Transcript Document 7128831

LONG
Tom Peters’
EXCELLENCE.
ALWAYS.
ZIM Integrated Shipping Services
NEWAVE08/AgenTeam
02 July 2008/Macau (Taipa-Coloane)
To appreciate
this presentation [and ensure
that it is not a mess], you need
Microsoft fonts:
NOTE:
“Showcard Gothic,”
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and “Verdana”
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Slides at …
tompeters.com
Thank you
Ike, Ben
and Delaware
“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
Give
good
tea!
“eighty percent
of success is
showing up.”
—Woody Allen
l (+21) =
L(-21)
Thank
you Rich!
“Mapping your
competitive
position”*
or …
*Rich D’Aveni/HBR
The “Have
you …” 50*
*See Appendix One
1. Have you in the
last 10 days …
visited a customer?
2. Have you called a
customer … TODAY?
*
*
Note: See APPENDIX ONE for full list
“We Have …
Thank
you,
Howard!
Internal
organizational
excellence =
Deepest “Blue
Ocean”
“New technology, by itself, has little economic
benefit. … The economic benefits arise not from
innovation itself, but from the entrepreneurs who
eventually discover ways to put innovation to
and, most critically,
from the organizational
changes through which
businesses reshape
themselves to take
advantage of new
technology.” —Marc Levinson, The Box:
practical use—
How the Shipping Container Made the World Smaller and
the World Economy Bigger
Thank
you , Phil
“Reward
excellent failures.
Punish mediocre
successes.”
Phil Daniels, Sydney exec
Thank you,
Eleanor
“Do one thing
every day
that scares
you.”
—Eleanor Roosevelt
“I am often asked by would-be entrepreneurs
seeking escape from life within huge corporate
structures, ‘How do I build a small firm for
Buy
a very large one
and just wait.”
myself?’ The answer seems obvious:
—Paul Ormerod, Why Most Things Fail:
Evolution, Extinction and Economics
“Mr. Foster and his McKinsey colleagues
collected detailed performance data
stretching back 40 years for 1,000 U.S.
companies. They found that
none
of the long-term
survivors managed to outperform the
market. Worse, the longer companies
had been in the database, the worse
they did.” —Financial Times
You don’t
get better
by being
bigger. You
Dick Kovacevich:
“Data drawn from the real world
attest to a fact that is beyond
Everything
in existence tends
to deteriorate.”
our control:
—Norberto Odebrecht, Education Through Work
#1.1
#1 Exporter?
#4 Japan
#3 USA
#2 China
#1 Germany
Reason!!!
Mittelstand
Or …
Goldmann
Produktions
(11/50%/$5M/”dip and coat,” expensive pigments
vs “through coloring,” fades Bekro Chemie)
“This is so simple it sounds stupid, but it is amazing
how few oil people really understand that
you only find
oil if you drill
wells.
You may think you’re finding it
when you’re drawing maps and
studying logs, but you have to drill.”
Source: The Hunters, by John Masters, Canadian O & G wildcatter
“We made mistakes, of course. Most of them were
omissions we didn’t think of when we initially wrote the
software. We fixed them by doing it over and over, again
and again. We do the same today. While our competitors
are still sucking their thumbs trying to make the design
perfect, we’re already on prototype version
#5.
By
the time our rivals are
ready with wires and screws, we are on version
#10. It gets back to planning
versus acting: We act from day
one; others plan how to plan—
for months.” —Bloomberg by Bloomberg
“Experiment
fearlessly”
Source: BW0821.06, Type A Organization Strategies/
“How to Hit a Moving Target”—Tactic #1
Culture of Prototyping
“Effective prototyping may
the most
valuable core
competence an
be
innovative organization can
hope to have.” —Michael Schrage
“FAIL, FAIL
AGAIN. FAIL
BETTER.”
—Samuel Beckett
“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”
Speed/ Tempo/
o.o.d.a. loops/
“Metabolic
Management”
Messin’ with their
minds: He who has
the quickest
“O.O.D.A. Loops”*
wins!
*Observe. Orient. Decide. Act. /Col. John Boyd
2-5/42
De-central-iza-tion!
Enemy
#1
I.C.D.
Inherent/Inevitable/
Immutable Centralist Drift
Note 1:
Note 2: Jim Burke’s 1-word vocabulary: “No.”
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
“Best practice” =
ZERO Standard
Deviation
“Parallel
Universe” …
China!!!!!!!
Decentralization
vs Centralization
= “That’s All
There Is” (from childrearing
101 to the Federalist Papers to Org.2007)
Ex-ecu-tion!
“Execution is
the job of the
business
leader.”
—Larry Bossidy & Ram
Charan/ Execution: The Discipline of Getting Things Done
(1) sum of Projects =
Goal (“Vision”)
(2) sum of Milestones =
project
(3) rapid Review +
Truth-telling =
accountability
Ac-counta-bil-ity!
“GE has set a standard
of candor. … There is no
puffery. … There isn’t
an ounce of denial in
the place.”
—Kevin Sharer, CEO Amgen,
on the “GE mystique” (Fortune)
30%
MH: 80%
CF:
(no salesfolk)
(salesfolk)
6:15A.M.
DECENTRALIZATION.
EXECUTION.
ACCOUTABILITY.
6:15A.M.
K.i.s.s.
*Keep It Simple, Stupid
Case: The
“simple”
Checklist!
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,
2001
**Checklist, line infections
**1/3rd at least one error when he started
**Nurses/permission to stop procedure
if doc, other not following checklist
**In 1 year, 10-day line-infection rate:
11% to …
0%
Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07)
**Docs, nurses make own
checklists on whatever
process-procedure they choose
**Within weeks, average stay in
ICU down
50%
Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07)
“Beware of the
tyranny of making
Small Changes to Small
Things. Rather, make
Big
Changes to
Things.”
Big
—Roger Enrico, former Chairman, PepsiCo
“Beware of the tyranny of making
Small
Things.
Small
Changes to
Rather, make Big
Big Things …
using Small, Almost
Invisible
Straightforward
Levers with Big
Systemic Impact.”
Changes to
—TP
“Everything matters”
-80%
Source: Nudge, Richard Thaler and Cass
Sunstein, etching of fly in the urinal
reduces “spillage” by 80%, Schiphol Airport
X =XFX*
*Excellence = Cross-functional Excellence
**Stanford/Hagadorn/Interdisciplinary
raison d’être
**Conoco/geologists-geophysicists
**Old HP/R&D-Sales
**Schlumberger IPM-IBM Global ServicesUPS Logistics, HP-EDS (“bet the company” on
integrating others’ product and service
delivery throughout the supply chain)
**GSK/7 CEDDs
**Chiat/Day
**Batalden/DHMC/“clinical microsystems”
**JCS assignment pre-Flag
**Etc.
**Etc.
The “XF-50”: 50 Ways to
Enhance CrossFunctional
Effectiveness and
Deliver Speed, “Service
Excellence” and “Valueadded Customer
‘Solutions’”
1. It’s
our organization to make work—or not. It’s not “them,” the
outside world that’s the problem. The enemy is us. Period.
2. Friction-free! Dump 90% of “middle managers”—most are advertent or inadvertent “power
freaks.” We are all—every one of us—in the Friction Removal Business, one moment at a time,
now and forevermore.
3. No “stovepipes”! “Stove-piping,” “Silo-ing” is an Automatic Firing Offense. Period. No
appeals. (Within the limits of civility, somewhat “public” firings are not out of the question—that
is, make one and all aware why the axe fell.)
4. Everything on the Web. This helps. A lot. (“Everything” = Big word.)
5. Open access. All available to all. Transparency, beyond a level that’s “sensible,” is a de facto
imperative in a Burn-the-Silos strategy.
Project managers rule!! Project managers running XF (crossfunctional) projects are the Elite of the organization, and seen as
such and treated as such. (The likes of construction companies
have practiced this more or less forever.)
6.
7. “Value-added Proposition” = Application of integrated resources. (From the entire supplychain.) To deliver on our emergent business raison d’etre, and compete with the likes of our
Chinese and Indian brethren, we must co-operate with anybody and everybody “24/7.” IBM, UPS
and many, many others are selling far more than a product or service that works—the new “it” is
pure and simple a product of XF co-operation; “the product is the co-operation” is not much of a
stretch.
Never
waste a
lunch!*
????
% XF
lunches*
*Measure!
???????
“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!”
Promote “FRSs” (Friction
Reduction Specialists—nobody
can figure out what they “do’”
but when they’re around things
mysteriously get done
(Women? Not clear)
FRSs kin to HROs, IROs (Hurdle
Removal Officers, Impedance
Reduction Officers)
8. “XF work” is the direct work of leaders!
9. “Integrated solutions” = Our “Culture.” (Therefore: XF = Our culture.)
10. Partner with “best-in-class” only. Their pursuit of Excellence helps us get beyond
petty bickering. An all-star team has little time for anything other than delivering on
the (big) Client promise.
11. All functions are created equal! All functions contribute equally! All = All.
12. All functions are “PSFs,” Professional Service Firms. “Professionalism” is the
watchword—and true Professionalism rise above turf wars. You are your projects,
your legacy is your projects—and the legacy will be skimpy indeed unless you pass,
with flying colors, the “works well with others” exam!
13. We are all in sales! We all (a-l-l) “sell” those Integrated Client Solutions. Good
salespeople don’t blame others for screw-ups—the Clint doesn’t care. Good
salespeople are “quarterbacks” who make the system work-deliver.
14. We all invest in “wiring” the Client organization—we
develop comprehensive relationships in every part
(function, level) of the Client’s organization. We pay
special attention to the so-called “lower levels,” short
on glamour, long on the ability to make things happen at
the “coalface.”
15. We all “live the Brand”—which is Delivery of Matchless Integrated Solutions
which transform the Client’s organization. To “live the brand” is to become a raving
fan of XF co-operation.
16. We use the word “partner” until we want to barf! (Words matter! A lot!)
17. We use the word “team” until we want to barf. (Words matter! A lot!)
18. We use the word “us” until we want to barf. (Words matter! A lot!)
19. We obsessively seek Inclusion—and abhor exclusion. We want more
people from more places (internal, external—the whole “supply chain”)
aboard in order to maximize systemic benefits.
20. Buttons & Badges matter—we work relentlessly at team (XF team)
identity and solidarity. (“Corny”? Get over it.)
21. All (almost all) rewards are team rewards.
22. We keep base pay rather low—and give whopping bonuses for excellent
team delivery of “seriously cool” cross-functional Client benefits.
WE NEVER BLAME OTHER PARTS OF THE
ORGANIZATION FOR SCREWUPS.
24. WE TAKE THE HEAT—THE WHOLE TEAM. (For
anything and everything.) (Losing, like winning, is a
team affair.)
25. “BLAMING” IS AN AUTOMATIC FIRING OFFENSE.
23.
26. “Women rule.” Women are simply better at the XF communications
stuff—less power obsessed, less hierarchically inclined, more group-team
oriented.
27. Every member of our team is an honored contributor. “XF project Excellence”
is an “all hands” affair.
28. We are our XF Teams! XF project teams are how we get things done.
29. “Wow Projects” rule, large or small—Wow projects demand by definition XF
Excellence.
30. We routinely attempt to unearth and then reward “small gestures” of XF cooperation.
31. We invite Functional Bigwigs to our XF project team reviews.
32. We insist on Client team participation—from all functions of the Client
organization.
33. An “Open talent market” helps make the projects “silo-free.” People want in on
the project because of the opportunity to do something memorable—no one will
tolerate delays based on traditional functional squabbling.
34. Flat! Flat = Flattened Silos. Flat = Excellence based on XF project outcomes,
not power-hoarding within functional boundaries.
35. New “C-level”? We more or less need a “C-level” job titled Chief Bullshit
Removal Officer. That is, some kind of formal watchdog whose role in life is to
make cross-functionality work, and I.D. those who don’t get with the program.
36. Huge (H-U-G-E) co-operation bonuses. Senior team members
who conspicuously shine in the “working together” bit are
rewarded or punished Big Time. (A million bucks in one case I
know—and a non-cooperating very senior was sacked.)
37. Get physical!! “Co-location” is the most powerful “culture changer.
Physical X-functional proximity is almost a guarantee (yup!) of remarkably
improved co-operation—to aid this one needs flexible workspaces that can be
mobilized for a team in a flash.
38. Ad hoc. To improve the new “X-functional Culture,” little XF teams should be
formed on the spot to deal with an urgent issue—they may live for but ten days,
but it helps the XF habit, making it normal to be “working the XF way.”
39. “Deep dip.” Dive three levels down in the organization to fill a senior role
with some one who has been pro-active on the XF dimension.
40. Formal
evaluations. Everyone, starting with the receptionist,
should have an important XF rating component in their
evaluation.
41. Demand XF experience for, especially, senior jobs. The military requires all
would-be generals and admirals to have served a full tour in a job whose only
goals were cross-functional. Great idea!
42. Early project “management” experience. Within days, literally, of coming
aboard folks should be “running” some bit of a project, working with folks from
other functions—hence, “all this” becomes as natural as breathing.
43. “Get ’em out with the customer.” Rarely does the accountant or bench
scientist call one the customer. Reverse that. Give everyone more or less
regular “customer-facing experiences.” One learns quickly that the customer is
not interested in our in-house turf battles!
44. Put “it” on the–every agenda. XF “issues to be resolved” should be on every
agenda—morning project team review, weekly exec team meeting, etc. A “next
step” within 24 hours (4?) ought to be part of the resolution.
45. XF “honest broker” or ombudsman. The ombudsman examines XF “friction
events” and acts as Conflict Resolution Counselor. (Perhaps a formal conflict
resolution agreement?)
46. Lock it in! XF co-operation, central to any value-added mission, should be an
explicit part of the “Vision Statement.”
47. Promotions. Every promotion, no exceptions, should put XF Excellence in the
top 5 (3?) evaluation criteria.
48. Pick partners based on their “co-operation proclivity.” Everyone must be on
board if “this thing” is going to work; hence every vendor, among others, should
be formally evaluated on their commitment to XF transparency—e.g., can we
access anyone at any level in any function of their organization without
bureaucratic barriers?
49. Fire vendors who don’t “get it”—more than “get it,” welcome “it” with
open arms.”
50. Jaw. Jaw. Jaw. Talk XF cooperation-value-added at every opportunity. Become
a relentless bore!
Excellence! There is a state of XF
Excellence per se. Talk about it. Pursue
it. Aspire to nothing less.
51.
1. Most Tries Wins
2. DECENTRALIZATION.
3. EXECUTION.
4. ACCOUTABILITY.
5. 6:15A.M.
6. XFX
Hard Is Soft
Soft Is Hard
“If I could have chosen not to tackle the IBM culture head-on, I
probably wouldn’t have. My bias coming in was toward strategy,
analysis and measurement. In comparison, changing the
attitude and behaviors of hundreds of thousands of people is
[Yet] I came to see in
my time at IBM that culture
isn’t just one aspect of the
very, very hard.
game —it is the
game.”
—Lou Gerstner,
Who Says Elephants Can’t Dance
Hard Is Soft
Soft Is Hard
R.O.I.R.
Return On
Investment In
Relationships
“The capacity to develop close and
enduring relationships is the mark of
a leader. Unfortunately, many leaders
of major companies believe their job
is to create the strategy, organization
structure and organizational
processes—then they just delegate
the work to be done, remaining aloof
from the people doing
the work.” —Bill George, Authentic Leadership
FYI:
“Relationship
power” =
“Monopoly
power”
FYI:
“Sustainable
competitive
advantage” =
“Relationship-based
advantage”
(period.)
#5.2
“The four most important
words in any
organization
‘What do
you think?’ ”
are …
Source: courtesy Dave Wheeler,
posted at tompeters.com, source of
original unknown (0609.08)
Source: How Doctors Think, Jerome Groopman
#5.3
Hard Is Soft
Soft Is Hard
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.
THE PROBLEM IS
RARELY/NEVER THE
PROBLEM. THE
RESPONSE TO THE
PROBLEM INVARIABLY
ENDS UP BEING THE
REAL PROBLEM.
#5.4
“Courtesies of a small and
trivial character are the
ones which strike
deepest in the grateful
and appreciating heart.”
—Henry Clay
The Manager’s Book
of Decencies: How
Small /gestures
Build Great
Companies.
—Steve Harrison, Adecco
Attending to
the “Last 98%”:
The New
Management “Science,”
or …
“Hard Is Soft,
Soft Is Hard”
NOTE: Complete section at APPENDIX 2
S = f( ___ )
Success Is a
Function of …
S = ƒ(#&DR; -2L, -3L, 4L; I&E)
Number and depth of relationships 2, 3, and 4 levels down,
inside and outside the organization
S = ƒ(SD>SU)
Sucking down is more important than sucking up—the idea is to have
the entire organization working for you.
S = ƒ(#non-FF, #non-FL)
Number of friends, number of lunches with people not in my function
S = ƒ(#FF)
Number of friends in the finance function-organization
S = ƒ(OF)
Oddball friends
S = ƒ(PDL)
Purposeful, deep listening—this is very hard
EXCELLENCE.
VALUE ADDED.
UP THE LADDER.
NoT Optional.
The Value-added Ladder/ “BEDROCK”
Raw Materials*
*Farmers and Miners (“Degree”: Weightlifting)
The Value-added Ladder/ THINGS
Goods*
Raw Materials
*Engineers and Factory Workers (Degree: Engineering)
The Value-added Ladder/TRANSACTIONS
Services*
Goods
Raw Materials
*Clerks (Degree: Process Engineering)
LEAVE IT
TO BEAVER.
Trapper:
<$20
per beaver pelt.
Source: WSJ
wdcp/“Wildlife
Damage-control
Professional”: $150 to
“remove” “problem beaver”;
$750-$1,000 for
flood-control piping … so
that beavers can stay.
Source: WSJ
Trapper =
Redneck
WDCP = PSF/
Professional Services
Provider
7X to 40X
for
“Solution”
[rather than “service transaction”]
EXCELLENCE.
VALUE-ADDED LADDER.
SOLVE IT.
“M” = $0
IB :
$55B*
M
*Also HP-EDS
And the “M” Stands for … ?
“Systems
Integrator of choice.”/BW
Gerstner’s IBM:
(“Lou, help us turn ‘all this’ into that long-promised ‘revolution.’ ” )
IBM Global Services*
Services Corp.):
$55B
(*Integrated Systems
Planetary Rainmaker-in-Chief!
“Palmisano’s strategy is
to expand tech’s borders
by pushing users—and
entire industries—toward
radically different
business models. The payoff for IBM
would be access to an ocean of revenue—Palmisano
estimates it at $500 billion a year —that technology
companies have never been able to touch.” —Fortune
“By making the Global Delivery Model both legitimate and mainstream,
we have brought the battle to our territory. That is, after all, the purpose
of strategy. We have become the leaders, and incumbents [IBM, Accenture]
are followers, forever playing catch-up. … However, creating a new
business innovation is not enough for rules to be changed. The
innovation must impact clients, competitors, investors, and society. We
have seen all this in spades. Clients have embraced the model and are
demanding it in even greater measure. The acuteness of their
circumstance, coupled with the capability and value of our solution, has
made the choice not a choice. Competitors have been dragged kicking
and screaming to replicate what we do. They face trauma and disruption,
Investors have
grasped that this is not a passing
fancy, but a potential restructuring
of the way the world operates and
how value will be created in the
future.” —Narayana Murthy, chairman’s letter, Infosys Annual Report
but the game has changed forever.
“THE GIANT STALKING BIG OIL: How
Schlumberger Is
Rewriting the Rules of the Energy
Game.”: “IPM [Integrated Project
Management] strays from
[Schlumberger’s] traditional role
as a service provider and moves
deeper into areas once dominated
by the majors.”
Source: BusinessWeek cover story, January 2008
“Big Brown’s New Bag: UPS Aims
to Be the Traffic Manager for
Corporate America” —Headline/BW
“UPS wants to take over the
sweet spot in the endless loop
of goods, information and
capital that all the packages
[it moves] represent.” —ecompany.com
(E.g., UPS Logistics manages the logistics of 4.5M Ford vehicles,
from 21 mfg. sites to 6,000 NA dealers)
MasterCard
Advisors
“We want to be
the air traffic
controllers of
electrons.”
Bob Nardelli, GE Power Systems
California Closets: “a
whole-life upgrade, not
just a tidy bedroom.”
—WSJ/0329.07, “Why the ContainerStore Guy Wants to Be Your Therapist”
Huge: Customer
Satisfaction
versus
Customer
Success
“Customer Satisfaction” to “Customer
“We’re getting better at [Six
Sigma] every day. But we really need
to think about the customer’s
Success”:
profitability: Are customers’
bottom lines really
benefiting from
what we provide
them?”
—Bob Nardelli, then chief of
GE Power Systems
The Value-added Ladder/TRANSFORMATION
Customer Success/
Gamechanging
Solutions
Services
Goods
Raw Materials
“The business of selling is not just about matching viable
It’s
equally about managing the
change process the customer
will need to go through to
implement the solution and
achieve the value promised by
the solution. One of the key differentiators of
solutions to the customers that require them.
our position in the market is our attention to managing change
and making change stick in our customers’ organization.”*
(*E.g.: CRM failure rate/Gartner: 70%)
—Jeff Thull, The Prime Solution: Close the Value Gap,
Increase Margins, and Win the Complex Sale
Era #1/Obvious Value: “Our ‘it’ works, is
delivered on time” (“Close”)
Era #2/Augmented Value: “How our ‘it’
can add value—a ‘useful it’ ” (“Solve”)
Era #3/Complex Value Networks: “How our
‘system’ can change you and deliver
‘business advantage’ ” (“CultureStrategic change”)
Source: Jeff Thull, The Prime Solution: Close the Value Gap,
Increase Margins, and Win the Complex Sale
The Value-added Ladder/TRANSFORMATION
Customer Success through
Implemented
Gamechanging Solutions*
Services
Goods
Raw Materials
*Subject-matter Professionals and
Organization Effectiveness Experts (Degree: MBA,
Organizational Psychology)
#6.1.1
EXCELLENCE.
SOLVE IT.
NO OPTION.
PSF. (PSF++)
“Organizations will
still be critically
important in the
world, but as
‘organizers,’ not
‘employers’!”
— Charles Handy
Department Head
to …
Managing
Partner,
IS Inc.
[HR, R&D, etc.]
Answer:
Are you the …
“Principal
Engine of
Value Added”
*E.g.: Your R&D budget as robust as the New Products team?
#6.1.2
The “PSF35”:
Thirty-Five
Professional Service Firm
Marks of Excellence
The PSF35: The Work & The Legacy
1.
CRYSTAL CLEAR POINT OF VIEW
(E very Practice Group: “If you can’t explain your position in eight
words or less, you don’t have a position”—Seth Godin)
2. DRAMATIC DIFFERENCE (“We are the only ones who do what
we do”—Jerry Garcia)
3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)
4. Eye-Appetite for Game-changer Projects (Excellence at Assembling
“Best Team”—Fast)
5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change
the World)
6. Small “Uneconomic” Clients with Big Aims
7. Life Is Too Short to Work with Jerks (Fire lousy clients)
8. OBSESSED WITH LEGACY (Practice Group and Individual: “Dent the
Universe”—Steve Jobs)
9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/
I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ”
10. Consistent with #9 above … DO NOT SHY AWAY FROM THE
WORD (IDEA) “RADICAL”
Pointed
Point of
View!
The PSF35: The Client Experience
11. Always team with client: “full partners in
achieving memorable results” (Wanted: “Chimeras
of Moonstruck Minds”!)
12. We will seek assistance Anywhere to assemble the Best-inPlanet Team for the Project
13. Client Team Members routinely declare that working with us
was “the Peak Experience of my Career”
14. The job’s not done until implementation is
“100.00% complete” (Those who don’t “get it” must go)
IMPLEMENTATION IS NOT COMPLETE UNTIL
THE CLIENT HAS EXPERIENCED “CULTURE
CHANGE”
16. IMPLEMENTATION IS NOT COMPLETE UNTIL
SIGNIFICANT “TECHNOLOGY TRANSFER HAS
TAKEN PLACE-ROOT (“Teach a man to fish …”)
17. The Final Exam: DID WE MAKE A DRAMATIC,
LASTING, GAME-CHANGING DIFFERENCE?
15.
“The business of selling is not just about matching
viable solutions to the customers that require
them. It’s
equally about managing
the change process the customer
will need to go through to
implement the solution and
achieve the value promised by
the solution.”*
(*E.g.: CRM failure rate/Gartner: 70%)
—Jeff Thull, The Prime Solution: Close the Value Gap,
Increase Margins, and Win the Complex Sale
UniCredit Group/
UniCredito Italiano* **
—3rd party measurement
—Customer-initiated
measurement
—Primary $$$$ incentives
—“Factories”
—Primary Corporate Initiative
—Etc
*#13
**TP/#1
Full-scale
“business partner”
[CFO?] to the/each
department she
serves.
Ideal “finance staffer”:
Ideal “finance staffer”:
**Full-scale “business partner”
[CFO?] to the/each department
she serves.
**Not cop—obsessed instead with
value-added
**Integration first, “stovepipe”
secondary
**MBWA/bigtime
**Networker to the rest of Finance
The PSF35: The People & The Leadership
18. TALENT FANATICS (“Best-Coolest place to work”) (PERIOD)
19. EYE FOR THE PECULIAR (Hiring: Go beyond “same old,
same old”)
20. Early Opportunities (vs. “Wait your turn”)
21. Up or Out (Based on “Legacy”/Mentoring as much as
“Billings”/“Rainmaking”)
22. Slide the Old Aside/Make Room for Youth (Find oldsters
new roles?)
23. TALENT IS OBSESSED WITH RENEWAL FROM DAY #1 TO
DAY #“R” [R = Retirement]
24. Office/Practice Leaders Evaluated Primarily on
Mentoring-Team Building Skills
25. A “PROPRIETARY” TALENT DEVELOPMENT PROCESS (GE)
26. Team Leadership Skills Valued Early
27. Partner with B.I.W. [Best In World] Outsiders as Needed
and to Infuse Different Views
The PSF35: The Firm & The Brand
28. EAT-SLEEP-BREATHE-OOZE
is my message”—Gandhi)
INTEGRITY (“My life
29. Excellence+ in EXECUTION … 100.00% of the Time
30. “Drop everything”/“Swarm” to Support a Harried-On
The Verge Team
31. SPEND
ON R&D LIKE A TECH FIRM.
32. A PROPRIETARY METHODOLOGY (FBR, McKinsey,
Chiat Day, IDEO, old EDS)
33. BRAND
MANIACS (Organize Around a Point of View Worth
BROADCASTING)
34. PASSION!
35.
ENTHUSIASM!
EXCELLENCE. ALWAYS.
Static/Imitative
Integrity.
Quality.
Continuous Improvement.
Superior Service (Exceeds Expectations.)
Completely Satisfactory Transaction.
Smooth Evolution.
Market Share.
Dynamic/Different
Dramatic Difference!
Disruptive!
Insanely Great! (Quality++++)
Life-(Industry-)changing Experience!
Game-changing!
WOW!
Surprise!
Delight!
Breathtaking!
Punctuated Equilibrium!
Market Creation!
EXCELLENCE =
Flawless EXECUTION
+ Continuous IMPROVEMENT
+ Brilliantly Trained PEOPLE
+
Gamechanging QUESTS +
WEIRD Rosters +
GASPWORTHY Results
#6.1.3
Psf.
Bedrock.
Cost
(at All Costs*) Minimization
Professional?
Or/to: Full Partner“Purchasing Officer” Thrust #1:
Leader in Lifetime
Value-added
Maximization?
(*Lopez: “Arguably ‘Villain #1’ in GM tragedy”/Anon VSE-Spain)
Fleet Manager
Rolling Stock Cost
Minimization Officer
vs/or
Chief of Fleet Lifetime
Value Maximization
Strategic Supply-chain Executive
Customer Experience Director
(via drivers)
“Technology
Executive” (workin’ in a hospital)
HCare CIO:
Full-scale,
Accountable (life or death)
Member-Partner of XYZ
Hospital’s Senior
Or/to:
Healing-Services
Team
(who happens to be a techie)
PSF Transformation: Credit Department/Trek
Was
Is
Credit Dept
Financial Services
Hammer on dealers until
they pay
Make dealers successful so they
CAN pay
AR sold to 3rd party
commercial co.
Trek is the commercial financial
Company
23 employees
12 employees
Oversee peak AR of $70M
Oversee peak AR of $160M
Identify risky dealers
Identify opportunities
Cost Center
Profit Center
No products
Products: Consulting, MC/Visa,
Stored value of gift cards, Gift card
peripherals, Online payments
Source: John Burke/0330.06
Big Idea:
“Corporation” as
Mega-“PSF”
(Professional Service
Firm*)
* “Virtual” Collection of Entrepreneurially-minded
Professionals (“Talent”/“Roster”) Creating/Applying
Intellectual Capital (“Work Product”)
Are you the …
“Principal
Engine of
Value Added”
*E.g.: Your R&D budget as robust as the New Products team?
The FEVP/Fundamental Enterprise Value-Added
Proposition-Equation/Mark2008
(1) 100% “WOW PROJECTS”
(New Org “DNA”/“The Work”)
+
(2) Incredible “TALENT” Transformed into
(3) Entrepreneurial “BRAND YOUs” and
(4) Given Room-to-Roam & Launched on
Awesome “QUESTS”
=
(5) Internal “Rockin’ PSFs” (Staff Depts. Morphed into
Wildly Innovative Professional Service Firms) …
(6) Which Coalesce to Transform the FEVP/Fundamental Enterprise
Value Proposition from “Superior Products & Services” to
“ENCOMPASSING SOLUTIONS” &
“GAME-CHANGING CLIENT SUCCESS”
#6.2
EXCELLENCE.
VALUE-ADDED LADDER.
EXPERIENCE IT.
“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
“The [Starbucks] Fix” Is on …
“We have
identified a ‘third
place.’
And I really believe
that sets us apart. The third place is
that place that’s not work or home. It’s
the place our customers come for
refuge.” —Nancy Orsolini, District Manager
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
The Value-added Ladder/ MEMORABLE CONNECTION
Spellbinding
Experiences*
Customer Success/Implemented
Gamechanging Solutions
Services
Goods
Raw Materials
*Theatrical Skills (Degree: Theater Arts)
Beyond the “Transaction”/ “Satisfaction” Mentality
“Good hotel”/ “Happy guest”/
“Exceeded Expectations”
vs.
“Great Vacation”/
“Great Conference”/
“Operation Personal
Renewal”
<TGW
vs.
>TGR
[Things Gone WRONG/Things Gone RIGHT]
2-cent
candy
3-cent
lemon!
C
*Chief e
O*
Xperience Officer
We are the
company
we keep
The “Hang Out 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
“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
“How to flush
$500,000 down
the toilet in one
easy lesson!!”
TP:
< CAPEX
> People!
Brand =
Talent.
#8.1
Hire very
good
people!
“We believe companies can increase their market cap
50 percent in 3 years. Steve Macadam at Georgia-
Pacific …
changed
20 of his
40 box plant managers
to put more talented,
higher paid managers in
charge. He increased profitability from
$25
million to
$80
million in
—Ed Michaels, War for Talent
2
years.”
#8.2
PUT HR AT THE
HEAD OF THE HEAD
TABLE. BEST
PEOPLE. NOBLEST
MISSION.
#8.3
2/year =
legacy.
#8.4
#1 cause of
Dis-satisfaction?
Employee retention & satisfaction:
Overwhelmingly,
based on their
immediate manager!
Source: Marcus Buckingham & Curt Coffman, First, Break All
the Rules:
What the World’s Greatest Managers Do Differently
#8.5
‘do’
“Leaders
people.
Period.”
—Anon.
“The leaders of Great Groups
love talent and know
where to find it. They
revel in the talent
of others.”
—Warren Bennis &
Patricia Ward Biederman, Organizing Genius
PARC’s Bob Taylor:
“Connoisseur
of Talent”
(from Warren Bennis & Patricia Ward Biederman, Organizing Genius)
#8.6
“Leaders
‘SERVE’
people.
Period.”
—inspired by Robert Greenleaf
… 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.
EXCELLENCE.
BEDROCK.
LEADERSHIP.
THE 9Ps.
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“People want to be part of
something larger than
themselves. They want to be
part of something they’re
really proud of, that they’ll
fight for, sacrifice for ,
trust.”
—Howard Schultz, Starbucks (IBD/09.05)
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“I am a …
Dispenser of
Enthusiasm!”
—Ben Zander
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“The role of the Director is to create a
space where the actors and
become more
than they’ve ever been
before, more than
they’ve dreamed of
being.”
actresses can
—Robert Altman, Oscar acceptance speech
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
MBWA
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“You must
be
the change you
wish to see in the
world.”
Gandhi
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
Relentless: “One of
my superstitions had always been
when I started to go anywhere or
not to
turn back , or stop,
to do anything,
until the thing intended was
accomplished.” —Grant
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
‘do’
“Leaders
people.
Period.”
—Anon.
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“Do one thing
every day
that scares
you.”
—Eleanor Roosevelt
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
“[other]
admirals more
frightened of
losing than
anxious to win”
On NELSON:
PURPOSE.
PASSION.
Potential.
Presence.
Personal.
PERSISTENCE.
PEOPLE.
Potent.
Positive.
#10
“Excellence can be obtained if you:
... care more than others think
is wise;
... risk more than others think
is safe;
... dream more than others think
is practical;
... expect more than others think
is possible.”
Source: Anon. (Posted @ tompeters.com by
K.Sriram, November 27, 2006 1:17 AM)
Excellence Is
a Universal
Striving.
If Not Excellence,
What? If not
excellence now,
when?
Appendix
one
The “Have
you …” 50
“Mapping your
competitive
position”
or …
While waiting last week [early December 2007] in the Albany
airport to board a Southwest Airlines flight to Reagan, I
happened across the latest Harvard Business Review, on the
cover of which was a yellow sticker. The sticker had on it the
words “Mapping your competitive position.” It referred to a
feature article by my friend Rich D’Aveni. His work is uniformly
good—and I have said as much publicly on several occasions
dating back 15 years. I’m sure this article is good, too—though
I didn’t read it. In fact it triggered a furious negative “Tom
reaction” as my wife calls it. Of course I believe you should
But instead of
obsessing on competitive position and other
abstractions, as the B-schools and
consultants would always have us do, I
instead wondered about some “practical
stuff” which I believe is more important to
the short- and long-term health of the
enterprise, tiny or enormous.
worry about your “competitive position.”
“Unfortunately many
leaders of major
companies believe their
job is to create the
strategy, organization
and organization
processes—remaining
aloof from the people
doing the work.” —George
Kohlrieser, Hostage at the Table (GK is, among other things, a
hostage negotiator with a 95% success rate)
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.)
1. Have you in the
last 10 days …
visited a
customer?
2. Have you called
a customer …
TODAY?
Blog1231.07
FLASH!
FLASH!
FLASH!
FOR IMMEDIATE ACTION!
FOR IMMEDIATE ACTION!
FOR IMMEDIATE ACTION!
OLD YEAR’S RESOLUTION!
Call (C-A-L-L!) (NOT E-MAIL!) 25-50 (NO LESS THAN 25)
people … TODAY * …to thank them for their support this
year (2007) …
and wish them and their families and colleagues a
Happy 2008! ** *** **** ***** ******
*Today = TODAY = N-O-W (not “within the hour”)
**Remember: ROIR > ROI. ROIR = Return On Investment in Relationships.
Success = f(Relationships).
***This is the most important piece of advice I have provided this year.
****This is … Not Optional.
*****Trust me: This is fun!!!!
******Trust me: This “works.”
Happy 2008!!!
I posted this at
tompeters.com on New
Year’s Eve 2007.
11. Have you in the last two days had a chat with someone (a couple of levels down?) about
specific deadlines concerning a project’s next steps?
12. Have you in the last two days had a chat with someone (a couple of levels down?) about
specific deadlines concerning a project’s next steps … and what specifically you can do to
remove a hurdle? (“Ninety percent of what we call management consists of making it difficult for
people to get things done.”—Peter “His eminence” Drucker.)
13. Have you celebrated in the last week a “small” (or large!) milestone reached? (I.e., are you a
milestone fanatic?)
14. Have you in the last week or month revised some estimate in the “wrong” direction and
apologized for making a lousy estimate? (Somehow you must publicly reward the telling of
difficult truths.)
15. Have you installed in your tenure a very
comprehensive customer satisfaction scheme
for all internal customers? (With major consequences for hitting or
missing the mark.)
16. Have you in the last six months had a week-long, visible, very intensive visit-“tour” of external
customers?
17. Have you in the last 60 days called an abrupt halt to a meeting and “ordered” everyone to get
out of the office, and “into the field” and in the next eight hours, after asking those involved, fixed
(f-i-x-e-d!) a nagging “small” problem through practical action?
18. Have you in the last week had a rather thorough discussion of a “cool design thing” someone
has come across—away from your industry or function—at a Web site, in a product or its
packaging?
19. Have you in the last two weeks had an informal meeting—at least an hour long—with a
frontline employee to discuss things we do right, things we do wrong, what it would take to meet
your mid- to long-term aspirations?
20. Have you had in the last 60 days had a general meeting to discuss “things we do wrong” …
that we can fix in the next fourteen days?
UniCredit Group/
UniCredito Italiano* **
—3rd party measurement
—Customer-initiated
measurement
—Primary $$$$ incentives
—“Factories”
—Primary Corporate Initiative
—Etc
*#13
**TP/#1
The director of staff services
at the giant financial services
firm, UniCredit Group,
installed the most thorough
internal customer satisfaction
measures scheme I have
seen—with exceptional
rewards for those who make
the grade with their internal
customers.
21. Have you had in the last year a one-day, intense offsite with each (?) of your
internal customers—followed by a big celebration of “things gone right”?
22. Have you in the last week pushed someone to do some family thing that you fear
might be overwhelmed by deadline pressure?
23. Have you learned the names of the children of everyone who reports to you? (If
not, you have six months to fix it.)
24. Have you taken in the last month an interesting-weird outsider to lunch?
25. Have you in the last month invited an interesting-weird outsider to sit in on an
important meeting?
26. Have you in the last three days discussed something interesting, beyond your
industry, that you ran across in a meeting, reading, etc?
27. Have you in the last 24 hours injected into a meeting “I ran across this
interesting idea in [strange place]”?
28. Have you in the last two weeks asked someone to report on something, anything
that constitutes an act of brilliant service rendered in a “trivial” situation—
restaurant, car wash, etc? (And then discussed the relevance to your work.)
29. Have you in the last 30 days examined in detail (hour
by hour) your calendar to evaluate the degree “time
actually spent” mirrors your “espoused priorities”?
(And repeated this exercise with everyone on team.)
30. Have you in the last two months had a presentation to the group by a “weird”
outsider?
You = Your
calendar*
*Calendars
never lie
All we have is our time. The
way we spend our time is
our priorities, is our
“strategy.” Your calendar
knows what you really
care about. Do you?
31. Have you in the last two months had a presentation to the group by a customer,
internal customer, vendor featuring “working folks” 3 or 4 levels down in the vendor
organization?
32. Have you in the last two months had a presentation to the group of a cool,
beyond-our-industry ideas by two of your folks?
33. Have you at every meeting today (and forever more) re-directed the conversation
to the practicalities of implementation concerning some issue before the group?
34. Have you at every meeting today (and forever more) had an end-of-meeting
discussion on “action items to be dealt with in the next 4, 48 hours? (And then made
this list public—and followed up in 48 hours.) And made sure everyone has at least
one such item.)
35. Have you had a discussion in the last six months about what it would take to get
recognition in local-national poll of “best places to work”?
36. Have you in the last month approved a cool-different training course for one
of your folks?
Have you in the last month taught a front-line
training course?
37.
38. Have you in the last week discussed the idea of Excellence? (What it means, how
to get there.)
39. Have you in the last week discussed the idea of “Wow”? (What it means, how
to inject it into an ongoing “routine” project.)
40. Have you in the last 45 days assessed some major process in terms of the
details of the “experience,” as well as results, it provides to its external or internal
customers?
41. Have you in the last month had one of your folks attend a meeting you were supposed to go
to which gives them unusual exposure to senior folks?
42. Have you in the last 60 (30?) days sat with a trusted friend or “coach” to discuss your
“management style”—and its long- and short-term impact on the group?
43. Have you in the last three days considered a professional
relationship that was a little rocky and made a call to the person
involved to discuss issues and smooth the waters? (Taking the
“blame,” fully deserved or not, for letting the thing-issue fester.)
44. Have you in the last … two hours … stopped by someone’s (two-levels “down") officeworkspace for 5 minutes to ask “What do you think?” about an issue that arose at a more or
less just completed meeting? (And then stuck around for 10 or so minutes to listen—and
visibly taken notes.)
45. Have you … in the last day … looked around you to assess whether the diversity pretty
accurately maps the diversity of the market being served? (And …)
46. Have you in the last day at some meeting gone out of your way to make sure that a normally
reticent person was engaged in a conversation—and then thanked him or her, perhaps
privately, for their contribution?
47. Have you during your tenure instituted very public (visible) presentations of performance?
48. Have you in the last four months had a session specifically aimed at checking on the
“corporate culture” and the degree we are true to it—with all presentations by relatively junior
folks, including front-line folks? (And with a determined effort to keep the conversation
restricted to “real world” “small” cases—not theory.)
49. Have you in the last six months talked about the Internal Brand Promise?
50. Have you in the last year had a full-day off site to talk about individual (and group)
aspirations?
Appendix
TWO
Attending to the
“Last 98%”: The New
“Management
Science,” or “Hard”
Is “Soft,” “Soft”
Is “Hard”
Alternate title …
Attending to
the “Last 98%”:
flower power!
Tom Peters/17 April 2008
FLOWER
FLOWER
POWER
POWER
Hold in your mind the idea of “flower power”
—more to come!
S = ƒ( ___ )
Success Is a
Function of …
SF50: Success
Is a Function
of* ...
*What follows are not in fact true mathematical formulae—
obviously. Nonetheless, in tribute to my own scientific
background, and, more important, that of many seminar
participants, I have chosen this format—which seems to work
for those of “my ilk” to whom it has been exposed
SF50:
50 “Equations” on
achieving success
… at pretty much
anything
S = ƒ(#&DR; -2L, -3L, 4L, I&E)
Success is a function of: Number and depth of relationships
2, 3, and 4 levels down inside and outside the organization
S = ƒ(SD>SU)
Sucking down is more important than sucking up—the idea is
to have the [your] entire organization working for you.
S = ƒ(#non-FF, #non-FL)
Number of friends not in my function
S = ƒ(#XFL/m)
Number of lunches with colleagues in other
functions per month
S = ƒ(#FF)
Number of friends in the finance organization
Loser:
“He’s such a
suck-up!”
Winner:
“He’s such a
suck-down.”
Never*
waste a
lunch!
*More or less
S =ƒ(#PK“W”P)
S = ƒ(#PK“L”P)
# of people you know in the “wrong” places
# people you know in “low” places
It helps to know people in …
high
places!”
It helps
more
to know people in …
low
places!”
Gust Avarkotos’ “boiler room” CIA pals
Walter’s “enabler” P.M. Thank You notes
Flexirent’s XSec’s Customer PA lunches
Anybody’s XSec
Anybody’s PA
All customer Purchasing Dept receptionists
Secy Chaffee’s letter writer
McKinsey report prep staff
McKinsey research staff
Admiral’s Aide
Congressional Committee staff drafter
Congressman’s appropriate LA
Anybody in Finance
The previous entries are shorthand for stories about “low level”
relationships determining “high level” decisions—or at least having
surprising impact. Flexirent is an Australian consumer financial
services company. Its offerings are mostly made through
retailers—and following the “80-20 rule,” a small # of retailers
control a large share of Flexirent’s business. The Executive
Secretary-“PA” (Personal Assistant) to Flexirent’s CEO is a bright,
energetic, outgoing person. Along the way, and not accidentally,
she has developed very close relationships to the Pas of most of
the CEOs of Flexirent’s major customers. Among other things, she
more or less regularly (quarterly, roughly) takes her PA pals out
for lunch. The goal on both sides is clear, understood and
shameless—to enhance unvarnished communications among these
true “power players.” One can only imagine the number of times,
over, say, five years, that this “back channel” (“front Channel,” in
reality) has paved the way for success and staved off disasters.
The rest of the entries on the slide are of the same ilk.
S = ƒ(OF)
Number of oddball friends
S = ƒ(PDL)
Purposeful, deep listening—this is very hard
S = ƒ(“DSTM,” EH, TTAGFG)
Don’t shoot the messenger—embrace him! Truth-tellers are
gifts from God!
S = ƒ(#EODD3MC)
Number of end-of-the-day difficult (you’d rather avoid) “3minutecalls” that sooth raw feelings, mend fences, etc.
S = ƒ(UFP, UFK, OAPS)
Unsolicited favors performed, UFs involving co-workers’ kids,
overt acts politeness-solicitude toward co-workers’ spouses,
parents, etc.
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.
S= ƒ(TSHRO)
Time spent ... Hurdle Removing for Others
Peter Drucker once famously said, “Ninety-percent of
what we call ‘management’ consists of making it difficult
for people to get things done.” There is more than a grain
of truth to that. On the other side, and there can be an
“other side,” I see the manager’s principal role as
identifying things that get in people’s way (by asking
them!) and meticulously getting those things out of their
way. Thence, you could cal the boss the CIRO, or Chief
Impedance Reduction Officer, or my choice, CHR, Chief
Hurdle Remover. In any event the idea is that this is a/the
primary task the boss performs—and that it is a
systematic, pro-active affair (e.g., on the daily agenda).
S = ƒ(A#C, PTS/“OLC”, SAPA)
Absolute # of consultations, perception of being taken seriously
(Responsible for “one line of code”), small acts of public
appreciation
S = ƒ(1D)
Seeking the assignment of writing first drafts, minutes, etc. (1787)
S = ƒ(#SEAs)
Number of solid relationships with Executive Assistants
S = ƒ(%UL/w-m)
% useful lunches per week, month
S = ƒ(FG, FOC-BOF, CMO)
Favors given, favors owed collectively, balance of favors, conscious
management thereof
“Buy in”“Ownership”Authorial bragging
rights-“Born again”
Champion = One
Line of Code!
“It works this way, Tom. You’re talking to a guy who’s
important to implementation down where the rubber
meets the road. He’s skeptical—he either really is, or it’s
the act he chooses to play. You go over the thing with him
and he has a thousand objections. You nod your head a
lot, and take copious notes. Then you go back to your
guys, and you find a few places where you can very
specifically accommodate him. You make the changes,
even if they are pretty ugly. Then you go back to him,
and show him exactly what you’ve done. You have a
‘born again’ supporter. You took him seriously—and
through the changes, he’s now your co-inventor, your
savior. Now he’s doing the selling for you. Hey, the whole
damn thing wouldn’t have worked were it not for his
interjections—that’s the way he frames it to his folks. I
tell you, it never fails.”
Source: Australian IS-IT chief, mid-sized company in financial services
S = ƒ(SU)
Showing up (Woody Allen, Delaware’s ridiculous influence on the
Constitution of the USA)
S = ƒ(KSU, R)
Keep showing up; relentlessness (U.S. Grant!!)
S = ƒ(DW, TMSTTOG)
Drill wells, try more stuff than the other guy (John Masters, Mike
Bloomberg)
“Ninety percent
of success is
showing up.”
—Woody Allen
“This is so simple it sounds stupid, but it is amazing
how few oil people really understand that
you only find
oil if you drill
wells.
You may think you’re finding it
when you’re drawing maps and studying logs,
but you have to drill.”
Source: The Hunters, by John Masters, Canadian O & G wildcatter
S= ƒ(CM)
Conscious calendar management
(the calendar never lies)
You = Your
calendar*
*Calendars
never lie!
“You must
be the
change you wish to
see in the world.”
Gandhi
S = ƒ(CPRM, TS)
Conscious-planned Relationship management,
time spent thereon
R.O.I.R.
Far more important than “ROI”!
Return On
Investment In
Relationships
FYI:
“Relationship
power” =
“Monopoly
power”
The goal is clear—an “unfair” share of attention
from an internal staffer, a vendor, a customer.
We unabashedly pursue through good-betterbest relationships de facto monopoly—the
monopolization of other important folks’ love
and affection, as it were.
FYI:
“Sustainable
competitive
advantage” =
“Relationship-based
advantage”
(period.)
Some Resources: Relationships
The Manager’s Book of Decencies: How Small Gestures
Build Great Companies—Steve Harrison
Respect—Sara Lawrence-Lightfoot
Hostmanship: The Art of Making People Feel Welcome—
Jan Gunnarsson & Olle Blohm (leader as host to hisher employees)
The SPEED of Trust: The One Thing that Changes
Everything—Stephen M.R. Covey
The Dream Manager —Matthew Kelly
The Customer Comes Second: Put Your People First and
Watch ’Em Kick Butt—Hal Rosenbluth and Diane
McFerrin Peters (no relation—be delighted if she was)
Crucial Conversations—Kerry Patterson, Joseph Grenny,
Ron McMillan, Al Switzler
Crucial Confrontations —Kerry Patterson, Joseph
Grenny, Ron McMillan, Al Switzler
Influence: Science and Practice—Robert Cialdini
Emotional Intelligence: Why It Can Matter More
Than IQ—Daniel Goleman
A few of my favorite “reads” on this topic—
especially #1. The idea of “competitiveadvantage-through-decency” is extraordinary.
Of course, “we know this”—but to see it spelled
out this way may change the course of your
professional life.
S = ƒ(TN/d, FG/m, AA/d)
Thank you notes per Day, flowers given per Month, Acts of
Appreciation per Day
S = ƒ(WLHAO)
Willingness to laugh heartily at oneself
S = ƒ(PTA100%A“T”S, E“NMF, TTT)
Proactive, timely, 100% apologies for “tiny” screw-ups, even if not
my fault (it always takes two to tango)
S = ƒ(AMR, NBS-SG)
Acceptance of mutual responsibilities for all affairs, no blameshifting, scape-goating
S = ƒ(RP, PRP>>P)
Never forget, and act accordingly: Response to the screwupproblem and perception thereof is (far, far) more important
than the problem itself!
S = ƒ(APLSLFCT)
Awareness, perception of little snubs—and lightening fast
correction thereof
S= ƒ(RCV)
Reduced customer visits (& more time on internal “customer”
relationships—that allow us to deliver on customer promises)
S= ƒ(U“PIATI”)
Understanding … “Perception is all there is!”
S= ƒ(“EM”/NSTLT; “F”ITU, -80%)
“Everything matters”/No such thing as a “little thing”—etching of fly
in the urinal in Amsterdam airport reduces “spillage” by 80%
S= ƒ(A“L”IOE)
Attention to “little” Indicators Of Excellence—e.g. fresh flowers
at the reception desk
S= ƒ(“GGT”)
“Give good tea”—Ben Franklin in Paris in 1777, Norm Schwarzkopf
with the Saudi Crown Prince during Gulf War I; effectiveness at
socializing with the “power behind the throne”
Give
good
tea!*
*Norm S, Ben F
S = ƒ(TN/d, FG/m, AA/d)
Thank you notes per Day, flowers given per Month, Acts of
Appreciation per Day
S = ƒ(WLHAO)
Willingness to laugh heartily at oneself
S = ƒ(RP, PRP>>P)
Never forget, and act accordingly: Response to the screwupproblem and perception thereof is (far, far) more important
than the problem itself!
S = ƒ(APLSLFCT)
Awareness, perception of little snubs—and lightening fast
correction thereof
S= ƒ(3X“O”C)
“Over”-communicate (status, problems)
by a factor of three
THE PROBLEM IS RARELY/
THE
RESPONSE TO THE
PROBLEM INVARIABLY
ENDS UP BEING THE
REAL PROBLEM.
NEVER THE PROBLEM.
FLOWER
POWER
S = ƒ(Thank you notes
per Day, flowers
given per Month,
Acts of Appreciation
per Week)
“The deepest
human need is
the need to be
appreciated.”
William James
“Courtesies of a small and
trivial character are the
ones which strike
deepest in the grateful
and appreciating heart.”
—Henry Clay
S = ƒ(PTA100%A“T”S, E“NMF, TTT)
Proactive, timely, 100% apologies for “tiny” screw-ups, even if not
my fault (it always takes two to tango)
S = ƒ(AMR, NBS-SG)
Acceptance of mutual responsibilities for all affairs, no blameshifting, scape-goating
“I’m
really
sorry.”
Power phrase:
Amazing how rare this is—which of course
is why it’s so powerful.
“I
screwed
up.”
Power phrase:
S = ƒ(G)
Grace
S = ƒ(GA)
Grace toward adversary
S = ƒ(GW)
Grace toward the wounded in bureaucratic firefights
S = ƒ(PD)
Purposeful decency
S = ƒ(MB“TSS”MR)
Purposeful management of this Soft Stuff by people reporting
to me
S = ƒ(EC, MMO)
Emotional connection, mgt & maintenance of
S = ƒ(IMDOP)
Investment in Mastery of detailed organizational processes
“What I learned from my
years as a hostage negotiator
is that we do not have to feel
powerless—and that
bonding
is the antidote
to the hostage situation.”
—George Kohlrieser, Hostage at the Table (GK’s
negotiation success rate is
>95%)
S = ƒ(H-TS)
Time spent on Hiring
S = ƒ(TSPD, TSP-L1)
Time spent on promotion decisions, especially for 1st
level managers
S = ƒ(%“SS,” H-PD)
% soft stuff involved in Hiring, Promotion decisions
S = ƒ(%WLP)
% women in leadership positions
S = ƒ(TWA, P, NP)
Time wandering around, purposeful, non-planned
S = ƒ(SBS)
Slack built into Schedule
“AS LEADERS,
WOMEN
RULE:
New Studies find that
female managers outshine their male
counterparts in almost every measure”
TITLE/ Special Report/ BusinessWeek
Women’s Negotiating Strengths
*Ability to put themselves in their
counterparties’ shoes
*Comprehensive, attentive and detailed
communication style
*Empathy that facilitates trust-building
*Curious and attentive listening
*Less competitive attitude
*Strong sense of fairness and ability to persuade
*Proactive risk manager
*Collaborative decision-making
Source: Horacio Falcao, Cover story/May 2006, World Business, “Say It
Like a Woman: Why the 21st-century negotiator will need the female touch”
This “relationship stuff” comes naturally to
women (for starters, from the genes); and is
painfully difficult for many-most men.
“TAKE THIS QUICK QUIZ: Who manages more things
at once? Who puts more effort into their
appearance? Who usually takes care of the
details? Who finds it easier to meet new
people? Who asks more questions in a
conversation? Who is a better listener? Who
has more interest in communication skills?
Who is more inclined to get involved? Who
encourages harmony and agreement? Who has
better intuition? Who works with a longer ‘to
do’ list? Who enjoys a recap to the day’s
events? Who is better at keeping in touch
with others?”
Source: Selling Is a Woman’s Game: 15 Powerful Reasons Why
Women Can Outsell Men, Nicki Joy & Susan Kane-Benson
S = ƒ (%TM“TSS,”
PM“TSS,”
D“TD”“TSS”)
% of time, measured, on This Soft Stuff,
purposeful management of this Soft Stuff, daily
“to do” concerning “this Soft Stuff”
Q: But where’s
the beef?
A: This
is
the beef!
“The terms ‘hard facts,’
and ‘the soft stuff’ used
in business imply that
data are somehow real
and strong while
emotions are weak and
less important.”
—George Kohlrieser, Hostage at the Table
O(B) = ƒ(XX)
O(B), the “blueness” of one’s “ocean” [think Blue Ocean
Strategy, the popular book], is directly proportional to one’s
eXcellence in eXecution/XX, per me.
[If one finds a “strategic” “blue ocean,” one will, especially
in today’s world, copied immediately; the only “defense”—
possibility of sustaining success—is XX/eXcellence in
eXecution. Think EXXON MOBIL; they and their rivals know
where the hydrocarbons are—but EXXON MOBIL handily
out-executes the competition.]
“Equations” #48, #49 and #50 are more
about organizational effectiveness than
individual effectiveness—and thus round out
this brief presentation.
S(O) = ƒ(XXFX)
The single most important cause of failure to execute
effectively is the lack of effective cross-functional
communication-execution. Hence, Organizational Success is a
eXcellence (X) in crossfunctional (XF) eXecution (X). Attached
function of
as Appendix II is my: The “XF-50”: 50 Ways to Enhance CrossFunctional Effectiveness and Deliver Speed, “Service
Excellence” and “Value-added Customer ‘Solutions.’”
S(O) = ƒ(X“SIT”)
In 1982 in In Search of Excellence, Bob Waterman and I
wrote about the idea of “MBWA,” or Managing By Wandering
Around; we came across “MBWA” at Hewlett-Packard, then a
much smaller company, and it was love at first sight! For
reasons described in Appendix III, I recently returned to the
centrality of that notion—and created a list of 50 “Have
Yous.” That is, instead of worrying ceaselessly about
“strategy” and “blue oceans,” how good a job have you done
at Staying In Touch with your extended internal and
external “organizational family”? That is: S(O),
X “SIT,”
eXcellence at Staying In Touch.
Organizational Success, is a function of
Hard Is Soft
Soft Is Hard
Hard Is Soft (Plans, #s)
Soft Is Hard (people,
customers, values,
relationships))
“If I could have chosen not to tackle the IBM culture head-on, I
probably wouldn’t have. My bias coming in was toward strategy,
analysis and measurement. In comparison, changing the
attitude and behaviors of hundreds of thousands of people is
[Yet] I came to see in
my time at IBM that culture
isn’t just one aspect of the
very, very hard.
game —it is the
game.”
—Lou Gerstner,
Who Says Elephants Can’t Dance
The tough-minded Mr Gerstner became
a reluctant convert to the power of
this “soft stuff.”
FLOWER
FLOWER
POWER
POWER