outsider?

31. Have you in the last two months had a presentation to the group by a customer, internal customer, vendor featuring “working folks” 3 or 4 levels down in the vendor organization? 32. Have you in the last two months had a presentation to the group of a cool, beyond-our-industry ideas by two of your folks? 33. Have you at every meeting today (and forever more) re-directed the conversation to the practicalities of implementation concerning some issue before the group? 34. Have you at every meeting today (and forever more) had an end-of-meeting discussion on “action items to be dealt with in the next 4, 48 hours? (And then made this list public—and followed up in 48 hours.) And made sure everyone has at least one such item.) 35. Have you had a discussion in the last six months about what it would take to get recognition in local-national poll of “best places to work”? 36. Have you in the last month approved a cool-different training course for one of your folks? 37. Have you in the last month taught a front-line training course? 38. Have you in the last week discussed the idea of Excellence? (What it means, how to get there.) 39. Have you in the last week discussed the idea of “Wow”? (What it means, how to inject it into an ongoing “routine” project.) 40. Have you in the last 45 days assessed some major process in terms of the details of the “experience,” as well as results, it provides to its external or internal customers?

41. Have you in the last month had one of your folks attend a meeting you were supposed to go to which gives them unusual exposure to senior folks? 42. Have you in the last 60 (30?) days sat with a trusted friend or “coach” to discuss your “management style”—and its long- and short-term impact on the group? 43. Have you in the last three days considered a professional relationship that was a little rocky and made a call to the person involved to discuss issues and smooth the waters? (Taking the “blame,” fully deserved or not, for letting the thing-issue fester.) 44. Have you in the last … two hours … stopped by someone’s (two-levels “down") office- workspace for 5 minutes to ask “What do you think?” about an issue that arose at a more or less just completed meeting? (And then stuck around for 10 or so minutes to listen—and visibly taken notes.) 45. Have you … in the last day … looked around you to assess whether the diversity pretty accurately maps the diversity of the market being served? (And …) 46. Have you in the last day at some meeting gone out of your way to make sure that a normally reticent person was engaged in a conversation—and then thanked him or her, perhaps privately, for their contribution? 47. Have you during your tenure instituted very public (visible) presentations of performance? 48. Have you in the last four months had a session specifically aimed at checking on the “corporate culture” and the degree we are true to it—with all presentations by relatively junior folks, including front-line folks? (And with a determined effort to keep the conversation restricted to “real world” “small” cases—not theory.) 49. Have you in the last six months talked about the Internal Brand Promise? 50. Have you in the last year had a full-day off site to talk about individual (and group) aspirations?

Pursuing Discomfort!

“I’m not comfortable unless I’m uncomfortable.” “I’m not comfortable unless I’m uncomfortable.” —Jay Chiat

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

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. Avoid moderation! 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!

The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo

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

BIG?

Buy a very large one and just wait.” “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

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

“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

“Data drawn from the real world attest to a fact that is beyond our control: —Norberto Odebrecht, Education Through Work “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

#4 Japan #2T USA #2T China

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

Reason!!! Mittelstand

Jim’s Group

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

1/40

try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Screw it up. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Screw it up. it. Try it. Try it. try it. Try it. Screw it up. Try it. Try it. Try it.

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

you only find oil if you drill wells. “ 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, Canadian O & G wildcatter

Dick ‘n dan

“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 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 # 10. It gets back to planning versus acting: We act from day one; others plan how to plan— for months.” —Bloomberg by Bloomberg

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

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

“Reward Punish “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec

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

4/40

DECENTRALIZATION. EXECUTION. ACCOUTABILITY. 6 :15A.M.

CF: 30% (no salesfolk) MH: 80% (salesfolk)

Response to “most important contribution”: “I focused this discipline on People and Power; Response to “most important contribution”: “I focused this discipline on People and Power; on Values, Structure, and Constitution; and above all, on Values, Structure, and Constitution; and above all, on responsibilities—that is, on responsibilities—that is, focused the Discipline of Management on management as a truly liberal art.” (18 January 1999) a truly liberal art.” (18 January 1999)

Small is (can often be) BIG

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

E.g.: plate size; location of platters, 6.5 feet Away = -63% “Seconds” Source: Brian Wansink, Mindless Eating (20 lbs per year; 200 decisions per day) Behavioral Primacy! E.g.: plate size; location of platters, 6.5 feet Away = -63% “Seconds” Source: Brian Wansink, Mindless Eating (20 lbs per year; 200 decisions per day)

“Paint it white!” “Paint it white!” — On Hashem Akbari’s [Lawrence Livermore labs] powerful program to significantly reduce greenhouse gas emissions; using conservative to significantly reduce greenhouse gas emissions; using conservative assumptions, it could reduce 44 billion tons of CO2 emissions by cooling buildings, roads, entire cities (The Guardian, ) assumptions, it could reduce 44 billion tons of CO2 emissions by cooling buildings, roads, entire cities (The Guardian, )

Socks = 10K

“Everything matters” -80% Source: Nudge, Richard Thaler and Cass Sunstein,

90K in U.S.A. ICUs on any given day; 178 steps/day in ICU. 50% stays result in “serious complication” Source: Atul Gawande, “The Checklist” (New Yorker, )

** Peter Pronovost, Johns Hopkins, 2001 **Checklist, line infections **1/3 rd at least one error when he started **Nurses/permission to stop procedure if doc, other not following checklist **In 1 year, 10-day line-infection rate: 11% to … 0% Source: Atul Gawande, “The Checklist” (New Yorker, )

Seating arrangement Table shape Physical arrangements (distance, co-location, grand or not/Apple) co-location, grand or not/Apple)Geologists/Geophysicists XFX/Cross-functional Excellence (meetings, talks, etc) (meetings, talks, etc) “The hang out axiom” (“We are what we eat.”) what we eat.”) See greenery, recover faster (map, smell of cookies, pianos/ smell of cookies, pianos/ Planetree) Planetree) Vary road crossing times/engage

Why We Buy/Nudge/Sway/ Kahneman-Tversky Kahneman-Tversky No waste baskets/paper recycling Cases vs charts Default/401(k)/45% vs 86% Designer next to the CEO Opel plant away from factory Rickover’s chair/Sunlight in my eyes/LBJ on the edge of the rug eyes/LBJ on the edge of the rug Thank you notes/10 years

Stew/Wrapped and loose fish/2X Stew/No exit aisles Wal*Mart/Oversized carts Coins with likenesses Post Office architecture Pat visits the Local president Thom Mayer and the crossed arms “Management” of body language (2/3rds of communication) (2/3rds of communication)

Prowl the bowels of the organization organization First question asked Top of the agenda Calendar! Checklist/Peter Pronovost/ICU line infections/50%-0% infections/50%-0% Visible measures/Creech and billboards billboards Creech/mechanics’ “drive by” Food at front

Sexy voice/USAF Walls of yesterday or tomorrow Staff “lives with” line “Broken windows”-“beer and piss patrol”/sense of order, small patrol”/sense of order, small crimes beget large ones crimes beget large ones Washington and “dress for success”/winter 1776 success”/winter 1776 Dress code Fly in the urinal/-80% Parking lot location/elevator speed/food court speed/food court

Plate size/distance from “seconds” (6.5 feet = 63%) (6.5 feet = 63%) >50 feet = 50 miles/T Allen Casual gathering places/ “nooks”/ 3M-Austin 3M-Austin Walk down the stairs once a month/ 9-11 survivor 9-11 survivor Glasses in the cup (two weeks) TP party prep “Renegade” buildings Welcoming reception area (Insta- “smell culture”) Burlington Police Department/ “smell culture”) Burlington Police Department/ decals on glasses/ decals on glasses/

Bike at the door/Running shoes next to the bed Measures/New (TP & Seabees) Reports (WIAR/Women’s Initiative next to the bed Measures/New (TP & Seabees) Reports (WIAR/Women’s Initiative Annual Report/Deloitte & Touche) MBWA Annual Report/Deloitte & Touche) MBWA Grant sleep on the ground, travel with one assistant Promotions/Deep dip “Small” personal gestures Focus/One inescapable campaign/ travel with one assistant Promotions/Deep dip “Small” personal gestures Focus/One inescapable campaign/ Welch-GE Welch-GE

Hustle Stand-up meetings Ask vs talk “What do you think?” Engaged listening Go to door to meet Obama transition Awareness of “Kremlinologists”

Hire for smile! TOV/tone of voice Master the arcane rules/ Al Smith/LBJ/Dole/Tom DeLay Al Smith/LBJ/Dole/Tom DeLay “Eighty percent of success is showing up”/Woody Allen/ showing up”/Woody Allen/ Delaware “Courtesies of a small and trivial Delaware “Courtesies of a small and trivial character are the ones which character are the ones which strike deepest in the grateful and strike deepest in the grateful and appreciating heart.”/Henry Clay appreciating heart.”/Henry Clay Jeffords/Missing invitation Flowers

We Are What We Eat

We are the company we keep we keep

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

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 “Hang Out Axiom”: At its core, every (!!!) relationship-partnership decision (employee, vendor, customer, etc) is a strategic decision about: “Innovate, ‘Yes’ or ‘No’ ”

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

“Normal” = “o for 800”

“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 Diversity

“The best predictor [of accuracy of prediction] was fame: The more feted by the media, the worse a pundit’s accuracy.” —Sharon Begley, “When Should a Process Be Art, Not Science?” by Joseph Hall and Eric Johnson Time ( , based in part on the work of Philip Tetlock, who studied 82,361 predictions by 284 pundits)

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

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

The Bottleneck Is at the Top of the Bottle” At the top!” “ 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

“In Blackburn, four-year- olds are making podcasts. In Suffolk, the sometimes tedious and impractical ritual of morning Assembly has been replaced in one school by a news video compiled by pupils; posting it on YouTube means parents can watch as well—and they do. … Learners at all stages and ages, from all over the world, are downloading free tutorials while they replenish their iPods, courtesy of iTunes U. … Source: The Guardian, , “Resource 2009,” a preview of BETT 2009

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

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

Greater than …

“Forget China, India and the Internet : Economic Growth Is Driven by Women.” “Forget China, India and the Internet : Economic Growth Is Driven by Women.” —Headline, Economist, April 15, 2006, Leader, page 14

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

“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.” “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

The Perfect Answer Jill and Jack buy slacks in black…

Cases! Cases! Cases! McDonald’s Home Depot P&G DeBeers AXA Financial Kodak Nike Avon Bratz Fara Warner/The Power of the Purse Cases! Cases! Cases! McDonald’s (“mom-centered” to “majority consumer”; not via kids) Home Depot (“Do it [everything!] Herself”) P&G (more than “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

“Goldman Sachs in Tokyo has developed an index of 115 companies poised to benefit from women’s increased purchasing power; over the past decade the value of shares in Goldman’s basket has risen by 96%, against the Tokyo stockmarket’s rise of 13%.” of 13%.” —Economist, April 15

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

10.6

“The growth and success of women- owned businesses is one of the most profound changes taking place in the business world today.” today.” — Margaret Heffernan, How She Does It

“CEMEX realized that women are the key drivers of savings in [Mexican] families. … They are entrepreneurial in nature, and they actively participate in the tanda system [neighborhood groups who pool money and save any that’s left over]. Regardless of whether they are homemakers or outside-the-home workers, they are responsible for any savings in the family. Patrimonio Hoy [Private Property Today, a CEMEX program to aid the poor in building homes] discovered that 70% of the women who saved were saving money in the tanda system to construct homes for their families. The men in the society consider their job done if they bring in their paycheck at the end of the day.” —C.K. Prahalad, The Fortune at the Bottom of the Pyramid, on Lorenzo Zambrano and CEMEX, the Mexican company that’s the world’s #3 cement maker

10 UNASSAILABLE REASONS WOMEN RULE Women Women Women make [all] the financial decisions. Women control [all] the wealth. Women Women [substantially] outlive men. Women Women start most of the new businesses. Women’s Women’s work force participation rates have soared worldwide. Women Women are closing in on “same pay for same job.” Women Women are penetrating senior ranks rapidly [even if the pace is slow for the corner office per se]. Women’s Women’s leadership strengths are exceptionally well aligned with new organizational effectiveness imperatives. Women Women are better salespersons than men. Women Women buy [almost] everything—commercial as well as consumer goods. So what exactly is the point of men?

“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.” “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, Financial Times,

Where the Money is …

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

7/13

18-44: -1% 55+: +21% (55-64: +47% ) Stats 18-44: -1% 55+: +21% (55-64: +47% )

“New Customer Majority” 44-65: “New Customer Majority” * *45% larger than 18-43; 60% larger by 2010 Source: Ageless Marketing, David Wolfe & Robert Snyder

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!

No “Anger Management,” Please!

All You Need to Know About “Sources of Innovation”: Angry people! [angry with the status quo]

1% “SkunkWorks”/ “ParallelUniverse” “the 1% solution” Source: Scott Bedbury (Others: 3M, Google, Shell, NAVFAC)

SkunkWorks/ “Skunks” (!!!)

“[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

The “8Ps” of Innovation Success: Pissed off! [Determined to change the world] Passion!!!! [Persist, take the heat, sell] Prototypes. [Fast & Furious] pow!! [Insanely great!] Pals. [Buddies with different skills, recruiting ability] Protector. [Run cover, champion your cause] Politics. [Political skill] Persistence. [Can handle the bumps and U-turns]

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

Iron Innovation Equality Law: The quality and quantity and imaginativeness of innovation shall be the same in all functions —e.g., in HR and purchasing as much as in marketing or product development.

XFX

X =XFX* * Excellence = Cross-functional Excellence

Never waste a lunch! Never waste a lunch!

???? ???? % XF lunches* *Measure!

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

The “XF-50”: 50 Ways to Enhance Cross-Functional Effectiveness and Deliver Speed, “Service Excellence” and “Value-added Customer ‘Solutions’”* *Entire “XF-50” List is an Appendix to the LONG version of this presentation, posted at tompeters.com

#1

“ 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 & Development, Google

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

Who? Who? —The screening interview —The “Topgrading Interview” (story and patterns) (story and patterns) —Focused interview —Reference interview* *Detailed rituals, goals, follow-up Source: Who: The A Method for Hiring, Geoff Smart and Randy Street Geoff Smart and Randy Street

#1. Strategic. Priority. Period.

#1A

#1 cause of 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

#1B

2/year = legacy.

“Leaders ‘do’ people. Period.” “Leaders ‘do’ people. Period.” —Anon.

“Leaders ‘SERVE’ people. Period.” “Leaders ‘SERVE’ people. Period.” —inspired by Robert Greenleaf

Tea Power

Give good tea!

“Allied commands depend on mutual confidence [and this confidence] is gained, above all through the development of friendships.” of friendships.” —General D.D. Eisenhower, Armchair General * (05.08) *“Perhaps his most outstanding ability [at West Point] was the ease with which he made friends and earned the trust 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.” it was a quality that would pay great dividends during his future coalition command.”

“eighty percent of success is showing up.” —Woody Allen

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. 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.

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

“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 Even More Successful

“Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” “Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” —Henry Clay

“eighty percent of success is showing up.” —Woody Allen

R.O.I.R.

R eturn O n I nvestment In R elationships

Profitable

“We are thoughtful in all we do.”

Thoughtfulness is key to customer retention. Thoughtfulness is key to employee recruitment and satisfaction. and satisfaction. Thoughtfulness is key to brand perception. Thoughtfulness is key to your ability to look in the mirror—and tell your kids about your job. “Thoughtfulness is free.” Thoughtfulness is key to speeding things up— it reduces friction. it reduces friction. Thoughtfulness is key to transparency and even cost containment—it abets rather than stifles cost containment—it abets rather than stifles truth-telling. truth-telling.

none!

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

“Kindness is free.”

TGR

“You know a design is good when you want to lick it.” —Steve Jobs Source: Design: Intelligence Made Visible, Stephen Bayley & Terence Conran Stephen Bayley & Terence Conran

2-cent candy

Commerce Bank: From “Service” to “Experience” 7X. 730A- 800P. F12A.

“ 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

TGR [Things Gone WRONG/Things Gone RIGHT] TGR [Things Gone WRONG/Things Gone RIGHT]

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

IB M

“M” = $0

IB M : $55B* *Also HP-EDS

“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, January 2008

“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)

Huge: Satisfaction Success Huge: Customer Satisfaction versus Customer Success

The Value-added Ladder/TRANSFORMATION Customer Success/ Gamechanging Solutions Services Goods Raw Materials

The Real Deal

The Heart of Business Strategy: 48 Things That Matter

We usually think of business strategy as some sort of aspirational market positioning statement. Doubtless that’s part of it. But I believe that the number one “strategic strength” is excellence in execution and systemic relationships (i.e., with everyone we come in contact with). Hence I offer the following 48 pieces of advice in creating a winning “strategy” that is inherently sustainable.

“Thank you.” Minimum several times a day. Measure it. Measure it. “Thank you” to everyone even peripherally involved in some activity—especially those involved in some activity—especially those “deep in the hierarchy.” “deep in the hierarchy.” Smile. Work on it. Apologize. Even if “they” are “mostly” to blame. blame. Jump all over those who play the “blame game.” game.” Hire enthusiasm. Low enthusiasm. No hire. Any job. Hire optimists. Everywhere. (“Positive outlook on life,” not mindless optimism.) outlook on life,” not mindless optimism.) Hiring: Would you like to go to lunch with him-her. 100% of jobs. him-her. 100% of jobs.

Hire for good manners. Do not reject “trouble makers”—that is those who are uncomfortable with the status quo. who are uncomfortable with the status quo. Expose all would-be hires to something unexpected-weird. Observe their reaction. unexpected-weird. Observe their reaction. Overwhelm response to even the smallest screw-ups. screw-ups. Become a student of all you will meet with. Big time. Big time. Hang out with interesting new people. Measure it. Measure it. Lunch with folks in other functions. Measure it. Listen. Hear. Become a serious student of listening-hearing. of listening-hearing. Work on everyone’s listening skills. Practice.

Become a student of information extraction- interviewing. interviewing. Become a student of presentation giving. Formal. Short and spontaneous. Formal. Short and spontaneous. Incredible care in 1st line supervisor selection. World’s best training for 1st line supervisors. Construct small leadership opportunities for junior people within days of starting on the junior people within days of starting on the job. job. Insane care in all promotion decisions. Promote “people people” for all managerial jobs. Finance-logistics-R&D as much as, jobs. Finance-logistics-R&D as much as, say, sales. say, sales. Hire-promote for demonstrated curiosity. Check their past commitment to continuous Check their past commitment to continuous learning. learning.

Small “d” diversity. Rich mixes for any and all teams. all teams. Hire women. Roughly 50% women on exec team. team. Exec team “looks like” customer population, actual and desired. actual and desired. Focus on creating products for and selling to women. to women. Focus on creating products for and selling to boomers-geezers. to boomers-geezers. Work on first and last impressions. Walls display tomorrow’s aspirations, not yesterday’s accomplishments. yesterday’s accomplishments. Simplify systems. Constantly.

Insist that almost all material be covered by a 1-page summary. Absolutely no longer. 1-page summary. Absolutely no longer. Practice decency. Add “We are thoughtful in all we do” to corporate values list. Number 1 force for corporate values list. Number 1 force for customer loyalty, employee satisfaction. customer loyalty, employee satisfaction. Make some form of employee growth (for all) a formal part of values set. Above a formal part of values set. Above customer satisfaction. Steal from RE/MAX: “We are a life success company.” customer satisfaction. Steal from RE/MAX: “We are a life success company.”Flowers. Celebrate “small wins.” Often. Perhaps a “small win of the day.” “small win of the day.”

Manage your calendar religiously: Does it accurately reflect your espoused priorities? accurately reflect your espoused priorities? Use a “calendar friend” who’s not very Use a “calendar friend” who’s not very friendly to help you with this. friendly to help you with this. Review your calendar: Work assiduously and mercilessly on your “To don’ts.”—stuff mercilessly on your “To don’ts.”—stuff that distracts. that distracts. Bosses, especially near the top: Formally cultivate one advisor whose role is to tell you cultivate one advisor whose role is to tell you the truth. the truth. Commit to Excellence. Talk up Excellence. Put “Excellence in all we do” in the values set. Measure everyone on demonstrated commitment to Excellence. commitment to Excellence.

Difficult Times … Times …

On NELSON: “[other] admirals more frightened of losing than anxious to win”

-Costs+R&D+Sales+Marketing+excellence

The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo