LONGExcellence.Always. Housing Leadership Summit 2011 Hanley Wood Business Media Tom Peters/Chicago/23 May 2011 (Slides at tompeters.com)

LONGLONG

Excellence.Excellence.Always.Always.

Housing Leadership Summit 2011Housing Leadership Summit 2011Hanley Wood Business Media Hanley Wood Business Media

Tom Peters/Chicago/23 May 2011Tom Peters/Chicago/23 May 2011(Slides at tompeters.com)(Slides at tompeters.com)

NOTENOTE:: To appreciateTo appreciate this presentation this presentation [and [and

ensure that it is not a ensure that it is not a messmess],], you need Microsoft you need Microsoft

fonts:fonts:

“Showcard “Showcard Gothic,”Gothic,” “Ravie,”“Ravie,”

“Chiller”“Chiller” andand “Verdana”“Verdana”

Excellence.Excellence.Thriving in aThriving in a

VUCA VUCA Environment.Environment.

Housing Leadership Summit 2011Housing Leadership Summit 2011Hanley Wood Business Media Hanley Wood Business Media

Tom Peters/Chicago/23 May 2011Tom Peters/Chicago/23 May 2011(Slides at tompeters.com)(Slides at tompeters.com)

VVolatilityolatility

UUncertaintyncertainty

CComplexityomplexity

AAmbiguitymbiguity

Source: U.S. ArmySource: U.S. Army

""Barn's burnt Barn's burnt down … now I down … now I can see the can see the

moon."moon." —Masahide, Japanese poet—Masahide, Japanese poet

Purpose.Purpose.Excellence.Excellence.

Organizations Organizations existexist to to serveserve. .

Period.Period.

Leaders Leaders livelive to to serveserve. Period.. Period.

Excellence.Excellence. Always. Always.

If notIf not Excellence,Excellence, what?what?

If notIf not ExcellenceExcellence now, when?now, when?

Excellence1982: The Bedrock “EiExcellence1982: The Bedrock “Eigght Basics”ht Basics”

1. A Bias for 1. A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. 3. AutonomAutonomyy and and EntreEntreppreneurshireneurshipp4. Productivity Through 4. Productivity Through PeoPeopplele5. 5. Hands OnHands On, , Value-DrivenValue-Driven6. 6. Stick toStick to the Knitting the Knitting7. 7. SimSimpplele Form, Form, LeanLean Staff Staff8. Simultaneous 8. Simultaneous Loose-TightLoose-Tight Properties” Properties”

““Breakthrough” 82*Breakthrough” 82*

People! People! CustomersCustomers

! ! Action! Action! Values! Values!

**In Search of ExcellenceIn Search of Excellence

Epigraph/sEpigraph/s

““Business has to give Business has to give people enriching, people enriching, rewarding lives …rewarding lives … or it's simor it's simppllyy not not

worth doinworth doing.”g.” ——Richard BransonRichard Branson

The Memories The Memories That That MatterMatter..

The Memories That MatterThe Memories That Matter

The people you developed who went on toThe people you developed who went on to stellar accomplishments inside or outsidestellar accomplishments inside or outside the company.the company. The (no more than) two or three people you developed who went on The (no more than) two or three people you developed who went on toto create create stellar institutions of their own.stellar institutions of their own.The long shots (people with “a certain something”) you bet on whoThe long shots (people with “a certain something”) you bet on who surprised themselves—surprised themselves—andand your peers. your peers.

The people of all stripes who 2/5/10/20 yearsThe people of all stripes who 2/5/10/20 years later say later say “You made a difference in my “You made a difference in my life,”life,” “ “Your belief in me changed everything.”Your belief in me changed everything.”The sort of/character of people you hired in general. (The sort of/character of people you hired in general. (And And the bad the bad apples you chucked out despite some stellar traits.)apples you chucked out despite some stellar traits.)A handful of projects (a half dozen at most) you doggedly pursued A handful of projects (a half dozen at most) you doggedly pursued thatthat still make you smile and which fundamentally changed the waystill make you smile and which fundamentally changed the way things are done inside or outside the company/industry.things are done inside or outside the company/industry. The supercharged camaraderie of a handful of Great Teams aiming The supercharged camaraderie of a handful of Great Teams aiming toto “ “change the world.”change the world.”


Belly laughs at some of the stupid-insane things you and your Belly laughs at some of the stupid-insane things you and your matesmates tried.tried.Less than a closet full of “I should have …”Less than a closet full of “I should have …”

A frighteningly consistent record of having A frighteningly consistent record of having invariably said, invariably said, “Go for it!”“Go for it!”Not intervening in the face of considerable loss—recognizing that toNot intervening in the face of considerable loss—recognizing that to develop top talent means tolerating failures and allowing thedevelop top talent means tolerating failures and allowing the person who screwed up to work their own way through and out ofperson who screwed up to work their own way through and out of their self-created mess.their self-created mess.Dealing with one or more crises with particular/memorable aplomb.Dealing with one or more crises with particular/memorable aplomb.

Demanding … Demanding … CIVILITYCIVILITY … regardless of circumstances.… regardless of circumstances.Turning around one or two or so truly dreadful situations—andTurning around one or two or so truly dreadful situations—and watching almost everyone involved rise to the occasion (often towatching almost everyone involved rise to the occasion (often to their own surprise) and acquire a renewed sense of purpose in their own surprise) and acquire a renewed sense of purpose in thethe process.process.Leaving something behind of demonstrable-lasting worth. (On short Leaving something behind of demonstrable-lasting worth. (On short asas well as long assignments.)well as long assignments.)


Having almost always (99% of the time) put “Quality” and Having almost always (99% of the time) put “Quality” and “Excellence”“Excellence” ahead of “Quantity.” (At times an unpopular approach.)ahead of “Quantity.” (At times an unpopular approach.)A few “critical” instances where you stopped short and could haveA few “critical” instances where you stopped short and could have “ “done more”—but to have done so would have compromised your done more”—but to have done so would have compromised your andand your team’s character and integrity.your team’s character and integrity.A sense of time well and honorably spent.A sense of time well and honorably spent.The expression of “simple” human kindness and consideration—noThe expression of “simple” human kindness and consideration—no matter how harried you may be/may have been.matter how harried you may be/may have been.Understood that your demeanor/expression of character always setUnderstood that your demeanor/expression of character always set the tone—especially in difficult situations. the tone—especially in difficult situations. Never (rarely) let your external expression of enthusiasm/ Never (rarely) let your external expression of enthusiasm/ determination flag—the rougher the times, the more your determination flag—the rougher the times, the more your expressedexpressed energy and bedrock optimism and sense of humor showed.energy and bedrock optimism and sense of humor showed.

The respect of your peers.The respect of your peers.A stoic unwillingness to badmouth others—even in private.A stoic unwillingness to badmouth others—even in private.


An invariant creed: When something goes amiss, An invariant creed: When something goes amiss, “The buck stops with“The buck stops with meme”; when something goes right, it was ”; when something goes right, it was their their doing, not yours.doing, not yours.

A Mandela-like “naïve” belief that others willA Mandela-like “naïve” belief that others will rise to the occasion if given the opportunity.rise to the occasion if given the opportunity.A reputation for eschewing the “trappings of power.” (Strong self-A reputation for eschewing the “trappings of power.” (Strong self- management of tendencies toward arrogance or dismissiveness.)management of tendencies toward arrogance or dismissiveness.)Intense, even “driven” … but not to the point of being careless of Intense, even “driven” … but not to the point of being careless of othersothers in the process of forging ahead.in the process of forging ahead.Willing time and again to be surprised by ways of doing things that Willing time and again to be surprised by ways of doing things that areare inconsistent with your “certain hypotheses.”inconsistent with your “certain hypotheses.”

Humility in the face of others, at every level, Humility in the face of others, at every level, who know more than you about “the waywho know more than you about “the way things really are.”things really are.”Bit your tongue on a thousand occasions—and Bit your tongue on a thousand occasions—and listened, listened, reallyreally really really listened. (And listened. (And been constantly delighted when, as a result, been constantly delighted when, as a result, youyou invariablyinvariably learned something new and learned something new and invariablyinvariably increased your increased your connection with the speaker.)connection with the speaker.)


Unalloyed pleasure in being informed of the fallaciousness of yourUnalloyed pleasure in being informed of the fallaciousness of your beliefs by someone 15 years your junior and several rungs below beliefs by someone 15 years your junior and several rungs below youyou on the hierarchical ladder. on the hierarchical ladder. Selflessness. (A sterling reputation as “a guy always willing to help Selflessness. (A sterling reputation as “a guy always willing to help outout with alacrity despite personal cost.”)with alacrity despite personal cost.”)As thoughtful and respectful, or more so, toward thine “enemies” asAs thoughtful and respectful, or more so, toward thine “enemies” as toward friends and supporters.toward friends and supporters.

Always and relentlessly put at the top of your list/any Always and relentlessly put at the top of your list/any list being first and foremost list being first and foremost “of service”“of service” to your to your internal and external constituents. internal and external constituents. (Employees/Peers/(Employees/Peers/ Customers/Vendors/Community.)Customers/Vendors/Community.)Treated the term “servant leadership” as holy writ. (And Treated the term “servant leadership” as holy writ. (And “preached”“preached” “ “servant leadership” to others—new “non-managerial” hire or oldservant leadership” to others—new “non-managerial” hire or old pro, age 18 or 48.)pro, age 18 or 48.)


Created the sort of workplaces you’d like your kids toCreated the sort of workplaces you’d like your kids to inhabit. (Explicitly conscious of this “Would I want inhabit. (Explicitly conscious of this “Would I want mymy kids to work here?” litmus test.)kids to work here?” litmus test.)A “certifiable” “nut” about quality and safety and integrity. (More A “certifiable” “nut” about quality and safety and integrity. (More oror less regardless of any costs.)less regardless of any costs.)A notable few circumstances where you resigned rather thanA notable few circumstances where you resigned rather than compromise your bedrock beliefs.compromise your bedrock beliefs.Perfectionism just short of the paralyzing variety.Perfectionism just short of the paralyzing variety.

A self- and relentlessly enforced group standard of A self- and relentlessly enforced group standard of “ “EXCELLENCE-in-all-we-do”/“EXCELLENCE in ourEXCELLENCE-in-all-we-do”/“EXCELLENCE in our behavior toward one another.”behavior toward one another.”

““In a way, the world is a great liar. In a way, the world is a great liar. It shows you it worships and admires It shows you it worships and admires money, but at the end of the day it money, but at the end of the day it doesn’t. It says it adores fame and doesn’t. It says it adores fame and

celebrity, but it doesn’t, not really. The celebrity, but it doesn’t, not really. The world admires, and wants to hold on to, world admires, and wants to hold on to,

and not lose, goodness. It admires virtue. and not lose, goodness. It admires virtue. At the end it gives its greatest tributes to At the end it gives its greatest tributes to

generosity, honesty, courage, mercy, generosity, honesty, courage, mercy, talents well used, talents that, brought talents well used, talents that, brought

into the world, make it better. That’s what into the world, make it better. That’s what it really admires. That’s what we talk about it really admires. That’s what we talk about

in eulogies, because that’s what’s in eulogies, because that’s what’s important. We don’t say, ‘The thing about important. We don’t say, ‘The thing about Joe was he was rich!’ We say, if we can … Joe was he was rich!’ We say, if we can …

“ … “ … We say, if we can …We say, if we can …

‘‘The thing about The thing about Joe was he took Joe was he took

good care of good care of people.’”people.’”

——Peggy Noonan, “A Life’s Lesson,” on the astounding response to the passing of Tim RussertPeggy Noonan, “A Life’s Lesson,” on the astounding response to the passing of Tim Russert ,, The Wall Street Journal, The Wall Street Journal, June 21-22, 2008June 21-22, 2008

Sam S. Smith Sam S. Smith 1942 – 2011 1942 – 2011

Net WorthNet Worth

$27,543,672.48$27,543,672.48

Not.

““At a party …At a party …

““At a party given by a billionaire At a party given by a billionaire on Shelter Island, Kurt Vonnegut on Shelter Island, Kurt Vonnegut

informs his pal, Joseph Heller, informs his pal, Joseph Heller, that their host, a hedge fund that their host, a hedge fund

manager, had made more money manager, had made more money in a single day than Heller had in a single day than Heller had earned from his wildly popular earned from his wildly popular novel novel Catch-22Catch-22 over its whole over its whole

history. Heller responds …history. Heller responds …

““At a party given by a billionaire on Shelter Island, Kurt Vonnegut At a party given by a billionaire on Shelter Island, Kurt Vonnegut informs his pal, Joseph Heller … that their host, a hedge fund informs his pal, Joseph Heller … that their host, a hedge fund

manager, had made more money in a single day than Heller had manager, had made more money in a single day than Heller had earned from his wildly popular novel earned from his wildly popular novel Catch-22Catch-22 over its whole over its whole

history. Heller responds …history. Heller responds … ‘Yes, but I ‘Yes, but I have something have something

he will never he will never have …have …

Source: John Bogle, Source: John Bogle, Enough. The Measures of Money, Business, Enough. The Measures of Money, Business, and Lifeand Life (Bogle is founder of the Vanguard Mutual Fund Group) (Bogle is founder of the Vanguard Mutual Fund Group)

At a party given by a billionaire on Shelter Island, At a party given by a billionaire on Shelter Island, Kurt Vonnegut informs his pal, Joseph Heller … that Kurt Vonnegut informs his pal, Joseph Heller … that their host, a hedge fund manager, had made more their host, a hedge fund manager, had made more money in a single day than Heller had earned from his money in a single day than Heller had earned from his wildly popular novel wildly popular novel Catch-22Catch-22 over its whole history. over its whole history. Heller responds … Yes, but I have something he will Heller responds … Yes, but I have something he will never have … never have …

enough.enough. Source: John Bogle, Source: John Bogle, Enough. The Measures of Money, Business, and Enough. The Measures of Money, Business, and LifeLife (Bogle is founder of the Vanguard Mutual Fund Group) (Bogle is founder of the Vanguard Mutual Fund Group)

““Too Much Cost, Not Enough Value”Too Much Cost, Not Enough Value”““Too Much Speculation, Not Enough Too Much Speculation, Not Enough

Investment”Investment”““Too Much Complexity, Not Enough Simplicity”Too Much Complexity, Not Enough Simplicity”

““Too Much Counting, Not Enough Trust”Too Much Counting, Not Enough Trust”““Too Much Business Conduct, Not Enough Too Much Business Conduct, Not Enough

Professional Conduct”Professional Conduct”““Too Much Salesmanship, Not Enough Too Much Salesmanship, Not Enough

Stewardship”Stewardship”““Too Much Focus on Things, Not Enough Focus Too Much Focus on Things, Not Enough Focus

on Commitment”on Commitment”““Too Many Twenty-first Century Values, Not Too Many Twenty-first Century Values, Not

Enough Eighteenth-Century Values”Enough Eighteenth-Century Values”““Too Much ‘Success,’ Not Enough Character”Too Much ‘Success,’ Not Enough Character”

Source: Chapter titles from Jack Bogle, Source: Chapter titles from Jack Bogle, Enough. Enough.

Passion.Passion.

The greatest dangerThe greatest dangerfor most of usfor most of us

is not that our aim isis not that our aim istoo hightoo high

and we miss it,and we miss it,but that it isbut that it is

too lowtoo lowand we reach it.and we reach it.

MichelangeloMichelangelo

On ADMIRAL HORATIO NELSON*:On ADMIRAL HORATIO NELSON*: “[other] “[other] admirals more admirals more frightened of frightened of losing than losing than

anxious to win”anxious to win”*Andrew Lambert,*Andrew Lambert, Nelson: Britannia’s God of War Nelson: Britannia’s God of War

!!

In Search of In Search of ExcellenceExcellenceA A PassionPassion for Excellence for Excellence

Thriving on Thriving on Chaos Chaos LiberationLiberation Management Management

Crazy Crazy Times Call for Crazy OrganizationsTimes Call for Crazy OrganizationsThe Pursuit of The Pursuit of WOWWOW! !

You Can’t Shrink Your Way to You Can’t Shrink Your Way to GreatnessGreatnessReRe--imagineimagine! !

On Stage.On Stage.

2255

MBWMBWAA

Managing By Wandering Around/Managing By Wandering Around/HPHP

““A leader is A leader is a a dealer in dealer in hope.” hope.” —Napoleon—Napoleon

"If your actions "If your actions inspire others to inspire others to

dream more, learn dream more, learn more, do more and more, do more and become more, you become more, you

are a leader."are a leader."

— —John Quincy AdamsJohn Quincy Adams

Half-full Cups:Half-full Cups: “[Ronald “[Ronald Reagan] radiated an Reagan] radiated an almostalmost transcendent transcendent

hahappppinessiness.”.” —Lou Cannon, Reagan biographer—Lou Cannon, Reagan biographer

“A man without A man without a smiling face a smiling face

must not open a must not open a shop.”shop.” —Chinese Proverb

““It’s It’s alwaalwayyss showtime.”showtime.”

—David D’Alessandro, Career Warfare

““You’ve got to You’ve got to be able to see be able to see the beauty in a the beauty in a

hamburger hamburger bun.”bun.” —Ray Kroc—Ray Kroc

Ear power. Ear power.

““The doctor The doctor interruptsinterrupts after …*after …*

*Source: Jerome Groopman, *Source: Jerome Groopman, How Doctors ThinkHow Doctors Think

18 18 ……

18 … 18 … secondsseconds!!

[An [An obsessionobsession with] Listening is ... the ultimate mark with] Listening is ... the ultimate mark

of of RespectRespect..

Listening is ... the heart and soul of Listening is ... the heart and soul of EngagementEngagement..Listening is ... the heart and soul of Listening is ... the heart and soul of KindnessKindness..Listening is ... the heart and soul of Listening is ... the heart and soul of ThoughtfulnessThoughtfulness..Listening is ... the basis for true Listening is ... the basis for true CollaborationCollaboration..Listening is ... the basis for true Listening is ... the basis for true PartnershipPartnership..Listening is ... a Listening is ... a Team SportTeam Sport..Listening is ... a Listening is ... a Developable Individual SkillDevelopable Individual Skill.* .* (*Though women (*Though women are are farfar better at it than men.) better at it than men.)

Listening is ... the basis forListening is ... the basis for CommunityCommunity..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures that workJoint Ventures that work..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures thatJoint Ventures that growgrow..Listening is ... the core of Listening is ... the core of effective Cross-functional effective Cross-functional CommunicationCommunication* * (*Which is in turn Attribute #1 of (*Which is in turn Attribute #1 of organizational effectiveness.)organizational effectiveness.)

[cont.][cont.]

Listening is ... the engine of Listening is ... the engine of superior superior EXECUTIONEXECUTION..Listening is ... the key to Listening is ... the key to making the making the SaleSale..Listening is ... the key to Listening is ... the key to Keeping the Customer’s BusinessKeeping the Customer’s Business..Listening is ... Listening is ... ServiceService..Listening is ... the engine of Listening is ... the engine of Network developmentNetwork development..Listening is ... the engine of Listening is ... the engine of Network maintenanceNetwork maintenance..Listening is ... the engine of Listening is ... the engine of Network expansionNetwork expansion..Listening is ... Listening is ... Social Networking’s “secret weapon.”Social Networking’s “secret weapon.”Listening is ... Listening is ... LearningLearning..Listening is ... the Listening is ... the sine qua non of sine qua non of RenewalRenewal..Listening is ... the Listening is ... the sine qua non of sine qua non of CreativityCreativity..Listening is ... the Listening is ... the sine qua non of sine qua non of InnovationInnovation..Listening is ... the core of Listening is ... the core of taking diverse opinions aboardtaking diverse opinions aboard..Listening is ... Listening is ... StrategyStrategy..Listening is ... Listening is ... Source #1 of “Value-addedSource #1 of “Value-added.”.”Listening is ... Listening is ... Differentiator #1Differentiator #1..Listening is ... Listening is ... ProfitableProfitable.*.* (*The “R.O.I.” from listening is higher than(*The “R.O.I.” from listening is higher than from any other single activity.)from any other single activity.)

Listening is … the bedrock which underpins a Listening is … the bedrock which underpins a Commitment toCommitment to EXCELLENCEEXCELLENCE

*Listening is of the*Listening is of the

utmost … utmost … strategic importance! importance!

*Listening is a proper … *Listening is a proper …

core value ! !

*Listening is … *Listening is … trainable !!

*Listening is a … *Listening is a … profession ! !

Best Listeners Win …Best Listeners Win …

““if you don’t if you don’t listen, you don’t listen, you don’t sell anything.”sell anything.”

——Carolyn MarlandCarolyn Marland

K = R = PK = R = P

““Courtesies of a small Courtesies of a small and trivial character are and trivial character are

the ones which strike the ones which strike deepest in the grateful deepest in the grateful

and appreciating heart.”and appreciating heart.”

—Henry Clay,American Statesman (1777-1852)

Press Ganey AssocPress Ganey Assoc:: 139,380139,380 former former patients from patients from 225225 hospitals: hospitals:

nonenone of THE top 15 factors of THE top 15 factors

determining determining PPatient atient SSatisfaction atisfaction referred to patient’s health referred to patient’s health outcomeoutcome..

Instead:Instead: directldirectly related to y related to StaffStaff Interaction;Interaction; directldirectly correlated with y correlated with

EmploEmployyee Satisfactionee Satisfaction

Source: Source: Putting Patients FirstPutting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel, Susan Frampton, Laura Gilpin, Patrick Charmel

“There is a misconception that supportive interactions require There is a misconception that supportive interactions require more staff or more time and are therefore more costly. more staff or more time and are therefore more costly.

Although labor costs are a substantial part of any hospital Although labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget, the interactions themselves add nothing to the

budget. budget. Kindness is Kindness is freefree.. Listening to patients or answering Listening to patients or answering

their questions costs nothing. It can be argued that negative their questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive tointeractions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very their needs or limiting their sense of control—can be very costly. … Angry, frustrated or frightened patients may be costly. … Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring farcombative, withdrawn and less cooperative—requiring far more time than it would have taken to interact with them more time than it would have taken to interact with them

initially in a positive way.”initially in a positive way.”

Source: Source: Putting Patients FirstPutting Patients First, Susan Frampton, , Susan Frampton, Laura Gilpin, Patrick CharmelLaura Gilpin, Patrick Charmel

(Griffin Hospital/Derby CT; Planetree Alliance) (Griffin Hospital/Derby CT; Planetree Alliance)

K = R = K = R = PP

Kindness = Kindness = Repeat Business Repeat Business

== Profit.Profit.

K = R = P/Kindness = Repeat business = ProfitK = R = P/Kindness = Repeat business = Profit

Kindness:Kindness:

Kind.Kind.Thoughtful.Thoughtful.Decent. Decent. Caring. Caring. Attentive.Attentive.Engaged.Engaged.Listens well/obsessively.Listens well/obsessively.Appreciative.Appreciative.Open.Open.Visible.Visible.Honest.Honest.Responsive.Responsive.On time all the time.On time all the time.Apologizes with dispatch for screw-ups.Apologizes with dispatch for screw-ups.““Over”-reacts to screw-ups of any magnitude.Over”-reacts to screw-ups of any magnitude.““Professional” in all dealings.Professional” in all dealings.Optimistic.Optimistic.Understands that kindness to staff breeds kindness to Understands that kindness to staff breeds kindness to others/outsiders.others/outsiders.Applies throughout the “supply chain.”Applies throughout the “supply chain.”Applies to 100% of customer’s staff.Applies to 100% of customer’s staff.Explicit part of values statement.Explicit part of values statement.Basis for evaluation of 100% of our staff.Basis for evaluation of 100% of our staff.

““We look for ... We look for ... listening, caring, listening, caring, smiling, saying smiling, saying

‘Thank you,’ being ‘Thank you,’ being warm.”warm.”

— Colleen Barrett, former President, Southwest Airlines— Colleen Barrett, former President, Southwest Airlines

"Appreciative words are "Appreciative words are the most powerful forcethe most powerful force

for good on earth.”for good on earth.”——George W. Crane, physician, columnistGeorge W. Crane, physician, columnist

““The two most powerful The two most powerful things in existence: things in existence: a kind word and a a kind word and a

thoughtful gesture.” thoughtful gesture.” ——Ken Langone, co-founder, Home DepotKen Langone, co-founder, Home Depot

““I regard I regard aappoloologgizinizing as the g as the most magical, healing, most magical, healing,

restorative gesture human restorative gesture human beings can make. It is the beings can make. It is the

centercenterppieceiece of my work with of my work with executives who want to get executives who want to get better.”better.” —Marshall Goldsmith—Marshall Goldsmith, What Got You , What Got You

Here Won’t Get You There: How Successful People BecomeHere Won’t Get You There: How Successful People Become Even More Successful. Even More Successful.

With a new and forthcoming policy on apologies …With a new and forthcoming policy on apologies … Toro, Toro, the lawn mower folks, reduced the the lawn mower folks, reduced the average cost of settling a claim from average cost of settling a claim from $$115,000115,000 in 1991 to $ in 1991 to $35,00035,000 in 2008— in 2008—and the company hasn’t been to trial and the company hasn’t been to trial in the last in the last 1515 y yearsears! ! The VA hospital in Lexington, Massachusetts, developed an The VA hospital in Lexington, Massachusetts, developed an approach, totally uncharacteristic in healthcare, to approach, totally uncharacteristic in healthcare, to apologizing for errors—even when no patient request or apologizing for errors—even when no patient request or

claim was madeclaim was made.. In 2000, the systemic mean In 2000, the systemic mean VA hospital malpractice settlement VA hospital malpractice settlement throughout the United States was throughout the United States was $$413,000413,000; the Lexington VA hospital ; the Lexington VA hospital settlement number was $settlement number was $36,00036,000 ——and and there were far fewer per patient claims to begin with.)there were far fewer per patient claims to begin with.)

Source: John Kador, Source: John Kador, Effective ApologyEffective Apology

““Keep a short Keep a short

enemies list. enemies list. One enemy can do can do

more damage than the good done than the good done

by by a hundreda hundred friendsfriends.”.”

——Bill Walsh (from Bill Walsh (from The Score Takes Care of ItselfThe Score Takes Care of Itself))

““One of the secrets of One of the secrets of a long and fruitful life a long and fruitful life

is to forgive everybody is to forgive everybody of everything every of everything every night right before night right before

going to bed.”going to bed.” —Bernard Baruch—Bernard Baruch

““It’s a ‘simple’ It’s a ‘simple’ fact. Many people fact. Many people will remember a will remember a ‘simple’ sleight‘simple’ sleight for decades! for decades!

Beware!”Beware!” —consumer goods exec—consumer goods exec

““When dealing with people, When dealing with people, remember you are not remember you are not

dealing with creatures of dealing with creatures of logic, but with creatures of logic, but with creatures of emotion, creatures bristling emotion, creatures bristling

with prejudice and with prejudice and motivated by pride and motivated by pride and

vanity.”vanity.” —Dale Carnegie (from —Dale Carnegie (from Timeless WisdomTimeless Wisdom, ,

compiled by Gary Fenchuk) compiled by Gary Fenchuk)

““Berezovsky … came under attack from the newlyBerezovsky … came under attack from the newly powerful Primakov, and was shunned by most of thepowerful Primakov, and was shunned by most of the

political elitepolitical elite. . Putin made a Putin made a ppoint of oint of attendinattendingg Berezovsk Berezovskyy’s wife’s ’s wife’s

birthdabirthdayy part party. Berezovsky repaid y. Berezovsky repaid Putin by championing his Putin by championing his

candidacy to run the F.S.B., candidacy to run the F.S.B., Russia’s secret police, formerly the Russia’s secret police, formerly the

K.G.B., and ultimately by K.G.B., and ultimately by suggesting that the Family make suggesting that the Family make

him president.him president. To sum up, the man’s qualifications To sum up, the man’s qualifications were: he did not take a bribe from a car dealership and had were: he did not take a bribe from a car dealership and had been unafraid to go to a party for an acquaintance who had been unafraid to go to a party for an acquaintance who had

fallen into disfavor.”fallen into disfavor.” —”Dead Soul,” —”Dead Soul,” Vanity FairVanity Fair, October 2008, October 2008

Never Never everever everever badmouth a badmouth a

competitor or rival—competitor or rival—it diminishes the it diminishes the attacker far more attacker far more than the target! than the target!

Relationships (of all varieties): THERE THERE ONCE WAS A TIME WHEN A ONCE WAS A TIME WHEN A

THREETHREE--MINUTEMINUTE PHONEPHONE CALLCALL WOULD HAVE AVOIDED WOULD HAVE AVOIDED

SETTING OFF THE DOWNWARD SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A SPIRAL THAT RESULTED IN A

COMPLETE RUPTURE.COMPLETE RUPTURE.**

*divorce, loss of a BILLION $$$ aircraft sale, etc., etc.*divorce, loss of a BILLION $$$ aircraft sale, etc., etc.

THE PROBLEM IS THE PROBLEM IS RARELY/RARELY/NEVERNEVER THE THE

PROBLEM. THEPROBLEM. THE

RESPONSERESPONSE TO THE TO THE PROBLEM INVARIABLY PROBLEM INVARIABLY ENDS UP BEING THE ENDS UP BEING THE

REAL PROBLEMREAL PROBLEM.***PERCEPTION IS ALL THERE IS!PERCEPTION IS ALL THERE IS!

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

Hard Is Hard Is SoftSoft (Plans, (Plans, ##ss))

Soft Is Soft Is HardHard (people, (people, customers, values, customers, values,

relationships)relationships)

R.O.I.R. R.O.I.R. >>>>

R.O.I.R.O.I.

RReturn eturn OOn n

IInvestment In nvestment In

RRelationshipselationships

““Allied commands depend Allied commands depend on mutual confidence, on mutual confidence, and this confidence is and this confidence is

gained, above all gained, above all through the through the develodeveloppmentment

ofof friendshifriendshippss.”.”

——General D.D. Eisenhower, General D.D. Eisenhower, Armchair GeneralArmchair General* (05.08)* (05.08)

*“Perhaps his most outstanding ability [at West Point]*“Perhaps his most outstanding ability [at West Point] was the ease with which he was the ease with which he made friends and earned the made friends and earned the

trusttrust of fellow cadets who came from widely varied backgrounds; it of fellow cadets who came from widely varied backgrounds; it was a quality that would pay great dividends during his was a quality that would pay great dividends during his

future coalition command.”future coalition command.”

People powerPeople power

““You have to You have to treat your treat your

employees like employees like customers.”customers.” —Herb —Herb

Kelleher, upon being asked his “secret to success”Kelleher, upon being asked his “secret to success”

Source: Joe Nocera, Source: Joe Nocera, NYTNYT, “Parting Words of an Airline Pioneer,” , “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at on the occasion of Herb Kelleher’s retirement after 37 years at

Southwest Airlines Southwest Airlines (SWA’s pilots union took out a full-page ad in USA (SWA’s pilots union took out a full-page ad in USA Today Today

thanking HK for all he had done) thanking HK for all he had done) ; across the way in Dallas, American ; across the way in Dallas, American Airlines’ pilots were Airlines’ pilots were picketingpicketing AA’s Annual Meeting)AA’s Annual Meeting)

"If you want staff to "If you want staff to give great service, give great service, give great service to give great service to staff."staff." —Ari Weinzweig, Zingerman's

““A Nice Place to Work”A Nice Place to Work”

““Some of our people spend their Some of our people spend their entire working lives in our agency. entire working lives in our agency. We do our damnedest to make it a We do our damnedest to make it a happy experience. I put this happy experience. I put this firstfirst, ,

believing that superior service to our believing that superior service to our clients, and profits for our clients, and profits for our

stockholders, depend on it. …”stockholders, depend on it. …”

——David Ogilvy, on Ogilvy & Mather’s corporate cultureDavid Ogilvy, on Ogilvy & Mather’s corporate culture

Happy experience:Happy experience: “I “I put this put this first.”first.”

““We are a We are a ‘‘LiLiffee

SuccessSuccess’ ’ Company.”Company.”

Dave Liniger, founder, RE/MAX

Brand Brand = =

Talent.Talent.

Our Mission

To develop and manage To develop and manage talent;talent;

to apply that talent,to apply that talent,throughout the world, throughout the world,

for the benefit of clients;for the benefit of clients;to do so in partnership; to do so in partnership;

to do so with profit.to do so with profit.

WPP

Oath of Office:Oath of Office: Managers/Servant Leaders Managers/Servant Leaders

Our goal is to serve our customers brilliantly and profitably overOur goal is to serve our customers brilliantly and profitably over the long haul.the long haul.Serving our customers brilliantly and profitably over the longServing our customers brilliantly and profitably over the long haul is a product of brilliantly serving, over the long haul, thehaul is a product of brilliantly serving, over the long haul, the people who serve the customer.people who serve the customer.

Hence, our Hence, our jjob as leadersob as leaders——the althe alppha and the omeha and the omegga anda and evereveryythinthingg in between in between——is abettinis abettingg the sustained the sustained ggrowthrowth and success and enand success and enggaaggement and enthusiasm andement and enthusiasm and commitment to Excellence of those, one at a time, commitment to Excellence of those, one at a time, whowho directldirectlyy or indirectl or indirectly y serve the ultimate customerserve the ultimate customer..

We—leaders of every stripe—are in the “Human Growth andWe—leaders of every stripe—are in the “Human Growth and Development and Success and Aspiration to ExcellenceDevelopment and Success and Aspiration to Excellence business.”business.”““We” We” [leaders][leaders] only grow when “they” only grow when “they” [each and every one of our colleagues][each and every one of our colleagues] are are growing.growing.““We” We” [leaders][leaders] only succeed when “they” only succeed when “they” [each and every one of our colleagues][each and every one of our colleagues]

are succeeding.are succeeding.““We” We” [leaders][leaders] only energetically march toward Excellence when only energetically march toward Excellence when “ “they” they” [each and every one of our colleagues][each and every one of our colleagues] are energetically marching are energetically marching toward Excellence.toward Excellence.Period.Period.

““I didn’t have a ‘mission I didn’t have a ‘mission statement’ at Burger King. I had statement’ at Burger King. I had

a dream. Very simple. It was a dream. Very simple. It was something like, something like, ‘‘BurBurgger Kiner Kingg is is 250,000 250,000 ppeoeopple, everle, everyy one of one of

whom whom ggives a shitives a shit.’.’ Every Every one. Accounting. Systems. Not one. Accounting. Systems. Not

just the drive through. Everyone just the drive through. Everyone is ‘in the brand.’ That’s what is ‘in the brand.’ That’s what we’re talking about, nothing we’re talking about, nothing

less.”less.”— Barry Gibbons— Barry Gibbons

7 Steps to Sustaining Success7 Steps to Sustaining Success

You take care of the people. You take care of the people. The people take care of the service. The people take care of the service. The service takes care of the customer.The service takes care of the customer.The customer takes care of the profit. The customer takes care of the profit. The profit takes care of the re-investment.The profit takes care of the re-investment.The re-investment takes care of the re-invention. The re-investment takes care of the re-invention. The re-invention takes care of the future.The re-invention takes care of the future.(And at every step the only measure is EXCELLENCE.)(And at every step the only measure is EXCELLENCE.)

7 Steps to Sustaining Success7 Steps to Sustaining Success

You take care of the people. You take care of the people. The people take care of the service. The people take care of the service. The service takes care of the customer.The service takes care of the customer.The customer takes care of the profit. The customer takes care of the profit. The profit takes care of the re-investment.The profit takes care of the re-investment.The re-investment takes care of the re-invention. The re-investment takes care of the re-invention. The re-invention takes care of the future.The re-invention takes care of the future.(And at every step the only measure is EXCELLENCE.)(And at every step the only measure is EXCELLENCE.)

““The The ONEONE Question”: Question”: “In the last year [3 years, current job], “In the last year [3 years, current job],

name the … name the … threethree ppeoeopplele … whose growth you’ve … whose growth you’ve

most contributed to. Please explain where they were at the most contributed to. Please explain where they were at the beginning of the year, where they are today, and where they are beginning of the year, where they are today, and where they are heading in the next 12 months. heading in the next 12 months. Please explain … in painstakingPlease explain … in painstaking

detail … your development strategy in each case. detail … your development strategy in each case. Please tell me Please tell me your biggest development disappointment—looking back, could you your biggest development disappointment—looking back, could you or would you have done anything differently? Please tell me about or would you have done anything differently? Please tell me about your greatest development triumph—and disaster—in the last five your greatest development triumph—and disaster—in the last five

years. What are the ‘three big things’ you’ve learned about helping years. What are the ‘three big things’ you’ve learned about helping

people grow along the way?”people grow along the way?”

AndrewAndrew CarneCarneggieie’s Tombstone Inscription …’s Tombstone Inscription …

Here lies a manHere lies a manWho knew how to enlistWho knew how to enlist

In his serviceIn his serviceBetter men than himself.Better men than himself.

Source: Peter Drucker, Source: Peter Drucker, The Practice of ManagementThe Practice of Management

““The leaders of Great The leaders of Great

Groups … Groups … lovelove talent talent … and know where to find … and know where to find

it. They … it. They … revelrevel inin …… the talent of the talent of

others.”others.” —Warren Bennis & Patricia Ward —Warren Bennis & Patricia Ward

Biederman, Biederman, Organizing GeniusOrganizing Genius

Les WexnerLes Wexner:: From From sweaters to sweaters to

people!people!

““A man should A man should nevernever be promoted to a be promoted to a

managerial position if his managerial position if his vision focuses on people’s vision focuses on people’s weaknesses rather than on rather than on

their their strengths.”.” —Peter Drucker,—Peter Drucker,

The Practice of ManagementThe Practice of Management

If the regimental commander lost most of his If the regimental commander lost most of his 2nd lieutenants and 1st lieutenants and 2nd lieutenants and 1st lieutenants and

captains and majors, it would be a tragedy. captains and majors, it would be a tragedy.

If he lost his If he lost his serserggeants it would eants it would be a catastrobe a catastropphehe. . The The

Army and the Navy are fully aware that Army and the Navy are fully aware that success on the battlefield is dependent to an success on the battlefield is dependent to an extraordinary degree on its Sergeants and extraordinary degree on its Sergeants and Chief Petty Officers. Does industry have the Chief Petty Officers. Does industry have the

same awareness?same awareness?

““The The fourfour most most imimpportantortant wordswords in any in any

organization are …organization are …

The four most important words in any organizationThe four most important words in any organization

are …are … “What “What do do youyou think?”think?”

Source: courtesy Dave Wheeler, posted at tompeters.com Source: courtesy Dave Wheeler, posted at tompeters.com

““To develop To develop others, start with others, start with yourself.”yourself.” —Marshall Goldsmith—Marshall Goldsmith

““Being aware of Being aware of yourself yourself and how and how yyou ou

affect everaffect everyyone around one around yyouou is what is what

distindistingguishesuishes a superior a superior leader.”leader.” —Edie Seashore (—Edie Seashore (Strategy + Strategy +

BusinessBusiness #45) #45)

"Everyone thinks "Everyone thinks of changing the of changing the

world, but no one world, but no one thinks of thinks of

changing himself" changing himself" - Leo Tolstoy- Leo Tolstoy

WTTMSW WTTMSW

11/45/45

READY.READY.FIRE!FIRE!AIM.AIM.

H. Ross Perot (vs H. Ross Perot (vs ““Aim! Aim! Aim!”Aim! Aim! Aim!” /EDS vs GM/1985)/EDS vs GM/1985)

"How often I found "How often I found where I should be where I should be

going only by setting going only by setting out for somewhere out for somewhere

else.”else.” — Buckminster Fuller— Buckminster Fuller

In Search of ExcellenceIn Search of Excellence /1982: /1982: The Bedrock “Eight Basics”The Bedrock “Eight Basics”

1. 1. A Bias for ActionA Bias for Action2. Close to the Customer2. Close to the Customer3. Autonomy and Entrepreneurship3. Autonomy and Entrepreneurship4. Productivity Through People4. Productivity Through People5. Hands On, Value-Driven5. Hands On, Value-Driven6. Stick to the Knitting6. Stick to the Knitting7. Simple Form, Lean Staff7. Simple Form, Lean Staff8. Simultaneous Loose-Tight8. Simultaneous Loose-Tight Properties Properties

Korea!Korea!

““Can Can do”do”

Lesson45:Lesson45:

WTTMSWWTTMSW

WhoeverWhoeverTriesTriesTheTheMostMostStuffStuffWinsWins***Joe knows!*Joe knows!

What makes What makes God laugh?God laugh?

PeoplePeople makingmaking plans!plans!

““Ever notice Ever notice that ‘What the that ‘What the hell’ is always hell’ is always

the right the right decision?”decision?”

Source: a shrewd observation, attributed to an unknown Hollywood Source: a shrewd observation, attributed to an unknown Hollywood scriptwriterscriptwriter

NB: I admit it. I found the quote, not at a Harvard B. School exec program, but in a nearby NB: I admit it. I found the quote, not at a Harvard B. School exec program, but in a nearby Cambridge novelty shop. There’s a message here—not least of which is to consider the Cambridge novelty shop. There’s a message here—not least of which is to consider the

value of the $4.00 card vs. a $4,000-a-day program at the HBS? The card, however, cost a value of the $4.00 card vs. a $4,000-a-day program at the HBS? The card, however, cost a lot more than $4; I ordered a couple of hundred, and give them away like candies at lot more than $4; I ordered a couple of hundred, and give them away like candies at

seminars.seminars.

““relentless relentless trial and trial and error”error”**

*Cornerstone of effective approach to “rebalancing” company *Cornerstone of effective approach to “rebalancing” company portfolios in the face of changing and uncertain globalportfolios in the face of changing and uncertain global economic conditionseconomic conditions ((Wall Street Journal, Wall Street Journal, 11.08.10)11.08.10)

Read ItRead It

Richard Farson & Ralph Keyes:Richard Farson & Ralph Keyes:

Whoever MakesWhoever Makes the Most Mistakes the Most Mistakes Wins: The ParadoxWins: The Paradox

of Innovation of Innovation

““Fail.Fail. Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

Sam’s Sam’s Secret Secret

#1!#1!

““No man ever No man ever became great became great

except through except through many and great many and great

mistakes.”mistakes.” —William Gladstone—William Gladstone

(from (from Timeless WisdomTimeless Wisdom, compiled by Gary Fenchuk) , compiled by Gary Fenchuk)

““The Silicon Valley of The Silicon Valley of today is built less today is built less atop the spires of atop the spires of

earlier triumphs than earlier triumphs than upon the rubble of upon the rubble of earlier debacles.”earlier debacles.”

——Paul Saffo, tech futurist, Palo AltoPaul Saffo, tech futurist, Palo Alto

““I have missed more than 9,000 I have missed more than 9,000 shots in my career. I have lost shots in my career. I have lost

almost 300 games. On 26 almost 300 games. On 26 occasions I have been entrusted occasions I have been entrusted to take the game winning shot—to take the game winning shot—

and missed. and missed. I have failed over and I have failed over and over and over aover and over aggain in my life. ain in my life.

And that is whAnd that is whyy I succeed I succeed.”.”

——Michael JordanMichael Jordan

… … and that and that is why I is why I succeedsucceed

““Experience is Experience is notnot the the best teacher. It is not best teacher. It is not

even a good teacher. It even a good teacher. It is too is too slowslow, , imimppreciserecise

and and ambiambigguousuous.”.” —Russell Ackoff—Russell Ackoff

He who has the He who has the quickest quickest

“O.O.D.A. “O.O.D.A. Loops”Loops”** wins! wins!

**OObserve. bserve. OOrient. rient. DDecide. ecide. AAct. /Col. John Boydct. /Col. John Boyd

“Re-arrange the mind of the

enemy” —T.E. Lawrence

““We don’t sell insurance We don’t sell insurance

anymore.anymore. WeWe sell sell ssppeedeed.”.”

—Peter Lewis, Progressive—Peter Lewis, Progressive

““It is It is notnot the the strongest of the strongest of the

species that survives, species that survives, nornor the most the most

intelligent, but intelligent, but the the one most one most responsive responsive

to changeto change.”.” —Charles Darwin

““You miss You miss

100100%%

of the shots of the shots you never you never

take.”take.” —Wayne—Wayne GretzkyGretzky

BLAME NOBODY.BLAME NOBODY.EXPECT EXPECT NOTHING.NOTHING.DO SOMETHING.DO SOMETHING.

Source: Locker room sign posted by NFLSource: Locker room sign posted by NFL football coach Bill Parcellsfootball coach Bill Parcells

The The “HanG out” “HanG out”

TheoremTheorem

““You will become You will become like the five people like the five people you associate with you associate with the most—this can the most—this can

be either a blessing be either a blessing or a curse.”or a curse.” —Billy Cox—Billy Cox

The “Hang Out Axiom I”:The “Hang Out Axiom I”: We We are are What We What We

Eat/WeEat/We Are Are the the companycompany we keepwe keep

Measure/Manage: Portfolio “StranMeasure/Manage: Portfolio “Stranggeness”/Qualiteness”/Qualityy

StaffStaffConsultantsConsultants

VendorsVendorsOut-sourcing Partners Out-sourcing Partners (#, Quality, Diversity)(#, Quality, Diversity)

Innovation Alliance PartnersInnovation Alliance PartnersCustomersCustomers

Competitors Competitors (who we “benchmark” against)(who we “benchmark” against)

Strategic Initiatives Strategic Initiatives Product Portfolio Product Portfolio (Line extension v. Leap)(Line extension v. Leap)

IS/IT ProjectsIS/IT ProjectsHQ LocationHQ LocationLunch MatesLunch Mates

LanguageLanguageBoardBoardEtc.Etc.

The “We are what we eat”/ The “We are what we eat”/ “We are who we hang out with”“We are who we hang out with”

Axiom: Axiom: At its core, At its core, evereveryy (!!!) (!!!) relationship-partnership decision relationship-partnership decision (employee, vendor, customer, etc, (employee, vendor, customer, etc, etc) is a etc) is a stratestrateggicic decision about: decision about:

“Innovate,“Innovate, ‘ ‘YesYes’ ’ oror ‘No’ ” ”

“How do dominant companies lose their

position? Two-thirds of Two-thirds of the time, thethe time, they py pick the ick the wronwrongg competitor to competitor to worrworryy about about.”.” —Don Listwin, CEO,

Openwave Systems/WSJ

“The short road to ruin is to emulate the

methods of your adversary.” — Winston

Churchill

““While everything mayWhile everything may

be better, be better, it isit is also increasingly also increasingly

the same.”the same.”—Paul Goldberger on retail, “The Sameness of Things,” —Paul Goldberger on retail, “The Sameness of Things,” New York TimesNew York Times

COMPETITORS:COMPETITORS: “The best swordsman “The best swordsman in the world doesn’t need to in the world doesn’t need to

fear the second best fear the second best swordsman in the world;swordsman in the world; no, the no, the

person for him to be afraid of is some ignorant person for him to be afraid of is some ignorant antagonist who has never had a sword in his antagonist who has never had a sword in his

hand before; he doesn’t do the thing he ought hand before; he doesn’t do the thing he ought to do, and so the expert isn’t prepared for him; to do, and so the expert isn’t prepared for him; he does the thing he ought not to do and often he does the thing he ought not to do and often it catches the expert out and ends him on the it catches the expert out and ends him on the

spot.”spot.”

—Mark Twain—Mark Twain

““Diverse groups of problem solvers—groupsDiverse groups of problem solvers—groups of people with diverse tools—consistently of people with diverse tools—consistently outperformed groups of the best and the outperformed groups of the best and the

brightest. If I formed two groups, one brightest. If I formed two groups, one randomrandom (and therefore diverse) and one (and therefore diverse) and one

consisting of the consisting of the bestbest individual performers, individual performers, the first group almost always did better. …the first group almost always did better. …

DiversityDiversity trumped trumped abilityability.”.” —Scott Page, —Scott Page, The Difference: The Difference:

How the Power of Diversity Creates Better Groups,How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Firms, Schools, and Societies

Diversity … Diversity … perper sese … is a key … … is a key …

maybemaybe thethe keykey … … to effective and to effective and

innovative innovative decision making.decision making.

““Our business needs a Our business needs a massive transfusion of massive transfusion of

talent, and talent, I talent, and talent, I believe, is most likely to believe, is most likely to be found among … be found among … non-non-conformistsconformists, , dissenters dissenters

and and rebelsrebels.”.” —David Ogilvy—David Ogilvy

““d”iversityd”iversity

Can you pass the …Can you pass the …

“Squint “Squint test”?test”?

““Who’s the most Who’s the most interesting person interesting person you’ve met in the you’ve met in the last 90 days? How last 90 days? How do I get in touch do I get in touch

with them?”with them?” —Fred Smith—Fred Smith

Vanity Fair:Vanity Fair: “What is your most marked“What is your most marked characteristic?”characteristic?”

Mike Bloomberg:Mike Bloomberg:

“Curiosity.”“Curiosity.”

Rob McEwen/CEO/Rob McEwen/CEO/Goldcorp Inc./Goldcorp Inc./

Red Lake Red Lake goldSource: Source: Wikinomics: How Mass

Collaboration Changes Everything, Don Tapscott & Anthony Williams

MaximizeMaximize“TGR“TGRss” ”

Conveyance: Kingfisher Air Conveyance: Kingfisher Air Location: Approach to New DelhiLocation: Approach to New Delhi

““May I clean May I clean your glasses, your glasses,

sir?”sir?”

It It BEGINSBEGINS (and (and ENDSENDS) )

in the …in the …

parkingparking lotlot**

*Disney*Disney

Carl’sCarl’s Street- Street-

Sweeper Sweeper

FFLLOOWWEERRPPOOWWEERR**

*Thanks, Stanley Marcus!*Thanks, Stanley Marcus!

Don’t like it?Don’t like it?Don’t pay.Don’t pay.

Source: Granite Rock Co.Source: Granite Rock Co.

<TG<TGWWandand … …

>TG>TGRR[Things Gone [Things Gone WRONGWRONG-Things Gone -Things Gone RIGHTRIGHT]]

Little =Little =

BIGBIG

Big carts =Big carts =

1.5X1.5XSource: WalmartSource: Walmart

Bag sizes = New markets:Bag sizes = New markets:

$B$BSource: PepsiCoSource: PepsiCo

Socks = Socks = 10,00010,000

Love.Love.Hate.Hate.

Design.Design.

All EAll Eqqual ual ExceExcepptt … …

“At Sony we assume that all “At Sony we assume that all products of our competitors products of our competitors

have basically the same have basically the same technology, price, performance technology, price, performance

and features.and features. DesiDesiggn is the n is the onlonlyy thin thingg that that

differentiates one differentiates one pproduct from another roduct from another in the marketin the marketpplacelace.”.” ——

NorioNorio OhgaOhga

““Design is Design is

treated like treated like a religiona religion at at

BMW.”BMW.” —Fortune—Fortune

““We don’t have a good language to talk We don’t have a good language to talk about this kind of thing. In most people’s about this kind of thing. In most people’s

vocabularies, design means veneer. … vocabularies, design means veneer. … But to me, nothing could be further from But to me, nothing could be further from

the meaning of design.the meaning of design. DesignDesign is the is the fundamentalfundamental

soulsoul of a man- of a man-made creation.”made creation.” ——

Steve JobsSteve Jobs

““You You knowknow a a designdesign is is goodgood

whenwhen you you wantwant toto licklick it.”it.” —Steve Jobs—Steve Jobs

Source: Source: Design: Intelligence Made VisibleDesign: Intelligence Made Visible,, Stephen Bayley & Terence ConranStephen Bayley & Terence Conran

PackaPackagginingg Power Power:: From Quaker Oats From Quaker Oats

to …to … Listerine Listerine PocketPaksPocketPaks

““Salt is salt is salt. Right? Salt is salt is salt. Right? Not when it Not when it

comes in acomes in a blue boxblue box

with a with a ppicture of a little girl icture of a little girl carrcarryying an uming an umbbrellarella. Morton . Morton

International continues to International continues to dominate the U.S. salt market even dominate the U.S. salt market even

though it charges more for a though it charges more for a product that is demonstrably the product that is demonstrably the same as many other products on same as many other products on

the shelf.” the shelf.” —Tom Asaker, —Tom Asaker, Humanfactor MarketingHumanfactor Marketing

Quaker Oats/Packaging, Power of …Quaker Oats/Packaging, Power of …

18701870:: animal feed. animal feed.

18901890:: “A delicacy for the “A delicacy for the epicure, a nutritious dainty epicure, a nutritious dainty for the invalid, a delight to for the invalid, a delight to

the children”the children”

Source: Thomas Hine, Source: Thomas Hine, The Total Package: The The Total Package: The Evolution and Secret Meanings of Bottles, Evolution and Secret Meanings of Bottles, Boxes, Cans and TubesBoxes, Cans and Tubes (on Quaker Oats)(on Quaker Oats)

Hypothesis:Hypothesis: DESIGNDESIGN is is the pthe princirincippalal

differencedifference between between lovelove

and and hate!*hate!**Not “like” and “dislike”

Design is …Design is …

nevernever neutralneutral..

Monopoly Monopoly Power.Power.

“I am often asked by I am often asked by would-be entrepreneurs would-be entrepreneurs seeking escape from life seeking escape from life within huge corporate within huge corporate structures, structures, ‘How do I build a small firm for myself?’ The answer The answer

seems obviousseems obvious … …

Source: Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics

“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 Buy a very largelarge

one and just one and just waitwait.”.” —Paul Ormerod, Why Most Things

Fail: Evolution, Extinction and Economics

““Mr. Foster and his McKinsey colleagues Mr. Foster and his McKinsey colleagues collected detailed performance data stretching collected detailed performance data stretching

back back 4040 years for years for 1,0001,000 U.S. companies. U.S. companies.

TheTheyy found that found that nonenone ofof

the lon the longg-term survivors mana-term survivors managged ed to outto outpperform the market. Worse, erform the market. Worse, the lonthe longger comer comppanies had been in anies had been in

the database, the worse thethe database, the worse theyy did did.”.”

—Financial Times—Financial Times

““Data drawn from the real world Data drawn from the real world attest to a fact that is beyond attest to a fact that is beyond

our control:our control: Everything in existence tends to deteriorate.”

—Norberto Odebrecht, —Norberto Odebrecht, Education Through WorkEducation Through Work

SpinoffsSpinoffs … …

systematically perform systematically perform better than IPOs … track better than IPOs … track

record, profits …record, profits … “freed from “freed from the confines of the parent … the confines of the parent … more entrepreneurial, more more entrepreneurial, more nimble”nimble” ——Jerry KnightJerry Knight/ Washington Post/ / Washington Post/ 08.0508.05

#4 Japan#4 Japan#3 USA#3 USA

#2 China#2 China

#1 #1 GermanyGermany

MittELstandMittELstand* * ****

**“agile creatures darting between the legs of“agile creatures darting between the legs of the multinational monsters"the multinational monsters" ((Bloomberg BusinessWeek, Bloomberg BusinessWeek, 10.10)10.10)

**E.g. Goldmann Produktion**E.g. Goldmann Produktion

““agile creatures agile creatures darting betweendarting between the legs of the the legs of the multinational multinational

monsters"monsters"

Source:Source: Bloomberg BusinessWeek Bloomberg BusinessWeek on the German on the German MITTELSTANDMITTELSTAND

Seymour CTSeymour CT

Larry JaneskyLarry Janesky Rocks … Rocks …

*Basement Systems Inc.*Basement Systems Inc.

(Seymour CT)(Seymour CT)

**Dry Basement ScienceDry Basement Science (100,000++ copies!) (100,000++ copies!)

*1990: $0; 2003: $13M; *1990: $0; 2003: $13M; 2008: 2008:

$62,000,000$62,000,000

Jim’s Mowing CanadaJim’s Mowing CanadaJim’s Mowing UKJim’s Mowing UKJim’s AntennasJim’s Antennas

Jim’s BookkeepingJim’s BookkeepingJim’s Building MaintenanceJim’s Building Maintenance

Jim’s Carpet CleaningJim’s Carpet CleaningJim’s Car CleaningJim’s Car Cleaning

Jim’s Computer ServicesJim’s Computer Services

Jim’s Dog WashJim’s Dog WashJim’s Driving SchoolJim’s Driving School

Jim’s FencingJim’s FencingJim’s FloorsJim’s Floors

Jim’s PaintingJim’s PaintingJim’s PavingJim’s Paving

Jim’s Pergolas [gazebos]Jim’s Pergolas [gazebos]Jim’s Pool CareJim’s Pool Care

Jim’s Pressure CleaningJim’s Pressure CleaningJim’s RoofingJim’s Roofing

Jim’s Security DoorsJim’s Security DoorsJim’s TreesJim’s Trees

Jim’s Window CleaningJim’s Window CleaningJim’s WindscreensJim’s Windscreens

Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group

Skunk Camp Skunk Camp #1#1: American “Mittelstand” : American “Mittelstand” (F500 A.W.O.L.)(F500 A.W.O.L.)

Frank Perdue/ Frank Perdue/ Perdue FarmsPerdue Farms (“It takes a tough man to make a tender chicken.”)(“It takes a tough man to make a tender chicken.”)

Tom Malone/ Tom Malone/ Milliken and CompanyMilliken and Company (BEST quality program in America)(BEST quality program in America)

Don Burr/ Don Burr/ People ExpressPeople Express (Turned the airline industry upside down with fun and discount fares)(Turned the airline industry upside down with fun and discount fares)

Tom Monaghan/ Tom Monaghan/ Domino’s PizzaDomino’s Pizza (30-minute delivery promise was revolutionary)(30-minute delivery promise was revolutionary)

Stew Leonard/ Stew Leonard/ Stew Leonard’s Stew Leonard’s (Only acceptable standard is “WOW!”)(Only acceptable standard is “WOW!”)

Hal Rosenbluth/ Hal Rosenbluth/ Rosenbluth International Rosenbluth International (Customer second, our people FIRST)(Customer second, our people FIRST) John McConnell/ John McConnell/ Worthington IndustriesWorthington Industries (Profitable steel superstar … in USA!)(Profitable steel superstar … in USA!)

Bill and Vieve Gore/ Bill and Vieve Gore/ W.L. Gore W.L. Gore (Goretex)(Goretex) Bob Buckman/ Bob Buckman/ Buckman LabsBuckman Labs (Single-handedly invented what we now call “knowledge (Single-handedly invented what we now call “knowledge management.”)management.”)

““Be the best. Be the best. It’s the only It’s the only

market that’s market that’s not crowded.”not crowded.”

From: From: Retail Superstars: Inside the 25 BestRetail Superstars: Inside the 25 Best Independent Stores in America,Independent Stores in America, George Whalin George Whalin

““You do not merely want to You do not merely want to

be the best of the best.be the best of the best. You want to be You want to be considered the considered the

only ones who do only ones who do what you dowhat you do.” .” —Jerry —Jerry

GarciaGarcia

Retail Superstars: Retail Superstars: Inside the 25 Best Inside the 25 Best

Independent Independent Stores in Stores in

AmericaAmerica —by George Whalin—by George Whalin

Hartville HardwareHartville HardwareHartville, Ohio, Hartville, Ohio, pop <2,500pop <2,500100,000 square feet100,000 square feet (plus catalog, (plus catalog, Web serve location) Web serve location)Family runFamily run

“One of biggest and best tool “One of biggest and best tool merchants in USA”merchants in USA”Customers from 100s of miles awayCustomers from 100s of miles awayRenowned semi-annual tool sale (12,000Renowned semi-annual tool sale (12,000 transactions at recent incarnation) transactions at recent incarnation)Anchor for 110-independent shops @ Anchor for 110-independent shops @ Hartville MarketPlace Hartville MarketPlaceStaff are premier trainersStaff are premier trainersEtc.Etc.Etc.Etc.Source: Source: Retail Superstars: Inside the 25 Best Independent Stores in AmericaRetail Superstars: Inside the 25 Best Independent Stores in America, George Whalin, George Whalin

Abt Electronics/Family/1936Abt Electronics/Family/1936

InsaneInsane comcomppetitionetition (Chicagoland!) (Chicagoland!)Campus/350K sq.ft./37 acres/$300M revenueCampus/350K sq.ft./37 acres/$300M revenueDesign Center (Classes on every-damn-thing, Design Center (Classes on every-damn-thing, etc.)etc.)“Destination” like Ikea (restaurant, atrium“Destination” like Ikea (restaurant, atrium with spectacular flowers, 7,500 gallon with spectacular flowers, 7,500 gallon aquarium, etc.) aquarium, etc.)In-house delivery teams (spiffy uniforms, etc.)In-house delivery teams (spiffy uniforms, etc.)Training/knowledge training!!!!!!!!Training/knowledge training!!!!!!!!“Yes.” Period. NO EXCUSES.“Yes.” Period. NO EXCUSES.“Over”-staffed“Over”-staffedMerchandising (boats displaying marineMerchandising (boats displaying marine electronics, cars with various systems, etc.) electronics, cars with various systems, etc.)Web (encyclopedic info re almost all stuff sold,Web (encyclopedic info re almost all stuff sold, blog, live chat with live experts “24/7”, etc.) blog, live chat with live experts “24/7”, etc.)Rating of services (Rating of services (>>>>>> Home Depot, Lowes, Home Depot, Lowes, etc.)etc.)

Source: George Whalin, Source: George Whalin, Retail SuperstarsRetail Superstars

Jungle Jim’s International Market, Jungle Jim’s International Market, FairfieldFairfield, , OhioOhio:: “An “An

adventure in adventure in ‘‘shoshoppppertainmentertainment,’,’ as as Jungle Jim’s Jungle Jim’s

call it, begins in the parking lot call it, begins in the parking lot and goes on to and goes on to 1,600 1,600 cheesescheeses and, yes, and, yes, 1,400 varieties of hot 1,400 varieties of hot saucesauce —not to mention —not to mention 12,000 wines priced 12,000 wines priced from $8 to $8,000from $8 to $8,000 a bottle; all this is brought to a bottle; all this is brought to

you by you by 4,000 vendors4,000 vendors.. Customers come from Customers come from every corner of the globe.” every corner of the globe.”

Bronner’s Christmas Wonderland, Bronner’s Christmas Wonderland, FrankenmuthFrankenmuth, ,

MichiMichigganan, pop 5,000:, pop 5,000: 98,000-square-foot98,000-square-foot

“shop” features the likes of “shop” features the likes of 6,000 Christmas 6,000 Christmas ornaments, 50,000 trimsornaments, 50,000 trims, and anything else , and anything else you can name if it pertains to Christmas.you can name if it pertains to Christmas.

Source: George Whalin, Source: George Whalin, Retail SuperstarsRetail Superstars

Small Giants: Companies that Chose to Be Great Instead of Big

““They cultivated They cultivated exceptionally intimate relationships with exceptionally intimate relationships with customers and supplierscustomers and suppliers, , based on personal contact, one-based on personal contact, one-on-one interaction, and mutual commitment to delivering on on-one interaction, and mutual commitment to delivering on promises.promises.

“Each company had an ach company had an extraordinarily intimate relationship extraordinarily intimate relationship with the local city, town, or countywith the local city, town, or county in which it did business in which it did business -- a relationship that went well beyond the usual concept of -- a relationship that went well beyond the usual concept of `giving back.’ `giving back.’

““The companies had what struck me asThe companies had what struck me as unusually unusually intimate intimate workplacesworkplaces..

““I noticed theI noticed the passionpassion that the leaders brought to what the that the leaders brought to what the company did.company did. They loved the subject matterThey loved the subject matter, , whether it be whether it be music, safety lighting, food, special effects, constant torque music, safety lighting, food, special effects, constant torque hinges, beer, records storage, construction, dining, or hinges, beer, records storage, construction, dining, or fashion."fashion."

Billboard …Billboard …

ONLY 262 MILES TO ONLY 262 MILES TO BUC-EE’SBUC-EE’S

YOU CAN HOLD IT.*YOU CAN HOLD IT.*

*“If I weren’t already married, I’d have my wedding*“If I weren’t already married, I’d have my wedding there.” there.” —Dallas Morning News Metro—Dallas Morning News Metro blogger blogger

YOU YOU CAN CAN

HOLD HOLD IT.IT.

““Be the Be the best. It’s best. It’s the only the only market market

that’s not that’s not crowded.”crowded.”

Bedrock.Bedrock.

Conrad Hilton …Conrad Hilton …

Conrad Hilton, at a gala celebrating his Conrad Hilton, at a gala celebrating his career, was called to the podium and career, was called to the podium and

asked,asked, “What were the most important

lessons you learned in your long and

distinguished career?” His answer …His answer …

““remember remember to tuck the to tuck the

shower curtain shower curtain inside the inside the bathtubbathtub.”.”

Women Women DecideDecide.. Women Women spendspend. . Women Save.Women Save.Women rule.Women rule.

W W == 25T 25T >> 2(C 2(C + I)+ I)

W W > > 2X2X (C + (C + I)*I)*

**“Women now drive the global economy. Globally, they control about “Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could climb as high as $20 trillion in consumer spending, and that figure could climb as high as

$28 trillion in the next five $28 trillion in the next five yyearsears. Their $13 trillion in total yearly earnings could reach $18 . Their $13 trillion in total yearly earnings could reach $18

trillion in the same period.trillion in the same period. In aggregate, women represent a growth market bigger than China and 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 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 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 …”strategy when it comes to women. Consider Dell’s …”

Source: Michael Silverstein and Kate Sayre, “The Female Economy,” Source: Michael Silverstein and Kate Sayre, “The Female Economy,” HBRHBR, 09.09, 09.09

““Forget Forget ChinaChina, , IndiaIndia and the and the InternetInternet: :

Economic Growth Is Economic Growth Is Driven by Driven by

WomenWomen.”.”

Source: Headline, Economist

““One thing is certain: Women’s rise to power, which is One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no in all domains and at all levels of society. Women are no

longer content to provide efficient labor or to be longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to consumers with rising budgets and more autonomy to spend. … This is just the beginning. The phenomenon spend. … This is just the beginning. The phenomenon

will only grow as girls prove to be more successful than will only grow as girls prove to be more successful than

boys in the school system.boys in the school system. For a number For a number of observers, we have of observers, we have

already entered the age of already entered the age of ‘‘womenomics,’ the economy womenomics,’ the economy

as thought out and as thought out and practiced by a womanpracticed by a woman.”.” —Aude Zieseniss de —Aude Zieseniss de

Thuin, Women’s Forum for the Economy and SocietyThuin, Women’s Forum for the Economy and Society

““Women areWomen are thethe majority majority

market”market” —Fara Warner/—Fara Warner/The Power of the PurseThe Power of the Purse

The Five Global Trends Driving Female ConsumersThe Five Global Trends Driving Female Consumers

1. The presence of more women in the 1. The presence of more women in the workforce changes everything.workforce changes everything.2. Delayed marriage means more money 2. Delayed marriage means more money spent on “me.”spent on “me.”3. Lower birthrates globally means fewer 3. Lower birthrates globally means fewer kids but more “stuff.”kids but more “stuff.”4. The divorce economy means two of 4. The divorce economy means two of everything.everything.5. The presence of more older women 5. The presence of more older women redefines target markets.redefines target markets.

Source: Source: Why She Buys: The New Strategy for Reaching the World’s Why She Buys: The New Strategy for Reaching the World’s Most Powerful Consumers, by Bridget BrennanMost Powerful Consumers, by Bridget Brennan [Key word: [Key word: “World”—this applies literally everywhere]“World”—this applies literally everywhere]

Women as Decision Makers/Various sourcesWomen as Decision Makers/Various sources

Home Furnishings … Home Furnishings … 94%94%Vacations … Vacations … 92%92% (Adventure Travel … 70%/ $55B travel equipment)(Adventure Travel … 70%/ $55B travel equipment)

Houses … Houses … 91%91%D.I.Y. D.I.Y. (major “home projects”)(major “home projects”) … … 80%80%

Consumer Electronics … Consumer Electronics … 51%51% (66% home computers)(66% home computers)

Cars … Cars … 68%68% (influence (influence 90%90%))

AllAll consumerconsumer p purchasesurchases … … 83%83% **

Bank Account … Bank Account … 89%89%Household investment decisions … Household investment decisions … 67%67%Small business loans/biz starts … Small business loans/biz starts … 70%70%

Health Care … Health Care … 80%80%*In the USA women hold *In the USA women hold >50%>50% managerial positions including managerial positions including >50%>50% purchasing officer purchasing officer positions positions; hence women also make the majority of ; hence women also make the majority of commercialcommercial purchasing decisions. purchasing decisions.

Sales/Aftersales ProcessSales/Aftersales Process

1. Kick-off – 1. Kick-off – womenwomen2. Research – 2. Research – womenwomen3. Purchase – 3. Purchase – menmen4. Ownership – 4. Ownership – womenwomen5. Word-of-mouth – 5. Word-of-mouth – womenwomen

Source: Marti BarlettaSource: Marti Barletta

““The The most most significant variablesignificant variable

inin everyevery sales situation is sales situation is

thethe gendergender of the buyer, of the buyer, and more importantly, how and more importantly, how

the salesperson the salesperson communicates to the communicates to the

buyer’s gender.”buyer’s gender.” —Jeffery Tobias Halter, Selling to Men, Selling to Women

The Perfect Answer

Jill and Jack buy slacks in black…

Lowe’sLowe’s!!

““Home Depot is still very much a guy’s Home Depot is still very much a guy’s chain. But women, according to Lowe’s chain. But women, according to Lowe’s

research, initiate research, initiate 8080 p percentercent of all of all home-improvement purchase decisions— home-improvement purchase decisions—

esesppeciallecially y thethe bibig g ticket ticket ordersorders like kitchen cabinets, like kitchen cabinets,

flooring and bathrooms. ‘We focused flooring and bathrooms. ‘We focused on a customer nobody in home on a customer nobody in home

improvement has focused on. Don’t get me improvement has focused on. Don’t get me wrong, but women are far more wrong, but women are far more

discriminating than men,’ says CEO Robert discriminating than men,’ says CEO Robert

Tillman, a Lowe’s lifer.”Tillman, a Lowe’s lifer.” —Forbes.com—Forbes.com

Editorial/Editorial/MenMen: : Tables, Tables, rankings.*rankings.*

Editorial/Editorial/WomenWomen: :

NarrativesNarratives that that cohere.*cohere.*

*Editor-in-Chief, Redwood Publications (UK)*Editor-in-Chief, Redwood Publications (UK)

Genetically Altered FoodGenetically Altered Food

Would eat: M/71%; F/50%Would eat: M/71%; F/50%

Give to children:Give to children: M/59%; F/37% M/59%; F/37%

Pay more for non-altered: Pay more for non-altered:

M/35%; F/47%M/35%; F/47%

Source: www.pulse.org & Source: www.pulse.org & USA TodayUSA Today

GreenGreen!!

**Safety! Safety! **Quality!/Freshness!Quality!/Freshness!**Nutritious!Nutritious!**Green!/Organic!Green!/Organic!**Attractive!/Packaging!Attractive!/Packaging!**A Great Story!A Great Story!

Force of NatureForce of NatureThe Unlikely Story of Walmart’The Unlikely Story of Walmart’ss Green Revolution Green Revolution

How it could transform business and save the worldHow it could transform business and save the world

by Edward Humesby Edward Humes

(“ … one of the most important stories of corporate leadership(“ … one of the most important stories of corporate leadership in modern history”—Amory Lovins, Rocky Mountain Institute) in modern history”—Amory Lovins, Rocky Mountain Institute)

The TV remote control!

““Women don’t ‘buy’ Women don’t ‘buy’

brands. brands. They They ‘‘join’ join’

themthem.”.”—Faith Popcorn, —Faith Popcorn, EVEolutionEVEolution

2.62.6 vs.vs.

2121

““Female users are the unsunFemale users are the unsungg heroines behind heroines behind the most enthe most enggaagginingg, fastest , fastest ggrowinrowingg, and , and valuable consumer internet and e-commerce valuable consumer internet and e-commerce companiescompanies.. Especially when it comes to social and shopping, women rule the Internet.Especially when it comes to social and shopping, women rule the Internet. In In e-commerce, female purchasing power is clear. Sites like Zappos Groupon, Gilt Groupe, Etsy, and e-commerce, female purchasing power is clear. Sites like Zappos Groupon, Gilt Groupe, Etsy, and Diapers are all driven by a majority of female customers. According to Gilt Groupe, women are 70% Diapers are all driven by a majority of female customers. According to Gilt Groupe, women are 70%

of the customers and 74% of revenue; andof the customers and 74% of revenue; and 77% of Grou77% of Grouppon’s on’s customers are femalecustomers are female.. But what’s different now is an exciting new crop of e-But what’s different now is an exciting new crop of e-commerce companies. One King’s Lane, Plum District, Stella & Dot, Rent the Runway, Modcloth, commerce companies. One King’s Lane, Plum District, Stella & Dot, Rent the Runway, Modcloth, BirchBox, Shoedazzle, Zazzle and Shopkickc are just a few examples of companies leveraging ‘girl BirchBox, Shoedazzle, Zazzle and Shopkickc are just a few examples of companies leveraging ‘girl power.’ The majority of these companies were also founded by women, which is also an exciting power.’ The majority of these companies were also founded by women, which is also an exciting

trend.trend. And take a look at four of the new ‘horsemen’ And take a look at four of the new ‘horsemen’ of the consumer webof the consumer web——Facebook, ZFacebook, Zygygna, Groupon na, Groupon and Twitter. The maand Twitter. The majjoritorityy of all four properties’ of all four properties’ users are female. Make that ‘horsewomen.’users are female. Make that ‘horsewomen.’““So, if you’re at a consumer web company, how can this insight help you? Would you like to lower So, if you’re at a consumer web company, how can this insight help you? Would you like to lower your cost of customer acquisition? Or grow revenue faster? Maybe you would benefit from having your cost of customer acquisition? Or grow revenue faster? Maybe you would benefit from having a larger base of female customers. If so, what would you change to make your product/service more a larger base of female customers. If so, what would you change to make your product/service more attractive to female customers? Do you do enough product and user interface testing with female attractive to female customers? Do you do enough product and user interface testing with female users? Have you figured out how to truly unleash the shopping and social power of women?users? Have you figured out how to truly unleash the shopping and social power of women? You You could also take a look at your team. Do you have women in key positions?”could also take a look at your team. Do you have women in key positions?”

——Aileen Lee, Kleiner Perkins Caufield & Byers (05.06.2011)Aileen Lee, Kleiner Perkins Caufield & Byers (05.06.2011)

Women Decide.Women Decide. Women spend. Women spend. Women Women SaveSave..Women Women rulerule..

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find New Studies find

that female managers outshine their male that female managers outshine their male counterparts in almost every measure”counterparts in almost every measure”

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

““Headline 2020:Headline 2020: Women Women Hold 80 Percent of Hold 80 Percent of Management and Management and Professional Jobs”Professional Jobs”

Source: Source: The Extreme Future: The Top Trends That Will The Extreme Future: The Top Trends That Will Reshape the World in the Next 20 YearsReshape the World in the Next 20 Years, James Canton, James Canton

““Power Women 100”/Power Women 100”/ForbesForbes 10.25.10 10.25.1026 female CEOs of Public Companies:26 female CEOs of Public Companies:

Vs. Men/Market: Vs. Men/Market: +28%+28% ** (*Post-appointment) (*Post-appointment)

Vs. Industry: Vs. Industry: +15%+15%

““TAKE THIS QUICK QUIZTAKE THIS QUICK QUIZ: Who manages more Who manages more things at once?things at once? Who puts more effort into their Who puts more effort into their appearance?appearance? Who usually takes care of the Who usually takes care of the

details?details? Who finds it easier to meet new Who finds it easier to meet new people?people? Who asks more questions in a Who asks more questions in a

conversation?conversation? Who is a better listener?Who is a better listener? Who Who has more interest in communication skills?has more interest in communication skills? Who is more inclined to get involved?Who is more inclined to get involved? Who Who encourages harmony and agreement?encourages harmony and agreement? Who Who

has better intuition?has better intuition? Who works with a longer Who works with a longer ‘to do’ list?‘to do’ list? Who enjoys a recap to the day’s Who enjoys a recap to the day’s events?events? Who is better at keeping in touchWho is better at keeping in touch

with others?”with others?”

Source/from the back cover: SellinSellingg Is a Woman’s Game Is a Woman’s Game:: 15 Powerful Reasons Wh15 Powerful Reasons Whyy Women Can Outsell Women Can Outsell

MenMen, Nicki Jo, Nicki Joyy & Susan Kane-Benson & Susan Kane-Benson

““Women Beat Women Beat Men at Art of Men at Art of

Investing”Investing”Source: Headline, Source: Headline, Miami HeraldMiami Herald, reporting on a study by Profs. Terrance Odean and , reporting on a study by Profs. Terrance Odean and

Brad Barber, UC DavisBrad Barber, UC Davis (Cause: Guys are “in and out” of stocks more often; women choose carefully

and hold on for the long term)

Value LineValue Line: Top State* Investment Clubs 2000: Top State* Investment Clubs 2000

8 … All male8 … All male19 … Coed19 … Coed

22 … 22 … AllAll FEMALE FEMALE

* VT & Maine not included; D.C. included* VT & Maine not included; D.C. included

**Women Women decidedecide..**Women Women savesave..**Women Women ssppendend..**Women Women rulerule..

““THETHE NEWNEW GENDER GENDER GAPGAP: From kinder-: From kinder-

garten to grad school, garten to grad school, boys are becoming boys are becoming

the second sex”the second sex” —Cover story, —Cover story,

BusinessWeekBusinessWeek

““Girls are Girls are the new the new boys.”boys.”

Source: Source: The Daily MailThe Daily Mail, 0425.2007,“Why today’s women want a girl”, 0425.2007,“Why today’s women want a girl”

““Are men Are men obsolete?obsolete?

””

—Headline, —Headline, USN&WRUSN&WR

1/8/20 1/8/20

1/8 seconds1/8 seconds20 years20 years

Date: 1/1/11Date: 1/1/11Activity: USA BoomersActivity: USA Boomers start turning 65 start turning 65

Rate: Rate: 1 every 1 every 88 secondssecondsDuration: Duration: 2020 yearsyearsImpacted: EVERYTHINGImpacted: EVERYTHING

MustMust read: read:

SHOCK OF GRAY: The Aging SHOCK OF GRAY: The Aging of the World’s Population of the World’s Population

and How It Pits Young and How It Pits Young Against Old, Child Against Against Old, Child Against

Parent, Worker Against Parent, Worker Against Boss, Company Against Boss, Company Against

Rival, and Nation Against Rival, and Nation Against Nation Nation —Ted Fishman—Ted Fishman

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““People turning 50 People turning 50

today have today have more more thanthan halfhalf of of their adult life their adult life

ahead of them.”ahead of them.” —Bill

Novelli, 50+: Igniting a Revolution to Reinvent America

7/17/133

55+ > 55-55+ > 55-**

*“[55-plus] are more active in online*“[55-plus] are more active in online finance, shopping and entertainment than finance, shopping and entertainment than

those under 55?”—Forrester Research those under 55?”—Forrester Research ((USA TodayUSA Today, 8 January 2009), 8 January 2009)

$8.4$8.4TT

Boomers:Boomers:

70% will inherit/70% will inherit/$300K average/$300K average/

Top 8 million $1.5M Top 8 million $1.5M average/average/

Total inheritanceTotal inheritance$8.4 Trillion$8.4 Trillion

Source: Forbes/0411.11

““Baby-boomer Baby-boomer WomenWomen: : TheThe Sweetest of Sweetest of

Sweet Spots for Sweet Spots for Marketers”Marketers”

—David Wolfe and Robert Snyder, —David Wolfe and Robert Snyder, Ageless MarketingAgeless Marketing

““Turnkey”Turnkey”Transformation.Transformation.

““Lou, Your mission Lou, Your mission is to break the is to break the

company up and company up and release hidden release hidden

value!”value!”

$55B*$55B**IBM Global Services/*IBM Global Services/

“Systems integrator of choice”“Systems integrator of choice”

IBIBMMtoto

IIBBMM

““Never mind computers Never mind computers and tech services. and tech services.

IBM’s radical new focus IBM’s radical new focus is on revamping is on revamping

customers’ operationscustomers’ operations—and running them.”—and running them.”

—Headline/ BW—Headline/ BW

PlanetarPlanetary y RainmakerRainmaker--inin--ChiefChief!!

“[CEO Sam] Palmisano’s “[CEO Sam] Palmisano’s strategy is to expand tech’s strategy is to expand tech’s borders by pushing users—borders by pushing users—

and entire industries—and entire industries—towardtoward radicallradically y differentdifferent businessbusiness modelsmodels.. The payoff for IBM would be The payoff for IBM would be

access to an ocean of revenue—Palmisano access to an ocean of revenue—Palmisano

estimates it atestimates it at $$500500 billionbillion aa y yearear ——that technology companies have never been that technology companies have never been

able to touch.”able to touch.” ——FortuneFortune

““HPHP to acquire to acquire EDSEDS* for * for

$13.9 billion” billion”

Source: Hewlett-Packard press release/05.13.2008Source: Hewlett-Packard press release/05.13.2008

*EDS was the first large computer services.*EDS was the first large computer services.

““The leading Indian The leading Indian outsourcers reckon that the outsourcers reckon that the

key to their long-term key to their long-term prosperity is bagging ever prosperity is bagging ever

larger deals larger deals …… and moving ever higher

up the value chain.” ——

The EconomistThe Economist//

““Big Brown’s New Bag: UPS Big Brown’s New Bag: UPS Aims to Be the Traffic Manager Aims to Be the Traffic Manager for Corporate Americafor Corporate America”” —Headline/—Headline/BWBW

““UPS wants to take over the UPS wants to take over the sweet spot in the endless loop sweet spot in the endless loop

of goods, information and of goods, information and capital that all the packages capital that all the packages [it [it

moves]moves] represent represent.”.” —ecompany.com —ecompany.com

(E.g., (E.g., UPS Logistics UPS Logistics manages the logistics of 4.5M manages the logistics of 4.5M

Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)

What Can What Can Brown DoBrown Do for You? for You?

Source: ubiquitous UPS ad campaignSource: ubiquitous UPS ad campaign

““THE GIANT STALKING BIG OIL: THE GIANT STALKING BIG OIL:

How How SchlumbergerSchlumberger Is Rewriting the Rules of the Is Rewriting the Rules of the

Energy Game.”:Energy Game.”: “IPM [Integrated “IPM [Integrated Project Management] strays from Project Management] strays from [Schlumberger’s] traditional role [Schlumberger’s] traditional role as a service provider and moves as a service provider and moves

deeper into areas once dominated deeper into areas once dominated by the majors.”by the majors.”

Source: Source: BusinessWeekBusinessWeek cover story, January 2008 cover story, January 2008

IPM’s Chief:IPM’s Chief: “We’ll do “We’ll do just about anything just about anything

an oilfield owner an oilfield owner would want, from would want, from

drilling to drilling to production.”production.”

GE Enterprise SolutionsGE Enterprise Solutions** GE Enterprise Solutions delivers high-impact, GE Enterprise Solutions delivers high-impact, integrated solutions that improve customers’ integrated solutions that improve customers’

productivity and profitability. Enterprise Solutions productivity and profitability. Enterprise Solutions helps customers compete and win in a changing global helps customers compete and win in a changing global

environment by combining the power of GE’s environment by combining the power of GE’s intelligent technologies with its multi-industry intelligent technologies with its multi-industry experience and expertise. Enterprise Solutions experience and expertise. Enterprise Solutions

comprises high-tech, high-growth businesses including comprises high-tech, high-growth businesses including Sensing & Inspection Technologies, Security, GE Fanuc Sensing & Inspection Technologies, Security, GE Fanuc Intelligent Platforms, and Digital Energy. The business Intelligent Platforms, and Digital Energy. The business has 17,000 customer-focused associates in more than has 17,000 customer-focused associates in more than

60 countries around the world.60 countries around the world.

*from GE.com*from GE.com

MasterCard MasterCard AdvisorsAdvisors

I. LAN Installation Co. (3%)

II. Geek Squad. (30%.)

III. Acquired by BestBuy.

IV. Flagship of BestBuyFlagship of BestBuy Wholesale “Solutions” Wholesale “Solutions” Strategy Makeover. Strategy Makeover.

California Closets:California Closets: “a “a whole-life upgrade, not whole-life upgrade, not just a tidy bedroom.”just a tidy bedroom.”

Source: Source: WSJ/0329.07, WSJ/0329.07, “Why the Container-“Why the Container-Store Guy Wants to Be Your Therapist”Store Guy Wants to Be Your Therapist”

Up,Up, Up,Up, Up, Up,

UpUp

the Value-added Ladder.the Value-added Ladder.

wow.wow.

Zappos 10 Corporate ValuesZappos 10 Corporate Values

Deliver Deliver “WOW!”“WOW!” through through

service.service.Embrace and drive change.Embrace and drive change.Create fun and a little weirdness.Create fun and a little weirdness.Be adventurous, creative and open-minded.Be adventurous, creative and open-minded.Pursue growth and learning.Pursue growth and learning.Build open and honest relationships withBuild open and honest relationships with communication.communication.Build a positive team and family spirit.Build a positive team and family spirit.Do more with less.Do more with less.Be passionate and determined.Be passionate and determined.Be humble.Be humble.

Source: Source: Delivering HappinessDelivering Happiness, Tony Hsieh, CEO, Zappos.com, Tony Hsieh, CEO, Zappos.com

““Insanely Great”Insanely Great”Steve JobsSteve Jobs

“Radically thrilling” “Radically thrilling” BMW

““Astonish me!”Astonish me!” (Sergei Diaghlev)

“Build something great!”“Build something great!” (Hiroshi Yamauchi)

“Make it immortal!”“Make it immortal!” (David Ogilvy).

))

Raise your Raise your sights!sights!

Blaze new trails!Blaze new trails!Compete with Compete with the immortals!the immortals!

——David Ogilvy, on Ogilvy & Mather’s corporate culture David Ogilvy, on Ogilvy & Mather’s corporate culture

““EverEveryy project we undertake project we undertake

starts with the same question :starts with the same question :

‘‘How can we do How can we do what has never what has never

been done been done bebefforeore?’”?’”

—Stuart Hornery, Lend Lease—Stuart Hornery, Lend Lease

““Let us create such Let us create such a building that a building that

future generations future generations will take us for will take us for

lunaticslunatics.”.” —the church hierarchs at Seville—the church hierarchs at Seville

““We are crazy. We should do We are crazy. We should do something when people say something when people say

it is ‘crazy.’it is ‘crazy.’ If people If people say something is say something is ‘good’, it means ‘good’, it means someone else is someone else is

already doing it.”already doing it.”—Hajime Mitarai, Canon—Hajime Mitarai, Canon

Kevin Roberts’ CredoKevin Roberts’ Credo

11. Ready. Fire! Aim.. Ready. Fire! Aim.2. If it ain’t broke ... Break it!2. If it ain’t broke ... Break it!3. Hire crazies.3. Hire crazies.4. Ask dumb questions.4. Ask dumb questions.5. Pursue failure.5. Pursue failure.6. Lead, follow ... or get out of the way!6. Lead, follow ... or get out of the way!7. Spread confusion.7. Spread confusion.8. Ditch your office.8. Ditch your office.9. Read odd stuff.9. Read odd stuff.

10. Avoid moderationAvoid moderation!!

““You can’t behave You can’t behave in a calm, rational in a calm, rational manner. You’ve got manner. You’ve got to be out there on to be out there on the the lunaticlunatic frinfringgee.”.”

— Jack Welch— Jack Welch

There is moreThere is more than one way to than one way to

skin a cat!*skin a cat!**Every project*Every project REQUIRESREQUIRES (if you’re smart)(if you’re smart) an an

outside look by one/some Seriously Weird Cat/soutside look by one/some Seriously Weird Cat/s——in pursuit of whacked-out options.in pursuit of whacked-out options.

14,00014,00020,00020,000

3030

14,000/14,000/eeBayBay20,000/Amazon20,000/Amazon

3030/Craigslist/Craigslist

““I doubt if more thanI doubt if more than one [ad] campaign in one [ad] campaign in a hundred contains a a hundred contains a

Big Idea.”* Big Idea.”* —David Ogilvy—David Ogilvy

*Big Idea source per DO: *Big Idea source per DO: “Stuff your conscious mind with “Stuff your conscious mind with information, then unhook your rational thought process.”information, then unhook your rational thought process.”

"Life is not a journey to the grave with the intention of arriving safely in one pretty

and well preserved piece, but to skid across the line

broadside, thoroughly used up, worn out, leaking oil,

shouting ‘GERONIMO!’ ” —Bill McKenna, professional motorcycle racer

(Cycle magazine 02.1982)

"The object of life's journey is not to arrive at the grave safely in a well

preserved body, but rather to skid in sideways, totally worn out, shouting, 'Holy Shit, What a Ride!!!’ ”

—Mavis Leyrer (feisty OCTOGENARIAN, living in Seattle)

““I WANT TO BE THOROUGHLY I WANT TO BE THOROUGHLY USED UP WHEN I DIE.USED UP WHEN I DIE. … Life is … Life is no ‘brief candle’ to me. It is a no ‘brief candle’ to me. It is a sort of splendid torch which I sort of splendid torch which I

have got hold of for the have got hold of for the moment, and I want to make it moment, and I want to make it

burn as brightly as possible burn as brightly as possible before handing it on to future before handing it on to future

generations.”generations.” —George Bernard Shaw—George Bernard Shaw

““If you ask me what I If you ask me what I have come to do in have come to do in

this world, I who am this world, I who am an artist, I will reply: an artist, I will reply: I I

am here to live my am here to live my life out loud.”life out loud.” — Émile Zola— Émile Zola

““If I had any epitaph that I If I had any epitaph that I would rather have more than would rather have more than any other, it would be to say any other, it would be to say

that I hadthat I had … …disturbed disturbed the sleethe sleep p of mof my y

ggenerationeneration.”.” —Adlai Stevenson—Adlai Stevenson

Wow!Wow!

““It’s just a fact …It’s just a fact …

Survivors Survivors underperform.”underperform.”

—Dick Foster—Dick Foster

““The difficulties … arise from the inherent The difficulties … arise from the inherent conflict between the need to control existing conflict between the need to control existing

operations and the need to create an operations and the need to create an environment that will permit new ideasenvironment that will permit new ideas to flourish—and old ones to die a timely to flourish—and old ones to die a timely

death. death. We believe that most We believe that most corcorpporations will find it imorations will find it imppossible to ossible to

match or outmatch or outpperform the marketerform the market without abandoninwithout abandoningg the assum the assumpption of tion of continuitcontinuity.y. … The current apocalypse—the … The current apocalypse—the

transition from a state of continuity to state of transition from a state of continuity to state of discontinuity—has the same suddenness [as the discontinuity—has the same suddenness [as the trauma that beset civilization in 1000 trauma that beset civilization in 1000 A.D.]”.]” ——Richard Foster & Sarah Kaplan, “Creative Destruction” (Richard Foster & Sarah Kaplan, “Creative Destruction” (The The

McKinsey QuarterlyMcKinsey Quarterly))

““You know, we can’tYou know, we can’t get out of life alive! We get out of life alive! We

can either die in the can either die in the bleachers or die on the bleachers or die on the field. We might as well field. We might as well come down on the field come down on the field

and go for it!”and go for it!” —Les Brown —Les Brown

(from (from Timeless WisdomTimeless Wisdom, compiled by Gary Fenchuk) , compiled by Gary Fenchuk)

????????????????

Built to LastBuilt to Lastvs./orvs./or

Built Built to to Rock Rock the the WorldWorld

““But what if [former head of strategic planner But what if [former head of strategic planner at Royal Dutch Shell] Arie de Geus is wrong in at Royal Dutch Shell] Arie de Geus is wrong in suggesting, in The Living Company, that firms suggesting, in The Living Company, that firms

should aspire to live forever? Greatness is should aspire to live forever? Greatness is fleeting and, for corporations, it will become fleeting and, for corporations, it will become

ever more fleeting. The ultimate aim of a ever more fleeting. The ultimate aim of a business organization, an artist, an athlete or a business organization, an artist, an athlete or a

stockbroker may be to stockbroker may be to exexpplode in a lode in a dramatic frenzdramatic frenzyy of value of value creation durincreation duringg a short a short

ssppace of timeace of time,, rather than to live rather than to live forever.” forever.” —Kjell Nordstr—Kjell Nordströöm and Jonas Ridderstråle,m and Jonas Ridderstråle,

Funky BusinessFunky Business

Built to Last v. Built to Flip:Built to Last v. Built to Flip: “The problem “The problem with ‘built to last’ is that it’s a with ‘built to last’ is that it’s a

romantic notion. Large companies romantic notion. Large companies are incapable of ongoing are incapable of ongoing

innovation, of ongoing flexibility.”innovation, of ongoing flexibility.”

““IncreasinglIncreasinglyy, successful , successful businesses will be ebusinesses will be epphemeral. hemeral.

TheTheyy will be built to will be built to yyield ield somethinsomethingg of value of value——and once that and once that

value has been exhausted, thevalue has been exhausted, theyy will vanishwill vanish.”.”

Source:Source: Fast Company Fast Company

Warren Bennis & Patricia Ward Warren Bennis & Patricia Ward Biederman/Biederman/Organizing GeniusOrganizing Genius::

Great Groups Great Groups Don’t Last Don’t Last Very LongVery Long!!

W.A. Mozart W.A. Mozart 1756 – 17911756 – 1791

HE CHANGED THE WORLDHE CHANGED THE WORLD

AND AND

ENRICHED HUMANITY ENRICHED HUMANITY

""Barn's burnt Barn's burnt down … now I down … now I can see the can see the

moon."moon." —Masahide, Japanese poet—Masahide, Japanese poet

““Never let Never let reality get in reality get in the way of the way of

imagination.imagination.”” —Azar Nafisi, author of —Azar Nafisi, author of Reading Lolita in TeheranReading Lolita in Teheran

Excellence.Excellence. Always. Always.

If notIf not Excellence,Excellence, what?what?

If notIf not ExcellenceExcellence now, when?now, when?

LONGExcellence.Always. Housing Leadership Summit 2011 Hanley Wood Business Media Tom Peters/Chicago/23 May 2011 (Slides at tompeters.com)

Documents

army slide

verdana slide

search of excellence

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considerationno matter

long shots people

stellar accomplishments