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11
LONG Tom Peters’
Excellence.
Always.
Innovate.
Or Die.
MasterCard Sales Leadership Meeting Vienna/18 October 2010 (Slides at tompeters.com) 21
The Ascent of Money: A Financial History of the World
—Niall Ferguson
Against the Gods: The Remarkable Story of Risk
—Peter Bernstein NGO/Bridges = Market-making 1
The Ascent of Money: A Financial History
of the World —Niall Ferguson
Against the Gods: The Remarkable Story
of Risk —Peter Bernstein NGO/Bridges = Market-making MasterCard MoneySend MasterCard OneSmart Social Card MasterCard Pay Pass MasterCard Mobile Payments Gateway Etc.
Etc.
1
Part ONE: Women Rule!
51
94%
of loans to …
women
* * M
icrolending; “Banker to the poor”; Grameen Bank; Muhammad Yunus; 2006 Nobel Peace Prize winner 1
“
CEMEX
realized that women are the key drivers of savings in families.
[Mexican] … They are entrepreneurial in nature, and they actively participate in the tanda system [neighborhood groups who pool money and save any that’s left over].
Regardless of whether they are homemakers or outside the-home workers, they are responsible for any savings in the family. Patrimonio Hoy [Private Property Today, a CEMEX program to aid the poor in building homes] paycheck at the end of the day.” discovered that 70% of the women who saved were saving money in the tanda system to construct homes for their families. The men in the society consider their job done if they bring in their
—C.K. Prahalad, from The Fortune at the Bottom of the Pyramid , on Lorenzo Zambrano and CEMEX, the Mexican company that’s the world’s #3 cement maker.
71
“Forget
China
,
India
and the
Internet
Driven by : Economic Growth Is
Women
.”
Source: Headline, Economist
W
> 2X
(C + I)*
* “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
91
“Women are
the
majority market”
—Fara Warner/ The Power of the Purse 101
“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
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 121
Lowe’s!
131
“One thing is certain: women’s rise in 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 labour or to be consumers with rising budgets and more autonomy to spend. They are increasingly becoming directors, managers and entrepreneurs. Some studies have shown a correlation between the presence of women in managerial positions and a company’s financial results.
“This is just the beginning. The phenomenon will only grow as girls prove to be more successful than boys in the school system and enroll in higher numbers in universities.
For a number of observers, we have already entered the age of ‘WOMENOMICS,’ the economy as thought out and practiced by women.
creative and efficient than one comprised of only men.” Those Chinese who desire that their only child be male may soon realise that a daughter could be a better investment. Bosses know full well that a team of both men and women is more
Source: “Women Are Drivers of Global Growth,” Aude Zieseniss de Thuin, founder and president of the Women’s Forum for the Economy and Society (FT) 141
“Power Women 100”/Forbes 25.10.10
26 CEOs Public Companies: Vs. Men/Market: +28% (*Post-appointment) * Vs. Industry: +15% 1
*
Women decide
*
Women save
*
Women spend
*
Women rule
1
*Women decide *Women save *Women spend *Women rule * In the developed world * In the developing world * The trend is accelerating
1
Part Two: Innovate or Die
181
“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 191
“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
1
211
try it. Try it. Try it. Try it. Try it.
Try it. Try it. Try it. Screw it up.
Try it. Try it. Try it. Try it. Try it. Try it. Try it. Screw it up.
it. Try it. Try it. try it. Try it.
Screw it up.
it. Try it. Try it.
“Experiment fearlessly”
Source: BusinessWeek , Type A Organization Strategies/ “How to Hit a Moving Target”—
Tactic #1
1
“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 241
Culture of Prototyping
“Effective prototyping may be
the most valuable core competence
an innovative organization can hope to have.”
—Michael Schrage 1
“In business, you reward people for taking risks.
When it doesn’t work out you promote them-because they were willing to try new things. If people tell me they skied all day and never fell down, I tell them to try a different mountain.”
—Michael Bloomberg ( BW /0625.07) 261
“Fail.
Forward. Fast.”
High Tech CEO, Pennsylvania 271
He who has the quickest “O.O.D.A. Loops” * wins!
* O bserve. O rient. D ecide. A ct. /Col. John Boyd 1
Success 101:
“Whoever tries the most stuff and screws the most stuff up and most rapidly launches the next try wins. Failures are not to be ‘tolerated,’ they are to be celebrated.”
291
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 the Knitting 7. Simple Form, Lean Staff 8. Simultaneous Loose-Tight Properties 301
#2 311
Little = 321
Big CARTS/Big BAGS =
1.5X/$B
Source: Walmart/Frito Lay 331
Socks = 10,000
1
#3 351
We are the company we keep
1
The “We are what we eat” axiom: At its core, every (!!!) relationship-partnership decision (employee, vendor, customer, etc) is a strategic decision about:
“Innovate, ‘Yes’ or
‘No’
”
1
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 381
CUSTOMERS: “
Future-defining customers may account for only 2% to 3% of your total,
but they represent a crucial window on the future.”
—Adrian Slywotzky, Mercer Consultants 1
“To grow, companies need to break out of a vicious cycle of competitive benchmarking and imitation.”
—W. Chan Kim & Renée Mauborgne, “Think for Yourself — Stop Copying a Rival,” Financial Times 1
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.*
1
“Who’s the most interesting person you’ve met in the last 90 days? How do I get in touch with them?”
—Fred Smith 421
Vanity Fair: “What is your most marked characteristic?”
Mike Bloomberg:
“Curiosity.”
431
Can you pass the …
“Squint test”?
441
“
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 451
“d”iversity
461
1
481
XFX = #1
491
Never waste a lunch!
1
Lunch > SAP/ Oracle
1
“XFX 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? ism.) 5.
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 4. Invite counterparts in other functions to your team meetings. Religiously. Ask them to present “cool stuff” from “their world” to your group. (B-I-G deal; useful and respectful.) 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 [from other groups] Banquet” modeled after superstar salesperson banquets.
“Annual All-Star Supporters 7. Discuss—A SEPARATE AGENDA ITEM—good and problematic acts of cross-functional co-operation at every Team Meeting.
521
“XFX Social Accelerators.” 8. When someone in another function asks for assistance, respond with … cubicle next to yours—or even more than you would for a key external customer. (Remember, XFX is the key to Customer Retention which is in turn the key to “all good things.”) 9.
more … alacrity than you would if it were the person in the Do not bad mouth ... “the damned accountants,” “the bloody HR guy.” Ever.
(Bosses: Severe penalties for this—including public tongue lashings.) 10. Get physical!! “Co-location” may well be the most powerful “culture change lever.” Physical X-functional proximity is almost a … guarantee … of remarkably improved co-operation—to aid this one needs flexible workspaces that can be mobilized for a team in a flash.
11. Formal evaluations. evaluations.) achievements.
Everyone, starting with the receptionist, should have a significant XF rating component in their evaluation.
served a full tour in a job whose only goals were cross-functional 13. XFX is … PERSONAL … as well as about organizational You, or as an entrepreneur. (The “XFX Performance” should be among the Top 3 items in all managers’ 12. Demand XF experience for, especially, senior jobs. For example, the U.S. military requires all would-be generals and admirals to have effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to personal success—in terms of organizational career, freelancer/Brand 531
THE WHOLE POINT HERE IS THAT “XFX” IS ALMOST CERTAINLY THE #1 OPPORTUNITY FOR STRATEGIC DIFFERENTIATION. WHILE MANY WOULD LIKELY AGREE, IN OUR MOMENT-TO-MOMENT AFFAIRS, XFX PER SE IS NOT SO OFTEN VISIBLY & PERPETUALLY AT THE TOP OF EVERY AGENDA. I ARGUE HERE FOR NO LESS THAN …
VISIBLE.
CONSTANT.
OBSESSION.
541
C(I) > C(E)
1
Loser:
“He’s such a suck-up!”
Winner:
“He’s such a suck-down.”
1
???????
“Success doesn’t depend on the number of people you know; it depends on the number of people you know in high places!” or “Success doesn’t depend on the number of people you know; it depends on the number of people you know in low places!” 1
581
“The doctor interrupts after …*
*Source: Jerome Groopman, How Doctors Think 1
seconds
1
Enterprise value #1: "We listen intently to and fully engage all with whom we associate."
1
[An obsession with] Listening is ... the ultimate mark Listening is ... a Team Sport.
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 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 last.
Listening is ... the core of effective Cross-functional
Communication*
(*Which is in turn Attribute #1 of organizational effectiveness.) [cont.] 621
Listening is ... the engine of superior EXECUTION. Listening is ... the key to making the Sale. Listening is ... the key to Keeping the Customer’s Business.
Listening is ... the engine of Network development. Listening is ... the engine of Network maintenance.
Listening is ... the engine of Network expansion.
Listening is ... Social Networking’s “secret weapon.” Listening is ... Learning. Listening is ... the sine qua non of Renewal.
Listening is ... the sine qua non of Creativity.
Listening is ... the sine qua non of Innovation.
Listening is ... the core of taking Diverse opinions aboard.
Listening is ... Strategy.
Listening is ... Source #1 of “Value-added.” Listening is ... Differentiator #1. Listening is ... Profitable.* (*The “R.O.I.” from listening is higher than that from any other single activity.) Listening is … the bedrock which underpins a Commitment to
EXCELLENCE
631
*Listening is of the utmost …
strategic
importance!
*Listening is a proper …
core value
! *Listening is …
trainable
!
*Listening is a …
profession
!
1
“The West spent …
$2.3 trillion
on foreign aid over the last five decades and still has not managed to get twelve-cent medicines to children to prevent half of all malaria deaths. The West spent $2.3 trillion and still not managed to get three dollars to each new mother to prevent five million child deaths. … But I and many other like-minded people keep trying, not to abandon aid to the poor, but to make sure it reaches them.” —William Easterly, The White Man’s Burden: Why the West’s Effort to
Aid the Rest Have Done So Much Ill and So Little Good
1
“You can make more friends in two months by becoming interested in other people than you can in two years by trying to get other people interested in you.”
—Dale Carnegie 1
671
94%
of loans to …
women
* * M
icrolending; “Banker to the poor”; Grameen Bank; Muhammad Yunus; 2006 Nobel Peace Prize winner 1
691
Up, Up, Up, Up
the Value-added Ladder.
701
$50B+*
*IBM Global Services/ “Systems integrator of choice” 711
Planetary Rainmaker-in-Chief!
“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 1
“We want to be the air traffic controllers of electrons.”
—Bob Nardelli, GE Power Systems (7 years, 5% to 55% ) 1
“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.”
(E.g., UPS Logistics —ecompany.com manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers) 741
“THE GIANT STALKING BIG OIL: How
Schlumberger
Is Rewriting the Rules of the Energy Game.”:
“IPM [Integrated Project Management] strays from [Schlumberger’s] traditional role as a service provider and moves deeper into areas once dominated by the majors.” Source: BusinessWeek cover story, January 2008 1
I. LAN Installation Co. (3%) II. Geek Squad. (30%.) III. Acquired by BestBuy.
IV.
Flagship of BestBuy Wholesale “Solutions” Strategy Makeover.
761
Era #1/Obvious Value : “Our ‘it’ works, is delivered on time” (“Close”) Era #2/Augmented Value : “How our ‘it’ can add value —a ‘useful it’ ” (“Solve”) Era #3/Complex Value Networks : “How our ‘system’ can change you and deliver
‘business advantage
’ ” (“Culture Strategic change”) Source: Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale 1
“The business of selling is not just about matching viable solutions to the customers that require them.
It’s equally about managing the change process the customer will need to go through to implement the solution and achieve the value promised by the solution.
One of the key differentiators of our position in the market is our attention to managing change and making change stick in our customers’ organization.” * (*E.g.: CRM failure rate/Gartner: 70%)
—Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale 1
791
Innovation Index: of your Top 5 How many Strategic Initiatives/Key Projects score 8 or higher [out of 10] on a “Weird” / “Profound” / “Wow” / “Game-changer” Scale?
801
14,000 20,000 30
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!
831
Part Three: The Small Courtesies
841
“Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.”
—Henry Clay 1
Hard Is Soft Soft Is Hard
1
Hard Is Soft (Plans, #
s
) Soft Is Hard (people, customers, values, relationships)
1
881
891
MBWA 901
911
Give good tea!
1
Edward VII B. Franklin
Or Not:
Clinton Cornwallis Yorktown
931
“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.” 941
R.O.I.R.
R
eturn
O
n
I
nvestment In
R
elationships
The Real World’s “Little” Rule Book Ben/tea Norm/tea DDE/make friends WFBuckley/make friends-help friends Gust/Suck down Charlie/poker pal-BOF Edward VII/dance-flatter-mingle-learn the language Vladimir Putin/birthday party of outgroup guy’s wife CIO/finance network ERP installer/consult “one line of code” GE Energy/make friends risk assessment GWB/check the invitation list GHWB/T-notes Hank/60 calls MarkM/5K-5M Delaware/show up Oppy/snub Lewis Strauss NM/smile -$4.3T/tin ear tp.com/Big 4-What do you think?
Women/genes Banker/after church Total Bloody Mess/Can they pay back the loan?
971
981
Conveyance: Kingfisher Air Location: Approach to New Delhi 991
“May I clean your glasses, sir?”
1001
and … >TG R [Things Gone WRONG -Things Gone RIGHT ] 1 1021 1 The four most important words in any organization are … Source: courtesy Dave Wheeler, posted at tompeters.com 1 1 [ ] [Practice makes better!] [This is a STRATEGIC skill!] 1 What do managers do for a living? Help! Right? How many of us could call ourselves “professional helpers,” studied—like a professional mastering her craft—helping”? (Not many, I’d judge.) meaning that we have 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 NFL 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!) 1071 1081 —William James 1 – Japanese Proverb 1101 /80* *Post-interview “Thank you” notes 1111 *appreciation is of the utmost … importance! *appreciation is a proper … ! *appreciation is … ! *appreciation is a … ! 1 1131 1141 “In the election in 1994, his was the campaign. That smiling iconic campaign poster—on billboards, on highways, on street lamps, at tea shops and fruit stalls. It told black voters that he would be their champion and white voters that he would be their protector. It was the smile of the proverb ‘tout comprendre, c’est tout pardoner’—to understand is to forgive all. It was political Prozac for a nervous electorate.” From “See the Good in Others,” Mandela’s Way: Fifteen Lessons on Life, Love, and Courage, by Richard Stengel 1151 Half-full Cups: —Lou Cannon 1 “ —Ben Zander 1171 —Samuel Taylor Coleridge 1181 be Gandhi 1 “ —David D’Alessandro, Career Warfare 1201 1211 “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 1221 1231 *PERCEPTION IS ALL THERE IS! 1241 Relationships (of all varieties) : THERE ONCE WAS A TIME WHEN A WOULD HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE. 1251 [big, quick response] 1261 —Bill Walsh (from The Score Takes Care of Itself ) 1271 #8 1281 Press Ganey Assoc: 139,380 patients from 225 former hospitals: none of THE top 15 factors determining P atient S atisfaction referred to the patient’s health outcome P.S. directly related to P.S. Staff Interaction directly correlated with Satisfaction Employee Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel 1 “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. 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 1 1 Kindness = Repeat business = Profit. 1321 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. Understand 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. 1331 1341 *Retail Superstars: Inside the 25 Best Independent Stores in America 1 —Herb Kelleher, upon being asked his “secret to success” Source: Joe Nocera, NYT took out a full-page ad in , “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots union USA Today thanking HK for all he had done; across the way in Dallas American Airlines’ pilots were picketing the Annual Meeting) 1361 —Ari Weinzweig, Zingerman's 1371 1381 “We went through the hotel [soon after acquiring it] 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. Our focus was totally on the staff. They were the ones we wanted to make happy. We wanted them to wake up every morning excited about a new day at work.” “The path to a hostmanship 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. 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?’” Source: Hostmanship: The Art of Making People Feel Welcome , Jan Gunnarsson and Olle Blohm 1391 … no less than 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 . 1 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 1411 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 1421 1431 The “Baker’s Dozen Courtesies” 1. The Small Courtesies! (Henry Clay.) 2. Stay in touch. 5. “Suck down.” 6. C(I)>C(E). (MBWA.) 3. Invest in relationships. 7. “Let’s do lunch.” (Edward VII. Ike.) 4. TGRs/Things Gone Right. (Kingfisher Air.) (XFX/Cross-functional Excellence = #1T) 8. Listen. (Respect. Learn. Student. PROFESSIONAL. SUSTAINABLE COMPETITIVE ADVANTAGE #1T ) 9. “What do you think?” (Schein/Giving help.) 10. Thank (Appreciate. Acknowledge.) 11. Smile! (Mandela.) 12. Apologize (Unequivocal. Rectify. Over-react. ) 13. K = R = P (Kindness is free. This is … STRATEGIC .) 14. “Consideration renovation.” (Customer SECOND.) 1 1451 EXCELLENCE/Five Or Less Words To The Wise 4 most important words: “What do you think?” (Dave Wheeler @ tompeters.com: “Most important 4 words in an organization.”) 4 most important words: “How can I help?” (Boss as CHRO/ Chief Hurdle Removal Officer) 2 most important words: “Thank you!” (Appreciation/ 2 most important words: Recognition) “All yours.” (“Hands-off” delegation/ Respect/Trust) 3 most important words: “I’m going out.” (MBWA/Managing By Wandering Around/In touch!) 2 most important words: “I’m sorry.” (Power of unconditional apology = Stunning! Marshall Goldsmith: #1 exec issue) 5 most important words: “Did you tell the customer?” (Over communicate) 2 most important words: “She says …” (“She” is the customer!) 1461 EXCELLENCE/Five Or Less Words To The Wise 2 most important words: “Yes ma’am.” (Women are more often than not the best managers.) 2 most important words: “Try it!” (My only “for sure” in 44 years: Herb Kelleher: “We have a strategic plan, it’s called doing things.”/Bill Parcells: “Blame no one. Expect nothing. Do something.”) 3 most important words: “Try it again!” (My only “for sure” in 44 years: MOST TRIES WINS.) 2 most important words: “Good try!” (CELEBRATE “good failures.” Richard Farson/book: Whoever Makes the Most Mistakes Wins. Samuel Beckett: “Fail. Fail again. Fail better.”) 3 most important words: “At your service.” to serve. Period. Leaders live to serve. Period.) (Organizations exist 4 most important words: “How are we doing?” (To customers, regularly.) 4 most important words: “How was Mary’s recital?” (Know your employees’ kids.) 2 most important words: “Let’s party!” (Celebrate “small wins” at the drop of a hat.) 1471 EXCELLENCE/Five Or Less Words To The Wise 1 most important word: “No.” 1 most important word: “Yes.” (“To don’ts” > “To dos”) (Hey, give it a shot/Anon. quote: “The best answer is always, ‘What the hell.’”/Wayne Gretzky: “You miss 100% of the shots you don’t take.”) 2 most important words: “Lunch today?” (“Social stuff” = Secret to problem/opportunity #1:/XFX/ cross-functional Excellence.) 4 most important words: “Thank Dick in accounting.” 2 most important words: functions.) (Readily acknowledge help from other “After you.” (Courtesy rules.) 3 most important words: “Thanks for coming.” acknowledges employee coming to her/his office.) 2 most important words: “Great smile!” (Civility. E.g., boss (Note & acknowledge 1 most important word: good attitude.) “Wow!” (The gold standard … for everything.) 1 most important word: “EXCELLENT!” (The … ONLY … acceptable standard/aspiration.) 1481 1491 Tom Peters/10.17.10 1501 The Memories That Matter The people you developed who went on to stellar accomplishments inside or outside the company. The (no more than) two or three people you developed who went on to create stellar institutions of their own. The long shots (people with “a certain something”) you bet on who surprised themselves— and your peers. The people of all stripes who 2/5/10/20 years later say “You made a difference in my life,” “Your belief in me changed everything.” The sort of/character of people you hired in general. ( And the bad apples you chucked out despite some stellar traits.) A handful of projects (a half dozen at most) you doggedly pursued that still make you smile and which fundamentally changed the way things are done inside or outside the company/industry. The supercharged camaraderie of a handful of Great Teams aiming to “change the world.” 1511 “The ONE Question”: “In the last year [3 years, current job], name the … … 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.” 1 The Memories That Matter Belly laughs at some of the stupid-insane things you and your mates tried. Less than a closet full of “I should have …” A frighteningly consistent record of having invariably said, “Go for it!” Not intervening in the face of considerable loss—recognizing that to develop top talent means tolerating failures and allowing the person who screwed up to work their own way through and out of their self-created mess. Dealing with one or more crises with particular/memorable aplomb. Demanding … Turning around one or two or so truly dreadful situations—and watching almost everyone involved rise to the occasion (often to their own surprise) and acquire a renewed sense of purpose in the process. CIVILITY Leaving something behind of demonstrable-lasting worth. (On short as well as long assignments.) … regardless of circumstances. 1531 The Memories That Matter Having almost always (99% of the time) put “Quality” and “Excellence” ahead of “Quantity.” (At times an unpopular approach.) A few “critical” instances where you stopped short and could have “done more”—but to have done so would have compromised your and your team’s character and integrity. A sense of time well and honorably spent. The expression of “simple” human kindness and consideration—no matter how harried you may be/may have been. Understood that your demeanor/expression of character always sets the tone—especially in difficult situations. Never (rarely) let your external expression of enthusiasm/ determination flag—the rougher the times, the more your expressed energy and bedrock optimism and sense of humor showed. The respect of your peers. A stoic unwillingness to badmouth others—even in private. 1541 The Memories That Matter An invariant creed: When something goes amiss, “The buck stops with me ”; when something goes right, it was their doing, not yours. A Mandela-like “naïve” belief that others will rise to the occasion if given the opportunity. A reputation for eschewing the “trappings of power.” (Strong self management of tendencies toward arrogance or dismissiveness.) Intense, even “driven” … but not to the point of being careless of others in the process of forging ahead. Willing time and again to be surprised by ways of doing things that are inconsistent with your “certain hypotheses.” Humility in the face of others, at every level, who know more than you about “the way things really are.” Having bitten your tongue on a thousand occasions—and listened, really really listened. (And invariably been constantly delighted when, as a result, you learned something new and connection with the speaker.) invariably increased your 1551 The Memories That Matter Unalloyed pleasure in being informed of the fallaciousness of your beliefs by someone 15 years your junior and several rungs below you on the hierarchical ladder. Selflessness. (A sterling reputation as “a guy always willing to help out with alacrity despite personal cost.”) As thoughtful and respectful, or more so, toward thine “enemies” as toward friends and supporters. Always and relentlessly put at the top of your list/any list being first and foremost “of service” to your internal and external constituents. (Employees/Peers/Customers/Vendors/Community.) Treated the term “servant leadership” as holy writ. (And “preached” “servant leadership” to others—new “non-managerial” hire or old pro, age 18 or 48.) 1561 The Memories That Matter Created the sort of workplaces you’d like your kids to inhabit. (Explicitly conscious of this “Would I want my kids to work here?” litmus test.) A “certifiable” “nut” about quality and safety and integrity. (More or less regardless of any costs.) A notable few circumstances where you resigned rather than compromise your bedrock beliefs. Perfectionism just short of the paralyzing variety. A self- and relentlessly enforced group standard of “EXCELLENCE-in-all-we-do”/“EXCELLENCE in our behavior toward one another.” 1571“The four most important words in any organization are …
“What do you think?”
“WDYT” = Certification of me as a person of Importance whose opinion is valued.
Tomorrow: How many times will you “ask the WDYT question”?
Count!
“The deepest human need is the … need to be appreciated .”
“One kind word can warm three winter months.”
strategic
core value
trainable
profession
smile
“[Ronald Reagan] radiated an almost transcendent happiness.”
I am a dispenser of enthusiasm.”
“Nothing is so contagious as enthusiasm.”
“You must world.”
the change you wish to see in the
It’s always showtime.”
THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM.
*
THREE-MINUTE PHONE CALL
Comeback
>> Perfection
“Keep a short enemies list. One enemy can do more damage than the good done by a hundred friends.”
Kindness is free.
“Kindness is free.”
K = R = P
Zabar’s Parking Garage*
“You have to treat your employees like customers.”
"If you want staff to give great service, give great service to staff."
Cathedrals
The Small Courtesies.
Five Or Less Words To The Wise
Part Four: The Memories That Matter.
The Memories That Matter .
three people