tom peters’ excellence. always. harvard business review america latina santiago/14 october 2008
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Tom Peters’ EXCELLENCE. ALWAYS. Harvard Business Review America Latina Santiago/14 October 2008. NOTE : To appreciate this presentation [and ensure that it is not a mess ], you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana”. Slides at … tompeters.com. - PowerPoint PPT PresentationTRANSCRIPT
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Tom Peters’ Tom Peters’
EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.
Harvard Business Review America Latina Harvard Business Review America Latina Santiago/14 October 2008Santiago/14 October 2008
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NOTENOTE:: To appreciateTo appreciate this presentation this presentation [and ensure [and ensure
that it is not a that it is not a messmess],], you need you need Microsoft fonts:Microsoft fonts:
“Showcard Gothic,”“Showcard Gothic,” “Ravie,”“Ravie,” “Chiller”“Chiller”
andand “Verdana”“Verdana”
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Slides at …Slides at …
tompeters.comtompeters.com
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““Tom let me tell you the Tom let me tell you the definition of a good lending definition of a good lending
officer. After church on officer. After church on Sunday, on the way home Sunday, on the way home with his family, he takes a with his family, he takes a little detour to drive by the little detour to drive by the factory he just lent money factory he just lent money
to. Doesn’t go in or any such to. Doesn’t go in or any such thing, just drives by and thing, just drives by and
takes a look.”takes a look.”
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19819822
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MBWMBWAA
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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”
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““Breakthrough” 82*Breakthrough” 82*
People! People! CustomersCustomers
! ! Action! Action! Values! Values!
**In Search of ExcellenceIn Search of Excellence
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Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard
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Hard Is Hard Is SoftSoft (Plans, (Plans, ##ss))
Soft Is Soft Is HardHard (people, (people, customers, values, customers, values,
relationships))relationships))
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““We Have Met the Enemy …We Have Met the Enemy …
ThankThank you, you,
Howard Howard & Howard … & Howard …
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InternalInternal organizational organizational excellence = excellence =
Deepest “Blue Deepest “Blue Ocean”Ocean”
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When The “Enemy” When The “Enemy” ReallyReally Wins Wins
““Lose Your Nemesis”:Lose Your Nemesis”: ““ObsessinObsessingg about about yyour comour comppetitors, etitors, trtryyiningg to match or best their offerin to match or best their offeringgs, ss, sppendinendingg time time each daeach dayy wantin wantingg to know what the to know what theyy are doin are doingg, and/or , and/or
measurinmeasuringg yyour comour comppananyy a aggainst them—these ainst them—these activities have no activities have no ggreat or winninreat or winningg outcome outcome.. Instead you Instead you are simply prohibiting your company from finding its own way to be are simply prohibiting your company from finding its own way to be truly meaningful to its clients, staff and prospects. You block your truly meaningful to its clients, staff and prospects. You block your
company from finding its own identity and engaging with the people company from finding its own identity and engaging with the people who pay the bills. … Your competitors have never paid your bills and who pay the bills. … Your competitors have never paid your bills and they never will.” they never will.” —Howard Mann, —Howard Mann, Your Business Brickyard: Getting Back to the Basics Your Business Brickyard: Getting Back to the Basics
to Make Your Business More Fun to Run*to Make Your Business More Fun to Run*
**Mr Mann also quotes Mike McCue, former VP/Technology at Netscape:Mr Mann also quotes Mike McCue, former VP/Technology at Netscape: “At Netscape “At Netscape the competition with Microsoft was so severe, we’d wake up in the the competition with Microsoft was so severe, we’d wake up in the
morning thinking about how we were going to deal with them instead morning thinking about how we were going to deal with them instead
of how we would build something great for our customers.of how we would build something great for our customers. What I What I realize now is that realize now is that yyou can never, ever take ou can never, ever take yyour eour eyye e
off the customer. Even in the face of massive off the customer. Even in the face of massive comcomppetition, don’t think about the cometition, don’t think about the comppetition. etition.
LiterallLiterallyy don’t think about them don’t think about them.”.”
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Thank you Thank you Horst …Horst …
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““I [will] not accept the I [will] not accept the explanation of a recession explanation of a recession negatively affecting the negatively affecting the
[new] business. There are [new] business. There are still people traveling. We just still people traveling. We just have to get them to stay in have to get them to stay in our hotel.”our hotel.” —Horst Schulze, on his new chain, —Horst Schulze, on his new chain, Capella, from Prestige (06.08) Capella, from Prestige (06.08) The Return of History and The Return of History and
the End of Dreamsthe End of Dreams
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Thank you ,Thank you ,Herb , Robert, Herb , Robert,
Peter & Peter & Siberia …Siberia …
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““You have to You have to treat your treat your
employees like employees like customers.”customers.” —Herb Kelleher, —Herb Kelleher,
complete answer, upon being asked his “secrets to success”complete answer, upon being asked his “secrets to success”
Source: Joe Nocera, Source: Joe Nocera, NYTNYT, “Parting Words of an Airline Pioneer,” on the occasion , “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots
union took out a full-page ad in USA Today thanking HK for all he had done; union took out a full-page ad in USA Today thanking HK for all he had done; across theacross the
way in Dallas American Airlines’ pilots were picketing the Annual Meeting)way in Dallas American Airlines’ pilots were picketing the Annual Meeting)
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““The role of the Director is to The role of the Director is to create a space where the actors create a space where the actors
and actresses canand actresses can become become more than they’ve ever more than they’ve ever been before, more than been before, more than
they’ve dreamed of they’ve dreamed of beingbeing.”.” —Robert Altman, Oscar acceptance speech—Robert Altman, Oscar acceptance speech
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… … 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 … Excellence.pursuit of … Excellence.
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Why in Why in the the World did World did youyou go to go to SiberiaSiberia??
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EnterpriseEnterprise* ** (*at its best):* ** (*at its best): An An emotionalemotional, , vitalvital, , innovativeinnovative, , jojoyyfulful, , creativecreative, , entreentreppreneurialreneurial endeavor endeavor that elicits maximum that elicits maximum
concerted humanconcerted human potential in the potential in the wholeheartedwholehearted serviceservice of others of others.****Employees, Customers, Suppliers, Communities, Owners, Temporary partners**Employees, Customers, Suppliers, Communities, Owners, Temporary partners
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Thank you Ben Thank you Ben & Norm, Ike , & Norm, Ike ,
Gust, Walt, Mark & Gust, Walt, Mark & Muhammad, Nelson, Muhammad, Nelson,
Ben II Ben II and Delaware/and Delaware/
Woody …Woody …
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GiveGive good good tea! tea!
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““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 of friendshiof friendshippss.”.”
——General D.D. Eisenhower, General D.D. Eisenhower, Armchair General Armchair General * (05.08)* (05.08)
*“Perhaps his most outstanding ability [at West Point] was*“Perhaps his most outstanding ability [at West Point] was the ease with which he made friends and earned the trust the ease with which he made friends and earned the trust of fellow cadets who came from widely varied backgrounds;of fellow cadets who came from widely varied backgrounds; it was a quality that would pay great dividends during his it was a quality that would pay great dividends during his
future coalition command.”future coalition command.”
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George Crile George Crile (Charlie Wilson’s War)(Charlie Wilson’s War) on Gust on Gust
Avrakotos’ strategy:Avrakotos’ strategy: “He had “He had become something of a become something of a
legend with these legend with these people who manned the people who manned the
underbelly of the underbelly of the Agency [CIA].”Agency [CIA].”
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??????????????
“Success doesn’t depend on the number of “Success doesn’t depend on the number of people you know; it depends on the number people you know; it depends on the number
of people you know in of people you know in hihigghh places!”places!”
oror
“Success doesn’t depend on the number of “Success doesn’t depend on the number of people you know; it depends on the number people you know; it depends on the number
of people you know in of people you know in lowlow places!” places!”
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C(I) > C(I) > C(E)C(E)
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3K3K//5M5M
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5,000 miles 5,000 miles for a 5-minute for a 5-minute
face-toface-to-face meeting -face meeting
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MBWA, Grameen Style!MBWA, Grameen Style!“Conventional banks ask their clients to come to their “Conventional banks ask their clients to come to their
office. It’s a terrifying place for the poor and illiterate. … office. It’s a terrifying place for the poor and illiterate. …
The entire Grameen Bank The entire Grameen Bank system runs on the principle system runs on the principle
that people should not come to that people should not come to the bank, the bank should go the bank, the bank should go
to the people.to the people. … … If any staff member is seen If any staff member is seen in the office, it should be taken as a violation of the in the office, it should be taken as a violation of the
rules of the Grameen Bankrules of the Grameen Bank. … It is essential that [those . … It is essential that [those setting up a new village Branch] setting up a new village Branch] have no office and no have no office and no pplace to stalace to stay. The reason is to make us as different as y. The reason is to make us as different as
possible from government officialspossible from government officials.” .”
Source: Source: Muhammad Yunus, Banker to the Poor
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““I am a I am a dispenser of dispenser of
enthusiasm.”enthusiasm.”
—Ben Zander
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““eighty eighty percent of percent of success is success is
showing up.” showing up.” ——Woody AllenWoody Allen
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L(+21) = L(-L(+21) = L(-21)21)
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Leadership(21A.D.) = Leadership(21A.D.) = Leadership(21B.C.)Leadership(21B.C.)
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ThankThank you , 7-11… you , 7-11…
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TP: TP: “How to flush
$500,000 down
the toilet in one easy
lesson!!”
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< CAPEX< CAPEX> People!> People!
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““The leaders of Great The leaders of Great
Groups Groups lovelove talent talent and know where to find and know where to find
it. They it. They revel revel in the in the talent of others.”talent of others.”
—Warren Bennis & Patricia Ward Biederman, —Warren Bennis & Patricia Ward Biederman, Organizing Organizing GeniusGenius
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Brand Brand = =
Talent.Talent.
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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
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#1/10#1/1000
““Best Companies toBest Companies to
Work for” Work for”//20052005
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WegmansWegmans
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#1#1 cause of cause ofDis-satisfaction?Dis-satisfaction?
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2/year 2/year = =
legacy.legacy.
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53 = 53 = 5353
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““Leaders Leaders
‘‘dodo’’ people. people.
Period.”Period.” —Anon.
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““Leaders Leaders
‘‘SERVESERVE’’ people. people.
Period.”Period.” —inspired by Robert Greenleaf
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The Dream ManagerThe Dream Manager —Matthew —Matthew
KellyKelly
“An organization can only become the-best-version-of-“An organization can only become the-best-version-of-itself to the extent that the people who drive that itself to the extent that the people who drive that
organization are striving to become better-versions-of-organization are striving to become better-versions-of-themselves.” “A company’s purpose is to become the-themselves.” “A company’s purpose is to become the-
best-version-of-itself. The question is: What is an best-version-of-itself. The question is: What is an employee’s purpose? Most would say, ‘to help the employee’s purpose? Most would say, ‘to help the
company achieve its purpose’—but they would be wrong. company achieve its purpose’—but they would be wrong. That is certainly part of the employee’s role, but an That is certainly part of the employee’s role, but an employee’s primary purpose is to become the-best-employee’s primary purpose is to become the-best-version-of-himself or –herself. … When a company version-of-himself or –herself. … When a company
forgets that it exists to serve customers, it quickly goes forgets that it exists to serve customers, it quickly goes
out of business.out of business. Our employees are our Our employees are our first customers, and our most first customers, and our most
important customers.”important customers.”
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ThankThank you , you ,Rich …Rich …
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““Mapping your Mapping your competitive competitive position”*position”*
or …or …
*Rich D’Aveni/*Rich D’Aveni/HBRHBR
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The “Have The “Have you …” you …”
50*50**See *See Appendix OneAppendix One
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1. Have you in the1. Have you in the last last 1010 daysdays … … visitedvisited a a customer?customer?2. Have you called a 2. Have you called a customer … customer … TODAYTODAY?? * * * * * *
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The “XF-50”: 50 Ways to The “XF-50”: 50 Ways to Enhance Cross-Functional Enhance Cross-Functional Effectiveness and Deliver Effectiveness and Deliver
Speed, “Service Speed, “Service Excellence” and “Value-Excellence” and “Value-
added Customer added Customer ‘Solutions’”*‘Solutions’”*
*Entire “XF-50” List is an Appendix to the LONG version *Entire “XF-50” List is an Appendix to the LONG version of this presentation, posted at tompeters.comof this presentation, posted at tompeters.com
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X X =XFX*=XFX*
**ExcellenceExcellence = Cross-functional Excellence = Cross-functional Excellence
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Never Never waste a waste a lunch!lunch!
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????????
% XF % XF lunches*lunches*
*Measure!*Measure!
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ThankThank you , you ,
Richard & Richard & Marcus …Marcus …
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““I used to have a rule for myself that at any point in I used to have a rule for myself that at any point in time I wanted to have in mind time I wanted to have in mind — as it so happens, — as it so happens, also in writing, on a little card I carried around with also in writing, on a little card I carried around with me — the three big things I was trying to get done. me — the three big things I was trying to get done.
ThreeThree..
Not two. Not two. Not four. Not four. Not five.Not five.Not ten.Not ten.Three.”Three.”
— Richard Haass, — Richard Haass, The Power to PersuadeThe Power to Persuade
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““Dennis, you need a … Dennis, you need a …
‘To-don’t ’‘To-don’t ’
List !”List !”
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““The The oneone thinthing you g you need to know about need to know about sustained individual sustained individual
success: Discover what success: Discover what you don’t like doing and you don’t like doing and
stopstop doing it.”doing it.”
—Marcus Buckingham, The One Thing You Need to Know
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You = Your You = Your calendarcalendar***Calendars *Calendars nevernever lielie
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Thank you ,Thank you ,Dr. Groopman …Dr. Groopman …
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1818””
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Thank you ,Thank you ,Marshall & Marshall &
Edie …Edie …
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““To develop others, To develop others, start with yourself.”start with yourself.”
—Marshall Goldsmith—Marshall Goldsmith
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““Being aware of Being aware of yourself and how you yourself and how you
affect everyone around affect everyone around you is what you is what
distinguishes a superior distinguishes a superior leader.”leader.” —Edie Seashore —Edie Seashore
((Strategy + BusinessStrategy + Business #45) #45)
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““How can a high-level How can a high-level leader like _____ be so out leader like _____ be so out
of touch with the truth of touch with the truth about himself? It’s more about himself? It’s more common than you would common than you would
imagine. In fact, the imagine. In fact, the higher up the ladder a higher up the ladder a leader climbs, the less leader climbs, the less
accurate his self-accurate his self-assessment is likely to assessment is likely to be. be. The The pproblem is an roblem is an acute lack of feedbackacute lack of feedback [especially on people [especially on people
issues].”issues].” —Daniel Goleman (et al.), —Daniel Goleman (et al.), The New LeadersThe New Leaders
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““You must You must bebe the change you the change you
wish to see in the wish to see in the world.”world.”
Gandhi
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ThankThank you , you ,
Dave …Dave …
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““The four most The four most important words in any important words in any
organizationorganization
are …are … ‘What do ‘What do you think?’you think?’ ” ”
Source: courtesy Dave Wheeler, posted atSource: courtesy Dave Wheeler, posted at tompeters.com, source of original unknown (0609.08) tompeters.com, source of original unknown (0609.08)
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TP:TP: People are People are always ready to always ready to tell their story!tell their story!
See also: “The story leaner’s edge” (Steve See also: “The story leaner’s edge” (Steve Farber)Farber)
“The dream manager” (Matthew Kelly) “The dream manager” (Matthew Kelly)
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““Buy in”- Buy in”- “Ownership”-“Ownership”-
Authorial bragging Authorial bragging rights-“Born again” rights-“Born again”
Champion = Champion = OneOne LineLine ofof CodeCode!!
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"Trust the "Trust the development development experts—all experts—all
seven billion of seven billion of them.”them.” —headline, —headline, Financial Times, Financial Times,
0529.08, to an article by development guru William Easterly, 0529.08, to an article by development guru William Easterly, commenting negatively on the World Bank Growth commenting negatively on the World Bank Growth
Commission’s recent report that concludes, in effect, Commission’s recent report that concludes, in effect, ““trust the World Bank experts”trust the World Bank experts”
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Thank you, Thank you, Henry , Henry ,
Marshall & Marshall & Steve …Steve …
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““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
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Relationships (of all varieties): THERE THERE ONCE WAS A TIME WHEN ONCE WAS A TIME WHEN A A THREETHREE--MINUTEMINUTE PHONEPHONE
CALLCALL WOULD HAVE WOULD HAVE AVOIDED SETTING OFF AVOIDED SETTING OFF
THE DOWNWARD SPIRAL THE DOWNWARD SPIRAL THAT RESULTED IN A THAT RESULTED IN A COMPLETE RUPTURE.COMPLETE RUPTURE.
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THE PROBLEM IS THE PROBLEM IS RARELY/NEVER THE RARELY/NEVER THE
PROBLEM. THE PROBLEM. THE RESPONSE TO THE RESPONSE TO THE
PROBLEM INVARIABLY PROBLEM INVARIABLY ENDS UP BEING THE ENDS UP BEING THE REAL PROBLEMREAL PROBLEM.* **
*Watergate, M Stewart, BR**And: PERCEPTION IS ALL THERE IS!PERCEPTION IS ALL THERE IS!
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““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 Here , What Got You Here
Won’t Get You There: How Successful People Become Even Won’t Get You There: How Successful People Become Even More Successful More Successful
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““We are We are thoughtful in thoughtful in all we do.”all we do.”
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ThoughtfulnessThoughtfulness is key to customer retention. is key to customer retention.ThoughtfulnessThoughtfulness is key to employee recruitment is key to employee recruitment and satisfaction.and satisfaction.Thoughtfulness Thoughtfulness is key to brand perception.is key to brand perception.ThoughtfulnessThoughtfulness is key to your ability to look in is key to your ability to look in the mirror—and tell your kids about your job.the mirror—and tell your kids about your job.““ThoughtfulnessThoughtfulness is free.” is free.”ThoughtfulnessThoughtfulness is key to speeding things up— is key to speeding things up— it reduces friction.it reduces friction.ThoughtfulnessThoughtfulness is key to transparency and is key to transparency and eveneven cost containment—it abets rather than stiflescost containment—it abets rather than stifles truth-telling.truth-telling.
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““KindnesKindness is s is
free.”free.”
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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
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“There is a misconception that supportive interactions require more staff or more time and are therefore more costly. Although
labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget.
Kindness is Kindness is freefree.. Listening to patients or answering their
questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very costly. …
Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring far more time than it would have taken to interact with them initially in a
positive way.” —Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel
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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
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The 9 Planetree Practices
1.1. The Importance of Human InteractionThe Importance of Human Interaction2. Informing and Empowering Diverse Populations: Consumer Informing and Empowering Diverse Populations: Consumer Health Libraries and Patient Information Health Libraries and Patient Information3. Healing Partnerships: The importance of Including Healing Partnerships: The importance of Including Friends and Family Friends and Family4. Nutrition: The Nurturing Aspect of Food Nutrition: The Nurturing Aspect of Food5. Spirituality: Inner Resources for Healing Spirituality: Inner Resources for Healing6.6. Human Touch: The Essentials of Communicating Human Touch: The Essentials of Communicating Caring Through Massage Caring Through Massage7.7. Healing Arts: Nutrition for the Soul Healing Arts: Nutrition for the Soul8.8. Integrating Complementary and Alternative Practices Integrating Complementary and Alternative Practices into Conventional Care into Conventional Care9.9. Healing Environments: Architecture and Design Healing Environments: Architecture and Design Conducive to Health Conducive to Health
Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel
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Access to nurses station:
“Happen to”“Happen to”vs
“Happen with”“Happen with”Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel
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Thank you ,Thank you ,Singapore …Singapore …
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2-cent 2-cent candycandy
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<TG<TGWWvs.vs.
>TG>TGRR
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““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
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Thank you,Thank you,Heather …Heather …
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““Forget Forget ChinaChina, , IndiaIndia and the and the
InternetInternet: Economic : Economic Growth Is Driven Growth Is Driven
by by WomenWomen.”.” —Headline,
Economist, April 15, 2006, Leader, page 14
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““AS AS LEADERS, LEADERS, WOMEN WOMEN
RULERULE:: New Studies find
that female managers outshine their male counterparts in almost every measure”
TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek
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10 UNASSAILABLE REASONS WOMEN RULE10 UNASSAILABLE REASONS WOMEN RULE
WomenWomen make [all] the financial decisions.WomenWomen control [all] the wealth.WomenWomen [substantially] outlive men.WomenWomen start most of the new businesses.Women’sWomen’s work force participation rates have soared worldwide.WomenWomen are closing in on “same pay for same job.”WomenWomen are penetrating senior ranks rapidly [even if the pace is slow for the corner office per se].Women’sWomen’s leadership strengths are exceptionally well aligned with new organizational effectiveness imperatives.WomenWomen are better salespersons than men.WomenWomen buy [almost] everything—commercial as well as consumer goods.
So what exactly is the point of So what exactly is the point of menmen??
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ThankThank you, Sheik you, Sheik
Mohammad Mohammad (& Jerry) …(& Jerry) …
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24%24%
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dubaidubai
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Single Single greatest act greatest act
of pure of pure imaginationimagination
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Does Does youryour project portfolioproject portfolio
“ “havehave a dubai”?a dubai”?
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““You do not merely want to You do not merely want to
be the best of the best.be the best of the best. You want to be You want to be considered the considered the
only ones who do only ones who do what you dowhat you do.” .” —Jerry
Garcia
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Thank you , Thank you , Anthelme Anthelme
Brillat-Savarin Brillat-Savarin and Ludwig and Ludwig
FeuerbachFeuerbach ……***”You are what you eat”*”You are what you eat”
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We We areare the the companycompany we keepwe keep
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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
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The “Hang Out Axiom”:The “Hang Out Axiom”: At its core, At its core, evereveryy (!!!) (!!!)
relationship-partnership relationship-partnership decision (employee, decision (employee,
vendor, customer, etc)vendor, customer, etc) is a is a stratestrateggicic decision decision
about: about:
“Innovate,“Innovate, ‘Yes’ or ‘Yes’ or ‘No’‘No’ ” ”
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““Normal” Normal”
= = “o “o forfor 800”800”
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““Diverse groups of problem solvers—Diverse groups of problem solvers—groups of people with diverse tools—groups of people with diverse tools—
consistently outperformed groups of the consistently outperformed groups of the best and the brightest. If I formed two best and the brightest. If I formed two
groups, one random (and therefore groups, one random (and therefore diverse) and one consisting of the best diverse) and one consisting of the best individual performers, the first group individual performers, the first group
almost always did better. … almost always did better. …
DiversityDiversity trumped trumped abilityability.”.” —Scott Page, —Scott Page, The Difference: How The Difference: How
the Power of Diversity Creates Better Groups,the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Diversity Firms, Schools, and Societies Diversity
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ThankThank you, Lou … you, Lou …
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““M” = M” = $0$0
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IBIBMM: : $55B*$55B*
*Also HP-EDS*Also HP-EDS
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““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
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““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)
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GE Enterprise SolutionsGE Enterprise Solutions** GE Enterprise Solutions delivers high-impact, GE Enterprise Solutions delivers high-impact, integrated solutions that improve customers’ integrated solutions that improve customers’
productivity and profitability. Enterprise Solutions productivity and profitability. Enterprise Solutions helps customers compete and win in a changing global helps customers compete and win in a changing global
environment by combining the power of GE’s environment by combining the power of GE’s intelligent technologies with its multi-industry intelligent technologies with its multi-industry experience and expertise. Enterprise Solutions experience and expertise. Enterprise Solutions
comprises high-tech, high-growth businesses including comprises high-tech, high-growth businesses including Sensing & Inspection Technologies, Security, GE Fanuc Sensing & Inspection Technologies, Security, GE Fanuc Intelligent Platforms, and Digital Energy. The business Intelligent Platforms, and Digital Energy. The business has 17,000 customer-focused associates in more than has 17,000 customer-focused associates in more than
60 countries around the world.60 countries around the world.
*from GE.com*from GE.com
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The Value-added Ladder/The Value-added Ladder/TRANSFORMATIONTRANSFORMATION
Customer Success/ Customer Success/ Gamechanging Gamechanging
SolutionsSolutions
ServicesServicesGoodsGoods
Raw Materials Raw Materials
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““support function” / support function” / “cost center”/ “cost center”/ “overhead”“overhead”
oror … …
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Department Head
to …
ManaginManaging g
PartnerPartner, , ISIS [HR, R&D, etc.] IncInc..
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Answer:
PSFPSF
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Ideal “finance staffer”: Ideal “finance staffer”:
**Full-scale “business partner”**Full-scale “business partner” [CFO?] to the/each department [CFO?] to the/each department she serves.she serves.**Not cop—obsessed instead with**Not cop—obsessed instead with value-addedvalue-added**Integration first, “stovepipe” **Integration first, “stovepipe” secondarysecondary**MBWA/bigtime**MBWA/bigtime**Networker to the rest of Finance**Networker to the rest of Finance
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ThankThank you Jim (and you Jim (and Germany ) …Germany ) …
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Jim’s Jim’s GroupGroup
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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
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#4 Japan#4 Japan#3 USA#3 USA
#2 China#2 China
#1 #1 GermanyGermany
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Reason!!!Reason!!!
MittelstandMittelstand
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“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 Buy a very large one very large one and just waitand just wait.”.”
—Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics
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““Mr. Foster and his McKinsey Mr. Foster and his McKinsey colleagues collected detailed colleagues collected detailed
performance data stretching back performance data stretching back 4040 years for years for 1,0001,000 U.S. companies. U.S. companies. TheTheyy
found that found that none none of the of the
lonlongg-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 —Financial
TimesTimes
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““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
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The The lastlast word: word: There There is is nono “last “last
word.”word.”
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ThankThank you, you,
John … John …
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“This is so simple it sounds stupid, but it is amazing how few oil people really
understand that you only you only find oil if you find oil if you drill wellsdrill 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
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1/401/40
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““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, again We fixed them by doing it over and over, again and again.and again. We do the same today. While our competitors We do the same today. While our competitors are still sucking their thumbs trying to make the design are still sucking their thumbs trying to make the design
perfect, we’re already on prototype versionperfect, we’re already on prototype version ##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
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Culture of PrototypingCulture of Prototyping
“Effective prototyping may “Effective prototyping may
be be thethe most most valuablevaluable core core competencecompetence an an
innovative organization can innovative organization can hope to have.”hope to have.” —Michael Schrage
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““ExperimenExperiment t
fearlessly”fearlessly”Source: BW0821.06, Type A Organization Strategies/
“How to Hit a Moving Target”—Tactic #1Tactic #1
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““RewardReward excellent failures.
PunishPunish mediocre
successes.”Phil Daniels, Sydney exec
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ThankThank you , Conrad you , Conrad
& Fred …& Fred …
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Conrad Hilton, at a gala Conrad Hilton, at a gala celebrating his life,celebrating his life,
was asked, “What was the was asked, “What was the most important lesson most important lesson
you’ve learned in you long you’ve learned in you long and distinguished career?” and distinguished career?”
His immediate answer …His immediate answer …
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Conrad Hilton, at a gala celebrating his life,Conrad Hilton, at a gala celebrating his life, was asked, “What was the most important lesson you’ve learned was asked, “What was the most important lesson you’ve learned
in you long and distinguished career?” in you long and distinguished career?”
His immediate answer: His immediate answer: ““remember remember to tuck the to tuck the
shower curtain shower curtain inside the inside the bathtubbathtub””
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““Execution Execution isis strategy.”strategy.”
—Fred Malek—Fred Malek
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““almost inhuman almost inhuman disinterestedness disinterestedness in … strategy”in … strategy” —Josiah —Josiah
Bunting on Bunting on U.S. GrantU.S. Grant (from (from Ulysses S. Ulysses S. GrantGrant))
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DECENTRALIZATIONDECENTRALIZATION..
EXECUTION.EXECUTION.ACCOUTABILITY.ACCOUTABILITY.
66:15A.M. :15A.M.
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4/404/40
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Thank you ,Thank you ,Nassim Nicholas Nassim Nicholas
Taleb …Taleb …
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The Black Swan The Black Swan 44: Tactical 44: Tactical
Rules for Rules for Survival (and Survival (and success) in success) in
Looney timesLooney times
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Black Swan Tactical RulesBlack Swan Tactical Rules
1. K.I.S.S.1. K.I.S.S.2. Hammer on the basics.2. Hammer on the basics.3. Focus on us, not the competition.3. Focus on us, not the competition.4. Puzzle-solving: How to turn this4. Puzzle-solving: How to turn this into an opportunity.into an opportunity.5. MBWA/X.5. MBWA/X.6. MBWA/I.6. MBWA/I.7. MBWA/Vendors.7. MBWA/Vendors.8. Waaaaay over-communicate!!!!!!8. Waaaaay over-communicate!!!!!! (With (With everyoneeveryone—start with your—start with your banker.)banker.)
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Black Swan Tactical RulesBlack Swan Tactical Rules
9. All work is team work.9. All work is team work.10. Transparency.10. Transparency. 11. Work the phones.11. Work the phones.12. Perception of fairness.12. Perception of fairness.13. Share the pain.13. Share the pain.14. Decency!!!!!!!14. Decency!!!!!!!15. Grace!!15. Grace!!16. “Thank you.”16. “Thank you.”17. Control your impatience—17. Control your impatience— no temper tantrums.no temper tantrums.18. Constant attitude checks—18. Constant attitude checks—youyou..
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Black Swan Tactical RulesBlack Swan Tactical Rules
19. Dress for success.19. Dress for success.20. Avoid burnout/you, the team,20. Avoid burnout/you, the team, the entire organization.the entire organization.21. 21. Re-emphasize the companyRe-emphasize the company values-philosophy.values-philosophy. (Now, (Now, more than ever.)more than ever.)22. Quality!!!!!! (Now, more than 22. Quality!!!!!! (Now, more than ever.)ever.)23. No corner cutting. (Now, more23. No corner cutting. (Now, more than ever.)than ever.)24. Constant reviews/War room.24. Constant reviews/War room.25. Celebration of small wins.25. Celebration of small wins.
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Black Swan Tactical RulesBlack Swan Tactical Rules
26. 26. People FirstPeople First/HR is King./HR is King.27. Help people with personal27. Help people with personal financial management.financial management.28. Be generous to those who are28. Be generous to those who are let go—e.g. healthcare benefits.let go—e.g. healthcare benefits.29. Don’t over-analyze.29. Don’t over-analyze.30. Don’t under-analyze.30. Don’t under-analyze.31. Cuts all at once—if possible.31. Cuts all at once—if possible.32. Cuts explained in great detail.32. Cuts explained in great detail.33. Quantitative calendar33. Quantitative calendar management—focus on “to management—focus on “to don’ts.”don’ts.”
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Black Swan Tactical RulesBlack Swan Tactical Rules
34. 34. IncreaseIncrease customer-service customer-service training.training.35. In general, minimize training 35. In general, minimize training cuts.cuts.36. Be(very)ware R&D cuts; R&D36. Be(very)ware R&D cuts; R&D quick pay SWAT teams.quick pay SWAT teams.37. Beware such things as sales37. Beware such things as sales travel cuts, ad cuts.travel cuts, ad cuts.38. “Across the board” = Dumb.38. “Across the board” = Dumb.39. Is this a time to over-invest if 39. Is this a time to over-invest if cash is at hand? (E.g., distressedcash is at hand? (E.g., distressed innovative start-ups?innovative start-ups?
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Black Swan Tactical RulesBlack Swan Tactical Rules
40. Stealth work on the likes of 40. Stealth work on the likes of XF communication.XF communication.41. This could last a long time—41. This could last a long time— LT prep is necessary LT prep is necessary nownow..42. Prepare/Be prepared for 42. Prepare/Be prepared for moremore Black Swans.Black Swans.
43. 43. ExcellenceExcellence.. (Now, (Now, more than ever.)more than ever.)(44. Remember all this in(44. Remember all this in peacetime—Chuck Knight’speacetime—Chuck Knight’s legacy.)legacy.)
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Thank you, Thank you, Eleanor, Jay, Eleanor, Jay,
Kevin & Mike …Kevin & Mike …
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““Do one Do one thing every thing every
day that day that scares you.”scares you.”
—Eleanor Roosevelt
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““I’m not comfortable I’m not comfortable unless I’m unless I’m
uncomfortable.”uncomfortable.”—Jay Chiat
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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!!
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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.
Michelangelo