Why in Why in the the World did World did you you
Jan 07, 2016
Why in Why in the the World World did youdid you go to go to SiberiaSiberia??
EnterpriseEnterprise* (*at its best):* (*at its best): An An emotionalemotional, , vitalvital, , innovativeinnovative, , jojoyyfulful, , creativecreative, , entreentreppreneurialreneurial endeavor that elicits endeavor that elicits maximum maximum
concerted humanconcerted human potential in thepotential in the wholehearted pursuit of wholehearted pursuit of EXCELLENCE inEXCELLENCE in serviceservice of others of others.****Employees, Customers, Suppliers, Communities, Owners, Temporary partners**Employees, Customers, Suppliers, Communities, Owners, Temporary partners
Tom Peters’Tom Peters’
Re-Imagine:Re-Imagine:ExcellenceExcellence
NOWNOW!!PwC Annual Partners MeetingPwC Annual Partners Meeting
Campinas/20 August 2012Campinas/20 August 2012(slides @ tompeters.com; also see excellencenow.com)(slides @ tompeters.com; also see excellencenow.com)
Excellence/Excellence/Service/Service/
ImmoderationImmoderation
ExcellenceExcellence
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
Hard is Soft.Hard is Soft.Soft is Hard.Soft is Hard.
EXCELLENCE is EXCELLENCE is notnot an "aspiration.”an "aspiration.”
EXCELLENCE EXCELLENCE isis … … THE NEXT FIVE THE NEXT FIVE
MINUTES.MINUTES.
EXCELLENCE is not an "aspiration." EXCELLENCE is not an "aspiration." EXCELLENCE is … THE NEXT FIVE MINUTES.EXCELLENCE is … THE NEXT FIVE MINUTES.
EXCELLENCE is your next conversation.EXCELLENCE is your next conversation.Or not.Or not.EXCELLENCE is your next meeting.EXCELLENCE is your next meeting.Or not.Or not.EXCELLENCE is shutting up and listening—really listening.EXCELLENCE is shutting up and listening—really listening.Or not.Or not.EXCELLENCE is your next customer contact.EXCELLENCE is your next customer contact.Or not.Or not.EXCELLENCE is saying “Thank you” for something “small.”EXCELLENCE is saying “Thank you” for something “small.”Or not.Or not.EXCELLENCE is the next time you shoulder responsibility and apologize.EXCELLENCE is the next time you shoulder responsibility and apologize.Or not.Or not.EXCELLENCE is waaay over-reacting to a screw-up.EXCELLENCE is waaay over-reacting to a screw-up.Or not.Or not.EXCELLENCE is the flowers you brought to work today.EXCELLENCE is the flowers you brought to work today.Or not.Or not.EXCELLENCE is lending a hand to an “outsider” who’s fallen behind EXCELLENCE is lending a hand to an “outsider” who’s fallen behind schedule.schedule.Or not.Or not.EXCELLENCE is bothering to learn the way folks in finance [or IS or HR] EXCELLENCE is bothering to learn the way folks in finance [or IS or HR] think.think.Or not.Or not.EXCELLENCE is waaay “over”-preparing for a 3-minute presentation.EXCELLENCE is waaay “over”-preparing for a 3-minute presentation.Or not.Or not.EXCELLENCE is turning “insignificant” tasks into models of … EXCELLENCE. EXCELLENCE is turning “insignificant” tasks into models of … EXCELLENCE. Or not.Or not.
ServiceService
Organizations Organizations existexist to to serveserve. .
Period.Period.
Leaders Leaders livelive to to serveserve. Period.. Period.
ImmoderationImmoderation
14,00014,00020,00020,000
3030
14,000/14,000/eeBayBay20,000/Amazon20,000/Amazon
3030/Craigslist/Craigslist
““We all agree your We all agree your theory is crazy. The theory is crazy. The
question, which question, which divides us, is divides us, is
whether it is crazy whether it is crazy enough.”enough.” —Niels Bohr, to Wolfgang Pauli—Niels Bohr, to Wolfgang Pauli
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!!
““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
“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
The Word The Word according to according to
Mr. HiltonMr. 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.”.”
““Execution Execution isis strategy.”strategy.”
—Fred Malek—Fred Malek
““In real life, strategyIn real life, strategy is actually very is actually very
straightforward. Pickstraightforward. Pick a general direction a general direction … … andand imimpplementlement likelike hellhell.”.” —Jack Welch—Jack Welch
A Professional A Professional Just Like You?Just Like You?
““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.]
Message:Message: Listening is a Listening is a … …
professionprofession!!
Complain allComplain all you want, you want,
buT …buT …
Complain allComplain all you want,you want,
but but meetinmeetinggss are whatare what you you dodo!!
Meeting:Meeting: EverEveryy meetin meetingg that that does not stir the imadoes not stir the imaggination ination
and curiosity of attendees and and curiosity of attendees and increase bondinincrease bondingg and co- and co-
oopperation and eneration and enggaaggement ement and sense of worth and and sense of worth and
motivate ramotivate rappid action and id action and enhance enthusiasm is a enhance enthusiasm is a
ppermanentlermanentlyy lost o lost opppportunitortunity.y.
FYI:FYI: This is … This is … notnot … a rant about … a rant about
“conducting “conducting better meetings.”better meetings.”
Remember Remember what your what your
grandmother grandmother Told You …Told You …
““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)
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.
Cross-border Cross-border ConversationsConversations
““I am I am hundreds of hundreds of times better heretimes better here [than in my [than in my
prior hospital assignment]prior hospital assignment] because of the because of the support system. support system. It’s like It’s like yyou ou were workinwere workingg in an or in an orgganism;anism; yyou are not a sinou are not a singgle cell when le cell when yyou are out there ou are out there ppracticinracticingg.’”.’”
—quote from Dr. Nina Schwenk, in Chapter 3, —quote from Dr. Nina Schwenk, in Chapter 3, “Practicing “Practicing Team Medicine,”Team Medicine,” from Leonard Berry & Kent Seltman, from Leonard Berry & Kent Seltman,
from from Management Lessons FromManagement Lessons From Mayo ClinicMayo Clinic
"It became necessary to develop "It became necessary to develop medicine as a cooperative science; medicine as a cooperative science;
the clinician, the specialist, the the clinician, the specialist, the laboratory workers, the nurses laboratory workers, the nurses
uniting for the good of the patient, uniting for the good of the patient, each assisting in the elucidation of each assisting in the elucidation of
the problem at hand, and each the problem at hand, and each dependent upon the other for dependent upon the other for
support.”support.” —Dr. William Mayo, —Dr. William Mayo, 19101910
"The personnel committees on all "The personnel committees on all three campuses have become three campuses have become
aggressive in addressing the issue aggressive in addressing the issue of physicians who are not living of physicians who are not living
the Mayo value of exhibiting the Mayo value of exhibiting respectful, collegial behavior to all respectful, collegial behavior to all team members. team members. Some phSome phyysicians sicians
have been sushave been susppended without ended without ppaayy or terminatedor terminated.”.” —Leonard Barry & Kent Seltman, —Leonard Barry & Kent Seltman,
Management Lessons from Mayo ClinicManagement Lessons from Mayo Clinic
““Observed closely: Observed closely:
The use of The use of ‘I’‘I’ or or
‘we’‘we’ during a during a job interview.”job interview.”
Source: Leonard Berry & Kent Seltman, chapter 6, “Hiring for Values,” Source: Leonard Berry & Kent Seltman, chapter 6, “Hiring for Values,” Management Lessons From Mayo ClinicManagement Lessons From Mayo Clinic
““Allied commands depend on Allied commands depend on mutual confidence mutual confidence
and this confidence is and this confidence is gained, above all gained, above all
through thethrough the
develodeveloppmentment ofof friendshifriendshippss.”.”
——General D.D. Eisenhower, General D.D. Eisenhower, Armchair GeneralArmchair General* *
*“Perhaps his most outstanding ability [at West Point]*“Perhaps his most outstanding ability [at West Point]
was the ease with which was the ease with which he made friends and earned he made friends and earned the trust of fellow cadets who came from the trust of fellow cadets who came from
widelwidelyy varied back varied backggroundsrounds; it was a quality that would pay ; it was a quality that would pay great dividends during his future coalition command.”great dividends during his future coalition command.”
R.O.I.R. R.O.I.R. >>
R.O.I.R.O.I.
RReturn eturn OOn n
IInvestment In nvestment In
RRelationshipselationships
““Success doesn’t depend on the number of Success doesn’t depend on the number of people you know; it depends on the number people you know; it depends on the number
of people you know in of people you know in hihigghh places!”places!”
oror
“Success doesn’t depend on the number of “Success doesn’t depend on the number of people you know; it depends on the number people you know; it depends on the number
of people you know in of people you know in lowlow places!” places!”
““I got to know his I got to know his [Icahn’s][Icahn’s] secretaries. secretaries. They are always They are always the keepers of the keepers of everything.”everything.”
—Dick Parsons, then CEO Time Warner, on —Dick Parsons, then CEO Time Warner, on dealing with an Icahn threat to his companydealing with an Icahn threat to his company
XFX = XFX = #1#1**
*Cross-Functional *Cross-Functional eXcellence eXcellence
No Shortcuts!No Shortcuts!
““If I could have chosen not to tackle the IBM If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My culture head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis bias coming in was toward strategy, analysis and measurement. In comparison, changing and measurement. In comparison, changing the attitude and behaviors of hundreds of the attitude and behaviors of hundreds of
thousands of people is very, very hard.thousands of people is very, very hard. [Yet] I came to see in my time at IBM that culture
isn’t just one aspect of the
game ——itit is theis the gamegame.”.” —Lou Gerstner, —Lou Gerstner, Who Says Elephants Can’t DanceWho Says Elephants Can’t Dance
““The 7-S Model”The 7-S Model”
StrategyStrategyStructureStructureSystemsSystems
StyleStyleSkillsSkillsStaffStaff
Super-ordinate goalSuper-ordinate goal
““The 7-S Model”The 7-S Model”
“Hard S“Hard Sss”” (Strategy, Structure, Systems)(Strategy, Structure, Systems)
“Soft S“Soft SSS”” (Style, Skills, Staff, Super-ordinate goal)(Style, Skills, Staff, Super-ordinate goal)
““The 7-S Model”The 7-S Model”
StrategyStrategyStructureStructureSystemsSystems
StyleStyle (Corporate “Culture,” “The (Corporate “Culture,” “The wayway
we do things around here”) we do things around here”)SkillsSkills (“Distinctive Competence/s”) (“Distinctive Competence/s”)
StaffStaff (People-Talent) (People-Talent)Super-ordinate goalSuper-ordinate goal (Vision, (Vision,
Core Values)Core Values)
Which Which customers customers
first?first?
““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)
… … no less than no less than CathedralsCathedrals
in which the full and in which the full and awesome power of the awesome power of the
Imagination and Spirit and Imagination and Spirit and native Entrepreneurial flairnative Entrepreneurial flair
of diverse individualsof diverse individuals is is unleashed in passionate unleashed in passionate pursuit of … pursuit of … ExcellenceExcellence..
““Business has to give people enriching, Business has to give people enriching,
rewarding lives … rewarding lives … or it's or it's simply not simply not
worth worth doingdoing.”.”
——Richard BransonRichard Branson
"Leadership is a gift. "Leadership is a gift. It's given by those It's given by those
who follow. You who follow. You have to be worthy of have to be worthy of
it.”it.” ——USAF General Mark WalshUSAF General Mark Walsh
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
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 longshots (people with “a certain something”) you bet on whoThe longshots (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.”
The Memories That MatterThe Memories That Matter
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.)
The Memories That MatterThe Memories That Matter
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.”
Joe J. Jones Joe J. Jones 1942 – 2010 1942 – 2010
Net WorthNet Worth
$21,543,672.48$21,543,672.48
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 Better men than
himself.himself.Source: Peter Drucker, Source: Peter Drucker, The Practice of ManagementThe Practice of Management
starts at homestarts at home
““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)
““How can a high-level leader like _____ be so How can a high-level leader like _____ be so out of touch with the truth about himself? It’s out of touch with the truth about himself? It’s
more common than you would imagine. more common than you would imagine. In fact, the higher up the
ladder a leader climbs, the less accurate his self-
assessment is likely to be. The problem is an acute lack of feedback The problem is an acute lack of feedback
[especially on people issues].”[especially on people issues].”
—Daniel Goleman (et al.), —Daniel Goleman (et al.), The New LeadersThe New Leaders
"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
You are What You are What You EatYou Eat
““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 “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’ ” ”
““Who’s the most Who’s the most interesting person interesting person
you’ve met in the last you’ve met in the last 90 days? How do I90 days? How do I
get in touch with her get in touch with her
or him?”or him?” —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.”
““Do one thing Do one thing every day that every day that scares you.”scares you.”
—Eleanor Roosevelt
“The The Bottleneck Bottleneck
……
“The Bottleneck The Bottleneck … Is at … Is at
the Top of the the Top of the Bottle”Bottle”
“Where are you likely to find people “Where are you likely to find people with the with the least diversitleast diversityy of ex of expperienceerience, ,
the the larlarggest investment in the est investment in the ppastast,, and the g and the greatest reverence for reatest reverence for
industrindustryy do doggmama … …
AtAt thethe totop!”p!”
— Gary Hamel/— Gary Hamel/Harvard Business ReviewHarvard Business Review
1/461/461/4091/409
66
Lesson46:Lesson46: WTTMTWWTTMTW
WhoeverWhoeverTriesTriesTheTheMostMostThingsThingsWinsWins
Better yet:Better yet: WTTMTWTTMTTFTFWW
WhoeverWhoeverTriesTriesTheTheMostMostThingsThingsTheTheFastestFastestWinsWins
““We made mistakes, of course. Most of them were We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the omissions we didn’t think of when we initially wrote the
software. software. We fixed them by doing it over and over, We fixed them by doing it over and over, again and again.again and again. We do the same today. While our We do the same today. While our competitors are still sucking their thumbs trying to competitors are still sucking their thumbs trying to
make the design perfect, we’re already on prototype make the design perfect, we’re already on prototype
versionversion ##55.. By the time our rivals are ready By the time our rivals are ready
with wires and screws, we are on version with wires and screws, we are on version
##1010.. It gets back to It gets back to planning versus actingplanning versus acting: : We act We act from day onefrom day one; ; others plan how others plan how
toto planplan——for monthsfor months.”.”
——Bloomberg by BloombergBloomberg by Bloomberg
Change lever #1: Change lever #1:
The power of The power of “Small wins”!“Small wins”!
““You miss You miss
100100%%
of the shots of the shots you never you never
take.”take.” —Wayne—Wayne GretzkyGretzky
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
Obvious Obvious
““Forget Forget ChinaChina, , IndiaIndia and the and the InternetInternet: :
Economic Growth Is Economic Growth Is Driven by Driven by
WomenWomen.”.”
Source: Headline, Economist
W W == 28T 28T >> 2(C 2(C + I)+ I)**
*Women = *Women = $28 trillion$28 trillion > twice China + India combined > twice China + India combined
““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
GREAT GREAT Professional Professional Service FirmsService Firms
1. Stunning commitment to 1. Stunning commitment to integrityintegrity..2. 2. Counselors/trusted advisorsCounselors/trusted advisors first. first.
3. 3. We areWe are not not not notnot not not not in a commodity in a commodity businessbusiness. (If it . (If it isis a “commodity business,” then I/Tom a “commodity business,” then I/Tom Peters am a commodity?)Peters am a commodity?)
4. Stellar4. Stellar listeners listeners —to our Clients. —to our Clients. 5. Stellar 5. Stellar listenerslisteners—to our fellow partners. —to our fellow partners. 6. Stellar 6. Stellar listenerlisteners—to our most junior associates. (!!!!!)s—to our most junior associates. (!!!!!)7. Stellar 7. Stellar listenerslisteners—to every member of staff. —to every member of staff. 8. Insatiable 8. Insatiable curiositycuriosity marks 100% of us. marks 100% of us.
9. We live to 9. We live to serveserve// Extreme ServiceExtreme Service ethic ethic..10. Our leaders are 10. Our leaders are servant leadersservant leaders. (Every partner is a . (Every partner is a leader/servant leader first.)leader/servant leader first.)11. Deeply ingrained sense of 11. Deeply ingrained sense of fairnessfairness..12. Hustlers—but thoughtful to a fault!12. Hustlers—but thoughtful to a fault!13. “Service ethic” means … 13. “Service ethic” means … serviceservice toto oneone anotheranother as as much as service to clients!much as service to clients!
14. 14. Drop everything to assist a colleague in needDrop everything to assist a colleague in need——central to our overall ethos.central to our overall ethos.15. A compensation scheme that unmistakably and 15. A compensation scheme that unmistakably and visibly and dramatically visibly and dramatically rewards partner co-operationrewards partner co-operation in developing and serving and retaining clients. in developing and serving and retaining clients.
16. 16. Toss “lousy colleagues” [bad Toss “lousy colleagues” [bad teammates] out on their derrieresteammates] out on their derrieres.. We will not tolerate less than class-A supportiveness; We will not tolerate less than class-A supportiveness; we will toss out top “rainmakers” who do not subscribe we will toss out top “rainmakers” who do not subscribe to our abiding teamwork ethic.to our abiding teamwork ethic.
17. 17. Intellectual point of view that is Intellectual point of view that is Distinct/Exciting/Constantly Distinct/Exciting/Constantly refreshedrefreshed..18. We listen intently, but we also 18. We listen intently, but we also push our clientspush our clients to to explore significantly new approaches to doing business.explore significantly new approaches to doing business.19. We insist, as best we can, that every client consider 19. We insist, as best we can, that every client consider and testand test discontinuous discontinuous change. change.
20. We understand that implementing our advice may 20. We understand that implementing our advice may require “culture change” in the client’s operation; require “culture change” in the client’s operation; we we will leave a practical framework-process behind to help will leave a practical framework-process behind to help the client embrace and execute such excruciatingly the client embrace and execute such excruciatingly difficult change.difficult change.21. We will stretch our clients to the limits—21. We will stretch our clients to the limits—but not but not suggest actions that are beyond the reach of suggest actions that are beyond the reach of implementation in the mid-term future.implementation in the mid-term future. (“Never give an (“Never give an order that cannot be obeyed.”—MacArthur.)order that cannot be obeyed.”—MacArthur.)22. We will intimately assist the client in achieving 22. We will intimately assist the client in achieving near-term near-term “small wins”“small wins” that signify and exemplify the that signify and exemplify the changes the client intends to embrace.changes the client intends to embrace.23. Every partner must have a point of view of note—23. Every partner must have a point of view of note—and a point of view that is recognized far beyond our and a point of view that is recognized far beyond our firm’s borders.firm’s borders.
24. 24. The definition of the very best The definition of the very best partners is that they are “insanely partners is that they are “insanely great” great” (thanks, Steve Jobs)(thanks, Steve Jobs) mentorsmentors!!25. 25. Equal compensation/recognition to top Equal compensation/recognition to top “rainmakers,” “intellectuals,” and “magical mentors.”“rainmakers,” “intellectuals,” and “magical mentors.”
26. We are all “rainmakers”—responsible for making it 26. We are all “rainmakers”—responsible for making it clear to the client that he-she made a great decision in clear to the client that he-she made a great decision in associating with us. associating with us.
27. 27. Invest heavily in ideas—this means Invest heavily in ideas—this means significant time and $$$$$$$.significant time and $$$$$$$.28. Invest heavily in training and retraining. (Our 28. Invest heavily in training and retraining. (Our training will feature working with clients to implement training will feature working with clients to implement our ideas, the managerial aspect of directing client our ideas, the managerial aspect of directing client engagements, the theory and art and practice of engagements, the theory and art and practice of leadership, listening and presenting, and understanding leadership, listening and presenting, and understanding the “business principals” that are essential to our the “business principals” that are essential to our economic survival.)economic survival.)29. Technology pioneers. (Yes, “pioneers.”)29. Technology pioneers. (Yes, “pioneers.”)
30. 30. A decent/significant share of A decent/significant share of oddballs/disturbers-of-the-peace.oddballs/disturbers-of-the-peace. (Often (Often irritating people; get over it.)irritating people; get over it.)31. Relatively high turnover and very high diversity 31. Relatively high turnover and very high diversity (background, gender, etc.) in top leadership posts and (background, gender, etc.) in top leadership posts and committees.committees.
32. Quality >> Quantity. (Big is fine as a byproduct of Great 32. Quality >> Quantity. (Big is fine as a byproduct of Great Work. “Big for big’s sake” is Work. “Big for big’s sake” is unun-fine; economies of scale are -fine; economies of scale are over-rated.)over-rated.)33. 33. Significant portfolio of “interesting” clients.Significant portfolio of “interesting” clients. (I.e. (I.e. clients that lead us-drag us into new pastures.)clients that lead us-drag us into new pastures.)34. A clear understanding that the “middle market” is 34. A clear understanding that the “middle market” is often the key to success and vitality—often the key to success and vitality—we will not be we will not be conned by some specious/ego-centric need to be conned by some specious/ego-centric need to be associated with the likes of the “Fortune 100.” associated with the likes of the “Fortune 100.” 35. 35. Willingness to dump bad-demotivating-enervating Willingness to dump bad-demotivating-enervating clientsclients (even big ones). (even big ones). 36. Understand that we are running a 36. Understand that we are running a for-profit for-profit enterpriseenterprise. Cash flow matters! (A lot.). Cash flow matters! (A lot.)
37. 37. In love with our work!In love with our work! (Expunge those who (Expunge those who are not in love with their work—dump the burnouts.)are not in love with their work—dump the burnouts.)38. 38. Sense of fun.Sense of fun. (Yes, damn it.) (Make it a fun place to (Yes, damn it.) (Make it a fun place to work—David Ogilvy.)work—David Ogilvy.)39. Professional to a fault 39. Professional to a fault (we love the word (we love the word “professional”)“professional”) …. but not pompous. …. but not pompous.40. “d”iversity—40. “d”iversity—diversity of every flavor one can diversity of every flavor one can imagineimagine. .
41. Notable-visible respect for the ideas of young 41. Notable-visible respect for the ideas of young
associates. associates. (!!!!!!)(!!!!!!)42. 42. Practice-as-teamwork.Practice-as-teamwork. (Teammate-ism rewarded, lack (Teammate-ism rewarded, lack thereof punished with extreme prejudice.)thereof punished with extreme prejudice.)43. Deep bench. “Supporting cast,” notably starting with 43. Deep bench. “Supporting cast,” notably starting with receptionist, must be of same quality as partners—receptionist, must be of same quality as partners—
there are no “bit players” in our there are no “bit players” in our business!business!44. 44. Age gracefully gives way to youthAge gracefully gives way to youth—regeneration a—regeneration adeep-seated guiding belief.deep-seated guiding belief.45. 45. Youth gracefully gives way to ageYouth gracefully gives way to age—our most effective —our most effective elders have much to teach us when, especially, it comes elders have much to teach us when, especially, it comes to client retention.to client retention.46. Hard work expected and cherished—46. Hard work expected and cherished—workaholism for workaholism for workaholism’s sake assiduously guarded againstworkaholism’s sake assiduously guarded against..47. Proud of our culture, guard our culture zealously—47. Proud of our culture, guard our culture zealously—but but eveneven “g “great cultures”reat cultures” aaggee. (And at the least become . (And at the least become horribly elaborated.)horribly elaborated.)48. Rigorous evaluations of client satisfaction by more or 48. Rigorous evaluations of client satisfaction by more or less disinterested parties.less disinterested parties.49. 49. Sky-high time investment in our evaluation processSky-high time investment in our evaluation process..
50. My legacy (as a partner) is:50. My legacy (as a partner) is:
Being “of service.” Being “of service.” Developing people. Developing people. Being a good colleague—which absorbed Being a good colleague—which absorbed lots of my time. lots of my time. Doing consistently superior (sky high) Doing consistently superior (sky high) quality work. quality work. Adding materially to the ideas base of Adding materially to the ideas base of thethe Firm.Firm. Insuring the continuity of the firm— Insuring the continuity of the firm— culturally and financially. culturally and financially. Being a paragon of integrity and Being a paragon of integrity and decency. decency. Leaving gracefully. Leaving gracefully.
51. 51. “Execution is strategy.”“Execution is strategy.” (Thanks, Fred (Thanks, Fred Malek.)Malek.)52. My word is my bond.52. My word is my bond.
53. 53. Wow!Wow! (Why not? What else?) (Why not? What else?)
54. 54. Excellence!Excellence! PERIOD! (Why not? PERIOD! (Why not? What else?)What else?)
55. 55. “Be the best. It’s the “Be the best. It’s the only market that’s not only market that’s not crowded.”crowded.” —George Whalin—George Whalin
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
Excellence.Excellence. Always. Always.
If notIf not Excellence,Excellence, what?what?
If notIf not ExcellenceExcellence now, when?now, when?