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Tom Peters’ Excellence. Always. Trinity University Policy Maker Breakfast 20 March 2009 To appreciate this presentation [and ensure that it is not a mess], you need Microsoft fonts: NOTE: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” “It suddenly occurred to me … “It suddenly occurred to me that in the space of two or three hours he never talked about cars.” —Les Wexner “Tom, let me tell you the definition of a good lending officer. After church on Sunday, on the way home with his family, he takes a little detour to drive by the factory he just lent money to. Doesn’t go in or any such thing, just drives by and takes a look.” Message from a banker, circa 1988: “Managers have lost dignity over the past decade in the face of wide spread institutional breakdown of trust and self-policing in business. To regain society’s trust, we believe that business leaders must embrace a way of looking at their role that goes beyond their responsibility to the shareholders to include a civic and personal commitment to their duty as institutional custodians. In other words, it is time hat management became a profession.” —Rakesh Khurana & Nitin Nohria, “It’s ime To Make Management a True Profession,” HBR/10.08 “Too Much Cost, Not Enough Value” … “Too Much Speculation, Not Enough Investment” … “Too Much Complexity, Not Enough Simplicity” … “Too Much Counting, Not Enough Trust” … “Too Much Business Conduct, Not Enough Professional Conduct” … “Too Much Salesmanship, Not Enough Stewardship” … “Too Much Focus on Things, Not Enough Focus on Commitment” … “Too Many Twenty-first Century Values, Not Enough EighteenthCentury Values” … “Too Much ‘Success,’ Not Enough Character” —chapter titles from John Bogle, Enough. The Measures of Money, Business, and Life (Bogle is founder of the Vanguard Mutual Fund Group) “I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for Buy a very large one and just wait.” myself?’ The answer seems obvious: —Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics “Data drawn from the real world attest to a fact that is beyond Everything in existence tends to deteriorate.” our control: —Norberto Odebrecht, Education Through Work #4 Japan #2T USA #2T China #4 Japan #3 USA #2 China #1 Germany Reason!!! Mittelstand Jim’s Mowing Canada Jim’s Mowing UK Jim’s Antennas Jim’s Bookkeeping Jim’s Building Maintenance Jim’s Carpet Cleaning Jim’s Car Cleaning Jim’s Computer Services Jim’s Dog Wash Jim’s Driving School Jim’s Fencing Jim’s Floors Jim’s Painting Jim’s Paving Jim’s Pergolas [gazebos] Jim’s Pool Care Jim’s Pressure Cleaning Jim’s Roofing Jim’s Security Doors Jim’s Trees Jim’s Window Cleaning Jim’s Windscreens Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group *Basement Systems Inc. *Larry Janesky *Dry Basement Science (115,000!) *1990: $0; 2003: $13M; 2007: $62,000,000 The “Unlucky Thirteen”: Big companies! Public companies! “Cool” industries! Stability! Famous CEOs! “Hard” stuff! Plans! “Success”! Men! Young! Incrementalism-Kaizen Minimization! Uniformity! The “Lucky Thirteen”: SMEs! Private companies! “Dull” industries! Churn! laudable CEOs! “Soft” stuff! Excellence! Action-Execution! Women! Boomers-Geezers! Imagination Unbound! Accentuate the Positive! Individuality! Conrad Hilton, at a gala celebrating his career, was asked, “What was the most important lesson you’ve learned in your long and distinguished career?” His immediate answer … “remember to tuck the shower curtain inside the bathtub” “Execution is strategy.” —Fred Malek MBWA CBVA* *Command By Visiting About/U.S. Grant/circa 1865 (“In these days of telegraph and steam I can command while traveling and visiting about.”) 1982 Excellence1982: The Bedrock “Eight Basics” 1. 2. 3. 4. 5. 6. 7. 8. A Bias for Action Close to the Customer Autonomy and Entrepreneurship Productivity Through People Hands On, Value-Driven Stick to the Knitting Simple Form, Lean Staff Simultaneous Loose-Tight Properties” “Breakthrough” 82* People! Customers! Action! Values! *In Search of Excellence Hard Is Soft Soft Is Hard Hard Is Soft (Plans, #s) Soft Is Hard (people, customers, values, relationships)) “The 7-S Model” Strategy Structure Systems Style Skills Staff Super-ordinate goal “The 7-S Model” “Hard S’s” (Strategy, Structure, Systems) “Soft S’S” (Style, Skills, Staff, Super-ordinate goal) “The 7-S Model” Strategy Structure Systems Style (Corporate “Culture,” “The way we do things around here”) Skills (“Distinctive Competence/s) Staff (People-Talent) Super-ordinate goal (Vision, Core Values) “If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands [Yet] I came to see in my time at IBM that culture isn’t just one aspect of the game—it is the game.” of people is very, very hard. —Lou Gerstner, Who Says Elephants Can’t Dance 2007 Siberia Why in the World did you go to Siberia? An emotional, vital, innovative, joyful, creative, entrepreneurial endeavor that elicits maximum Enterprise* ** (*at its best): concerted human potential in the wholehearted service of others.** **Employees, Customers, Suppliers, Communities, Owners, Temporary partners 2007 Sydney Organizations exist to serve. Period. Leaders live to serve. Period. “Leaders ‘SERVE’ people. Period.” —inspired by Robert Greenleaf … 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. “We are a ‘Life Success’ Company.” Dave Liniger, founder, RE/MAX “Managing winds up being the management of the allocation of resources against tasks. Leadership focuses on people. My definition of a leader is someone who helps people succeed.” —Carol Bartz, Yahoo! The Dream Manager —Matthew Kelly “An organization can only become the-best-version-of-itself to the extent that the people who drive that organization are striving to become better-versions-of-themselves.” “A company’s purpose is to become the-best-version-of-itself. The What is an employee’s purpose? Most would say, ‘to help the company achieve its purpose’—but they would be wrong. That is certainly part of the employee’s role, but an employee’s primary purpose is to become the-bestversion-of-himself or –herself. … When a question is: company forgets that it exists to serve customers, it quickly Our employees are our first customers, and our most important customers.” goes out of business. “The role of the Director is to create a space where the actors and become more than they’ve ever been before, more than they’ve dreamed of being.” actresses can —Robert Altman, Oscar acceptance speech “No matter what the situation, [the great manager’s] first response is always to think about the individual concerned and how things can be arranged to help that individual experience success.” —Marcus Buckingham, The One Thing You Need to Know “The four most important words in any organization ‘What do you think?’ ” are … Source: courtesy Dave Wheeler, posted at tompeters.com, source of original unknown (0609.08) “The deepest human need is the need to be appreciated.” William James “Buy in”“Ownership”Authorial bragging rights-“Born again” Champion = One Line of Code! "Trust the development experts—all seven billion of them.” —headline, Financial Times, 0529.08, to an article by development guru William Easterly, commenting negatively on the World Bank Growth Commission’s recent report that concludes, in effect, “trust the World Bank experts” “It was much later that I realized Dad’s secret. He gained respect by giving it. He talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same way he talked and listened to a bishop or a He was seriously interested in who you were and what you had to say.” college president. Sara Lawrence-Lightfoot, Respect “Don’t belittle!” —OD Consultant “You have to treat your employees like customers.” —Herb Kelleher, complete answer, upon being asked his “secrets to success” Source: Joe Nocera, NYT, “Parting Words of an Airline Pioneer,” on the occasion 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; across the way in Dallas American Airlines’ pilots were picketing the Annual Meeting) The Customer Comes Second —Hal Rosenbluth and Diane McFerrin Peters* (*no relation) “Business has to give people enriching, rewarding lives, or it's simply not worth doing.” —Richard Branson “How to flush $500,000 down the toilet in one easy lesson!!” TP: < CAPEX > People! Wegmans 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 Brand = Talent. Ben Changes His BHAG!* *Big Hairy Audacious Goal/Collins Profitable “We are thoughtful in all we do.” Thoughtfulness is key to customer retention. Thoughtfulness is key to employee recruitment and satisfaction. Thoughtfulness is key to brand perception. Thoughtfulness is key to your ability to look in the mirror—and tell your kids about your job. “Thoughtfulness is free.” Thoughtfulness is key to speeding things up— it reduces friction. Thoughtfulness is key to transparency and even cost containment—it abets rather than stifles truth-telling. none! 139,380 former patients from 225 hospitals: Press Ganey Assoc: none of THE top 15 factors determining Patient Satisfaction referred to patient’s health outcome P.S. directly related to Staff Interaction P.P.S. directly correlated with Employee Satisfaction Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel “Kindness is free.” “Development can help great but if I had a dollar to spend, I’d spend 70 cents getting the right person in the door.” — people be even better— Paul Russell, Director, Leadership & Development, Google the most important aspect of business “In short, hiring is and yet remains woefully misunderstood.” Source: Wall Street Journal, 10.29.08, review of Who: The A Method for Hiring, Geoff Smart and Randy Street #1. Strategic. Priority. Period. #1 cause of Dis-satisfaction? Employee retention & satisfaction: Overwhelmingly, based on the firstline manager! Source: Marcus Buckingham & Curt Coffman, First, Break All the Rules: What the World’s Greatest Managers Do Differently 2/year = legacy. “Diverse groups of problem solvers—groups of people with diverse tools—consistently outperformed groups of the best and the brightest. If I formed two groups, one random (and therefore diverse) and one consisting of the best individual performers, the first group almost always did better. … Diversity trumped ability.” —Scott Page, The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Diversity “The Billion-man Research Team: Companies offering work to online communities are reaping the benefits of ‘crowdsourcing.’” —Headline, FT, 0110.07 “In Blackburn, olds four-year- are making podcasts. In Suffolk, the sometimes tedious and impractical ritual of morning Assembly has been replaced in one school by a news video compiled by pupils; posting it on YouTube means parents can watch as well—and they do. … Learners at all stages and ages, from all over the world, are downloading free tutorials while they replenish their iPods, courtesy of iTunes U. … Source: The Guardian, 0113.09, “Resource 2009,” a preview of BETT 2009 “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 “Normal” = “o for 800” 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! “Forget China, India and the Internet: Economic Growth Is Driven by Women.” —Headline, Economist, April 15, 2006, Leader, page 14 “One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to spend. … This is just the beginning. The phenomenon will only grow as girls prove to be more successful than For a number of observers, we have already entered the age of ‘womenomics,’ the economy as thought out and practiced by a woman.” —Aude Zieseniss de Thuin, Financial boys in the school system. Times, 10.03.2006 “AS LEADERS, WOMEN RULE: 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. —Judy B. Rosener, America’s Competitive Secret: Women Managers Period??!!* Start: 3 0f 14 18 months later: 10 of 18 (“deep dip”!) *AIM/September 2007 “Women are the majority market” —Fara Warner/The Power of the Purse Big bank CEO, summarizing to his top-management team his “Tom’s made a great point; he let us know that our customer base will be different and more diverse in the future.” notes from TP’s presentation: “With all due respect, that’s not what Tom said. Though I am an unabashed supporter of ‘diversity’ in general, what I said was Tom: ‘She is your customer—and has been for a long time and will be forever.’ And ‘she’ is notably AWOL in this [meeting] room full of senior ‘leaders.’ ” “Goldman Sachs in Tokyo has developed an index of 115 companies poised to benefit from women’s increased purchasing power; over the past decade the value of shares in Goldman’s basket has risen by 96%, against the Tokyo stockmarket’s rise of 13%.” —Economist, April 15 10 UNASSAILABLE REASONS WOMEN RULE Women make [all] the financial decisions. Women control [all] the wealth. Women [substantially] outlive men. Women start most of the new businesses. Women’s work force participation rates have soared worldwide. Women are closing in on “same pay for same job.” Women are penetrating senior ranks rapidly [even if the pace is slow for the corner office per se]. Women’s leadership strengths are exceptionally well aligned with new organizational effectiveness imperatives. Women are better salespersons than men. Women buy [almost] everything—commercial as well as consumer goods. So what exactly is the point of men? Cases! Cases! Cases! McDonald’s (“mom-centered” to “majority consumer”; not via kids) Home Depot (“Do it [everything!] Herself”) P&G (more than “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 94% of loans to … women* *Microlending; “Banker to the poor”; Grameen Bank; Muhammad Yunus; 2006 Nobel Peace Prize winner !!!!!!!!!!!!!!!!! “People turning 50 more than half of today have their adult life ahead of them.” —Bill Novelli, 50+: Igniting a Revolution to Reinvent America We are the Aussies & Kiwis & Americans & Canadians. We are the Western Europeans & Japanese. We are the fastest growing, the biggest, the wealthiest, the boldest, the most (yes) ambitious, the most experimental & exploratory, the most different, the most indulgent, the most difficult & demanding, the most service & experience obsessed, the most vigorous, (the least vigorous,) the most health conscious, the most female, the most profoundly important commercial market in the history of the world—and we will be the Center of your universe for the L(+21) = L(-21) Leadership(21A.D.) = Leadership(21B.C.) Give good tea! “In the same bitter winter of 1776 that Gen. George Washington led his beleaguered troops across the Delaware River to safety, Benjamin Franklin sailed across the Atlantic to Paris to engage in an equally crucial campaign, this one diplomatic. A lot depended on the bespectacled and decidedly unfashionable 70-year-old as he entered the world’s fashion capitol sporting a Franklin’s miracle was that armed only with his canny personal charm and reputation as a scientist and philosopher, he was able to cajole a wary French government into lending the fledgling American nation an enormous fortune. … The enduring image of Franklin in Paris tends simple brown suit and a fur cap. … to be that of a flirtatious old man, too busy visiting the city’s fashionable salons to pursue affairs When Adams joined Franklin in Paris in 1779, he was scandalized by the late hours and French lifestyle his colleague had adopted, says [Stacy Schiff, in A Great Improvisation] Adams was clueless that it was through the dropped hints and seemingly offhand remarks at these salons that so much of French diplomacy was conducted. … Like the Beatles arriving in America, Franklin aroused a fervor—his of state as rigorously as John Adams. face appeared on prints, teacups and chamber pots. The extraordinary popularity served Franklin’s diplomatic purposes splendidly. Not even King Louis XVI could ignore the enthusiasm that had won over both the nobility and the bourgeoisie. …” Source: “In Paris, Taking the Salons By Storm: How the Canny Ben Franklin Talked the French into Forming a Crucial Alliance,” U.S. News & World Report, 0707.08 “eighty percent of success is showing up.” —Woody Allen “Allied commands depend on mutual confidence [and this confidence] is gained, above all through the development of friendships.” —General D.D. Eisenhower, Armchair General* (05.08) *“Perhaps his most outstanding ability [at West Point] was the ease with which he made friends and earned the trust of fellow cadets who came from widely varied backgrounds; it was a quality that would pay great dividends during his future coalition command Ike: An American Hero, Michael Korda/pp268-371: “infectious grin and great charm” “nice face” “grin that was to become so famous” “got along famously” “goodwill was spontaneous and easily recognizable” “good impression that Ike had made in six weeks” [newcomer junior general to supreme commander, Torch; Marshall-ADM King-Roosevelt-Churchill-British “least rank-conscious of generals” “Men were happy to serve under Ike, even British admirals and generals who might easily have raised objections. His sincerity and lack of ceremony made it difficult, even impossible, to refuse him, and enabled him very rapidly to pull a team together …” “Ike was gregarious, rarely had anything bad to say about anyone, and, on the surface at least, was relaxed and good natured.” “Whereas Ike’s good humor was genuine, unaffected, and affectionate, Monty’s [Field Marshall Montgomery] was cruel and mocking and always carried a sting” Chiefs of Staff] “We hire people who smile”—Starbucks manager “Mandela, a model host [in his prison hospital room] smiled grandly, put [Justice Minister Kobie] Coetzee at his ease, and almost immediately, to their quietly contained surprise, prisoner and jailer found themselves chatting amiably. … [It had mostly] to do with body language, with the impact Mandela’s manner had on people he met. First there was his erect posture. Then there was the way he shook hands. The effect was both regal and intimidating, were it not for Mandela’s warm gaze and his big, easy smile. … Coetzee was surprised by Mandela’s willingness to talk in Afrikaans, his knowledge of Afrikaans history.” Coetzee: “He was a born leader. And he was affable. He was obviously well liked by the hospital staff and yet he was respected even though they knew he was a prisoner.” Source: John Carlin, Playing the Enemy: Nelson Mandela and the Game that Made a Nation. (Mandela meets surreptitiously with justice minister after decades in prison—and turns on the charm.) Major Van Sittert, brute commanding officers, immune to Mandela’s charm: “He thought hard, probing for weakness. And he found one. Sittert was a rugby nut. So, Mandela, who had no special interest in rugby [the quintessential white man’s sport], set about zealously learning the game in preparation for the major’s monthly visit.” Christo Brand, guard: “Mandela was very polite as usual. He greeted [Sittert] with a big smile, and then immediately started talking rugby. … Once the major got over his amazement, he became very animated, agreeing with Mandela on almost every point he made. You could see all those doubts of the major just melting away.” Source: John Carlin, Playing the Enemy: Nelson Mandela and the Game that Made a Nation “We behaved as if we were guests in their house. We treated them not as a defeated people, but as allies. Our success became their success.” —“How One Soldier Brought Democracy to Iraq: The Mayor of Ar Rutbah” (MAJ James Gavrilis/USA Special Forces) “Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” —Henry Clay “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, What Got You Here Won’t Get You There: How Successful People Become Even More Successfu. Relationships (of all varieties): THERE ONCE WAS A TIME WHEN A THREE-MINUTE PHONE CALL WOULD HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE. THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM.* *PERCEPTION IS ALL THERE IS! #1 Truthteller … You = Your calendar* *Calendars never lie “I used to have a rule for myself that at any point in time I wanted to have in mind — as it so happens, also in writing, on a little card I carried around with me — the three big things I was trying to get done. Three. Not two. Not four. Not five. Not ten. Three.” — Richard Haass, The Power to Persuade “Dennis, you need a … ‘To-don’t ’ List !” “You must be the change you wish to see in the world.” Gandhi “Do one thing every day that scares you.” —Eleanor Roosevelt Skip the map “Mapping your competitive position” or … The “Have you …” 50 1. Have you in the last 10 days … visited a customer? 2. Have you called a customer … TODAY? Try it. Try it. Try it ry it. Try it. Screw up. Try it. Try it. Try t. Try it. Try it. Try t. Try it. Screw it up t. Try it. Try it. try Dick ’n dan “We have a ‘strategic plan.’ It’s called doing things.” — Herb Kelleher “This is so simple it sounds stupid, but it is amazing how few oil people really understand that you only find oil if you drill wells. You may think you’re finding it when you’re drawing maps and studying logs, but you have to drill.” Source: The Hunters, by John Masters, Canadian O & G wildcatter “We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the software. We fixed them by doing it over and over, again and again. We do the same today. While our competitors are still sucking their thumbs trying to make the design perfect, we’re already on prototype version #5. By the time our rivals are ready with wires and screws, we are on version #10. It gets back to planning versus acting: We act from day one; others plan how to plan— for months.” —Bloomberg by Bloomberg “Experiment fearlessly” Source: BW0821.06, Type A Organization Strategies/ “How to Hit a Moving Target”—Tactic #1 “Fail . Forward. Fast.” High Tech CEO, Pennsylvania “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec “It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.” —Charles Darwin DECENTRALIZATION. EXECUTION. ACCOUTABILITY. 6:15A.M. The 19 Es of Excellence If Not Excellence, What? If Not Excellence Now, When? The “19 Es” of Excellence Enthusiasm. (Be an irresistible force of nature!) Energy. (Be fire! Light fires!) Exuberance. (Vibrate—cause earthquakes!) Execution. (Do it! Now! Get it done! Barriers are baloney! Excuses are for wimps! Accountability is gospel! Adhere to the Bill Parcells doctrine: “Blame nobody! Expect nothing! Do something!”) Empowerment. (Respect and appreciation! Always ask, “What do you think?” Then: Listen! Liberate! Celebrate! 100% innovators or bust!) Edginess. (Perpetually dancing at the frontier, and a little or a lot beyond.) Enraged. (Determined to challenge & change the status quo!) Engaged. (Addicted to MBWA/Managing By Wandering Around. In touch. Always.) Electronic. (Partners with the world 60/60/24/7 via electronic community building and entanglement of every sort. Crowdsourcing/doing power!) Encompassing. (Relentlessly pursue diverse opinions—the more diversity the merrier! Diversity per se “works”!) Emotion. (The alpha. The omega. The essence of leadership. The essence of sales. Empathy. The essence of marketing. The essence. Period. Acknowledge it.) (Connect, connect, connect with others’ reality and aspirations! “Walk in the other person’s shoes”—until the soles have holes!) Experience. (Life is theater! Make every activity-contact memorable! Standard: “Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.) Eliminate. (Keep it simple!) Errorprone. (Ready! Fire! Aim! Try a lot of stuff and make a lot of booboos and then try some more stuff and make some more booboos—all of it at the speed of light!) Evenhanded. Expectations. Eudaimonia. Excellence. (Straight as an arrow! Fair to a fault! Honest as Abe!) (Michelangelo: “The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.” Amen!) (Pursue the highest of human moral purpose—the core of Aristotle’s philosophy. Be of service. Always.) (The only standard! Never an exception! Start now! No excuses! If not Excellence, what? If not Excellence now, when?) “Mr. Watson, how long does it take to achieve Excellence?” minute” Excellence. Always.