before we begin …

Before we Before we begin …begin …

NOTENOTE:: To appreciateTo appreciate this presentation this presentation [and [and

insure that it is not a insure that it is not a messmess],], you need Microsoft you need Microsoft

fonts:fonts:

“Showcard Gothic,”“Showcard Gothic,” “Ravie,”“Ravie,” “Chiller”“Chiller”

andand “Verdana”“Verdana”

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

seems obviousseems obvious … …

“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How

do I build a small firm for myself?’ The answer seems

obvious: Buy a very Buy a very largelarge

one and just one and just waitwait.”.” —Paul Ormerod, Why Most Things

Fail: Evolution, Extinction and Economics

““Mr. Foster and his McKinsey colleagues Mr. Foster and his McKinsey colleagues collected detailed performance data stretching collected detailed performance data stretching

back back 4040 years for years for 1,0001,000 U.S. companies. U.S. companies.

TheTheyy found that found that nonenone ofof

the lon the longg-term survivors mana-term survivors managged to ed to outoutpperform the market. Worse, the erform the market. Worse, the lonlongger comer comppanies had been in the anies had been in the

database, the worse thedatabase, the worse theyy did did.” .” —Financial Times—Financial Times

““Data drawn from the real world Data drawn from the real world attest to a fact that is beyond attest to a fact that is beyond

our control:our control: Everything in existence tends to deteriorate.”

—Norberto Odebrecht, —Norberto Odebrecht, Education Through WorkEducation Through Work

#4 Japan#4 Japan#3 USA#3 USA

#2 China#2 China

#4 Japan#4 Japan#3 USA#3 USA

#2 China#2 China

#1 #1 GermanyGermany

MittELstandMittELstand* *

**“agile creatures darting between the legs of“agile creatures darting between the legs of the multinational monsters"the multinational monsters" ((Bloomberg BusinessWeek, Bloomberg BusinessWeek, 10.10)10.10)

““Be the best. Be the best. It’s the only It’s the only

market that’s market that’s not crowded.”not crowded.”

From: From: Retail Superstars: Inside the 25 BestRetail Superstars: Inside the 25 Best Independent Stores in America,Independent Stores in America, George Whalin George Whalin

*Basement Systems Inc.*Basement Systems Inc.*Larry Janesky*Larry Janesky**Dry Basement ScienceDry Basement Science (115,000!) (115,000!)

*1990: $0; 2003: $13M; *1990: $0; 2003: $13M; 2008: 2008:

$62,000,000$62,000,000

Jim’s Mowing CanadaJim’s Mowing CanadaJim’s Mowing UKJim’s Mowing UKJim’s AntennasJim’s Antennas

Jim’s BookkeepingJim’s BookkeepingJim’s Building MaintenanceJim’s Building Maintenance

Jim’s Carpet CleaningJim’s Carpet CleaningJim’s Car CleaningJim’s Car Cleaning

Jim’s Computer ServicesJim’s Computer Services

Jim’s Dog WashJim’s Dog WashJim’s Driving SchoolJim’s Driving School

Jim’s FencingJim’s FencingJim’s FloorsJim’s Floors

Jim’s PaintingJim’s PaintingJim’s PavingJim’s Paving

Jim’s Pergolas [gazebos]Jim’s Pergolas [gazebos]Jim’s Pool CareJim’s Pool Care

Jim’s Pressure CleaningJim’s Pressure CleaningJim’s RoofingJim’s Roofing

Jim’s Security DoorsJim’s Security DoorsJim’s TreesJim’s Trees

Jim’s Window CleaningJim’s Window CleaningJim’s WindscreensJim’s Windscreens

Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group

““The ‘mass market’ is dead. The ‘mass market’ is dead. Consumers look for either price Consumers look for either price

or quality.or quality. The middle is untenable.”

—Walter Robb/COO/Whole Foods/—Walter Robb/COO/Whole Foods/Investors Business DailyInvestors Business Daily/06.20.05/06.20.05

Small Giants/Bo Burlingham

"First, I could see that, unlike most entrepreneurs, I could see that, unlike most entrepreneurs, their founders and leaders their founders and leaders had recognized the full had recognized the full range of choices they had about the type of company range of choices they had about the type of company they would createthey would create."."

"Second, the leaders had the leaders had overcome the enormous overcome the enormous pressures on successful companies to take paths they pressures on successful companies to take paths they had not chosenhad not chosen and did not necessarily want to and did not necessarily want to follow." follow."

"Third, each company had an each company had an extraordinarily intimate extraordinarily intimate relationship with the local city, town, or countyrelationship with the local city, town, or county in in which it did business -- a relationship that went well which it did business -- a relationship that went well beyond the usual concept of 'giving back.'" beyond the usual concept of 'giving back.'"

Small Giants/Bo Burlingham

"Fourth, they cultivated they cultivated exceptionally intimate exceptionally intimate relationships with customers and suppliersrelationships with customers and suppliers,, based on based on personal contact, one-on-one interaction, and mutual personal contact, one-on-one interaction, and mutual commitment to delivering on promises." commitment to delivering on promises."

"Fifth, the companies also had what struck me as the companies also had what struck me as unusually unusually intimate workplacesintimate workplaces." ."

"Finally, I noticed the I noticed the passionpassion that the leaders that the leaders brought to what the company did. brought to what the company did. They loved the They loved the subject mattersubject matter, whether it be music, safety lighting, , whether it be music, safety lighting, food, special effects, constant torque hinges, beer, food, special effects, constant torque hinges, beer, records storage, construction, dining, or fashion."records storage, construction, dining, or fashion."

Retail Superstars: Retail Superstars: Inside the 25 Best Inside the 25 Best

Independent Independent Stores in AmericaStores in America —

by George Whalin

Jungle Jim’s International Market, Fairfield, Ohio:Jungle Jim’s International Market, Fairfield, Ohio: “An “An

adventure in adventure in ‘‘shoshoppppertainmentertainment,’,’ as as

Jungle Jim’s call it, begins in the parking lot Jungle Jim’s call it, begins in the parking lot and goes and goes on to on to 1,600 cheeses1,600 cheeses and, yes, and, yes, 1,400 varieties of hot 1,400 varieties of hot saucesauce —not to mention —not to mention 12,000 wines priced from $8 to 12,000 wines priced from $8 to $8,000$8,000 a bottle; all this is brought to you by a bottle; all this is brought to you by 4,000 4,000 vendorsvendors Customers from every corner of the globe.” Customers from every corner of the globe.”

Bronner’s Christmas Wonderland, Frankenmuth, Bronner’s Christmas Wonderland, Frankenmuth, Michigan, pop 5,000:Michigan, pop 5,000: 98,000-square-foot98,000-square-foot “shop” “shop” features the likes of features the likes of 6,000 Christmas ornaments, 6,000 Christmas ornaments, 50,000 trims50,000 trims, and anything else you can name if it , and anything else you can name if it pertains to Christmas.pertains to Christmas.

Source: George Whalin, Source: George Whalin, Retail SuperstarsRetail Superstars

Virtual tour: www.retailsuperstars.comVirtual tour: www.retailsuperstars.com

WallopWalmart16*WallopWalmart16*

*Or: Why it’s so ABSURDLY EASYABSURDLY EASY to BEATBEAT a GIANTGIANT Company

The “Small Guys” Guide: Wallop Walmart16

**Niche-aimed.Niche-aimed. (Never, ever “all things for all people,” a “mini- (Never, ever “all things for all people,” a “mini-Walmart.)Walmart.)

**Never attack the monsters head on!Never attack the monsters head on! (Instead steal niche (Instead steal niche business and lukewarm customers.)business and lukewarm customers.)

**““DramaticallDramatically y DifferentDifferent”” (La Difference ... within our community, (La Difference ... within our community,

our industry regionally, etc … is as obvious as the end of one’s nose!) our industry regionally, etc … is as obvious as the end of one’s nose!) (THIS IS WHERE MOST MIDGETS COME UP SHORT.)(THIS IS WHERE MOST MIDGETS COME UP SHORT.)

**Compete on value/experience/intimacy, not price.Compete on value/experience/intimacy, not price. (You (You ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.)ain’t gonna beat the behemoths on cost-price in 9.99 out of 10 cases.)

**Emotional bond with Clients, Vendors.Emotional bond with Clients, Vendors. (BEAT THE BIGGIES (BEAT THE BIGGIES ON EMOTION/CONNECTION!!)ON EMOTION/CONNECTION!!)


**Hands-on, emotional leadership.Hands-on, emotional leadership. (“We are a great & (“We are a great & cool & intimate & joyful & dramatically different team working to cool & intimate & joyful & dramatically different team working to transform our Clients lives via Consistently Incredible transform our Clients lives via Consistently Incredible Experiences!”)Experiences!”)

**A community star!A community star! (“Sell” local-ness per se. Sell the hell (“Sell” local-ness per se. Sell the hell out of it!)out of it!)

**An incredible experience, from the first to last An incredible experience, from the first to last moment—and then in the follow-up!moment—and then in the follow-up! (“These guys (“These guys are cool! They ‘get’ me! They love me!”)are cool! They ‘get’ me! They love me!”)

**DESIGN DRIVEN!DESIGN DRIVEN! (“Design” is a premier weapon-in- (“Design” is a premier weapon-in-pursuit-of-the sublime for small-ish enterprises, including the pursuit-of-the sublime for small-ish enterprises, including the professional services.)professional services.)


**Employer of choice.Employer of choice. (A very cool, well-paid (A very cool, well-paid place to work/learning and growth experience in at place to work/learning and growth experience in at least the short term … marked by notably progressive least the short term … marked by notably progressive policies.) (THIS IS EMINENTLY DO-ABLE!!)policies.) (THIS IS EMINENTLY DO-ABLE!!)

**Sophisticated use of information Sophisticated use of information technologytechnology. (Small-“ish” is no excuse for “small . (Small-“ish” is no excuse for “small aims”/execution in IS/IT!)aims”/execution in IS/IT!)

**Web-power!Web-power! (The Web can make very small very (The Web can make very small very big … if the product-service is super-cool and one big … if the product-service is super-cool and one purposefully masters buzz/viral marketing.)purposefully masters buzz/viral marketing.)

**Innovative!Innovative! (Must keep renewing and expanding (Must keep renewing and expanding and revising and re-imagining “the promise” to and revising and re-imagining “the promise” to employees, the customer, the community.)employees, the customer, the community.)


**Brand-Lovemark* Brand-Lovemark* (*Kevin Roberts)(*Kevin Roberts) Maniacs Maniacs! ! (“Branding” is not just for big folks with big budgets. And modest (“Branding” is not just for big folks with big budgets. And modest size is actually a Big Advantage in becoming a local-regional-size is actually a Big Advantage in becoming a local-regional-niche “lovemark.”)niche “lovemark.”)

**Focus on women-as-clients.Focus on women-as-clients. (Most don’t. How stupid.) (Most don’t. How stupid.)

**Excellence!Excellence! (A small player … per me … (A small player … per me …

has no right or reason to exist unless they are in Relentless has no right or reason to exist unless they are in Relentless Pursuit of Excellence. One earns the right—one damn day and Pursuit of Excellence. One earns the right—one damn day and client experience at a time!—to beat the Big Guys in your chosen client experience at a time!—to beat the Big Guys in your chosen niche!)niche!)

Univ. of Maryland/Census Bureau/1992-2005Univ. of Maryland/Census Bureau/1992-2005

% of USA % of USA netnet jobs added from jobs added from

startupsstartups??????Source: Source: Bloomberg BusinessWeekBloomberg BusinessWeek

100100%%

If the regimental commander lost most If the regimental commander lost most of his 2nd lieutenants and 1st of his 2nd lieutenants and 1st

lieutenants and captains and majors, it lieutenants and captains and majors, it

would be a tragedy. would be a tragedy. If he If he lost his lost his

serserggeants it eants it would be a would be a

catastrocatastropphehe..

#1#1 cause of cause of

employee employee Dis-satisfaction?Dis-satisfaction?

Employee retention & satisfaction:Employee retention & satisfaction:

OverwhelminOverwhelminggllyy based on the based on the

first-line first-line manamanagger!er!

Source: Marcus Buckingham & Curt Coffman, Source: Marcus Buckingham & Curt Coffman, First, Break All First, Break All the Rules: What the World’s Greatest Managers Do Differentlythe Rules: What the World’s Greatest Managers Do Differently

problem #1.Opportunity

#1.

XFX = XFX = #1#1

Never Never waste a waste a lunch!lunch!

““XFXXFX Social Social Accelerators.” Accelerators.”

1. EVERYONE’s [more or less] JOB #1: Make friends in other 1. EVERYONE’s [more or less] JOB #1: Make friends in other functions! functions! (Purposefully. Consistently. Measurably.)(Purposefully. Consistently. Measurably.)2. “Do lunch” with people in other functions!! Frequently!! 2. “Do lunch” with people in other functions!! Frequently!! (Minimum 10% to 25% for everyone? (Minimum 10% to 25% for everyone? Measured.)Measured.)3. Ask peers in other functions for references so you can become 3. Ask peers in other functions for references so you can become conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-ism.)ism.)4. Invite counterparts in other functions to your team meetings. 4. Invite counterparts in other functions to your team meetings. Religiously. Ask them to present “cool stuff” from “their world” to Religiously. Ask them to present “cool stuff” from “their world” to your group. (B-I-G deal; useful and respectful.)your group. (B-I-G deal; useful and respectful.)5.5. PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ONCE A DAYONCE A DAY … make a short call or visit or send an email of “Thanks” for some … make a short call or visit or send an email of “Thanks” for some sort of XFX gesture by your folks and some other function’s folks.)sort of XFX gesture by your folks and some other function’s folks.)6. Present counterparts in other functions awards for service to 6. Present counterparts in other functions awards for service to your group. Tiny awards at least weekly; and an your group. Tiny awards at least weekly; and an “Annual All-Star “Annual All-Star Supporters [from other groups] Banquet” modeled after superstar Supporters [from other groups] Banquet” modeled after superstar salesperson banquets.salesperson banquets.7. Discuss—A SEPARATE AGENDA ITEM—good and problematic acts 7. Discuss—A SEPARATE AGENDA ITEM—good and problematic acts of cross-functional co-operation at every Team Meeting.of cross-functional co-operation at every Team Meeting.

““XFX XFX SocialSocial Accelerators.” Accelerators.”

8. When someone in another function asks for assistance, respond 8. When someone in another function asks for assistance, respond with … with … more … alacrity than you would if it were the person in the more … alacrity than you would if it were the person in the cubicle next to yours—or even more than you would for a key cubicle next to yours—or even more than you would for a key external customer. (Remember, XFX is the key to Customer external customer. (Remember, XFX is the key to Customer Retention which is in turn the key to “all good things.”)Retention which is in turn the key to “all good things.”)9.9. Do not bad mouth ... “the damned accountants,” “the bloody HR Do not bad mouth ... “the damned accountants,” “the bloody HR guy.” Ever.guy.” Ever. (Bosses: Severe penalties for this—including (Bosses: Severe penalties for this—including public public tongue-lashings.)tongue-lashings.)10. Get physical!! 10. Get physical!! “Co-location” may well be the most powerful “Co-location” may well be the most powerful “culture change lever.” “culture change lever.” Physical X-functional proximity is almost a Physical X-functional proximity is almost a … … guarantee … of remarkably improved co-operation—to aid this guarantee … of remarkably improved co-operation—to aid this one needs flexible workspaces that can be mobilized for a team in a one needs flexible workspaces that can be mobilized for a team in a flash.flash.11. Formal evaluations. 11. Formal evaluations. Everyone, starting with the receptionist, Everyone, starting with the receptionist, should have a significant XF rating component in their evaluation.should have a significant XF rating component in their evaluation. (The “XFX Performance” should be among the Top 3 items in all (The “XFX Performance” should be among the Top 3 items in all managers’ evaluations.)managers’ evaluations.)12. Demand XF experience for, especially, senior jobs. For example, 12. Demand XF experience for, especially, senior jobs. For example, the U.S. military requires all would-be generals and admirals to the U.S. military requires all would-be generals and admirals to have served a full tour in a job whose only goals were cross-have served a full tour in a job whose only goals were cross-functional achievements.functional achievements.13. XFX is … PERSONAL … as well as about organizational 13. XFX is … PERSONAL … as well as about organizational effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to personal success—in terms of organizational career, personal success—in terms of organizational career, freelancer/Brand You, or as entrepreneur. freelancer/Brand You, or as entrepreneur.

Lunch Lunch > SAP/> SAP/OracleOracle

““Allied commands depend Allied commands depend on mutual confidence on mutual confidence [and this confidence] [and this confidence] is gained, above all is gained, above all

through the through the develodeveloppmentment ofof friendshifriendshippss.”.”

——General D.D. Eisenhower, General D.D. Eisenhower, Armchair GeneralArmchair General* (05.08)* (05.08)

*“Perhaps his most outstanding ability [at West Point]*“Perhaps his most outstanding ability [at West Point] was the ease with which he was the ease with which he made friends and earned the made friends and earned the

trusttrust of fellow cadets who came from widely varied of fellow cadets who came from widely varied backgrounds; it was a quality that would pay greatbackgrounds; it was a quality that would pay great dividends during his future coalition command.”dividends during his future coalition command.”

The … The … 5H5H

“Theory of “Theory of Everything” Everything”

All you need to know …All you need to know …

HiltonHiltonHowardHowardHerbHerbHsiehHsiehHoratioHoratio

Conrad Hilton, at a gala Conrad Hilton, at a gala celebrating his career,celebrating his career,

was asked, was asked, “What was the most important lesson you’ve learned in your long and distinguished

career?” His immediate His immediate answer …answer …

““remember remember to tuck the to tuck the

shower curtain shower curtain inside the inside the bathtubbathtub””

““Execution Execution isis strategy.”strategy.”

—Fred Malek—Fred Malek

““In real life, strategyIn real life, strategy is actually very is actually very

straightforward. Pickstraightforward. Pick a general direction … a general direction …

andand imimpplementlement likelike hellhell”” —Jack Welch—Jack Welch

XX* ** XX* ** isis STRATEGY. STRATEGY.

XX XX isis DIFFERENTIATION. DIFFERENTIATION.

XX XX isis DE-COMODITIZATION.*** DE-COMODITIZATION.***

XX XX isis VALUE-ADDED. VALUE-ADDED.

*e*eXXcellence in ecellence in eXXecutionecution**GE, Exxon Mobil, PepsiCo, Hyundai+, very few “etc.”**GE, Exxon Mobil, PepsiCo, Hyundai+, very few “etc.”*** *** “Commodity” is a state of mind! PERIOD! is a state of mind! PERIOD!

Sunday “Drive By”:Sunday “Drive By”: The CEO of a very successful mid-sized The CEO of a very successful mid-sized bank, in the Mid-west, attended a seminar of mine in bank, in the Mid-west, attended a seminar of mine in Northern California in the mid-80s—but I remember the Northern California in the mid-80s—but I remember the following as if it were yesterday. I’ve forgotten the following as if it were yesterday. I’ve forgotten the specific context, but I recall him saying to me, pretty specific context, but I recall him saying to me, pretty

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

MBWMBWAA

Managing By Wandering Around/Managing By Wandering Around/HPHP

““You have to You have to treat your treat your

employees like employees like customers.”customers.” —Herb —Herb

Kelleher, upon being asked his “secret to success”Kelleher, upon being asked his “secret to success”

Source: Joe Nocera, Source: Joe Nocera, NYTNYT, “Parting Words of an Airline Pioneer,” on the occasion of , “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots union took out a full-page ad in union took out a full-page ad in USA Today USA Today thanking HK for all he had done; thanking HK for all he had done; across the way in Dallas American Airlines’ pilots were picketing the Annual across the way in Dallas American Airlines’ pilots were picketing the Annual

Meeting)Meeting)

"If you want staff to "If you want staff to give great service, give great service, give great service to give great service to staff."staff." —Ari Weinzweig, Zingerman's

TP: TP: “How to throw

$500,000 into

the sea in one easy

lesson!!”

< CAPEX< CAPEX> People!> People!

2X2XSource: Container Store/increase average sale per shopperSource: Container Store/increase average sale per shopper

““We went through the hotel [soon after acquiring it] We went through the hotel [soon after acquiring it]

and made a ... and made a ... ‘‘considerationconsideration renovationrenovation.’.’ Instead of redoing bathrooms, dining rooms, and guest Instead of redoing bathrooms, dining rooms, and guest

rooms, we gave employees new uniforms, bought rooms, we gave employees new uniforms, bought flowers and fruit, and changed colors. Our focus was flowers and fruit, and changed colors. Our focus was totally on the staff. They were the ones we wanted to totally on the staff. They were the ones we wanted to

make happy. We wanted them to wake up every make happy. We wanted them to wake up every morning excited about a new day at work.”morning excited about a new day at work.”

““The path to a hostmanship culture paradoxically does The path to a hostmanship culture paradoxically does not go through the guest. In fact it wouldn’t be totally not go through the guest. In fact it wouldn’t be totally wrong to say that the guest has nothing to do with it. wrong to say that the guest has nothing to do with it. Hostmanship leaders focus on their employees. What Hostmanship leaders focus on their employees. What drives exceptionalism is finding the right people and drives exceptionalism is finding the right people and

getting them to love their work and see it as a passion. getting them to love their work and see it as a passion. The guest comes into the picture only when you are The guest comes into the picture only when you are

ready to ask, ‘Would you prefer to stay at a hotel ready to ask, ‘Would you prefer to stay at a hotel where the staff love their work or where management where the staff love their work or where management

has made customers its highest priority?’”has made customers its highest priority?’”Source:Source: Hostmanship: The Art of Making People Feel WelcomeHostmanship: The Art of Making People Feel Welcome, , Jan Gunnarsson and Olle Jan Gunnarsson and Olle

BlohmBlohm

WegmansWegmans

..

Zappos 10 Corporate ValuesZappos 10 Corporate Values

Deliver Deliver “WOW!”“WOW!” through service. through service.Embrace and drive change.Embrace and drive change.Create fun and a little weirdness.Create fun and a little weirdness.Be adventurous, creative, and open-minded.Be adventurous, creative, and open-minded.Pursue growth and learning.Pursue growth and learning.Build open and honest relationships withBuild open and honest relationships with communication.communication.Build a positive team and family spirit.Build a positive team and family spirit.Do more with less.Do more with less.Be passionate and determined.Be passionate and determined.Be humble.Be humble.

Source: Source: Delivering HappinessDelivering Happiness, Tony Hsieh, CEO, Zappos.com, Tony Hsieh, CEO, Zappos.com

Kevin Roberts’ CredoKevin Roberts’ Credo

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

10. Avoid moderationAvoid moderation!!

The greatest dangerThe greatest dangerfor most of usfor most of us

is not that our aim isis not that our aim istoo hightoo high

and we miss it,and we miss it,but that it isbut that it is

too lowtoo lowand we reach it.and we reach it.

MichelangeloMichelangelo

On ADMIRAL HORATIO

NELSON: “[other] “[other] admirals more admirals more frightened of frightened of losing than losing than

anxious to win”anxious to win”

5H5H: : HHilton, ilton, HHoward, oward, HHerb, erb, HHsieh, sieh, HHoratiooratio

****Sweat the details!Sweat the details!****Stay in touch!Stay in touch!****It’s all about the people! It’s all about the people! ****WowWow****Offense!Offense!

LONGLONG

Tom Peters’Tom Peters’

Excellence.Excellence.Always.Always.

ComericaComericaDallas/13 October 2010Dallas/13 October 2010

(Slides at tompeters.com)(Slides at tompeters.com)

Part Part ONEONE

Little =Little =

BIGBIG***Thank you, Mr. Prime Minister*Thank you, Mr. Prime Minister

Bag sizes = New markets:Bag sizes = New markets:

$B$BSource: PepsiCoSource: PepsiCo

Big carts =Big carts =

1.5X1.5XSource: WalmartSource: Walmart

Conveyance: Kingfisher Air Conveyance: Kingfisher Air Location: Approach to New DelhiLocation: Approach to New Delhi

““May I clean May I clean your your

glasses, glasses, sir?”sir?”

2,000,0002,000,000

GriffinGriffin:: Music in the parking Music in the parking lot; professional musicians in lot; professional musicians in

the lobby the lobby (7/week, 3-4hrs/day)(7/week, 3-4hrs/day); ;

5 5 pianospianos ; ;

volunteers volunteers (120-140 hrs arts & (120-140 hrs arts &

entertainment per month).entertainment per month).

Source: Source: Putting Patients FirstPutting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel, Susan Frampton, Laura Gilpin, Patrick Charmel

Carl’sCarl’s Street- Street-

Sweeper Sweeper

<TG<TGWWand …and …

>TG>TGRR[Things Gone [Things Gone WRONGWRONG-Things Gone -Things Gone RIGHTRIGHT]]

The Value-added Ladder

Scintillating Scintillating EXPERIENCESEXPERIENCES

ServicesServicesGoodsGoods

Raw Materials Raw Materials

““Experiences Experiences are as distinct are as distinct

from services as from services as services are from services are from goods.”goods.” —Joe Pine & Jim Gilmore, The

Experience Economy: Work Is Theatre & Every Business a Stage

And in And in Milwaukee …Milwaukee …

Experience: “Rebel Lifestyle!”

“What we sell is the “What we sell is the ability for a 43-year-old ability for a 43-year-old accountant to dress in accountant to dress in

black leather, ride black leather, ride through small towns and through small towns and

have people be afraidhave people be afraid of him.” of him.”

HarleyHarley exec, quoted in Results-Based Leadership

““Forget Forget ChinaChina, , IndiaIndia and the and the InternetInternet: :

Economic Growth Is Economic Growth Is Driven by Driven by

WomenWomen.”.”

Source: Headline, Economist

W W > > 2X2X (C + (C + I)*I)*

*“Women now drive the global economy. Globally, they control about*“Women now drive the global economy. Globally, they control about

$20 trillion$20 trillion in consumer spending, and that figure could climb as high as in consumer spending, and that figure could climb as high as

$28 trillion$28 trillion in the next five years. Their in the next five years. Their $13 trillion$13 trillion in total yearly earnings in total yearly earnings

could reach could reach $18 trillion$18 trillion in the same period. In aggregate, women represent a in the same period. In aggregate, women represent a growth market bigger than China and India combined—more than twice as big in 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 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 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. Consider confidant that they have a winning strategy when it comes to women. Consider Dell’s …”Dell’s …” —Michael Silverstein and Kate Sayre, “The Female Economy,” —Michael Silverstein and Kate Sayre, “The Female Economy,” HBRHBR, ,

09.0909.09

““Women Women areare thethe

majority majority market”market”

—Fara Warner/—Fara Warner/The Power of the PurseThe Power of the Purse

LowesLowes!!

7/17/133

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““People turning 50 People turning 50

today have today have more more thanthan halfhalf of of their adult life their adult life

ahead of them.”ahead of them.” —Bill

Novelli, 50+: Igniting a Revolution to Reinvent America

““Marketers’ attempts at reaching Marketers’ attempts at reaching those over 50 have been miserably those over 50 have been miserably

unsuccessful.unsuccessful. No market’s No market’s motivations andmotivations and

needs are so needs are so poorlpoorlyy

understoodunderstood.”.” ——Peter Francese, founding publisher, Peter Francese, founding publisher, American DemographicsAmerican Demographics

Up,Up, Up,Up, Up, Up,

UpUp

the Value-added Ladder.the Value-added Ladder.

$50B+*$50B+**IBM Global Services/*IBM Global Services/

“Systems integrator of choice”“Systems integrator of choice”

Planetary Rainmaker-in-Chief!

“Palmisano’s strategy is “Palmisano’s strategy is to expand tech’s to expand tech’s

borders by pushing borders by pushing users—and entire users—and entire

industries—industries—toward toward radicallradicallyy different different

business modelsbusiness models.. The payoff for

IBM would be access to an ocean of revenue—Palmisano estimates it at $500 billion a year$500 billion a year —that technology

companies have never been able to touch.” —Fortune

““Big Brown’s New Bag: UPS Big Brown’s New Bag: UPS Aims to Be the Traffic Aims to Be the Traffic Manager for Corporate Manager for Corporate

AmericaAmerica”” —Headline/—Headline/BWBW

““UPS wants to take over the UPS wants to take over the sweet spot in the endless sweet spot in the endless loop of goods, information loop of goods, information

and capital that all the and capital that all the packages packages [it moves][it moves] represent represent.”.” ——

ecompany.com ecompany.com (E.g., (E.g., UPS LogisticsUPS Logistics manages the logistics of 4.5M Ford vehicles, manages the logistics of 4.5M Ford vehicles,

from 21 mfg. sites to 6,000 NA dealers) from 21 mfg. sites to 6,000 NA dealers)

““THE GIANT STALKING BIG OIL: THE GIANT STALKING BIG OIL:

How How SchlumbergerSchlumberger Is Rewriting the Rules of the Is Rewriting the Rules of the

Energy Game.”:Energy Game.”: “IPM [Integrated “IPM [Integrated Project Management] strays from Project Management] strays from [Schlumberger’s] traditional role [Schlumberger’s] traditional role as a service provider and moves as a service provider and moves

deeper into areas once dominated deeper into areas once dominated by the majors.”by the majors.”

Source: Source: BusinessWeekBusinessWeek cover story, January 2008 cover story, January 2008

MasterCard MasterCard AdvisorsAdvisors

I. LAN Installation Co. (3%)

II. Geek Squad. (30%.)

III. Acquired by BestBuy.

IV. Flagship of BestBuyFlagship of BestBuy Wholesale “Solutions” Wholesale “Solutions” Strategy Makeover. Strategy Makeover.

HuHuggee:: Customer

SatisfactionSatisfaction versus Customer

SuccessSuccess

“ ‘“ ‘Results’ are Results’ are measured by the measured by the

successsuccess of all those of all those who have purchased who have purchased

your product or your product or service”service” —Jan Gunnarsson & Olle Blohm, The —Jan Gunnarsson & Olle Blohm, The

Welcoming LeaderWelcoming Leader

The Value-added Ladder/ OPPORTUNITY-SEEKINGOPPORTUNITY-SEEKING

Customer Success/ Customer Success/ Gamechanging Gamechanging

SolutionsSolutionsScintillating ExperiencesScintillating Experiences

ServicesServicesGoodsGoods

Raw Materials Raw Materials

Part Part TWOTWO

19821982

Excellence1982: The Bedrock “Eight Basics”Excellence1982: The Bedrock “Eight Basics”

1. A Bias for 1. A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. 3. AutonomAutonomyy and and EntreEntreppreneurshireneurshipp4. Productivity Through 4. Productivity Through PeoPeopplele5. 5. Hands OnHands On, , Value-DrivenValue-Driven6. 6. Stick toStick to the Knitting the Knitting7. 7. SimSimpplele Form, Form, LeanLean Staff Staff8. Simultaneous 8. Simultaneous Loose-TightLoose-Tight Properties Properties

““Breakthrough” 82*Breakthrough” 82*

People! People! CustomersCustomers

! ! Action! Action! Values! Values!

**In Search of ExcellenceIn Search of Excellence

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

Hard Is Hard Is SoftSoft (Plans, (Plans, ##ss))

Soft Is Soft Is HardHard (people, (people, customers, values, customers, values,

relationships)relationships)

20072007SydneSydne

yy

… … no less than no less than CathedralsCathedrals

in which the full and in which the full and awesome power of the awesome power of the

Imagination and Spirit and Imagination and Spirit and native Entrepreneurial flairnative Entrepreneurial flair

of diverse individualsof diverse individuals is is unleashed in passionate unleashed in passionate pursuit of … pursuit of … ExcellenceExcellence..

Oath of Office:Oath of Office: Managers/Servant Leaders Managers/Servant Leaders

Our goal is to serve our customers brilliantly and profitably Our goal is to serve our customers brilliantly and profitably overover the long haul.the long haul.Serving our customers brilliantly and profitably over the longServing our customers brilliantly and profitably over the long haul is a product of brilliantly serving, over the long haul, haul is a product of brilliantly serving, over the long haul, thethe people who serve the customer.people who serve the customer.

Hence, our job as leaders—the alpha and the omega andHence, our job as leaders—the alpha and the omega and everything in between—is abetting the sustained growth everything in between—is abetting the sustained growth andand success and engagement and enthusiasm and commitment success and engagement and enthusiasm and commitment toto Excellence of those, one at a time, who directly or indirectlyExcellence of those, one at a time, who directly or indirectly serve the ultimate customer.serve the ultimate customer.

We—leaders of every stripe—are in the “Human Growth andWe—leaders of every stripe—are in the “Human Growth and Development and Success and Aspiration to ExcellenceDevelopment and Success and Aspiration to Excellence business.”business.”““We” We” [leaders][leaders] only grow when “they” only grow when “they” [each and every one of our colleagues][each and every one of our colleagues] areare growing.growing.““We” We” [leaders][leaders] only succeed when “they” only succeed when “they” [each and every one of our [each and every one of our colleagues]colleagues]

are succeeding.are succeeding.““We” We” [leaders][leaders] only energetically march toward Excellence when only energetically march toward Excellence when “ “they” they” [each and every one of our colleagues][each and every one of our colleagues] are energetically marching are energetically marching toward Excellence.toward Excellence.Period.Period.

““Managing winds up being Managing winds up being the management of the the management of the allocation of resources allocation of resources

against tasks. Leadership against tasks. Leadership

focuses on people. focuses on people. MMyy definition of a leader definition of a leader

is someone who is someone who helhelpps s ppeoeopple le

succeedsucceed.”.” —Carol Bartz, Yahoo!—Carol Bartz, Yahoo!

““The The ONEONE Question”: Question”: “In the last year [3 years, current job], “In the last year [3 years, current job],

name the … name the … three three peoplepeople … whose growth you’ve … whose growth you’ve

most contributed to. Please explain where they were at the most contributed to. Please explain where they were at the beginning of the year, where they are today, and where they are beginning of the year, where they are today, and where they are

heading in the next 12 months. Please explain in painstaking detail heading in the next 12 months. Please explain in painstaking detail your development strategy in each case. Please tell me your biggest your development strategy in each case. Please tell me your biggest development disappointment—looking back, could you or would you development disappointment—looking back, could you or would you have done anything differently? Please tell me about your greatest have done anything differently? Please tell me about your greatest

development triumph—and disaster—in the last five years. Whatdevelopment triumph—and disaster—in the last five years. What are the ‘three big things’ you’ve learned about helping people are the ‘three big things’ you’ve learned about helping people

grow along the way.”grow along the way.”

Brand Brand = =

Talent.Talent.

Our Mission

To develop and manage To develop and manage talent;talent;

to apply that talent,to apply that talent,throughout the world, throughout the world,

for the benefit of clients;for the benefit of clients;to do so in partnership; to do so in partnership;

to do so with profit.to do so with profit.

WPP

““Business has to give people enriching, Business has to give people enriching,

rewarding lives … rewarding lives … or it's or it's simply not simply not

worth worth doingdoing.”.”

——Richard BransonRichard Branson

““I have always I have always believed that the believed that the

purpose of the purpose of the corporation is to be corporation is to be

a blessing to the a blessing to the employees.”employees.” —Boyd Clarke —Boyd Clarke

Part Part THREETHREE

““The doctor The doctor interruptsinterrupts after …*after …*

*Source: Jerome Groopman, *Source: Jerome Groopman, How Doctors ThinkHow Doctors Think

1818 secondsseconds

[An obsession with] Listening is ... the ultimate mark[An obsession with] Listening is ... the ultimate mark of of RespectRespect..Listening is ... the heart and soul of Listening is ... the heart and soul of EngagementEngagement..Listening is ... the heart and soul of Listening is ... the heart and soul of KindnessKindness..Listening is ... the heart and soul of Listening is ... the heart and soul of ThoughtfulnessThoughtfulness..Listening is ... the basis for true Listening is ... the basis for true Collaboration.Collaboration.Listening is ... the basis for true Listening is ... the basis for true PartnershipPartnership..Listening is ... a Listening is ... a Team SportTeam Sport..Listening is ... a Listening is ... a Developable Individual SkillDevelopable Individual Skill.* .* (*Though women (*Though women are are farfar better at it than men.) better at it than men.)

Listening is ... the basis for Listening is ... the basis for CommunityCommunity..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures that workJoint Ventures that work..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures thatJoint Ventures that lastlast..Listening is ... the core of Listening is ... the core of effective Cross-functional effective Cross-functional Communication* Communication* (*Which is in turn Attribute #1 of (*Which is in turn Attribute #1 of organizational effectiveness.)organizational effectiveness.)

[cont.][cont.]

Listening is ... the engine of Listening is ... the engine of superior EXECUTION.superior EXECUTION.Listening is ... the key to Listening is ... the key to making the Sale.making the Sale.Listening is ... the key to Listening is ... the key to Keeping the Customer’s BusinessKeeping the Customer’s Business..Listening is ... the engine of Listening is ... the engine of Network development.Network development.Listening is ... the engine of Listening is ... the engine of Network maintenanceNetwork maintenance..Listening is ... the engine of Listening is ... the engine of Network expansionNetwork expansion..Listening is ... Social Networking’s Listening is ... Social Networking’s “secret weapon.”“secret weapon.”Listening is ... Listening is ... Learning.Learning.Listening is ... the Listening is ... the sine qua non of Renewalsine qua non of Renewal..Listening is ... the Listening is ... the sine qua non of Creativitysine qua non of Creativity..Listening is ... the Listening is ... the sine qua non of Innovationsine qua non of Innovation..Listening is ... the core of Listening is ... the core of taking Diverse opinions aboardtaking Diverse opinions aboard..Listening is ... Listening is ... StrategyStrategy..Listening is ... Listening is ... Source #1 of “Value-added.”Source #1 of “Value-added.”Listening is ... Listening is ... Differentiator #1.Differentiator #1.Listening is ... Listening is ... Profitable.*Profitable.* (*The “R.O.I.” from listening is higher than(*The “R.O.I.” from listening is higher than that from any other single activity.)that from any other single activity.)

Listening is … the bedrock which underpins a Listening is … the bedrock which underpins a Commitment toCommitment to EXCELLENCEEXCELLENCE

ListenListen = Profession = Study = practice = evaluation = = Profession = Study = practice = evaluation = Enterprise value:

"We listen intently "We listen intently to and fully to and fully

engageengage all with whom all with whom

we work."we work."

*Listening is of the*Listening is of the

utmost … utmost … strategic importance! importance!

*Listening is a proper … *Listening is a proper …

core value ! !

*Listening is … *Listening is … trainable !!

*Listening is a … *Listening is a … profession ! !

““The The fourfour most most importantimportant wordswords in any in any

organization are …organization are …

The four most important words in any organizationThe four most important words in any organization

are …are … “What do “What do youyou

think?”think?”

Source: courtesy Dave Wheeler, posted at tompeters.comSource: courtesy Dave Wheeler, posted at tompeters.com

““The deepest The deepest human need is human need is

the … the … need to be need to be aappppreciatedreciated.”.”

—William James—William James

““One kind word can One kind word can warm three winter warm three winter

months.”months.” – Japanese Proverb– Japanese Proverb

““I regard I regard aappoloologgizinizing as the g as the most magical, healing, most magical, healing,

restorative gesture human restorative gesture human beings can make. It is the beings can make. It is the

centerpiece of my work with centerpiece of my work with executives who want to get executives who want to get better.”better.” —Marshall Goldsmith—Marshall Goldsmith, What Got You , What Got You

Here Won’t Get You There: How Successful People BecomeHere Won’t Get You There: How Successful People Become Even More Successful. Even More Successful.

Relationships (of all varieties): THERE THERE ONCE WAS A TIME WHEN A ONCE WAS A TIME WHEN A

THREETHREE--MINUTEMINUTE PHONEPHONE CALLCALL WOULD HAVE AVOIDED WOULD HAVE AVOIDED

SETTING OFF THE DOWNWARD SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A SPIRAL THAT RESULTED IN A

COMPLETE RUPTURE.COMPLETE RUPTURE.

The “krp The “krp Theory of Theory of

Everything”Everything”

K = R = K = R = PP

Kindness = Repeat business = Profit.Kindness = Repeat business = Profit.

K = R = P/Kindness = Repeat business = Profit/K = R = P/Kindness = Repeat business = Profit/Kindness:Kindness:

Kind.Kind.Thoughtful.Thoughtful.Decent. Decent. Caring. Caring. Attentive.Attentive.Engaged.Engaged.Listens well/obsessively.Listens well/obsessively.Appreciative.Appreciative.Open.Open.Visible.Visible.Honest.Honest.Responsive.Responsive.On time all the time.On time all the time.Apologizes with dispatch for screwups.Apologizes with dispatch for screwups.““Over”-reacts to screwups of any magnitude.Over”-reacts to screwups of any magnitude.““Professional” in all dealings.Professional” in all dealings.Optimistic.Optimistic.Understands that kindness to staff breeds kindness to Understands that kindness to staff breeds kindness to others/outsiders.others/outsiders.Applies throughout the “supply chain.”Applies throughout the “supply chain.”Applies to 100% of customer’s staff.Applies to 100% of customer’s staff.Explicit part of values statement.Explicit part of values statement.Basis for evaluation of 100% of our staff.Basis for evaluation of 100% of our staff.

Press Ganey AssocPress Ganey Assoc:: 139,380139,380 former former patients from patients from 225225 hospitals: hospitals:

nonenone of THE top 15 of THE top 15

factors determining factors determining PPatient atient

SSatisfaction referred to patient’s atisfaction referred to patient’s health health outcomeoutcome

P.S.P.S. directldirectly related to y related to StaffStaff InteractionInteraction

P.P.S.P.P.S. directldirectly correlated with y correlated with EmploEmployyee ee SatisfactionSatisfaction

Source: Source: Putting Patients FirstPutting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel, Susan Frampton, Laura Gilpin, Patrick Charmel

““There is a misconception that supportive interactions require There is a misconception that supportive interactions require more staff or more time and are therefore more costly. Although more staff or more time and are therefore more costly. Although

labor costs are a substantial part of any hospital budget, the labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget. interactions themselves add nothing to the budget.

Kindness is Kindness is freefree.. Listening to patients or answering their Listening to patients or answering their

questions costs nothing. It can be argued that negative questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive to their interactions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very costly. … needs or limiting their sense of control—can be very costly. …

Angry, frustrated or frightened patients may be combative, Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring far more time withdrawn and less cooperative—requiring far more time than it would have taken to interact with them initially in a than it would have taken to interact with them initially in a

positive way.”positive way.” ——Putting Patients FirstPutting Patients First, Susan Frampton, , Susan Frampton, Laura Gilpin, Patrick CharmelLaura Gilpin, Patrick Charmel

““Courtesies of a small Courtesies of a small and trivial character are and trivial character are

the ones which strike the ones which strike deepest in the grateful deepest in the grateful

and appreciating heart.”and appreciating heart.”

—Henry Clay

#10#10

We assume everybody knows how We assume everybody knows how to do the “manager”/ “leader” to do the “manager”/ “leader” “stuff”:“stuff”:

“ ‘“ ‘Listening,’ hey, everybody Listening,’ hey, everybody knows how to do that …”knows how to do that …”““I say ‘Thank you’ … when it’s I say ‘Thank you’ … when it’s merited.”merited.”““Of course we’re a ‘team.’”Of course we’re a ‘team.’”““If I screw up, I’ll admit it.”If I screw up, I’ll admit it.”““I know how to offer help, who I know how to offer help, who doesn’t?”doesn’t?”Etc.Etc.

#11#11

Five Or Less Five Or Less Words To Words To The WiseThe Wise

EXCELLENCE/Five Or Less Words To The WiseEXCELLENCE/Five Or Less Words To The Wise

4 most important words: 4 most important words: “What do you think?”“What do you think?” (Dave Wheeler @ (Dave Wheeler @ tompeters.com: “Most important 4tompeters.com: “Most important 4 words in an organization.”)words in an organization.”)4 most important words: 4 most important words: “How can I help?”“How can I help?” (Boss as CHRO/ (Boss as CHRO/ Chief Hurdle Removal Officer)Chief Hurdle Removal Officer)2 most important words: 2 most important words: “Thank you!”“Thank you!” (Appreciation/ (Appreciation/ Recognition)Recognition)2 most important words: 2 most important words: “All yours.”“All yours.” (“Hands-off” delegation/ (“Hands-off” delegation/ Respect/Trust)Respect/Trust)3 most important words: 3 most important words: “I’m going out.”“I’m going out.” (MBWA/Managing By (MBWA/Managing By Wandering Around/In touch!)Wandering Around/In touch!)2 most important words: 2 most important words: “I’m sorry.”“I’m sorry.” (Power of unconditional (Power of unconditional apology = Stunning! Marshallapology = Stunning! Marshall Goldsmith: #1 exec issue)Goldsmith: #1 exec issue)5 most important words: 5 most important words: “Did you tell the customer?”“Did you tell the customer?” (Over- (Over- communicate) communicate) 2 most important words: 2 most important words: “She says …”“She says …” (“She” is the customer!) (“She” is the customer!)


2 most important words: 2 most important words: “Yes ma’am.”“Yes ma’am.” (Women are more often (Women are more often than not the best managers.) than not the best managers.) 2 most important words: 2 most important words: “Try it!”“Try it!” (My only “for sure” in 44 (My only “for sure” in 44 years:years: Herb Kelleher: Herb Kelleher: “We have a strategic“We have a strategic plan, it’s called doing things.”/plan, it’s called doing things.”/BillBill Parcells: Parcells: “Blame no one. Expect“Blame no one. Expect nothing. Do something.”nothing. Do something.”))3 most important words: 3 most important words: “Try it again!”“Try it again!” (My only “for sure” in (My only “for sure” in 4444 years: MOST TRIES WINS.)years: MOST TRIES WINS.)2 most important words: 2 most important words: “Good try!”“Good try!” (CELEBRATE “good (CELEBRATE “good failures.” Richard Farson/book:failures.” Richard Farson/book: Whoever Makes the Most MistakesWhoever Makes the Most Mistakes Wins. Wins. Samuel Beckett:Samuel Beckett: “Fail. Fail again. “Fail. Fail again. Fail better.”Fail better.”))3 most important words: 3 most important words: “At your service.”“At your service.” (Organizations exist (Organizations exist to serve. Period. Leaders live to serve.to serve. Period. Leaders live to serve. Period.)Period.)4 most important words: 4 most important words: “How are we doing?”“How are we doing?” (To customers, (To customers, regularly.)regularly.)4 most important words: 4 most important words: “How was Mary’s recital?”“How was Mary’s recital?” (Know your (Know your employees’ kids.)employees’ kids.)2 most important words: 2 most important words: “Let’s party!”“Let’s party!” (Celebrate “small wins” (Celebrate “small wins” atat the drop of a hat.) the drop of a hat.)


1 most important word: 1 most important word: “No.”“No.” (“To don’ts” > “To dos”) (“To don’ts” > “To dos”)1 most important word: 1 most important word: “Yes.”“Yes.” (Hey, give it a shot/Anon. quote: (Hey, give it a shot/Anon. quote: ““The best answer is always, ‘What theThe best answer is always, ‘What the hell.’”/hell.’”/Wayne Gretzky: Wayne Gretzky: “You miss“You miss 100% of the shots you don’t take.”100% of the shots you don’t take.”))2 most important words: 2 most important words: “Lunch today?”“Lunch today?” (“Social stuff” = Secret (“Social stuff” = Secret to problem/opportunity #1:/XFX/to problem/opportunity #1:/XFX/ cross-functional Excellence.)cross-functional Excellence.)4 most important words: 4 most important words: “Thank Dick in accounting.”“Thank Dick in accounting.” (Readily (Readily acknowledge help from otheracknowledge help from other functions.)functions.)2 most important words: 2 most important words: “After you.”“After you.” (Courtesy rules.) (Courtesy rules.)3 most important words: 3 most important words: “Thanks for coming.”“Thanks for coming.” (Civility. E.g., (Civility. E.g., bossboss acknowledges employee coming toacknowledges employee coming to her/his office.) her/his office.) 2 most important words: 2 most important words: “Great smile!”“Great smile!” (Note & acknowledge (Note & acknowledge good attitude.)good attitude.)1 most important word: 1 most important word: “Wow!”“Wow!” (The gold standard … for (The gold standard … for everything.) everything.) 1 most important word: 1 most important word: “EXCELLENT!”“EXCELLENT!” (The … ONLY … (The … ONLY … acceptable standard/aspiration.)acceptable standard/aspiration.)

Part Part FOURFOUR

#12#12

try it. Try it. Try it. try it. Try it. Try it. Try it. Try it. Try it.Try it. Try it. Try it.

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

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

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

1/401/40

““ExperimenExperiment t

fearlessly”fearlessly”Source: BusinessWeek, Type A Organization Strategies/

“How to Hit a Moving Target”—Tactic #1Tactic #1

““We made mistakes, of course. Most of them were We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the omissions we didn’t think of when we initially wrote the

software. software. We fixed them by doing it over and over, We fixed them by doing it over and over, again and again.again and again. We do the same today. While our We do the same today. While our competitors are still sucking their thumbs trying to competitors are still sucking their thumbs trying to

make the design perfect, we’re already on prototype make the design perfect, we’re already on prototype

versionversion ##55.. By the time our rivals areBy the time our rivals are

ready with wires and screws, we are on versionready with wires and screws, we are on version

##1010.. It gets back to It gets back to

planning versus actingplanning versus acting: : We act We act from day onefrom day one; ; others plan how others plan how toto planplan——for monthsfor months.”.” —Bloomberg by —Bloomberg by

BloombergBloomberg

““Fail.Fail. Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

““RewardReward excellent failures.

PunishPunish mediocre successes.”

Phil Daniels, Sydney exec

““In business, you In business, you rewardreward people for taking people for taking risksrisks..

When it When it doesn’tdoesn’t workwork outout you you ppromoteromote them-because them-because they were willing to try new they were willing to try new

things. If people tell me things. If people tell me they skied all day and never they skied all day and never fell down, I tell them to tryfell down, I tell them to try

a different mountain.” a different mountain.” —Michael Bloomberg (—Michael Bloomberg (BWBW/0625.07)/0625.07)

““You miss You miss

100100%%

of the shots of the shots you never you never

take.”take.” —Wayne—Wayne GretzkyGretzky

BLAME NOBODY.BLAME NOBODY.EXPECT EXPECT NOTHING.NOTHING.DO SOMETHING.DO SOMETHING.

Source: Locker room sign posted by football coach Bill ParcellsSource: Locker room sign posted by football coach Bill Parcells

#13#13

We We areare the the companycompany we keepwe keep

The “We are what we eat”The “We are what we eat”

axiom: axiom: At its core, At its core, evereveryy (!!!) (!!!) relationship-partnership decision relationship-partnership decision

(employee, vendor, customer, etc) is (employee, vendor, customer, etc) is a a stratestrateggicic decision about: decision about:

“Innovate,“Innovate, ‘Yes’ or ‘Yes’ or ‘No’ ” ”

Measure “Strangeness”/Portfolio QualityMeasure “Strangeness”/Portfolio Quality

StaffStaffConsultantsConsultants

VendorsVendorsOut-sourcing Partners Out-sourcing Partners (#, Quality)(#, Quality)

Innovation Alliance PartnersInnovation Alliance PartnersCustomersCustomers

Competitors Competitors (who we “benchmark” against)(who we “benchmark” against)

Strategic Initiatives Strategic Initiatives Product Portfolio Product Portfolio (LineEx v. Leap)(LineEx v. Leap)

IS/IT ProjectsIS/IT ProjectsHQ LocationHQ LocationLunch MatesLunch Mates

LanguageLanguageBoardBoard

““[CEO A.G.] Lafley has shifted [CEO A.G.] Lafley has shifted P&G’sP&G’s focus on inventing focus on inventing

all its own products to developingall its own products to developing

others’ others’ inventions at inventions at least half the least half the

timetime.. One successfulOne successful

example, Mr. Clean Magic Eraser, based on a product found in example, Mr. Clean Magic Eraser, based on a product found in an Osaka market.”an Osaka market.” ——FortuneFortune

““The Billion-man The Billion-man Research Team: Research Team:

Companies offering Companies offering work to online work to online

communities are communities are reaping the benefits of reaping the benefits of

‘crowdsourcing.’”‘crowdsourcing.’” —Headline, —Headline, FTFT, 0110.07, 0110.07

Rob McEwen/CEO/CEO/Goldcorp Inc./Goldcorp Inc./

Red Lake Red Lake goldSource: Source: Wikinomics: How Mass

Collaboration Changes Everything, Don Tapscott & Anthony Williams

#14#14

“The The Bottleneck Bottleneck

Is at the Top Is at the Top of the of the

Bottle”Bottle”“Where are you likely to find people with the least diversity of

experience, the largest investment in the past, and the greatest reverence for industry dogma:

AtAt thethe totop!”p!” — Gary Hamel/Harvard Business Review

#15#15

Innovation IndexInnovation Index:: How many of your Top 5Top 5 Strategic

Initiatives/Key Projects score 88 or higher or higher [out of 10] on a

“Weird”“Weird”/ / “Profound”“Profound”/ / “Wow”“Wow”//“Game- changer”“Game- changer”

Scale?

Part Part FIVEFIVE

#16#16

You = You = Your Your

calendarcalendar***Calendars *Calendars nevernever lielie

““Dennis, you need a … Dennis, you need a …

‘To-don’t ’‘To-don’t ’

List !”List !”

““If there is any one ‘secret’ If there is any one ‘secret’ to effectiveness, it is to effectiveness, it is

concentration. Effective concentration. Effective executives do first things executives do first things

first and they do one thing first and they do one thing at a time.”at a time.” —Peter Drucker—Peter Drucker

Part Part SIXSIX

#17#17

The Memories The Memories That Matter.That Matter.

Tom Peters/02 October 2010Tom Peters/02 October 2010

The Memories That MatterThe Memories That Matter

The people you developed who went on to stellar accomplishmentsThe people you developed who went on to stellar accomplishments inside or outside the company. (A reputation as “a peerless inside or outside the company. (A reputation as “a peerless peoplepeople developer.”)developer.”)The (no more than) two or three people you developed who went on The (no more than) two or three people you developed who went on toto create create stellar institutions of their own.stellar institutions of their own.The longshots (people with “a certain something”) you bet on whoThe longshots (people with “a certain something”) you bet on who surprised themselves—surprised themselves—andand your peers. your peers.The people of all stripes who 2/5/10/20 years later say The people of all stripes who 2/5/10/20 years later say “You made a “You made a difference in my life,” “Your belief in me changed everything.”difference in my life,” “Your belief in me changed everything.”The sort of/character of people you hired in general. (The sort of/character of people you hired in general. (And And the bad the bad apples you chucked out despite some stellar traits.)apples you chucked out despite some stellar traits.)A handful of projects (a half dozen at most) you doggedly pursued A handful of projects (a half dozen at most) you doggedly pursued thatthat still make you smile and which fundamentally changed the waystill make you smile and which fundamentally changed the way things are done inside or outside the company/industry.things are done inside or outside the company/industry. The supercharged camaraderie of a handful of Great Teams aiming The supercharged camaraderie of a handful of Great Teams aiming toto “ “change the world.”change the world.”


Belly laughs at some of the stupid-insane things you and your Belly laughs at some of the stupid-insane things you and your matesmates tried.tried.Less than a closet full of “I should have …”Less than a closet full of “I should have …”A frighteningly consistent record of having invariably said, A frighteningly consistent record of having invariably said, “Go for “Go for it!”it!”Not intervening in the face of considerable loss—recognizing that toNot intervening in the face of considerable loss—recognizing that to develop top talent means tolerating failures and allowing thedevelop top talent means tolerating failures and allowing the person who screwed up to work their own way through and out ofperson who screwed up to work their own way through and out of their self-created mess.their self-created mess.Dealing with one or more crises with particular/memorable aplomb.Dealing with one or more crises with particular/memorable aplomb.Demanding … Demanding … CIVILITYCIVILITY … regardless of circumstances. … regardless of circumstances.Turning around one or two or so truly dreadful situations—andTurning around one or two or so truly dreadful situations—and watching almost everyone involved rise to the occasion (often towatching almost everyone involved rise to the occasion (often to their own surprise) and acquire a renewed sense of purpose in their own surprise) and acquire a renewed sense of purpose in thethe process.process.Leaving something behind of demonstrable-lasting worth. (On short Leaving something behind of demonstrable-lasting worth. (On short asas well as long assignments.)well as long assignments.)


Having almost always (99% of the time) put “Quality” and Having almost always (99% of the time) put “Quality” and “Excellence”“Excellence” ahead of “Quantity.” (At times an unpopular approach.)ahead of “Quantity.” (At times an unpopular approach.)A few “critical” instances where you stopped short and could haveA few “critical” instances where you stopped short and could have “ “done more”—but to have done so would have compromised your done more”—but to have done so would have compromised your andand your team’s character and integrity.your team’s character and integrity.A sense of time well and honorably spent.A sense of time well and honorably spent.The expression of “simple” human kindness and consideration—noThe expression of “simple” human kindness and consideration—no matter how harried you may be/may have been.matter how harried you may be/may have been.Understood that your demeanor/expression of character always setUnderstood that your demeanor/expression of character always set the tone—especially in difficult situations. the tone—especially in difficult situations. Never (rarely) let your external expression of enthusiasm/ Never (rarely) let your external expression of enthusiasm/ determination flag—the rougher the times, the more your determination flag—the rougher the times, the more your expressedexpressed energy and bedrock optimism and sense of humor showed.energy and bedrock optimism and sense of humor showed.The respect of your peers.The respect of your peers.A stoic unwillingness to badmouth others—even in private.A stoic unwillingness to badmouth others—even in private.


An invariant creed: When something goes amiss, An invariant creed: When something goes amiss, “The buck stops with“The buck stops with meme”; when something goes right, it was ”; when something goes right, it was their their doing, not yours.doing, not yours.A Mandela-like “naïve” belief that others will rise to the occasion if A Mandela-like “naïve” belief that others will rise to the occasion if givengiven the opportunity.the opportunity.A reputation for eschewing the “trappings of power.” (Strong self-A reputation for eschewing the “trappings of power.” (Strong self- management of tendencies toward arrogance or dismissiveness.)management of tendencies toward arrogance or dismissiveness.)Intense, even “driven” … but not to the point of being careless of Intense, even “driven” … but not to the point of being careless of othersothers in the process of forging ahead.in the process of forging ahead.Willing time and again to be surprised by ways of doing things that Willing time and again to be surprised by ways of doing things that areare inconsistent with your “certain hypotheses.”inconsistent with your “certain hypotheses.”Humility in the face of others, at every level, who know more than youHumility in the face of others, at every level, who know more than you about “the way things really are.”about “the way things really are.”Having bitten your tongue on a thousand occasions—and Having bitten your tongue on a thousand occasions—and listened, listened, reallyreally really really listened. (And listened. (And been constantly delighted when, as a result, been constantly delighted when, as a result, youyou invariablyinvariably learned something new and learned something new and invariablyinvariably increased your increased your connection with the speaker.)connection with the speaker.)


Unalloyed pleasure in being informed of the fallaciousness of yourUnalloyed pleasure in being informed of the fallaciousness of your beliefs by someone 15 years your junior and several rungs below beliefs by someone 15 years your junior and several rungs below youyou on the hierarchical ladder. on the hierarchical ladder. Selflessness. (A sterling reputation as “a guy always willing to help Selflessness. (A sterling reputation as “a guy always willing to help outout with alacrity despite personal cost.”)with alacrity despite personal cost.”)As thoughtful and respectful, or more so, toward thine “enemies” asAs thoughtful and respectful, or more so, toward thine “enemies” as toward friends and supporters.toward friends and supporters.Always and relentlessly put at the top of your list/any list being firstAlways and relentlessly put at the top of your list/any list being first and foremost and foremost “of service”“of service” to your internal and external to your internal and external constituents. (Employees/Peers/Customers/Vendors/Community.)constituents. (Employees/Peers/Customers/Vendors/Community.)Treated the term “servant leadership” as holy writ. (And Treated the term “servant leadership” as holy writ. (And “preached”“preached” “ “servant leadership” to others—new “non-managerial” hire or oldservant leadership” to others—new “non-managerial” hire or old pro, age 18 or 48.)pro, age 18 or 48.)


Created the sort of workplaces you’d like your kids to inhabit.Created the sort of workplaces you’d like your kids to inhabit. (Explicitly conscious of this “Would I want my kids to work here?”(Explicitly conscious of this “Would I want my kids to work here?” litmus test.)litmus test.)A “certifiable” “nut” about quality and safety and integrity. (More A “certifiable” “nut” about quality and safety and integrity. (More oror less regardless of any costs.)less regardless of any costs.)A notable few circumstances where you resigned rather thanA notable few circumstances where you resigned rather than compromise your bedrock beliefs.compromise your bedrock beliefs.Perfectionism just short of the paralyzing variety.Perfectionism just short of the paralyzing variety.

A self- and relentlessly enforced group standard of “EXCELLENCE-in-A self- and relentlessly enforced group standard of “EXCELLENCE-in- all-we-do”/“EXCELLENCE in our behavior toward one another.”all-we-do”/“EXCELLENCE in our behavior toward one another.”

before we begin …

Documents

small firm

wouldbe entrepreneurs

successful companies

longer companies

small giantsbo burlinghamfirst

huge corporate structures

intimate relationships

mass market