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Tom Peters’ EXCELLENCE. ALWAYS. Mexico D.F./0410.08

tompeters.com Slides at … tompeters.com

Welcome to Tom Peters “PowerPoint World”! Beyond the set of slides here, you will find at tompeters.com the last eight years of presentations, a basketful of “Special Presentations,” and, above all, Tom’s constantly updated Master Presentation—from which most of the slides in this presentation are drawn. There are about 3,500 slides in the 7-part “Master Presentation.” The first five “chapters” constitute the main argument: Part I is context. Part II is devoted entirely to innovation—the sine qua non, as perhaps never before, of survival. In earlier incarnations of the “master,” “innovation” “stuff” was scattered throughout the presentation— now it is front and center and a stand-alone. Part III is a variation on the innovation theme—but it is organized to examine the imperative (for most everyone in the developed-emerging world) of an ultra high value-added strategy. A “value-added ladder” (the “ladder” configuration lifted with gratitude from Joe Pine and Jim Gilmore’s Experience Economy) lays out a specific logic for necessarily leaving commodity-like goods and services in the dust. Part IV argues that in this age of “micro-marketing” there are two macro-markets of astounding size that are dramatically under- attended by all but a few; namely women and boomers-geezers. Part V underpins the overall argument with the necessary bedrock—Talent, with brief consideration of Education & Healthcare. Part VI examines Leadership for turbulent times from several angles. Part VII is a collection of a dozen Lists—such as Tom’s “Irreducible 209,” 209 “things I’ve learned along the way.” Enjoy! Download! “Steal”—that’s the whole point!

“We Have … Thank you, Starbucks!

Sports: You beat yourself!

Speech: You beat yourself!

Internal organizational excellence* ** = Deepest “Blue Ocean”

*A “Blue ocean” is by definition very profitable … and will be quickly copied. “sustainable blue” (Internal organizational excellence) is far more difficult to copy.

**Internal organizational excellence = “Brand inside”

B(I) > B(O)

part 1

Excellence: The Leadership 50

bedrock.

1. Leaders … serve.

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

The Basic Mechanism.

2. Leadership Is a … Mutual Discovery Process.

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

Organizing Genius / Warren Bennis and Patricia Ward Biederman “Groups become great only when everyone in them, leaders and members alike, is free to do his or her absolute best.” “The best thing a leader can do for a Great Group is to allow its members to discover their greatness.”

Leaders’ “Mt Everest Test” “free to do his or her absolute best” … “allow its members to discover their greatness.”

The Dream Manager —Matthew Kelly E.g.: “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.”

Quests!Quests!Quests!Quests!

Cause (worthy of commitment) Space (room for/encouragement for initiative) Decency (respect, humane)

Cause (worthy of commitment) Space (room for/encouragement for initiative-adventures) Decency (respect, grace, integrity, humane) service (worthy of our clients’ & extended family’s continuing custom) excellence (period)

Cause (worthy of commitment) Space (room for/encouragement for initiative-adventures) Decency (respect, grace, integrity, humane) service (worthy of our clients’ & extended family’s continuing custom) excellence (period) servant leadership

Cause Space Decency service excellence servant leadership

“ I have always believed that the purpose of the corporation is to be a blessing to the employees.” * —Boyd Clarke *TP: An “organization” is, in fact and after all is said and done, a/the “house” in which most of us “live” most of the time. is said and done, a/the “house” in which most of us “live” most of the time.

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

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

… 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.

Internal organizational excellence* ** = Deepest “Blue Ocean”

*A “Blue ocean” is by definition very profitable … and will be quickly copied. “sustainable blue” (Internal organizational excellence) is far more difficult to copy.

**Internal organizational excellence = “Brand inside”

B(I) > B(O)

[Yet] I came to see in my time at IBM that culture isn’t just one aspect of the game—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

The Leadership Types.

3. Great Leaders on White Horses Are Important – but Great Talent Developers (Type I Leadership) are the Bedrock of Organizations that Perform Over the Long Haul.

Jack didn’t have a vision! Whoops: Jack didn’t have a vision!

4. But There Are Times When the “visionary” “Type” (Type II Leadership) Matters!

“A leader is a dealer in hope.” —Napoleon

5. Find the “Businesspeople”! (Type III Leadership)

I.P.M. (Inspired Profit Mechanic)

6. All Organizations Need … the Golden Leadership Triangle.

The Golden Leadership Triangle: (1) Talent Fanatic … (2) Visionary … (3) Inspired Profit Mechanic.

7. Leadership Mantra #1: IT ALL DEPENDS!

Renaissance Men are … a snare, a myth, a delusion!

8. The Leader Is Rarely/ Never the Best Performer.

The Leadership Dance.

9. Leaders … SHOW UP!

“A body can pretend to care, but they can’t pretend to be there.” — Texas Bix Bender

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

10. Leaders … LOVE the MESS!

If things seem under control, you’re just not going fast enough.” —Mario Andretti “ If things seem under control, you’re just not going fast enough.” —Mario Andretti

11. Leaders DO!

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

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

12. Leaders Re -do.

Phil Crosby is an idiot!

“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

13. BUT … Leaders Know When to Wait.

Tex Schramm: The “too hard” box!

14. Leaders Are … Optimists.

Hackneyed but none the less true: LEADERS SEE CUPS AS “HALF FULL.”

Half-full Cups: “[Ronald Reagan] radiated an almost transcendent happiness.” —Lou Cannon

15. Leaders FOCUS!

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

“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

“The one thing you need to know about sustained individual success: Discover what you don’t like doing and stop doing it.” “The one thing you need to know about sustained individual success: Discover what you don’t like doing and stop doing it.” —Marcus Buckingham, The One Thing You Need to Know

16. Leaders … Send V-E-R-Y Clear Signals About What’s Important!

“Really Important Stuff”: Roger’s Rule of Three!

Danger: S.I.O. (Strategic Initiative Overload)

If It Ain’t Broke … Break It.

17. Leaders … FORGET!/ Leaders … DESTROY!

Forget>“Learn” “The problem is never how to get new, innovative thoughts into your mind, —Dee Hock Forget>“Learn” “The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.” —Dee Hock

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

18. BUT … Leaders Have to Deliver, So They Worry About “Throwing the Baby Out with the Bathwater.”

“Damned If You Do, Damned If You Don’t, Just Plain Damned.” Subtitle in the chapter, “Own Up to the Great Paradox: Success Is the Product of Deep Grooves/ Deep Grooves Destroy Adaptivity,” Liberation Management (1992)

19. Leaders … HONOR THE USURPERS.

Saviors-in-Waiting Disgruntled Customers Upstart Competitors Rogue Employees Fringe Suppliers Source: Wayne Burkan, Wide Angle Vision

20. Leaders Make [Lots of] Mistakes – and MAKE NO BONES ABOUT IT!

“ Fail faster. Succeed sooner.” —David Kelley/IDEO

21. Leaders Make … BIG MISTAKES!

“ Reward excellent failures. Punish mediocre successes.” —Phil Daniels

Create.

22. Leaders Know that THERE’S MORE TO LIFE THAN “LINE EXTENSIONS.” Leaders Love to … CREATE NEW MARKETS.

“Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” —Peter Job, CEO, Reuters

YESBANK* *Commerce Bank

23. Leaders … Make Their Mark / Leaders … Do Stuff That Matters

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

24. Leaders Push Their Organizations … W-a-y Up the Value- added Chain.

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

“Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Corporate America” “Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Corporate America” —Headline/BW/2004

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

25. Leaders Push Past Service “Transactions” to … Scintillating Experiences.

“ 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

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

26. Leaders LOVE the New Technology!

Power Tools For Power Strategies/ ARD 40K

27. Needed? Type IV Leadership: Technology Dreamer-True Believer

The Golden Leadership Quadrangle: (1) Talent Fanatic … (2) Visionary … (3) Inspired Profit Mechanic … (4) Technology Dreamer- True Believer.

Talent.

28. Leaders … DO TALENT!

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

Brand = Talent.

29. When It Comes to TALENT … Leaders Always Go Berserk!

From “1, 2 or you’re out” [JW] to … “Best Talent in each industry segment to build best proprietary intangibles” [EM] Source: Ed Michaels, War for Talent

30. Leaders Listen. Leaders Consult.

The “One line of code” Theorem: All we-“they”- me want is (1) to be consulted, (2) to be taken seriously, (3) a tiny show of appreciation

Passion.

31. Leaders … “Sell” PASSION!

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

32. Leaders Know: ENTHUSIASM BEGETS ENTHUSIASM!

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

BZ: “I am a … Dispenser of Enthusiasm!”

33. Leaders Are … in a Hurry

“We don’t sell insurance anymore. We sell speed.” Peter Lewis, Progressive

“Metabolic Management”

34. Leaders Focus on the SOFT STUFF!

“ Hard” is “soft.” “Soft” Is “hard.”

Message: Leadership is all about love! [Passion, Enthusiasms, Appetite for Life, Engagement, Commitment, Great Causes & Determination to Make a Damn Difference, Shared Adventures, Bizarre Failures, Growth, Insatiable Appetite for Change.]

The “Job” of Leading.

35. Leaders Know It’s ALL SALES ALL THE TIME.

If you don’t LOVE SALES … find another life. (Don’t pretend you’re a “leader.”)

36. Leaders LOVE “POLITICS.”

If you don’t LOVE POLITICS … find another life. (Don’t pretend you’re a “leader.”)

All success is a Matter of implementation. All implementation is a matter of politics.

37. But … Leaders Also Break a Lot of China.

Characteristics of the “Also rans”* “Minimize risk” “Respect the chain of command” “Support the boss” “Make budget” *Fortune, “Most Admired Global Corporations”

38. Leaders Give … RESPECT!

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

“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.” Source: Sara Lawrence-Lightfoot, Respect

39. Leaders Say “ Thank You.”

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

40. Leaders Are … Curious.

The Three Most Important Letters … WHY?

41. Leadership Is a … Performance.

“It is necessary for the President to be the nation’s No. 1 actor.” FDR

42. Leaders … Are The Brand

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

43. Leaders … Have a GREAT STORY!

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

Leader Job 1 Paint Portraits of Excellence !

Introspection.

44. Leaders … Enjoy Leading.

“Tom, you left out one thing …”

45. Leaders LAUGH!

46. Leaders … KNOW THEMSELVES.

Individuals (would-be leaders) cannot engage in a liberating mutual discovery process unless they are comfortable with their own skin. (“Leaders” who are not comfortable with themselves become petty control freaks.)

Questions: What do others think of you? [Are you sure?] What do you think of you? [Are you sure?] What is your impact on others? [Are you sure?] What is your impact on others? [Are you sure?] What is your impact on others? [Are you sure?] What are the “little things” you (perhaps unconsciously) do that cause people to shrivel—or blossom? [Are you sure?] What do you want? [Are you sure?] Are you aware of your changing moods? [Are you sure?] How fragile is your ego? [Are you sure?] Do you have a true confidant? [Are you sure?] Do you perform brief or not-so-brief self-assessments? Do you talk too much? [Are you sure?] Do you know how to listen? [Are you sure?] Do you listen? [Are you sure?] What is your style of “hashing things out”? Are you perceived as (a) arrogant, (b) abrasive (c) attentive, (d) genuinely interested in people, (e) etc? [Are you sure?] Are you flexible? Have you changed your mind about anything important in a while? Are you comfortable-uncomfortable with folks on the front line? Do you think you’re “in touch with the pulse of things around here”? [Are You Sure?] Are you too emotional/intuitive? Are you too unemotional/rational? Do you spend much time with people who are new to you? [Do you think questions like this are “so much BS”?]

47. But … Leaders have MENTORS.

Upon having the Leadership Mantle placed upon one’s head, he/she shall never hear the unvarnished truth again!* (*Therefore, she/he needs one faithful compatriot to lay it on with no jelly.) Upon having the Leadership Mantle placed upon one’s head, he/she shall never hear the unvarnished truth again!* (*Therefore, she/he needs one faithful compatriot to lay it on with no jelly.)

The End Game.

48. Leaders are … RELENTLESS.

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

“ Success seems to be largely a matter of hanging on after others have let go.” —William Feather, author

49. Leaders ??? :

“Leadership is the PROCESS of ENGAGING PEOPLE in CREATING a LEGACY of EXCELLENCE.”

“LEADERS NEED TO BE THE ROCK OF GIBRALTAR ON ROLLER BLADES.”

50. Leaders Free the Lunatic Within !

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

Kevin Roberts’ Credo 1. Ready. Fire! Aim. 2. If it ain’t broke... Break it! 3. Hire crazies. 4. Ask dumb questions. 5. Pursue failure. 6. Lead, follow... or get out of the way! 7. Spread confusion. 8. Ditch your office. 9. Read odd stuff. 10. Avoid moderation!

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

51. Leaders Relentlessly Pursue … Excellence

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

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

part 2

EXCELLENCE. ALWAYS. Essentials.

5,000 miles for a 5-minute face-to -face meeting

“I call 60 CEOs [in the first week of the year] to wish them happy New Year. …” —Hank Paulson, former CEO, Goldman Sachs “I call 60 CEOs [in the first week of the year] to wish them happy New Year. …” —Hank Paulson, former CEO, Goldman Sachs Source: Fortune, “Secrets of Greatness,” 0320.05

MBWA, Grameen Style! “Conventional banks ask their clients to come to their office. It’s a terrifying place for the poor and illiterate. … The entire Grameen Bank system runs on the principle that people should not come to the bank, the bank should go to the people. … If any staff member is seen in the office, it should be taken as a violation of the rules of the Grameen Bank. … It is essential that [those setting up a new village Branch] have no office and no place to stay. The reason is to make us as different as possible from government officials.” Source: MBWA, Grameen Style! “Conventional banks ask their clients to come to their office. It’s a terrifying place for the poor and illiterate. … The entire Grameen Bank system runs on the principle that people should not come to the bank, the bank should go to the people. … If any staff member is seen in the office, it should be taken as a violation of the rules of the Grameen Bank. … It is essential that [those setting up a new village Branch] have no office and no place to stay. The reason is to make us as different as possible from government officials.” Source: Muhammad Yunus, Banker to the Poor

The “Have you 50”

The “Have you …” 50

“Mapping your competitive position” or …

1. Have you in the last 10 days … visited a customer? 2. Have you called a customer … TODAY? 3. Have you in the last 60-90 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.)

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

You = Your calendar* *Calendars never lie

Conrad Hilton, at a gala celebrating his life, 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”

2-cent candy

3-cent lemon!

TGR TGR

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

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

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

“one idea.” 1966-2008. “one idea.” 1966-2008.

What makes God laugh?

People making plans!

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

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

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

“Experiment fearlessly” Tactic #1 “Experiment fearlessly” Source: BW0821.06, Type A Organization Strategies/ “How to Hit a Moving Target”— Tactic #1

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

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

Joe J. Jones 1942 – 2008 HE WOULDA DONE SOME REALLY COOL STUFF BUT … HIS BOSS WOULDN’T LET HIM!

“one point one idea/s.” 1966-2007. “one point one idea/s.” 1966-2007.

“Execution is strategy.” —Fred Malek

“ 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

“Execution = Deepest “Blue Ocean”

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’”

1. It’s our organization to make work—or not. It’s not “them,” the outside world that’s the problem. The enemy is us. Period. 2. Friction-free! Dump 90% of “middle managers”—most are advertent or inadvertent “power freaks.” We are all—every one of us—in the Friction Removal Business, one moment at a time, now and forevermore. 3. No “stovepipes”! “Stove-piping,” “Silo-ing” is an Automatic Firing Offense. Period. No appeals. (Within the limits of civility, somewhat “public” firings are not out of the question—that is, make one and all aware why the axe fell.) 4. Everything on the Web. This helps. A lot. (“Everything” = Big word.) 5. Open access. All available to all. Transparency, beyond a level that’s “sensible,” is a de facto imperative in a Burn-the-Silos strategy. 6. Project managers rule!! Project managers running XF (cross- functional) projects are the Elite of the organization, and seen as such and treated as such. (The likes of construction companies have practiced this more or less forever.) 7. “Value-added Proposition” = Application of integrated resources. (From the entire supply- chain.) To deliver on our emergent business raison d’etre, and compete with the likes of our Chinese and Indian brethren, we must co-operate with anybody and everybody “24/7.” IBM, UPS and many, many others are selling far more than a product or service that works—the new “it” is pure and simple a product of XF co-operation; “the product is the co-operation” is not much of a stretch.

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

People! People!

Brand = Talent.

Organizations exist to serve. Period. Leaders live to serve. Period. Passionate servant leaders, determined to create a legacy of earthshaking transformation in their domain create/must necessarily create organizations which are … 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 jointly perceived soaring purpose and personal and community and client service Excellence.

PUT HR AT THE HEAD OF THE HEAD TABLE. BEST PEOPLE. NOBLEST MISSION.

invites “In the end, management doesn’t change culture. Management invites the workforce itself to change the culture.” —Lou Gerstner

A man without a smiling face must not open a shop.” “ A man without a smiling face must not open a shop.” —Chinese Proverb

EMPHASIZE THE “SOFT SKILLS.”

IBP = Remarkable challenge, rapid professional growth, respect, satisfaction, fun, stunning opportunity, exceptional reward, amazing peer group, full membership in Club Adventure, maximized future employability Source: Ed Michaels, The War for Talent; TP

B(I) > B(O)

53 = 53

2/year = legacy.

#1 cause of Dis-satisfaction?

The “Big Three” MarriageParenthood 1 st Line Supervisor* *Accomplishment through others

“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

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

“No matter what the situation, [the excellent 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

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

“ I have always believed that the purpose of the corporation is to be a blessing to the employees.” * —Boyd Clarke *TP: An “organization” is, in fact and after all is said and done, a/the “house” in which most of us “live” most of the time. is said and done, a/the “house” in which most of us “live” most of the time.

“Every child is born an artist. The trick is to remain an artist.” —Picasso

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/2006 Nobel Peace prize winner, father of micro-lending /The News Hour—PBS/1122.2006

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

Kevin Roberts’ Credo 1. Ready. Fire! Aim. 2. If it ain’t broke... Break it! 3. Hire crazies. 4. Ask dumb questions. 5. Pursue failure. 6. Lead, follow... or get out of the way! 7. Spread confusion. 8. Ditch your office. 9. Read odd stuff. Avoid moderation! Kevin Roberts’ Credo 1. Ready. Fire! Aim. 2. If it ain’t broke... Break it! 3. Hire crazies. 4. Ask dumb questions. 5. Pursue failure. 6. Lead, follow... or get out of the way! 7. Spread confusion. 8. Ditch your office. 9. Read odd stuff. 10. Avoid moderation!

We are the company we keep we keep

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

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

“Normal” = “o for 800”

The last word: There is no “last word.”

Flat as a Pancake (Or Worse) Wal*Mart … Dell … Intel … Yahoo … Home Depot … Microsoft … GE

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

Chief Destruction Officer

Built to Change/Rock the World Built to Last vs Built to Change/Rock the World

Single greatest act of pure imagination

No Wiggle Room! “ Incrementalism is innovation ’ s worst enemy. ” — Nicholas Negroponte

3M ’ s Innovation Crisis: How Six Sigma Almost Smothered Its Idea Culture Source: Title/Cover Story, BW, 0611.07 ( “ What ’ s remarkable is how fast a culture can be torn apart, ” 3M lead scientist; “ In an innovation economy, [6 Sigma] is no longer a cure all ” /BW)

“Strive for Excellence. Ignore success.” “Strive for Excellence. Ignore success.” —Bill Young, race car driver (courtesy Andrew Sullivan)

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

The Eight Basics of Excellence: Two Points of View

One: A bias for action: a preference for doing something - anything - rather than sending a question through cycles and cycles of analyses and committee reports. One: A bias for action: a preference for doing something - anything - rather than sending a question through cycles and cycles of analyses and committee reports. Understanding that experimentation (trial & error), not theory, is the bedrock of the scientific method and enterprise Excellence alike. Two: Staying close to the customer – learning his preferences and catering to them. Two: Staying close to the customer – learning her preferences, catering to her needs, engaging her in a partnership, creating experiences for her that unleash the sustainability of loyalty and the power of word-of-mouth recommendation.

Three: Autonomy and entrepreneurship - breaking the corporation into small companies and encouraging them to think independently and competitively. Three: Autonomy and entrepreneurship - breaking the corporation into small companies, and the company into small groups—and encouraging them all to think imaginatively, to “own” their part of the enterprise, and to be accountable for their results. Four: Productivity through people – creating in all employees the awareness that their best efforts are essential and that they will share in the rewards of the company’s success. Four: Productivity through people – practicing “servant leadership,” realizing that the leader’s job in pursuit of Excellence is first and last and foremost to develop unsurpassable competitive advantage through turned on, eternally growing, highly committed talent in every position. To a large extent, This Is Our Mission!

Five: Hands-on, value driven – insisting that executives keep in touch with the firm’s essential business. Five: Hands-on, value driven – staying in close personal touch with the action and actors “on the ground,” no matter the distractions of other priorities, through daily MBWA/Managing By Wandering Around., Preaching and “living” the “Gospel” of Excellence. Six: Stick to the knitting – remaining with the business the company knows best. Six: Stick to the knitting – learning, growing, branching out, but favoring organic growth and not straying beyond the core competencies that are the basis of our sustainable Excellence.

Seven: Simple form, lean staff – few administrative layers, few people at the upper levels. Seven: Simple form, lean staff – few administrative layers, few people at the upper levels, “employees” each acting as Brand You, constant pursuit of Excellence in Execution through Simplicity and Clarity and Integrity- Character. Eight: Simultaneous loose-tight properties – fostering a climate where there is dedication to the central values of the company combined with tolerance for all employees who accept those values. Eight: Simultaneous loose-tight properties – fostering a climate where there is dedication and “buy in” and excitement about the central values and the Ideal of Excellence throughout the enterprise, combined with a passion for constant growth and experimentation within or close to the bounds of those shared values.

Doing “to” vs doing “with” Job “done well” vs “open- ended Quest for growth, full of surprises” full of surprises” “Motivate” vs “Engage” “Tolerance” vs “Expectation” “Director” vs “Servant” Unspecified vs “Excellence” “Him” vs “Her”

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

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

Hard Is Soft Soft Is Hard

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

—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

“What I learned from my years as a hostage negotiator is that we do not have to feel powerless—and that bonding is the antidote to the hostage situation.” —George Kohlrieser, Hostage at the Table

“The terms ‘hard facts,’ and ‘the soft stuff’ used in business imply that data are somehow real and strong while emotions are weak and less important.” —George Kohlrieser, Hostage at the Table

R.O.I.R.

R eturn O n I nvestment In R elationships

C(I)>C(E

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

“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

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

THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM.

“I screwed up.” “I screwed up.”

Attending to the “Last 98%”: the “Last 98%”: The New The New Management “Science,” or … “Hard Is Soft, “Hard Is Soft, Soft Is Hard” Soft Is Hard” Tom Peters/12.03.2008

S = f( ___ ) Success Is a Function of … Function of …

S = ƒ(#&DR; -2L, -3L, 4L; I&E) Number and depth of relationships 2, 3, and 4 levels down, inside and outside the organization S = ƒ (SD>SU) Sucking down is more important than sucking up—the idea is to have the entire organization working for you. S = ƒ (#non-FF, #non-FL) Number of friends, number of lunches with people not in my function S = ƒ (#FF) Number of friends in the finance function-organization S = ƒ (OF) Oddball friends S = ƒ (PDL) Purposeful, deep listening—this is very hard

S = ƒ (#EODD3MC) Number of end-of-the-day difficult (you’d rather avoid) “3-minutecalls” that soothe raw feelings, mend fences, etc S = ƒ (UFP, UFK, OAPS) Unsolicited favors performed, UFs involving co-workers’ kids, overt acts politeness-solicitude toward co-workers’ spouses, parents, etc. S = ƒ (#TN) Number of thank you notes sent S = ƒ (#C, PTS/“OLC,” SAPA) # of consultations, perception of being taken serious (Responsible for “one line of code,” small act of public appreciation S = ƒ (SU) Showing up (Woody Allen, Delaware’s ridiculous influence on the U.S. Constitution)

S = ƒ (1D) Seeking the assignment of writing first drafts, minutes, etc (1787) S = ƒ (#SEAs) Number of solid relationships with Executive Assistants S = ƒ (%UL/w-m) % useful lunches per week, month S = ƒ (FG,FOC-BOF, CMO) Favors given, favors owed collectively, balance of favors, conscious management thereof S = ƒ (CPRM, TS) Conscious-planned Relationship management, time spent thereon S = ƒ (TN/d, FG/m, AA/d) Thank you notes per Day, flowers given per Month, Acts of Appreciation per Day S = ƒ (PT100%A“T”S, E“NMF”—TTT) Proactive, timely, 100% apologies for “tiny” screw-ups, even if not my fault (it always takes two to tango)

S = ƒ (AMR, NBS-SG) Acceptance of mutual responsibilities for all affairs, no blame- shifting, scape-goating S = ƒ (APLSLFCT) Awareness, perception of little snubs—and lightening fast correction thereof S = ƒ (G) Grace S = ƒ (GA) Grace toward adversary S = ƒ (GW) Grace toward the wounded in bureaucratic firefights

S = ƒ (PD) Purposeful decency S = ƒ (TSPD, TSP-L1) Time spent on promotion decisions, especially for 1st level managers S = ƒ (%“SS”, H-PD) % soft stuff involved in Hiring, Promotion decisions S = ƒ (TWA, P, NP) Time wandering around, purposeful, non-planned S = ƒ (SBS) Slack built into Schedule S= ƒ (TSHR) Time spent … Hurdle Removing

S = ƒ (%TM“TSS,” PM“TSS,” D“TD”“TSS”) % of time, measured, on This Soft Stuff, purposeful management of this Soft Stuff, daily “to do” concerning “this Soft Stuff” S = ƒ (MB“TSS”MR) Purposeful management of this Soft Stuff by people reporting to me S = ƒ (EC, MMO) Emotional connection, mgt & maintenance of S = ƒ (IMDOP) Investment in Mastery of detailed organization processes S = ƒ (H-TS) Time spent on Hiring

S = ƒ(%TM“TSS,” PM“TSS,” D“TD”“TSS”) % of time, measured, on This Soft Stuff, purposeful management of this Soft Stuff, daily “to do” concerning “this Soft Stuff”

Q: But where’s the beef? the beef? A: This is the beef! the beef!

Don’t forget the “it”!

“It suddenly occurred to me …

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

crave Franchise Lost! TP: “ How many of you [600] really crave a new Chevy?” NYC/IIR/061205

Who buys “it” I: Sunset for men!

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

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

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

The Perfect Answer Jill and Jack buy slacks in black…

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

“One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to spend. … This is just the beginning. The phenomenon will only grow as girls prove to be more successful than boys in the school system. For a number of observers, we have already entered the age of ‘womenomics,’ the economy as thought out and practiced by a woman.” “One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to spend. … This is just the beginning. The phenomenon will only grow as girls prove to be more successful than boys in the school system. For a number of observers, we have already entered the age of ‘womenomics,’ the economy as thought out and practiced by a woman.” —Aude Zieseniss de Thuin, Financial Times, 10.03.2006

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

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

Who buys “it” II: Sunrise for old folks!

18-44: -1% 55+: +21% (55-64: +47% ) 2000-2010 Stats 18-44: -1% 55+: +21% (55-64: +47% )

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

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

“gurugate”: The Gurus’ fixation with “the wrong stuff”* *Not “they,” but “us.”

Over-rated: Over-rated: Big companies! Public companies! “Cool” industries! Stability (“Built to last”) ! Famous CEOs!

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

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

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

#4 Japan #2T china #2t USA #1 Germany

Reason!!! Mittelstand

Family Businesses Two-thirds of total #s of companies One-half of biggest companies >One-half GDP >One-half employment 6% more profitable 7% better ROA Higher income growth Higher revenue growth Source: John Davis, HBS Family Businesses Two-thirds of total #s of companies One-half of biggest companies >One-half GDP >One-half employment 6% more profitable 7% better ROA Higher income growth Higher revenue growth Source: John Davis, HBS

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

“Natural selection is death.... Without huge amounts of death, organisms do not change over time.... Death is the mother of structure.... It took four billion years of death... to invent the human mind...” — The Cobra Event

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

Market capitalization lost per day, 1998- 2007: $10,000,000/Day

* Lived in same town all adult life *First generation that’s wealthy/ no parental support *“Don’t look like millionaires, don’t dress like millionaires, don’t eat like millionaires, don’t act like millionaires” *“Many of the types of businesses [they] are in could be classified as ‘dull-normal.’ [They] are welding contractors, auctioneers, scrap-metal dealers, lessors of portable toilets, dry cleaners, re-builders of diesel engines, paving contractors …” Source: The Millionaire Next Door, Thomas Stanley & William Danko

The “Fabulous Five”: *SMEs! *Private companies! *“Dull” industries! *Productive churn: Built to Rock the World! *Laudable CEOs! The “Fabulous Five”: *SMEs! *Private companies! *“Dull” industries! *Productive churn: Built to Rock the World! *Laudable CEOs!

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

THE 9P s.

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

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

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

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

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

1. Ready. Fire! Aim. 2. If it ain’t broke... Break it! 3. Hire crazies. 4. Ask dumb questions. 5. Pursue failure. 6. Lead, follow... or get out of the way! 7. Spread confusion. 8. Ditch your office. 9. Read odd stuff. Avoid moderation! Kevin Roberts’ Credo 1. Ready. Fire! Aim. 2. If it ain’t broke... Break it! 3. Hire crazies. 4. Ask dumb questions. 5. Pursue failure. 6. Lead, follow... or get out of the way! 7. Spread confusion. 8. Ditch your office. 9. Read odd stuff. 10. Avoid moderation!

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

Leadership’s 10 th “P”: Promotion Leadership’s 10 th “P”: Promotion

2 per Year/ 20 per Decade = Excellence + Legacy

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

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

The 1m

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

And in conclusion …

Sir Richard’s Rules: Follow your passions. Keep it simple. Get the best people to help you. Re-create yourself. Play. Source: Fortune on Branson

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

And in conclusion …

The Common CEO Lament: “If everything had been good, then everything would have been fine.”* * Annual Reports: Good, “Our strategy … Bad, “Unexpected …”

Black Swans: This is how you earn your pay!* ** *See: The Black Swan: The Impact of the Highly Improbable, Nassim Nicholas Taleb *WSC: “When the seas are calm all ships alike show mastership in sailing.”

Attributes of resilient people: Inner calm (Buddhist?) High self-knowledge (“comfortable in own skin”) Breadth of experience—drove a cab, worked construction, ran Alaska tours … as well as more traditional stuff Sense of, “Ah, my moment” (Giuliani) Lover of modestly controlled chaos (bored amidst calm—FDR) Reach out effortlessly Reach out effortlessly to a wide variety of people Bizarrely energetic Known for integrity, in the sense of “straight shooter” Hires resilient people in key positions! (All senior leadership roles?) Maintains sense of humor Empathy (“I feel your pain”) “Cruelty” (Must make tough decisions instantaneously, without looking back; not “confident,” but overwhelming sense of urgency to press ahead) Decisive but not rigid Strong individual, strong team player Understands the chain of command—and is flexible Comfortable being challenged by thinkers, but a strong “doer” bias overall A person of Hope (religious?) Not necessarily: ex-college QB, comeback rep (Why: All within the rules, with in the context of that which has been practiced) Better: Ocean sailboat racer; ER doc; public health doc astronaut; combat experience as NCO; hostage negotiator; survived in hopeless circumstances through guile and grit; seeks “independent duty” Tests : lights go out during interview, followed by fire alarm, etc; focus on in reference checks

Attributes of resilient organizations: Hire resilient folks at all levels and in all functions—explicit about so doing Promote resilience Decentralization (organization structure, physical, systems) Redundancy Financial padding Excellent equipment Ability to get by without IS-IT!! Test in uncomfortable situations Promote an unusually high share of mavericks Diversity per se

#15/15

If Not Excellence, What? What?

part 3

Attending to the “Last 98%”: The New “Management Science,” or “Hard” Is “Soft,” “Soft” Is “Hard” Is “Hard”

S = ƒ( ___ ) S = ƒ ( ___ ) Success Is a Function of … Function of …

SF50: Success Is a Function of*... Is a Function of*... *What follows are not in fact true mathematical formulae— obviously. Nonetheless, in tribute to my own scientific background, and, more important, that of many seminar participants, I have chosen this format—which seems to work for those of “my ilk” to whom it has been exposed

SF50: 50 “Equations” on achieving success … at pretty much anything 50 “Equations” on achieving success … at pretty much anything

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

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

Never* waste a lunch! Never* waste a lunch! *More or less

S =ƒ(#PK“W”P) S = ƒ(#PK“L”P) # of people you know in the “wrong” places # people you know in “low” places

??????? “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!”

It helps to know people in … high places!”

It helps more to know people in … low places!”

Gust Avarkotos’ “boiler room” CIA pals Walter’s “enabler” P.M. Thank You notes Flexirent’s XSec’s Customer PA lunches Anybody’s XSec Anybody’s PA All customer Purchasing Dept receptionists Secy Chaffee’s letter writer McKinsey report prep staff McKinsey research staff Admiral’s Aide Congressional Committee staff drafter Congressman’s appropriate LA Anybody in Finance

S = ƒ(OF) Number of oddball friends S = ƒ(PDL) Purposeful, deep listening—this is very hard S = ƒ(“DSTM,” EH, TTAGFG) Don’t shoot the messenger—embrace him! Truth-tellers are gifts from God! S + ƒ(#EODD3MC) Number of end-of-the-day difficult (you’d rather avoid) “3- minutecalls” that sooth raw feelings, mend fences, etc. S = ƒ(UFP, UFK, OAPS) Unsolicited favors performed, UFs involving co-workers’ kids, overt acts politeness-solicitude toward co-workers’ spouses, parents, etc.

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.

S= ƒ(TSHRO) Time spent... Hurdle Removing for Others

S = ƒ(A#C, PTS/“OLC”, SAPA) Absolute # of consultations, perception of being taken seriously (Responsible for “one line of code”), small acts of public appreciation S = ƒ(1D) Seeking the assignment of writing first drafts, minutes, etc. (1787) S = ƒ(#SEAs) Number of solid relationships with Executive Assistants S = ƒ(%UL/w-m) % useful lunches per week, month S = ƒ(FG, FOC-BOF, CMO) Favors given, favors owed collectively, balance of favors, conscious management thereof

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

S = ƒ(SU) Showing up (Woody Allen, Delaware’s ridiculous influence on the Constitution of the USA) S = ƒ(KSU, R) Keep showing up; relentlessness (U.S. Grant!!) S = ƒ(DW, TMSTTOG) Drill wells, try more stuff than the other guy (John Masters, Mike Bloomberg)

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

“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

S= ƒ(CM) Conscious calendar management (the calendar never lies) (the calendar never lies)

You = Your calendar* *Calendars never lie!

“ 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

S = ƒ(CPRM, TS) Conscious-planned Relationship management, time spent thereon

R.O.I.R.

R eturn O n I nvestment In R elationships

FYI: “Relationship power” = “Monopoly power”

FYI: “Sustainable competitive advantage” = “Relationship-based advantage” (period.)

Some Resources: Relationships Some Resources: Relationships The Manager’s Book of Decencies: How Small Gestures Build Great Companies—Steve Harrison Build Great Companies—Steve Harrison Respect —Sara Lawrence-Lightfoot Hostmanship: The Art of Making People Feel Welcome— Jan Gunnarsson & Olle Blohm (leader as host to his- Jan Gunnarsson & Olle Blohm (leader as host to his- her employees) her employees) The SPEED of Trust: The One Thing that Changes Everything—Stephen M.R. Covey Everything—Stephen M.R. Covey The Dream Manager —Matthew Kelly The Customer Comes Second: Put Your People First and Watch ’Em Kick Butt—Hal Rosenbluth and Diane Watch ’Em Kick Butt—Hal Rosenbluth and Diane McFerrin Peters (no relation—be delighted if she was) McFerrin Peters (no relation—be delighted if she was) Crucial Conversations —Kerry Patterson, Joseph Grenny, Ron McMillan, Al Switzler Ron McMillan, Al Switzler Crucial Confrontations —Kerry Patterson, Joseph Grenny, Ron McMillan, Al Switzler Grenny, Ron McMillan, Al Switzler Influence: Science and Practice—Robert Cialdini Emotional Intelligence : Why It Can Matter More Than IQ—Daniel Goleman Than IQ—Daniel Goleman

S = ƒ(TN/d, FG/m, AA/d) Thank you notes per Day, flowers given per Month, Acts of Appreciation per Day S = ƒ(WLHAO) Willingness to laugh heartily at oneself S = ƒ(PTA100%A“T”S, E“NMF, TTT) Proactive, timely, 100% apologies for “tiny” screw-ups, even if not my fault (it always takes two to tango) S = ƒ(AMR, NBS-SG) Acceptance of mutual responsibilities for all affairs, no blame- shifting, scape-goating S = ƒ(RP, PRP>>P) Never forget, and act accordingly: Response to the screwup- problem and perception thereof is (far, far) more important than the problem itself! S = ƒ(APLSLFCT) Awareness, perception of little snubs—and lightening fast correction thereof correction thereof

S = ƒ(TN/d, FG/m, AA/d) Thank you notes per Day, flowers given per Month, Acts of Appreciation per Day S = ƒ(WLHAO) Willingness to laugh heartily at oneself S = ƒ(RP, PRP>>P) Never forget, and act accordingly: Response to the screwup- problem and perception thereof is (far, far) more important than the problem itself! S = ƒ(APLSLFCT) Awareness, perception of little snubs—and lightening fast correction thereof correction thereof

THE PROBLEM IS RARELY/ NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM.

FLOWERPOWERFLOWERPOWERFLOWERPOWERFLOWERPOWER S = ƒ(Thank you notes per Day, flowers per Day, flowers given per Month, given per Month, Acts of Appreciation Acts of Appreciation per Week) per Week)

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

S = ƒ(PTA100%A“T”S, E“NMF, TTT) Proactive, timely, 100% apologies for “tiny” screw-ups, even if not my fault (it always takes two to tango) S = ƒ(AMR, NBS-SG) Acceptance of mutual responsibilities for all affairs, no blame- shifting, scape-goating

Power phrase: “I screwed up.”

S = ƒ(G) Grace S = ƒ(GA) Grace toward adversary S = ƒ(GW) Grace toward the wounded in bureaucratic firefights S = ƒ(PD) Purposeful decency S = ƒ(MB“TSS”MR) Purposeful management of this Soft Stuff by people reporting to me S = ƒ(EC, MMO) Emotional connection, mgt & maintenance of S = ƒ(IMDOP) Investment in Mastery of detailed organizational processes

“What I learned from my years as a hostage negotiator is that we do not have to feel powerless—and that bonding is the antidote to the hostage situation.” —George Kohlrieser, Hostage at the Table (GK’s negotiation success rate is >95% )

S = ƒ(H-TS) Time spent on Hiring S = ƒ(TSPD, TSP-L1) Time spent on promotion decisions, especially for 1st level managers S = ƒ(%“SS,” H-PD) % soft stuff involved in Hiring, Promotion decisions S = ƒ(%WLP) % women in leadership positions S = ƒ(TWA, P, NP) Time wandering around, purposeful, non-planned S = ƒ(SBS) Slack built into Schedule

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

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

S = ƒ(%TM“TSS,” PM“TSS,” D“TD”“TSS”) S = ƒ (%TM“TSS,” PM“TSS,” D“TD”“TSS”) % of time, measured, on This Soft Stuff, purposeful management of this Soft Stuff, daily “to do” concerning “this Soft Stuff”

Q: But where’s the beef? the beef? A: This is the beef! the beef!

“The terms ‘hard facts,’ and ‘the soft stuff’ used in business imply that data are somehow real and strong while emotions are weak and less important.” —George Kohlrieser, Hostage at the Table

O(B) = ƒ(XX) O(B), the “blueness” of one’s “ocean” [think Blue Ocean Strategy, the popular book], is directly proportional to one’s eXcellence in eXecution/XX, per me. [If one finds a “strategic” “blue ocean,” one will, especially in today’s world, copied immediately; the only “defense”— possibility of sustaining success—is XX/eXcellence in eXecution. Think EXXON MOBIL; they and their rivals know where the hydrocarbons are—but EXXON MOBIL handily out-executes the competition.]

S(O) = ƒ(XXFX) The single most important cause of failure to execute effectively is the lack of effective cross-functional communication-execution. Hence, Organizational Success is a function of eXcellence (X) in cross- functional (XF) eXecution (X). Attached as Appendix II is my: The “XF-50”: 50 Ways to Enhance Cross- Functional Effectiveness and Deliver Speed, “Service Excellence” and “Value-added Customer ‘Solutions.’”

S(O) = ƒ(X“SIT”) In 1982 in In Search of Excellence, Bob Waterman and I wrote about the idea of “MBWA,” or Managing By Wandering Around; we came across “MBWA” at Hewlett-Packard, then a much smaller company, and it was love at first sight! For reasons described in Appendix III, I recently returned to the centrality of that notion—and created a list of 50 “Have Yous.” That is, instead of worrying ceaselessly about “strategy” and “blue oceans,” how good a job have you done at Staying In Touch with your extended internal and external “organizational family”? That is: S(O), Organizational Success, is a function of X “SIT,” eXcellence at Staying In Touch.

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

—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

part 4

people power: The talent 50

“I have always believed that the purpose of the corporation is to be a blessing to the employees.” —Boyd Clarke

1. People First!

TP: TP: “How to piss away $500,000 in one easy lesson!!”

People! People!

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

2. “Soft” Is “Hard.”

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”

3. FUNDAMENTAL PREMISE: We Are in an Age of Talent/ Creativity/ Intellectual-capital Added.

Conceptual Age Agriculture Age (farmers) Industrial Age (factory workers) Information Age (knowledge workers) Conceptual Age (creators and empathizers) Source: Dan Pink, A Whole New Mind

“Human creativity is the ultimate economic resource.” “Human creativity is the ultimate economic resource.” —Richard Florida, The Rise of the Creative Class

4. Talent “Excellence” in Every Part of Every Organization.

Wegmans: #1/100 “ Best Companies to Work for” /2005

5. Talent “Excellence” Stretches Far Beyond Our Borders.

We become who we hang out with 1

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

6. P.O.T./ Pursuit Of Talent = OBSESSION.

“The leaders of Great Groups love talent and know where to find it. They revel in the talent of others.” “The leaders of Great Groups love talent and know where to find it. They revel in the talent of others.” —Warren Bennis & Patricia Ward Biederman, Organizing Genius

“Connoisseur of Talent” PARC’s Bob Taylor: “Connoisseur of Talent”

7. Talent Masters Understand Talent’s Intangibles.

Each hired and developed and evaluated in unique ways Attitude/Enthusiasm/Energy paramount Re-lent-less! “Practice is cool” Team and individual Aspire to EXCELLENCE = Obvious Ex-e-cu-tion Talent = Brand = Duh “The Project” rules Emotional language Bit players. No. B.I.W Delta events = Delta rosters A Few Lessons from the Arts Each hired and developed and evaluated in unique ways (23 contributors = 23 unique contributions = 23 pathways = 23 personalities = 23 sets of motivators) Attitude/Enthusiasm/Energy paramount Re-lent-less! “Practice is cool” (G Leonard/Mastery) Team and individual Aspire to EXCELLENCE = Obvious Ex-e-cu-tion Talent = Brand = Duh “The Project” rules Emotional language Bit players. No. B.I.W. (everything) Delta events = Delta rosters (incl leader/s)

8. HR Is “Cool.”

Chicago: HRMAC

or “support function” / “cost center” / “bureaucratic drag” or …

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

9. HR Sits at The Head Table.

A review of Jack and Suzy Welch’s Winning claims there are but two key differentiators that set GE “culture” apart from the herd: First: Separating financial forecasting and performance measurement. Performance measurement based, as it usually is, on budgeting leads to an epidemic of gaming the system. GE’s performance measurement is divorced from budgeting—and instead reflects how you do relative to your past performance and relative to competitors’ performance; i.e., it’s about how you actually do in the context of what happened in the real world, not as compared to a gamed-abstract plan developed last year. Putting HR on a par with finance and marketing. Second: Putting HR on a par with finance and marketing.

10. Re-name “HR.”

Talent Department

“H.R.” to “H.E.D.” ??? H uman E nablement D epartment

People Department Center for Talent Excellence Seriously Cool People Who Recruit & Develop Seriously Cool People Etc.

11. There Is an “HR Strategy”/ “HR Vision”

EVP/ IBP What’s your company’s … EVP/ IBP?* *Employee Value Proposition, per Ed Michaels et al., The War for Talent; IBP/Internal Brand Promise per TP

EVP/IBP = Remarkable challenge, rapid professional growth, respect, satisfaction, fun, stunning opportunity, exceptional reward, amazing peer group, full membership in Club Adventure, maximized future employability Source: Ed Michaels, The War for Talent; TP

12. Acquire for Talent!

Omnicom's acquisitions: “not for size per se”; “buying talent;” “deepen a relationship with a client.” Source: Advertising Age

13. There Is a FORMAL Recruitment Strategy.

“Busy Executives Fail To Give Recruiting Attention It Deserves” —Headline, WSJ, 1121.05 “Busy Executives Fail To Give Recruiting Attention It Deserves” —Headline, WSJ, 1121.05

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

14. There Is a FORMAL Leadership Development Strategy.

Crotonville!

DD: 0 to 60mph in a flash (months)

15. There Is a FORMAL STRATEGIC HR Review Process.

“In most companies, the Talent Review Process is a farce. At GE, Jack Welch and his two top HR people visit each division for a day. They review the top 20 to 50 people by name. They talk about Talent Pool strengthening issues. The Talent Review Process is a contact sport at GE; it has the intensity and the importance of the budget process at most companies.” “In most companies, the Talent Review Process is a farce. At GE, Jack Welch and his two top HR people visit each division for a day. They review the top 20 to 50 people by name. They talk about Talent Pool strengthening issues. The Talent Review Process is a contact sport at GE; it has the intensity and the importance of the budget process at most companies.” —Ed Michaels

16. “People”/ Talent” Reviews Are the FIRST Reviews.

17. HR Strategy = BUSINESS Strategy.

Wegmans: #1/100 Best Companies to Work for 84%: Grocery stores “are all alike” 46%: additional spend if customers have an “emotional connection” to a grocery store rather than “are satisfied” (Gallup) “Going to Wegmans is not just shopping, it’s an event.” —Christopher Hoyt, grocery consultant “ You cannot separate their strategy as a retailer from their strategy as an employer.” —Darrell Rigby, Bain & Co.

Cirque du Soleil !

18. Make it a “Cause Worth Signing Up For.”

19. Unleash “Their” Full Potential!

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

“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

20. Set Sky High Standards.

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

21. Enlist Everyone in Challenge Century21.

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

Distinct Extinct Distinct … or … Extinct

22. Pursue the Best!

20 40 $25$80 2 “We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia- Pacific … changed 20 of his 40 box plant managers to put more talented, higher paid managers in charge. He increased profitability from $25 million to $80 million in 2 years.” —Ed Michaels, War for Talent

23. Up or Out.

24. Ensure that the Review Process Has INTEGRITY.

25 = 100* 25 = 100* * “But what do I do that’s more important than developing people? I don’t do the damn work. They do.”—GK

25. Pay Up!

“Top performing companies are two to four times more likely than the rest to pay what it takes to prevent losing top performers.” —Ed Michaels, War for Talent

26. Training I: Train! Train! Train!

27. Training II: 100% “Business People.”

New Work SurvivalKit.2008 MASTERY! “Manage” to Legacy 1. MASTERY! (Best/Absurdly Good at Something!) 2. “Manage” to Legacy (All Work = “Memorable”/“Braggable” WOW Projects!) A “USP”/UNIQUE SELLING PROPOSITION 3. A “USP”/UNIQUE SELLING PROPOSITION Rolodex Obsession 4. Rolodex Obsession (From vertical/hierarchy/“suck up” loyalty to ENTREPRENEURIAL INSTINCT CEO/LEADER/BUSINESSPERSON/CLOSER Master of Improv horizontal/“colleague”/“mate” loyalty) 5. ENTREPRENEURIAL INSTINCT (A sleepless … Eye for Opportunity! 6. CEO/LEADER/BUSINESSPERSON/CLOSER (CEO, Me Inc. 24/7!) 7. Master of Improv (Play a dozen parts simultaneously, from Sense of Humor Chief Strategist to Chief Toilet Scrubber) 8. Sense of Humor (A willingness to Screw Up & Move On) Comfortable with Your Skin Intense Appetite for Technology 9. Comfortable with Your Skin (Bring “interesting you” to work!) 10. Intense Appetite for Technology (E.g.: How Cool-Active is your EMBRACE “MARKETING” PASSION FOR RENEWAL Web site? Do you Blog?) 11. EMBRACE “MARKETING” (Your own CSO/Chief Storytelling Officer) 12. PASSION FOR RENEWAL (Your own CLO/Chief Learning Officer) EXECUTION EXCELLENCE! 13. EXECUTION EXCELLENCE! (Show up on time! Leave last!)

28. Training III: 100% LEADERS.

29. Training IV: Boss as Trainer- in-Chief.

“Workout” = 24 DPY in the Classroom

30. Training V: The REAL Bedrock of the “Talent Thing.”

My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding refrigerator artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How could any child—let alone our child—receive a poor grade in art at such a young age? His teacher informed us that he had refused to color within the lines, which was a state requirement for demonstrating ‘grade-level motor skills.’ ” —Jordan Ayan, AHA! “My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding refrigerator artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How could any child—let alone our child—receive a poor grade in art at such a young age? His teacher informed us that he had refused to color within the lines, which was a state requirement for demonstrating ‘grade-level motor skills.’ ” —Jordan Ayan, AHA!

31. Wide-open Communication: NO BARRIERS.

“ The organizations we created have become tyrants. They have taken control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls that no one can scale or penetrate or even peer over.” “ The organizations we created have become tyrants. They have taken control, holding us fettered, creating barriers that hinder rather than help our businesses. The lines that we drew on our neat organizational diagrams have turned into walls that no one can scale or penetrate or even peer over.” — Frank Lekanne Deprez & René Tissen, Zero Space: Moving Beyond Organizational Limits

32. RESPECT!

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

“Don’t belittle!” —OD Consultant

33. Embrace the Whole Individual.

34. Build Places of “Grace.”

Rodale’s on “Grace” … elegance … charm … loveliness … poetry in motion … kindliness... benevolence … benefaction … compassion … beauty

The Manager’s Book of Decencies: How Small gestures Build Great Companies. The Manager’s Book of Decencies: How Small gestures Build Great Companies. —Steve Harrison, Adecco Servant Leadership Servant Leadership —Robert Greenleaf One: The Art and Practice of Conscious Leadership One: The Art and Practice of Conscious Leadership —Lance Secretan, founder of Manpower, Inc.

35. MBWA: Visible Leadership!

36. Thank You!

37. Promote for “people skills.” (THE REST IS DETAILS.)

“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, Honeywell/AlliedSignal, in Execution

38. Honor Youth.

“Why focus on these late teens and twenty- somethings? Because they are the first young who are both in a position to change the world, and are actually doing so. … For the first time in history, children are more comfortable, knowledgeable and literate than their parents about an innovation central to society. … The Internet has triggered the first industrial revolution in history to be led by the young.” The Economist

39. Provide Early Leadership Assignments.

The WOW! Project

40. Create a FORMAL System of Mentoring.

W. L. Gore Quad/Graphics

41. Diversity!

CM Prof Richard Florida on “Creative Capital”: “You cannot get a technologically innovative place … unless it’s open to weirdness, eccentricity and difference.” Source: New York Times/06.01.2002

42. WOMEN RULE.

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 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. —Judy B. Rosener, America’s Competitive Secret: Women Managers

Period??!!* Start: 3 0f 14 18 months later: 10 of 18 (“deep dip”!) *AIM/September 2007

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

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

43. Hire (& Protect!) Weird!

“Are there enough weird people in the lab these days?” “Are there enough weird people in the lab these days?” —V. Chmn., pharmaceutical house, to a lab director

Why Do I love Freaks? (1) Because when Anything Interesting happens … it was a freak who did it. (Period.) (2) Freaks are fun. (Freaks are also a pain.) (Freaks are never boring.) (3) We need freaks. Especially in freaky times. (Hint: These are freaky times, for you & me & the CIA & the Army & Avon.) (4) A critical mass of freaks-in-our-midst automatically make us-who-are-not-so-freaky at least somewhat more freaky. (Which is a Good Thing in freaky times—see immediately above.) (5) Freaks are the only (ONLY) ones who succeed—as in, make it into the history books. (6) Freaks keep us from falling into ruts. (If we listen to them.) (We seldom listen to them.) (Which is why most organizations are in ruts. Make that chasms.)

44. We Are All Unique.

53 = 53

Beware Standardized Evals: One size NEVER fits all. One size fits one. Period.

Promise #1: “Never, ever again will I evaluate anyone using a standardized instrument devised by a “professional” in inhuman Resources.”

53 Players = 53 Projects = 53 different success measures.

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

220 workdays = 220 “rosters” 220 workdays = 220 “rosters” Source: Coach K

new goal … every game! new goal … every game! Source: Coach K

45. Capitalize on Strengths.

“The key difference between checkers and chess is that in checkers the pieces all move the same way, whereas in chess all the pieces move differently. … Discover what is unique about each person and capitalize on it.” —Marcus Buckingham, The One Thing You Need to Know

The mediocre manager believes that most things are learnable and therefore that the essence of management is to identify ach person’s weaker areas and eradicate them. The great manager believes the opposite. He believes that the most influential qualities of a person are innate and therefore that the essence of management is to deploy these innate qualities as effectively as possible and so drive performance.” —Marcus Buckingham, The One Thing You Need to Know “ The mediocre manager believes that most things are learnable and therefore that the essence of management is to identify ach person’s weaker areas and eradicate them. The great manager believes the opposite. He believes that the most influential qualities of a person are innate and therefore that the essence of management is to deploy these innate qualities as effectively as possible and so drive performance.” —Marcus Buckingham, The One Thing You Need to Know

46. Bosses “Win People Over.”

“Coaching is winning players over.” PJ: “Coaching is winning players over.”

47. GOAL: Voyages of Mutual Discovery.

“The organization would ultimately win not because it gave agents more money, but because it gave them a chance for better lives.” “The organization would ultimately win not because it gave agents more money, but because it gave them a chance for better lives.” —Everybody Wins, Phil Harkins & Keith Hollihan

Quests!

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

48. Foster Independence.

“You must realize that how you invest your human capital matters as much as how you invest your financial capital. Its rate of return determines your future options. Take a job for what it teaches you, not for what it pays. Instead of a potential employer asking, ‘Where do you see yourself in 5 years?’ you’ll ask, ‘If I invest my mental assets with you for 5 years, how much will they appreciate? How much will my portfolio of career options grow?’ ” “You must realize that how you invest your human capital matters as much as how you invest your financial capital. Its rate of return determines your future options. Take a job for what it teaches you, not for what it pays. Instead of a potential employer asking, ‘Where do you see yourself in 5 years?’ you’ll ask, ‘If I invest my mental assets with you for 5 years, how much will they appreciate? How much will my portfolio of career options grow?’ ” Source: Stan Davis & Christopher Meyer, futureWEALTH

49. En- thus-i- asm!

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

50. Talent = Brand.

Better talent wins. Talent management is my job as leader. Talented leaders are looking for the moon and stars. Over-deliver on people’s dreams – they are volunteers. Pump talent in at all levels, from all conceivable sources, all the time. Source: Ed Michaels et al., The War for Talent The Top 5 “Revelations” Better talent wins. Talent management is my job as leader. Talented leaders are looking for the moon and stars. Over-deliver on people’s dreams – they are volunteers. Pump talent in at all levels, from all conceivable sources, all the time. Source: Ed Michaels et al., The War for Talent

BRAND = TALENT.

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