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Tom Peters’ Excellence. Always. Manchester/02 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” Slides [incl. “LONG”] 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 “What do you think?” are … 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 college He was seriously interested in who you were and what you had to say.” 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) 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 “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! Excellence! Bonus: New Delhi “The ONE Question”: “In the last year [3 years, current job], name the … three people … 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 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.** 2007 Sydney … 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. ‘SERVE’ “Leaders 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-ofthemselves.” “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-best-version-of-himself or –herself. … question is: When a company forgets that it exists to serve customers, it quickly goes out of Our employees are our first customers, and our most important customers.” business. “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 “The role of the Director is to create a space where the actors and actresses can become more than they’ve ever been before, more than they’ve dreamed of being.” —Robert Altman, Oscar acceptance speech “Business has to give people enriching, or it's simply not worth doing.” rewarding lives … —Richard Branson “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 Yes They Can: #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. the most important aspect of business and yet remains “In short, hiring is woefully misunderstood.” Source: Wall Street Journal, 10.29.08, review of Who: The A Method for Hiring, Geoff Smart and Randy Street “Development can help great people be but if I had a dollar to spend, I’d spend 70 cents getting the right person in the door.” — even better— Paul Russell, Director, Leadership & Development, Google #1 cause of 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 2/year = legacy. Little = Don’t like it? Don’t pay. Source: Granite Rock Co. Big carts = Source: Wal*Mart Socks = 10,000 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 … Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07) 6.5 feet Away = -63% “Seconds” 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” 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. Staff Interaction P.P.S. directly correlated with Employee Satisfaction directly related to 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. free. Kindness is 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 “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. “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 <TGW and … [Things Gone WRONG-Things Gone RIGHT] 2-cent candy -15/+15/ 2,000,000 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 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 “AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” TITLE/ Special Report/ BusinessWeek !!!!!!!!!!!!!!!!! “People turning 50 today have more than half of their adult life ahead of them.” 50+: Igniting a —Bill Novelli, 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 experimenta & 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 we will be the Center of your universe for the next twenty-five years. We have the history 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 invent breaks from routine, including “weird” ones— “changeups” prevent wallowing/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 World Cup 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 quash congenital politicians—none too gently. 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 myself?’ The answer seems obvious : Buy a very large one and just wait.” —Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics “Mr. Foster and his McKinsey colleagues collected detailed performance data stretching back companies. 40 years for 1,000 U.S. 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 “Data drawn from the real world attest to a fact that is beyond our control: Everything in existence tends to deteriorate.” —Norberto Odebrecht, Education Through Work #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 ‘dull- normal.’ [They] are welding contractors, auctioneers, scrap-metal dealers, lessons of portable toilets, dry cleaners, re-builders of diesel engines, paving contractors …” Source: The Millionaire Next Door, Thomas Stanley & William Danko ry it. Try it. Try it. Try crew it up. Try it. Try i ry it. Try it. Try it. Try ry it. Screw it up. it. Tr it. Try it. try it. Try it. crew it up. Try it. Try i “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 “Fail . Forward. Fast.” High Tech CEO, Pennsylvania “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’ ” “[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 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 Diversity trumped ability.” did better. … —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! Geologists + Geophysicists + A little bit of love = >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 CGRO* *CGRO/Chief Grunge Removal Officer (CDC/Chief of De-complexification) (CAO/Chief Anti-systems Officer) (CBSD/Chief 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 Up, Up, Up, the Value-added Ladder. IB : $55B* M *Also HP-EDS “THE GIANT STALKING BIG OIL: How Schlumberger Is Rewriting the Rules of the Energy Game.”: “IPM [Integrated Project Management] strays from [Schlumberger’s] traditional role as a service provider and moves deeper into areas once dominated by the majors.” Source: BusinessWeek cover story, January 2008 (1) 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/TRANSFORMATION Customer Success/ Gamechanging Solutions Services Goods Raw Materials 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 fundamental soul of a man-made is the creation.” —Steve Jobs DESIGN is the PRINCIPAL DIFFERENTIATOR Axiom: “LOVE” “HATE”! between and cannot Message: Men 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., Iron Innovation Equality Law: in HR and purchasing as much as in marketing or product development. L(+21) = L(-21) Leadership(21A.D.) = Leadership(21B.C.) Delaware Rules: “eighty percent of success is showing up.” —Woody Allen Give good tea! “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 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 EVII/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? “I regard … apologizing … as the most magical, healing, restorative gesture human beings can make. It is the centerpiece of my work with executives who want to get better.” —Marshall Goldsmith, What Got You Here Won’t Get You There: How Successful People Become Even More Successful THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM.* *PERCEPTION IS ALL THERE IS! Relationships (of all varieties): THERE ONCE WAS THREEMINUTE PHONE CALL A TIME WHEN A 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 … “Nothing is so contagious as enthusiasm.” —Samuel Taylor Coleridge “I am a dispenser of enthusiasm.” —Ben Zander “A leader is a dealer in hope.” —Napoleon #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 !” How long to achieve excellence? Excellence. Always. If not excellence … What? If not excellence now … when?