-1/+1

S&P 500

-1/+1*

*Every …

2 weeks

!

Source: Richard Foster (via Rita McGrath/ HBR /12.26.13

Silicon Valley = #1

“The Silicon Valley of today is built less atop the spires of earlier triumphs than upon the rubble of earlier debacles.” —Paul Saffo

“The essence of capitalism is encouraging failure, not rewarding success.”

—Nassim Nicholas Taleb/ Antifragile

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

EVERYTHING IN EXISTENCE TENDS TO DETERIORATE.”

—Norberto Odebrecht, Education Through Work ( APPLE cover story/ June 2014 )

Motueka, New Zealand

The Magicians of Motueka & the Mittelstand Trifecta

W.A. Coppins Ltd.*

(Coppins Sea Anchors/ PSA/para sea anchors) *Textiles, 1898; thrive on “wicked problems” —e.g., U.S. Navy STLVAST (Small To Large Vehicle At Sea Transfer); custom fabric from W. Wiggins Ltd ./Wellington (specialty nylon, “Dyneema,” from DSM /Netherlands)

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

“BE THE BEST. IT’S THE ONLY MARKET THAT’S NOT CROWDED.”

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

1,600 1,400

cheeses varieties of hot sauce

12,000

wines priced from

6,000 50,000

$8 to $8,000 a bottle Christmas ornaments trims

PASSION

“

INSANELY GREAT” STEVE JOBS “RADICALLY THRILLING” BMW

Excellence1982: The Bedrock “Eight Basics” 1. A Bias for Action 2. Close to the Customer 3. Autonomy and Entrepreneurship 4. Productivity Through People 5. Hands On , Value-Driven 6. Stick to 7. Simple the Knitting Form, Lean Staff 8. Simultaneous Loose-Tight Properties

“Breakthrough” 82*

People! Customers! Action! Values

! * In Search of Excellence

“Why in the world did you go to

Siberia

?”

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

ORGANIZATIONS EXIST TO SERVE. PERIOD.

LEADERS LIVE TO SERVE. PERIOD.

Michael Raynor and Mumtaz Ahmed: THE THREE RULES: How Exceptional Companies Think* : 1. Better before cheaper.

2. Revenue before cost.

3. There are no other rules.

(*From a database of over 25,000 companies from hundreds of industries covering 45 uncovered 344 companies that qualified as statistically “exceptional.”) years, they Jeff Colvin, Fortune : “The Economy Is Scary … But Smart Companies Can Dominate”: They manage for value—not for EPS.

They get radically customer-centric.

THEY KEEP DEVELOPING HUMAN CAPITAL.

CORPORATE [And GOVERNMENT ]MANDATE #1 2014: Your principal moral obligation as a business leader is to develop the skillset, “soft” and “hard,” of every one of the people in your charge (temporary as well as semi permanent) to the maximum extent of your abilities. The good news: This is also the #1 mid- to long-term … profit maximization strategy!

In Good Business , Mihaly Csikszentmihalyi argues persuasively that business has become the center of society. As such, an obligation to community is front & center. Business as societal bedrock, has the RESPONSIBILITY to increase the “SUM OF HUMAN WELL-BEING.” Business is NOT "part of the community." In terms of how adults collectively spend their waking hours … BUSINESS IS THE COMMUNITY .

And should act accordingly. The (REALLY) good news: Community mindedness is a great way [THE best way?] to have spirited/committed/ customer-centric work force—and, ultimately, increase [maximize?] profitability!

1 .

2.

3.

4.

5.

Giant STUMBLES MITTELSTAND mainstays/ Be the BEST NUMBERS game/ FAILURE “encouraged” EXCELLENCE/SERVICE MORAL imperative/ PEOPLE DEVELOPMENT

Tom Peters’

Re-Imagine EXCELLENCE

!

Gulf International Convention & Exhibition Center/10 June 2014 (slides at tompeters.com; also see excellencenow.com)

Part 1: INTRODUCTION/EXCELLENCE Part 2: PEOPLE FIRST, SECOND … Part 3: INNOVATION IMPERATIVE Part 4: VALUE-ADDED STRATEGIES Part 5: LEADERSHIP/EXTREME SOLUTIONS

Part 1: INTRODUCTION Part 2: PEOPLE FIRST, SECOND … Part 3: INNOVATION IMPERATIVE Part 4: VALUE-ADDED STRATEGIES Part 5: LEADERSHIP/EXTREME SOLUTIONS

1,000,000

“The root of our problem is not that we’re in a Great Recession or a Great Stagnation, but rather that we are in the early throes of a

Great Restructuring

. Our technologies are racing ahead, but our skills and organizations are lagging behind.” Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfee

China/Foxconn:

1,000,000

robots/next 3 years Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfee

“ Automation has become so sophisticated that on a typical passenger flight, a human pilot holds the controls for a grand total of … 3

minutes

. [Pilots] have become, it’s not much of an exaggeration to say, computer operators.” Source: Nicholas Carr, “The Great Forgetting,” The Atlantic, 11.13

“Meet Your Next Surgeon: Dr. Robot”

Source: Feature/ Fortune /15 JAN 2013/on Intuitive Surgical’s

da Vinci

/multiple bypass heart-surgery robot

“Human level capability has not turned out to be a special stopping point from an engineering perspective. ….”

Source: Illah Reza Nourbakhsh, Professor of Robotics, Carnegie Mellon, Robot Futures

Robot Wars/ $100M/millisecond “The combination of new market rules and new technology was turning the stock market into, in effect ,

a war of robots.”

—Michael Lewis

“Just like other members of the board, the algorithm gets to vote on whether the firm makes an investment in a specific company or not. The program will be the sixth member of DKV's board.”

EVERYTHING.

EVERYBODY.

EVERYWHERE.

IoT IoE

IoT/The Internet of Things IoE/The Internet of Everything M2M/Machine-to-Machine Ubiquitous computing Embedded computing Pervasive computing Industrial Internet Etc.* ** *** *“ More Than 50 BILLION **Estimated 212 BILLION connected devices by 2020” —Ericsson connected devices by 2020—IDC ***“By 2025 IoT could be applicable to $82 TRILLION of output or approximately one half the global economy”—GE [The WAGs to end all WAGs!]

“Ford is working with the healthcare industry on a solution that would notify a nearby hospital if you were having a heart attack in your car, which can send an ambulance before you even know you’re having one. …” —Daniel Kellmereit & Daniel Obodovski, The Silent Intelligence: The Internet of Things

SENSOR PILLS: “… Proteus Digital Health is one of several pioneers in sensor-based health technology. They make a silicon chip the size of a grain of sand that is embedded into a safely digested pill that is swallowed. When the chip mixes with stomach acids, the processor is powered by the body’s electricity and transmits data to a patch worn on the skin. That patch, in turn, transmits data via Bluetooth to a mobile app, which then transmits the data to a central database where a health technician can verify if a patient has taken her or his medications.

This is a bigger deal than it may seem. In 2012, it was estimated that people not taking their prescribed medications cost $258 BILLION in emergency room visits, hospitalization, and doctor visits. An average of 130,000 Americans die each year because they don’t follow their prescription regimens closely enough.” (The FDA approved placebo testing in April 2012; sensor pills are ticketed to come to market in 2015 or 2016.) Source: Robert Scoble and Shel Israel, Age of Context: Mobile, Sensors, Data and the Future of Privacy

Walmart SV =

1,500

[MUCH] More to Come

G enetics R obotics I nformatics N anotechnology

1/721: “The greatest shortcoming of the human race is our inability to understand the exponential function.” —Albert A. Bartlett

“If I had to pick one failing of CEOs, it’s that …

— Co-founder of one of the largest investment services firms in the USA/world

“If I had to pick one failing of CEOs, it’s that …

they don’t read enough.”

Part 1: INTRODUCTION Part 2: PEOPLE FIRST, SECOND … Part 3: INNOVATION IMPERATIVE Part 4: VALUE-ADDED STRATEGIES Part 5: LEADERSHIP/EXTREME SOLUTIONS

“Business has to give people enriching, rewarding lives …

#1 /4,096 “Business has to give people enriching, rewarding lives …

or it's simply not worth doing.”

—Richard Branson

"If you want staff to give great service, give great service to staff."

—Ari Weinzweig, Zingerman's

“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)

"When I hire someone, that's when work for them.” I go to

—John DiJulius, "What's the Secret to Providing a World-class Customer Experience"

“In a world where customers wake up every morning asking, ‘What’s new, what’s different, what’s amazing?’ success depends on a company’s ability to unleash initiative, imagination and passion of employees at all levels can only happen if all those folks are connected heart and soul to their work [their ‘calling’], their company and their mission.” —John Mackey and Raj Sisoda, Conscious Capitalism: Liberating the Heroic Spirit of Business —and this

Wegmans (was #1 in USA) Container Store (was #1 in USA) Whole Foods Costco Publix Darden Restaurants Build-A-Bear Workshops Starbucks

“The greatest satisfaction for management has come not from the financial growth of Camellia itself, but rather from having participated in the vast improvement in the living and working conditions of its employees, resulting from the investment of many tens of millions of pounds into the tea gardens’ infrastructure of roads, factories, hospitals, employees’ housing and amenities. … Within the Camellia Group there is a strong aesthetic dimension, an intention that it should comprise companies and assets of the highest quality, operating from inspiring offices and manufacturing in state of the art facilities.

… Above all, there is a deep concern for the welfare of each employee. This arises not only from a sense of humanity, but also from the conviction that the loyalty of a secure and enthusiastic employee will in the long-term prove to be an invaluable company asset.” — Camellia: A Very Different Company [$600M/$160M/$100M]

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] are 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

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

Training As Investment

#1

In the Army, 3-star generals worry about training. In most businesses, it's a “ho hum” mid-level staff function.

Training [OBVIOUSLY!] #1 :

Police. Fire. Military. Opera. Symphony. Theater.

Sports.

Etc.

Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?

If not, why not?

Are your top trainers paid as much as your top marketers and engineers?

If not, why not?

Are your training courses so good they make you giggle and tingle?

If not, why not?

Why is your world of business any different than the (competitive) world of rugby, football, opera, theater, the military?

If “people first” and hyper-intense continuous training are laughably obviously for them, why not you?

Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?

If not, why not?

Are your top trainers paid as much as your top marketers and engineers?

If not, why not?

Are your training courses so good they make you giggle and tingle?

If not, why not?

Randomly stop an employee in the hall: Can she/he meticulously describe her/his development plan for the next 12 months?

If not, why not?

Why is your world of business any different than the (competitive) world of rugby, football, opera, theater, the military?

If “people/talent first” and hyper-intense continuous training are laughably obviously for them, why not you?

Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?

If not, why not?

Are your top trainers paid as much as your top marketers and engineers?

If not, why not?

Are your training courses so good they make you giggle and tingle?

If not, why not?

Should be able to get immediate answer upon stopping anyone at any time and asking, “What have you learned today?” If not, why not?

Why is your world of business any different than the (competitive) world of rugby, football, opera, theater, the military?

If “people/talent first” and hyper-intense continuous training are laughably obviously for them, why not you?

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

Gamblin’ Man Bet: expense rather than investment.

Bet: Bet: >> 5 of 10 CEOs see training as >> 5 of 10 CEOs see training as defense rather than offense.

>> 5 of 10 CEOs see training as “necessary evil” rather than “strategic opportunity.” Bet: >> 8 of 10 CEOs, in 45 min “tour d’horizon” of their business, would not mention training.

A 15-Point Human Capital Asset Development Manifesto

World Strategy Forum/ The New Rules: Reframing Capitalism Tom Peters/Seoul/0615.12

A 15-Point Human Capital Development Manifesto 1. “Corporate social responsibility” starts at home—i.e., inside the enterprise!

national productivity and wealth.

MAXIMIZING GDD/Gross Domestic Development of the workforce is the primary source of mid-term and beyond growth and profitability—and maximizes (Re profitability: If you want to serve the customer with uniform Excellence, then you must FIRST effectively and faithfully serve those who serve the customer—i.e. our employees, via maximizing tools and professional development.)

2. Regardless of the transient external situation, development of “human capital” is always the #1 priority.

This is true in general, in particular in difficult times which demand resilience—and uniquely true in this age in which IMAGINATIVE brainwork is de facto the only plausible survival strategy for higher wage nations. (Generic “brainwork,” traditional and dominant “white collar activities, is increasingly being performed by exponentially enhanced artificial intelligence.)

5. The training budget takes precedence over the capital budget.

PERIOD. It’s easier fun to get your picture taken next to a new machine. But how do you get a photo of a new and much improved attitude in a key distribution center? But the odds are 25:1 that the new attitude will add more to the bottom line than will the glorious state-of-the-art machine. 6. Human capital development should routinely sit atop any agenda or document associated with enterprise strategy.

undertake should formally address implications for and contributions to human capital asset development. Most any initiative you

The very best and the very brightest and the most energetic and enthusiastic and entrepreneurial and tech savvy of our university graduates must—must, not should—be lured into teaching!

Part 1: INTRODUCTION Part 2: PEOPLE FIRST, SECOND … Part 3: INNOVATION IMPERATIVE Part 4: VALUE-ADDED STRATEGIES Part 5: LEADERSHIP/EXTREME SOLUTIONS

/48

(No kidding)

READY.

FIRE!

AIM.

H. Ross Perot (vs “ Aim! Aim! Aim!” /EDS vs GM/1985)

“WE HAVE A ‘STRATEGIC PLAN.’ IT’S CALLED DOING THINGS.”

— Herb Kelleher

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

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

We

# 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”

Source: Wall Street Journal, cornerstone of effective approach to “rebalancing” company portfolios in the face of changing and uncertain global economic conditions (11.08.10)

Scrum Management 1. Organize the work in short cycles.

2. Management doesn’t interrupt the team during a work cycle.

3. The team reports to the client, not the manager.

4. The team decides how much time work will take.

5. The team decides how much work it can do in an iteration.

6. The team decides how to do the work in the iteration.

7. The team measures its own performance.

8. Define work goals before each cycle starts.

9. Define work goals through user stories.

10. Systematically remove impediments.

Source: Steve Denning/ Forbes/ 0429.11

Lesson47:

WTTMSW

WHOEVER TRIES THE MOST STUFF WINS

"How often I found where I should be going only by setting out for somewhere else.” — Buckminster Fuller

FAIL.

FORWARD. FAST.

“FAIL.

FORWARD. FAST.”

High Tech CEO, Pennsylvania

“ REWARD

excellent failures.

PUNISH

mediocre successes.”

—Phil Daniels, Sydney exec

Ideas Economy: CAN YOUR BUSINESS FAIL FAST ENOUGH TO SUCCEED?

Source: ad for Economist Conference/0328.13/Berkeley CA (caps are Economist )

WTTMS ASTMSUTF W

WHOEVER TRIES THE MOST STUFF AND SCREWS THE MOST STUFF UP THE FASTEST WINS WTTMS ASTMSUTF W

Pursuing Inefficiency

“The secret of fast progress is

inefficiency

, fast and furious and numerous failures.” —Kevin Kelly

We Are What We Eat

“You will become like the five people you associate with the most—this can be either a blessing or a curse.” —Billy Cox

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’

”

Diversity: “It is hardly possible to overrate the value of placing human beings in contact with persons dis similar to themselves, and with modes of thought and action unlike those with which they are familiar. Such communication has always been, and is peculiarly in the present age, one of the primary sources of progress.” —John Stuart Mill

WE ARE THE COMPANY WE KEEP!

MANAGE IT!

“Who’s the most interesting person you’ve met in the last 90 days? How do I get in touch with them?” —Fred Smith

“DON’T BENCHMARK, FUTURE MARK!”

Impetus: “The future is already here; it’s just not evenly distributed” —William Gibson

“DON’T BENCHMARK, ‘OTHER’ MARK !

”

CROWD POWER

!

“The Billion-man Research Team: Companies offering work to online communities are reaping the benefits of ‘crowdsourcing.’” —Headline, FT

Oops

“The Bottleneck …

“ The Bottleneck is at the … “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 …

Top of the Bottle”

— Gary Hamel/ Harvard Business Review

REVERSE Ageism Merited?

60 IS THE NEW 40!

70 IS THE NEW 50!

35 IS THE NEW 65 ?

Innovate or Die: Measure It!

Innovation Index: Scale? How many of your “Top Five Projects” score eight or higher (out of 10) on a “Weird”/ “Profound”/“WOW”/“Game-changer” WOW-ification Index: Move every project (definition) that scores six or less two notches up on the “WOW-ification Scale” within the next two weeks. If your principal current project scores six or less, bring it up one (or two!) notches by noon on Monday.* (*This tweet was written on a Sunday.)

Iron Innovation Equality Law: The quality and quantity and imaginativeness of innovation shall be the same in all functions —e.g., in HR and purchasing as much as in marketing or product development.

Part 1: INTRODUCTION Part 2: PEOPLE FIRST, SECOND … Part 3: INNOVATION IMPERATIVE Part 4: VALUE-ADDED STRATEGIES Part 5: LEADERSHIP/EXTREME SOLUTIONS

TGRs: 8/80

Customers describing their service experience as “superior”:

8

% Companies describing the service experience they provide as “superior”:

80%

—Source: Bain & Company survey of 362 companies, reported in John DiJulius, What's the Secret to Providing a World-class Customer Experience?

“May I clean your glasses, sir?”

It

BEGINS

(and

ENDS

) in the …

PARKING LOT

* *Disney

“It’s simple, really, Tom. Hire for and, above all, promote for

 

s, s.”

—Starbucks regional manager, on why so many smiles at Starbucks shops

W

and … >TG R [Things Gone WRONG -Things Gone RIGHT ]

“Experiences are as distinct from services as services are from goods.”

—Joe Pine & Jim Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

TGR

S

.

MANAGE ’EM.

MEASURE ’EM.

* *I use “manage-measure” a lot. Translation: These are not “soft” ideas; they are exceedingly important things that can be managed—AND measured.

C O*

*Chief e X perience Officer

LBTs

LITTLE =

Big carts = Source: Walmart

2X: “When Friedman

slightly curved

the right angle of an entrance corridor to one property, he was ‘amazed at the magnitude of change in pedestrians’ behavior’—the percentage who entered increased from one-third nearly two-thirds.” to —Natasha Dow Schull, Addiction By Design: Machine Gambling in Las Vegas

Machine Gambling “Pleasing” odor #1 vs. “pleasing” odor #2: +45% revenue Source: “Effects of Ambient Odors on Slot-Machine Useage in Las Vegas Casinos,” reported in Natasha Dow Schull, Addiction By Design: Machine Gambling in Las Vegas (66% revenue, 85% profit)

DESIGN

Design Rules!

APPLE

market cap > Exxon Mobil* *August 2011

“Design is

treated like a religion

at BMW.”*

—Fortune * APPLE market cap > Exxon Mobil (August 2011)

“With its carefully conceived mix of colors and textures, aromas and music, STARBUCKS is more indicative of our era than the iMac. It is to the what McDonald’s was to the Age of Convenience or Ford was to the Age of Mass Production—the touchstone success story, the exemplar of … the aesthetic imperative. … Age of Aesthetics ‘Every Starbucks store is carefully designed to enhance the quality of everything the customers see, touch, hear, smell or taste,’ writes CEO Howard Schultz.” —Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness

Hypothesis:

DESIGN is the principal difference between

love hate!*

and

*Not “like” and “dislike”

C O*

*Chief D esign Officer

“Only one company can be the cheapest. All others must use design.” —Rodney Fitch, Fitch & Co.

Source: Insights, definitions of design, the Design Council [UK]

“Businesspeople don’t need to ‘understand designers better.’ Businesspeople need to be designers.”

—Roger Martin/Dean/Rotman Management School/University of Toronto

“Design is everything. Everything is design.” “We are all designers.” Inspiration: The Power of Design: A Force for Transforming Everything, Richard Farson

Initiate a … “Design Review” Today

(Of Everything)

“Social Business”

C CMO/Marketing CXO/eXperience

N

O/eNgagement

“Customer engagement is moving from relatively isolated market transactions to deeply connected and sustained social relationships. This basic change in how we do business will make an impact on just about everything we do.” Social Business By Design: Transformative Social Media Strategies For the Connected Company —Dion Hinchcliffe & Peter Kim

Biz 2014: Get Aboard the “S-Train”

SM

/ Social Media.

SX

/ Social eXecutives.

SE

/ Social Employees.

SO

/ Social Organization.

SB

/ Social Business.

IBM Social Business Markers/2005-2012 *433,000 employees on IBM Connection *26,000 individual blogs *91,000 communities *62,000 wikis *50,000,000 IMs/day *200,000 employees on Facebook *295,000 employees/800,000 followers of the brand *35,000 on Twitter Source: IBM case, in Cheryl Burgess & Mark Burgess, The Social Employee

Seven Characteristics of the Social Employee 1. Engaged 2. Expects Integration of the Personal and Professional 3. Buys Into the Brand’s Story 4. Born Collaborator 5. Listens 6. Customer-Centric 7. Empowered Change Agent Source: Cheryl Burgess & Mark Burgess, The Social Employee

“Success” >> “Satisfaction”

“You are headed for commodity hell if you don’t have services.”

)

IB M I to B M

“Lou, with all the money I’ve spent with you guys on ‘the best this or that,’ in fact this AND that, why in the hell hasn’t my business been transformed?”

Planetary Rainmaker-in-Chief!

“[CEO Sam] Palmisano’s strategy is to expand tech’s borders by pushing users— and entire industries—toward radically different business models.

The payoff for IBM would be access to an ocean of revenue—Palmisano estimates it at $500 billion a year — that technology companies have never been able to touch.”

— Fortune

U

P

S

to

UP

S

“ Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Corporate America” —Headline/ BW “UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent.” —ecompany.com “It’s all about solutions with customers on creating and running better, stronger, cheaper supply chains.” . We work —Bob Stoffel, UPS senior exec

“ Rolls-Royce earns more now from tasks such as managing clients’ overall procurement strategies and maintaining aerospace engines it sells than it does from making them.” —Economist

UTC/Otis + UTC/Carrier:

discrete boxes* to “integrated building systems”

*elevators, air conditioners

MasterCard Advisors

Huge: “Customer Satisfaction with product/Service” to

“CUSTOMER [ENTERPRISE] SUCCESS”

PSF Ubiquity: The Professional Service Firm50: Fifty Ways to Transform Your “Department” into a Professional Service Firm Whose Trademarks are Passion and Innovation!

Small (Entrepreneurial) BUSINESS: Training Inc.

, a 14-person unit* in a 50-person HR department in a $200M business unit in a $3B corporation—aiming for Excellence & WOW!

* PSF / Professional Service Firm (See my … Professional Service Firm 50: Fifty Ways to Transform Your “Department” Into A Professional Service Firm Whose Trademarks Are Passion and Innovation.

)

Are you/your gang the …

“Principal Engine of Value Added”

Part 1: INTRODUCTION Part 2: PEOPLE FIRST, SECOND … Part 3: INNOVATION IMPERATIVE Part 4: VALUE-ADDED STRATEGIES Part 5: LEADERSHIP/EXTREME SOLUTIONS

Conrad Hilton …

CONRAD HILTON, at a gala celebrating his career, was called to the podium and asked, “What were the most important lessons you learned in your long and distinguished career?” His answer …

“ Remember to tuck the shower curtain inside the bathtub.”

“EXECUTION

IS

STRATEGY.”

—Fred Malek

“

EXECUTION THE JOB THE BUSINESS LEADER .”

—

IS OF

Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done

“Amateurs talk about strategy. Professionals talk about logistics.”

—General Omar Bradley

MBWA

M

anaging

B

y

W

andering

A

round

You = Your calendar/ Your calendar NEVER lies.

You = Your calendar

* *The calendar

NEVER

lies.

MBWA 4 MBWA 8 MBWA 12

“The

4

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

MBWA 8: Change the World With EIGHT Words What do you think?* How can I help?** *Dave Wheeler: “What are the four most important words in the boss’ lexicon?” **Boss as CHRO/Chief Hurdle Removal Officer **********************************

MBWA 12: Change the World With TWELVE Words What do you think?* How can I help?** What have you learned?*** *Dave Wheeler: “What are the four most important words in the boss’ lexicon?” **Boss as CHRO/Chief Hurdle Removal Officer ********************************** ***What [new thing] have you learned [in the last 24 hours]? ********************* *

Acknowledgement.

“The deepest principal in human nature is the

craving

* to be appreciated.” —William James * “Craving,” not “wish” or “desire” or “longing”/Dale Carnegie, How to Win Friends and Influence People (“The BIG Secret of Dealing With People”)

“Employees who don't feel significant rarely make significant contributions.”

—Mark Sanborn

ONE

at a Time

“If there is any

one

‘secret’ to effectiveness, it is concentration. Effective executives do first things first …

and they do one thing at a time.”

—Peter Drucker

1

Mouth, Ears

“The doctor interrupts after …*

*Source: Jerome Groopman, How Doctors Think

18 …

18 …

seconds!

[An obsession with] Listening is ... the ultimate mark of

Respect

.

Listening is ... the heart and soul of

Engagement

.

Listening is ... the heart and soul of

Kindness

.

Listening is ... the heart and soul of

Thoughtfulness

.

Listening is ... the basis for true

Collaboration .

Listening is ... the basis for true

Partnership

.

Listening is ... a

Team Sport

.

Listening is ... a

Developable Individual Skill

.* (*Though women are far better at it than men.) Listening is ... the basis for

Community

.

Listening is ... the bedrock of

Joint Ventures that work

.

Listening is ... the bedrock of

Joint Ventures that grow

.

Listening is ... the core of

effective Cross-functional Communication *

(*Which is in turn Attribute #1 of organization effectiveness.) [cont.]

*Listening is of the utmost … STRATEGIC importance!

*Listening is a proper … CORE VALUE *Listening is … ! TRAINABLE !

*Listening is a … PROFESSION !

Suggested addition to your statement of Core Values: “We are Effective Listeners—we treat Listening EXCELLENCE as the Centerpiece of our Commitment to Respect and Engagement and Community and Growth.”

Responsiveness/ Apology/ “I’m sorry!”

“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 Successful.

THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE

RESPONSE

TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM.* * PERCEPTION IS ALL THERE IS!

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.

XFX =

#1

NEVER WASTE A LUNCH!

% XF lunches*

*

Measure!

Monthly! Part of evaluation! [The PAs Club.]

XFX/Typical Social Accelerators 1. EVERYONE’s [more or less] JOB #1: Make friends in other functions! (Purposefully. Consistently. Measurably.) 2. “Do lunch” with people in other functions!! Frequently!! (Minimum 10% to 25% for everyone? Measured.) 3. Ask peers in other functions for references so you can become conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN ism.) 4. Religiously invite counterparts in other functions to your team meetings. Ask them to present “cool stuff” from “their world” to your group. (Useful. Mark of respect.) 5. PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO ACKNOWLEDGE— PRIVATELY AND PUBLICALLY. (Bosses: ONCE A DAY … make a short call or visit or send an email of “Thanks” for some sort of XFX gesture by your folks and some other function’s folks.) 6. Present counterparts in other functions awards for service to your group. Tiny awards at least weekly; and an “Annual All-Star Supporters [from other groups] Banquet” modeled after superstar salesperson banquets.

The ONE Secret !

If the regimental commander lost most of his 2nd lieutenants and 1st lieutenants and captains and majors, it would be a tragedy.

lost his sergeants it would be a catastrophe.

awareness?

If he

The Army and the Navy are fully aware that success on the battlefield is dependent to an extraordinary degree on its Sergeants and Chief Petty Officers. Does industry have the same

Is there ONE “secret” to productivity and employee satisfaction?

YES!

The Quality of your Full Cadre of … 1st-line Leaders.

“People leave managers not companies.”

—Dave Wheeler

Hiring.

“ 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

the most important aspect of business

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

Evaluation.

EVALUATING PEOPLE =

#1

DIFFERENTIATOR

Source: Jack Welch, now Jeff Immelt on GE’s top strategic skill ( !!!!

)

Promotion.

2/year =

legacy.

Promotion Decisions

“life and death decisions”

Source: Peter Drucker, The Practice of Management

Self Evaluation.

“Being aware of yourself and how you affect everyone around you is what distinguishes a superior leader.” —Edie Seashore

“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. be .

In fact, the higher up the ladder a leader climbs, the less accurate his self-assessment is likely to The problem is an acute lack of feedback [especially on people issues].” —Daniel Goleman (et al.), The New Leaders

"Everyone thinks of changing the world, but no one thinks of changing himself"

- Leo Tolstoy

Reductionist (!!) Leadership Training

Are you a “professional” when it comes to HIRING people?

Are you a “professional” when it comes to EVALUATING people?

14,000 20,000

14,000/ 30

e

Bay 20,000/Amazon /Craigslist

Kevin Roberts’ Credo

1 . Ready. Fire! Aim.

2. If it ain’t broke ... Break it!

3. Hire crazies.

4. Ask dumb questions.

5. Pursue failure.

6. Lead, follow ... or get out of the way!

7. Spread confusion.

8. Ditch your office.

9. Read odd stuff.

10.

AVOID MODERATION!

“We are crazy. We should do something when people say it is ‘crazy.’ If people say something is ‘good’, it means someone else is already doing it.”

—Hajime Mitarai, Canon

HOT HOT

Times Language

“Insanely great” —Steve Jobs “Radically thrilling” “Astonish me!” — Sergei Diaghilev —BMW “Build something great!” “Make it immortal!” —Hiroshi Yamauchi/CEO Nintendo, to a game designer —David Ogilvy, to an ad copywriter Raise your sights!

Blaze new trails!

Compete with the immortals!

—David Ogilvy, on Ogilvy & Mather’s corporate culture Wanted by Ogilvy & Mather International: Trumpeter Swans —David Ogilvy “ Every project starts with the same question: —Stuart Hornery, Lend Lease ‘How can we do what has never been done before?’” “Let us create such a building that future generations will take us for … lunatics.” —church hierarchs at Seville “We are crazy. We should do something when people say it is ‘crazy.’ When people say something is ‘good,’ it means someone else is already doing it.” —Hajime Mitarai, former CEO, Canon “You can’t behave in a calm, rational manner. You’ve got to be out on the … lunatic fringe.” —Jack Welch Kevin (“Lovemarks”) Roberts’ Credo 2.

3.

4.

5.

6.

7.

8.

9.

1.

10.

Ready. Fire! Aim.

If it ain’t broke ... Break it!

Hire crazies.

Ask dumb questions.

Pursue failure.

Lead, follow ... or get out of the way!

Spread confusion.

Ditch your office.

Read odd stuff.

Avoid moderation!

Note: TWO Americans; EIGHT non-Americans (Scotsman, 2 Japanese, Aussie, Russian, German, Spaniard, Kiwi)

WINNERS’ Rules

!

Michael Raynor and Mumtaz Ahmed’: THE THREE RULES: How Exceptional Companies Think* : 1. Better before cheaper.

2. Revenue before cost.

3. There are no other rules.

(*From a database of over 25,000 companies from hundreds of industries covering 45 years, they uncovered 344 companies that qualified as statistically “exceptional.”) Jeff Colvin, Fortune : “The Economy Is Scary … But Smart Companies Can Dominate”: They manage for value—not for EPS.

They keep developing human capital.

They get radically customer-centric.