Excellence 2019 Tom Peters Auckland Business School/AIM Western Australia Auckland/Perth/February-March 2019 (This presentation/10+ years of presentation.

Excellence 2019 Tom Peters Auckland Business School/AIM Western Australia Auckland/Perth/February-March 2019 (This presentation/10+ years of presentation slides at tompeters.com; also see our annotated 23-part Monster-Master at excellencenow.com) 1 1

Dr. D.A. Henderson, who led the international effort to eradicate smallpox, was asked what he wanted to eradicate next. His answer … Source: Sabin Vaccine Institute

Dr. D.A. Henderson, who led the international effort to eradicate smallpox, was asked what he wanted to eradicate next. His answer: “Bad management.” Source: Sabin Vaccine Institute

GOOD MANAGEMENT: THE HUMAN ELEMENT
“BUSINESS HAS TO GIVE PEOPLE ENRICHING, REWARDING LIVES … OR IT’S SIMPLY NOT WORTH DOING.” —Richard Branson (#1/4,096) “THE ROLE OF THE DIRECTOR IS TO CREATE A SPACE WHERE THE ACTORS AND ACTRESSES CAN BECOME MORE THAN THEY HAVE EVER BEEN BEFORE, MORE THAN THEY HAVE EVER DREAMED OF BEING.” —Robert Altman, Oscar acceptance speech “[BUSINESS HAS THE] RESPONSIBILITY TO INCREASE THE SUM OF HUMAN WELL-BEING.” —Mihaly Csikszentmihalyi, Good Business

CHAPTER TITLES: ENOUGH. “Too Much Cost, Not Enough Value”
“Too Much Speculation, Not Enough Investment” “Too Much Complexity, Not Enough Simplicity” “Too Much Counting, Not Enough Trust” “Too Much Business Conduct, Not Enough Professional Conduct” “Too Much Salesmanship, Not Enough Stewardship” “Too Much Focus on Things, Not Enough Focus on Commitment” “Too Many Twenty-first Century Values, Not Enough Eighteenth-Century Values” “Too Much ‘Success,’ Not Enough Character” Source: Enough, by Jack Bogle, founder, Vanguard Funds

EXCELLENCE 2019 THRIVING AMIDST THE TECH TSUNAMI/ EXTREME EMPLOYEE ENGAGEMENT/ EXTREME HUMANIZATION Tom Peters Auckland Business School/AIM Western Australia Auckland/Perth/February-March (This presentation/10+ years of presentation slides at tompeters.com; also see our annotated 23-part Monster-Master at excellencenow.com)

CONRAD HILTON, at a gala celebrating his career, was called to the podium and asked, “What were the most important lessons you learned in your long and distinguished career?” His answer … 7 7 7

“Remember to tuck the shower curtain inside the bathtub.”
8 8

You get ’em in the door with “location, location, location”—and gorgeous appointments. You keep ’em coming back* with the tucked in shower curtain.** *Profit rarely/never comes from transaction #1; it is a byproduct of transaction #2, #3, #4 … **And tucked in shower curtains come via a respected/engaged housekeeping team

E-X-E-C-U-T-I-O-N: THE ALL-IMPORTANT “LAST 95%”
10 10

“In real life, strategy is actually very straightforward
“In real life, strategy is actually very straightforward. Pick a general direction … and implement like hell.” —Jack Welch 11

“Amateurs talk about strategy. Professionals talk about logistics.”
—General Omar Bradley, commander of American troops/D-Day

“When assessing candidates, the first thing I looked for was energy and enthusiasm for execution. Does she talk about the thrill of getting things done, the obstacles overcome, the role her people played —or does she keep wandering back to strategy or philosophy?” —Larry Bossidy, Execution 13

FIRST THINGS BEFORE FIRST THINGS
14 14

FIRST THINGS BEFORE FIRST THINGS I 37 YEARS/6 WORDS “HARD IS SOFT
FIRST THINGS BEFORE FIRST THINGS I YEARS/6 WORDS “HARD IS SOFT. SOFT IS HARD.” 15 15

Hard (numbers/plans) is Soft. Soft (relationships/culture) is Hard.
37 Years/6 Words Hard (numbers/plans) is Soft. Soft (relationships/culture) is Hard. 16

GOOGLE GETS A (SOFT) SURPRISE I “Project Oxygen (data from founding in 1998 to 2013] shocked everyone by concluding that, among the eight most important qualities of Google’s top employees, STEM (Science, Technology, Engineering, and Mathematics) expertise comes in dead last. The seven top characteristics of success at Google are all SOFT SKILLS: being a good coach; communicating and listening well; possessing insights into others (including others’ different values and points of view); having empathy toward and being supportive of one’s colleagues; being a good critical thinker and problem solver; and being able to make connections across complex ideas. Those traits sound more like what one gains as an English or theater major than as a programmer. …” Source: Valerie Strauss, “The surprising thing Google learned about its employees—and what it means for today’s students” (Washington Post, 20 December 2017)

GOOGLE GETS (SOFT) A SURPRISE II “Project Aristotle [2017] further supports the importance of soft skills even in high-tech environments. Project Aristotle analyzes data on inventive and productive teams. Google takes pride in it’s A-teams, assembled with top scientists, each with the most specialized knowledge and able to throw down one cutting-edge idea after another. Its data analysis revealed, however, that the company’s most important and productive ideas come from B-teams comprised of employees that don’t always have to be the smartest people in the room. Project Aristotle shows that that the best teams at Google exhibit a range of soft skills: equality, generosity, curiosity toward the ideas of your teammates, empathy and emotional intelligence. And topping the list: emotional safety. No bullying. …” Source: Valerie Strauss, “The surprising thing Google learned about its employees —and what it means for today’s students” (Washington Post, 20 December 2017)

The “Hard-Edge-First” Logic
“Far too many companies invest too little time and money in their soft-edge excellence. … The three main reasons for this mistake are: 1. The hard edge is easier to quantify. 2. Successful hard-edge investment provides a faster return on investment 3. CEOs, CFOs, chief operating officers, boards of directors, and shareholders speak the language of finance.” Source: The Soft Edge: Where Great Companies Find Lasting Success , Rich Karlgaard

“1. Soft-edge strengths lead to greater
Soft-Edge Advantages “1. Soft-edge strengths lead to greater brand recognition, higher profit margins, … [It] is the ticket out of Commodityville. 2. Companies strong in the soft edge are better prepared to survive a big strategic mistake or cataclysmic disruption … 3. Hard-edge strength is absolutely necessary to compete, but it provides only a fleeting advantage.” Source: The Soft Edge, Rich Karlgaard

Hard is soft. Soft is hard.
My first book, In Search of Excellence, can be summarized in six words: Hard is soft. Soft is hard. My next fifteen books can be summarized in six words: My seventeenth book, The Excellence Dividend, published in April 2018, can be summarized in six words:

FIRST THINGS BEFORE FIRST THINGS II COST CUTTING IS A DEATH SPIRAL: THE COMMERCE BANK/ METRO BANK SAGA 22 22

Commerce Bank/Metro Bank Dogma “WE WANT THEM IN OUR STORES
Commerce Bank/Metro Bank Dogma “WE WANT THEM IN OUR STORES.” Source: Vernon Hill, Fans! Not Customers. How to Create Growth Companies in a No Growth World

Commerce Bank/Metro Bank: Get ’Em Away From the ATM and smart Phone and Into the Branches [Stores]: 7X. 7:30A-8:00P. Fri/12A. 7:30AM = 7:15AM. 8:00PM = 8:15PM. Source: Vernon Hill, Fans! Not Customers 24

“YESBANK”: “When we had a processing problem with MasterCard, it came to our attention that a customer couldn’t pay for their airline flights. A Metro Bank team member stepped in. SHE PUT THE CUSTOMER’S FLIGHTS ON HER PERSONAL CREDIT CARD SO THAT THE CUSTOMER COULD STILL TAKE ADVANTAGE OF A [time-sensitive] GOOD DEAL, and later— with their permission, of course—transferred the money from their account.” Source: Fans! Not Customers. How to Create Growth Companies in a No Growth World, Vernon Hill

2,0000,000 17,000 8.6

2,000,000 Dog Biscuits +17,000 New Jobs $8,600,000,000 Price Tag

Commerce Bank/Metro Bank Dogma “COST CUTTING IS A DEATH SPIRAL
Commerce Bank/Metro Bank Dogma “COST CUTTING IS A DEATH SPIRAL. OUR WHOLE STORY IS GROWING REVENUE.” “ARE YOU GOING TO COST CUT YOUR WAY TO PROSPERITY? or … ARE YOU GOING TO SPEND YOUR WAY TO PROSPERITY?” “OVER-INVEST IN OUR PEOPLE, OVER-INVEST IN OUR FACILITIES.” Source: Vernon Hill, Fans! Not Customers. How to Create Growth Companies in a No Growth World

3. THERE ARE NO OTHER RULES.
Michael Raynor and Mumtaz Ahmed: THE THREE RULES: How Exceptional Companies Think* … 1. BETTER BEFORE CHEAPER. 2. REVENUE BEFORE COST. 3. THERE ARE NO OTHER RULES. (*5-year study/Deloitte: From a database of over 25,000 companies from hundreds of industries covering 45 years, the authors uncovered 344 companies that qualified as statistically “exceptional,” and finally winnowed the list to 27 firms, including Thomas & Betts, Weis Markets, Hartland Express.) Jeff Colvin, Fortune: “The Economy Is Scary … But Smart Companies Can Dominate” … They manage for VALUE—not for EPS. They get RADICALLY CUSTOMER-CENTRIC. They keep DEVELOPING HUMAN CAPITAL.

THRIVING IN AN AI-MAD WORLD
EXTREME HUMANIZATION The Excellence Dividend’s “poster child”: Commerce Bank/Metro Bank The human touch can prevail circa 2019! [Thrill customers (“Fans”) and create good jobs and earn big bucks and embarrass the tech-gaga/cost-cutting-obsessed/short-term-shareholder-value-maximizing narrow-minded-job-and-sustainability-destroyers.]

PUTTING PEOPLE (REALLY) FIRST
32 32

The Excellence Dividend Book Tour 2018. [
The Excellence Dividend Book Tour 2018* [*Time & Time (& Time) Again] Interviewer: “Tom, you always talk a lot about people.” Me: “What the f*** else is there to talk about?”

PUTTING PEOPLE (REALLY) FIRST
34 34

“Business has to give people enriching, rewarding lives …
or it’s simply not worth doing.” —Richard Branson (#1/4,096) “[Business has the] responsibility to increase the sum total of human well-being.” —Mihaly Csikszentmihalyi, Good Business “The role of the Director is to create a space where the actors and actresses can become more than they have ever been before, more than they have ever dreamed of being.” —Robert Altman, Oscar acceptance speech “You have to treat your employees like customers.” —Herb Kelleher, asked what was his secret to success “If you want staff to give great service, give great service to staff.” —Ari Weinzweig, Zingerman’s “What employees experience, customers will. the best marketing is happy, engaged employees. your customers will never be any happier than your employees.” —John DiJulius, The Customer Service Revolution “Business was originated to produce happiness, not pile up millions.” —B.C. FORBES, 1917/first issue/Forbes

“Business has to give people enriching, rewarding lives … or it’s simply not worth doing.”
—Richard Branson (#1/4,096) “[Business has the] responsibility to increase the sum total of human well-being.” —Mihaly Csikszentmihalyi, Good Business “The role of the Director is to create a space where the actors and actresses can become more than they have ever been before, more than they have ever dreamed of being.” —Robert Altman, Oscar acceptance speech “You have to treat your employees like customers.” —Herb Kelleher, asked what was his secret to success “If you want staff to give great service, give great service to staff.” —Ari Weinzweig, Zingerman’s “What employees experience, customers will. the best marketing is happy, engaged employees. your customers will never be any happier than your employees.” —John DiJulius, The Customer Service Revolution “Business was originated to produce happiness, not pile up millions.” —B.C. FORBES, 1917/first issue/Forbes

“Business has to give people enriching, rewarding lives … or it’s simply not worth doing.” —Richard Branson (#1/4,096) “[Business has the] responsibility to increase the sum total of human well-being.” —Mihaly Csikszentmihalyi, Good Business “The role of the Director is to create a space where the actors and actresses can become more than they have ever been before, more than they have ever dreamed of being.” —Robert Altman, Oscar acceptance speech “You have to treat your employees like customers.” —Herb Kelleher, asked what was his secret to success “If you want staff to give great service, give great service to staff.” —Ari Weinzweig, Zingerman’s “What employees experience, customers will. the best marketing is happy, engaged employees. your customers will never be any happier than your employees.” —John DiJulius, The Customer Service Revolution “Business was originated to produce happiness, not pile up millions.” —B.C. FORBES, 1917/first issue/Forbes

“If you want staff to give great service,
“Business has to give people enriching, rewarding lives … or it’s simply not worth doing.” —Richard Branson (#1/4,096) “[Business has the] responsibility to increase the sum total of human well-being.” —Mihaly Csikszentmihalyi, Good Business “The role of the Director is to create a space where the actors and actresses can become more than they have ever been before, more than they have ever dreamed of being.” —Robert Altman, Oscar acceptance speech “You have to treat your employees like customers.” —Herb Kelleher, asked about his secret to success “If you want staff to give great service, give great service to staff.” —Ari Weinzweig, Zingerman’s “What employees experience, customers will. the best marketing is happy, engaged employees. Your customers will never be any happier than your employees.” —John DiJulius, The Customer Service Revolution “Business was originated to produce happiness, not pile up millions.” —B.C. FORBES, 1917/first issue/Forbes

“Business has to give people enriching, rewarding lives … or it’s simply not worth doing.” —Richard Branson (#1/4,096) “[Business has the] responsibility to increase the sum total of human well-being.” —Mihaly Csikszentmihalyi, Good Business “The role of the Director is to create a space where the actors and actresses can become more than they have ever been before, more than they have ever dreamed of being.” —Robert Altman, Oscar acceptance speech “You have to treat your employees like customers.” —Herb Kelleher, asked about his secret to success “If you want staff to give great service, give great service to staff.” —Ari Weinzweig, Zingerman’s “What employees experience, customers will. the best marketing is happy, engaged employees. Your customers will never be any happier than your employees.” —John DiJulius, The Customer Service Revolution “Business was originated to produce happiness, not pile up millions.” —B.C. FORBES, 1917/first issue/Forbes

“You have to treat your employees like customers.”
“Business has to give people enriching, rewarding lives … or it’s simply not worth doing.” —Richard Branson (#1/4,096) “[Business has the] responsibility to increase the sum total of human well-being.” —Mihaly Csikszentmihalyi, Good Business “The role of the Director is to create a space where the actors and actresses can become more than they have ever been before, more than they have ever dreamed of being.” —Robert Altman, Oscar acceptance speech “You have to treat your employees like customers.” —Herb Kelleher, asked for his secret to success “If you want staff to give great service, give great service to staff.” —Ari Weinzweig, Zingerman’s “What employees experience, customers will. the best marketing is happy, engaged employees. your customers will never be any happier than your employees.” —John DiJulius, The Customer Service Revolution “Business was originated to produce happiness, not pile up millions.” —B.C. FORBES, 1917/first issue/Forbes

THE DREAM MANAGER — by Matthew Kelly “AN ORGANIZATION CAN ONLY BECOME THE-BEST-VERSION-OF-ITSELF TO THE EXTENT THAT THE PEOPLE WHO DRIVE THAT ORGANIZATION ARE STRIVING TO BECOME BETTER-VERSIONS-OF-THEMSELVES.” “A company’s purpose is to become the-best-version-of-itself. The question is: What is an employee’s purpose? Most would say, ‘to help the company achieve its purpose’—BUT THEY WOULD BE WRONG. That is certainly part of the employee’s role, but an employee’s primary purpose is to become the-best-version-of-himself or –herself. … When a company forgets that it exists to serve customers, it quickly goes out of business. OUR EMPLOYEES ARE OUR FIRST CUSTOMERS, AND OUR MOST IMPORTANT CUSTOMERS.” 41

by Peter Shankman with Karen Kelly
Profit Through Putting People (REALLY) First Business Book Club Nice Companies Finish First: Why Cutthroat Management Is Over—and Collaboration Is In, by Peter Shankman with Karen Kelly Uncontainable: How Passion, Commitment, and Conscious Capitalism Built a Business Where Everyone Thrives, by Kip Tindell, CEO Container Store Conscious Capitalism: Liberating the Heroic Spirit of Business, by John Mackey, CEO Whole Foods, and Raj Sisodia Firms of Endearment: How World-Class Companies Profit from Passion and Purpose, by Raj Sisodia, Jag Sheth, and David Wolfe The Good Jobs Strategy: How the Smartest Companies Invest in Employees to Lower Costs and Boost Profits, by Zeynep Ton, MIT Small Giants: Companies That Choose to Be Great Instead of Big, by Bo Burlingham Joy at Work: A Revolutionary Approach to Fun on the Job, by Dennis Bakke, former CEO, AES Corporation Joy, Inc.: How We Built a Workplace People Love, by Richard Sheridan, CEO Menlo Innovations It’s Your Ship: Management Techniques from the Best Damn Ship in the Navy, by Mike Abrashoff, former commander, USS Benfold Turn This Ship Around; How to Create Leadership at Every Level, by L. David Marquet, former commander, SSN Santa Fe Employees First, Customers Second: Turning Conventional Management Upside Down, by Vineet Nayar, CEO, HCL Technologies Patients Come Second: Leading Change By Changing the Way You Lead by Paul Spiegelman & Britt Berrett The Customer Comes Second: Put Your People First and Watch ’Em Kick Butt, by Hal Rosenbluth, former CEO, Rosenbluth International Hidden Champions: Success Strategies of Unknown World Market Leaders, by Hermann Simon Retail Superstars: Inside the 25 Best Independent Stores in America, by George Whalin The Dream Manager, by Matthew Kelly The Soft Edge: Where Great Companies Find Lasting Success, by Rich Karlgaard, publisher, Forbes Delivering Happiness: A Path to Profits, by Tony Hsieh, Zappos Camellia: A Very Different Company Fans, Not Customers: How to Create Growth Companies in a No Growth World, by Vernon Hill Like a Virgin: Secrets They Won’t Teach You at Business School, by Richard Branson

PUTTING PEOPLE (REALLY) FIRST: WHERE IT “CAN’T BE DONE”
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/Fortune: Just twelve companies have been among the “100 best companies to work for” in the USA every year, for all 18 years of the list’s existence. Along the way, they’ve added; 341,567 new jobs, or job growth of +172%: Publix* Whole Foods* Wegmans* Nordstrom* Cisco Systems Marriott* REI* Goldman Sachs Four Seasons* SAS Institute W.L. Gore TDIndustries *7/12/—the majority!—in businesses where “it” (long-term satisfied, well-compensated employees) “can’t be done;” retail, hospitality, etc. Source: Fortune/ “The 100 Best Companies to Work For”/

“They take generous care of their part-timers.”
7/12: (Only) ONE THING IN COMMON “They take generous care of their part-timers.” At some of the companies on the list, the share of part-timers is low. But among the seven (of twelve) that are in industries like hotels and retail, the numbers are sky high. Whole Foods, for example, had 27,000 part-timers at the time the list was published, Nordstrom had 30,000—and Publix had a staggering 100,000. “The most important commonality among the twelve is that they all offer part-timers healthcare benefits. And most give part-timers paid time off for sick days, holidays, etc. Nordstrom part-timers, for example, have 19 paid days off, Marriott’s have 18 paid days off, and REI’s have 12. Other examples of treating part-timers as full-time members of the family include Publix’s [again] policy of making part-timers eligible for employee stock ownership plans that fund retirement savings.” Source: Fortune/ “The 100 Best Companies to Work For”/

Source: The Good Jobs Strategy, by M.I.T. professor Zeynep Ton
“Contrary to conventional corporate thinking, treating retail workers much better may make everyone [including their employers) much richer.” Source: The Good Jobs Strategy, by M.I.T. professor Zeynep Ton

Listening. Caring. Smiling. Saying Being Warm. Nice. Empathetic.
HIRING: Listening. Caring. Smiling. Saying “Thank you.” Being Warm. Nice. Empathetic. “Better people.” “We.” 47 47

“May I help you down the jetway …”
1/7,500 “May I help you down the jetway …” 48

“We look for ... listening, caring, smiling, saying ‘Thank you,’ being warm.” — Colleen Barrett, former President, Southwest Airlines 49

—Peter Miller, CEO Optinose (pharmaceuticals)
“The ultimate filter we use [in the hiring process] is that we only hire NICE people. … When we finish assessing skills, we do something called ‘running the gauntlet.’ We have them interact with 15 or 20 people, and everyone of them have what I call a ‘blackball vote,’ which means they can say if we should not hire that person. I believe in culture so strongly and that one bad apple can spoil the bunch. There are enough really talented people out there who are nice, you don’t really need to put up with people who act like jerks.” —Peter Miller, CEO Optinose (pharmaceuticals) “When we talk about the qualities we want in people, EMPATHY is a big one. … If you can empathize with people, then you can do a good job. If you have no ability to empathize, then it’s difficult to help people improve. Everything becomes harder. —Stewart Butterfield, founder/CEO Slack, Flickr

“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 (& John Bacon), “Recruit for Character,” Bo’s Lasting Lessons 51

“Hiring for Values,” Management Lessons From Mayo Clinic
Observed closely during Mayo Clinic employment interviews (for renowned surgeons as well as others): The frequency of use of “I” or “We.” Source: Leonard Berry & Kent Seltman, chapter 6, “Hiring for Values,” Management Lessons From Mayo Clinic 52

Leonard Berry & Kent Seltman, Management Lessons From Mayo Clinic
“I am hundreds of times better here [than in my prior hospital assignment] because of the support system. It’s like you were working in an organism; you are not a single cell when you are out there practicing.’” —quote from Dr. Nina Schwenk, in Chapter 3, “Practicing Team Medicine,” from Leonard Berry & Kent Seltman, Management Lessons From Mayo Clinic 53

Listening. Caring. Smiling. Saying “Thank you.”
HIRING: USE THESE WORDS! Listening. Caring. Smiling. Saying “Thank you.” Being Warm. Nice. Empathetic. “Better people.” “We.” 54 54

“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, Geoff Smart and Randy Street 55

“We live with a value system that I call the Extrovert Ideal—the omnipresent belief that the ideal self is gregarious, alpha, and comfortable in the spotlight. The archetypal extrovert prefers action to contemplation, risk-taking to heed-taking, certainty to doubt. … We think that we value individuality, but all too often we admire one type of individual … Introversion is now a second-class personality trait. … The Extrovert Ideal has been documented in many studies. Talkative people, for example, are rated as smarter, better looking, more interesting, and more desirable as friends. Velocity of speech counts as well as volume: We rank fast talkers as more competent and likeable than slow ones. But we make a grave mistake to embrace the Extrovert Ideal so unthinkingly. … As the science journalist Winifred Gallagher writes, ‘The glory of the disposition that stops to consider stimuli rather than rushing to engage with them is its long association with intellectual and artistic achievement. Neither E = mc squared or Paradise Lost was dashed off by a party animal.’ Even in less obviously introverted occupations, like finance, politics, and activism, some of the greatest leaps forward were made by introverts … figures like Eleanor Roosevelt, Warren Buffett and Gandhi achieved what they did not in spite of but because of their introversion.” —Susan Cain, Quiet: The Power of Introverts in a World That Can’t Stop Talking

Quiet: The Power of Introverts in a World That Can’t Stop Talking
“The next time you see a person with a composed face and a soft voice, remember that inside her mind she might be solving an equation, composing a sonnet, designing a hat. She might, that is, be deploying the power of quiet.” —Susan Cain, Quiet: The Power of Introverts in a World That Can’t Stop Talking

TRAINING = INVESTMENT #1!

If you don't believe that training is “INVESTMENT #1,” ask an admiral, general, police chief, fire chief, orchestra conductor, football coach, archery coach, movie director, actor (age 22 or 62), prima ballerina, surgeon, ER or ICU chief or nurse, nuclear power plant operator ... (or me). (Train ’em and they’ll leave.” Or … “TRAIN PEOPLE WELL ENOUGH SO THEY CAN LEAVE, TREAT THEM WELL ENOUGH SO THEY DON’T WANT TO.” —Richard Branson)

Gamblin’ Man Bet #1: >> 5 of 10 CEOs see training as expense rather than investment. Bet #2: >> 5 of 10 CEOs see training as defense rather than offense. Bet #3: >> 5 of 10 CEOs see training as “necessary evil” rather than “strategic opportunity.”

Bet #4: >> 8 of 10 CEOs, in 45-min “tour d’horizon” of their biz, would NOT mention training.

Step #1 Is your CTO/Chief Training Officer (Do you even
have a CTO?) your top paid “C-level” job (other than CEO/COO)? Are your top trainers paid/cherished as much as your top marketers/ engineers?

Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?
If not, why not? Are your top trainers paid as much as your top marketers and engineers? Are your training courses so good they make you giggle and tingle? Randomly stop an employee in the hall: Can she/he meticulously describe her/his development plan for the next 12 months? Why is your world of business any different than the (competitive) world of rugby, football, opera, theater, the military? If “people/talent first” and hyper-intense continuous training are laughably obviously for them, why not you?

Boss & RPD: Your (boss) job is (much) safer if every one
of your team members has and is following an RPD/Radical Personal Development. Actively support one and all!

“Train ’em and they’ll leave.” Or …

“TRAIN PEOPLE WELL ENOUGH SO THEY CAN LEAVE, TREAT THEM WELL ENOUGH SO THEY DON’T WANT TO.” —Richard Branson

EVALUATING (One Size Fits One) (53 = 53) 68 68

53 = 53* *53 people = 53 (different) evaluation criteria
69 69

People are NOT “Standardized. ” Evaluations should NOT be standardized
People are NOT “Standardized.” Evaluations should NOT be standardized. EVER. 70 70

PROMOTING = LEGACY

Promotion Decisions 2 per Year = Legacy “life and death decisions” Source: Peter Drucker, The Practice of Management

ASSET #1 1ST-LINE LEADERS

If the regimental commander lost most of his 2nd lieutenants and 1st lieutenants and captains and majors, it would be a tragedy. IF HE LOST HIS SERGEANTS IT WOULD BE A CATASTROPHE. The Army and the Navy are fully aware that success on the battlefield is dependent to an extraordinary degree on its Sergeants and Chief Petty Officers. Does industry have the same awareness? 74

Employee retention & satisfaction: “Overwhelmingly based on the first-line manager!” —Marcus Buckingham/Curt Coffman, First, Break All the Rules “People leave managers not companies.” —Dave Wheeler 75

Front-line Chiefs (Full Complement of):
Principal determinants of … enterprise productivity. Principal determinants of … employee retention. Principal determinants of … product/ service quality. Principal carriers/embodiments of … corporate culture. Principal visible “spear carriers” for … Excellence. (Or not.) Principal champions/enablers of … sustained employee development.

WOMEN RULE! 77

“AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” TITLE/Special Report/BusinessWeek 78 78

—Harvard Business Review/2017 —Nicholas Kristof/New York Times
“Women are rated higher in fully 12 of the 16 competencies that go into outstanding leadership. And two of the traits where women outscored men to the highest degree — taking initiative and driving for results — have long been thought of as particularly male strengths.” —Harvard Business Review/2017 “Research [by McKinsey & Co.] suggests that to succeed, start by promoting women.” —Nicholas Kristof/New York Times

“In my experience, women make much better executives than men.”
“Research [by McKinsey & Co.] suggests that to succeed, start by promoting women.” —Nicholas Kristof, “Twitter, Women, and Power,” NYTimes “In my experience, women make much better executives than men.” —Kip Tindell, CEO, Container Store

For One (BIG) Thing … “McKinsey & Company found that the international companies with more women on their corporate boards far outperformed the average company in return on equity and other measures. Operating profit was … % higher.” Source: Nicholas Kristof, “Twitter, Women, and Power,” NYTimes,

Women’s Strengths Match New Economy Imperatives: Link [rather than rank] workers; favor interactive-collaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills, individual & group contributions equally; readily accept ambiguity; honor intuition as well as pure “rationality”; inherently flexible; appreciate cultural diversity. Source: Judy B. Rosener, America’s Competitive Secret: Women Managers 82

Women’s Negotiating Strengths
Women’s Negotiating Strengths *Ability to put themselves in their counterparts’ shoes *Comprehensive, attentive and detailed communication style *Empathy that facilitates trust-building *Curious and attentive listening *Less competitive attitude *Strong sense of fairness and ability to persuade *Proactive risk manager *Collaborative decision-making Source: Horacio Falcao, Cover story/May 2006, World Business, “Say It Like a Woman: Why the 21st-century negotiator will need the female touch” 83

PORTRAIT OF A FEMALE INVESTOR 1. Trade less than men do 2
PORTRAIT OF A FEMALE INVESTOR 1. Trade less than men do 2. Exhibit less overconfidence—more likely to know what they don’t know 3. Shun risk more than male investors do 4. Less optimistic, more realistic than their male counterparts 5. Put in more time and effort researching possible investments—consider details and alternate points of view 6. More immune to peer pressure—tend to make decisions the same way regardless of who’s watching 7. Learn from their mistakes 8. Have less testosterone than men do, making them less willing to take extreme risks, which, in turn, could lead to less extreme market cycles Source: Warren Buffett Invests Like a Girl: And Why You Should Too, Louann Lofton, Chapter 2, “The Science Behind the Girl” 84

PEOPLE (REALLY) FIRST: THE #1 MORAL IMPERATIVE
86 86

The Glass Cage: Automation and Us
“Almost half of U.S. jobs are at high risk of computerization over the next 20 years, according to Oxford academics Carl Benedikt Frey and Michael A. Osborne.” —CNBC, 9 March 2016 “The intellectual talents of highly trained professionals are no more protected from automation than is the driver’s left turn.” —Nicholas Carr, The Glass Cage: Automation and Us

70%, 85%, 87%* = Shame on Us!! *% of people who dislike their job, are not engaged at work, unhappy, “sleepwalking,” etc. (These numbers are extraordinarily consistent around the world.) Source: Inc., Gallup, Washington Post, etc.

—Mihaly Csikszentmihalyi, Good Business
“[Business has the] responsibility to increase the sum of human well-being.” —Mihaly Csikszentmihalyi, Good Business

Given/Axiomatic … THERE IS NO EXCUSE FOR NOT
MAKING ANY ORGANIZATION OF ANY SIZE IN ANY BUSINESS A … GREAT PLACE TO WORK EVERY LEADER/2019 HAS A MORAL OBLIGATION TO DEVELOP PEOPLE SO THAT WHEN THEY LEAVE THEY ARE BETTER PREPARED FOR (CRAZY) TOMORROW THAN THEY WERE WHEN THEY ARRIVED.

How We Built a Workplace People Love
“It may sound radical, unconventional, and bordering on being a crazy business idea. However—as ridiculous as it sounds—joy is the core belief of our workplace. Joy is the reason my company, Menlo Innovations, a customer software design and development firm in Ann Arbor, exists. It defines what we do and how we do it. It is the single shared belief of our entire team.” —Richard Sheridan, Joy, Inc.: How We Built a Workplace People Love [FYI: Sheridan has followed up (12/18) with CHIEF JOY OFFICER: Elevate Human Energy and Eliminate Fear]

MANAGING: AS A PAIN IN THE ASS
MANAGING: AS A PAIN IN THE ASS. Somebody’s got to do it; punching bag for higher ups on one end, grouchy employees on the other; blame magnet if things go wrong, big bosses abscond with the credit if things go right. MANAGING: AS THE PINNACLE OF HUMAN ACHIEVEMENT. The greatest life opportunity one can have (literally); mid- to long-term success is no more and no less than a function of one’s dedication to and effectiveness at helping team members grow and flourish as individuals and as contributing members to an energetic, self-renewing organization dedicated to the relentless pursuit of Excellence.

Les Wexner: FROM FASHION TRENDS GURU TO JOY FROM PICKING/
DEVELOPING PEOPLE!* *Limited Brands founder Les Wexner queried on astounding (>>Jack Welch) longterm growth & profitability: It happened, he said, because “I got as excited about developing people” as he had been about predicting fashion trends in his early years. 94

2019/CORPORATE MANDATE #1: Your principal moral obligation as a leader is to develop the skillset, “soft” and “hard,” of every one of the people in your charge (temporary as well as semi-permanent) to the maximum extent of your abilities. The bonus: This is also the #1 mid- to long-term … profit maximization strategy! 95 95

THE LAST WORD: PEOPLE SERVING PEOPLE SERVING PEOPLE People are NOT “human resources.” People are NOT “our” “#1 asset.” Business IS people. Business IS people (leaders) serving people (employees) serving people (customers).

“No matter what the situation, [the great manager’s] first response is always to think about the individual concerned and how things can be arranged to help that individual experience success.” —Marcus Buckingham, The One Thing You Need to Know 97 97

PEOPLE FIRST: “E-CUBED” EXTREME EMPLOYEE ENGAGEMENT
98 98

Extreme Employee Engagement/EEE/“E-cubed”
Extreme Employee Engagement/EEE maximizes the quality of customer engagement. EEE maximizes customer retention. EEE turns “customers” into “fans.” EEE makes it safe to take risks and make mistakes—which in turn generates and maximizes innovation at all levels of the organization. EEE radically improves individual and organizational learning. EEE underpins and spurs teamwork. EEE enhances co-operation and communication which in turn increases productivity and quality.

EEE reduces friction throughout the organization which dramatically improves all-important cross-functional communication and innovation and efficiency associated therewith. EEE improves the quality of joint ventures. EEE dramatically improves execution. EEE is the best defense against the AI tsunami—and by and large makes AI a partner/ally rather than enemy. EEE spurs humanization of everything—which is by and large not copy-able by AI in the foreseeable future. EEE reduces turnover and stabilizes the work force.

EEE makes it possible to recruit top talent.
EEE means top employees are far more likely to stay with the organization. EEE improves the reputation of the company as viewed by all stakeholders. EEE improves community relations. EEE is a contribution to humanity EEE makes coming to work a pleasure—not a pain. EEE is the only sane and honorable response to the forthcoming radical changes in the global workplace.

EEE makes it possible for leaders to look in the mirror without barfing.
EEE makes it possible for leaders to look in the mirror and smile. EEE is hard to copy. EEE is Competitive Advantage #1 EEE is the bedrock of EXCELLENCE. (No EEE, no excellence. That simple.) EEE (beancounters take note!!) is a peerless/the best/sustainable profit-maximization tool. EEE makes consistent wage and benefits growth possible. EEE = $$$$/Money (lots of) in the bank for one and all.

CULTURE IS THE GAME 103 103

CULTURE EATS STRATEGY FOR BREAKFAST
104 104

“CULTURE EATS STRATEGY FOR BREAKFAST” —Ed Schein —IT IS THE GAME.”
“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 105 105

of the company.” —Howard Schultz
“Starbucks had become operationally driven, about efficiency as opposed to the romance. We’d lost the soul of the company.” —Howard Schultz on Starbucks’ problems which caused him to reclaim the CEO job (Shultz calls his association with Starbucks “a love story.” FYI: Subsequent to Schultz’s return, Starbucks has indeed gotten its mojo back!) “What’s remarkable is how fast a culture can be torn apart.” —top 3M scientist (“3M’s Innovation Crisis: How Six Sigma Almost Smothered Its Idea Culture,” Cover story, BusinessWeek)

CULTURE/CEO JOB #1 /THE RULES:
CULTURE COMES FIRST. CULTURE IS EXCEEDINGLY DIFFICULT TO CHANGE. CULURE CHANGE CANNOT BE/MUST NOT BE EVADED OR AVOIDED. CULTURE MAINTENANCE IS ABOUT AS DIFFICULT AS CULTURE CHANGE. CULTURE MAINTENANCE: ONE DAY/ONE HOUR/ ONE MINUTE AT A TIME. CULTURE CHANGE/MAINTENANCE MUST BECOME A CONSCIOUS/PERMANENT/PERSONAL AGENDA ITEM. CULTURE CHANGE = AN “OUTSIDE-THE OFFICE JOB” = MBWA/MANAGING BY WANDERING AROUND. CULTURE CHANGE/MAINTENANCE IS MANIFEST IN “THE LITTLE THINGS” FAR MORE THAN IN THE BIG THINGS. REPEAT/CULTURE CHANGE/MAINTENANCE: ONE DAY/ONE HOUR/ONE MINUTE AT A TIME. FOREVER. AND EVER.

INNOVATION: WTTMSW+ 108 108

INNOVATION: WTTMSW 109 109

*Whoever Tries The Most Stuff Wins
WTTMSW* *Whoever Tries The Most Stuff Wins 110

“WE HAVE A STRATEGIC PLAN. IT’S CALLED ‘DOING THINGS
“WE HAVE A STRATEGIC PLAN. IT’S CALLED ‘DOING THINGS.’ ” —Herb Kelleher

—Bloomberg by Bloomberg
“We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the software. We fixed them by doing it over and over, again and again. We do the same today. While our competitors are still sucking their thumbs trying to make the design perfect, we’re already on prototype version #5. By the time our rivals are ready with wires and screws, we are on version #10. It gets back to planning versus acting: We act from day one; others plan how to plan—for months.” —Bloomberg by Bloomberg 112

READY. FIRE! AIM. H. Ross Perot (vs “Aim! Aim! Aim!”/EDS vs GM/1985)
113 113

BEDROCK: A CULTURE OF SERIOUS PLAY “You can’t be a serious innovator unless and until you are ready, willing and able to seriously play. ‘SERIOUS PLAY’ is not an oxymoron; it is the essence of innovation.” —Michael Schrage, Serious Play SORRY … I LOVE THIS. “SERIOUS PLAY” … OR … FUHGEDDABOUDIT!!!!!!!!!!!!!!!! No bull: I’m 57 … and I believe that this is … THE Truth. NO SHIT. 114

“Fail. Forward. Fast. ” —High Tech CEO, Pennsylvania “Fail faster
“Fail. Forward. Fast.” —High Tech CEO, Pennsylvania “Fail faster. Succeed sooner.” —David Kelley/IDEO “REWARD excellent failures. PUNISH mediocre successes.” —Phil Daniels, Sydney exec

WTTMSASTMSUTFW* *Whoever Tries The Most Stuff And Screws The Most Stuff Up The Fastest Wins 116

“EXPERIMENT FEARLESSLY” Source: BusinessWeek, “Type A Organization Strategies: How to Hit a Moving Target”—TACTIC #1 “RELENTLESS TRIAL AND ERROR” Source: Wall Street Journal, CORNERSTONE of effective approach to “rebalancing” company portfolios in the face of changing and uncertain global economic conditions 117 117

3. Autonomy and Entrepreneurship 4. Productivity Through People
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 118

“The difference between Bach and his forgotten peers isn’t necessarily that he had a better ratio of hits to misses. The difference is that the mediocre might have a dozen ideas, while Bach, in his lifetime, created more than a thousand full-fledged musical compositions. A genius is a genius, psychologist Paul Simonton maintains, because he can put together such a staggering number of insights, ideas, theories, random observations, and unexpected connections that he almost inevitably ends up with something great. ‘Quality,’ Simonton writes, ‘ is a probabilistic function of quantity.’” * —Malcolm Gladwell, “Creation Myth,” New Yorker _________________________________________________________________________________________________________________________ *Dr. Joe Murray, to TP, on winning a Nobel prize in medicine for the 1st successful organ transplant: “We did more procedures.” 119

WE ARE WHAT WE EAT. WE ARE WHO WE HANG OUT WITH.

be either a blessing or a curse.” —Billy Cox
“You will become like the five people you associate with the most—this can be either a blessing or a curse.” —Billy Cox 121

Diversity: “IT IS HARDLY POSSIBLE TO OVERRATE THE VALUE OF PLACING HUMAN BEINGS IN CONTACT WITH PERSONS DIS-SIMILAR TO THEMSELVES, AND WITH MODES OF THOUGHT AND ACTION UNLIKE THOSE WITH WHICH THEY ARE FAMILIAR. SUCH COMMUNICATION HAS ALWAYS BEEN, AND IS PECULIARLY IN THE PRESENT AGE, ONE OF THE PRIMARY SOURCES OF PROGRESS.” —John Stuart Mill ( )

The “We are what we eat”/ “We are who we hang out with” Axiom: At its core, every (!!!) relationship-partnership decision (employee, vendor, customer, etc., etc.) is a strategic decision about: “Innovate, ‘Yes’ or ‘No’ ” 123 123

“Who’s the most interesting person you’ve met in the last 90 days
“Who’s the most interesting person you’ve met in the last 90 days? How do I get in touch with them?” —Fred Smith 124 124

“THE BOTTLENECK IS AT THE … “Where are you likely to find people with the least diversity of experience, the largest investment in the past, and the greatest reverence for industry dogma … TOP OF THE BOTTLE” — Gary Hamel/Harvard Business Review 125

At least two members under 30 At least four women
Diversity: Board of Directors 2019 Consider a 10-person Board of Directors fit for Here are my compositional “rules” (categories not mutually exclusive)*: At least two members under 30 At least four women One IT/data analytics superstar One designer One or two entrepreneurs (and a VC?) One person with a “weird” background—artist, musician, shaman, etc. No more than two over 60 No more than three with MBAs (*Partial inspiration: W. Ross Ashby’s “Law of Requisite Variety.” The diversity of the board should roughly match the diversity of the context/environment.)

REMEMBER: “McKinsey & Company found that the international companies with more women on their corporate boards far outperformed the average company in return on equity and other measures. Operating profit was … % higher.” Source: Nicholas Kristof, “Twitter, Women, and Power,” NYTimes,

VALUE-ADDED STRATEGIES
128 128

VALUE-ADDED STRATEGY #1: DESIGN I/ EXTREME HUMANIZATION
129 129

DESIGN triumphs! (10 August 2011) APPLE market cap > ExxonMobil
130 130

“We don’t have a good language to talk about this kind of thing
“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 131

Apple design: “Huge degree of care.”
—Ian Parker, New Yorker, 23 March 2015, on Apple design chief Jony Ives

“Steve and Jony would discuss corners for hours and hours.”
—Laurene Powell Jobs

EPIC SCREWS WITH DEEPER MEANING
“[Nest founder Tony Fadell] admitted, ‘Every business school in the world would flunk you if you came out with a business plan that said, Oh, by the way, we’re going to design and fabricate our own screws at an exponentially higher cost than it would cost to buy them. BUT THESE AREN’T JUST SCREWS. LIKE THE THERMOMETER ITSELF, THEY’RE BETTER SCREWS, EPIC SCREWS, SCREWS WITH, DARE I SAY IT, DEEPER MEANING. Functionally, they utilize a specific thread pattern that allows them to go into any surface, from wood to plaster to thin sheet metal. And the [custom] screwdriver feels balanced to the hand; it has the Nest logo on it and looks ‘Nest-y,’ just like everything from Apple looks ‘Apple-y.’” —Rich Karlgaard, The Soft Edge

MORE THAN APPLE: RACING SHELLS
“He said for him the craft of building a boat was like a religion. It wasn’t enough to master the technical details of it. You had to give yourself up to it spiritually; you had to surrender yourself absolutely to it. When you were done and walked away, you had to feel that you had left a piece of yourself behind in you forever, a bit of your heart.” —On the world’s premier racing shell builder, George Yeoman Pocock, in Daniel Brown, THE BOYS IN THE BOAT: Nine Americans and Their Epic Quest for Gold at the 1936 Berlin Olympics

Extreme Humanization Radical Humanization

EXTREME HUMANIZATION/RADICAL HUMANIZATION
Epigraph/The Excellence Dividend/THE TRIUMPH OF HUMANITY “Janet Dugan, a healthcare architect, took inspiration from her recent experience having an MRI [Magnetic Resonance Image] scan. While she was lying still and waiting, she noticed a small mirror that had been placed below the head support piece. It was angled so that she could see through the barrel to the radiology technician and make eye contact with him. ‘What a small thing,’ she told me. ‘And yet what a difference it made. I felt less alone. I was connected to another person at the very moment I needed support. And even though I’m not claustrophobic, it calmed me some to be able to see out of the barrel … I [saw] that the technician was friendly and that the nurse went out of her way to make me laugh. … I firmly believe in the power of design to contribute to the healing process—that architecture can shape events and transform lives. But that day, in that experience, the thing that really gave me comfort was a tiny mirror about as big as a Band-Aid.’” —Tim Leberecht, The Business Romantic: Give Everything, Quantify Nothing, and Create Something Greater Than Yourself

that almost no new vehicle in recent memory has provoked more smiles.”
EXTREME HUMANIZATION/ RADICAL HUMANIZTION (The Limits of AI???) “It is fair to say that almost no new vehicle in recent memory has provoked more smiles.” —review of the MINI Cooper S [reported in Donald Norman, Emotional Design: Why We Love (or Hate) Everyday Things]

THE LIMITS OF “ENGINEERING”: MY “EXPERIENCE” PROBLEM
I’m having some (biggish) trouble with the “experience marketing” idea. The possible implication, as I see it, is that you can “engineer” an excellent experience. Certainly an excellent experience has supportive systems lying beneath the surface. But when the systems rule the roost, the trouble starts. Experiences that stick are about emotional engagement. And emotional engagement is about intangibles, about artistry, about surprise, about those smiles the MINI Cooper S engenders. THE EXPERIENCE FETISH HAS, ALAS AND ALL TOO OFTEN, GONE METRIC. “Metrics” for this, metrics for that. Metrics metrics metrics. I recently went to my car dealership for a regular checkup. They did a fine and job. But no less than three times the service boss reminded me to fill out my on-line assessment of the visit—and asked me if he could do anything more that would improve my assessment. All the emotion was drained out of the “experience” in a flash—the whole “experience” was tainted and the emotion was drained therefrom. .

SUGGESTION For every engineer and marketer on the “Experience Design & Development Team,” you need an artist, psychologist, musician, theater director—and perhaps a shaman.

A Force for Transforming Everything
“Design is everything. “Everything is design. “We are all designers.’ The Power of Design: A Force for Transforming Everything

Design mindedness pervades (EVERYTHING) …. The reception area
Design mindedness pervades (EVERYTHING) … * The reception area * The restrooms!! * Dialogues at the call center * Every electronic (or paper) form * Every business process “map” * Every * Every meeting agenda/setting/etc. * Every square meter of every facility * Every new product proposal * Every manual * Every customer contact * A consideration in every promotion decision * The presence and ubiquity of an “Aesthetic sensibility”/ “Design mindfulness” * An encompassing “design review” process of … everything * Etc. * Etc.

—Robert Brunner, former Apple design chief
“Typically, design is a vertical stripe in the chain of events in a product’s delivery. [At Apple, it’s] a long, horizontal stripe, where design is part of every conversation.” —Robert Brunner, former Apple design chief

I believe that emotion eats reason for breakfast. I am not
“As a marketing executive, I view business as one of the greatest adventures of the human enterprise—if not the greatest. But I am not just a businessman: I am also an unapologetic romantic. I believe the world would be a better place if we had more romance in our lives. I believe that promise trumps fulfillment. I believe that emotion eats reason for breakfast. I am not a daydreamer, idealist, or social activist. I am a business romantic.” —Tim Lebrecht, The Business Romantic: Give Everything, Quantify Nothing, and Create Something Greater Than Yourself

“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

READ! STUDY! *Emotional Design: Why We Love (or Hate)
Everyday Things, by Donald Norman *Enchantment: The Art of Changing Heart, Minds, and Actions, by Guy Kawasaki *Lovemarks: The Future Beyond Brands, by Kevin Roberts *The Business Romantic: Give Everything, Quantify Nothing, and Create Something Greater Than Yourself, by Tim Leberecht

10 AUGUST 2011/APPLE>EXXON “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 “STEVE AND JONY WOULD DISCUSS CORNERS FOR HOURS AND HOURS.” —Laurene Powell Jobs “Every business school in the world would flunk you if you came out with a business plan that said, ‘Oh, by the way, we’re going to design and fabricate our own screws at an exponentially higher cost than it would cost to buy them.’ BUT THESE AREN’T JUST SCREWS. LIKE THE THERMOMETER ITSELF, THEY’RE BETTER SCREWS, EPIC SCREWS, SCREWS WITH, DARE I SAY IT, DEEPER MEANING. —Tony Fadell, Nest “It is fair to say that almost NO NEW VEHICLE IN RECENT MEMORY HAS PROVOKED MORE SMILES.” —review of the MINI Cooper S, reported in Donald Norman, Emotional Design: Why We Love (or Hate) Everyday Things 147

VALUE-ADDED DESIGN II TGRs (“Things Gone Right”)
148 148

Customers describing their service experience as “superior”: 8%
Companies describing the service experience they provide as “superior”: 80% —Source: Bain & Company survey of 362 companies, reported in John DiJulius, What's the Secret to Providing a World-class Customer Experience? 149

TGRs>>TGWs (Dealing With the 8%-80% Travesty)
1/7,500:“May I help you down the jetway.” 150

SMALL >>>>> BIG
“Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” —Henry Clay "Let's not forget that small emotions are the great captains of our lives." —van Gogh

TGRs. Perfectly furled hose. Owner on the street
TGRs *Perfectly furled hose *Owner on the street *Over the (brutal) hill *Prizeworthy stone driveway sculpture *Shoveling the walk *Inflating the beach toy *“Hi Tom …”

The local plumber or electrician does not provide a
“commodity service” … if he/she knows their job if he/she is learning new tricks all the time if he/she has a good disposition if he/she shows up on time if he/she is neatly dressed if he/she has s spiffy truck if he/she fixes the problem in an elegant and timely fashion—and clearly explains what was done and why it was done this way or that if he/she cleans up so that after the fact the client could “eat off the jobsite floor” if he/she volunteers to do a few tiny tasks outside the one at hand—gratis if he/she calls (“call” = phone, not ) 24 hours later to make sure all is well if, perhaps, he/she creates a blog with occasional posts featuring practical tips for his clientele; for example, a tiny Virginia swimming pool company became a literal “best-in-world” following such a social- media strategy if etc., etc. … He/she ain’t a commodity!! I call such de-commoditization and relentless pursuit of EXCELLENCE … DWPF/Distinction Worth Paying For!

TGRs on Steroids Big carts = 1.5X Source: Walmart 154

Las Vegas Casino/2X/$B TWO-THIRDS.”
“When Friedman SLIGHTLY CURVED the right angle of an entrance corridor to one property, he was ’” amazed at the percentage who entered increased from ONE-THIRD TO NEARLY TWO-THIRDS.” —Natasha Dow Schull, Addiction By Design: Machine Gambling in Las Vegas

experimentation/failure is “free” (no bad PR, just a few $$)
(1) Amenable to rapid experimentation/failure is “free” (no bad PR, just a few $$) (2) Quick to implement/ Quick to Roll out (3) Inexpensive to implement/Roll out (4) Huge multiplier (5) Product of an “Attitude” (Culture of “Serious Play”) 156

VALUE-ADDED SERVICES ADDED
157 157

“Rolls-Royce now earns MORE from tasks such as managing clients’ overall procurement strategies and maintaining aerospace engines it sells than it does from making them.” —Economist

UPS to UPS

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

UPS = United Problem Solvers* *Service mark

I. LAN Installation Co. (3% local market share) II. Geek Squad
I. LAN Installation Co. (3% local market share) II. Geek Squad. (30% local market share with name change.) III. Acquired by Best Buy. IV. GS FLAGSHIP OF BEST BUY’s WHOLESALE “SOLUTIONS” STRATEGY MAKEOVER. 162 162

Era #1/Obvious Value: “Our ‘it’ works, is delivered on time” (“Close the sale”) 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 164

The Professional Service Firm50: Fifty Ways to Transform Your “Department” into a Professional Service Firm Whose Trademarks are Passion and Innovation! 165

*PSF/ Professional Service Firm (See my …
Training Inc. , a 14-person “business unit”* in a 50-person HR department in a $200M division in a $3B corporation—aiming for Excellence & WOW & Transformational (Internal & External) Client Support! *PSF/ Professional Service Firm (See my … Professional Service Firm 50: Fifty Ways to Transform Your “Department” Into A Professional Service Firm Whose Trademarks Are Passion and Innovation.)

Big Idea: “Corporation” as MEGA-“PSF”. I. e
Big Idea: “Corporation” as MEGA-“PSF”* *I.e., a de facto collection of professional service firms aligned—and integrated—to create value for customers and their ecosystems. 167

“Rolls-Royce now earns MORE from tasks such United Problem Solvers
as managing clients’ overall procurement strategies and maintaining aerospace engines it sells than it does from making them.” —Economist UPS to UPS/ United Problem Solvers

VALUE-ADDED SOCIAL BUSINESS
169 169

“It takes 20 years to build a reputation and 5 minutes to ruin it.”
Welcome to the Age of Social Media “The customer is in complete control of communication.” “What used to be ‘word of mouth’ is now ‘word of mouse.’ You are either creating brand ambassadors or brand terrorists doing brand assassination.” “It takes 20 years to build a reputation and 5 minutes to ruin it.” Source: John DiJulius, The Customer Service Revolution

“I would rather engage in a Twitter conversation with a single customer than see our company attempt to attract the attention of millions in a coveted Super Bowl commercial. Why? Because having people discuss your brand directly with you, actually connecting one-to-one, is far more valuable—not to mention far cheaper!. … “Consumers want to discuss what they like, the companies they support, and the organizations and leaders they resent. They want a community. They want to be heard. “[I]f we engage employees, customers, and prospective customers in meaningful dialogue about their lives, challenges, interests, and concerns, we can build a community of trust, loyalty, and—possibly over time—help them become advocates and champions for the brand.” —Peter Aceto, CEO, Tangerine (from the Foreword to A World Gone Social, by Ted Coine & Mark Babbit) (FYI: See Peter Aceto’s book Weology.)

Going “Social”: Location and Size Independent
“Today, despite the fact that we’re just a little swimming pool company in Virginia, we have the most trafficked swimming pool website in the world. Five years ago, if you’d asked me and my business partners what we do, the answer would have been simple, ‘We build in-ground fiberglass swimming pools.’ Now we say, ‘We are the best teachers … in the world … on the subject of fiberglass swimming pools, and we also happen to build them.’” —Jay Baer, Youtility: Why Smart Marketing Is About Help, Not Hype

11 Rules for Creating Value in the Social Era 1
11 Rules for Creating Value in the Social Era 1. Connections create value. 2. Power in community. 3. Collaboration > Control. 4. Celebrate onlyness (the uniqueness of every person). 5. Allow all talent. 6. Consumers become co-creators. 7. Mistakes can build trust. 8. Learn. Unlearn. (Repeat.) 9. Bank on openness. 10. Social purpose unleashes ownership. 11. (There are no answers.) —Nilofer Merchant, 11 Rules for Creating Value in the Social Era

SM More Powerful Than Nuclear Weapons
SM More Powerful Than Nuclear Weapons??? The Perfect Weapon: War, Sabotage, and Fear in the Cyber Age —David Sanger LikeWar: The Weaponization of Social Media —P.W. Singer and Emerson Brooking War in 140 Characters: How Social Media Is Reshaping Conflict in the Twenty-First Century —David Patrikarakos

VALUE-ADDED WOMEN’S (ENORMOUS) MARKET
175 175

“Women are THE majority market” —Fara Warner/The Power of the Purse
176 176

“Forget CHINA, INDIA and the INTERNET: Economic Growth Is Driven by WOMEN.”
— Headline, Economist W > 2X (C + I) = $28,000,000,000,000 “Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could climb as high as $28 TRILLION in the next five years. Their $13 trillion in total yearly earnings could reach $18 trillion in the same period. IN AGGREGATE, WOMEN REPRESENT A GROWTH MARKET BIGGER THAN CHINA AND INDIA COMBINED—MORE THAN TWICE AS BIG IN FACT. Given those numbers, it would be foolish to ignore or underestimate the female consumer. And yet many companies do just that—even ones that are confidant that they have a winning strategy when it comes to women. …” —Michael Silverstein and Kate Sayre, “The Female Economy,” HBR 177 177

“$22 Trillion in Assets Will Shift to Women by 2020”
—The Street and Investment News (Full title of the article: “$22 Trillion in Assets Will Shift to Women by 2020: Why Men Need to Watch Out”)

Selling to men: THE TRANSACTION MODEL Selling to Women: THE RELATIONAL MODEL Source: Selling to Men, Selling to Women, Jeffery Tobias Halter 179

Editorial/Men: Tables, rankings
Editorial/Men: Tables, rankings. Editorial/Women: “Narratives” that cohere and stir the imagination.* ** *Editor-in-Chief, Redwood Publications (UK) ** High Point: “Imagine the lathe that could have turned that [table] leg!” vs. “This will go well with grandma’s sideboard.”

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

“Women don’t ‘buy’ brands. They ‘join’ them
“Women don’t ‘buy’ brands. They ‘join’ them.” —Faith Popcorn, EVEolution 182 182

Can you pass the … “Squint test” ?
183

Some Suggested Reading
**Marketing to Women: How to Increase Your Share of the World’s Largest Market, by Martha Barletta **The Power of the Purse: How Smart Businesses Are Adapting to the World’s Most Important Consumers, by Fara Warner **Why She Buys: The New Strategy for Reaching the World’s Most Powerful Consumers, by Bridget Brennan (Key word: “World”—this applies literally everywhere) **What Women Want: The Global Market Turns Female Friendly, by Paco Underhill **The Soccer Mom Myth: Today’s Female Consumer, Who She Really Is, Why She Really Buys, by Michele Miller and Holly Buchanan **Influence: How Women’s Soaring Economic Power Will Transform Our World for the Better, by Maddy Dychtwald **The Female Brain, by Louann Brizendine, M.D.

VALUE-ADDED OLDIES (ENORMOUS) MARKET
185 185

7/13 “PEOPLE TURNING 50 TODAY HAVE MORE THAN HALF OF THEIR ADULT LIFE AHEAD OF THEM.” —Bill Novelli, 50+: IGNITING A REVOLUTION TO REINVENT AMERICA 186

“‘Age Power’ will rule the 21st century, and we are woefully unprepared.” —Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old

The 50%-10% “Gap” : “NEW CUSTOMER MAJORITY” Source: Ageless Marketing, David Wolfe & Robert Snyder 188 188

“Marketers’ attempts at reaching those over 50 have been miserably unsuccessful. No market’s motivations and needs are so poorly understood.” —Peter Francese, founding publisher, American Demographics 189

“Baby-boomer Women: The Sweetest of Sweet Spots for Marketers” —David Wolfe and Robert Snyder, Ageless Marketing 190

>50 50% spending 10% marketing budgets

NOT an “Initiative.” Wholesale STRATEGIC realignment.
192

“Marketers” and Oldies (and Women): STUPID. STUPID. STUPID. STUPID
“Marketers” and Oldies (and Women): STUPID! STUPID! STUPID! STUPID! STUPID!

LOSERS AND WINNERS 194 194

AND THE WINNERS AREN’T/ARE
195 195

“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The answer seems obvious … Source: Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics 196 196 196

“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 197 197 197

“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 198 198

“When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs’ Investment Policy Committee, answered: I’M SURE THERE ARE SUCCESS STORIES OUT THERE, BUT AT THIS MOMENT I DRAW A BLANK.” —Mark Sirower, The Synergy Trap 199

the global firm was its claim to be
THE MULTINATIONAL COMPANY IS IN TROUBLE “Multinational companies, the agents behind global integration, were in retreat well before the populist revolt of Their financial performance has slipped so that they are no longer outstripping local firms. Many seem to have exhausted their ability to cut costs and taxes and to out-think their local competitors. … Central to the rise of the global firm was its claim to be a superior moneymaking machine. That claim lies in tatters.” Source: The Economist (28 January 2017/cover story): “The Multinational Company Is in Trouble”

Joseph Bower (and Lynn Paine) on the globally destructive perils of “maximizing shareholder value” and failing to manage for the long term: “The Error at the Heart of Corporate Leadership” “Managing for the long term”: Long>>>Short Revenue Earnings per share Profit Market capitalization Job creation Source: HBR/May-June 2017/COVER

AND THE WINNERS AREN’T/ARE
202 202

SME MASTERS OF EXCELLENCE Jim Penman Jim’s Group Jungle Jim Bonaminio Jungle Jim’s International Market Vernon Hill Commerce Bank/Metro Bank

Jim’s Dog Wash Jim’s Mowing Canada Jim’s Mowing UK Jim’s Antennas
Jim’s Bookkeeping Jim’s Building Maintenance Jim’s Carpet Cleaning Jim’s Car Cleaning Jim’s Computer Services Jim’s Dog Wash Jim’s Driving School Jim’s Fencing Jim’s Floors Jim’s Painting Jim’s Paving Jim’s Pergolas [gazebos] Jim’s Pool Care Jim’s Pressure Cleaning Jim’s Roofing Jim’s Security Doors Jim’s Trees Jim’s Window Cleaning Jim’s Windscreens Source: Jim Penman, What Will They Franchise Next? The Story of Jim’s Group 204 204

Retail Superstars: Inside the 25 Best Independent Stores in America —by George Whalin
205 205

1,400 varieties of hot sauce—not to mention 12,000
JUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OH: “An adventure in what Jungle Jim calls ‘shoppertainment’ begins in the parking lot and goes on to 1,600 cheeses and 1,400 varieties of hot sauce—not to mention 12,000 wines priced from $8-$8,000 a bottle; all this is brought to you by 4,000 vendors. Customers from every corner of the globe.” Source: George Whalin, Retail Superstars: Inside the 25 Best Independent Stores in America

JUNGLE JIM’S/“Shoppertainment”: “The props can also be a bit bizarre
JUNGLE JIM’S/“Shoppertainment”: “The props can also be a bit bizarre. Two men’s and women’s Porta Potties situated in the front area of the store look as though they belong on a construction site rather than in a food store. But they are false fronts, and once through the doors, customers find themselves in beautifully appointed restrooms. These creative facilities were recognized as … ‘AMERICA’S BEST RESTROOM’ … in the Sixth Annual competition sponsored by Cintas Corporation, a supplier of restroom cleaning and hygiene products. …” From: Retail Superstars: Inside the 25 Best Independent Stores in America, George Whalin

“BE THE BEST. IT’S THE ONLY MARKET THAT’S NOT CROWDED.”
208 208

MITTELSTAND* *“agile creatures darting between the legs of the multinational monsters” (Bloomberg BusinessWeek) 210

Hidden Champions* of the 21st Century: Success Secrets of Unknown World Market Leaders/ Hermann Simon (*1, 2, or 3 in world market; <$4B; low public awareness) Baader (Iceland/80% fish-processing systems) Gallagher (NZ/electric fences) W.E.T. (heated car seat tech) Gerriets (theater curtains and stage equipment) Electro-Nite (sensors for the steel industry) Essel Propack (India/tooth paste tubes) SGS (product auditing and certification) DELO (specialty adhesives) Amorim (Portugal/cork products) EOS (laser sintering) Beluga (heavy-lift shipping) Omicron (tunnel-grid microscopy) Universo (wristwatch hands) Dickson Constant (technical textiles) O.C. Tanner (employee recognition/$400M) Hoeganaes (powder metallurgy supplies)

“Wicked problems”

A FEW LEADERSHIP TIPS 214 214

MBWA 215 215

(Managing By Wandering Around)
MBWA (Managing By Wandering Around) 216

“I’m always stopping by our stores— at least 25 a week
“I’m always stopping by our stores— at least 25 a week. I’m also in other places: Home Depot, Whole Foods, Crate & Barrel. I try to be a sponge to pick up as much as I can.” —Howard Schultz Source: Fortune, “Secrets of Greatness” 217

Golden Bay (NZ) Revelation You do MBWA because it’s …

… FUN!

“Tom, you left out the #1 thing … Leaders enjoy leading!”
220

50%! 221 221

time I would say as much as 50% un-scheduled.
“Most managers spend a great deal of time thinking about what they plan to do, but relatively little time thinking about what they plan not to do. As a result, they become so caught up … in fighting the fires of the moment That they cannot really attend to the long-term threats and risks facing the organization. So the first soft skill of leadership the hard way is to cultivate the perspective of Marcus Aurelius: avoid busyness, free up your time, stay focused on what really matters. Let me put it bluntly: every leader should routinely keep a substantial portion of his or her time I would say as much as 50% un-scheduled. … Only when you have substantial ‘slop’ in your schedule—unscheduled time—will you have the space to reflect on what you are doing, learn from experience, and recover from your inevitable mistakes. Leaders without such free time end up tackling issues only when there is an immediate or visible problem. Managers’ typical response to my argument about free time is, ‘That’s all well and good, but there are things I have to do.’ Yet we waste so much time in unproductive activity—it takes an enormous effort on the part of the leader to keep free time for the truly important things.” —Dov Frohman , Leadership The Hard Way (Chapter 5, “The Soft Skills Of Hard Leadership”) 222

LUNCH! 223 223

*Cross-Functional Excellence/Key #1 to Implementation & Innovation
XFX = #1* *Cross-Functional Excellence/Key #1 to Implementation & Innovation 224 224

LUNCH > SAP/ ORACLE 225

The 220 Rule* NEVER WASTE A LUNCH! *Measure it! 226 226

Loser: “He’s such a suck-up!” Winner: “He’s such a suck-down.”
227

“Success doesn’t depend on the number of people you know; it depends on the number of people you know in high places!” or “Success doesn’t depend on the number of people you know; it depends on the number of people you know in low places!” 228

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

ENTERPRISE CORE VALUE #1

Source: Jerome Groopman, How Doctors Think
“The doctor interrupts after 18 … Source: Jerome Groopman, How Doctors Think 231 231

*Are you an “18-second manager”?
18 … seconds!* *Are you an “18-second manager”? 232 232

(An obsession with) Listening is ... the ultimate mark of Respect.
Listening is ... the heart and soul of Engagement. Listening is ... the heart and soul of Kindness. Listening is ... the heart and soul of Thoughtfulness. Listening is ... the basis for true Collaboration. Listening is ... the basis for true Partnership. Listening is ... a Team Sport. Listening is ... a Developable Individual Skill.* (*Though women are far better at it than men.) Listening is ... the basis for Community. Listening is ... the bedrock of Joint Ventures that work. Listening is ... the bedrock of Joint Ventures that grow. Listening is ... the core of effective Cross-functional Communication* (*Which is in turn Attribute #1 of organization effectiveness.) 233

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

Suggested Enterprise Core Value #1: “We are Effective Listeners—we treat LISTENING EXCELLENCE as the Centerpiece of our Commitment to Respect and Engagement and Community and Growth.” 235 235

is notetaking—he has hundreds of notebooks.)
Part ONE: LISTEN* (pp11-116, of 364) *“The key to every one of our (eight) leadership attributes was the vital importance of a leader’s ability to listen.” (One of Branson’s personal keys to listening is notetaking—he has hundreds of notebooks.) Source: Richard Branson, The Virgin Way: How to Listen, Learn, Laugh, and Lead

ACKNOWLEDGEMENT!

“The deepest principle in human nature is the craving to be appreciated.” —William James “Employees who don't feel significant rarely make significant contributions.” —Mark Sanborn 238

THE FOUR MOST IMPORTANT WORDS IN ANY ORGANIZATION ARE … “WHAT
DO YOU THINK?” Source: courtesy Dave Wheeler, posted at tompeters.com 239 239

“LITTLE” >>> “BIG”. (. Again
“LITTLE” >>> “BIG”* (*Again!!!) CEO Doug Conant sent 30,000 HANDWRITTEN ‘THANK YOU’ NOTES to employees during the 10 years (approx 15/work day) he ran Campbell Soup. Source: Bloomberg BusinessWeek

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

STRENGTHS VS. WEAKNESSES
242 242

“A man should never be promoted to a managerial position if his vision focuses on people’s weaknesses rather than on their strengths.” —Peter Drucker, The Practice of Management 243 243

THE LEADER IS TO BLAME 100% OF THE TIME!
244 244

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

Leaders: Communications failure …

100%* *Your fault!

THE RULE OF = 14

SLOW DOWN!

Speed. NOT Excellence Thinking Culture Listening Relationships

STRATEGIC ACTIVITIES—THAT UNDERPIN BOTH PERSONAL
AND ORGANIZATIONAL SUCCESS AND EXCELLENCE— WHICH CANNOT BE ACCOMPLISHED IN A FLASH: *BUILDING/MAINTAINING RELATIONSHIPS … take time. *RECRUITING ALLIES TO YOUR CAUSE … takes time. *BUILDING/MAINTAINING A HIGH-PERFORMANCE CULTURE … takes time. *READING/STUDYING … take time. *FIERCE/AGGRESSIVE LISTENING … takes (lots of!) time. *PRACTICE & PREP FOR ANYTHING & EVERYTHING … takes time. *MBWA/MANAGING BY WANDERING AROUND … takes time. *SLACK IN YOUR SCHEDULE … takes time. *HIRING/EVALUATING/PROMOTING … take time. *THOUGHTFULNESS/INSTINCTIVE SMALL GESTURES (SMALL>>BIG) … take time. *EXTREME HUMANIZATION/RADICAL HUMANIZATION … takes time. *GAMECHANGING DESIGN (spending “hours and hours discussing corners”) … takes time. *YOUR NEXT … takes time. *“THE LAST 1%” OF ANY TASK OR PROJECT … takes time. *E-X-C-E-L-L-E-N-C-E … takes time!!!

pick the #1 failing of CEOs, it’s that …
“If I had to pick the #1 failing of CEOs, it’s that …

“If I had to pick the #1 failing of CEOs, it’s that … they don’t read enough.”

EXCELLENCE 254 254

EXCELLENCE = THE NEXT FIVE MINUTES
255 255

EXCELLENCE is not a “long-term” "aspiration.”
EXCELLENCE is the ultimate short-term strategy. EXCELLENCE is … THE NEXT 5 MINUTES.* (*Or NOT.) 256

EXCELLENCE is not an "aspiration."
EXCELLENCE is … THE NEXT FIVE MINUTES. EXCELLENCE is your next conversation. Or not. EXCELLENCE is your next meeting. EXCELLENCE is shutting up and listening—really listening. EXCELLENCE is your next 5-line . EXCELLENCE is saying “Thank you” for something “small.” EXCELLENCE is the next time you shoulder responsibility and apologize. EXCELLENCE is waaay over-reacting to a screw-up. EXCELLENCE is the flowers you brought to work today. EXCELLENCE is lending a hand to an “outsider” who’s fallen behind schedule. EXCELLENCE is bothering to learn the way folks in finance (or IS or HR) think. EXCELLENCE is waaay “over”-preparing for a 3-minute presentation. EXCELLENCE is turning “insignificant” tasks into models of … EXCELLENCE. 257

MODERATION. NOT. 258 258

MANTRA 2019 AVOID MODERATION!

Kevin Roberts’ Credo 1. Ready. Fire. Aim. 2. If it ain’t broke
Kevin Roberts’ Credo 1. Ready. Fire! Aim. 2. If it ain’t broke ... Break it! 3. Hire crazies. 4. Ask dumb questions. 5. Pursue failure. 6. Lead, follow ... or get out of the way! 7. Spread confusion. 8. Ditch your office. 9. Read odd stuff AVOID MODERATION! 260 260

EIGHTEEN NUMBER ONES 261 261

The Excellence Dividend (in One Slide [Sorta]): THE EIGHTEEN “NUMBER ONES”
262 262

*Investment #1: TRAINING *Asset #1: PORTFOLIO OF FIRST-LINE MANAGERS
The Excellence Dividend: THE EIGHTEEN “NUMBER ONES” *Investment #1: TRAINING *Asset #1: PORTFOLIO OF FIRST-LINE MANAGERS *Core Value #1: LISTENING EXCELLENCE!!! *Job #1: ESTABLISHING/MAINTAINING “60/60/24/7/365” A CULTURE OF EXCELLENCE-BY-PUTTING-PEOPLE-REALLY-FIRST *Calling #1: LEADING IS A HUMAN-POTENTIAL-MAXIMIZATION ACTIVITY—THERE IS NO HIGHER CALLING. *Value-Added Strategy #1: DESIGN EXCELLENCE/RADICAL HUMANIZATION *Success Credo #1: “ARE YOU GOING TO COST CUT YOUR WAY TO PROSPERITY? OR ARE YOU GOING TO SPEND YOUR WAY TO PROSPERITY?” “OVER-INVEST IN OUR PEOPLE, OVER-INVEST IN OUR FACILITIES.” “COST CUTTING IS A DEATH SPIRAL. OUR WHOLE STORY IS GROWING REVENUE.” (Metro Bank/Commerce Bank) *Organization Effectiveness/$$$$ Payoff #1: WOMEN BUY EVERYTHING. WOMEN HAVE ALL THE MONEY. WOMEN ARE BETTER LEADERS *Missed Opportunity #1: OLDIES/RICH, MEGA-NUMEROUS, IGNORED —PLENTY OF TIME LEFT *Economic Cornerstone #1: SMEs RULE/“BE THE BEST, IT’S THE ONLY MARKET THAT’S NOT CROWDED” *Innovation Strategy #1: WTTMSW/WHOEVER TRIES THE MOST STUFF WINS. WTTMS(ASTMSUTF)W/WHOEVER TRIES THE MOST STUFF (AND SCREWS THE MOST STUFF UP THE FASTEST) WINS *Personal Habit #1: READ. READ. READ. READ. READ. *Time Management Must #1: SLOW DOWN *Making Things Happen Dictate #1: LUNCH!!! *Daily Activity #1: MBWA/MANAGING BY WANDERING AROUND *Commandment #1: EXCELLENCE IS THE NEXT FIVE MINUTES *Axiom #1: HARD (NUMBERS, PLANS, ORG CHARTS) IS SOFT. SOFT (RELATIONSHIPS, CULTURE, LISTENING, EXCELLENCE) IS HARD.

The Excellence Dividend
THE EIGHTEEN “NUMBER ONES” *Investment #1: TRAINING (“Radical personal development” for all = Moral Responsibility = Immeasurable longterm strategic-differentiation opportunity = $$$$$. 10X more important in the Age of AI.) *Asset #1: PORTFOLIO OF FIRST-LINE MANAGERS (Key #1 to employee productivity/retention/product-service quality/customer fan-hood. Selection/training/mentoring of 1st-line chiefs a strategic priority.) *Core Value #1: LISTENING EXCELLENCE!!! (“Fierce listening”/“Aggressive listening” to staff, outsiders. Note: Effective listening is time-consuming/exhausting! Effective listening is train-able!) (Branson: Listening is Leadership Key #1.) *Obsession #1: EXECUTION/“THE LAST 95%” (Omar Bradley: “Amateurs talk about strategy. Professionals talk about logistics.” Fred Malek: “Execution is strategy.” Conrad Hilton Secret #1: “Don’t forget to tuck the shower curtain into the bathtub.”) *Job #1: ESTABLISHING/MAINTAINING “60/60/24/7/365” A CULTURE OF EXCELLENCE-BY-PUTTING-PEOPLE-REALLY-FIRST (Plausible/Profitable/ Ennobling: No less than a “joyful” workplace!!!!/FYI: “PEOPLE (REALLY] FIRST” = CUSTOMERS FIRST = $$$$ = SOCIETAL CONTRIBUTION.) (Branson: “Business has to give people enriching rewarding lives, or it’s not worth doing.” DeJulius: “Your customers will never be happier than your employees.”) *Calling #1: LEADING IS A HUMAN-POTENTIAL-MAXIMIZATION ACTIVITY—THERE IS NO HIGHER CALLING. Any leader absolutely has the opportunity to dramatically affect the lives of thousands—far more than any surgeon. *Value-Added Strategy #1: DESIGN EXCELLENCE/RADICAL HUMANIZATION (Apple: “Steve and Jony spent hours discussing corners.” Review of MINI Cooper S: “No vehicle in recent memory has provoked more smiles.”/Metro Bank: A jillion little touches, e.g., dog biscuits, scintillating branches, and wonderfully welcoming staff./Healthcare: Human kindness in its delivery promotes healing./DesignX and RadHumanization by and large beyond the foreseeable reach of AI) (And a great-legacy.) *Success Credo #1: “ARE YOU GOING TO COST CUT YOUR WAY TO PROSPERITY? OR ARE YOU GOING TO SPEND YOUR WAY TO PROSPERITY?” “OVER-INVEST IN OUR PEOPLE, OVER-INVEST IN OUR FACILITIES.” “COST CUTTING IS A DEATH SPIRAL. OUR WHOLE STORY IS GROWING REVENUE.” (Metro Bank/Commerce Bank mantra/hyper-contrarian consumer banking mega-success USA/UK.) *Organization Effectiveness/$$$$ Payoff #1: WOMEN BUY EVERYTHING (Consumer/ Commercial) WOMEN HAVE ALL THE MONEY (Another $22 trillion wealth transfer to women in the next 5 years) WOMEN ARE BETTER LEADERS (Solid research on this: E.g., F>M in 12 of 16 key leadership traits per Harvard Business Review/50-50 MF Boards = Plus 58% profitability per McKinsey. SO WHAT’S YOUR LEADERSHIP TEAM AND PRODUCT DEVELOPMENT TEAM F-M COMPOSITION????) *Missed Opportunity #1: OLDIES/RICH, MEGA-NUMEROUS, IGNORED—PLENTY OF TIME LEFT (“People at 50 have more than half their adult life ahead of them”—e.g., Americans buy 13 cars in a lifetime, 7 after age 50. Household net worth 65 plus is 47X > 35 minus. “Marketers attempts at reaching those over 50 have been miserably unsuccessful.”) *Economic Cornerstone #1: SMEs RULE/“BE THE BEST, IT’S THE ONLY MARKET THAT’S NOT CROWDED” (SMEs/Small and Medium-size Enterprises create the jobs, employ almost all of us, are the prime innovators—every economy’s backbone. Monster-size businesses cut costs, dump people over the side, underperform the market.) *Innovation Strategy #1: WTTMSW/WHOEVER TRIES THE MOST STUFF WINS Extended: WTTMS(ASTMSUTF)W/WHOEVER TRIES THE MOST STUFF (AND SCREWS THE MOST STUFFUP THE FASTEST) WINS (Innovation guaranteed!!!/But requires supportive culture: “Try it. NOW.” “Fail Forward. Fast” “Reward excellent failures. Punish mediocre successes.” Wayne Gretzky: “You miss 100% of the shots you never take.”) *Personal Habit #1: READ. READ. READ. READ. READ. (Investor superstar: Not reading enough = CEO Deficit #1.) *Time Management Must #1: SLOW DOWN (All the important things—relationship building and maintenance, culture maintenance, aggressive listening, Excellence—take time, lots of.) *Making Things Happen Dictate #1: LUNCH!!! (The “Sacred 225 At Bats” = 225 Lunch Opportunities/Year = 225 Golden-Never-to-Be-Repeated Opportunities to meet new people, learn new things, establish and cement relationships up/down the organization and way beyond. LUNCH = NETWORKING OPPORTUNITY #1. Do NOT waste a single lunch opportunity/Keep score!) *Daily Activity #1: MBWA/MANAGING BY WANDERING AROUND (Daily. Daily = EVERY DAY. No excuses. Ever./And: If you don’t LOVE doing regular MBWA, choose another career!!!) *Commandment #1: EXCELLENCE IS THE NEXT FIVE MINUTES (Excellence = ULTIMATE SHORT-TERM STRATEGY = Next /Chance hallway meeting/Saying “Thank you” for something small/Lending a helping hand for a half-hour when you’re busy …) *Axiom #1: HARD (NUMBERS, PLANS, ORG CHARTS) IS SOFT. SOFT (RELATIONSHIPS, CULTURE, LISTENING, EXCELLENCE) IS HARD. Sustaining winners: THE MIS-NAMED “SOFT STUFF” COMES F-I-R-S-T!!!!!!

THE EIGHTEEN “NUMBER ONES”*
The Excellence Dividend THE EIGHTEEN “NUMBER ONES”* *Investment #1: TRAINING (“Radical personal development” for all = Moral Responsibility = Immeasurable longterm strategic-differentiation opportunity = $$$$$. 10X more important in the Age of AI.) *Asset #1: PORTFOLIO OF FIRST-LINE MANAGERS (Key #1 to employee productivity/retention/product-service quality/ customer fan-hood. Selection/training/mentoring of 1st-line chiefs a strategic priority.) *Core Value #1: LISTENING EXCELLENCE!!! (“Fierce listening”/ “Aggressive listening” to staff, outsiders. Note: Effective listening is time-consuming/exhausting! Effective listening is train-able!) (Branson: Listening is Leadership Key #1.) *Obsession #1: EXECUTION/“THE LAST 95%” (General Omar Bradley: “Amateurs talk about strategy. Professionals talk about logistics.” Fred Malek: “Execution is strategy.” Conrad Hilton Secret #1: “Don’t forget to tuck the shower curtain into the bathtub.”) *Okay, a single slide was unreadable—herewith, larger type

THE EIGHTEEN “NUMBER ONES” *Job #1: ESTABLISHING/MAINTAINING “60/60/24/7/365” A CULTURE OF EXCELLENCE-BY-PUTTING-PEOPLE-REALLY-FIRST (Plausible/ Profitable/Ennobling: No less than a “joyful” workplace!!!!/FYI: “PEOPLE (REALLY] FIRST” = CUSTOMERS FIRST = $$$$ = SOCIETAL CONTRIBUTION.) (Branson: “Business has to give people enriching rewarding lives, or it’s not worth doing.” DeJulius: “Your customers will never be happier than your employees.”) *Calling #1: LEADING IS A HUMAN-POTENTIAL-MAXIMIZATION ACTIVITY—THERE IS NO HIGHER CALLING. Any leader absolutely has the opportunity to dramatically affect the lives of thousands—far more than any surgeon. *Value-Added Strategy #1: DESIGN EXCELLENCE/RADICAL HUMANIZATION (Apple: “Steve and Jony spent hours discussing corners.” Review of MINI Cooper S: “No vehicle in recent memory has provoked more smiles.”/Metro Bank: A jillion little touches, e.g., dog biscuits, scintillating branches, and wonderfully welcoming staff./Healthcare: Human kindness in its delivery promotes healing./DesignX and RadHumanization are by and large beyond the foreseeable reach of AI.) (And a great legacy.)

THE EIGHTEEN “NUMBER ONES” *Success Credo #1: “ARE YOU GOING TO COST CUT YOUR WAY TO PROSPERITY? OR ARE YOU GOING TO SPEND YOUR WAY TO PROSPERITY?” “OVER-INVEST IN OUR PEOPLE, OVER-INVEST IN OUR FACILITIES.” “COST CUTTING IS A DEATH SPIRAL. OUR WHOLE STORY IS GROWING REVENUE.” (Metro Bank/Commerce Bank mantra/hyper-contrarian consumer banking mega-success USA/UK.) *Organization Effectiveness/$$$$ Payoff #1: WOMEN BUY EVERYTHING (Consumer/ Commercial) WOMEN HAVE ALL THE MONEY (Another $22 trillion wealth transfer to women in the next 5 years/USA) WOMEN ARE BETTER LEADERS (Solid research on this: E.g., F>M in 12 of 16 key leadership traits per Harvard Business Review/50-50 MF Boards = Plus 58% profitability per McKinsey. SO WHAT’S YOUR LEADERSHIP TEAM AND PRODUCT DEVELOPMENT TEAM F-M COMPOSITION????) *Missed Opportunity #1: OLDIES/RICH, MEGA-NUMEROUS, IGNORED—PLENTY OF TIME LEFT (“People at 50 have more than half their adult life ahead of them”—e.g., Americans buy 13 cars in a lifetime, 7 after age 50. Household net worth 65 plus is 47X > 35 minus. “Marketers attempts at reaching those over 50 have been miserably unsuccessful.”)

THE EIGHTEEN “NUMBER ONES” *Economic Cornerstone #1: SMEs RULE/“BE THE BEST, IT’S THE ONLY MARKET THAT’S NOT CROWDED” (SMEs/Small and Medium-size Enterprises create the jobs, employ almost all of us, are the prime innovators—every economy’s backbone. Monsters cut costs, dump people over the side, underperform the market.) *Innovation Strategy #1: WTTMSW/WHOEVER TRIES THE MOST STUFF WINS Extended: WTTMS(ASTMSUTF)W/WHOEVER TRIES THE MOST STUFF (AND SCREWS THE MOST STUFF UP THE FASTEST) WINS (Innovation guaranteed!!!/But requires supportive culture: “Try it. NOW.” “Fail Forward. Fast.” “Reward excellent failures. Punish mediocre successes.” Wayne Gretzky: “You miss 100% of the shots you never take.”) *Personal Habit #1: READ. READ. READ. READ. READ. (Investor superstar: Not reading enough = CEO Deficit #1.) *Time Management Must #1: SLOW DOWN (All the important things—relationship building and maintenance, culture maintenance, aggressive listening, Excellence—take time, lots of.)

THE EIGHTEEN “NUMBER ONES” *Making Things Happen Dictate #1: LUNCH!!! (The “Sacred 225 At Bats” = 225 Lunch Opportunities/Year = 225 Golden-Never-to-Be-Repeated Opportunities to meet new people, learn new things, establish and cement relationships up/down the organization and way beyond. LUNCH = NETWORKING OPPORTUNITY #1. Do NOT waste a single lunch opportunity/Keep score!) *Daily Activity #1: MBWA/MANAGING BY WANDERING AROUND (Daily. Daily = EVERY DAY. No excuses. Ever./And: If you don’t LOVE doing regular MBWA, choose another career!!!) *Commandment #1: EXCELLENCE IS THE NEXT FIVE MINUTES (Excellence = ULTIMATE SHORT-TERM STRATEGY = Next /Chance hallway meeting/Saying “Thank you” for something small/Lending a helping hand for a half-hour when you’re busy …) *Axiom #1: HARD (NUMBERS, PLANS, ORG CHARTS) IS SOFT. SOFT (RELATIONSHIPS, CULTURE, LISTENING,, EXCELLENCE) IS HARD. Sustaining winners: THE MIS-NAMED “SOFT STUFF” COMES F-I-R-S-T!!!!!!

Excellence 2019 Tom Peters Auckland Business School/AIM Western Australia Auckland/Perth/February-March 2019 (This presentation/10+ years of presentation.

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Excellence 2019 Tom Peters Auckland Business School/AIM Western Australia Auckland/Perth/February-March 2019 (This presentation/10+ years of presentation.

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