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To appreciate this presentation [and insure that it is not a mess], you need Microsoft fonts: NOTE: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana” Before we begin … If the regimental commander lost most of his 2nd lieutenants and 1st lieutenants and captains and majors, it would be a If he lost his sergeants it would be a catastrophe. tragedy. #1 cause of employee Dis-satisfaction? Employee retention & satisfaction: Overwhelmingly based on the first-line manager! Source: Marcus Buckingham & Curt Coffman, First, Break All the Rules: What the World’s Greatest Managers Do Differently Capital Asset **Selecting and training and mentoring one’s pool of frontline managers can be a “Core Competence” of surpassing strategic importance. **Put under a microscope every attribute of the cradle-tograve process of building the capability of our cadre of front-line managers. Capital Asset I am sure you “spend time” on this. My question: Is it an OBSESSION worthy of the impact it has on enterprise performance? Tom Peters’ Excellence. Always. Riyadh/23 October 2010 (Slides/Slides LONG at tompeters.com) Part One The “3H Theory of Everything” All you need to know … Hilton Howard Herb Conrad Hilton, at a gala celebrating his career, “What was the most important lesson you’ve learned in your long and distinguished career?” His immediate was asked, answer … “remember to tuck the shower curtain inside the bathtub” is “Execution strategy.” —Fred Malek “In real life, strategy is actually very straightforward. Pick a general direction and implement like hell” —Jack Welch All you need to know … Hilton Howard Herb 1977 MBWA Managing By Wandering Around/HP 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) “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.) All you need to know … Hilton Howard Herb “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 the Annual Meeting) "If you want staff to give great service, give great service to staff." —Ari Weinzweig, Zingerman's “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. True 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?’” “We went through the hotel 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.” Source: Jan Gunnarsson and Olle Blohm, Hostmanship: The Art of Making People Feel Welcome. 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 Luiza Helena, Magazine Luiza* *Wegmans All you need to know … Hilton Howard Herb 3H: Hilton, Howard, Herb **Sweat the details! **Stay in touch! **It’s all about the people! Part Two Tom Peters’ Excellence. Always. Innovate. Or. Die. Paul Ormerod: “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 “Mr. Foster and his McKinsey colleagues collected detailed performance data stretching back 40 years for 1,000 They found that U.S. companies. 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 “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 You don’t get better by being bigger. You Dick Kovacevich: “When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs’ Investment Policy Committee, I’m sure there are success stories out there, but at this moment I draw a blank.” answered: —Mark Sirower, The Synergy Trap “Not a single company that qualified as having made a sustained transformation ignited its leap with a big acquisition or merger. Moreover, comparison companies—those that failed to make a leap or, if they did, failed to sustain it—often tried to make themselves great with a big acquisition or merger. They failed to grasp the simple truth that while you can buy your way to growth, you cannot buy your way to greatness.” —Jim Collins/Time/2004 “Acquisitions are about buying market share. Our challenge is to create markets. There is a big difference.” —Peter Job, former CEO, Reuters The Innovate or Die 20 ry it. Try it. Try it ry it. Try it. Screw i p. Try it. Try it. Try Try it. Try it. Try i ry it. Screw it up. it ry it. Try it. try it “Experiment fearlessly” Source: BusinessWeek, Type A Organization Strategies/ “How to Hit a Moving Target”—Tactic #1 “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 READY. FIRE! AIM. Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985) Korea! Culture of Prototyping “Effective prototyping may the most valuable core competence an be innovative organization can hope to have.” —Michael Schrage Think about It!? Innovation = Reaction to the Prototype Source: Michael Schrage “Fail. Forward. Fast.” High Tech CEO, Pennsylvania “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) “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec “The secret of fast progress is inefficiency, fast and furious and numerous failures.” —Kevin Kelly Read This! Richard Farson & Ralph Keyes: Whoever Makes the Most Mistakes Wins: The Paradox of Innovation “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.” Success 101: 1/4,000 “You miss 100% of the shots you never take.” —Wayne Gretzky 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 “[other] admirals more frightened of losing than anxious to win” On NELSON: #1C He who has the quickest “O.O.D.A. Loops”* wins! *Observe. Orient. Decide. Act. /Col. John Boyd OODA Loop/Boyd Cycle “Unraveling the competition” / Quick Transients/ Quick Tempo (NOT JUST SPEED!)/ Agility/ “So quick it is disconcerting” (adversary over-reacts or under-reacts)/ “Winners used tactics that caused the enemy to unravel before the fight” (NEVER HEAD TO HEAD) BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) #2 The “Parallel Universe” Axiom “Venture” fund: Gerstner/Amex, Dow/Marriott, Grove/Intel, Bedbury/Starbucks SkunkWorks/ “Skunks” (!!!) “SkunkWorks”/ “ParallelUniverse” “the solution” Source: Scott Bedbury (Others: 3M, Google, Shell, NAVFAC) Playmate!* Playpen! Prototype! *Can be Client, supplier … as well as Insider Demos! Heroes! Stories! #2A “Somewhere in your organization, groups of people are already doing things differently and better. To create lasting change, find these areas of positive deviance and fan the flames.” —Richard Pascale & Jerry Sternin, “Your Company’s Secret Change Agents,” HBR #3 Little = *Thank you, Mr. Prime Minister Big carts = Source: Walmart Bag sizes = New markets: Source: PepsiCo Socks = 10,000 see green = recover 20% faster XFX = #1* *Cross-Functional Excellence XFX = #1 Never waste a lunch! ???? % XF lunches* *Measure! Monthly! Part of evaluation! [The PA’s Club.] “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? 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-DAMNism.) 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.) 5. PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ONCE A DAY … make a short call or visit or send an email of “Thanks” for some sort of XFX gesture by your folks and some other function’s folks.) 6. Present counterparts in other functions awards for service to your group. Tiny awards at least weekly; and an “Annual All-Star Supporters [from other groups] Banquet” modeled after superstar salesperson banquets. 7. Discuss—A SEPARATE AGENDA ITEM—good and problematic acts of cross-functional co-operation at every Team Meeting. “XFX Social Accelerators.” 8. When someone in another function asks for assistance, respond with … more … alacrity than you would if it were the person in the 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. Do not bad mouth ... “the damned accountants,” “the bloody HR guy.” Ever. (Bosses: Severe penalties for this—including public tonguelashings.) 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. Everyone, starting with the receptionist, should have a significant XF rating component in their evaluation. (The “XFX Performance” should be among the Top 3 items in all managers’ evaluations.) 12. Demand XF experience for, especially, senior jobs. For example, the U.S. military requires all would-be generals and admirals to have served a full tour in a job whose only goals were cross-functional achievements. 13. XFX is … PERSONAL … as well as about organizational effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to personal success—in terms of organizational career, freelancer/Brand You, or as entrepreneur. Lunch > SAP/ Oracle THE WHOLE POINT HERE IS THAT “XFX” IS ALMOST CERTAINALY 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. #5 “Strategic Thrust Overlay” 1980: GE Inflation R&D/Business Development Risk management Workout VA/Service Six Sigma GSK: 7 “CEDDs” … Centers of Excellence for Drug Discovery G [B]TD: Tactics *Very small [but powerful] Central “Staff”* (*Line-like) *Senior “Homegrown” Boss [& Staff] *Enormous Incentives ($/Eval) *Line Accountability (Not “Matrix” ) *Demo-led (Emergent Methodology) *“Tour of [External] Excellence” *“Blitz” Training *Central Unit/Finite Life *Speed!* (*Change takes as long as you think it will.) *Goal: “Culture Change”! #6 The True Logic* of Decentralization: 6 divisions = 6 “tries” 6 divisions = 6 DIFFERENT leaders = 6 INDEPENDENT “tries” = Max probability of “win” 6 divisions = 6 very DIFFERENT leaders = 6 very INDEPENDENT “tries” = Max probability of “far out”/”3-sigma” “win” *“Driver”: Law of Large #s “‘Decentralization’ is not a piece of paper. It’s not me. It’s either in your heart, or not.” —Brian Joffe/BIDvest Enemy #1 I.C.D. Inherent/Inevitable/ Immutable Centralist Drift Note 1: Note 2: Jim Burke’s 1-word vocabulary: “No.” #7 #4 Japan #3 USA #2 China #1 Germany Reason: Mittelstand!* *“agile creatures darting between the legs of the multinational monsters" Source: Bloomberg BusinessWeek on the German … MITTELSTAND “Be the best. It’s the only market that’s not crowded.” From: Retail Superstars: Inside the 25 Best Independent Stores in America, George Whalin #8 We are the company we keep 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’ ” 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 “[CEO A.G.] Lafley has shifted P&G’s focus on inventing all its own products to developing others’ inventions at least half the time. 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 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 “Don’t benchmark, futuremark!” Impetus: “The future is already here; it’s just not evenly distributed” —William Gibson “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 “How do dominant companies lose their position? Two- thirds of the time, they pick the wrong competitor to worry about.” —Don Listwin, CEO, Openwave Systems/WSJ “Who’s the most interesting person you’ve met in the last 90 days? How do I get in touch with them?” —Fred Smith “What is your most marked characteristic?” Vanity Fair: Mike Bloomberg: “Curiosity.” “Do one thing every day that scares you.” —Eleanor Roosevelt “Freak Fridays” —once a month invite somebody interesting, in any field, to have lunch with your gang “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 “d”iversity “Diverse groups of problem solvers—groups of people with diverse tools—consistently outperformed groups of the best and the brightest. If I formed two groups, one random (and therefore diverse) and one consisting of the best individual performers, the first group almost always did better. … Diversity trumped ability.” —Scott Page, The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Diversity “The Billion-man Research Team: Companies offering work to online communities are reaping the benefits of ‘crowdsourcing.’” —Headline, FT, 0110.07 Rob McEwen/CEO/ Goldcorp Inc./ Red Lake gold Wikinomics: How Mass Collaboration Changes Everything, Don Tapscott & Anthony Williams Source: “Cisco, [CEO John] Chambers argues, is the best possible model for how a global business can operate: as a distributed idea engine where leadership emerges organically, unfettered by a central command.” —”Revolution in San Jose,” Fast (Chambers: “We now have a whole pool of talent who can lead these working groups—like mini CEOs and COOs.”) (Top blog: engineering director 5 levels down) Company, Dec-Jan 08-09 “The doctor interrupts after …* *Source: Jerome Groopman, How Doctors Think seconds [An obsession with] Listening is ... the ultimate mark of Respect. Listening is ... the heart and soul of Engagement. Listening is ... the heart and soul of Kindness. Listening is ... the heart and soul of Thoughtfulness. Listening is ... the basis for true Collaboration. Listening is ... the basis for true Partnership. Listening is ... a Team Sport. Listening is ... a Developable Individual Skill.* (*Though women Listening Listening Listening Listening is is is is ... ... ... ... are far better at it than men.) the basis for Community. the bedrock of Joint Ventures that work. the bedrock of Joint Ventures that last. the core of effective Cross-functional Communication* (*Which is in turn Attribute #1 of organizational effectiveness.) [cont.] 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 ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... the engine of superior EXECUTION. the key to making the Sale. the key to Keeping the Customer’s Business. 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 that from any other single activity.) Listening is … the bedrock which underpins a Commitment to EXCELLENCE “We are Effective Listeners—we treat Listening EXCELLENCE as the Centerpiece of our Commitment to Respect and Engagement and Partnering and Growth.” ENTERPRISE CORE VALUE: *Listening is of the utmost … strategic importance! *Listening is a proper … core value ! *Listening is … trainable ! *Listening is a … profession ! four most important words in any “The organization are … The four most important words in any organization are … “What do you think?” Source: courtesy Dave Wheeler, posted at tompeters.com What do managers do for a living? Help! Right? How many of us could call ourselves “professional helpers,” meaning that we have studied—like a professional mastering her craft—helping? (Not many, I’d judge.) Helping: How to Offer, Give, and Receive Help Ed Schein: Last chapter: 7 “principles.” E.g.: PRINCIPLE 2: “Effective Help Occurs When the Helping Relationship Is Perceived to Be Equitable. PRINCIPLE 4: “Everything You Say or Do Is an Intervention that Determines the Future of the Relationship.. PRINCIPLE 5: “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 playerturned 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!) … 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. Oath of Office: Managers/Servant Leaders Our goal is to serve our customers brilliantly and profitably over the long haul. Serving our customers brilliantly and profitably over the long haul is a product of brilliantly serving, over the long haul, the people who serve the customer. Hence, our job as leaders—the alpha and the omega and everything in between—is abetting the sustained growth and success and engagement and enthusiasm and commitment to Excellence of those, one at a time, who directly or indirectly serve the ultimate customer. We—leaders of every stripe—are in the “Human Growth and Development and Success and Aspiration to Excellence business.” “We” [leaders] only grow when “they” [each and every one of our colleagues] are growing. “We” [leaders] only succeed when “they” [each and every one of our colleagues] are succeeding. “We” [leaders] only energetically march toward Excellence when “they” [each and every one of our colleagues] are energetically marching toward Excellence. Period. “We are a ‘Life Success’ Company.” Dave Liniger, founder, RE/MAX “Managing winds up being the management of the allocation of resources against tasks. Leadership My definition of a leader is someone who helps people succeed.” focuses on people. —Carol Bartz, Yahoo! “The deepest human need is the … need to be appreciated.” —William James /80* *Post-interview “Thank you” notes “One kind word can warm three winter months.” – Japanese Proverb “I regard apologizing as the most magical, healing, restorative gesture human beings can make. It is the centerpiece of my work with executives who want to get better.” —Marshall Goldsmith, What Got You Here Won’t Get You There: How Successful People Become Even More Successful. 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. 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.* Conveyance: Kingfisher Air Location: Approach to New Delhi “May I clean your glasses, sir?”* *Kingfisher Air 2-cent candy 2,000,000 7X. 7:30A-8:00P. F12A. 7:30AM = 7:15AM. 8:00PM = 8:15PM. <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 Up, Up, Up, Up the Value-added Ladder. The Value-added Ladder Scintillating EXPERIENCES Services Goods Raw Materials Starbucks = Shaper of Culture: “At our core, we’re a coffee company, but the opportunity we have to extend the brand is it’s entertainment.” beyond coffee; —Howard Schultz (“The Starbucks Aesthetic,” NYT, 10.22.06) And in Milwaukee … Experience: “Rebel Lifestyle!” “What we sell is the ability for a 43year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.” Harley exec, quoted in Results-Based Leadership C *Chief e O* Xperience Officer All Equal Except … “At Sony we assume that all products of our competitors have basically the same technology, price, performance Design is the only thing that differentiates one product from another in the marketplace.” —Norio Ohga and features. “Design is treated like a religion at BMW.” —Fortune “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 Design is the fundamental soul of a man-made creation.” meaning of design. —Steve Jobs “With its carefully conceived mix of colors and textures, Starbucks aromas and music, is more indicative of our era than the iMac. It is to the Age of Aesthetics what McDonald’s was to the Age of Convenience or Ford was to the Age of Mass Production—the touchstone success story, the exemplar ‘Every Starbucks store is carefully designed to enhance the quality of everything the customers see, touch, hear, smell or taste,’ writes CEO Howard Schultz.” of … the aesthetic imperative. … -—Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness Hypothesis: DESIGN is the principal difference between love and hate! “Design is everything. Everything is design.” “We are all designers.” Inspiration: The Power of Design: A Force for Transforming Everything, Richard Farson “Business people don’t need to ‘understand designers better.’ Businesspeople need to be designers.” —Roger Martin/ Dean/Rotman Management School/University of Toronto O* C *Chief Design Officer National Strategy! New Zealand Korea Singapore Vermont “Forget China, India and the Internet: Economic Growth Is Driven by 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 “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 enrol 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. 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 creative and efficient than one comprised of only men. 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) 94% of loans to … women* *Microlending; “Banker to the poor”; Grameen Bank; Muhammad Yunus; 2006 Nobel Peace Prize winner !!!!!!!!!!!!!!!!! “People turning 50 more than half of today have their adult life ahead of them.” —Bill Novelli, 50+: Igniting a Revolution to Reinvent America 44-65: “New Customer Majority” * *45% larger than 18-43; 60% larger by 2010 Source: Ageless Marketing, David Wolfe & Robert Snyder “Marketers attempts at reaching those over 50 have been miserably No market’s motivations and needs are so poorly understood.” unsuccessful. —Peter Francese, founding publisher, American Demographics 55+ > 55-* *“[55-plus] are more active in online finance, shopping and entertainment than those under 55?” —Forrester Research.(USA Today, 8 January 2009) Up, Up, Up, Up the Value-added Ladder. Word "commodity" obscene! "Commodity" state of mind! ANYTHING ... can be differentiated numerous ways—logistics, quality of relationship, codevelopment of new use ... Tweet 10.05.10: $50B+* *IBM Global Services/ “Systems integrator of choice” “We want to be the air traffic controllers of electrons.” —Bob Nardelli, GE Power Systems (7 years, 5% to 55%) “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) “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 MasterCard Advisors “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/ OPPORTUNITY-SEEKING Customer Success/ Gamechanging Solutions Scintillating Experiences Services Goods Raw Materials Zappos 10 Corporate Values Deliver “WOW!” through service. Embrace and drive change. Create fun and a little weirdness. Be adventurous, creative, and open-minded. Pursue growth and learning. Build open and honest relationships with communication. Build a positive team and family spirit. Do more with less. Be passionate and determined. Be humble. Source: Delivering Happiness, Tony Hsieh, CEO, Zappos.com 14,000 20,000 14,000/eBay 20,000/Amazon 30/Craigslist “Insanely Great” Steve Jobs “Radically thrilling” BMW “We are crazy. We should do something when people say it is If people say something is ‘good’, it means someone else is already doing it.” ‘crazy.’ —Hajime Mitarai, Canon 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 role of the Director is to create a space where the actors become more than they’ve ever been before, more than they’ve dreamed of being.” and actresses can —Robert Altman, Oscar acceptance speech Organizing Genius / Warren Bennis and Patricia Ward Biederman “Groups become great only when everyone in them, leaders and members alike, is free to do his or her absolute best.” “The best thing a leader can do for a Great Group is to allow its members to discover their greatness.” Muhammad Yunus: “All human beings are entrepreneurs. When we were in the caves we were all selfemployed . . . finding our food, feeding ourselves. That’s where human history began . . . As civilization came we suppressed it. We became labor because they stamped us, ‘You are labor.’ We forgot that we are entrepreneurs.” Source: Muhammad Yunus/1122.2006 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? Part THREE The Small Courtesies. “Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” —Henry Clay 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 K=R=P Kindness = Repeat business = Profit. 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. “The deepest human need is the … need to be appreciated.” —William James /80* *Post-interview “Thank you” notes “One kind word can warm three winter months.” – Japanese Proverb “I regard apologizing as the most magical, healing, restorative gesture human beings can make. It is the centerpiece of my work with executives who want to get better.” —Marshall Goldsmith, What Got You Here Won’t Get You There: How Successful People Become Even More Successful. 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. Comeback [big, quick response] >> Perfection Acquire vs maintain*: Higher “market share” current customers *Recession goal: THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM.* *PERCEPTION IS ALL THERE IS! Potlatch. “Perception is all there is” Part Four #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 #2 “Dennis, you need a … ‘To-don’t ’ List !” Don’t > Do* * “Don’ting,” systematic, > WILLPOWER #3 “If there is any one ‘secret’ to effectiveness, it is concentration. Effective executives do first things first and they do thing at a time.” one —Peter Drucker John Sawhill/Major Strategic “What areas should the Conservancy focus on and more important— Initiative: 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 #4 “The ONE Question”: “In the last year [3 years, current job], three people 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.” #5 “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 more common than you would imagine. In fact, the higher up the ladder a leader climbs, the less accurate his self-assessment is likely to be. The problem is an acute lack of feedback [especially on people issues].” —Daniel Goleman (et al.), The New Leaders #6 “Nothing is so contagious as enthusiasm.” —Samuel Taylor Coleridge “I am a dispenser of enthusiasm.” —Ben Zander “You must be the change you wish to see in the world.” Gandhi “It’s always showtime.” —David D’Alessandro, Career Warfare “In the election in 1994, his smile 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 Part Five The Memories That Matter. The Memories That Matter The people you developed who went on to stellar accomplishments inside or outside the company. (A reputation as “a peerless people developer.”) 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.” 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 … CIVILITY … 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.” Having bitten 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-inall-we-do”/“EXCELLENCE in our behavior toward one another.” EXCELLENCE. Always. If Not EXCELLENCE, What? If not EXCELLENCE Now, When?