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

Part 1.4 Tom Peters’ EXCELLENCE. ALWAYS. NEW MASTER/21 August 2008

Slides at … tompeters.com

Ten Parts P1.1, P1.2, P1.3, P1.4/Generic P2/Leadership P3/Talent P4/“Value-added Ladder” P5/“New” Markets P6/“The Equations” P7/Implementation P8/13 “Guru Gaffes” P9/Health“care” P10/“The Lists” Ten Parts P1.1, P1.2, P1.3, P1.4/Generic P2/Leadership P3/Talent P4/“Value-added Ladder” P5/“New” Markets P6/“The Equations” P7/Implementation P8/13 “Guru Gaffes” P9/Health“care” P10/“The Lists”

Part 1.4

#25

EXCELLENCE. SOUL. DESIGN.

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

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

“We don’t have a good language to talk about this kind of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. Design is the fundamental soul of a man-made creation.” —Steve Jobs

“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

“Having spent a century or more focused on other goals—solving manufacturing problems, lowering costs, making goods and services widely available, increasing convenience, saving energy—we are increasingly engaged in making our world special. More people in more aspects of life are drawing pleasure and meaning from the way their persons, places and things look and feel. Whenever we have the chance, we’re adding sensory, emotional appeal to ordinary function.” — 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!* *Not “like” and “dislike”

C D O Design C D O * *Chief Design Officer

“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.” Harley 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.” Harley exec, quoted in Results-Based Leadership

“Steve Jobs gives almost as much thought to the cardboard boxes his gadgets come in as the products themselves. This is not for reasons of taste or elegance— though that’s part of it. To Jobs, the act of pulling a product from its box is an important part of the user experience, and like everything else he does, it’s very carefully thought out.” —Leander Kahney, Inside Steve’s Brain

#25.1

Better By Design The Design49 Tom Peters/Auckland/30March2005

Better By Design: Tom’s Design49 1. There are only 2 rules. 2. Rule #1: You can’t beat Wal*Mart on price or China on cost. 3. Rule #2: See Rule #1. 4. Econ Survival = Innovate and Sprint Up the Value-added Chain … OR DIE! 5. DESIGN (WRIT LARGE) (“DESIGN MINDFULNESS”) IS THE “SOUL”/ENGINE OF THE NEW VALUE-ADDED IMPERATIVE. 6. Design as Soul-Core Competence #1 is a “cultural imperative,” not a “programmatic” or “process” or “throw $$$ at it” issue! 7. CDEs (Culturally Design-driven Enterprises) use Design- Experiences-Dream Merchantry-Lovemarks as the Lead Dog(s) in the OlympianInnovation-“Strategy”-Value Proposition Struggle. 8. “Dream Merchant” makes as much sense for IBM or GE or UPS as for Starbucks!

Better By Design: Tom’s Design49 9. At CDEs, Design is the Heart of the “Emotional Branding” Process. 10. CDEs wholeheartedly embrace ideas such as “mystery,” “surprise,” sensuality.” 11. CDEs love “WOW!” and “B.H.A.G.” and “Insanely Great” and “Gasp-worthy” and “Passion” and “Love”! (Axiom: Extreme language breeds extreme products and services.) 12. Staff at CDEs laugh and cry a lot! (Axiom: “Calm” enterprise = Crappy enterprise.) 13. CDEs love “strange” and “weird.” 14. CDEs scour the earth for “strange” and “weird” people. (CDEs know: FREAKS RULE!) 15. CDEs are “extremists.” (KR: “Avoid moderation.”) 16. CDEs know that … EXCELLENCE IS NOT GOOD ENOUGH! (We must use non-linear measures!)

Better By Design: Tom’s Design CDEs seek Discontinuities. (JG: “We don’t want to be the best of the best, we want to be the only ones who do what we do.”) 18. CDEs are “respectful” of their customers, but not slaves to their customers! CDEs … LEAD THEIR CUSTOMERS! (Axioms: “Listening to customers” is over-rated! Focus groups suck!) 19. But: “Lead” customers are an entirely different matter! 20: Yet: CDEs turn “customers” into “Raving Fans.” (Think: “Tattoo Brand”!) 21. CDEs abide by Phil Daniels’ Credo: “REWARD EXCELLENT FAILURES. PUNISH MEDIOCRE SUCCESSES.” 22. At CDEs the Design Director is at least an Exec Vice President, a Member of the Senior Executive Team, perhaps on the Board, and has an office within 10 meters of the CEO (unless she is the CEO). 23. Design Directors at large companies not worth $5,000,000 per year aren’t worth hiring! (DD$21M.)

Better By Design: Tom’s Design Great Designers are “10,000X” better than “good designers.” 25. At CDEs CFOs are never former CFOs! The CEO always doubles as the Chief Innovation Officer. 26. CDEs are “Top-line Obsessed.” 27. CDE execs know there is a chasm between “excellent design” and “game-changer design.” 28. Gasp-worthy design is a moving target! 29. No Broadway shows last forever. So too, great designers! (Hire them! Pay them! Cherish them! Nurture them! Fire them!) 30. Great design wrestles incessantly with the issue of “cool” and/versus “usability.”! 31. Designers “get” the stunning principles of Wabi Sabi. (Great designers side with Chris Alexander against the A.I.A.) 32. CDEs “get” the “feminine side” of life.

Better By Design: Tom’s Design CDEs Know I: WOMEN BUY EVERYTHING! 34. CDEs Know II: MEN ARE INCAPABLE OF DESIGNING PRODUCTS FOR WOMEN. 35. CDEs understand that “We’re getting’ older”—and vigorously embrace the Boomer-Geezer market. 36. CDEs understand: Boomers-Geezers have “ALL THE MONEY” … are by and large healthy … and have 20 or so years left! 37. CDEs wonder: Can 28-year-olds design “experiences” for 68-year- olds? 38. CDEs seek the sweetest “sweet spot”: Woman-Boomer-Greenie- Wellness. 39. “Design-mindfulness” is as apparent in the CDE’s facilities as in its products-services!

Better By Design: Tom’s Design “Design mindfulness” is as apparent in HR and Engineering and Logistics and IS/IT as in NPD. 41. CDEs will settle for nothing less then “beautiful,” “gasp- worthy” Business Processes/Infrastructure! 42. CDEs obsess on K.I.S.S. (Beware creeping feature-itis!) (450/8.) 43. “Design-mindfulness”/“aesthetic sensibility” is a requisite for Every Hire—including waiters and waitresses in Fast Food outlets and Housekeepers in hotels. 44. Gasp-worthy Design is as essential to “service companies” as to “manufacturers.” 45. Gasp-worthy design can transform any “commodity,” including ag!

Better By Design: Tom’s Design DESIGN MANIA IS A NATIONAL ECONOMIC ISSUE OF THE FIRST ORDER. 47. “Small” is no disadvantage in an Age of Creativity! 48. There is no such thing as a “National Design Advantage” unless the current school system is Destroyed & Re-imagined—to emphasize creativity and risk-taking and acceptance of failure. (Design Mindfulness … the suppression thereof … typically begins at Age 4.) 49. How sweet it is! (If your head is screwed on right.) (If your head is screwed on right.)

#26

Up, Up, Up, Up the Value-added Ladder.

Auckland/pm taipei/vp singapore/pm bangkok/dpm flanders amsterdam/MP s barcelona/m a Kuala Lumpur/CM lisbon/m a dublin/pm buenos aires são paulo Warsaw/MP s london/mp s milan SEOUL/M a mexico d.f./m istanbul/dpm dubai/rfm oman/rfm usa stockholm/mp s shanghai mauritius/pm johannesburg bucharest/CM

EXCELLENCE. VALUE ADDED. UP THE LADDER. NoT Optional.

The Value-added Ladder/ “BEDROCK” Raw Materials* *Farmers and Miners (“Degree”: Weightlifting)

The Value-added Ladder/ THINGS Goods* Raw Materials *Engineers and Factory Workers (Degree: Engineering)

TRANSACTIONS Services* Goods Raw Materials *Clerks (Degree: Process Engineering) The Value-added Ladder/TRANSACTIONS Services* Goods Raw Materials *Clerks (Degree: Process Engineering)

#26.1

Up, Up, Up, Up the Value-added Ladder.

EXCELLENCE. VALUE-ADDED LADDER I. SOLVE IT.

LEAVE IT TO BEAVER.

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

wdcp/“Wildlife Damage-control Professional”: $150 to “remove” “problem beaver”; $750-$1,000 for flood-control piping … so that beavers can stay. Source: WSJ

Trapper = Redneck WDCP = PSF/ Professional Services Provider

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

EXCELLENCE. VALUE-ADDED LADDER I. SOLVE IT.

“M” = $0

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

IBM Global Services $55B And the “M” Stands for … ? Gerstner’s IBM: “Systems Integrator of choice.”/BW (“Lou, help us turn ‘all this’ into that long-promised ‘revolution.’ ” ) IBM Global Services* (*Integrated Systems Services Corp.): $55B

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

“By making the Global Delivery Model both legitimate and mainstream, we have brought the battle to our territory. That is, after all, the purpose of strategy. We have become the leaders, and incumbents [IBM, Accenture] are followers, forever playing catch-up. … However, creating a new business innovation is not enough for rules to be changed. The innovation must impact clients, competitors, investors, and society. We have seen all this in spades. Clients have embraced the model and are demanding it in even greater measure. The acuteness of their circumstance, coupled with the capability and value of our solution, has made the choice not a choice. Competitors have been dragged kicking and screaming to replicate what we do. They face trauma and disruption, but the game has changed forever. Investors have grasped that this is not a passing fancy, but a potential restructuring of the way the world operates and how value will be created in the future.” “By making the Global Delivery Model both legitimate and mainstream, we have brought the battle to our territory. That is, after all, the purpose of strategy. We have become the leaders, and incumbents [IBM, Accenture] are followers, forever playing catch-up. … However, creating a new business innovation is not enough for rules to be changed. The innovation must impact clients, competitors, investors, and society. We have seen all this in spades. Clients have embraced the model and are demanding it in even greater measure. The acuteness of their circumstance, coupled with the capability and value of our solution, has made the choice not a choice. Competitors have been dragged kicking and screaming to replicate what we do. They face trauma and disruption, but the game has changed forever. Investors have grasped that this is not a passing fancy, but a potential restructuring of the way the world operates and how value will be created in the future.” —Narayana Murthy, chairman’s letter, Infosys Annual Report

“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

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

“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)

MasterCard Advisors

“ ‘Architecture’ is becoming a commodity. Winners will be ‘Turnkey Facilities Management’ providers.” SMPS Exec

“We want to be the air traffic controllers of electrons.” Bob Nardelli, GE Power Systems

“ ‘Architecture’ is becoming a commodity. Winners will be ‘Turnkey Facilities Management’ providers.” SMPS Exec

California Closets: “a whole-life upgrade, not just a tidy bedroom.” —WSJ/ , “Why the Container- Store Guy Wants to Be Your Therapist”

IBM HP Schlumberger GE Energy GE Infrastructure UPS MasterCard etc. etc. etc. etc.

Flagship of Best Buy Wholesale “Solutions” Strategy Makeover. I. LAN Installation Co. (3%) II. Geek Squad. (30%.) III. Acquired by Best Buy. IV. Flagship of Best Buy Wholesale “Solutions” Strategy Makeover.

Huge: Satisfaction Success Huge: Customer Satisfaction versus Customer Success

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

“Customer Satisfaction” to “Customer Success”: “We’re getting better at [Six Sigma] every day. But we really need to think about the customer’s profitability: Are customers’ bottom lines really benefiting from what we provide them?” —Bob Nardelli, then chief of GE Power Systems

“He had done nothing to sell me on his business, yet he had given me the most powerful sales pitch of my life. Because his sole concern had been my welfare and the success of my business.” —Jim Penman, on learning how to sell (What Will They Franchise Next? The Story of Jim’s Group)

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

“The business of selling is not just about matching viable solutions to the customers that require them. It’s equally about managing the change process the customer will need to go through to implement the solution and achieve the value promised by the solution. One of the key differentiators of our position in the market is our attention to managing change and making change stick in our customers’ organization.”* (*E.g.: CRM failure rate/Gartner: 70%) —Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale

The Value-added Ladder/TRANSFORMATION Customer Success through Implemented Gamechanging Solutions* Services Goods Raw Materials *Subject-matter Professionals and Organization Effectiveness Experts (Degree: MBA, Organizational Psychology)

“ ‘Architecture’ is becoming a commodity. Winners will be ‘Turnkey Facilities Management’ providers.” SMPS Exec

Era #1/Obvious Value : “Our ‘it’ works, is delivered on time” (“Close”) Era #2/Augmented Value : “How our ‘it’ can add value—a ‘useful it’ ” (“Solve”) Era #3/Complex Value Networks : “How our ‘system’ can change you and deliver ‘business advantage ’ ” (“Culture- Strategic change”) Era #1/Obvious Value : “Our ‘it’ works, is delivered on time” (“Close”) Era #2/Augmented Value : “How our ‘it’ can add value—a ‘useful it’ ” (“Solve”) Era #3/Complex Value Networks : “How our ‘system’ can change you and deliver ‘business advantage ’ ” (“Culture- Strategic change”) Source: Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale

#26.1.1

Up, Up, Up, Up Up, Up, Up, Up the Value-added Ladder.

EXCELLENCE. SOLVE IT. NO OPTION. PSF. (PSF++)

Organizations will still be critically important in the world, but as ‘organizers,’ not ‘employers’!” — Charles Handy “ Organizations will still be critically important in the world, but as ‘organizers,’ not ‘employers’!” — Charles Handy

you’ve become irrelevant to your customers.” “ ‘Disintermediation’ is overrated. Those who fear disintermediation-outsourcing should in fact be afraid of irrelevance; ‘outsourcing’ is just another way of saying that … you’ve become irrelevant to your customers.” —John Battelle/Point/Advertising Age/07.05

(500 of 900 Research) “Deutsche Bank Moves Half of Its Back-office Jobs to India”/ headline/FT/0327 (500 of 900 Research)

Every job done in W.C.W. [White Collar World] is also done “outside” … for profit!

HRMAC Chicago: HRMAC

‘overhead.’” Sarah: “ Mom, what do you do?” Mom : “I’m ‘overhead.’”

“support function” / “cost center”/ “overhead” or … “support function” / “cost center”/ “overhead” or …

“ Rock Stars of the Age of Talent” Are you … “ Rock Stars of the Age of Talent”

Managing Partner, ISInc. Department Head to … Managing Partner, IS [HR, R&D, etc.] Inc.

PSF Answer: PSF

PSF Brand You Wow! Projects Core Mechanism : “Game-changing Solutions” PSF (Professional Service Firm “model”/The Organizing Principle ) + Brand You (“Distinct” or “Extinct”/The Talent ) + Wow! Projects (“Different” vs “Better”/The Work )

Series/Reinventing Work The Project 50: Fifty Ways To Transform Every “Task” Into A Project That Matters The Professional Service Firm 50: Fifty Ways To Transform Your “Department” Into A Professional Service Firm Whose Trademarks Are Passion And Innovation The Brand You 50: Fifty Ways To Transform Yourself From An “Employee” Into A Brand That Shouts Distinction, Commitment And Passion Series/Reinventing Work The Project 50: Fifty Ways To Transform Every “Task” Into A Project That Matters The Professional Service Firm 50: Fifty Ways To Transform Your “Department” Into A Professional Service Firm Whose Trademarks Are Passion And Innovation The Brand You 50: Fifty Ways To Transform Yourself From An “Employee” Into A Brand That Shouts Distinction, Commitment And Passion

“Principal Engine of Value Added” Are you the … “Principal Engine of Value Added” *E.g.: Your R&D budget as robust as the New Products team?

#26.1.2

The “PSF35” : Thirty-Five Professional Service Firm Marks of Excellence

1. CRYSTAL CLEAR POINT OF VIEW The PSF35: The Work & The Legacy 1. CRYSTAL CLEAR POINT OF VIEW (E very Practice Group: “If you can’t explain your position in eight (E very Practice Group: “If you can’t explain your position in eight words or less, you don’t have a position”—Seth Godin) 2. DRAMATIC DIFFERENCE (“We are the only ones who do what words or less, you don’t have a position”—Seth Godin) 2. DRAMATIC DIFFERENCE (“We are the only ones who do what we do”—Jerry Garcia) 3. Stretch Is Routine (“Never bite off less than you can chew”—anon.) 4. Eye-Appetite for Game-changer Projects (Excellence at Assembling we do”—Jerry Garcia) 3. Stretch Is Routine (“Never bite off less than you can chew”—anon.) 4. Eye-Appetite for Game-changer Projects (Excellence at Assembling “Best Team”—Fast) 5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change “Best Team”—Fast) 5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change the World) 6. Small “Uneconomic” Clients with Big Aims the World) 6. Small “Uneconomic” Clients with Big Aims 7. Life Is Too Short to Work with Jerks (Fire lousy clients) 8. OBSESSED WITH LEGACY (Practice Group and Individual: “Dent the Universe”—Steve Jobs) 9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/ Universe”—Steve Jobs) 9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/ I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ” I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ” 10. Consistent with #9 above … DO NOT SHY AWAY FROM THE WORD (IDEA) “RADICAL” WORD (IDEA) “RADICAL”

Pointed Point of View!

R.POV8 *Remarkable Point Of View/8 Words or less: “If you can’t state your position in eight words or less you don’t have a position.”—SG R.POV8* *Remarkable Point Of View/8 Words or less: “If you can’t state your position in eight words or less you don’t have a position.”—SG

Richard Sennett: “Craftsmanship,” “a sustaining life narrative” Richard Sennett: “Craftsmanship,” “a sustaining life narrative” Source: Stefan Stern on Management, FT,

11. Always team with client: “full partners in achieving memorable results” (Wanted: “Chimeras of Moonstruck Minds”!) 12. We will seek assistance Anywhere to assemble the Best-in- Planet Team for the Project 13. Client Team Members routinely declare that working with us was “the Peak Experience of my Career” 14. The job’s not done until implementation is “100.00% complete” (Those who don’t “get it” must go) 15. IMPLEMENTATION IS NOT COMPLETE UNTIL THE CLIENT HAS EXPERIENCED “CULTURE CHANGE” 16. IMPLEMENTATION IS NOT COMPLETE UNTIL SIGNIFICANT “TECHNOLOGY TRANSFER HAS TAKEN PLACE-ROOT (“Teach a man to fish …”) 17. The Final Exam: DID WE MAKE A DRAMATIC, LASTING, GAME-CHANGING DIFFERENCE? The PSF35: The Client Experience 11. Always team with client: “full partners in achieving memorable results” (Wanted: “Chimeras of Moonstruck Minds”!) 12. We will seek assistance Anywhere to assemble the Best-in- Planet Team for the Project 13. Client Team Members routinely declare that working with us was “the Peak Experience of my Career” 14. The job’s not done until implementation is “100.00% complete” (Those who don’t “get it” must go) 15. IMPLEMENTATION IS NOT COMPLETE UNTIL THE CLIENT HAS EXPERIENCED “CULTURE CHANGE” 16. IMPLEMENTATION IS NOT COMPLETE UNTIL SIGNIFICANT “TECHNOLOGY TRANSFER HAS TAKEN PLACE-ROOT (“Teach a man to fish …”) 17. The Final Exam: DID WE MAKE A DRAMATIC, LASTING, GAME-CHANGING DIFFERENCE?

It’s equally about managing the change process the customer will need to go through to implement the solution and achieve the value promised by the solution “The business of selling is not just about matching viable solutions to the customers that require them. It’s equally about managing the change process the customer will need to go through to implement the solution and achieve the value promised by the solution.”* (*E.g.: CRM failure rate/Gartner: 70%) — Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale

UniCredit Group/ UniCredito Italiano* ** —3 rd party measurement —Customer-initiated measurement —Primary $$$$ incentives —“Factories” —Primary Corporate Initiative —Etc *#13 **TP/#1

Ideal “finance staffer”: Full-scale “business partner” [CFO?] to the/each department she serves.

Ideal “finance staffer”: **Full-scale “business partner” [CFO?] to the/each department [CFO?] to the/each department she serves. she serves. **Not cop—obsessed instead with value-added value-added **Integration first, “stovepipe” secondary secondary**MBWA/bigtime **Networker to the rest of Finance

18. TALENT FANATICS (“Best-Coolest place to work”) (PERIOD) 19. EYE FOR THE PECULIAR (Hiring: Go beyond “same old, The PSF35: The People & The Leadership 18. TALENT FANATICS (“Best-Coolest place to work”) (PERIOD) 19. EYE FOR THE PECULIAR (Hiring: Go beyond “same old, same old”) 20. Early Opportunities (vs. “Wait your turn”) 21. Up or Out (Based on “Legacy”/Mentoring as much as same old”) 20. Early Opportunities (vs. “Wait your turn”) 21. Up or Out (Based on “Legacy”/Mentoring as much as “Billings”/“Rainmaking”) 22. Slide the Old Aside/Make Room for Youth (Find oldsters “Billings”/“Rainmaking”) 22. Slide the Old Aside/Make Room for Youth (Find oldsters new roles?) 23. TALENT IS OBSESSED WITH RENEWAL FROM DAY #1 TO new roles?) 23. TALENT IS OBSESSED WITH RENEWAL FROM DAY #1 TO DAY #“R” [R = Retirement] 24. Office/Practice Leaders Evaluated Primarily on DAY #“R” [R = Retirement] 24. Office/Practice Leaders Evaluated Primarily on Mentoring-Team Building Skills Mentoring-Team Building Skills 25. A “PROPRIETARY” TALENT DEVELOPMENT PROCESS (GE) 26. Team Leadership Skills Valued Early 27. Partner with B.I.W. [Best In World] Outsiders as Needed and to Infuse Different Views and to Infuse Different Views

28. EAT-SLEEP-BREATHE-OOZE INTEGRITY (“My life The PSF35: The Firm & The Brand 28. EAT-SLEEP-BREATHE-OOZE INTEGRITY (“My life is my message”—Gandhi) is my message”—Gandhi) 29. Excellence+ in EXECUTION … % of the Time 30. “Drop everything”/“Swarm” to Support a Harried-On The Verge Team 31. SPEND ON R&D LIKE A TECH FIRM. The Verge Team 31. SPEND ON R&D LIKE A TECH FIRM. 32. A PROPRIETARY METHODOLOGY (FBR, McKinsey, Chiat Day, IDEO, old EDS) Chiat Day, IDEO, old EDS) 33. BRAND MANIACS (Organize Around a Point of View Worth BROADCASTING) BROADCASTING) 34. PASSION! ENTHUSIASM! 35. EXCELLENCE. ALWAYS.

(1) Translate ALL departmental activities into discrete W.W.P.F. “Products.” (2) 100% go on the Web. (3) Non-awesome are outsourced (75%??). (4) Remaining “Centers of Excellence” are retained & leveraged to the hilt!

BMW’s Designworks/USA: >50% from outside work

Integrity. Quality. Continuous Improvement. Superior Service (Exceeds Expectations.) Completely Satisfactory Transaction. Smooth Evolution. Market Share. Dramatic Difference! Disruptive! Insanely Great! (Quality++++) Life-(Industry-)changing Experience! Game-changing! WOW! Surprise! Delight! Breathtaking! Punctuated Equilibrium! Market Creation! Static/Imitative Integrity. Quality. Continuous Improvement. Superior Service (Exceeds Expectations.) Completely Satisfactory Transaction. Smooth Evolution. Market Share. Dynamic/Different Dramatic Difference! Disruptive! Insanely Great! (Quality++++) Life-(Industry-)changing Experience! Game-changing! WOW! Surprise! Delight! Breathtaking! Punctuated Equilibrium! Market Creation!

EXCELLENCE = Flawless EXECUTION + Continuous IMPROVEMENT + Brilliantly Trained PEOPLE Gamechanging QUESTS + WEIRD Rosters + GASPWORTHY Results EXCELLENCE = Flawless EXECUTION + Continuous IMPROVEMENT + Brilliantly Trained PEOPLE + Gamechanging QUESTS + WEIRD Rosters + GASPWORTHY Results

#26.1.3

Psf. Bedrock.

PSF/Professional Service Firm/Beliefs Profession: Calling/Passion to make a difference/Excellence (always) point of view: know exactly what we stand for/ “Dramatic Difference” Client: enduring, test-the-limits relationship/“Trusted advisor” Solution: Rock His-her World/ “wow” / implemented “Culture change”/ >>>>>> “satisfaction” PSF/Professional Service Firm/Beliefs Profession: Calling/Passion to make a difference/Excellence (always) point of view: know exactly what we stand for/ “Dramatic Difference” Client: enduring, test-the-limits relationship/“Trusted advisor” Solution: Rock His-her World/ “wow” / implemented “Culture change”/ >>>>>> “satisfaction”

#

Full Partner- Leader in Lifetime Value-added Maximization “Purchasing Officer” Thrust #1: Cost (at All Costs*) Minimization Professional ? Or/to: Full Partner- Leader in Lifetime Value-added Maximization ? (*Lopez: “Arguably ‘Villain #1’ in GM tragedy”/Anon VSE-Spain)

#

Chief of Fleet Lifetime Value Maximization Strategic Supply-chain Executive Customer Experience Director Fleet Manager Rolling Stock Cost Minimization Officer vs/or Chief of Fleet Lifetime Value Maximization Strategic Supply-chain Executive Customer Experience Director (via drivers)

#

Full-scale, Accountable Member-Partner of XYZ Hospital’s Senior Healing-Services Team HCare CIO : “Technology Executive” (workin’ in a hospital) Or/to: Full-scale, Accountable (life or death) Member-Partner of XYZ Hospital’s Senior Healing-Services Team (who happens to be a techie)

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Financial Services Make dealers successful so they CAN pay Trek is the commercial financial Company 12 employees Oversee peak AR of $160M Identify opportunities Profit Center Products: Consulting, MC/Visa, Stored value of gift cards, Gift card peripherals, Online payments PSF Transformation: Credit Department/Trek Was Is Credit Dept Financial Services Hammer on dealers until Make dealers successful so they they pay CAN pay AR sold to 3 rd party Trek is the commercial financial commercial co. Company 23 employees 12 employees Oversee peak AR of $70M Oversee peak AR of $160M Identify risky dealers Identify opportunities Cost Center Profit Center No products Products: Consulting, MC/Visa, Stored value of gift cards, Gift card peripherals, Online payments Source: John Burke/

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Ideal “finance staffer”: Full-scale “business partner” [CFO?] to the/each department she serves.

Ideal “finance staffer”: **Full-scale “business partner” [CFO?] to the/each department [CFO?] to the/each department she serves. she serves. **Not cop—obsessed instead with value-added value-added **Integration first, “stovepipe” secondary secondary**MBWA/bigtime **Networker to the rest of Finance

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Photographer: Louise Roach

“Corporation” as Mega-“PSF” (Professional Service Firm*) Big Idea: “Corporation” as Mega-“PSF” (Professional Service Firm*) * “Virtual” Collection of Entrepreneurially-minded Professionals (“Talent”/“Roster”) Creating/Applying Intellectual Capital (“Work Product”)

“Principal Engine of Value Added” Are you the … “Principal Engine of Value Added” *E.g.: Your R&D budget as robust as the New Products team?

Brand You(S) Wow! Project(s) = PSF(S) “Corporation” as “Mega-PSF” Core Mechanism : “Game-changing Solutions” Brand You(S) (“Distinct” or “Extinct”/The Talent ) + Wow! Project(s) (“Different” vs “Better”/The Work ) = PSF(S) (Professional Service Firm “model”/The Organizing Principle ) = “Corporation” as “Mega-PSF”

PSF (VA, Wow) + XFX (Wow) = X (Wow)

Photographer: Mike Brake

The FEVP/Fundamental Enterprise Value-Added Proposition-Equation/Mark2008 (1) 100% “WOW PROJECTS” (New Org “DNA”/“The Work”) + (2) Incredible “TALENT” Transformed into (3) Entrepreneurial “BRAND YOUs” and (4) Given Room-to-Roam & Launched on Awesome “QUESTS” = (5) Internal “ Rockin’ PSFs” (Staff Depts. Morphed into Wildly Innovative Professional Service Firms) … (6) Which Coalesce to Transform the FEVP/Fundamental Enterprise Value Proposition from “Superior Products & Services” to “ENCOMPASSING SOLUTIONS” & “GAME-CHANGING CLIENT SUCCESS”

(1) The Talent: “Best Roster” of Entrepreneurial- minded Brand Yous. (2) The (Virtual) Organization: Internal or External “PSF”/Professional Service Firm working with “Best Anywhere” = Engine of Value Added through the Application of Creative “Intellectual Capital” (3) The Work Product: “Game Changer”/ “Gaspworthy” WOW Projects Big Idea/“Meta”-Idea/Premier “Engine of Value Added” (1) The Talent: “Best Roster” of Entrepreneurial- minded Brand Yous. (2) The (Virtual) Organization: Internal or External “PSF”/Professional Service Firm working with “Best Anywhere” = Engine of Value Added through the Application of Creative “Intellectual Capital” (3) The Work Product: “Game Changer”/ “Gaspworthy” WOW Projects

“… but I'm having a hard time imagining 300 million Brand Yous.” imagining 300 million Brand Yous.” “Would you call a clerk in a purchasing department at a big insurance company "brand you"? Probably not. But what about a single Hispanic Mom, age 32, raising 3 kids in the LA area and holding 2.5 jobs to do so? I'd call her a hero, self- reliant, resilient--and a Brand You!” Posted by tom peters at November 20, :16 PM

#26.1.4

WOW! The WOW! Project.

A “position” is not an “accomplishment.” A “position” is not an “accomplishment.” —TP

“Let’s make a dent in the universe!” “Let’s make a dent in the universe!” —Steve Jobs

Your Current Project? 1. Another day’s work/Pays the rent. 4. Of value. 7. Pretty Damn Cool/Definitely subversive. 10. WE AIM TO CHANGE THE WORLD. (Insane!/Insanely Great!/WOW!)

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

If you are not prepared to be fired over your beliefs … you are working on the wrong project. If you are not prepared to be fired over your beliefs … you are working on the wrong project. —TP

#26.1.5

WOW! WOW! Projects: Nuts & Bolts (a few)

Playmate!* Playpen! Prototype! Playmate!* Playpen! Prototype! *Can be Client, supplier … as well as Insider

F.F.F.F. Where to look for “Playmates”: F.F.F.F. (Find a Fellow Freak Faraway)

F2F!/f2fK!/ *Freak-to-Freak/Freak-to-Freaky Kustomer/ One at a Time/ Ready.Fire!Aim.

: The “Sri Lanka Stratagem” Forward, march: The “Sri Lanka Stratagem”

BIG BIG BIG UP Where NOT to look for “Playmates”: BIG Division, BIG Customer, BIG Vendor, UP

the most valuable core competence Culture of Prototyping “ Effective prototyping may be the most valuable core competence an innovative organization can hope to have.” —Michael Schrage

#26.1.6

WOW! Projects Epidemic: Demos, Heroes, Stories! Starting a WOW! Projects Epidemic: Demos, Heroes, Stories!

“ Ordering” Systemic Change is a Waste of Time! Premise: “ Ordering” Systemic Change is a Waste of Time!

“Somewhere in your organization, groups of people are already doing things differently and better. To create lasting change, find these areas of positive deviance and fan the flames.” —Richard Tanner Pascale & Jerry Sternin, “Your Company’s Secret Change Agents,” HBR

“Some people look for things that went wrong and try to fix them. I look for things that went right, and try to build off them.” —Bob Stone (Mr ReGo)

JKC

JKC 1. Scour for renegades; wine & dine. 2. Go outside for funds.

the effective communication of a story.” Demo = Story “A key – perhaps the key – to leadership is the effective communication of a story.” —Howard Gardner, Leading Minds: An Anatomy of Leadership

Best story wins!

Demos & Models (“Model Installations,” “ReGo Labs”)/ Heroes (mostly extant: “burned to reinvent gov’t”)/ Stories & Storytellers (Props!)/ Chroniclers (Writers, Videographers, Pamphleteers, Etc.)/ Cheerleaders & Recognition (Pos>>Neg, Volume)/ New Language (Hot/Emotional/WOW)/ Seekers (networking mania)/ Protectors / Support Groups / End Runs—“Pull Strategy” (weird alliances, weird customers, weird suppliers, weird alumnae-JKC)/ Field “Real People” Focus (3 COs) (long way away)/ Speed (O.O.D.A. Loops—act before the “bad guys” can react) C.f., Bob Stone, Lessons from an Uncivil Servant REAL Org Change: Demos & Models (“Model Installations,” “ReGo Labs”)/ Heroes (mostly extant: “burned to reinvent gov’t”)/ Stories & Storytellers (Props!)/ Chroniclers (Writers, Videographers, Pamphleteers, Etc.)/ Cheerleaders & Recognition (Pos>>Neg, Volume)/ New Language (Hot/Emotional/WOW)/ Seekers (networking mania)/ Protectors / Support Groups / End Runs—“Pull Strategy” (weird alliances, weird customers, weird suppliers, weird alumnae-JKC)/ Field “Real People” Focus (3 COs) (long way away)/ Speed (O.O.D.A. Loops—act before the “bad guys” can react) C.f., Bob Stone, Lessons from an Uncivil Servant

Demos! Heroes! Stories!

(The Parallel Universe Strategy) Build a “School on top of a school”/Continuing- Exec Ed (The Parallel Universe Strategy)

Stories … Paint me a picture … Story “infrastructure” … Demos … Quick prototypes … Experiments … Heroes … Renegades … Skunkworks … Demo Funds … V.C. … G.M. … Roster … Portfolio … Stone’s Rules … JKC’s Rules

Be(very)ware “genetic constraints” (history’s looong arm) You must “do” Gandhi Hire weird (fulltime or temp) Find the extant crazies (troll for them via offers to join weird project teams) Create a (quiet) “Crazies Club”/Keep extendin’ the Web Create “boondocks projects” by the truckload (with partners of every flavor) Understand: Yours is a “protection racket” Sky High Standards!! (There’s a deadly serious reason for “all this”—life or death) TP Heroes: Allan Puckett; Bob Stone; Jill Ker Conway; Kelly Johnson; John Boyd Subversive Change Be(very)ware “genetic constraints” (history’s looong arm) You must “do” Gandhi Hire weird (fulltime or temp) Find the extant crazies (troll for them via offers to join weird project teams) Create a (quiet) “Crazies Club”/Keep extendin’ the Web Create “boondocks projects” by the truckload (with partners of every flavor) Understand: Yours is a “protection racket” Sky High Standards!! (There’s a deadly serious reason for “all this”—life or death) TP Heroes: Allan Puckett; Bob Stone; Jill Ker Conway; Kelly Johnson; John Boyd

“Yes! Work with him/her to re-frame their principal project to the point that their ego is fully engaged and it becomes something of a ‘life compulsion.’ SP: “But can you turn a ‘defensive player’ into an ‘offensive player’?” TP: “Yes! Work with him/her to re-frame their principal project to the point that their ego is fully engaged and it becomes something of a ‘life compulsion.’ ” * * “If you and I had $150K in the bank and on the line and the day before the opening the Fire Inspector …”

Up, Up, Up, Up Up, Up, Up, Up the Value-added Ladder.

#26.2

EXCELLENCE. VALUE-ADDED LADDER II. EXPERIENCE IT.

“ 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

similar similar similar similar similar similar s imilar “The ‘surplus society’ has a surplus of similar companies, employing similar people, with similar educational backgrounds, coming up with similar ideas, producing similar things, with similar prices and s imilar quality.” —Kjell Nordström and Jonas Ridderstråle, Funky Business

not This is not a “mature category.”

This is an “ undistinguished category.”

When we did it ‘right’ it was still pretty ordinary.” “When we did it ‘right’ it was still pretty ordinary.” —Barry Gibbons on “Nightmare No. 1”

“Companies have defined so much ‘best practice’ that they are now more or less identical.” —Jesper Kunde, Unique Now... or Never

“We have identified a ‘third place.’ “The [ Starbucks ] Fix” Is on … “We have identified a ‘third place.’ And I really believe that sets us apart. The third place is that place that’s not work or home. It’s the place our customers come for refuge.” —Nancy Orsolini, District Manager

Warren Goes Shopping …

Q: “Why did you buy Jordan’s Furniture?” A: “Jordan’s is spectacular. It’s all showmanship.” Source: Warren Buffet interview/Boston Sunday Globe/

“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.” Harley 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.” Harley exec, quoted in Results-Based Leadership

The Value-added Ladder/ MEMORABLE CONNECTION Spellbinding Experiences* Customer Success/Implemented Gamechanging Solutions Services Goods Raw Materials *Theatrical Skills (Degree: Theater Arts)

“Great Vacation”/ “Great Conference”/ “Operation Personal Renewal” Beyond the “Transaction”/ “Satisfaction” Mentality “Good hotel”/ “Happy guest”/ “Exceeded Expectations” vs. “Great Vacation”/ “Great Conference”/ “Operation Personal Renewal”

C X O C X O* *Chief e X perience Officer

First Step (?!): Hire a theater director, as a consultant or FTE!

“Car designers need to create a story. Every car provides an opportunity to create an adventure. … “The Prowler makes you smile. Why? Because it’s focused. It has a plot, a reason for being, a passion.” Freeman Thomas, co-designer VW Beetle; designer Audi TT

Hmmmm(?): “Only” Words … Story Adventure Smile Focus Plot Passion

“ Most executives have no idea how to add value to a market in the metaphysical world. “ Most executives have no idea how to add value to a market in the metaphysical world. But that is what the market will cry out for in the future. There is no lack of ‘physical’ products to choose between.” Jesper Kunde, Unique Now... or Never [on the excellence of Nokia, Nike, Lego, Virgin et al.]

Male Female dominance Extraction & Goods: Male dominance Services & Experiences: Female dominance

#26.2.1

Five pianos

Planetree: A Radical Model for New Healthcare/Healing/ Wellness Excellence

"All sane persons agree that 'healthcare needs an overhaul.' And that's where the agreement stops. Healthcare issues are thorny, and system panaceas are about as likely as the sun rising in the West. But there is good news here and there--and great news courtesy the Planetree Model. "In the midst of ceaseless gnashing of teeth over 'healthcare issues,' the patient and frontline staff often get lost in the shuffle. Enter Planetree. While oceanic systemic solutions remain out of reach, Planetree provides a remarkable demonstration of what healthcare--with the patient at the center- -can be all about; and is all about among Planetree Alliance members. "I know this may sound ridiculous, but everything about the 'model' works. It is great for patients and their families--and is truly about humanity and healing and health and longterm wellness, not just a 'fix' for today's problem. It is great for staff--Planetree-Griffin is rightly near the top of the 'best places to work in America' list, year in and year out. And Planetree also works as a 'business model'--any effectiveness measure you can name is in the Green Zone at Griffith. "For 25 years my 'gig' has been 'excellence.' Put simply, there is no better exemplar of customer-centered, employee-friendly excellence, in any industry, than Griffin-Planetree. The Planetree model works--and in my extensive work in the health sector, I 'sell' it shamelessly, and pray that my clients are taking it all in." tom peters/response to request for comment on Planetree

1. The Importance of Human Interaction Informing and Empowering Diverse Populations: Consumer Health Libraries and Patient Information Healing Partnerships: The importance of Including Friends and Family Nutrition: The Nurturing Aspect of Food Spirituality: Inner Resources for Healing 6. Human Touch: The Essentials of Communicating Caring Through Massage 7. Healing Arts: Nutrition for the Soul 8. Integrating Complementary and Alternative Practices into Conventional Care 9. Healing Environments: Architecture and Design Conducive to Health The 9 Planetree Practices 1. The Importance of Human Interaction 2. Informing and Empowering Diverse Populations: Consumer Health Libraries and Patient Information 3. Healing Partnerships: The importance of Including Friends and Family 4. Nutrition: The Nurturing Aspect of Food 5. Spirituality: Inner Resources for Healing 6. Human Touch: The Essentials of Communicating Caring Through Massage 7. Healing Arts: Nutrition for the Soul 8. Integrating Complementary and Alternative Practices into Conventional Care 9. Healing Environments: Architecture and Design Conducive to Health Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Patients are stripped of control, their clothes are taken away, they have little say over their schedule, and they are deliberately separated from their family and friends. Healthcare professionals control all of the information about their patients’ bodies and access to the people who can answer questions and connect them with helpful resources. Families are treated more as intruders than loved ones.” The Patient-Family Experience “Patients are stripped of control, their clothes are taken away, they have little say over their schedule, and they are deliberately separated from their family and friends. Healthcare professionals control all of the information about their patients’ bodies and access to the people who can answer questions and connect them with helpful resources. Families are treated more as intruders than loved ones.” —Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

The Importance of Human Interaction 1. The Importance of Human Interaction

none of THE top 15 factors determining P atient S atisfaction referred to patient’s health outcome PS directly related to Staff Interaction PS directly correlated with Employee Satisfaction 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 PS directly related to Staff Interaction PS directly correlated with Employee Satisfaction Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

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

Informing and Empowering Diverse Populations: Consumer Health Libraries and Patient Information 2. Informing and Empowering Diverse Populations: Consumer Health Libraries and Patient Information

Planetree Health Resources Center/1981 Planetree Classification System Consumer Health Librarians Volunteers Classes, lectures Health Fairs Griffin’s Mobile Health Resource Center Open Chart Policy Patient Progress Notes Care Coordination Conferences (Est goals, timetable, etc.) Planetree Health Resources Center/1981 Planetree Classification System Consumer Health Librarians Volunteers Classes, lectures Health Fairs Griffin’s Mobile Health Resource Center Open Chart Policy Patient Progress Notes Care Coordination Conferences (Est goals, timetable, etc.) Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Healing Partnerships: The Importance of Including Friends and Family 3. Healing Partnerships: The Importance of Including Friends and Family

Care Partner Programs Unrestricted visits Collaborative Care Conferences Clinical Guidelines Discussions Family Spaces Pet Visits Care Partner Programs (IDs, discount meals, etc.) Unrestricted visits (“Most Planetree hospitals have eliminated visiting restrictions altogether.”) (ER at one hospital “has a policy of never separating the patient from the family, and there is no limitation on how many family members may be present.”) Collaborative Care Conferences Clinical Guidelines Discussions Family Spaces Pet Visits (POP: Patients’ Own Pets) Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Nutrition: The Nurturing Aspect of Food 4. Nutrition: The Nurturing Aspect of Food

Kitchen Beautiful cutlery, plates, etc Chef reputation Kitchen Beautiful cutlery, plates, etc Chef reputation Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Spirituality: Inner Resources for Healing 5. Spirituality: Inner Resources for Healing

redesign chapel music, flowers, portable labyrinth Griffin: redesign chapel (waterfall, quiet music, open prayer book) Other : music, flowers, portable labyrinth Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Human Touch: The Essentials of Communicating Caring Through Massage 6. Human Touch: The Essentials of Communicating Caring Through Massage

Massage for every patient scheduled for ambulatory surgery (“Go into surgery with a good attitude”) Infant massage Staff massage (“caring for the caregivers”) Healing environments: chemo! Mid-Columbia Medical Center/Center for Mind and Body Massage for every patient scheduled for ambulatory surgery (“Go into surgery with a good attitude”) Infant massage Staff massage (“caring for the caregivers”) Healing environments: chemo! Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

7. Healing Arts: Nutrition for the Soul

Griffin: Music in the parking lot; professional musicians in the lobby (7/week, 3-4hrs/day) ; 5 pianos ; volunteers ( hrs arts & entertainment per month). Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Integrating Complementary and Alternative Practices into Conventional Care 8. Integrating Complementary and Alternative Practices into Conventional Care

Massage Acupuncture Meditation Chiropractic Nutritional supplements Aroma therapy Griffin IMC/Integrative Medicine Center Massage Acupuncture Meditation Chiropractic Nutritional supplements Aroma therapy Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

9. Healing Environments: Architecture and Design Conducive to Health

Woods and natural materials Indirect lighting Homelike settings Goals: Welcome patients, friends and family … Value humans over technology.. Enable patients to participate in their care … Provide flexibility to personalize the care of each patient … Encourage caregivers to be responsive to patients … Foster a connection to nature and beauty “Planetree Look” Woods and natural materials Indirect lighting Homelike settings Goals: Welcome patients, friends and family … Value humans over technology.. Enable patients to participate in their care … Provide flexibility to personalize the care of each patient … Encourage caregivers to be responsive to patients … Foster a connection to nature and beauty Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

“Happen to” “Happen with” Access to nurses station: “Happen to” vs “Happen with” Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel

Conclusion: Caring/Growth “Experience”

“It was the goal of Planetree to help patients not only get well faster but also to stay well longer.” “It was the goal of Planetree to help patients not only get well faster but also to stay well longer.” —Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel (Planetree Alliance/Griffin Hospital)

Care!/Love!/Spirit! Self-Control! Connect!/learn!/ involve!/Engage! Understanding!/Growth! De-stress!/heal! Whole patient & family & friends! be well!/stay well!

“ Planetree is about human beings caring for other human beings.” —Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel (“Ladies and gentlemen serving ladies and gentlemen”—4S credo)

F.Y.I.: It works!

Griffin Hospital/Derby CT (Planetree Alliance “HQ”) Results: Financially successful. Expanding programs- physically. Growing market share. Only hospital in “100 Best Cos to Work for”— 7 consecutive years, currently #6. Griffin Hospital/Derby CT (Planetree Alliance “HQ”) Results: Financially successful. Expanding programs- physically. Growing market share. Only hospital in “100 Best Cos to Work for”— 7 consecutive years, currently #6. —“Five-Star Hospitals,” Joe Flower, strategy+business (#42)

9 July 2008/HealthLeaders Media 2008 Top Leadership Team in Healthcare: Griffin Hospital

“How will you know when the healthcare industry has finally entered the 21 st century? When error rates at hospitals are close to zero. When doctors and nurses use evidence-based protocols in your treatment. When you can decide how much to spend on treatment, and you have the information and the opportunity to determine the best value. When your primary care physician is in charge of your extended care team, operating as your command central. When all members of the medical community—nurses, doctors, pharmacists and specialists—work together seamlessly on your behalf. When their combined efforts are tracked, measured, and reported on—and the insurance reimbursements awarded to them are based on performance. When you see that hospitals, pharmacies and doctors are working harder in all aspects to make sure you are an informed consumer who has trust and confidence in the services they offer and the prices they charge.” —John Hammergren & Phil Harkins, Skin in the Game: How Putting Yourself First Today Will Revolutionize Healthcare Tomorrow

“What’s Really Propping Up the Economy: Healthcare has added 1.7 million jobs since The rest of the private sector? None.” Source: Title, cover story, BusinessWeek,

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Part One: A Civilian Looks at Your World

“If we sent 30 percent of the doctors in this country to Africa, we might raise the level of health on both continents.” —Dr Elliott Fisher, Center of Evaluative Clinical Sciences, Dartmouth Medical School (“Overdose,” Atlantic, Shannon Brownlee.)

The Healthcare14: U.S. Healthcare Trauma in 2008 The Healthcare14: U.S. Healthcare Trauma in 2008 U.S. Life expectancy rank: #45. WHO, overall American healthcare system performance: #37 (#1 in cost). (#1 in cost). Access: Denied to 10s of millions un/underinsured. Unnecessary annual health-system deaths: 200, ,000 or more.* more.* Performance/top med centers: Problematic re quality of care and follow-up.* and follow-up.* Over-treatment (meds, tests, procedures): Pandemic.* Use of hard evidence in medical decision-making: Spotty at best.* Collection of evidence based on reported treatment errors: Low.* Use of S.O.P.s in treatment regimes: Spotty.* Incentives for appropriate care: Low.* Incentives for in-appropriate care: High.* Emphasis on prevention and wellness: Low.* Emphasis on chronic-care: Low.* State-of-the-art IS/IT: Rare.* *Fixable without legislation or major societal change—eg can by and large be improved dramatically without some form of mandated universal access to care and in the absence of, say, a full-fledged War on Obesity. (Evidence in support of this proposition is the fact that in every category starred above there are Pockets of Excellence—hospitals and other health-service organizations, facing the same realities as their peers, that really “get it.”)

TP & Healthcare/May 2008: ***Prevention and wellness ***Population outcomes, outcomes in general; key metrics key metrics ***EMR, info-tech for procedural integration and guidance for evidence-based treatment. evidence-based treatment.***Safety***Quality ***Chronic care ***Provision of the basics ***Simple tools (Checklists) ***Clinical micro-systems (Patient Care Teams) ***Patient Quarterbacks (Family Practice specialists, PAs, Nurses) PAs, Nurses) ***Patient-centric/Healing environments (Planetree/Griffin) ***Evidence-based medicine ***Primary care ***Overtreatment***Obesity

Outline: 17 “Chapters”

1.Some Resources 2.“ ‘Bottom’ Line” (??): U.S. Life Expectancy Ranks #45 3.K.I.A. & Wounded: A House (Hospital) of a Half-million Horrors 4.How “It” “Works” (And Feels to the Inmates) 5. You Must Be Your Own Boss! 6. Over-treatment!!!!!!!!!!!! (One-third of Total Cost) 7. F.Y.I.: The Dominating (!) Role of Healthcare in the American Economy in the American Economy 8. Pick of the Litter: Our “Best” Hospitals? (Hint: Drum Roll for the VA!) 9. See No Evil, Report No Evil: A Culture of Cover-up Cover-up

10. And “They” Call It “Science” I: The Overwhelming Lack of Treatment Validation Overwhelming Lack of Treatment Validation 11. And “They” Call It “Science” II: Astounding Geographic Treatment Variation Geographic Treatment Variation 12. Shining Star, A/The … 13. IS/IT: The “Dark Ages” Saga Continues 14. K.I.S.S./Keep It Simple, Stupid: Un-sexy “Stuff” Could Save Tens of Thousands of “Stuff” Could Save Tens of Thousands of Lives and Extend Hundreds of Thousands Lives and Extend Hundreds of Thousands of Others of Others 15. Wellness-Prevention: No Good Deed Goes Unpunished Unpunished 16. From “Healthcare” to “Health”: The “Oughtas” The “Oughtas” 17. Healthcare Meets Health: The Incredible Case of the Planetree Alliance Case of the Planetree Alliance Bonus: Tom’s Nobels

10. And “They” Call It “Science” I: The Overwhelming Lack of Treatment Validation Overwhelming Lack of Treatment Validation 11. And “They” Call It “Science” II: Astounding Geographic Treatment Variation Geographic Treatment Variation 12. Shining Star, A/The … 13. IS/IT: The “Dark Ages” Saga Continues 14. K.I.S.S./Keep It Simple, Stupid: Un-sexy “Stuff” Could Save Tens of Thousands of “Stuff” Could Save Tens of Thousands of Lives and Extend Hundreds of Thousands Lives and Extend Hundreds of Thousands of Others of Others 15. Wellness-Prevention: No Good Deed Goes Unpunished Unpunished 16. From “Healthcare” to “Health”: The “Oughtas” The “Oughtas” 17. Healthcare Meets Health: The Incredible Case of the Planetree Alliance Case of the Planetree Alliance Bonus: Tom’s Nobels

CEO, CMO/CHIEF MEDICAL OFFICER, CNO/CHIEF NURSING OFFICER, CFO, ETC. [traditional jobs] DEPUTY CEO/PATIENT SAFETY & QUALITY Director “Hands Clean” Mandate Director “Hands Clean” Mandate Director Error-free Medications Program Director Error-free Medications Program Director Simple-Tools-That-Save-Lives Programs Director Simple-Tools-That-Save-Lives Programs Director Over-treatment Evaluation & Management Director Over-treatment Evaluation & Management CHIEF CLINICAL EVALUATIONS OFFICER Director Evidence-based Medicine Initiatives Director Evidence-based Medicine Initiatives Director Best-practices Program Director Best-practices Program Director Error Reporting & Evaluation Initiative Director Error Reporting & Evaluation Initiative CISO/CHIEF INFORMATION SYSTEMS OFFICER Director Electronic Medical Records Director Electronic Medical Records Director Cross-functional IS Engagement & Implementation Director Cross-functional IS Engagement & Implementation Teams Teams DEPUTY CEO/HEALTH & HEALING & COMMUNITY OUTREACH Director Wellness & Prevention Programs Director Wellness & Prevention Programs Director Follow-up Patient Behaviors Program Director Follow-up Patient Behaviors Program Director Public Health Initiatives Director Public Health Initiatives Director Wellness Programs Director Wellness Programs Director Kids’ Education Programs Director Kids’ Education Programs CPCCO/CHIEF PATIENT-CENTRIC CARE OFFICER Director Patient Experience Programs Director Patient Experience Programs Director Planetree Practices Programs Director Planetree Practices Programs Director Patient “Home Port” & Self- & Family- Director Patient “Home Port” & Self- & Family- Management Programs Management Programs DEPUTY CEO/PEOPLE Director Teams-based Organization Director Teams-based Organization CCCO/CHIEF CHRONIC-CARE OFFICER DEPUTY CEO CROSS-FUNCTIONAL COORDINATION OFFICER Director Patient-Treatment Teams Implementation Director Patient-Treatment Teams Implementation Director Cross-functional Communications Initiatives Director Cross-functional Communications Initiatives

“1-in-7 Chance of Medical Mishap: Health Ministry Report” Source: Headline, The Press, Christchurch, NZ, (odds of a screw-up during a hospital stay)

DVM/Lyme/ **Multiple diagnoses (>5) **Specialist self-certainty **Health deterioration failed to produce urgency- communication **Virtually no communications between specialists **Follow-up very spotty unless bugged incessantly **Lost major test results, mis-placed 3 or 4 occasions **Near fatal drug mistake (one nurse takes charge) **Effectively, disinterest in chronic-care **Lack of curiosity DVM/Lyme/ **Multiple diagnoses (>5) **Specialist self-certainty **Health deterioration failed to produce urgency- communication **Virtually no communications between specialists **Follow-up very spotty unless bugged incessantly **Lost major test results, mis-placed 3 or 4 occasions **Near fatal drug mistake (one nurse takes charge) **Effectively, disinterest in chronic-care **Lack of curiosity

45

“Bottom line” : , life expectancy grew 0.64 % per year; , 0.24% per year, half from airbags, gun locks, service employment … Source: Best Care Anywhere: Why VA Healthcare Is Better Than Yours/Phillip Longman

“ The more doctors and specialists around, the more tests and procedures performed. And the results of all these tests and procedures? Lots more medical bills, exposure to medical errors, and a loss of life expectancy. “It was this last conclusion that was truly shocking, but it became unavoidable when [Dartmouth’s Dr. Jack] Wennberg and others broadened their studies. They found it’s not just that renowned hospitals and their specialists tend to engage in massive overtreatment. They also tend to be poor at providing critical but routine care.” Source: Best Care Anywhere: Why VA Healthcare Is Better Than Yours/Phillip Longman

“If we sent 30 percent of the doctors in this country to Africa, we might raise the level of health on both continents.” —Dr Elliott Fisher, Center of Evaluative Clinical Sciences, Dartmouth Medical School(“Overdose,” Atlantic, Shannon Brownlee.) Center of Evaluative Clinical Sciences, Dartmouth Medical School (“Overdose,” Atlantic, Shannon Brownlee.)

CDC 1998: 98,000 killed and 2,000,000 injured from hospital-caused drug errors & infections

1,000,000 “serious medication errors per year” … “illegible handwriting, misplaced decimal points, and missed drug interactions and allergies.” Source: Wall Street Journal / Institute of Medicine

“Hospital infections kill an estimated 103,000 people in the United States a year, as many as AIDS, breast cancer and auto accidents combined. … Today, experts estimate that more than 60 percent of staph infections are M.R.S.A. [up from 2 percent in 1974]. Hospitals in Denmark, Finland and the Netherlands once faced similar rates, but brought them down to below 1 percent. How? Through the rigorous enforcement of rules on hand washing, the meticulous cleaning of equipment and hospital rooms, the use of gowns and disposable aprons to prevent doctors and nurses from spreading germs on clothing and the testing of incoming patients to identify and isolate those carrying the germ. … Many hospital administrators say they can’t afford to take the necessary precautions. ” —Betsy McCaughey, founder of the Committee to Reduce Infection Deaths (New York Times/ )

“Experts estimate that more than a hundred thousand Americans die each year not from illness but from their prescription drugs. Those deaths, occurring quietly, almost without notice in hospitals, emergency rooms, and homes, make medicines one of the leading causes of death in the United States. On a daily basis, prescription pills are estimated to kill more than 270 Americans. … Prescription medicines, taken according to doctors’ instructions, kill more Americans than either diabetes or Alzheimer’s disease.” Source: Our Daily Meds: How the Pharmaceutical Companies Transformed Themselves into Slick Marketing Machines and Hooked the Nation on Prescription Drugs —Melody Petersen

140,000,000 illegible prescriptions per year —John Hammergren & Phil Harkins, Skin in the Game: How Putting Yourself First Today Will Revolutionize Healthcare Tomorrow

**1,500,000,000,000 claims per year **30% errors **15% lost **25% paper-based Source: John Hammergren & Phil Harkins, Skin in the Game: How Putting Yourself First Today Will Revolutionize Healthcare Tomorrow

“stunning lack of scientific knowledge about which treatments and procedures actually work” Source: Best Care Anywhere: Why VA Healthcare Is Better Than Yours/Phillip Longman

“The results are deadly. In addition to the 98,000 killed by medical errors in hospitals and the 90,000 deaths caused by hospital infections, another 126,000 die from their doctor’s failure to observe evidence-based protocols for just four common conditions: hypertension, heart attack, pneumonia, and colorectal cancer.” [TP: total 314,000 ] Source: Best Care Anywhere: Why VA Healthcare Is Better Than Yours/Phillip Longman

“Plus God alone knows how many casualties in doctors’ offices, Tom” —Thom Mayer

Skin in the Game: How Putting Yourself First Today Will Revolutionize Healthcare Tomorrow —John Hammergren (CEO, McKesson) & Phil Harkins

2008: $2.2 trillion 2016: $4 trillion Source: John Hammergren & Phil Harkins, Skin in the Game: How Putting Yourself First Today Will Revolutionize Healthcare Tomorrow

“ … 25 to 30 percent of our $2.2 trillion goes to wasted care* in the form of preventable errors, incorrect diagnoses, redundant treatment, unnecessary infections, and extra time spent in the hospital. *and another 20% to paperwork Source: John Hammergren & Phil Harkins, Skin in the Game: How Putting Yourself First Today Will Revolutionize Healthcare Tomorrow

140,000,000 illegible prescriptions per year —John Hammergren & Phil Harkins, Skin in the Game: How Putting Yourself First Today Will Revolutionize Healthcare Tomorrow

**1,500,000,000,000 claims per year **30% errors **15% lost **25% paper-based Source: John Hammergren & Phil Harkins, Skin in the Game: How Putting Yourself First Today Will Revolutionize Healthcare Tomorrow

”I can receive a BlackBerry message from a colleague climbing a mountain, yet I still show up at a doctor’s office [and after a 45-minite wait] learn that my hospital test results have not arrived weeks after they should have.” —John Hammergren & Phil Harkins, Skin in the Game: How Putting Yourself First Today Will Revolutionize Healthcare Tomorrow

Up To 500,000 Lives: “The medical system has been unable to turn proven remedies into everyday care.* Half the people who need to be treated to prevent heart attacks are not treated and half who are treated are treated inadequately. Patients go home with the wrong drugs or the wrong doses or misimpressions about the importance of taking their medications.” *More: 55% chance of “receiving the best recommended care—which means getting scientifically appropriate, evidence-based medical treatment” —The New York Times, from John Hammergren & Phil Harkins, Skin in the Game:How Putting Yourself First Today Will Revolutionize Healthcare Tomorrow

“The private insurance industry has little incentive to see people live healthy lives beyond 65 when their customers automatically drop out of the employer-based system and enter the government-based system.” —John Hammergren & Phil Harkins, Skin in the Game: How Putting Yourself First Today Will Revolutionize Healthcare Tomorrow

“How will you know when the healthcare industry has finally entered the 21 st century? When error rates at hospitals are close to zero. When doctors and nurses use evidence-based protocols in your treatment. When you can decide how much to spend on treatment, and you have the information and the opportunity to determine the best value. When your primary care physician is in charge of your extended care team, operating as your command central. When all members of the medical community—nurses, doctors, pharmacists and specialists—work together seamlessly on your behalf. When their combined efforts are tracked, measured, and reported on—and the insurance reimbursements awarded to them are based on performance. When you see that hospitals, pharmacies and doctors are working harder in all aspects to make sure you are an informed consumer who has trust and confidence in the services they offer and the prices they charge.” —John Hammergren & Phil Harkins, Skin in the Game: How Putting Yourself First Today Will Revolutionize Healthcare Tomorrow

“ … 25 to 30 percent of our $2.2 trillion goes to wasted care in the form of preventable errors, incorrect diagnoses, redundant treatment, unnecessary infections, and extra time spent in the hospital. Team-based medicine, bar- code prescription scanning, evidence-based medicine—all of these are systems and innovations that are being put into place to eliminate waste so that we can re-apply the money.” —John Hammergren & Phil Harkins, Skin in the Game: How Putting Yourself First Today Will Revolutionize Healthcare Tomorrow

“We spend more time and effort buying a disposable good like a car than we do looking after an indispensable good—our health.” —John Hammergren & Phil Harkins, Skin in the Game: How Putting Yourself First Today Will Revolutionize Healthcare Tomorrow

#26.2.2

Excellence. Bank on it. (commerce bank.)

The Commerce Bank Model “Are you going to cost cut your way to prosperity? Or … are you going to spend your way to prosperity?” Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry, Vernon Hill & Bob Andelman

The Commerce Bank Model *deposit focused. *Customer value-added. *Great retail experience. *Best facilities. Best locations. *No stupid rules. *Driven by revenue growth, not cost reduction. Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry, Vernon Hill & Bob Andelman

The Commerce Bank Model “cost cutting is a death spiral.” Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry, Vernon Hill & Bob Andelman

“Our whole story is growing revenue.” —Vernon Hills (Top-line driven; standard is bottom-line driven by cost cutting)

The Commerce Bank Model “over-invest in our people, over-invest in our facilities.” Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry, Vernon Hill & Bob Andelman

The Commerce Bank Model “we want them in our stores.” Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry, Vernon Hill & Bob Andelman

Commerce Bank: From “Service” to “Experience” 7X. 730A- 800P. F12A.* *’93-’03/10 yr annual return: CB: 29%; WM: 17%; HD: 16%. Mkt Cap: 48% p.a.

The Commerce Bank Model “we don’t accept the 80/20 theory. We believe every customer has value, that you can’t tell which one is the high-value customer over time, and that that philosophy degrades the brand.” Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry, Vernon Hill & Bob Andelman

The Commerce Bank Model “every computer at commerce bank has a special red key on it that says, ‘found something stupid that we are doing that interferes with our ability to service the customer? Tell us about it, and if we agree, we will give you $50.’” Source: Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Industry, Vernon Hill & Bob Andelman

YESBANK* *Commerce Bank

“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

#26.2.3

WallopWal*Mart16* ABSURDLY EASY BEAT GIANT WallopWal*Mart16* *Or: Why it’s so ABSURDLY EASY to BEAT a GIANT Company

The “Small Guys” Guide: Wallop Wal*Mart16 * Niche-aimed. (Never, ever “all things for all people,” a “mini- Wal*Mart.) * Never attack the monsters head on! (Instead steal niche business and lukewarm customers.) *“Dramatically Different” (La Difference... within our community, our industry regionally, etc … is as obvious as the end of one’s nose!) (THIS IS WHERE MOST MIDGETS COME UP SHORT.) * Compete on value/experience/intimacy, not price. (You ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.) * Emotional bond with Clients, Vendors. (BEAT THE BIGGIES ON EMOTION/CONNECTION!!)

The thing that all these companies have in common is that they have nothing in common. “This is an essay about what it takes to create and sell something remarkable. It is a plea for originality, passion, guts and daring. You can’t be remarkable by following someone else who’s remarkable. One way to figure out a theory is to look at what’s working in the real world and determine what the successes have in common. But what could the Four Seasons and Motel 6 possibly have in common? Or Neiman- Marcus and Wal*Mart? Or Nokia (bringing out new hardware every 30 days or so) and Nintendo (marketing the same Game Boy 14 years in a row)? It’s like trying to drive looking in the rearview mirror. The thing that all these companies have in common is that they have nothing in common. They are outliers. They’re on the fringes. Superfast or superslow. Very exclusive or very cheap. Extremely big or extremely small. The reason it’s so hard to follow the leader is this: The leader is the leader precisely because he did something remarkable. And that remarkable thing is now taken—so it’s no longer remarkable when you decide to do it.” —Seth Godin, Fast Company

The “Small Guys” Guide: Wallop Wal*Mart16 * Hands-on, emotional leadership. (“We are a great & cool & intimate & joyful & dramatically different team working to transform our Clients lives via Consistently Incredible Experiences!”) * A community star! (“Sell” local-ness per se. Sell the hell out of it!) * An incredible experience, from the first to last moment—and then in the follow-up! (“These guys are cool! They ‘get’ me! They love me!”) * DESIGN DRIVEN! (“Design” is a premier weapon-in- pursuit-of-the sublime for small-ish enterprises, including the professional services.)

The “Small Guys” Guide: Wallop Wal*Mart16 * Employer of choice. (A very cool, well-paid place to work/learning and growth experience in at least the short term … marked by notably progressive policies.) (THIS IS EMINENTLY DO-ABLE!!) * Sophisticated use of information technology. (Small-“ish” is no excuse for “small aims”/execution in IS/IT!) * Web-power! (The Web can make very small very big … if the product-service is super-cool and one purposefully masters buzz/viral marketing.) * Innovative! (Must keep renewing and expanding and revising and re-imagining “the promise” to employees, the customer, the community.)

The “Small Guys” Guide: Wallop Wal*Mart16 * Brand-Lovemark* (*Kevin Roberts) Maniacs ! (“Branding” is not just for big folks with big budgets. And modest size is actually a Big Advantage in becoming a local-regional- niche “lovemark.”) * Focus on women-as-clients. (Most don’t. How stupid.) * Excellence! (A small player … per me … has no right or reason to exist unless they are in Relentless Pursuit of Excellence. One earns the right—one damn day and client experience at a time!—to beat the Big Guys in your chosen niche!)

The Small*Mart Revolution: How Local Businesses Are Beating Local Competition The Small*Mart Revolution: How Local Businesses Are Beating Local Competition —Michael Shuman

#26.2.3

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

“Perfection is achieved only by institutions on the point of collapse.” — C. Northcote Parkinson

3M’s Innovation Crisis: How Six Sigma Almost Smothered Its Idea Culture Source: Title/Cover Story, BW, ( “What’s remarkable is how fast a culture can be torn apart,” 3M lead scientist; “In an innovation economy, [6 Sigma] is no longer a cure all”/BW)

“What Rikyu demanded was not cleanliness alone, but the beautiful and the natural also.” —Kakuzo Okakura, The Book of Tea

“Rikyu was watching his son Sho-an as he swept and watered the garden path. ‘Not clean enough,’ said Rikyu, when Sho-an had finished his task, and bade him try again. After a weary hour, the son turned to Rikyu: ‘Father, there is nothing more to be done. The steps have been washed for the third time, the stone planters and the trees are well sprinkled with water, moss and lichens are shining with a fresh verdure; not a twig, not a leaf have I left on the ground.’ ‘Young fool,’ chided the tea-master, ‘that is not the way a garden path should be swept.’ Saying this, Rikyu stepped into the garden, shook a tree and scattered over the garden gold and crimson leaves, scraps of the brocade of autumn! What Rikyu demanded was not cleanliness alone, but the beautiful and the natural also.” —Kakuzo Okakura, The Book of Tea

Masters of “TGR” Cont. Granite Rock Co. (Cross it out if you think we did it poorly) Elgin Corrugated Box (days before-after promised delivery)

Up, Up, Up, Up Up, Up, Up, Up the Value-added Ladder.

#26.3

EXCELLENCE. SOUL I. DESIGN.

“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

The Value-added Ladder/ MEMORABLE CONNECTION Spellbinding Experiences via “Soul” Through Design* * Customer Success/ Implemented Gamechanging Solutions Services Goods Raw Materials *Blending Beauty, Usability, Theatricality (Degree: MFA/ Master of Fine Arts, “D-school,” Cultural Anthropology)

“Business people don’t need to ‘understand designers better.’ Businesspeople need to be designers.” —Roger Martin/Dean/Rotman Management School/ University of Toronto

Message (?????): Men cannot design for women’s needs.

“Perhaps the macho look can be interesting … if you want to fight dinosaurs. But now to survive you need intelligence, not power and aggression. Modern intelligence means intuition—it’s female. ” Source: Philippe Starck, Harvard Design Magazine

#26.3.1

EXCELLENCE. SYSTEMS. DESIGN. K.I.S.S.

Lisbon/New Biz: Weeks to … Minutes (!!!!) Lisbon/New Biz: Weeks to … Minutes (!!!!)

450/8

Great design = One-page business plan (Jim Horan)

First Steps: “Beauty Contest”! 1. Select one form/document: invoice, airbill, sick leave policy, customer returns claim form. 2.Rate the selected doc on a scale of 1 to 10 [1 = Bureaucratica Obscuranta/Sucks; 10 = Work of Art] on four dimensions: Beauty. Grace. Clarity. Simplicity. Clarity. Simplicity. 3. Re-invent! 4.Repeat, with a new selection, every 15 working days. every 15 working days.

BeautyGrace Clarity ClaritySimplicity

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

“Seek honest, minimalist management. Look for companies run by a team that explains things clearly and briefly. … You can tell a lot about the firm by reading an annual report or two. If management can’t explain the business in plain English, move on to another firm. If you see phrases like ‘creating knowledge-based value in emerging markets’ … someone is trying to pull the wool over your eyes, you lazy Fool. Run.” “Seek honest, minimalist management. Look for companies run by a team that explains things clearly and briefly. … You can tell a lot about the firm by reading an annual report or two. If management can’t explain the business in plain English, move on to another firm. If you see phrases like ‘creating knowledge-based value in emerging markets’ … someone is trying to pull the wool over your eyes, you lazy Fool. Run.” —Seth Jayson, “Stocks for the Lazy Investor,” The Motley Fool

The Value-added Ladder/ MEMORABLE CONNECTION COURTESY THE “ENTIRE SUPPLY CHAIN” Work as Art* Customer Success/ Implemented Gamechanging Solutions Services Goods Raw Materials *Artists and Process Engineers working in tandem

#26.4

EXCELLENCE. VALUE-ADDED LADDER III. DREAM IT.

We sell dreams Furniture vs. Dreams “We do not sell ‘furniture’ at Domain. We sell dreams. This is accomplished by addressing the half-formed needs in our customers’ heads. By uncovering these needs, we, in essence, fill in the blanks. We convert ‘needs’ into ‘dreams.’ Sales are the inevitable result.” — Judy George, Domain Home Fashions

“No longer are we only an insurance provider. Today, we also offer our customers the products and services that help them achieve their dreams —whether it’s financial security, buying a car, paying for home repairs, or even taking a dream vacation.” — Martin Feinstein, CEO, Farmers Group

Dreamketing: Touching the clients’ dreams. Dreamketing: The art of telling stories and entertaining. Dreamketing: Promote the dream, not the product. Dreamketing: Build the brand around the main dream. Dreamketing: Build the “buzz,” the “hype,” the “cult.” The Marketing of Dreams (Dreamketing) Dreamketing: Touching the clients’ dreams. Dreamketing: The art of telling stories and entertaining. Dreamketing: Promote the dream, not the product. Dreamketing: Build the brand around the main dream. Dreamketing: Build the “buzz,” the “hype,” the “cult.” Source: Gian Luigi Longinotti-Buitoni

Up, Up, Up, Up Up, Up, Up, Up the Value-added Ladder.

EMOTION Dreams Come True* *Psychologists (Degree: Psychology) The Value-added Ladder/ EMOTION Dreams Come True* Design-driven Spellbinding Experiences Customer Success/Implemented Gamechanging Solutions Services Goods Raw Materials *Psychologists (Degree: Psychology)

C DM C DM* *Chief Dream Merchant

1. Adventures for Sale 2. The Market for Togetherness, Friendship and Love 3. The Market for Care 4. The Who-Am-I Market 5. The Market for Peace of Mind 6. The Market for Convictions Six Market Profiles 1. Adventures for Sale 2. The Market for Togetherness, Friendship and Love 3. The Market for Care 4. The Who-Am-I Market 5. The Market for Peace of Mind 6. The Market for Convictions Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business

IBM-UPS IBM-UPS IBM-UPS IBM-UPS IBM-UPS IBM-UPS Six Market Profiles 1. Adventures for Sale/ IBM-UPS 2. The Market for Togetherness, Friendship and Love/ IBM-UPS 3. The Market for Care/ IBM-UPS 4. The Who-Am-I Market/ IBM-UPS 5. The Market for Peace of Mind/ IBM-UPS 6. The Market for Convictions/ IBM-UPS Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business

We stand facing the fifth kind of society: the Dream Society. “The sun is setting on the Information Society—even before we have fully adjusted to its demands as individuals and as companies. We have lived as hunters and as farmers, we have worked in factories and now we live in an information-based society whose icon is the computer. We stand facing the fifth kind of society: the Dream Society. … Future products will have to appeal to our hearts, not to our heads. Now is the time to add emotional value to products and services.” Rolf Jensen/The Dream Society:How the Coming Shift from Information to Imagination Will Transform Your Business

#26.4.1

EXCELLENCE. SOUL II. THE STORY.

“Storytelling is the core of culture.” “Storytelling is the core of culture.” —Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell

Market Power = Story Power

Best story wins!

C ST O C ST O* *Chief Storytelling Officer

Companies will thrive on the basis of their stories and myths. “We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion. Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions to how we work with others. Companies will thrive on the basis of their stories and myths. Companies will need to understand that their products are less important than their stories.” —Rolf Jensen, Copenhagen Institute for Future Studies

EMOTION Dreams Come True/Best Story Wins* *Anthropology (Degree: Anthropology) The Value-added Ladder/ EMOTION Dreams Come True/Best Story Wins* Design-driven Spellbinding Experiences Customer Success/Implemented Gamechanging Solutions Services Goods Raw Materials *Anthropology (Degree: Anthropology)

#26.5

EXCELLENCE. VALUE-ADDED LADDER III. ALL YOU NEED IS LOVE.

“Brands have run out of juice. They’re dead.” “Brands have run out of juice. They’re dead.” —Kevin Roberts/Saatchi & Saatchi

“Brands Are Out of Juice” 1. Brands are worn out from overuse. 2. Brands are no longer mysterious. 3. Brands can’t understand the new consumer. 4. Brands struggle with good old-fashioned competition. 5. Brands have been captured by formula. 6. Brands have been smothered by creeping conservatism. Source: Lovemarks: The Future Beyond Brands, Kevin Roberts

Lovemarks ! Kevin Roberts: Lovemarks !

“When I first suggested that Love was the way to transform business, grown CEOs blushed and slid down behind annual accounts. But I kept at them. I knew it was Love that was missing. I knew that Love was the only way to ante up the emotional temperature and create the new kinds of relationships brands needed. I knew that Love was the only way business could respond to the rapid shift in control to consumers.” —Kevin Roberts/Lovemarks

Wrapped in Mystery Brand …………………………………………………. Lovemark Recognized by consumers ………………. Loved by People Generic ………………………………………………… Personal Presents a narrative ………………….. Creates a Love story The promise of quality ……………… A touch of Sensuality Symbolic ………………………………………………….. Iconic Defined ………………………………………………….. Infused Statement ………………………………………………….. Story Defined attributes ……………………... Wrapped in Mystery Values ………………………………………………………. Spirit Professional …………………………... Passionately Creative Advertising agency ………………………….. Ideas company Source: Kevin Roberts, Lovemarks

Mystery “ When we were working through the essentials of a Lovemark, Mystery was always at the top of the list.” —Lovemarks: The Future Beyond Brands, Kevin Roberts

Tattoo Brand Tattoo Brand : What % of users would tattoo the brand name on their body?

Harley.… 18.9% Disney Coke …. 7.7 Google Pepsi Rolex …. 5.6 Nike …. 4.6 Adidas …. 3.1 Absolut …. 2.6 Nintendo …. 1.5 Top 10 “Tattoo Brands”* Harley.… 18.9% Disney Coke …. 7.7 Google Pepsi Rolex …. 5.6 Nike …. 4.6 Adidas …. 3.1 Absolut …. 2.6 Nintendo …. 1.5 * BRANDsense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound, Martin Lindstrom

Bunge … ?? Top 10 “Tattoo Brands”* Harley.… 18.9% Disney Coke …. 7.7 Google Pepsi Rolex …. 5.6 Bunge … ?? Nike …. 4.6 Adidas …. 3.1 Absolut …. 2.6 Nintendo …. 1.5 *BRANDsense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound, Martin Lindstrom

Up, Up, Up, Up Up, Up, Up, Up the Value-added Ladder.

The Value-added Ladder/ ECSTASY Lovemark* Dreams Come True/ Best Story Wins Spellbinding Experiences/ “Soul” Through Design Customer Success/Implemented Gamechanging Solutions Services Goods Raw Materials *Passion (Degree: ????)

C L O C L O* *Chief Lovemar k Officer

Up, Up, Up, Up Up, Up, Up, Up the Value-added Ladder.

#26.6

4/7 4/7

Ladder.2008: 4 of 7! Lovemark Dreams Come True Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials

New (4 of 7) Value-added “Ladder”: Plays to Women’s Inherent Strengths! Lovemark/ F Dreams Come True/ F Spellbinding Experiences/ F Gamechanging Solutions/ F Services/ F-M Goods/ M Raw Materials/ M

Note #1: Men: Reductionist/ Things Women: Holistic/ Relationships

Note #2: The composition of work groups engaged in the “4 of 7” “new steps” on the Ladder must “look like” the global market we serve!

#26.7

EXCELLENCE. DOES MATTER MATTER?

“What Isn’t Matter Is What Matters” “What Isn’t Matter Is What Matters” —section title, Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell

4/96 4/1.30

The Boot … and Timberland The Tomato/ Farmer … and Campbell’s

“Andy pointed to a molding, about halfway up the wall …” VA “Teaching Moment” “Andy pointed to a molding, about halfway up the wall …”

Ladder.2008: 4 of 7! Lovemark Dreams Come True Spellbinding Experiences Gamechanging Solutions Ladder.2008: 4 of 7! Lovemark Dreams Come True Spellbinding Experiences Gamechanging Solutions Services Goods Raw Materials

#26.7.1

EXCELLENCE. NEW VALUE EQUATION. NEW “C-levels”.

C.E.O. C.D.O. C.E.O. to C.D.O.

C R O Revenue C R O* *Chief Revenue Officer

C X O e X perience C X O* *Chief e X perience Officer

C DM Dream C DM* *Chief Dream Merchant

C F O* C F O* *Chief Festivals Officer

C PI * C PI * *Chief Portal Impresario

C W w M* *Chief WikiWorld Maniac

C C O* C C O* *Chief Conversations Officer

C L O Lovemark C L O* *Chief Lovemark Officer

C S O* C S O* *Chief Seduction Officer

C ST O Storytelling C ST O* *Chief Storytelling Officer

C D O Design C D O * *Chief Design Officer

C ta O talent acquisition C ta O* *Chief talent acquisition Officer

C FA O *Chief freaks acquisition Officer C FA O * *Chief freaks acquisition Officer

C Q O quest-meister C Q O* *Chief quest-meister

C T O Thrills C T O* *Chief Thrills Officer

C W O *Chief WOW Officer C W O* *Chief WOW Officer

C D o DESTRUCTION C D o * Chief DESTRUCTION Officer

C TR o Transcendence C TR o* *Chief Transcendence Officer

C ! O C ! O* *Chief ! Officer

#27

EXCELLENCE. BEDROCK. LEADERSHIP. THE 9Ps. THE 1M.

“The West spent … $2.3 trillion on foreign aid over the last five decades and still has not managed to get twelve-cent medicines to children to prevent half of all malaria deaths. The West spent $2.3 trillion and still not managed to get three dollars to each new mother to prevent five million child deaths. … But I and many other like-minded people keep trying, not to abandon aid to the poor, but to make sure it reaches them.” on foreign aid over the last five decades and still has not managed to get twelve-cent medicines to children to prevent half of all malaria deaths. The West spent $2.3 trillion and still not managed to get three dollars to each new mother to prevent five million child deaths. … But I and many other like-minded people keep trying, not to abandon aid to the poor, but to make sure it reaches them.” L(+21) = L(-21)

“The West spent … $2.3 trillion on foreign aid over the last five decades and still has not managed to get twelve-cent medicines to children to prevent half of all malaria deaths. The West spent $2.3 trillion and still not managed to get three dollars to each new mother to prevent five million child deaths. … But I and many other like-minded people keep trying, not to abandon aid to the poor, but to make sure it reaches them.” on foreign aid over the last five decades and still has not managed to get twelve-cent medicines to children to prevent half of all malaria deaths. The West spent $2.3 trillion and still not managed to get three dollars to each new mother to prevent five million child deaths. … But I and many other like-minded people keep trying, not to abandon aid to the poor, but to make sure it reaches them.” Leadership(21A.D.) = Leadership(21B.C.)

THE 9P s.

PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PEOPLE. Potent. Positive.

“People want to be part of something larger than themselves. They want to be part of something they’re really proud of, that they’ll fight for, sacrifice for, trust.” “People want to be part of something larger than themselves. They want to be part of something they’re really proud of, that they’ll fight for, sacrifice for, trust.” — Howard Schultz, Starbucks (IBD/09.05)

“I never, ever thought of myself as a businessman. I was interested in creating things I would be proud of.” —Richard Branson

PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PEOPLE. Potent. Positive.

“I am a … Dispenser of Enthusiasm!” —Ben Zander

PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PEOPLE. Potent. Positive.

“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

PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PEOPLE. Potent. Positive.

MBWA

“ 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

PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PEOPLE. Potent. Positive.

Relentless: “One of my superstitions had always been when I started to go anywhere or to do anything, not to turn back, or stop, until the thing intended was accomplished.” Relentless: “One of my superstitions had always been when I started to go anywhere or to do anything, not to turn back, or stop, until the thing intended was accomplished.” —Grant

PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PEOPLE. Potent. Positive.

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

PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PEOPLE. Potent. Positive.

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!

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

“Ever notice that ‘what the hell’ is always the right decision?” Source: unknown Hollywood script writer (courtesy The Borealis Press)

PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PEOPLE. Potent. Positive.

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

PURPOSE. PASSION. Potential. Presence. Personal. PERSISTENCE. PEOPLE. Potent. Positive.

The 1m

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

#28

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

Excellence Is a Universal Striving. If Not Excellence, What?

#29

Ger- on-i- mo !

GERONIMO!’ "Life is not a journey to the grave with the intention of arriving safely in one pretty and well preserved piece, but to skid across the line broadside, thoroughly used up, worn out, leaking oil, shouting ‘GERONIMO!’ ” —Bill McKenna, professional motorcycle racer (Cycle magazine )

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