Conrad Hilton …

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

“ remember to tuck the shower curtain inside the bathtub”

“ Execution is strategy. ” —Fred Malek

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

LONG Tom Peters’ Excellence.Always. Dhahran/4 November 2009 (Slides at tompeters.com)

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

#1

“Excellence … can be obtained if you: 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)

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

#2

14,000 20,000

14,000 20,000 30

14,000/ e Bay 20,000/Amazon 30/Craigslist* *Lockheed “Skunk Works,” 125 vs. 5,000(??)

#3

“Insanely Great” Steve Jobs

“Radically thrilling” “Radically thrilling” BMW

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

#4

1977

MBWA

25

1982

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

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

Hard Is Soft Soft Is Hard

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

“ If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of people is very, very hard. [Yet] I came to see in my time at IBM that culture isn’t just one aspect of the game —it is the game.” —Lou Gerstner, Who Says Elephants Can’t Dance Who Says Elephants Can’t Dance

30 -fold!

Ken Kizer/VA 1997: “culture of cover-up that pervades healthcare” “Patient Safety Event Registry” … “looking for systemic solutions, not seeking to fix blame on individuals except in the most egregious cases. The good news was a thirty-fold increase in the number of medical mistakes and adverse events that got reported.” “National Center for Patient Safety Ann Arbor” “National Center for Patient Safety Ann Arbor”

ExIn*: /Forbes.com DJIA: $10,000 yields $85,000 EI: $10,000 yields $140,050 *Excellence Index/Basket of 32 publicly traded stocks

2007 Siberia

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

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

2007 Sydney

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

… no less than Cathedrals in which the full and awesome power of the Imagination and Spirit and native Entrepreneurial flair of diverse individuals is unleashed in passionate pursuit of … Excellence.

“The role of the Director is to create a space where the actors and actresses can become more than they’ve ever been before, more than they’ve dreamed of being.” —Robert Altman, Oscar acceptance speech

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

Thank you Peter Drucker/AIM Our goal is to serve our customers brilliantly and profitably over the long haul. Serving our customers brilliantly and profitably over the long haul is a product of brilliantly serving, over the long haul, the people who serve the customer. Hence, our job as leaders—the alpha and the omega and everything in between—is abetting the sustained growth and success and engagement and enthusiasm and commitment to Excellence of those, one at a time, who directly or indirectly serve the ultimate customer. Source: The Little BIG Things: 163 Ways to Pursue EXCELLENCE

We—leaders of every stripe—are in the “Human Growth and Development and Success and Aspiration to Excellence business.” “We” [leaders] only grow when “they” [each and every one of our colleagues] are growing. “We” [leaders] only succeed when “they” [each and every one of our colleagues] are succeeding. “We” [leaders] only energetically march toward Excellence when “they” [each and every one of our colleagues] are energetically marching toward Excellence. march toward Excellence when “they” [each and every one of our colleagues] are energetically marching toward Excellence.Period. Source: The Little BIG Things: 163 Ways to Pursue EXCELLENCE

#5

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

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

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

#6

Brand = Talent.

To develop and manage talent; to apply that talent, throughout the world, for the benefit of clients; to do so in partnership; to do so with profit. Our Mission To develop and manage talent; to apply that talent, throughout the world, for the benefit of clients; to do so in partnership; to do so with profit. WPP

Luiza Helena, Magazine Luiza

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

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

#7

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

People! People!

#8

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

2/year = legacy.

#9

#1. Strategic. Priority. Period.

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

“ Development can help great people be even better— but if I had a dollar to spend, I’d spend 70 cents getting the right person in the door.” — Paul Russell, Director, Leadership & Development, Google

#10

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

#11

#1 cause of Dis-satisfaction?

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

#12

1. Hire 2. 1 st Line Supervisor 3. Promotion 1. Hire 2. 1 st Line Supervisor 3. Promotion

#13

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

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

bonus

Institute of Public Administration, last question … Centralization vs Decentralization = (Business, government, child-rearing) Jefferson vs Hamilton (D.C. vs “states rights”) Nelson, Grant: simple-clear-brief orders, then lots of leeway Ike (and CEO Koppers): plan like hell and burn the plan (literally) Ceaselessly talk through the values, then enormous space within Bossidy: 2-page strategy (pre-Welch, strategy doc was budget doc) Katrina: USCG (“history of trusting their captains”) vs US Navy Rommel on Americans in North Africa No autonomy, no resilience (Yunus: “We’re all entrepreneurs”) CIO; across the hall anti-CIO (Mr Build, Mr Destroy) Drucker: “Ninety percent …” ICD/Inherent Centralist Drift Gary Hamel and “sell by” “Anthropological analysis,” McKinsey Degree of staff diversification is also Cent. vs De-cent issue (homogeneity grows over time) Jim Burke: “No.” (Watson: “never do a System 360 today”) Norberto Odebrecht and 2 nd Law Thermodynamics (Foster’s data) Sloan: Dynamic approach, never get it right TP: dynamic approach, never get it right, lean “big time” toward decentralization, open warfare on “necessary” systems Institute of Public Administration, last question … Centralization vs Decentralization = EVERYTHING (Business, government, child-rearing) Jefferson vs Hamilton (D.C. vs “states rights”) Nelson, Grant: simple-clear-brief orders, then lots of leeway Ike (and CEO Koppers): plan like hell and burn the plan (literally) Ceaselessly talk through the values, then enormous space within Bossidy: 2-page strategy (pre-Welch, strategy doc was budget doc) Katrina: USCG (“history of trusting their captains”) vs US Navy Rommel on Americans in North Africa No autonomy, no resilience (Yunus: “We’re all entrepreneurs”) CIO; across the hall anti-CIO (Mr Build, Mr Destroy) Drucker: “Ninety percent …” ICD/Inherent Centralist Drift Gary Hamel and “sell by” “Anthropological analysis,” McKinsey Degree of staff diversification is also Cent. vs De-cent issue (homogeneity grows over time) Jim Burke: “No.” (Watson: “never do a System 360 today”) Norberto Odebrecht and 2 nd Law Thermodynamics (Foster’s data) Sloan: Dynamic approach, never get it right TP: dynamic approach, never get it right, lean “big time” toward decentralization, open warfare on “necessary” systems

#14

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

18 seconds

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

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

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

Listen = Profession = Study = practice = evaluation = "We listen intently to and fully engage Listen = Profession = Study = practice = evaluation = Enterprise value: "We listen intently to and fully engage all with whom we work." all with whom we work."

#15

“if you don’t listen, you don’t sell anything.” —Carolyn Marland

Sales > Marketing

“ Everybody lives by selling something. ” “ Everybody lives by selling something. ” — Robert Louis Stevenson

#16

“The four most important words in any organization are …

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

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

The “one line of code!” Axiom

#17

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

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

“It was much later that I realized Dad’s secret. He gained respect by giving it. He talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a bishop or a college president. He was seriously interested in who you were and what you had to say.” —Sara Lawrence-Lightfoot, Respect

And the answer is …. otis

#18

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

THERE ONCE WAS A TIME WHEN A THREE-MINUTE PHONE CALL WOULD HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE. Relationships (of all varieties) : THERE ONCE WAS A TIME WHEN A THREE-MINUTE PHONE CALL WOULD HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE.

#19

none!

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

“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

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

#20

problem #1. Opportunity #1.

X =XFX* * Excellence = Cross-functional Excellence

The “XF-50”: 50 Ways to Enhance Cross-Functional Effectiveness and Deliver Speed, “Service Excellence” and “Value-added Customer ‘Solutions’”

Never waste a lunch! Never waste a lunch!

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

Lunch > SAP/ > SAP/Oracle

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

#21

“Mapping your competitive position” or …

The “Have you …” 50

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

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

#22

Little = BIG

Big carts = 1.5X 1.5X Source: Wal*Mart

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

Socks = 10,000

#23

TGR [Things Gone WRONG -Things Gone RIGHT ] TGR [Things Gone WRONG -Things Gone RIGHT ]

2-cent candy

“May I clean your glasses, sir?”

“ 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

“Perception is all there is” there is”

#24

Design is the only thing that differentiates one product from another in the marketplace.” 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

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

Design is the fundamental soul of a man-made creation.” “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

Hypothesis: DESIGN is the principal difference between love and hate!

#25

450/8

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

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

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

Beauty.Grace. Clarity. Clarity.Simplicity.

* CGRO* *CGRO/Chief Grunge Removal Officer (CDC/Chief of De-complexification) (CAO/Chief Anti-systems Officer) (CBSD/Chief BS Destruction Officer)

#26

“Not only does standardization reduce accountability, but it causes workers to switch to autopilot.” “An artistic process has to rely on external measures of success, like customer feedback.” Source: “When Should a Process Be Art, Not Science?” by Joseph Hall and Eric Johnson, HBR (03.09)

#27

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

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

Huge: Satisfaction Success Huge: Customer Satisfaction versus Customer Success

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

#28

1/40

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

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

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

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

#29

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

#30

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

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

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

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

We learn from our failures. Period.* Failure to acknowledge failure is a fatal disease. Treating failure like a disease is a fatal disease. *Doctors, soldiers, pilots, musicians, etc.

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

#31

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

#32

“ 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.” “ 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)

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

Demos! Heroes! Stories!

#33

We are the company we keep we keep

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

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

The “We are what we eat” axiom: At its core, every (!!!) relationship-partnership decision (employee, vendor, customer, etc) is a strategic decision about: “Innovate, ‘Yes’ or ” The “We are what we eat” axiom: At its core, every (!!!) relationship-partnership decision (employee, vendor, customer, etc) is a strategic decision about: “Innovate, ‘Yes’ or ‘No’ ”

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

“Freak Fridays” —once a month invite somebody interesting, in any field, to have lunch with your gang

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

#34

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

#35

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

#36

“Normal” = “o for 800”

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

#37

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

#38

Innovation’s “Fourteen Imperatives” Innovation’s “Fourteen Imperatives” (1) Try it. Repeat. (“1/40.”) (“R.F.A.”/Ready.Fire. Aim.) (Non-Linear!) Prototype it./MTTP (Mean Time To Prototype.)/(Inno. = Prototype it./MTTP (Mean Time To Prototype.)/(Inno. = Reaction to Proto.) Reaction to Proto.) (2) Celebrate failure. “Whoever makes the most mistakes wins.” “Whoever makes the most mistakes wins.” “Fail. Fail again. Fail better.” “Fail. Fail again. Fail better.” “Reward excellent failures. Punish mediocre successes.” “Reward excellent failures. Punish mediocre successes.” Decentralize. (3) Decentralize. (4) Parallel Universe. (5) “Hang Out” Axiom. (Hang “cool” = More cool. Dull = Dull.) cool. Dull = Dull.) (6) “d”iversity. (Every dimension.) (7) Co-invent with outsiders./Entwined with outsiders. (Including “Crowdsourcing.”) outsiders. (Including “Crowdsourcing.”)

Innovation’s “Fourteen Imperatives” (8) “Strategic” Listening = Core competence. (9) Hire and promote 100% innovators. Innovator’s characteristic = Innovator. Innovator’s characteristic = Innovator. Innovator’s characteristic = Angry. (Anger > Blowback.) Innovator’s characteristic = Angry. (Anger > Blowback.) CEO=Innovation “bias.” CEO=Innovation “bias.” (10) XFX/Cross-functional Excellence!! (#1??) (11) Chief Complexity & Systems Destruction Officer. Officer. (12) R&D Equality. All functions equal. (VA centerpiece./All staff All functions equal. (VA centerpiece./All staff VA-meisters.) VA-meisters.) (13) Fun! Self-deprecating! (14) Good luck! (Entropy rules.) (Major acquisition = Dumb.) acquisition = Dumb.) (NB: All these things work except when they don’t.) (NB: All these things work except when they don’t.)

#39

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

#40

4/40

De-cent- ral-iz- a-tion!

volcanic struggle!

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

– Peter Drucker “Ninety percent of what we call ‘management’ consists of making it difficult for people to get things done.” – Peter Drucker

Ex-e- cu-tion!

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

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

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

(1) sum of Projects = Goal (“Vision”) (2) sum of Milestones = project (3) rapid Review + Truth-telling = accountability (1) sum of Projects = Goal (“Vision”) (2) sum of Milestones = project (3) rapid Review + Truth-telling = accountability

Ac-count- a-bil-ity!

Mission impossible? $36B/’98 minus $675M/‘07

“ Mr Zetsche, head of Chrysler from 2000 to 2005, denied he should take any responsibility for the U.S. carmaker’s troubles …” —Financial Times /

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

6:15A.M.

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

#41

I am often asked by would- be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The answer seems obvious … “ I am often asked by would- be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The answer seems obvious …

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

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

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

#42

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

Reason!!! Mittelstand

Productivity (Small/All) > Productivity (Big) (USA-9%/F500) (China/1 st 20 yrs.)

#43

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

#44

Jim Penman/ Jim’s Group

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

#45

#1 Truthteller …

You = Your calendar* *Calendars never lie

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

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

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

John Sawhill/Major Strategic Initiative: “What areas should the Conservancy focus on and more important— what activities should we stop doing?” Source: Bill Birchard, Nature’s Keepers: The Remarkable Story of How The Nature Conservancy Became the Largest Environmental Organization in the World

#46

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

To me business isn’t about wearing suits or pleasing stockholders. It’s about being true to yourself, your ideas and focusing on the essentials.” “To me business isn’t about wearing suits or pleasing stockholders. It’s about being true to yourself, your ideas and focusing on the essentials.” —Richard Branson

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