Transcript LONG Tom Peters’ Excellence. Always. Glasgow/01 September 2009 To appreciate this presentation [and ensure that it is not a mess], you need Microsoft fonts: NOTE: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana”

LONG
Tom Peters’
Excellence.
Always.
Glasgow/01 September 2009
To appreciate
this presentation [and ensure
that it is not a mess], you need
Microsoft fonts:
NOTE:
“Showcard Gothic,”
“Ravie,” “Chiller”
and “Verdana”
Tom Peters’
Excellence.
now.
More than ever.
Glasgow/01 September 2009
Slides at …
tompeters.com
“The doctor
interrupts
after …*
*Source: Jerome Groupman, How Doctors Think
Listen = “Profession”
= Study = practice =
evaluation =
Enterprise value
Listen = Profession = Study = practice = evaluation =
Enterprise value:
"We listen
intently to and
fully engage
all with whom
we work."
The four most important words in any organization
are …
“What do
you
think?”
Source: courtesy Dave Wheeler, posted at tompeters.com
Tomorrow: How
many times will you
“ask the question”?
[Count!]
[Practice
makes better!] [This is a
STRATEGIC skill!]
“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
“The deepest
human need is
the need to be
appreciated.”
—William James
Enterprise value:
Appreciation!
“People want to be part of
something larger than
themselves. They want to be
part of something they’re
really proud of, that they’ll
fight for, sacrifice for ,
trust.”
—Howard Schultz, Starbucks (IBD/09.05)
Conrad Hilton, at a gala
celebrating his career,
was asked, “What was the
most important lesson
you’ve learned in you long
and distinguished career?”
His immediate answer …
“remember
to tuck the
shower curtain
inside the
bathtub”
“Execution
is
strategy.”
—Fred Malek
John Sawhill/Major Strategic
“What areas should
the Conservancy focus on
and … more
Initiative:
important … what
activities should we
stop doing?”
Source: Bill Birchard, Nature’s Keepers: The Remarkable Story of How The Nature
Conservancy Became the Largest Environmental Organization in the World
Listen!
Engage!
Respect!
APPRECIATE!
Inspire!
Sweat the details!
Execute!
Focus!
“To me business isn’t about
wearing suits or pleasing
stockholders. It’s about
being true to yourself,
your ideas and focusing on
the essentials.” —Richard Branson
Listen!
Engage!
Respect!
APPRECIATE!
Inspire!
Sweat the details!
Execute!
Focus!
EXCELLENCE!
Bonus:
New Delhi
“The ONE Question”: “In the last year [3 years, current
three
people
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
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 ten years. What are the ‘three big
things’ you’ve learned about helping people grow along
the way.”
1977
Palo Alto
MBWA
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))
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.
… 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.
Good News 2009:
Leadership*
is a sacred
trust.
*President, classroom teacher, CEO, shop foreman
“Leaders
‘SERVE’
people.
Period.”
—inspired by Robert Greenleaf
“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)
“We are a
‘Life Success’
Company.”
Dave Liniger, founder, RE/MAX
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
“Managing winds up being
the management of the
allocation of resources
against tasks. Leadership
My
definition of a leader
is someone who
helps people
succeed.”
focuses on people.
—Carol Bartz, Yahoo!
“Business has to give
people enriching,
rewarding lives,
or it's simply not
worth doing.”
—Richard Branson
“Business has to give people enriching,
or it's
simply not
worth
doing.”
rewarding lives …
—Richard Branson
“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)
“How to flush
$500,000 down
the toilet in one
easy lesson!!”
TP:
The “15% Drill”:
< CAPEX
> People!
Source: Container Store/increase average sale per shopper
#1/Wegmans
Brand =
Talent.
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
#1.
Strategic.
Priority.
Period.
“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 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.
Little =
Don’t like it?
Don’t pay.
Source: Granite Rock Co.
Big carts =
Source: Wal*Mart
Bag sizes = New markets:
Source: PepsiCo
Socks =
10,000
see green =
recover
20% faster
90K in U.S.A. ICUs on any
given day; 178 steps/day
in ICU.
50%
stays result
in “serious complication”
Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07)
**Peter Pronovost, Johns Hopkins
**Checklist, line infections
**Nurses/permission to stop procedure
if doc, other not following checklist
**In 1 year, 10-day line-infection rate:
11% to …
0%
Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07)
**Docs, nurses encouraged to
make checklists on whatever
process-procedure they choose
**Within weeks, average stay in
ICU down
50%
Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07)
6.5 feet Away =
-63% “Seconds”
“Everything matters”
-80%
Source: Nudge, Richard Thaler and Cass
Sunstein, etching of fly in the urinal
reduces “spillage” by 80%, Schiphol Airport
Little =
(1) Amenable to rapid
experimentation/
failure “free” (PR, $$)
(2) Quick to implement/
Quick to Roll out
(3) Inexpensive to
implement/Roll out
(4) Huge multiplier
(5) An “Attitude”
(6) Don’t need to be a “Big Boss”
(1) Half-day/25 ideas
(2) One week/5 experiments
(3) One month/Select best 2
(4) 60-90 days/Roll out
“Design is everything.
Everything is design.”
“We are all designers.”
Inspiration: The Power of Design: A Force for
Transforming Everything, Richard Farson
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
“There is a misconception that supportive interactions require
more staff or more time and are therefore more costly. Although
labor costs are a substantial part of any hospital budget, the
interactions themselves add nothing to the budget.
Kindness is
free.
Listening to patients or answering their
questions costs nothing. It can be argued that negative
interactions—alienating patients, being non-responsive to their
needs or limiting their sense of control—can be very costly. …
Angry, frustrated or frightened patients may be combative,
withdrawn and less cooperative—requiring far more time
than it would have taken to interact with them initially in a
positive way.” —Putting Patients First, Susan Frampton,
Laura Gilpin, Patrick Charmel
“Kindness
is free.”
“We are
thoughtful
in all we do.”
Core Value:
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.
“Courtesies of a small and
trivial character are the
ones which strike
deepest in the grateful
and appreciating heart.”
—Henry Clay
“Perception
is all
there is”
<TGW
and …
>TGR
[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
2-cent
candy
-15/+15/
2,000,000
BEGINS
(and ENDS)
It
in the …
parking
lot*
*Disney
Comeback
[big, quick response]
>>
Perfection
Acquire vs maintain*:
*Recession goal: Higher “market share” current customers
“Forget China,
India and the
Internet: Economic
Growth Is Driven
by
Women.”
Source: Headline, Economist
“Women are
the majority
market”
—Fara Warner/The Power of the Purse
most significant
variable in every
“The
sales situation is the
gender
of the buyer, and
more importantly, how the
salesperson communicates
to the buyer’s gender.”
—Jeffery Tobias Halter, Selling to Men, Selling to Women
The Perfect Answer
Jill and Jack buy
slacks in black…
“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
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
“Women don’t buy
They
join them.”
brands.
EVEolution
2.6 vs.
“Women speak and hear a language
of connection and intimacy, and men
speak and hear a language of status and
independence. Men communicate to
obtain information, establish their status,
and show independence. Women
communicate to create relationships,
encourage interaction, and exchange
feelings.”
—Judy Rosener, America’s Competitive Secret
Age 3
days, baby
girls 2X eye
contact.
“People powered”:
Source: Martha Barletta, Marketing to Women
“AS LEADERS,
WOMEN
RULE:
New Studies find that
female managers outshine their male
counterparts in almost every measure”
TITLE/ Special Report/ BusinessWeek
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?
94%
of loans to …
women*
*Microlending; “Banker to the poor”; Grameen Bank;
Muhammad Yunus; 2006 Nobel Peace Prize winner
“CEMEX realized that women
are the key drivers of savings
in [Mexican] families. … 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] 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 paycheck at the end of the
day.” —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
!!!!!!!!!!!!!!!!!
“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
we will be the
Center of your universe
for the next twenty-five
years. We have arrived!
of the world—and
Forty-four “Secrets”
and “clever Strategies”
For dealing with the
Recession of 2008-XXXX
I am constantly asked for
'secrets'
“strategies/
for
surviving the recession.” I try
to appear wise and informed—
and parade original,
sophisticated thoughts. But if
you want to know what’s
really going through my
head, see the list that follows.
44 “Secrets” and “Clever Strategies” For
Dealing with the Recession of 2008-XXXX
You come earlier.
You leave later.
You work harder.
You may well work for less; and, if so, you
adapt to the untoward circumstances with a
smile—even if it kills you inside.
You volunteer to do more.
You dig deep and always bring a good attitude
to work.
You fake it if your good attitude flags.
You literally practice your "game face" in the
mirror in the morning, and in the loo
mid-morning.
You give new meaning to the idea and intensive
practice of “visible management.”
44 “Secrets” and “Clever Strategies” For
Dealing with the Recession of 2008-XXXX
You take better than usual care of yourself and
encourage others to do the same—physical
well-being determines mental well-being and
response to stress.
You shrug off shit that flows downhill in your
direction—buy a shovel or a “pre-worn”
raincoat on eBay.
You try to forget about “the good old days”—
nostalgia is self-destructive.
You buck yourself up with the thought that
“this too shall pass”—but then remind yourself
that it might not pass any time soon, and so
you re-dedicate yourself to making the
absolute best of what you have now.
44 “Secrets” and “Clever Strategies” For
Dealing with the Recession of 2008-XXXX
You work the phones and then work the
phones some more—and stay in touch with
positively everyone.
You frequently invent breaks from routine,
including “weird” ones—“changeups” prevent
wallowing and bring a fresh perspective.
You eschew all forms of personal excess.
You simplify.
You sweat the details as never before.
You sweat the details as never before.
You sweat the details as never before.
You raise to the sky and maintain at all
costs the Standards of Excellence by which
you unfailingly evaluate your own performance.
You are maniacal when it comes to responding
to even the slightest screwup.
44 “Secrets” and “Clever Strategies” For
Dealing with the Recession of 2008-XXXX
You find ways to be around young people and
to keep young people around—they are less
likely to be members of the “sky is falling”
school.
You learn new tricks of your trade.
You remind yourself that this is not just
something to be “gotten through”—it is the
Final Exam of character.
You network like a demon.
You network inside the company—get to know
more of the folks who “do the real work.”
You network outside the company—get to
know more of the folks who “do the real
work” in vendor-customer outfits.
44 “Secrets” and “Clever Strategies” For
Dealing with the Recession of 2008-XXXX
You thank others by the truckload if good
things happen—and take the heat yourself if
bad things happen.
You behave kindly, but you don't sugarcoat or
hide the truth--humans are startlingly
resilient and rumors are the real killers.
You treat small successes as if they were
Superbowl victories—and celebrate and
commend accordingly.
You shrug off the losses (ignoring what's going
on in your tummy), and get back on the
horse and immediately try again.
You avoid negative people to the extent you
can—pollution kills.
You eventually read the gloom-sprayers the
riot act.
44 “Secrets” and “Clever Strategies” For
Dealing with the Recession of 2008-XXXX
You give new meaning to the word "thoughtful.“
You don’t put limits on the flowers budget—
“bright and colorful” works marvels.
You redouble, re-triple your efforts to "walk in
your customer's shoes." (Especially if the
shoes smell.)
You mind your manners—and accept others’
lack of manners in the face of their strains.
You are kind to all mankind.
You keep your shoes shined.
You leave the blame game at the office door.
You call out the congenital politicians in no
uncertain terms.
You become a paragon of personal accountability.
And then you pray.
Innovation:
Base Case
“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
“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
You don’t
get better
by being
bigger. You
Dick Kovacevich:
“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 Penman/
Jim’s Group
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
*Lived in same town all adult life
*First generation that’s wealthy/
no parental support
*“Don’t look like millionaires, don’t dress
like millionaires, don’t eat like
millionaires, don’t act like millionaires”
*“Many of the types of businesses [they]
are in could be classified as ‘dullnormal.’ [They] are welding contractors,
auctioneers, scrap-metal dealers, lessors of
portable toilets, dry cleaners, re-builders of
diesel engines, paving contractors …”
Source: The Millionaire Next Door, Thomas Stanley & William Danko
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
“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. 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
Culture of Prototyping
“Effective prototyping may
the most
valuable core
competence an
be
innovative organization can
hope to have.” —Michael Schrage
“Fail .
Forward.
Fast.”
High Tech CEO, Pennsylvania
“FAIL, FAIL
AGAIN. FAIL
BETTER.”
—Samuel Beckett
“The secret of fast
progress is
inefficiency, fast
and furious and
numerous failures.”
—Kevin Kelly
“It is not the
strongest of the
species that survives,
nor the most
intelligent, but the
one most responsive
to change.”
—Charles Darwin
“It is not enough
to ‘tolerate’
failure—you must
‘celebrate’
failure.”
—Richard Farson (Whoever
Makes the Most Mistakes Wins)
We are the
company
we keep
Measure “Strangeness”/Portfolio Quality
Staff
Consultants
Vendors
Out-sourcing Partners (#, Quality)
Innovation Alliance Partners
Customers
Competitors (who we “benchmark” against)
Strategic Initiatives
Product Portfolio (LineEx v. Leap)
IS/IT Projects
HQ Location
Lunch Mates
Language
Board
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’ ”
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
“[CEO A.G.] Lafley has shifted P&G’s focus
on inventing all its own products to
others’
inventions at
least half the
time.
developing
One successful
example, Mr. Clean Magic Eraser, based on a product
found in an Osaka market.” —Fortune
Axiom: Never use a vendor
who is not in the top
quartile (decile?) in
their industry on R&D
spending!*
*Inspired by Hummingbird
“The Billion-man
Research Team:
Companies offering
work to online
communities are
reaping the benefits of
‘crowdsourcing.’”
—Headline, FT, 0110.07
Rob McEwen/CEO/
Goldcorp Inc./
Red Lake
gold
Wikinomics: How Mass
Collaboration Changes Everything,
Don Tapscott & Anthony Williams
Source:
“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
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
“You will become
like the five people
you associate with
the most—this can
be either a blessing
or a curse.”
—Billy Cox
X =XFX*
*Excellence = Cross-functional Excellence
Never
waste a
lunch!
????
% XF
lunches*
*Measure!
(Way) Underutilized Lever
Space!
Space!
Space!
Space!
Geologists +
Geophysicists +
A little bit of love =
Oil
>100 feet =
100 miles
Lunch +
Proximity
> SAP/Oracle
The “XF-50”: 50 Ways to
Enhance Cross-Functional
Effectiveness and Deliver
Speed, “Service Excellence”
and “Value-added
Customer ‘Solutions’”*
*Entire “XF-50” List is at Appendix ONE
1. It’s our organization to make work—or not. It’s not “them,” the outside
world that’s the problem. The enemy is us. Period.
2. Friction-free! Dump 90% of “middle managers”—most are advertent or
inadvertent “power freaks.” We are all—every one of us—in the Friction
Removal Business, one moment at a time, now and forevermore.
3. No “stovepipes”! “Stove-piping,” “Silo-ing” is an Automatic Firing
Offense. Period. No appeals. (Within the limits of civility, somewhat
“public” firings are not out of the question—that is, make one and all
aware why the axe fell.)
4. Everything on the Web. This helps. A lot. (“Everything” = Big word.)
5. Open access. All available to all. Transparency, beyond a level that’s
“sensible,” is a de facto imperative in a Burn-the-Silos strategy.
6. Project managers rule!! Project managers running XF (cross-functional)
projects are the Elite of the organization, and seen as such and treated as
such. (The likes of construction companies have practiced this more or
less forever.)
7. “Value-added Proposition” = Application of integrated resources. (From
the entire supply-chain.) To deliver on our emergent business raison
d’etre, and compete with the likes of our Chinese and Indian brethren, we
must co-operate with anybody and everybody “24/7.” IBM, UPS and many,
many others are selling far more than a product or service that works—
the new “it” is pure and simple a product of XF co-operation; “the product
is the co-operation” is not much of a stretch.
CGRO*
*CGRO/Chief Grunge Removal Officer
(CDC/Chief of De-complexification)
(CAO/Chief Anti-systems Officer)
(CBSD/OChief BS Destruction Officer)
The Commerce Bank Model
“every computer at commerce bank has a
special red key on it that
says, ‘found something stupid that we are doing
that interferes with our ability to service the
customer? Tell us about it, and if we agree, we
will give you $50.’”
Source: Fans! Not customers. How Commerce Bank
Created a Super-growth Business in a No-growth
Industry, Vernon Hill & Bob Andelman
“No” = 2*
*Yes Bank
Up,
Up,
Up,
Up
the Value-added Ladder.
“M” = $0
IB :
$55B*
M
*Also HP-EDS
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
“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
“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
(E.g., UPS Logistics manages the logistics of 4.5M Ford vehicles,
from 21 mfg. sites to 6,000 NA dealers)
(1) LAN Installation Co. (3%)
“Geek Squad” (30%)
(2)
(3) Best Buy contracts
(4) Best Buy purchases
(5) Best Buy’s
“brand promise”
Source: Best Buy (Circuit City: fire senior, hire junior)
Huge: Customer
Satisfaction
versus …
Customer
Success
The Value-added Ladder
Services
Goods
Raw Materials
(USA, EU)
(China, Germany, Japan)
The Value-added Ladder/TRANSFORMATION
Customer Success/
Gamechanging
Solutions
Services
Goods
Raw Materials
“The business of selling is not just about matching viable
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
solutions to the customers that require them.
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
The Value-added Ladder/TRANSFORMATION
Customer Success
through Implemented
Gamechanging Solutions*
Services
Goods
Raw Materials
*Subject-matter Professionals and
Organization Effectiveness Experts (Degree: MBA,
Organizational Psychology)
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’ ” (“CultureStrategic change”)
Source: Jeff Thull, The Prime Solution: Close the Value Gap,
Increase Margins, and Win the Complex Sale
Model PSF*
*Professional Services Firm
EXCELLENCE.
VALUE-ADDED LADDER.
SPELLBINDING
EXPERIENCE.
“SOUL THROUGH DESIGN.”
Up,
Up,
Up,
Up
the Value-added Ladder.
“Design is
treated like
a religion at
BMW.”
—Fortune
All Equal Except …
“At Sony we assume that all
products of our competitors have
basically the same technology, price,
performance and features.
Design is the only
thing that differentiates one
product from another in the
marketplace.”
—Norio Ohga
“We don’t have a good language to talk
about this kind of thing. In most people’s
vocabularies, design means veneer. …
But to me, nothing could be further from
the meaning of design.
Design is
fundamental
soul of a man-made
the
creation.”
—Steve Jobs
DESIGN is the
PRINCIPAL
DIFFERENTIATOR
between
Axiom:
“LOVE” and
“HATE”!
Message: Men
cannot
design
for women’s needs.
Innovation Index: How many
of your Top 5 Strategic
Initiatives/Key Projects score
8 or higher [out of 10] on a
“Weird”/ “Profound”/
“Wow”/“Game- changer”
Scale?
The
quality and quantity
and imaginativeness
of innovation shall
be the same in all
functions —e.g., in HR and
Iron Innovation Equality Law:
purchasing as much as in marketing or
product development.
L(+21) = L(-21)
Leadership(21A.D.) =
Leadership(21B.C.)
Tea
Power
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 enthuisiasm
that had won over both the nobility and the bourgeoisie. …”
Source: “In Paris, Taking the Salons By Srorm: How the Canny Ben Franklin Talked
the French into Forming a Crucial Alliance,” U.S. News & World Report, 0707.08
“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]
“eighty percent
of success is
showing up.”
—Woody Allen
“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)
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
Eddie VII/dance-flatter-mingle-learn the language
Vlad/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?
R.O.I.R.
Return On
Investment In
Relationships
“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.
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.
“Courtesies of a small and
trivial character are the
ones which strike
deepest in the grateful
and appreciating heart.”
—Henry Clay
#1 Trait …
“I am a
dispenser of
enthusiasm.”
—Ben Zander
“Nothing is so
contagious as
enthusiasm.”
—Samuel Taylor Coleridge
“A leader is
a dealer in
hope.”
—Napoleon
(+TP’s writing room pics)
#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 !”
“The one thing you need to
know about sustained
individual success: Discover
what you don’t like
doing and
stop
doing it.”
—Marcus Buckingham, The One Thing You Need to Know
“To develop others,
start with yourself.”
—Marshall Goldsmith
“Being aware of
yourself and how you
affect everyone around
you is what
distinguishes a superior
leader.”
—Edie Seashore (Strategy + Business #45)
Excellence. Always.
If not excellence …
What?
If not excellence
now … when?
Appendix #1
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?
1. Have you in the last 10 days … visited a
customer?
2. Have you called a customer … TODAY?
3. Have you in the last 60-90 days … had a seminar in which several folks from the
customer’s operation (different levels, different functions, different divisions) interacted,
via facilitator, with various of your folks?
4. Have you thanked a front-line employee for a
small act of helpfulness … in the last three days?
5. Have you thanked a front-line employee for a small act of helpfulness … in the
last three hours?
6. Have you thanked a frontline employee for carrying around a great attitude … today?
7. Have you in the last week recognized—publicly—one of your folks for a small act of
cross-functional co-operation?
8. Have you in the last week recognized—publicly—one of “their” folks (another function)
for a small act of cross-functional co-operation?
9. Have you invited in the last month a leader of another function to your weekly team
priorities meeting?
10. Have you personally in the last week-month called-visited an internal or external
customer to sort out, inquire, or apologize for some little or big thing that went awry? (No
reason for doing so? If true—in your mind—then you’re more out of touch than I dared
imagine.)
11. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines
concerning a project’s next steps?
12. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines
concerning a project’s next steps … and what specifically you can do to remove a hurdle? (“Ninety percent of
what we call management consists of making it difficult for people to get things done.”—Peter “His eminence”
Drucker.)
13. Have you celebrated in the last week a “small” (or large!) milestone reached? (I.e., are you a milestone
fanatic?)
14. Have you in the last week or month revised some estimate in the “wrong” direction and apologized for making
a lousy estimate? (Somehow you must publicly reward the telling of difficult truths.)
15. Have you installed in your tenure a very
comprehensive customer satisfaction scheme
for all internal customers? (With major consequences for hitting or missing
the mark.)
16. Have you in the last six months had a week-long, visible, very intensive visit-“tour” of external customers?
17. Have you in the last 60 days called an abrupt halt to a meeting and “ordered” everyone to get out of the office,
and “into the field” and in the next eight hours, after asking those involved, fixed (f-i-x-e-d!) a nagging “small”
problem through practical action?
18. Have you in the last week had a rather thorough discussion of a “cool design thing” someone has come
across—away from your industry or function—at a Web site, in a product or its packaging?
19. Have you in the last two weeks had an informal meeting—at least an hour long—with a frontline employee to
discuss things we do right, things we do wrong, what it would take to meet your mid- to long-term aspirations?
20. Have you had in the last 60 days had a general meeting to discuss “things we do wrong” … that we can fix in
the next fourteen days?
UniCredit Group/
UniCredito Italiano
—3rd party measurement
—Customer-initiated
measurement
—Primary $$$$ incentives
—“Factories”
—Primary Corporate Initiative
—Etc
21. Have you had in the last year a one-day, intense offsite with each (?) of your
internal customers—followed by a big celebration of “things gone right”?
22. Have you in the last week pushed someone to do some family thing that you fear
might be overwhelmed by deadline pressure?
23. Have you learned the names of the children of everyone who reports to you? (If
not, you have six months to fix it.)
24. Have you taken in the last month an interesting-weird outsider to lunch?
25. Have you in the last month invited an interesting-weird outsider to sit in on an
important meeting?
26. Have you in the last three days discussed something interesting, beyond your
industry, that you ran across in a meeting, reading, etc?
27. Have you in the last 24 hours injected into a meeting “I ran across this
interesting idea in [strange place]”?
28. Have you in the last two weeks asked someone to report on something, anything
that constitutes an act of brilliant service rendered in a “trivial” situation—
restaurant, car wash, etc? (And then discussed the relevance to your work.)
29. Have you in the last 30 days examined in detail (hour
by hour) your calendar to evaluate the degree “time
actually spent” mirrors your “espoused priorities”?
(And repeated this exercise with everyone on team.)
30. Have you in the last two months had a presentation to the group by a “weird”
outsider?
31. Have you in the last two months had a presentation to the group by a customer,
internal customer, vendor featuring “working folks” 3 or 4 levels down in the vendor
organization?
32. Have you in the last two months had a presentation to the group of a cool,
beyond-our-industry ideas by two of your folks?
33. Have you at every meeting today (and forever more) re-directed the conversation
to the practicalities of implementation concerning some issue before the group?
34. Have you at every meeting today (and forever more) had an end-of-meeting
discussion on “action items to be dealt with in the next 4, 48 hours? (And then made
this list public—and followed up in 48 hours.) And made sure everyone has at least
one such item.)
35. Have you had a discussion in the last six months about what it would take to get
recognition in local-national poll of “best places to work”?
36. Have you in the last month approved a cool-different training course for one
of your folks?
Have you in the last month taught a front-line
training course?
37.
38. Have you in the last week discussed the idea of Excellence? (What it means, how
to get there.)
39. Have you in the last week discussed the idea of “Wow”? (What it means, how
to inject it into an ongoing “routine” project.)
40. Have you in the last 45 days assessed some major process in terms of the
details of the “experience,” as well as results, it provides to its external or internal
customers?
41. Have you in the last month had one of your folks attend a meeting you were supposed to go
to which gives them unusual exposure to senior folks?
42. Have you in the last 60 (30?) days sat with a trusted friend or “coach” to discuss your
“management style”—and its long- and short-term impact on the group?
43. Have you in the last three days considered a professional
relationship that was a little rocky and made a call to the person
involved to discuss issues and smooth the waters? (Taking the
“blame,” fully deserved or not, for letting the thing-issue fester.)
44. Have you in the last … two hours … stopped by someone’s (two-levels “down") officeworkspace for 5 minutes to ask “What do you think?” about an issue that arose at a more or
less just completed meeting? (And then stuck around for 10 or so minutes to listen—and
visibly taken notes.)
45. Have you … in the last day … looked around you to assess whether the diversity pretty
accurately maps the diversity of the market being served? (And …)
46. Have you in the last day at some meeting gone out of your way to make sure that a normally
reticent person was engaged in a conversation—and then thanked him or her, perhaps
privately, for their contribution?
47. Have you during your tenure instituted very public (visible) presentations of performance?
48. Have you in the last four months had a session specifically aimed at checking on the
“corporate culture” and the degree we are true to it—with all presentations by relatively junior
folks, including front-line folks? (And with a determined effort to keep the conversation
restricted to “real world” “small” cases—not theory.)
49. Have you in the last six months talked about the Internal Brand Promise?
50. Have you in the last year had a full-day off site to talk about individual (and group)
aspirations?
Appendix #2
Forty-four “Secrets”
and “clever Strategies”
For dealing with the
Recession of 2008-XXXX
Tom Peters/0326.09
44 “Secrets” and “Clever Strategies” For
Dealing with the Recession of 2008-XXXX
You come earlier.
You leave later.
You work harder.
You may well work for less; and, if so, you
adapt to the untoward circumstances with a
smile—even if it kills you inside.
You volunteer to do more.
You dig deep and always bring a good attitude
to work.
You fake it if your good attitude flags.
You literally practice your "game face" in the
mirror in the morning, and in the loo
mid-morning.
You give new meaning to the idea and intensive
practice of “visible management.”
44 “Secrets” and “Clever Strategies” For
Dealing with the Recession of 2008-XXXX
You take better than usual care of yourself and
encourage others to do the same—physical
well-being determines mental well-being and
response to stress.
You shrug off shit that flows downhill in your
direction—buy a shovel or a “pre-worn”
raincoat on eBay.
You try to forget about “the good old days”—
nostalgia is self-destructive.
You buck yourself up with the thought that
“this too shall pass”—but then remind yourself
that it might not pass any time soon, and so
you re-dedicate yourself to making the
absolute best of what you have now.
44 “Secrets” and “Clever Strategies” For
Dealing with the Recession of 2008-XXXX
You work the phones and then work the
phones some more—and stay in touch with
positively everyone.
You frequently invent breaks from routine,
including “weird” ones—“changeups” prevent
wallowing and bring a fresh perspective.
You eschew all forms of personal excess.
You simplify.
You sweat the details as never before.
You sweat the details as never before.
You sweat the details as never before.
You raise to the sky and maintain at all
costs the Standards of Excellence by which
you unfailingly evaluate your own performance.
You are maniacal when it comes to responding
to even the slightest screwup.
44 “Secrets” and “Clever Strategies” For
Dealing with the Recession of 2008-XXXX
You find ways to be around young people and
to keep young people around—they are less
likely to be members of the “sky is falling”
school.
You learn new tricks of your trade.
You remind yourself that this is not just
something to be “gotten through”—it is the
Final Exam of character.
You network like a demon.
You network inside the company—get to know
more of the folks who “do the real work.”
You network outside the company—get to
know more of the folks who “do the real
work” in vendor-customer outfits.
44 “Secrets” and “Clever Strategies” For
Dealing with the Recession of 2008-XXXX
You thank others by the truckload if good
things happen—and take the heat yourself if
bad things happen.
You behave kindly, but you don't sugarcoat or
hide the truth--humans are startlingly
resilient and rumors are the real killers.
You treat small successes as if they were
Superbowl victories—and celebrate and
commend accordingly.
You shrug off the losses (ignoring what's going
on in your tummy), and get back on the
horse and immediately try again.
You avoid negative people to the extent you
can—pollution kills.
You eventually read the gloom-sprayers the
riot act.
44 “Secrets” and “Clever Strategies” For
Dealing with the Recession of 2008-XXXX
You give new meaning to the word "thoughtful.“
You don’t put limits on the flowers budget—
“bright and colorful” works marvels.
You redouble, re-triple your efforts to "walk in
your customer's shoes." (Especially if the
shoes smell.)
You mind your manners—and accept others’
lack of manners in the face of their strains.
You are kind to all mankind.
You keep your shoes shined.
You leave the blame game at the office door.
You call out the congenital politicians in no
uncertain terms.
You become a paragon of personal accountability.
And then you pray.