Transcript Paul Omerod: “I am often asked … “I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build.

Paul Omerod:
“I am often asked …
“I am often asked by
would-be entrepreneurs
seeking escape from life
within huge corporate
structures, ‘How do I
build a small firm for
myself?’ The answer
seems obvious …
“I am often asked by would-be entrepreneurs seeking escape from life
within huge corporate structures, ‘How do I build a small firm for
Buy a
very large
one and just
wait.”
myself?’ The answer seems obvious:
—Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics
“Data drawn from the real world
attest to a fact that is beyond
Everything
in existence tends
to deteriorate.”
our control:
—Norberto Odebrecht, Education Through Work
LONG
Re-Imagine:
Excellence
NOW
Tom Peters/20 August 2012
PwC Annual Partners Meeting
(slides @ tompeters.com)
Service/
Excellence/
Immoderation
Service
Organizations
exist to serve.
Period.
Leaders live to
serve. Period.
Excellence
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 pursuit of
EXCELLENCE in
service of others.**
**Employees, Customers, Suppliers, Communities, Owners, Temporary partners
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.
EXCELLENCE is not
an "aspiration.”
EXCELLENCE is …
THE NEXT FIVE
MINUTES.
EXCELLENCE is not an "aspiration."
EXCELLENCE is … THE NEXT FIVE MINUTES.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
EXCELLENCE
Or not.
is your next conversation.
is your next meeting.
is shutting up and listening—really listening.
is your next customer contact.
is saying “Thank you” for something “small.”
is the next time you shoulder responsibility and apologize.
is waaay over-reacting to a screw-up.
is the flowers you brought to work today.
is lending a hand to an “outsider” who’s fallen behind schedule.
is bothering to learn the way folks in finance [or IS or HR] think.
is waaay “over”-preparing for a 3-minute presentation.
is turning “insignificant” tasks into models of … EXCELLENCE.
EXCELLENCE
is … THE
NEXT FIVE
MINUTES.
Or not.
EXCELLENCE is
a personal
choice … not
an institutional
choice!
Immoderation
Kevin Roberts’ Credo
1. Ready. Fire! Aim.
2.
3.
4.
5.
6.
7.
8.
9.
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.
10.
Avoid moderation!
The Word
according to
Mr. Hilton
Conrad Hilton, at a gala celebrating his
career, was called to the podium and
“What were the
most important
lessons you learned
in your long and
distinguished
career?” His answer …
asked,
“remember
to tuck the
shower curtain
inside the
bathtub.”
is
“Execution
strategy.”
—Fred Malek
“When assessing candidates, the
first thing I looked for was energy
and enthusiasm for execution.
Does she talk about the thrill
of getting things done, the
obstacles overcome, the role
her people played —or does she
keep wandering back to strategy
or philosophy?” —Larry Bossidy, Execution
“In real life, strategy
is actually very
straightforward. Pick
a general direction
… and implement
like hell.” —Jack Welch
A Professional
Just Like You?
“The doctor
interrupts
after …*
*Source: Jerome Groopman, How Doctors Think
18 …
seconds!
[An obsession with] Listening is ... the ultimate mark
of
Listening
Listening
Listening
Listening
Listening
Listening
Listening
is
is
is
is
is
is
is
...
...
...
...
...
...
...
Listening
Listening
Listening
Listening
is
is
is
is
...
...
...
...
the heart and soul of Engagement.
the heart and soul of Kindness.
the heart and soul of Thoughtfulness.
the basis for true Collaboration.
the basis for true Partnership.
a Team Sport.
a Developable Individual Skill.* (*Though women
are far better at it than men.)
the basis for Community.
the bedrock of Joint Ventures that work.
the bedrock of Joint Ventures that grow.
the core of effective Cross-functional
Communication* (*Which is in turn Attribute #1 of
organizational effectiveness.)
[cont.]
Respect
.
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
Listening
is
is
is
is
is
is
is
is
is
is
is
is
is
is
is
is
is
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
EXECUTION
the engine of superior
.
the key to making the Sale.
the key to Keeping the Customer’s Business.
Service.
the engine of Network development.
the engine of Network maintenance.
the engine of Network expansion.
Social Networking’s “secret weapon.”
Learning.
the sine qua non of Renewal.
the sine qua non of Creativity.
the sine qua non of Innovation.
the core of taking diverse opinions aboard.
Strategy.
Source #1 of “Value-added.”
Differentiator #1.
Profitable.* (*The “R.O.I.” from listening is higher than
from any other single activity.)
Listening is … the bedrock which underpins a Commitment to
EXCELLENCE!
If
you agree with the above, shouldn’t listening be ... a
Core Value?
If you agree with the above, shouldn’t listening be ...
perhaps Core Value #1?* (*“We are Effective Listeners—
we treat Listening EXCELLENCE as the Centerpiece of our
Commitment to Respect and Engagement and Community
and Growth.”)
If you agree, shouldn’t listening be
If you agree, shouldn’t listening be
#1?
If you agree, shouldn’t listening be
item” at every Meeting?
If you agree, shouldn’t listening be
se? (Listening = Strategy.)
If you agree, shouldn’t listening be
for in Hiring (for every job)?
... a Core Competence?
... Core Competence
... an explicit “agenda
... our Strategy—per
... the #1 skill we look
Message:
Listening is a …
profession!
Remember
what your
grandmother
Told You …
“Courtesies of a small and
trivial character are the
ones which strike
deepest in the grateful
and appreciating heart.”
—Henry Clay, American Statesman (1777-1852)
K=R=P
Kindness =
Repeat Business =
Profit.
Kindness … WORKS!
Kindness … PAYS!
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 screw-ups.
“Over”-reacts to screw-ups of any magnitude.
“Professional” in all dealings.
Optimistic.
Understands that kindness to staff breeds kindness to others/outsiders.
Applies throughout the “supply chain.”
Applies to 100% of customer’s staff.
Explicit part of values statement.
Basis for evaluation of 100% of our staff.
R.O.I.R. >
R.O.I.
Return On
Investment In
Relationships
Cross-border
Conversations
hundreds of
times better here
“I am
[than in my
because of the
support system. It’s like you
were working in an organism;
you are not a single cell when
you are out there practicing.’” —
prior hospital assignment]
quote from Dr. Nina Schwenk, in Chapter 3,
“Practicing
Team Medicine,” from Leonard Berry & Kent Seltman,
from
Management Lessons From
Mayo Clinic
"It became necessary to
develop medicine as a
cooperative science; the
clinician, the specialist, the
laboratory workers, the nurses
uniting for the good of the
patient, each assisting in the
elucidation of the problem at
hand, and each dependent
upon the other for support.”
—Dr. William Mayo, 1910
"The personnel committees on all
three campuses have become
aggressive in addressing the issue
of physicians who are not living
the Mayo value of exhibiting
respectful, collegial behavior to all
team members. Some physicians
have been suspended without pay
or terminated.” —Leonard Barry & Kent Seltman,
Management Lessons from Mayo Clinic
“Observed closely:
The use of
‘we’
‘I’
or
during a job
interview.”
Source: Leonard Berry & Kent Seltman, chapter 6, “Hiring for Values,”
Management Lessons From Mayo Clinic
“Allied commands depend on
mutual confidence
and this confidence is
gained, above all
development
of friendships.”
through the
—General D.D. Eisenhower, Armchair General*
*“Perhaps his most outstanding ability [at West Point]
he made friends and earned
the trust of fellow cadets who came from
widely varied backgrounds; it was a quality that would pay
was the ease with which
great dividends during his future coalition command.”
Never
waste a
lunch!*
*The sacred 220 ABs.
“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!”
“I got to know his [Icahn’s]
secretaries. They are always
the keepers of everything.”
—Dick Parsons, then CEO Time Warner,
on dealing with an Icahn threat to his company
“Parsons is not a visionary.
He is, instead, a master in
the art of relationship.”
—Bloomberg BusinessWeek (03.11)
Which
customers
first?
“You have to
treat your
employees like
customers.”
—Herb Kelleher,
upon being asked his “secret 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 AA’s Annual Meeting)
… 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.
“Business has to give people enriching,
or it's
simply not
worth
doing.”
rewarding lives …
—Richard Branson
"Leadership is a gift.
It's given by those
who follow. You
have to be worthy of
it.”
—USAF General Mark Walsh
The Memories
That Matter.
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 longshots (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.”
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.
CIVILITY
Demanding …
… regardless of circumstances.
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.
Leaving something behind of demonstrable-lasting worth. (On short as
well as long assignments.)
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 set
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.
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 selfmanagement 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.”
Bit your tongue on a thousand occasions—and listened, really
really listened. (And been constantly delighted when, as a result, you
invariably learned something new and invariably increased your
connection with the speaker.)
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.)
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.”
Joe J. Jones
1942 – 2010
Net Worth
$21,543,672.48
From
sweaters to
people!
Les Wexner:
Andrew Carnegie’s Tombstone Inscription …
Here lies a man
Who knew how to enlist
In his service
Better men than
himself.
Source: Peter Drucker, The Practice of Management
starts at home
“Being aware of
yourself and how you
affect everyone around
you is what
distinguishes a superior
leader.” —Edie Seashore (Strategy +
Business #45)
“How can a high-level leader like _____ be so
out of touch with the truth about himself? It’s
In
fact, the higher up the
ladder a leader climbs, the
less accurate his selfassessment is likely to be.
more common than you would imagine.
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
You are What
You 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’ ”
“Who’s the most
interesting person
you’ve met in the last
90 days? How do I
get in touch with her
or him?” —Fred Smith
Vanity Fair:
“What is your most marked
characteristic?”
Mike Bloomberg:
“Curiosity.”
“There is not a
sprig of grass
that shoots
uninteresting to
me.” —Thomas Jefferson
“Do one thing
every day that
scares you.”
—Eleanor Roosevelt
“The
Bottleneck …
“The Bottleneck … Is at
the Top of the Bottle”
“Where are you likely to find people
with the least diversity of experience,
the largest investment in the past,
and the greatest reverence for
industry dogma …
At the top!”
— Gary Hamel/Harvard Business Review
/46
Lesson46:
WTTMTW
Whoever
Tries
The
Most
Things
Wins
Better yet:
WTTMTTFW
Whoever
Tries
The
Most
Things
The
Fastest
Wins
“You miss
100% of
the shots you
never take.”
—Wayne Gretzky
In Search of Excellence /1982:
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
14,000
20,000
30
14,000
20,000
14,000/eBay
20,000/Amazon
30/Craigslist
“We are crazy. We should do
something when people say
If people
say something is
‘good’, it means
someone else is
already doing it.”
it is ‘crazy.’
—Hajime Mitarai, Canon
“We all agree your
theory is crazy. The
question, which
divides us, is
whether it is crazy
enough.”
—Niels Bohr, to Wolfgang Pauli
“There’s no use trying,’ said
Alice. ‘One cannot believe
impossible things.’ ‘I daresay
you haven’t had much practice,’
said the Queen. ‘When I was
your age, I always did it for half
an hour a day. Why, sometimes
I’ve believed as many as six
impossible things before
breakfast.’” — Lewis Carroll
Where’s
your “Craig’s List
Every project:
[WOW!]
option”?
Obvious
“Forget China, India
and the Internet:
Economic Growth Is
Driven by
Women.”
Source: Headline, Economist
W = 28T > 2(C + I)*
*Women = $28 trillion > twice China + India combined
“AS LEADERS,
WOMEN
RULE:
New Studies find that
female managers outshine their male
counterparts in almost every measure”
TITLE/ Special Report/ BusinessWeek
GREAT
Professional
Service Firms
1. Stunning commitment to integrity.
2. Counselors/trusted advisors first.
not not not not
3. We are
in a commodity
business. (If it is a “commodity business,” then I/Tom
Peters am a commodity?)
4.
5.
6.
7.
8.
listeners
Stellar
—to our Clients.
Stellar listeners—to our fellow partners.
Stellar listeners—to our most junior associates. (!!!!!)
Stellar listeners—to every member of staff.
Insatiable curiosity marks 100% of us.
Extreme Service
9. We live to serve/
ethic.
10. Our leaders are servant leaders. (Every partner is a
leader/servant leader first.)
11. Deeply ingrained sense of fairness.
12. Hustlers—but thoughtful to a fault!
13. “Service ethic” means … service to one another as
much as service to clients!
14. Drop everything to assist a colleague in need—central
to our overall ethos.
15. A compensation scheme that unmistakably and
visibly and dramatically rewards partner co-operation in
developing and serving and retaining clients.
Toss “lousy colleagues” [bad
teammates] out on their derrieres.
16.
We will not tolerate less than class-A supportiveness; we
will toss out top “rainmakers” who do not subscribe to
our abiding teamwork ethic.
Intellectual point of view that is
Distinct/Exciting/Constantly
refreshed.
17.
18. We listen intently, but we also push our clients to
explore significantly new approaches to doing business.
19. We insist, as best we can, that every client consider
and test discontinuous change.
20. We understand that implementing our advice may
require “culture change” in the client’s operation; we will
leave a practical framework-process behind to help the
client embrace and execute such excruciatingly difficult
change.
21. We will stretch our clients to the limits—but not
suggest actions that are beyond the reach of
implementation in the mid-term future. (“Never give an
order that cannot be obeyed.”—MacArthur.)
22. We will intimately assist the client in achieving nearterm “small wins” that signify and exemplify the changes
the client intends to embrace.
23. Every partner must have a point of view of note—and
a point of view that is recognized far beyond our firm’s
borders.
The definition of the very best
partners is that they are “insanely great”
(thanks, Steve Jobs) mentors!
24.
25. Equal compensation/recognition to top “rainmakers,”
“intellectuals,” and “magical mentors.”
26. We are all “rainmakers”—responsible for making it
clear to the client that he-she made a great decision in
associating with us.
Invest heavily in ideas—this means
significant time and $$$$$$$.
27.
28. Invest heavily in training and retraining. (Our training
will feature working with clients to implement our ideas,
the managerial aspect of directing client engagements,
the theory and art and practice of leadership, listening
and presenting, and understanding the “business
principals” that are essential to our economic survival.)
29. Technology pioneers. (Yes, “pioneers.”)
A decent/significant share of
oddballs/disturbers-of-the-peace. (Often
30.
irritating people; get over it.)
31. Relatively high turnover and very high diversity
(background, gender, etc.) in top leadership posts and
committees.
32. Quality >> Quantity. (Big is fine as a byproduct of Great
Work. “Big for big’s sake” is un-fine; economies of scale are
over-rated.)
33. Significant portfolio of “interesting” clients. (I.e.
clients that lead us-drag us into new pastures.)
34. A clear understanding that the “middle market” is
often the key to success and vitality—we will not be
conned by some specious/ego-centric need to be
associated with the likes of the “Fortune 100.”
35. Willingness to dump bad-demotivating-enervating
clients (even big ones).
36. Understand that we are running a for-profit
enterprise. Cash flow matters! (A lot.)
37. In love with our work! (Expunge those who
are not in love with their work—dump the burnouts.)
38. Sense of fun. (Yes, damn it.) (Make it a fun place to
work—David Ogilvy.)
39. Professional to a fault (we love the word
“professional”) …. but not pompous.
40. “d”iversity—diversity of every flavor one can imagine.
41. Notable-visible respect for the ideas of young
associates. (!!!!!!)
42. Practice-as-teamwork. (Teammate-ism rewarded, lack
thereof punished with extreme prejudice.)
43. Deep bench. “Supporting cast,” notably starting with
receptionist, must be of same quality as partners—there
are no “bit players” in our business!
44. Age gracefully gives way to youth—regeneration a
deep-seated guiding belief.
45. Youth gracefully gives way to age—our most effective
elders have much to teach us when, especially, it comes to
client retention.
46. Hard work expected and cherished—workaholism for
workaholism’s sake assiduously guarded against.
47. Proud of our culture, guard our culture zealously—but
even “great cultures” age. (And at the least become
horribly elaborated.)
48. Rigorous evaluations of client satisfaction by more or
less disinterested parties.
49. Sky-high time investment in our evaluation process.
50. My legacy (as a partner) is:
Being “of service.”
Developing people.
Being a good colleague—which absorbed
lots of my time.
Doing consistently superior (sky high)
quality work.
Adding materially to the ideas base of the
Firm.
Insuring the continuity of the firm—
culturally and financially.
Being a paragon of integrity and decency.
Leaving gracefully.
51. “Execution is strategy.” (Thanks, Fred
Malek.)
52. My word is my bond.
Wow! (Why not? What else?)
54. Excellence! PERIOD! (Why not?
53.
What else?)
“Be the best. It’s the
only market that’s not
crowded.”
55.
—George Whalin
The greatest danger
for most of us
is not that our aim is
too high
and we miss it,
but that it is
too low
and we reach it.
Michelangelo
Excellence.
Always.
If not Excellence,
what?
If not Excellence
now, when?