Transcript The Challenge: To Create More Value in All Negotiations
MBWA Managing By Wandering Around/ HP
50%.
Un-scheduled.
Source: Dov Frohman
You = Your calendar
*
*The calendar
never
lies.
Your calendar knows Precisely what you really care about.
Do you ????
“Dennis, you need a …
‘To-don’t ’
List !”
Don’t >
Do* * “Don’ting” must be systematic > WILLPOWER
“If there is any one ‘secret’ to effectiveness, it is concentration. Effective executives do first things first … time.”
—Peter Drucker
and they do one thing at a
“
It’s always showtime.”
—David D’Alessandro, Career Warfare
Monday/Tomorrow:
your first 5-10 “plays.” “Script”
(I.e., carefully launch the day/week in a purposeful fashion.)
“You have to treat your employees like customers.”
—Herb Kelleher, upon being asked his “secret to success” Source: Joe Nocera, on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines NYT , “Parting Words of an Airline Pioneer,” (SWA’s pilots union took out a full-page ad in USA Today thanking HK for all he had done) ; across the way in Dallas, American Airlines’ pilots were picketing AA’s Annual Meeting)
"If you want staff to give great service, give great service to staff."
—Ari Weinzweig, Zingerman's
“A Nice Place to Work
“Some of our people spend their entire working lives in our agency. We do our damnedest to make it a happy experience. I put this first, believing that superior service to our clients, and profits for our stockholders, depend on it. …”
—David Ogilvy, on Ogilvy & Mather’s corporate culture
“The path to a
hostmanshi
p culture paradoxically does not go through the guest. In fact it wouldn’t be totally wrong to say that the guest has
nothing to do with it. True hostmanship leaders focus on their employees. What drives exceptionalism is finding the right people and getting them to love their work and see it as a passion. ... The guest comes into the picture only when you are ready to ask, ‘Would you prefer to stay at a hotel where the staff love their work or
where management has made customers its highest priority?’” “We went through the hotel and made a ...
‘ consideration renovation.’
Instead of redoing bathrooms, dining rooms, and guest rooms, we gave employees new uniforms, bought flowers and fruit, and changed colors.
happy.
Our focus was totally on the staff.They were the ones we wanted to make
We wanted them to wake up every morning excited about a new day at work.”
Source: Jan Gunnarsson and Olle Blohm,
Hostmanship: The Art of Making People Feel Welcome
.
“
consideration renovation”
Zabar’s Parking Garage
*
*Retail Superstars: Inside the 25 Best Independent Stores in America, by George Whalin
List 5 (10?) (2?) “Zabar’s garage” equivalents in your organization. …
“We are a ‘Life Success’ Company.”
Dave Liniger, founder, RE/MAX
Our Mission
To develop and manage talent; to apply that talent, throughout the world, for the benefit of clients; to do so in partnership; to do so with profit.
WPP
… no less than
Cathedrals
in which the full and awesome power of the Imagination and Spirit and native Entrepreneurial flair of diverse individuals is unleashed in passionate pursuit of … Excellence .
Oath of Office: Managers/Servant Leaders Our goal is to serve our customers brilliantly and profitably over the long haul.
Serving our customers brilliantly and profitably over the long haul is a product of brilliantly serving, over the long haul, the people who serve the customer.
Hence, our job as leaders—the alpha and the omega and everything in between—is abetting the sustained growth and success and engagement and enthusiasm and commitment to Excellence of those, one at a time, who directly or indirectly serve the ultimate customer.
We—leaders of every stripe—are in the “Human Growth and Development and Success and Aspiration to Excellence business.” “We” [leaders] only grow when “they” [each and every one of our colleagues] growing.
“We” [leaders] are succeeding.
“We” [leaders] only energetically march toward Excellence when “they” only succeed when “they” [each and every one of our colleagues] [each and every one of our colleagues] toward Excellence.
Period.
are energetically marching are
7 Steps to Sustaining Success You take care of the people. The people take care of the service. The service takes care of the customer.
The customer takes care of the profit. The profit takes care of the re-investment.
The re-investment takes care of the re-invention. The re-invention takes care of the future.
(And at every step the only measure is EXCELLENCE.)
7 Steps to Sustaining Success
You take care of the people.
The people take care of the service. The service takes care of the customer.
The customer takes care of the profit. The profit takes care of the re-investment.
The re-investment takes care of the re-invention. The re-invention takes care of the future.
(And at every step the only measure is EXCELLENCE.)
“The ONE Question”: “In the last year [3 years, current job], name the …
three people
… whose growth you’ve most contributed to. Please explain where they were at the beginning of the year, where they are today, and where they are heading in the next 12 months. Please explain … in painstaking detail … your development strategy in each case. Please tell me your biggest development disappointment—looking back, could you or would you have done anything differently? Please tell me about your greatest development triumph—and disaster—in the last five years. What are the ‘three big things’ you’ve learned about helping people grow along the way?”
Promotion Decisions
“life and death decisions”
Source: Peter Drucker, The Practice of Management
“A man should never be promoted to a managerial position if his vision focuses on people’s weaknesses rather than on their strengths .”
—Peter Drucker, The Practice of Management
Andrew Carnegie’s Tombstone Inscription …
Here lies a man Who knew how to enlist In his service Better men than himself.
Source: Peter Drucker, The Practice of Management
“ Development can help great people be even better—
but if I had a dollar to spend, I’d spend 70 cents getting the right person in the door.”
— Paul Russell, Director, Leadership and Development, Google
“In short, hiring is
most important aspect of business
and yet remains woefully misunderstood.”
the
Source: review of Wall Street Journal , 10.29.08, Who: The A Method for Hiring, Geoff Smart and Randy Street
What will you do in the next 90 days to begin the journey to “all Star” hire-er??
Source: Container Store/Goal: increase average sale per shopper
Exhibitions of bravery: All hail the … TRAINING … department.
No company ever Expended too much thought/Effort/ $$$$ on training!
*
* ESPECIALLY … small company
“The four most important words in any organization are …
The four most important words in any organization are …
“What do you think?”
Source: courtesy Dave Wheeler, posted at tompeters.com
Tomorrow: How many times will you
“ask the WDYT
question”?
[
Count ‘em!!
] [Practice makes better!] [This is a
STRATEGIC
skill!]
What do managers do for a living?
Help!
Right?
How many of us could call ourselves judge.) “professional helpers,” meaning that we have studied—like a professional mastering her musical craft—“helping”? (Not many, I’d Ed Schein: Helping: How to Offer, Give, and Receive Help Last chapter: 7 “principles.” E.g.: PRINCIPLE 2: Perceived to Be Equitable.
PRINCIPLE 4: PRINCIPLE 5: “Effective Help Occurs When the Helping Relationship Is “Everything You Say or Do Is an Intervention that Determines the Future of the Relationship..
“Effective Helping Begins with Pure Inquiry.
PRINCIPLE 6: “It Is the Client Who Owns the Problem.”* (*Love the idea that the employee is a “Client” !
Words matter!! Read a quote from NFL player-turned lawyer-turned professional football coach, calling his players “my clients.”) Employee as Client! “Helping” is what we [leaders] “do” for a living!
STUDY/PRACTICE “helping” as you would neurosurgery!
(“Helping” is your neurosurgery!)
“Being aware of yourself and how you affect everyone around you is what distinguishes a superior leader.”
—Edie Seashore ( Strategy + Business #45)
“How can a high-level leader like _____ be so out of touch with the truth about himself? It’s more common than you would imagine. In fact, the higher up the ladder a leader climbs, the less accurate his self-assessment is likely to be .
The problem is an acute lack of feedback [especially on people issues].”
—Daniel Goleman (et al.), The New Leaders
“Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.”
—Henry Clay, American Statesman (1777-1852)
none!
Press Ganey Assoc: 139,380 patients from 225 former hospitals:
none of THE top 15 factors determining P atient S atisfaction referred to patient’s health outcome.
Instead: directly related to Interaction; Staff directly correlated with Employee Satisfaction Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel
“There is a misconception that supportive interactions require more staff or more time and are therefore more costly. Although labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget.
Kindness is free.
Listening to patients or answering their questions costs nothing. It can be argued that negative interactions —alienating patients, being non-responsive to their needs or limiting their sense of control —can be very costly. … Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative —requiring far more time than it would have taken to interact with them initially in a positive way.”
Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel (Griffin Hospital/Derby CT; Plantree Alliance)
K = R = P
Kindness = Repeat business = Profit.
K = R = P/Kindness = Repeat business = Profit Kindness: Kind.
Thoughtful.
Decent. Caring. Attentive.
Engaged.
Listens well/obsessively.
Appreciative.
Open.
Visible.
Honest.
Responsive.
On time all the time.
Apologizes with dispatch for screwups.
“Over”-reacts to screwups of any magnitude.
“Professional” in all dealings.
Optimistic.
Understands that kindness to staff breeds kindness to others/outsiders.
Applies throughout the “supply chain.” Applies to 100% of customer’s staff.
Explicit part of values statement.
Basis for evaluation of 100% of our staff.
“The deepest human need is the … need to be appreciated .”
—William James
A CANDIDATE FOR THE “VALUES STATEMENT”: “We habitually express appreciation for one another’s efforts—because we do in fact consciously appreciate everyone’s ‘ordinary’ ‘daily’ contributions, let alone the extraordinary ones.”
“Ladies and gentlemen serving ladies and gentlemen.”
—Ritz Carlton credo
“I regard apologizing as the most magical, healing, restorative gesture human beings can make. It is the centerpiece of my work with executives who want to get better.”
—Marshall Goldsmith Even More Successful. , What Got You Here Won’t Get You There: How Successful People Become
With a new and forthcoming policy on apologies … Toro, the lawn mower folks, reduced the average cost of settling a claim from $115,000 in 1991 to $35,000 in 2008—and the company hasn’t been to trial in the last 15 years! Source: John Kador, Effective Apology
Relationships (of all varieties) :
THERE ONCE WAS A TIME WHEN A
THREE-MINUTE PHONE CALL
WOULD HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE.
*
*divorce, loss of a BILLION $$$ aircraft sale, etc., etc.
THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE
RESPONSE
TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM.* *PERCEPTION IS ALL THERE IS!
Comeback
[big, quick response]
>> Perfection
“Will you guys please come up front. Will you guys please move to the rear.”
Service > Sales
READY.
FIRE!
AIM.
H. Ross Perot (vs “ Aim! Aim! Aim!” /EDS vs GM/1985)
/45
In Search of Excellence /1982: The Bedrock “Eight Basics” 1.
A Bias for Action
2. Close to the Customer 3. Autonomy and Entrepreneurship 4. Productivity Through People 5. Hands On, Value-Driven 6. Stick to the Knitting 7. Simple Form, Lean Staff 8. Simultaneous Loose-Tight Properties
“We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the software.
and again.
We fixed them by doing it over and over, again
We do the same today. While our competitors are still sucking their thumbs trying to make the design perfect, we’re already on prototype version
#
5.
By the time our rivals are ready with wires and screws, we are on version
#10.
It gets back to planning versus acting: We act from day one; others plan how to plan—for months.”
—Bloomberg by Bloomberg
“Experiment fearlessly”
Source: BusinessWeek , “Type A Organization Strategies: How to Hit a Moving Target”—
Tactic #1
“relentless trial and error”
*
*Cornerstone of effective approach to “rebalancing” company portfolios in the face of changing and uncertain global economic conditions ( Wall Street Journal, 11.08.10)
“Fail.
Forward. Fast.”
High Tech CEO, Pennsylvania
“Fail. Fail again. Fail better.”
—Samuel Beckett
“No man ever became great except through many and great mistakes.”
—William Gladstone (from Timeless Wisdom , compiled by Gary Fenchuk)
“You miss
100%
of the shots you never take.”
—Wayne Gretzky
BLAME NOBODY.
EXPECT NOTHING.
DO SOMETHING.
Source: Locker room sign posted by NFL football coach Bill Parcells
“You will become like the five people you associate with the most—this can be either a blessing or a curse.”
—Billy Cox
We are What We Eat/We Are the company we keep
Measure “Strangeness”/Portfolio Quality Staff Consultants Vendors Out-sourcing Partners Competitors Customers Product Portfolio IS/IT Projects HQ Location Lunch Mates Language (#, Quality) Innovation Alliance Partners (who we “benchmark” against) Strategic Initiatives (LineEx v. Leap) Board
The “We are what we eat”/ “We are who we hang out with” Axiom: At its core, every (!!!) relationship-partnership decision (employee, vendor, customer, etc, etc) is a strategic decision about:
“Innovate, ‘Yes’ or
‘No’
”
“[CEO A.G.] Lafley has shifted P&G’s focus on inventing all its own products to developing …
others’ inventions at least half the time
.
One successful example, Mr. Clean Magic Eraser, based on a product found in an Osaka market.” — Fortune
Axiom:
Never use a vendor who is not in the
top quartile
(decile?) in their industry on R&D spending!
“Don’t benchmark, futuremark!”
Impetus: “The future is already here; it’s just not evenly distributed” —William Gibson
“d”iversity
Can you pass the …
“Squint test”?
“
The Bottleneck …
“
The Bottleneck … Is at the Top of the 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 …
At the top!”
— Gary Hamel/ Harvard Business Review
2,000,000
7X.
7:30A-8:00P. F12A.
7:30AM = 7:15AM.
8:00PM = 8:15PM.
Conveyance: Kingfisher Air Location: Approach to New Delhi
“May I clean your glasses, sir?”
It
BEGINS
(and
ENDS
) in the …
parking lot
*
*Disney
and … >TG R [Things Gone WRONG -Things Gone RIGHT ] s Little = Big carts = Source: Walmart Bag sizes = New markets: Source: PepsiCo All Equal Except … “At Sony we assume that all products of our competitors have basically the same technology, price, performance and features. Design is the only thing that differentiates one product from another in the marketplace.” —Norio Ohga —Fortune Hypothesis: love *Not “like” and “dislike” C O * *Chief Design Officer “I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, build a small firm for myself?’ ‘How do I The answer seems obvious … “ I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The answer seems obvious : —Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics “Mr. Foster and his McKinsey colleagues collected detailed performance data stretching back 40 years for 1,000 U.S. companies. They found that none of the long-term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did.” —Financial Times “Data drawn from the real world attest to a fact that is beyond our control: —Norberto Odebrecht, Education Through Work * * “agile creatures darting between the legs of the multinational monsters" ( Bloomberg BusinessWeek, 10.10) Larry Janesky Rocks … *Basement Systems Inc. (Seymour CT) * Dry Basement Science (115,000 copies!) *1990: $0; 2003: $13M; 2008: From: Retail Superstars: Inside the 25 Best Independent Stores in America, George Whalin Retail Superstars: Inside the 25 Best Independent Stores in America —by George Whalin Jungle Jim’s International Market, Fairfield, Ohio: adventure in ‘shoppertainment,’ as “An Jungle Jim’s call it, begins in the parking lot 1,600 cheeses and, yes, and goes on to 1,400 varieties of hot sauce not to mention 12,000 wines priced from $8 to $8,000 bottle; all this is brought to you by 4,000 vendors. Customers come from every corner of the globe.” — a Bronner’s Christmas Wonderland, Frankenmuth, Michigan, pop 5,000: 98,000-square-foot “shop” features the likes of 6,000 Christmas ornaments, 50,000 trims , and anything else you can name if it pertains to Christmas. Source: George Whalin, Retail Superstars Lessons [for Everyone] from Retail Superstars! 1. Courses/Workshops/Demos/Engagement 2. Instructional guides/material/books 3. Events & Events & Events … 4. Create “Community” of customers 5. Destination 6. Women-as-customer 7. Staff selection/training/retention (FANATICISM) 8. Fanaticism/Execution 9. Design/Atmospherics/Ambience 10. Tableaus/Products-in-use 11. Flow/starts & finishes (Disney-like) 12. 100% orchestrated experience/focus: “Moments of truth” 13. Constant experimentation/Pursue Little BIG Things 14. Social Media/Ongoing conversation with customers 15. Community star 16. Aim high 17. PASSION Billboard … ONLY 262 MILES TO BUC-EE’S YOU CAN HOLD IT.* *“If I weren’t already married, I’d have my wedding there.” —Dallas Morning News Metro blogger “Forget China , India and the Internet Driven by : Economic Growth Is .” Source: Headline, Economist > 2X * “Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could climb as high as $28 trillion in the next five years . Their $13 trillion in total yearly earnings could reach $18 trillion in the same period. In aggregate, women represent a growth market bigger than China and India combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer. And yet many companies do just that—even ones that are confidant that they have a winning strategy when it comes to women. Consider Dell’s …” Source: Michael Silverstein and Kate Sayre, “The Female Economy,” HBR , 09.09 —Fara Warner/ The Power of the Purse Women as Decision Makers/Various sources Home Furnishings … 94% Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment) Cars … Houses … 91% D.I.Y. (major “home projects”) Consumer Electronics … 68% … 80% 51% (influence (66% home computers) 90% ) All consumer purchases … 83% * Bank Account … 89% Household investment decisions … 67% Small business loans/biz starts … 70% Health Care … 80% *In the USA women hold >50% managerial positions including >50% positions; hence women also make the majority of commercial purchasing officer purchasing decisions. “The most significant variable in every sales situation is the gender of the buyer, and more importantly, how the salesperson communicates to the buyer’s gender.” —Jeffery Tobias Halter, Selling to Men, Selling to Women The Perfect Answer Jill and Jack buy slacks in black… Cases! Cases! Cases! McDonald’s (“mom-centered” to F as “majority consumer”; not via kids) Home Depot (“Do it [everything!] Herself”) P&G (more than F as “house cleaner”) DeBeers (“right-hand rings”/$4B) AXA Financial Kodak (women = “emotional centers of the household”) Nike (> jock endorsements; new def sports; majority consumer) Avon Bratz (young girls want “friends,” not a blond stereotype) Source: Fara Warner/ The Power of the Purse —Kay Napier, SVP Marketing, McDonald’s (Fara Warner, The Power of the Purse , “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom”) “McDonald’s shifted its strategy toward women from one of ‘minority’ consumers who served as a conduit to the important children’s market to one in which women are the company’s majority consumers and the main driver behind menu and promotion innovation.” —Fara Warner, The Power of the Purse , “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom” “Women don’t ‘buy’ brands. —Faith Popcorn, EVEolution 2.6 vs. Purchasing Patterns Women: Harder to convince; more loyal once convinced. Men: Snap decision; fickle. Source: Martha Barletta, Marketing to Women New Studies find that female managers outshine their male counterparts in almost every measure” TITLE/ Special Report/ BusinessWeek Women’s Strengths Match New Economy Imperatives: Link [rather than rank] workers; favor interactive- collaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills, individual & group contributions equally; readily accept ambiguity; honor intuition as well as pure “rationality”; inherently flexible; appreciate cultural diversity . Source: Judy B. Rosener, America’s Competitive Secret: Women Managers “Power Women 100”/ Forbes 10.25.10 26 female CEOs of Public Companies: Vs. Men/Market: (*Post-appointment) Vs. Industry: “TAKE THIS QUICK QUIZ: at once? appearance? Who manages more things Who puts more effort into their Who usually takes care of the details? people? ‘to do’ list? events? Who finds it easier to meet new conversation? Who asks more questions in a Who is a better listener? Who has more interest in communication skills? Who is more inclined to get involved? Who encourages harmony and agreement? has better intuition? Who Who works with a longer Who enjoys a recap to the day’s Who is better at keeping in touch with others?” Source/from the back cover: 15 Powerful Reasons Why Women Can Outsell Men Selling Is a Woman’s Game: , Nicki Joy & Susan Kane-Benson Source: Headline, Miami Herald, reporting on a study by Profs. Terrance Odean and Brad Barber, UC Davis (Cause: Guys are “in and out” of stocks more often; women choose carefully and hold on for the long term) * * * * *Women decide *Women save *Women spend *Women rule * In the developed world * In the developing world * The trend is accelerating Not Just America … —headline, Weekly Telegraph , UK, 10.25.06 Source: The Daily Mail , 0425.2007,“Why today’s women want a girl” All you need to know … Hilton Howard Herb Henry I Henry II Hamel Hill Harley Handy Hartville Heather Hewlett Hsieh Hillis Zappos 10 Corporate Values Deliver through service. Embrace and drive change. Create fun and a little weirdness. Be adventurous, creative and open-minded. Pursue growth and learning. Build open and honest relationships with communication. Build a positive team and family spirit. Do more with less. Be passionate and determined. Be humble. Source: Delivering Happiness , Tony Hsieh, CEO, Zappos.com “ Insanely Great” Steve Jobs “Radically thrilling” BMW “Astonish me!” (Sergei Diaghlev) “Build something great!” (Hiroshi Yamauchi ) “Make it immortal!” (David Ogilvy) . ) Kevin Roberts’ Credo 1 . Ready. Fire! Aim. 2. If it ain’t broke ... Break it! 3. Hire crazies. 4. Ask dumb questions. 5. Pursue failure. 6. Lead, follow ... or get out of the way! 7. Spread confusion. 8. Ditch your office. 9. Read odd stuff. 10. Avoid moderation! “You can’t behave in a calm, rational manner. You’ve got to be out there on the lunatic fringe.” — Jack Welch *Every project REQUIRES (if you’re smart) an outside look by one/some Seriously Weird Cat/s —in pursuit of whacked-out options. 14,000 20,000 30 e “In some sense you can argue that the science fiction scenario is already starting to happen. The computers are in control. We just live in their world.” —Danny Hillis, Thinking Machines ( Wired 01.2011) “ It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.” —Charles Darwin “Excellence … can be obtained if you: ... care more than others think is wise; ... risk more than others think is safe; ... dream more than others think is practical; ... expect more than others think is possible.” Source: Anon. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)TGR
.
Manage ‘em.
Measure ‘em.
“Design is
treated like a religion
at BMW.”
DESIGN is the principal difference between
and hate!*
Design is …
never
neutral.
Beauty. Grace. Clarity. Simplicity.
Buy a very large one and just wait.”
Everything in existence tends to deteriorate
.”
MittELstand
$62,000,000
“Be the best. It’s the only market that’s not crowded.”
YOU CAN HOLD IT.
Women
W
(C + I)*
“Women are
the
majority market”
“We simply had stopped being relevant to women.”
They ‘join’ them.”
H11.5
“AS LEADERS, WOMEN RULE:
+28%
+15% *
“Women Beat Men at Art of Investing”
Women decide.
Women save.
Women spend.
Women rule.
“Boys Falling Seven Years Behind Girls at GCSE Level”
“Girls are the new boys.”
“WOW!”
There is more than one way to skin a cat!*
14,000/
Bay 20,000/Amazon /Craigslist
“The computers are in control. We just live in their world.”