World Business Forum Milano 2013 Tom Peters

LONGLONG

Tom Peters’Tom Peters’

Re-ImagineRe-Imagine

EXCELLENCEEXCELLENCE!!

World Business ForumWorld Business ForumMilano/05 November 2013Milano/05 November 2013

((Also see our 23-part Master Presentation at excellencenow.com)Also see our 23-part Master Presentation at excellencenow.com)

The WorldThe WorldCirca 2013Circa 2013

““Train Passengers Train Passengers Too Distracted By Too Distracted By Phones to Notice Phones to Notice

Gunman”Gunman”

—Headline, HuffingtonPost, 1009.13—Headline, HuffingtonPost, 1009.13

Conrad Conrad Hilton …Hilton …

CONRADCONRAD HILTONHILTON, at a gala celebrating, at a gala celebrating his career, was called to the podium and his 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. straightforward. Pick a generalPick a general

direction direction … … andand imimpplementlement

likelike hellhell.”.” —Jack Welch—Jack Welch

““EXECUTIONEXECUTION IS IS THETHE JOBJOB OF OF

THE BUSINESS THE BUSINESS LEADERLEADER.”.”——Larry BossidyLarry Bossidy & Ram

Charan/ Execution: The Discipline of Getting Things Done

““The art of war does not The art of war does not require complicated require complicated

maneuvers; the simplest are maneuvers; the simplest are the best and common sense is the best and common sense is fundamental. From which one fundamental. From which one

might wonder how it is might wonder how it is

generals make blunders; generals make blunders; itit is because theis because theyy tr tryy to to

be cleverbe clever.”.” —Napoleon—Napoleon

“ … “ … almost almost inhuman inhuman

disinterestedness disinterestedness in strategy”in strategy” —Josiah Bunting —Josiah Bunting

on on U.S. GrantU.S. Grant (from (from Ulysses S. GrantUlysses S. Grant))

““When assessing candidates, the first When assessing candidates, the first thing I looked for was energy and thing I looked for was energy and

enthusiasm for execution. enthusiasm for execution. Does Does she talk about the thrill she talk about the thrill of of ggettinettingg thin thinggs done, s done,

the obstacles overcome, the obstacles overcome, the role her the role her ppeoeopple le pplalayyeded —or does she keep —or does she keep wandering back to strategy or wandering back to strategy or

philosophy?”philosophy?” —Larry Bossidy, —Larry Bossidy, ExecutionExecution

WOWWOW!!!!Observed closely: The use ofObserved closely: The use of

“I”“I” oror “We”“We” during aduring 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

GRINGRIN!!

GGeneticsenetics

RRoboticsobotics

IInformaticsnformatics

NNanotechnology*anotechnology*

*Decision *Decision #1#1: GRIN and : GRIN and BEARBEAR it? GRIN and it? GRIN and SAVORSAVOR it? it?

““Human level Human level capability has not capability has not turned out to be a turned out to be a special stopping special stopping

point from an point from an engineering engineering

perspective. ….”perspective. ….”

Source: Illah Reza Nourbakhsh, Professor of Robotics, Carnegie Mellon, Source: Illah Reza Nourbakhsh, Professor of Robotics, Carnegie Mellon, Robot Robot FuturesFutures

1,000,0001,000,000500:1500:1

““The root of our problem is notThe root of our problem is not that we’re in a Great Recessionthat we’re in a Great Recession

or a Great Stagnation, but ratheror a Great Stagnation, but rather that we are in the early that we are in the early

throes of a throes of a Great Restructuring. .

Our technologies are racing ahead,Our technologies are racing ahead, but our skills and organizationsbut our skills and organizations

are lagging behind.”are lagging behind.”

Source:Source: Race AGAINST the Machine, Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfeeErik Brynjolfsson and Andrew McAfee

China China tootoo/Foxconn:/Foxconn:

1,000,000 1,000,000 robots in next robots in next

3 years3 yearsSource:Source: Race AGAINST the Machine, Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfeeErik Brynjolfsson and Andrew McAfee

Legal industry/Pattern Recognition/Legal industry/Pattern Recognition/Discovery (e-discovery algorithms):Discovery (e-discovery algorithms):

500500 lawyers to … lawyers to …

ONESource:Source: Race AGAINST the Machine, Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfeeErik Brynjolfsson and Andrew McAfee

““Algorithms have already written symphonies Algorithms have already written symphonies as moving as those composed by as moving as those composed by

Beethoven, picked through legalese , picked through legalese

with the deftness of a senior with the deftness of a senior law partner, diagnosed patients with more , diagnosed patients with more

accuracy than a accuracy than a doctor, written news , written news

articles with the smooth hand of a seasonedarticles with the smooth hand of a seasoned reporter, and driven vehicles on urban , and driven vehicles on urban

highways with far better control than a human highways with far better control than a human

driver.”.”

——Christopher Steiner,Christopher Steiner, Automate This: How Algorithms Came to Rule the World

““Meet Your Meet Your Next Surgeon: Next Surgeon:

Dr. Robot”Dr. Robot”Source: Feature/Source: Feature/FortuneFortune/15 JAN 2013/on Intuitive Surgical’s/15 JAN 2013/on Intuitive Surgical’s

da Vincida Vinci /multiple bypass heart-surgery /multiple bypass heart-surgery

robotrobot

Robot Wars!Robot Wars!

“The combination of new “The combination of new market rules and new market rules and new

technology was turning technology was turning the stock market into, in the stock market into, in

effect, effect, a war of a war of robotsrobots.”.” —Michael Lewis, “Golman’s —Michael Lewis, “Golman’s

Geek Tragedy,” Geek Tragedy,” Vanity FairVanity Fair, 09.13, 09.13

Post-Great Recession: Post-Great Recession:

Equipment Equipment expenditures +26% expenditures +26%

Payrolls flat

Source:Source: Race AGAINST the Machine, Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfeeErik Brynjolfsson and Andrew McAfee

Circa 3013: And Circa 3013: And YOUTH YOUTH Shall Lead Us …Shall Lead Us …

60 IS THE NEW 40!60 IS THE NEW 40!70 IS THE NEW 50!70 IS THE NEW 50!

And/Or …And/Or …

35 IS THE NEW 6535 IS THE NEW 65?*?*

**PacePace of obsolescence of obsolescence STAGGERINGSTAGGERING//ACCELERATINGACCELERATING

““Human Human creativitycreativity

is the ultimate is the ultimate economic economic

resource.”resource.” —Richard Florida—Richard Florida

Social BusinessSocial Business & Customer & Customer EngagementEngagement

““Customer engagement is Customer engagement is moving from relatively isolated moving from relatively isolated market transactions to deeply market transactions to deeply connected and sustained social connected and sustained social relationships. relationships. This basic chanThis basic changge e in how we do business will make in how we do business will make

an iman imppact on act on jjust about ust about evereveryythinthingg we do we do.”.”

Social Business By Design: Transformative Social Media StrategiesSocial Business By Design: Transformative Social Media Strategies For the Connected CompanyFor the Connected Company —Dion Hinchcliffe & Peter Kim —Dion Hinchcliffe & Peter Kim

Marbles, a Ball and Social Employees ay IBM Marbles, a Ball and Social Employees ay IBM

““Picture a ball and a bag of marbles side by side. The Picture a ball and a bag of marbles side by side. The two items might have the same volume—that is, if two items might have the same volume—that is, if

you dropped them into a bucket, they would sisplace you dropped them into a bucket, they would sisplace the same amount of water. The difference, however, the same amount of water. The difference, however,

lies in the surface area, lies in the surface area, Because a baBecause a bagg of of marbles is commarbles is compprised of several individual rised of several individual

ppieces, the combined surface area of all the ieces, the combined surface area of all the marbles far outstrimarbles far outstripps the surface area of a s the surface area of a

sinsinggle ballle ball. The expanded surface area represents a . The expanded surface area represents a social brand’s increased diversity. These surfaces social brand’s increased diversity. These surfaces

connect and interact with each other in unique ways, connect and interact with each other in unique ways, offering customers and employees alike a variety of offering customers and employees alike a variety of paths toward a myriad of solutions. If none of the paths toward a myriad of solutions. If none of the paths prove to be suitable, social employees can paths prove to be suitable, social employees can

carve out new paths on their own.”carve out new paths on their own.” —Ethan McCarty, Director of —Ethan McCarty, Director of

Enterprise Social Strategy, IBM (from Cheryl Burgess & Mark Burgess, Enterprise Social Strategy, IBM (from Cheryl Burgess & Mark Burgess, The Social The Social EmployeeEmployee

IBM Social Business Markers/2005-2012IBM Social Business Markers/2005-2012

*433,000 employees on IBM *433,000 employees on IBM ConnectionConnection*26,000 individual blogs*26,000 individual blogs*91,000 communities*91,000 communities*62, ooo wikis*62, ooo wikis*50,000,000 IMs/day*50,000,000 IMs/day*200,000 employees on Facebook*200,000 employees on Facebook*295, 000 employees/800,000 *295, 000 employees/800,000 followersfollowers of the brandof the brand*35,000 on Twitter*35,000 on Twitter

Source: IBM case, in Cheryl Burgess & Mark Burgess, Source: IBM case, in Cheryl Burgess & Mark Burgess, The Social EmployeeThe Social Employee

SB/SESB/SE > SM*> SM*

*“Social *“Social BUSINESSBUSINESS”/“Social ”/“Social EMPLOYEEEMPLOYEE”/“Social Media””/“Social Media”

““Gamification”:Gamification”:Ultimate Ultimate

ENGAGEMENT ENGAGEMENT ToolTool

Gamification Gamification

“Gamification presents “Gamification presents

the the best tools best tools humanithumanityy has ever has ever

hadhad to create and to create and sustain engagement in sustain engagement in

people.” people.” Source: Gabe Zichermann & Joselin Linder, Source: Gabe Zichermann & Joselin Linder, Gamification: How Leaders Gamification: How Leaders

Leverage Game Mechanics to Crush the Competition Leverage Game Mechanics to Crush the Competition

It Ain’t About the Ws and Ls!It Ain’t About the Ws and Ls!

““Fun from games arises out of Fun from games arises out of

mastermasteryy. It arises out of . It arises out of

comcompprehensionrehension. It is the. It is the

act of act of solvinsolving pg puzzlesuzzles that makes games fun. In other that makes games fun. In other

words, with games, words, with games, learninlearningg is the drug.”is the drug.” —Raph Koster, —Raph Koster, A Theory of Fun For Game DesignersA Theory of Fun For Game Designers

BIG DATABIG DATA

““Predictions Predictions based on based on

correlationscorrelations lie lie at the heart of at the heart of

big data.”big data.”Source:Source: Big Data: A Revolution That Will Transform How We Live, Big Data: A Revolution That Will Transform How We Live,

Work, and Think, Work, and Think, by Viktor Mayer-Schonberger and Kenneth Cukierby Viktor Mayer-Schonberger and Kenneth Cukier

““Flash forward to dystopia. You work in a chic Flash forward to dystopia. You work in a chic cubicle, sucking chicken-flavor sustenance fromcubicle, sucking chicken-flavor sustenance from

a tube. You’re furiously maneuvering with a a tube. You’re furiously maneuvering with a joystick … Your boss stops by and gives you a joystick … Your boss stops by and gives you a

look. look. ‘We need to talk about your loyalty to this ‘We need to talk about your loyalty to this

company.’company.’ The organization you The organization you work for has deduced that you work for has deduced that you

are considering quitting. It are considering quitting. It predicts your plans and predicts your plans and

intentions, pintentions, possiblossiblyy before before yyou ou have even conceived themhave even conceived them.”.” —Eric —Eric

Siegel,Siegel, Predictive Analytics: Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie, or Die The Power to Predict Who Will Click, Buy, Lie, or Die (based on a real case, an (based on a real case, an

HP “Flight risk” PA model developed by HR, with astronomical savings potential)HP “Flight risk” PA model developed by HR, with astronomical savings potential)

The Crowd Sourced Performance ReviewThe Crowd Sourced Performance Review

““By harnessing the ‘wisdom of crowds,’ By harnessing the ‘wisdom of crowds,’ many subjective observations taken many subjective observations taken

together provide a more objective and together provide a more objective and accurate picture of an employee’s accurate picture of an employee’s

performance than a single subjective performance than a single subjective judgement. It averages out prejudice judgement. It averages out prejudice

or baggage on the part of both or baggage on the part of both

manager and employee.”manager and employee.” ——Eric Mosley, Eric Mosley, The Crowd The Crowd

Sourced Performance ReviewSourced Performance Review

Our Judgement Is Usually … Sub-parOur Judgement Is Usually … Sub-par

“There is now [1996] a meta-analysis of “There is now [1996] a meta-analysis of studies of the comparative efficacy of studies of the comparative efficacy of

clinical judgment and actuarial clinical judgment and actuarial prediction methods. … prediction methods. … Of 136 research Of 136 research

studies from a wide varietstudies from a wide varietyy of of ppredictive redictive

domains,domains, not more than not more than 55 ppercent ercent

show the clinician’s show the clinician’s ppredictive redictive pprocedure rocedure to be more accurate than a statistical to be more accurate than a statistical

oneone.”.”

Source: Paul Meehl, Clinical versus Statistical Prediction ; Source: Paul Meehl, Clinical versus Statistical Prediction ; from Daniel Kahneman, from Daniel Kahneman, Thinking, Fast and Slow Thinking, Fast and Slow (1/25)(1/25)

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 PropertiesProperties

““Breakthrough” 82*Breakthrough” 82*

People! People! Customers! Customers!

Action! Action! ValuesValues! !

**In Search of ExcellenceIn Search of Excellence

Hard is Soft.Hard is Soft.Soft is Hard.Soft is Hard.

““Why in the Why in the World did youWorld did 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

““In a world where customers wake up In a world where customers wake up every morning asking, ‘What’s new, every morning asking, ‘What’s new, what’s different, what’s amazing?’ what’s different, what’s amazing?’

success desuccess deppends on a ends on a comcomppananyy’s abilit’s abilityy to unleash to unleash initiative, imainitiative, imaggination and ination and ppassion of emassion of empploloyyees at all ees at all

levelslevels —and this can only happen if all —and this can only happen if all those folks are connected heart and soul those folks are connected heart and soul

to their work [their ‘calling’], their to their work [their ‘calling’], their company and their mission.”company and their mission.” —John Mackey and —John Mackey and

Raj Sisoda,Raj Sisoda, Conscious Capitalism: Conscious Capitalism: Liberating the Heroic Spirit of BusinessLiberating the Heroic Spirit of Business

““If I could have chosen not to tackle the IBM culture head-If I could have chosen not to tackle the IBM culture head-on,on,

I probably wouldn’t have. My bias coming in was toward I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of changing the attitude and behaviors of hundreds of

thousands of people is very, very hard.thousands of people is very, very hard. Yet I Yet I came to see in my time at came to see in my time at IBM that IBM that cultureculture isn’t just isn’t just

one aspect of the game one aspect of the game ——IT IS THE IT IS THE GGAMEAME.”.”

——Lou Gerstner, Lou Gerstner, Who Says Elephants Can’t DanceWho Says Elephants Can’t Dance

WSJ/0910.13:WSJ/0910.13: “What matters most “What matters most to a company over time? to a company over time?

Strategy or culture? Strategy or culture?

Dominic Barton, MD, McKinsey & Co.:Dominic Barton, MD, McKinsey & Co.:

“Culture.“Culture.””

““Mr. Watson, how Mr. Watson, how long does it take long does it take

to achieve to achieve Excellence?”Excellence?”

““11 minute”minute”

Leading …Leading …

MBWAMBWA

2525

3K3K//5M5MSource: Mark McCormackSource: Mark McCormack

5050

““Most managers spend a great deal of time thinking about what they plan to do, but relatively little time thinking about Most managers spend a great deal of time thinking about what they plan to do, but relatively little time thinking about what they plan not to do. As a result, they become so caught up … in fighting the fires of the moment that they cannot what they plan not to do. As a result, they become so caught up … in fighting the fires of the moment that they cannot

really attend to the long-term threats and risks facing the organization. So the first soft skill of leadership the hard way is really attend to the long-term threats and risks facing the organization. So the first soft skill of leadership the hard way is

to cultivate the perspective of Marcus Aurelius: avoid busyness, free up your time, stay focused on what really matters.to cultivate the perspective of Marcus Aurelius: avoid busyness, free up your time, stay focused on what really matters.

Let me put it bluntly: every leader Let me put it bluntly: every leader should routinely keep a substantial should routinely keep a substantial

portion of his or her time—I would say portion of his or her time—I would say

as much asas much as 5050 percent—percent—

unscheduledunscheduled.. … Only when you have substantial ‘slop’ in your schedule—unscheduled time—will … Only when you have substantial ‘slop’ in your schedule—unscheduled time—will

you have the space to reflect on what you are doing, learn from experience, and recover from your inevitable mistakes. you have the space to reflect on what you are doing, learn from experience, and recover from your inevitable mistakes. Leaders without such free time end up tackling issues only when there is an immediate or visible problem. Managers’ Leaders without such free time end up tackling issues only when there is an immediate or visible problem. Managers’

typical response to my argument about free time is, ‘That’s all well and good, but there are things I have to do.’typical response to my argument about free time is, ‘That’s all well and good, but there are things I have to do.’ Yet Yet we waste so much time in unwe waste so much time in unpproductive activitroductive activity—y—it takes an it takes an

enormous effort on the enormous effort on the ppart of the leader to keeart of the leader to keepp free time for the free time for the trultrulyy im impportant thinortant thinggss.”.”

——Dov FrohmanDov Frohman (& Robert Howard (& Robert Howard), Leadership The Hard Way: Why Leadership Can’t Be Taught—), Leadership The Hard Way: Why Leadership Can’t Be Taught—

And How You Can Learn It Anyway (Chapter 5, “The Soft Skills Of Hard Leadership”)And How You Can Learn It Anyway (Chapter 5, “The Soft Skills Of Hard Leadership”)

You = Your You = Your calendarcalendar**

*The calendar *The calendar NEVERNEVER lies.lies.

Don’t > Don’t > Do*Do*

* “Don’t-ing” must be systematic * “Don’t-ing” must be systematic > WILLPOWER> WILLPOWER

““If there is any If there is any oneone ‘secret’ to effectiveness, it is ‘secret’ to effectiveness, it is

concentration. Effective executives concentration. Effective executives

do first things first … do first things first … and and thetheyy do do

oneone thinthingg at a at a timetime.”.” —Peter Drucker—Peter Drucker

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

—

““You must You must bebe

the change you the change you wish to see in the wish to see in the

world.”world.”Gandhi

““I am a I am a dispenser of dispenser of

enthusiasm.”enthusiasm.”

—Ben Zander—Ben Zander

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

““The leader must have The leader must have infectious optimism. … The infectious optimism. … The final test of a leader is the final test of a leader is the feeling you have when you feeling you have when you leave his presence after a leave his presence after a conference. conference. Have Have yyou a ou a

feelinfeelingg of u of uplplift and ift and confidenceconfidence?”?” —Field Marshall Bernard —Field Marshall Bernard

MontgomeryMontgomery

#1#1 Failing Failing

““If I had to pick If I had to pick one failing of CEOs, one failing of CEOs, it’s that they don’t it’s that they don’t read enough.”read enough.” —Co-founder of —Co-founder of

one of the largest investment services firms in the USA/worldone of the largest investment services firms in the USA/world

The The “Have “Have you …”you …” 50 50

““Mapping your Mapping your competitive competitive position”position”

or …or …

1. Have you in the1. Have you in the last 10 days … last 10 days …

VISITEDVISITED a customer? a customer? 2. Have you called a 2. Have you called a

customer … customer … TODAYTODAY ??

FORTY-FOUR “SECRETS” FORTY-FOUR “SECRETS” AND “CLEVER STRATEGIES” AND “CLEVER STRATEGIES”

FOR DEALING WITH THE FOR DEALING WITH THE RECESSION OF 2008-XXXXRECESSION OF 2008-XXXX

44 “Secrets” and “Clever Strategies” For 44 “Secrets” and “Clever Strategies” For Dealing with the Recession of 2008-XXXXDealing with the Recession of 2008-XXXX

You come earlier.You come earlier.You leave later.You leave later.You work harder.You work harder.You may well work for less; and, if so, youYou may well work for less; and, if so, you adapt to the untoward circumstances with a adapt to the untoward circumstances with a smile—even if it kills you inside.smile—even if it kills you inside.You volunteer to do more.You volunteer to do more.You dig deep and always bring a good attitudeYou dig deep and always bring a good attitude to work.to work.You fake it if your good attitude flags.You fake it if your good attitude flags.You literally practice your "game face" in theYou literally practice your "game face" in the mirror in the morning, and in the loo mirror in the morning, and in the loo mid-morning.mid-morning.You give new meaning to the idea and You give new meaning to the idea and intensive intensive practice of “visible management.”practice of “visible management.”

44 “Secrets” and “Clever Strategies” For 44 “Secrets” and “Clever Strategies” For Dealing with the Recession of 2008-XXXXDealing with the Recession of 2008-XXXX

You give new meaning to the word "thoughtful.“You give new meaning to the word "thoughtful.“You don’t put limits on the flowers budget—You don’t put limits on the flowers budget— “ “bright and colorful” works marvels.bright and colorful” works marvels.You redouble, re-triple your efforts to "walk inYou redouble, re-triple your efforts to "walk in your customer's shoes." (Especially if theyour customer's shoes." (Especially if the shoes smell.)shoes smell.)You mind your manners—and accept others’You mind your manners—and accept others’ lack of manners in the face of their strains.lack of manners in the face of their strains.You are kind to all mankind.You are kind to all mankind.You keep your shoes shined.You keep your shoes shined.You leave the blame game at the office door.You leave the blame game at the office door.You call out the congenital politicians in noYou call out the congenital politicians in no uncertain terms.uncertain terms.You become a paragon of personal You become a paragon of personal accountability.accountability.And then you pray.And then you pray.

MBWA MBWA 44

““The The 44 most most

important important 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

““Yes, Yes, butbut …” …”““Yes, Yes, andand

…”…”

AcknowledgementAcknowledgement!!

““The deepest principle The deepest principle in human nature is the in human nature is the

cravingcraving** to be to be appreciated.”appreciated.”

—William James—William James

**“Craving,” not “wish” or “desire” or “longing”/Dale “Craving,” not “wish” or “desire” or “longing”/Dale Carnegie, Carnegie, How to Win Friends and Influence People How to Win Friends and Influence People

(“The BIG Secret of Dealing With People”)(“The BIG Secret of Dealing With People”)

““The deepest The deepest human need ishuman need is the need to be the need to be appreciated.”appreciated.”

William JamesWilliam James

““Employees who Employees who don't feel significant don't feel significant

rarely make rarely make significant significant

contributions.”contributions.” —Mark Sanborn—Mark Sanborn

““AcknowledAcknowledggee” … ” … perhaps the most perhaps the most

powerful word (and powerful word (and idea) in the English idea) in the English

language—and language—and manager’s tool kit!manager’s tool kit!

Meeting PowerMeeting Power!!

Meetings = Meetings = #1#1 leadership leadership

opportunityopportunity

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.

11 Mouth, Mouth,

22 Ears Ears

““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 organization effectiveness.)organization effectiveness.)

[cont.][cont.]

*8 of 10 sales presentations fail*8 of 10 sales presentations fail

*50% failed sales *50% failed sales

presentations … presentations … talkingtalking “at” before “at” before listening! listening!—Susan Scott, “Let Silence Do the Heavy Listening,” chapter title, —Susan Scott, “Let Silence Do the Heavy Listening,” chapter title, Fierce Fierce Conversations: Achieving Success at Work and in Life,Conversations: Achieving Success at Work and in Life,One Conversation at a TimeOne Conversation at a Time

*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 !!

K = R = K = R = PP

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

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

appreciating heart.”appreciating heart.” —Henry Clay

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

NONENONE of THE top 15 of THE top 15

factors determining factors determining PPatient atient

SSatisfaction referred to patient’s health atisfaction 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 There is a misconception that supportive interactions require more staff or more time and are therefore more require more staff or more time and are therefore more costly. Although labor costs are a substantial part of any costly. Although labor costs are a substantial part of any hospital budget, the interactions themselves add nothing hospital budget, the interactions themselves add nothing

to the budget. to the budget.

KINDNESS IS KINDNESS IS FREEFREE.. Listening to patients or Listening to patients or

answering their questions costs nothing. It can be argued answering their questions costs nothing. It can be argued that negative interactions—alienating patients, being that negative interactions—alienating patients, being

non-responsive to their needs or limiting their sense of non-responsive to their needs or limiting their sense of control—can be very costly. … Angry, frustrated or control—can be very costly. … Angry, frustrated or

frightened patients may be combative, withdrawn and frightened patients may be combative, withdrawn and less cooperative—requiring far more time than it would less cooperative—requiring far more time than it would have taken to interact with them initially in a positive have taken to interact with them initially in a positive

way.”way.”

—Putting Patients First—Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel, Susan Frampton, Laura Gilpin, Patrick Charmel (Griffin Hospital/Derby CT; Plantree Alliance) (Griffin Hospital/Derby CT; Plantree Alliance)

Kindness = Kindness = Repeat Business =Repeat Business =

Profit.Profit.

Responsiveness/Responsiveness/Apology/ Apology/

““I’m sorry!”I’m sorry!”

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

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

centercenterppieceiece of my of my work with executives who work with executives who

want to get better.”want to get better.”

——Marshall GoldsmithMarshall Goldsmith, What Got You Here Won’t Get You There: , What Got You Here Won’t Get You There: How Successful People Become Even More Successful. How Successful People Become Even More Successful.

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

THREETHREE--MINUTEMINUTE PHONEPHONE CALLCALL WOULD WOULD

HAVE AVOIDED SETTING OFF THE HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RESULTED IN A COMPLETE

RUPTURE.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!

ComebackComeback[big, quick response][big, quick response]

>>>>PerfectionPerfection

Acquire vs. maintain:Acquire vs. maintain:

5X5X***Hence: Service*Hence: Service >>>> SalesSales (!!)(!!)

XFX =XFX =

#1#1

XFX = XFX = #1#1**

*Cross-Functional *Cross-Functional eXcellence eXcellence

NEVER NEVER WASTE A WASTE A LUNCH!LUNCH!

XFX/Typical XFX/Typical SocialSocial Accelerators Accelerators

1. EVERYONE’s [more or less] JOB #1: Make friends in other 1. EVERYONE’s [more or less] JOB #1: Make friends in other functions! (Purposefully. Consistently. Measurably.)functions! (Purposefully. Consistently. Measurably.)2. “Do lunch” with people in other functions!! Frequently!! 2. “Do lunch” with people in other functions!! Frequently!! (Minimum 10% to 25% for everyone? Measured.)(Minimum 10% to 25% for everyone? Measured.)3. Ask peers in other functions for references so you can become 3. Ask peers in other functions for references so you can become conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-ism.) ism.) 4. Religiously invite counterparts in other functions to your team 4. Religiously invite counterparts in other functions to your team meetings. Ask them to present “cool stuff” from “their world” to meetings. Ask them to present “cool stuff” from “their world” to your group. (Useful. Mark of respect.)your group. (Useful. Mark of respect.)

5. 5. PROACTIVELY SEEK EXAMPLES OF “TINY” PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO ACKNOWLEDGE—ACTS OF “XFX” TO ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ONCE PRIVATELY AND PUBLICALLY. (Bosses: ONCE A DAY … make a short call or visit or send an A DAY … make a short call or visit or send an email of “Thanks” for some sort of XFX email of “Thanks” for some sort of XFX gesture by your folks and some other gesture by your folks and some other function’s folks.)function’s folks.) 6. Present counterparts in other functions awards for service to 6. Present counterparts in other functions awards for service to your group. Tiny awards at least weekly; and an “Annualyour group. Tiny awards at least weekly; and an “Annual All-Star All-Star Supporters [from other groups] Banquet” modeled after superstar Supporters [from other groups] Banquet” modeled after superstar salesperson banquets. salesperson banquets.

THE WHOLE POINT HERE IS THAT THE WHOLE POINT HERE IS THAT “XFX”“XFX” IS IS

ALMOST CERTAINLY THE ALMOST CERTAINLY THE #1#1 OPPORTUNITY OPPORTUNITY FOR STRATEGIC DIFFERENTIATION. WHILE FOR STRATEGIC DIFFERENTIATION. WHILE

MANY WOULD LIKELY AGREE, IN OUR MANY WOULD LIKELY AGREE, IN OUR MOMENT-TO-MOMENT AFFAIRS, XFX PER SE MOMENT-TO-MOMENT AFFAIRS, XFX PER SE

IS NOT SO OFTEN VISIBLY & PERPETUALLY AT IS NOT SO OFTEN VISIBLY & PERPETUALLY AT THE THE TOPTOP OF EVERY AGENDA. I ARGUE HERE OF EVERY AGENDA. I ARGUE HERE

FOR NO LESS THAN …FOR NO LESS THAN …

VISIBLE.VISIBLE.CONSTANT.CONSTANT.OBSESSION.OBSESSION.

Teva Canada:Teva Canada: SuSuppppllyy chain chain excellenceexcellence achieved. Share-Point/ achieved. Share-Point/ troubleshooting/Strategy-Nets/ troubleshooting/Strategy-Nets/ hooked to other functions; Moxie hooked to other functions; Moxie social tools, document editing, etc.social tools, document editing, etc.

Social Business By Design: Transformative Social Social Business By Design: Transformative Social Media Strategies For the Connected CompanyMedia Strategies For the Connected Company —Dion —Dion

Hinchcliffe & Peter KimHinchcliffe & Peter Kim

1/4,096:1/4,096: Business Business Has to Give Has to Give

People Enriching, People Enriching, Rewarding LivesRewarding Lives

1/4,096: excellencenow.com1/4,096: excellencenow.com

““Business has to give people enriching, Business has to give people enriching,

rewarding lives … rewarding lives … or it's or it's simsimppllyy not not

worth worth doindoing.”g.”

——Richard BransonRichard Branson

Brand Brand = =

Talent.Talent.

B(I) > B(I) > B(O)B(O)

Explanation: B(O) = Brand Outside; B(I) = Explanation: B(O) = Brand Outside; B(I) = Brand INSIDEBrand INSIDE

““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 (SWA’s pilots union took out a full-page ad in USA USA TodayToday

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)

A 15-Point Human Capital Development A 15-Point Human Capital Development ManifestoManifesto

1.1. Corporate social responsibility” starts at home—i.e., Corporate social responsibility” starts at home—i.e., inside the enterprise!inside the enterprise! MAXIMIZING GDD/Gross MAXIMIZING GDD/Gross Domestic Development of the workforce is the primary Domestic Development of the workforce is the primary source of mid-term and beyond growth and source of mid-term and beyond growth and profitability—and maximizes national productivity and profitability—and maximizes national productivity and wealth. wealth.

2.2. Regardless of the transient external situation, Regardless of the transient external situation, development of “human capital” is always the #1 development of “human capital” is always the #1 priority.priority. This is true in general, in particular in difficult This is true in general, in particular in difficult times which demand resilience—and uniquely true in times which demand resilience—and uniquely true in this age in which IMAGINATIVE brainwork is de facto this age in which IMAGINATIVE brainwork is de facto the only plausible survival strategy for higher wage the only plausible survival strategy for higher wage nations. (nations. (Generic “brainwork,” traditional and Generic “brainwork,” traditional and dominant “white-collar activities, is increasindominant “white-collar activities, is increasingglly by beineingg pperformed berformed byy exponentiall exponentiallyy enhanced artificial enhanced artificial intelliintelliggenceence.).)

Source: A 15-Point Human Capital Asset Development Manifesto/Source: A 15-Point Human Capital Asset Development Manifesto/ World Strategy Forum/The New Rules: Reframing Capitalism/Seoul/0615.12World Strategy Forum/The New Rules: Reframing Capitalism/Seoul/0615.12

"When I hire "When I hire someone, that's someone, that's

when when I I ggo to o to work for work for

themthem.”.” —John DiJulius,—John DiJulius, "What's the Secret to "What's the Secret to

Providing a World-class Customer Experience"Providing a World-class Customer Experience"

… … NO LESS THAN NO LESS THAN

CATHEDRALSCATHEDRALS IN WHICH IN WHICH THE FULL AND AWESOME THE FULL AND AWESOME

POWER OF THE IMAGINATION POWER OF THE IMAGINATION AND SPIRIT AND NATIVE AND SPIRIT AND NATIVE

ENTREPRENEURIAL FLAIRENTREPRENEURIAL FLAIR OF OF DIVERSE INDIVIDUALSDIVERSE INDIVIDUALS IS IS

UNLEASHED IN PASSIONATE UNLEASHED IN PASSIONATE PURSUIT OF … PURSUIT OF … EXCELLENCEEXCELLENCE..

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 job as leaders—the alpha and the omega andHence, our job as leaders—the alpha and the omega and everything in between—is abetting the sustained everything in between—is abetting the sustained growthgrowth and success and engagement and enthusiasm andand success and engagement and enthusiasm and commitment to Excellence of those, one at a time, commitment to Excellence of those, one at a time, whowho directly or indirectly serve the ultimate customer.directly or indirectly serve 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.

““The role of the Director is to The role of the Director is to create a space where the create a space where the

actors and actresses canactors and actresses can become more than become more than thetheyy’ve ever been ’ve ever been

before,before, more than themore than they’y’ve ve dreamed of beindreamed of being.”g.”

——Robert Altman, Oscar acceptance speechRobert Altman, Oscar acceptance speech

““I start with the premise I start with the premise that the function of that the function of

leadership is to leadership is to

pproduce more roduce more leadersleaders, not more , not more

followers.”followers.” ——Ralph NaderRalph Nader

Our Mission

TO DEVELOP AND MANAGE TALENT;TO DEVELOP AND MANAGE 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

““LEADERSLEADERS

‘‘DODO’’ PEOPLE.”PEOPLE.”

““LEADERS LEADERS

‘‘DODO’’ PEOPLE. PEOPLE.

PERIOD.”PERIOD.” —Anon.—Anon.

"Leadership is a "Leadership is a gift. It's given by gift. It's given by those who follow. those who follow.

You have to be You have to be worthy of it.”worthy of it.”

——General Mark Welsh, Commander, U.S. Air Forces Europe General Mark Welsh, Commander, U.S. Air Forces Europe

REMEMBER:REMEMBER: You You CHOSECHOSE to to be a boss/leader. be a boss/leader.

Hence youHence you CHOSE CHOSE to to devote the rest of devote the rest of your professional your professional

career tocareer to DEVELOPINGDEVELOPING

PEOPLEPEOPLE..

Les WexnerLes Wexner:: From From sweaters to sweaters to

people!*people!*

*Limited Brands founder Les Wexner queried on astounding *Limited Brands founder Les Wexner queried on astounding longterm success—said, in effect, it happened because he gotlongterm success—said, in effect, it happened because he got

as excited about developing people as he had been about as excited about developing people as he had been about

predicting fashion trends in his early yearspredicting fashion trends in his early years

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.”

2/year = 2/year = Legacy.Legacy.

2/year 2/year = =

legacy.legacy.

Promotion DecisionsPromotion Decisions

“life and “life and death death

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

““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 rather than on their than on their

strengths.”.” —Peter Drucker, —Peter Drucker, The Practice of ManagementThe Practice of Management

Evaluation.Evaluation.

EVALUATING EVALUATING

PEOPLE = PEOPLE = #1#1

DIFFERENTIATORDIFFERENTIATORSource: Jack Welch, now Jeff Immelt onSource: Jack Welch, now Jeff Immelt on

GE’s top strategic skill ( GE’s top strategic skill (!!!!!!!!))

53 = 5353 = 53

People are People are NOTNOT “Standardized.” “Standardized.” Their evaluations Their evaluations

should should NOTNOT be be standardized. standardized.

EVEREVER..

SelSelf-f-Evaluation.Evaluation.

““To develop To develop others, start others, start

with with yyourselfourself.”.”

—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 + BusinessStrategy + Business #45) #45)

““The biggest The biggest problem I shallproblem I shall ever face: the ever face: the management of management of Dale Carnegie.”Dale Carnegie.”

——Dale Carnegie, diary ofDale Carnegie, diary of

Hiring.Hiring.

““development can help great development can help great

people be even people be even better— better— but if but if I had a dollar to spend, I’d I had a dollar to spend, I’d

spendspend 70 cents70 cents getting the right person getting the right person

in the door.”in the door.” ——Paul Russell, Director, Leadership and Paul Russell, Director, Leadership and

Development, GoogleDevelopment, Google

““In short, hiring is In short, hiring is the the most immost impportant ortant

asasppect of businessect of business

and yet remainsand yet remains woefully woefully misunderstoodmisunderstood..””

Source: Source: Wall Street JournalWall Street Journal, 10.29.08,, 10.29.08,

review of review of Who: The A Method for Hiring, Who: The A Method for Hiring, Geoff Smart and Randy StreetGeoff Smart and Randy Street

QuietQuiet

““We live with a value system that I call the Extrovert Ideal—the We live with a value system that I call the Extrovert Ideal—the omnipresent belief that the ideal self is gregarious, alpha, and omnipresent belief that the ideal self is gregarious, alpha, and

comfortable in the spotlight. The archetypal extrovert prefers action comfortable in the spotlight. The archetypal extrovert prefers action to contemplation, risk-taking to heed-taking, certainty to doubt. … We to contemplation, risk-taking to heed-taking, certainty to doubt. … We think that we value individuality, but all too often we admire one type think that we value individuality, but all too often we admire one type of individual … Introversion is now a second-class personality trait. … of individual … Introversion is now a second-class personality trait. …

The Extrovert Ideal has been documented in many The Extrovert Ideal has been documented in many studies. Talkative people, for example, are rated as studies. Talkative people, for example, are rated as smarter, better looking, more interesting, and more smarter, better looking, more interesting, and more

desirable as friends. Velocity of speech counts as well desirable as friends. Velocity of speech counts as well as volume: We rank fast talkers as more competent and as volume: We rank fast talkers as more competent and likeable than slow ones. But we make a grave mistake likeable than slow ones. But we make a grave mistake to embrace the Extrovert Ideal so unthinkingly.to embrace the Extrovert Ideal so unthinkingly. … As the … As the

science journalist Winifred Gallagher writes, ‘The glory of the science journalist Winifred Gallagher writes, ‘The glory of the disposition that stops to consider stimuli rather than rushing to disposition that stops to consider stimuli rather than rushing to

engage with them is its long association with intellectual and artistic engage with them is its long association with intellectual and artistic achievement. Neither E = mc squared or Paradise Lost was dashed off achievement. Neither E = mc squared or Paradise Lost was dashed off by a party animal.’ Even in less obviously introverted occupations, like by a party animal.’ Even in less obviously introverted occupations, like

finance, politics, and activism, some of the greatest leaps forward finance, politics, and activism, some of the greatest leaps forward were made by introverts … figures like Eleanor Roosevelt, Warren were made by introverts … figures like Eleanor Roosevelt, Warren

Buffett and Gandhi achieved what they did not in spite of but because Buffett and Gandhi achieved what they did not in spite of but because of their introversion.”of their introversion.” — —Susan Cain, Susan Cain,

Quiet: The Power of Introverts in a World That Can’t Stop TalkingQuiet: The Power of Introverts in a World That Can’t Stop Talking

““If you are a manager, remember that one third to one If you are a manager, remember that one third to one half of your workforce is probably introverted, whether half of your workforce is probably introverted, whether they appear that way or not. Think twice about how you they appear that way or not. Think twice about how you

design your organization’s office space. Don’t expect design your organization’s office space. Don’t expect introverts to get jazzed up about open office plans or, for introverts to get jazzed up about open office plans or, for that matter, lunchtime birthday parties or teambuilding that matter, lunchtime birthday parties or teambuilding

retreats. Make the most of introverts’ strengths— retreats. Make the most of introverts’ strengths— these these are the are the ppeoeopple who can helle who can helpp you think you think

deedeepply, strately, strateggize, solve comize, solve compplex lex pproblems, and sroblems, and sppot canaries in ot canaries in yyour coal our coal

minemine. .

““Also remember the dangers of the new groupthink. If it’s Also remember the dangers of the new groupthink. If it’s creativity you’re after, ask your employees to solve creativity you’re after, ask your employees to solve problems alone before sharing their ideas … Don’t problems alone before sharing their ideas … Don’t

mistake assertiveness or elegance for good ideas. If you mistake assertiveness or elegance for good ideas. If you have a proactive workforce (and I hope you do), have a proactive workforce (and I hope you do),

remember that they may perform better under an remember that they may perform better under an introverted leader than under an extroverted or introverted leader than under an extroverted or

charismatic one.”charismatic one.” — —Susan Cain, Susan Cain, Quiet: The Power of Introverts in a World That Can’t Stop TalkingQuiet: The Power of Introverts in a World That Can’t Stop Talking

““The next time you see a The next time you see a person with a composed face person with a composed face and a soft voice, remember and a soft voice, remember

that inside her mind she that inside her mind she might be solving an might be solving an

equation, composing a equation, composing a sonnet, designing a hat. She sonnet, designing a hat. She might, that is, be deploying might, that is, be deploying

the power of quiet.”the power of quiet.” — —Susan Cain, Susan Cain,

Quiet: The Power of Introverts in a World That Can’t Stop TalkingQuiet: The Power of Introverts in a World That Can’t Stop Talking

The Army KnowsThe Army Knows!!

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?

““People People leave leave

manamanaggersers not not companies.”companies.”

——Dave WheelerDave Wheeler

E.g.: Do you have the ...E.g.: Do you have the ... ABSOLUTEABSOLUTE BEST BEST TRAINING & TRAINING & DEVELOPMENT DEVELOPMENT PROGRAMSPROGRAMSIN THE INDUSTRYIN THE INDUSTRY ... ...

(or some subset thereof)(or some subset thereof) for first-line supervisors?for first-line supervisors?

““C-level”?C-level”?!!

In the Army, In the Army, 33--star star ggeneralsenerals worry about worry about

training. In most training. In most businesses, it's a “ho businesses, it's a “ho hum” mid-level staff hum” mid-level staff

function.function.

I would hazard a guess I would hazard a guess that most CEOs see IT that most CEOs see IT

investments as a investments as a “strategic necessity,” “strategic necessity,”

but see training but see training expenses as “a expenses as “a

necessary evil.” necessary evil.”

3. Three-star generals and admirals (and 3. Three-star generals and admirals (and symphony conductors and sports coaches symphony conductors and sports coaches and police chiefs and fire chiefs) OBSESS and police chiefs and fire chiefs) OBSESS about training. about training. Why is it likely (Dead Why is it likely (Dead certain?) that in a random 30-minute certain?) that in a random 30-minute interview you are unlikely to hear a CEO interview you are unlikely to hear a CEO touch upon this topic? (touch upon this topic? (I would hazard a I would hazard a guess that most CEOs see IT investments as guess that most CEOs see IT investments as a “strategic necessity,” but see training a “strategic necessity,” but see training expenses as “a necessary evil.”)expenses as “a necessary evil.”)

4.4. Proposition/axiom: The CTO/Chief TRAINING Proposition/axiom: The CTO/Chief TRAINING Officer is arguably the #1 staff job in the Officer is arguably the #1 staff job in the enterprise, at least on a par with, say, the enterprise, at least on a par with, say, the CFO or CIO or head of R&D.CFO or CIO or head of R&D. (Again, external (Again, external circumstances—see immediately above—are circumstances—see immediately above—are forcing our hand.)forcing our hand.)


(1)(1) Training merits Training merits ““C-level” C-level” status! status!(2)(2) Top trainers should Top trainers should be be paid a king’spaid a king’s ransomransom—and be of—and be of the same caliber asthe same caliber as top marketers ortop marketers or researchers.researchers.

Container StoreContainer Store

270270/16/16

10/>10010/>100

““Training” On Training” On SteroidsSteroids

11. 11. The national education infrastructure—The national education infrastructure—from kindergarten to continuing adult from kindergarten to continuing adult education—may well be National Priority #1.education—may well be National Priority #1. Moreover, the educational infrastructure must Moreover, the educational infrastructure must be altered radically to underpin support for the be altered radically to underpin support for the creative jobs that will be more or less the sole creative jobs that will be more or less the sole basis of future employment and national basis of future employment and national growth and wealth creation.growth and wealth creation.


““Every child is Every child is born an artist. born an artist. The trick is to The trick is to

remain an artistremain an artist.”.” —Picasso—Picasso




A A BRANDBRAND

YOUYOU WorldWorld

Distinct or Distinct or

extinct!extinct!

Muhammad Yunus:Muhammad Yunus: ““All human All human beings are beings are

entrepreneursentrepreneurs.. When we When we

were in the caves we were all self-were in the caves we were all self-employed . . . finding our food, feeding employed . . . finding our food, feeding ourselves. That’s where human history ourselves. That’s where human history

began . . . As civilization came we began . . . As civilization came we suppressed it. We became labor because suppressed it. We became labor because

they stamped us, ‘You are labor.’ We forgot they stamped us, ‘You are labor.’ We forgot that we are entrepreneurs.”that we are entrepreneurs.” —Muhammad Yunus/

The News Hour/PBS/1122.2006

USA 1996-2007USA 1996-2007

Highest rate Highest rate entrepreneurial activity entrepreneurial activity

(firms founded): (firms founded):

Ages Ages 55-6455-64

Lowest rate: Ages 20-34Lowest rate: Ages 20-34

Source: Dane Stangler, Kauffman Foundation (Source: Dane Stangler, Kauffman Foundation (EconomistEconomist))

Reductionist (!!) Reductionist (!!) Leadership Leadership

TrainingTraining

Are you a Are you a “professional” “professional” when it comeswhen it comes to to StrateStrateggicic ListeninListening?g?

Are you a Are you a “professional” when“professional” when

it comes to it comes to UsinUsingg meetinmeetinggs as a s as a pprimarrimaryy

leadershileadershipp tool tool??

Are you a Are you a “professional” “professional”

when it comes to when it comes to

OfferinOffering g helhelp?p?

Reductionist Leadership TrainingReductionist Leadership Training

““Aggressive ‘professional’ listener.”Aggressive ‘professional’ listener.”Expert at questioning. (Questioning Expert at questioning. (Questioning “professional.”)“professional.”)Meetings as leadership opportunity #1.Meetings as leadership opportunity #1.Creating a “civil society.”Creating a “civil society.”Expert at “helping.” (HelpingExpert at “helping.” (Helping “professional.”) “professional.”)Expert at holding productive conversations.Expert at holding productive conversations.Fanatic about clear communications.Fanatic about clear communications.Fanatic about training.Fanatic about training.Master of appreciation/acknowledgement.Master of appreciation/acknowledgement.Effective at apology.Effective at apology.Creating a culture of automatic helpfulness by all to all.Creating a culture of automatic helpfulness by all to all.Presentation excellence. Presentation excellence. Conscious master of body language.Conscious master of body language.Master of hiring. (Hiring Master of hiring. (Hiring “professional”)“professional”)Master of evaluating people.Master of evaluating people.Time manager par excellence.Time manager par excellence.Avid practitioner of MBWA/Managing By Wandering Around. Avid practitioner of MBWA/Managing By Wandering Around. Avid student of the process of influencing others per se. Avid student of the process of influencing others per se. Student of decision-making and devastating impact of irrational aspects Student of decision-making and devastating impact of irrational aspects thereof.thereof.Brilliantly schooled student of negotiation.Brilliantly schooled student of negotiation.Creating a no-nonsense execution culture.Creating a no-nonsense execution culture.Meticulous about employee development/100% of staff.Meticulous about employee development/100% of staff.Student of the power of “d”iversity (all flavors of difference).Student of the power of “d”iversity (all flavors of difference).Aggressive in pursuing gender balance.Aggressive in pursuing gender balance.Making team-building excellence everyone’s daily priority.Making team-building excellence everyone’s daily priority.Understanding value of matchless 1st-line management.Understanding value of matchless 1st-line management.Instilling “business sense” in one and all.Instilling “business sense” in one and all.

11/47/47(No kidding)(No kidding)

Lesson47:Lesson47: WTTMSWTTMS

WW

WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTSTUFFSTUFFWINSWINS

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)

““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 suckingcompetitors are still sucking their thumbs trying to 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 It ggets back to ets back to pplanninlanningg versus actin versus acting: g: We act We act from day onefrom day one; ; others others pplan how lan how

toto p planlan——for monthsfor months.”.”

——Bloomberg by BloombergBloomberg by Bloomberg

Culture of PrototypingCulture of Prototyping

“Effective prototyping may “Effective prototyping may

be be THETHE MOST MOST VALUABLEVALUABLE CORE CORE COMPETENCECOMPETENCE an an

innovative organization can innovative organization can hope to have.”hope to have.” —Michael Schrage—Michael Schrage

““The difference between Bach and his forgotten peers The difference between Bach and his forgotten peers isn’t necessarily that he had a better ratio of hits to isn’t necessarily that he had a better ratio of hits to

misses. The difference is that the mediocre might have a misses. The difference is that the mediocre might have a dozen ideas, while Bach, in his lifetime, created more dozen ideas, while Bach, in his lifetime, created more than a thousand full-fledged musical compositions. A than a thousand full-fledged musical compositions. A

genius is a genius, psychologist Paul Simonton genius is a genius, psychologist Paul Simonton maintains, because he can put together such a maintains, because he can put together such a

staggering number of insights, ideas, theories, random staggering number of insights, ideas, theories, random observations, and unexpected connections that he observations, and unexpected connections that he almost inevitably ends up with something great.almost inevitably ends up with something great.

‘‘Quality,’Quality,’ Simonton writes,Simonton writes, ‘is a ‘is a probabilistic function of probabilistic function of

quantity.’”quantity.’”

—Malcolm Gladwell, “Creation Myth,” —Malcolm Gladwell, “Creation Myth,” New YorkerNew Yorker, 0516.11, 0516.11

““FAIL.FAIL. FORWARD. FORWARD.

FAST.”FAST.”High Tech CEO, Pennsylvania

““REWARDREWARD excellent failures. PUNISHPUNISH mediocre

successes.”—Phil Daniels, Sydney exec

Pursuing Pursuing InInefficiencyefficiency

““The secret of fast The secret of fast progress is progress is

inefficiency, fast , fast and furious and and furious and

numerous failures.”numerous failures.”—Kevin Kelly

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

earlier triumphs than upon the rubble of

earlier debacles.” —Paul —Paul

SaffoSaffo

““If things seem If things seem under control, under control, you’re just not you’re just not

going fast going fast enough.”enough.” —Mario Andretti—Mario Andretti

““The essenceThe essence of capitalism is of capitalism is

encouraging failure, encouraging failure, not rewarding not rewarding

success.”success.” —Nassim Nicholas Taleb/Reason TV/0124.13—Nassim Nicholas Taleb/Reason TV/0124.13

Wheels Rarely Wheels Rarely Need To Be Need To Be Re-inventedRe-invented

““Where Where pplannerslanners * raise high expectations * raise high expectations but take no responsibility for meeting them, but take no responsibility for meeting them,

searcherssearchers prefer to work case-by-case, prefer to work case-by-case, using trial and error to tailor solutions to using trial and error to tailor solutions to

individual problems, fully aware that most individual problems, fully aware that most remedies must be homegrown.” remedies must be homegrown.” ——WSJWSJ, 0822.06 (on malaria , 0822.06 (on malaria

eradication, eradication, and hedge fund manager Lance Laifer)and hedge fund manager Lance Laifer)

[*“Planners [*“Planners [WHO, World Bank, etc][WHO, World Bank, etc] see poverty as a see poverty as a technical engineering problem that their technical engineering problem that their

answers will solve.” answers will solve.” —William Easterly—William Easterly]]

“All sorts of approaches need to be “All sorts of approaches need to be tried and we need feedback.” tried and we need feedback.” —Roger Bate—Roger Bate

““Somewhere in your Somewhere in your organization, groups of organization, groups of

people are people are alreadalreadyy doindoingg thin thinggs s

differentldifferentlyy and better. and better. To create lasting change, To create lasting change,

find these areas of positive find these areas of positive deviance and fan the deviance and fan the

flamesflames.”.” —Richard Pascale & Jerry Sternin, —Richard Pascale & Jerry Sternin,

“Your Company’s Secret Change Agents,” “Your Company’s Secret Change Agents,” HBRHBR

““Some people look for Some people look for things that went wrong things that went wrong

and try to fix them. I and try to fix them. I look for look for thinthinggs that s that

went riwent rigghtht,, and try to and try to build off them.”build off them.” —Bob Stone (Mr

ReGo)

1/4,0961/4,096

100%100%

1/5,0001/5,000

“YOU MISS “YOU MISS

100100%% OF OF

THE SHOTS YOU THE SHOTS YOU NEVER TAKE.”NEVER TAKE.”

—Wayne—Wayne GretzkyGretzky

““WE HAVE A WE HAVE A ‘STRATEGIC ‘STRATEGIC PLAN.’ IT’S PLAN.’ IT’S

CALLED CALLED DOING DOING THINGSTHINGS.”.” — Herb Kelleher

Fragile: Breaks easily.Fragile: Breaks easily.Resilient: Bounces back.Resilient: Bounces back.

Antifragile:Antifragile: Get jazzed byGet jazzed by and progress/innovate and progress/innovate

as a result of being as a result of being knocked about. knocked about.

— With credit to Nassim Nicholas Taleb— With credit to Nassim Nicholas Taleb ( (Antifragile: Things That Gain From DisorderAntifragile: Things That Gain From Disorder ) )

We Are We Are WhatWhat

We Eat We 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’ ” ”

Measure/Manage: Portfolio “Strangeness”/ Measure/Manage: Portfolio “Strangeness”/ “Quality”“Quality”

1. Customers1. Customers2. Vendors2. Vendors3. Out-sourcing Partners3. Out-sourcing Partners4. Acquisitions4. Acquisitions5. Purposeful “Theft”5. Purposeful “Theft”6. Diversity/“d”iversity6. Diversity/“d”iversity7. Diversity/Crowd-sourcing7. Diversity/Crowd-sourcing8.8. Diversity/Weird Diversity/Weird 9.9. Diversity/CuriosityDiversity/Curiosity10. Benchmarks10. Benchmarks11. Calendar11. Calendar12. MBWA12. MBWA13. Lunch/General13. Lunch/General14. Lunch/Other functions14. Lunch/Other functions15. Location/Internal15. Location/Internal16. Location/HQ16. Location/HQ17. Top team17. Top team18. Board18. Board

WEWE ARE ARE THE THE COMPANYCOMPANY WE KEEP!WE KEEP!

MANAGEMANAGE IT! IT!

““DON’T DON’T BENCHMARK,BENCHMARK,

FUTURE FUTURE MARK!”MARK!”

Impetus: “The future is already here; it’s just not evenly distributed” —William Gibson

““DON’T DON’T BENCHMARK,BENCHMARK,

‘OTHER’ ‘OTHER’ MARKMARK!!””

REVERSE REVERSE Ageism Ageism

Merited?Merited?

60 IS THE NEW 40!60 IS THE NEW 40!70 IS THE NEW 50!70 IS THE NEW 50!

35 IS THE NEW 6535 IS THE NEW 65??

““Why Minecraft Is More Than Just Another Video Game”Why Minecraft Is More Than Just Another Video Game”

““We had discussions about We had discussions about Boolean logic Boolean logic [AND/OR/NOT, etc.],[AND/OR/NOT, etc.], which is which is a pretty advanced concept to a pretty advanced concept to

be talking to a 9-year-old be talking to a 9-year-old about.”about.” ——Andrew Weekes (from BBC News Magazine)Andrew Weekes (from BBC News Magazine)

We Are WhatWe Are What We Eat: The We Eat: The “Fred Smith “Fred Smith Question”Question”

““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

Hire For ItHire For It

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

Mike Bloomberg:Mike Bloomberg:

““Curiosity.”Curiosity.”

OuchOuch!!

“The Bottleneck …The Bottleneck …

“The Bottleneck is at the …The Bottleneck is at the … “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 … …

Top of the Top of the Bottle”Bottle”

— Gary Hamel/— Gary Hamel/Harvard Business ReviewHarvard Business Review

InnovateInnovate or Die: or Die:

Measure It!Measure It!

Innovation IndexInnovation Index:: How many of your Top 5Top 5

Strategic Initiatives/Key Projects score 88 or or higherhigher [out of 10] on a

“Weird”“Weird”//“Profound”“Profound”/ / “Wow”“Wow”//“Game-“Game-

changer”changer” Scale? (At least 3???)

Iron Innovation Equality Law:Iron Innovation Equality Law: The quality and The quality and

quantity and quantity and imaginativenessimaginativeness

of innovation shall be of innovation shall be the same in all the same in all

functionsfunctions —e.g., in HR and —e.g., in HR and purchasing as much as in marketing or purchasing as much as in marketing or

product development.*product development.*

TGRs:TGRs:LBTsLBTs

LITTLE =LITTLE =

BIGBIG

Big carts =Big carts =

1.5X1.5XSource: Wal*MartSource: Wal*Mart

2X:2X: “When Friedman“When Friedman

slisligghtlhtly y curvedcurved the right angle of an the right angle of an

entrance corridor to one property, he entrance corridor to one property, he was ‘amazed at the magnitude of change was ‘amazed at the magnitude of change

in pedestrians’ behavior’—the in pedestrians’ behavior’—the percentage who entered increased from percentage who entered increased from

oneone--thirdthird to nearly to nearly twotwo--thirdsthirds.”.”

——Natasha Dow Schull, Natasha Dow Schull, Addiction By Design: Machine Gambling in Las VegasAddiction By Design: Machine Gambling in Las Vegas

Glaring Eyes:Glaring Eyes:

-62%-62%Source: PLOS ONE (via Source: PLOS ONE (via The Atlantic CITIESThe Atlantic CITIES /0429.13) /0429.13)

<TG<TGWandand … …

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

(1)(1) Amenable to rapid Amenable to rapid experimentation/experimentation/ failure “free” (PR, $failure “free” (PR, $

$)$)(2)(2) Quick to implement/ Quick to implement/ Quick to Roll outQuick to Roll out(3)(3) Inexpensive to Inexpensive to implement/Roll outimplement/Roll out(4)(4) Huge multiplier Huge multiplier(5)(5) An “Attitude” An “Attitude”

TGRs:TGRs:8/808/80

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

CustomersCustomers describing their service describing their service

experience as “superior”: experience as “superior”: 88%%ComComppaniesanies describing describing

the service experience they provide the service experience they provide asas

“ “superior”: superior”: 8080%%——Source: Bain & Company survey of 362 companies, reported in John DiJulius,Source: Bain & Company survey of 362 companies, reported in John DiJulius,

What's the Secret to Providing a World-class Customer Experience?What's the Secret to Providing a World-class Customer Experience?

<TG<TGWandand … …

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

TGRTGRSS..MANAGEMANAGE ’EM. ’EM.

MEASUREMEASURE ’EM. ’EM.***I use “manage-measure” a lot. Translation: These are*I use “manage-measure” a lot. Translation: These are

not “soft” ideas; they are exceedingly important things not “soft” ideas; they are exceedingly important things that can be managed—AND measured. that can be managed—AND measured.

CCXXO*O**Chief e*Chief eXXperience Officerperience Officer

DESIGNDESIGN!!

Design Design RulesRules!!

APPLEAPPLE market cap market cap > Exxon Mobil* > Exxon Mobil*

*August 2011*August 2011

““Design is Design is

treated like treated like a relia religgionion at at

BMW.”*BMW.”* —Fortune—Fortune

**APPLEAPPLE market cap > Exxon Mobil (August 2011) market cap > Exxon Mobil (August 2011)

Hypothesis:Hypothesis: DESIGNDESIGN is the is the pprincirincippalal

differencedifference

between between lovelove

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

CCDDO*O**Chief *Chief DDesign Officeresign Officer

DESIGN:DESIGN:BEAUTIFULBEAUTIFUL

SystemsSystems

First Steps: First Steps: “Beauty Contest”!“Beauty Contest”!

1. Select one form/document: invoice, 1. Select one form/document: invoice, airbill, sick leave policy, customer airbill, sick leave policy, customer returns claim form.returns claim form.

2.2. Rate the selected doc on a scale of 1 to Rate the selected doc on a scale of 1 to 10 [1 = Bureaucratica Obscuranta/Sucks; 10 [1 = Bureaucratica Obscuranta/Sucks; 10 = Work of Art] on four dimensions:10 = Work of Art] on four dimensions:

BeautBeauty. y. GraceGrace. . ClaritClarity. y. SimplicitSimplicity.y.3. Re-invent!3. Re-invent!4.4. Repeat, with a new selection,Repeat, with a new selection, every 15 working days.every 15 working days.

Systems: Systems: Must Must have.have.

Must Must hate. / hate. / MustMust design. design. Must …Must … unun-design.-design.

Architect Rem Koolhaas on his drive for Architect Rem Koolhaas on his drive for

clarity-simplicity:clarity-simplicity: “Often “Often my job is to my job is to

undo things.”undo things.”Source: Source: New YorkerNew Yorker

““Only one company Only one company can be the cheapest. can be the cheapest. All others must use All others must use design.”design.” —Rodney Fitch, Fitch & Co.—Rodney Fitch, Fitch & Co.

Source: Source: InsightsInsights, definitions of design, the Design Council [UK], definitions of design, the Design Council [UK]

Initiate a …Initiate a … “ “Design Design Review”Review”

Today Today (Of Everything)(Of Everything)

DESIGN =DESIGN =THE THE LASTLAST

WORDWORD!!

HHypypothesisothesis: Men : Men

cannotcannot design for women’s design for women’s

needsneeds!!??!!??

HOTHOT

LanguageLanguage

““INSANELY GREAT”INSANELY GREAT”STEVE JOBSSTEVE JOBS

“RADICALLY THRILLING” “RADICALLY THRILLING” BMW

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

!!

“… “… this will this will be the be the

woman’s woman’s century …”century …”

““I speak to you with a feminine voice.I speak to you with a feminine voice. It’s the voice of democracy, of equality. It’s the voice of democracy, of equality.

I am certain, ladies and gentlemen,I am certain, ladies and gentlemen, that that this will be this will be

the woman’s the woman’s centurcentury.y. In the Portuguese language, In the Portuguese language,

words such as life, soul, and hope are of the feminine words such as life, soul, and hope are of the feminine

gender, as are other words like courage and sincerity.”gender, as are other words like courage and sincerity.”

——President Dilma Rousseff of BrazilPresident Dilma Rousseff of Brazil, 1st woman to, 1st woman to keynote the United Nations General Assembly (2011)keynote the United Nations General Assembly (2011)

““Forget CHINA, Forget CHINA, INDIA and the INDIA and the

INTERNET: Economic INTERNET: Economic Growth Is Driven by Growth Is Driven by

WOMENWOMEN.”.”

Source: Headline, Economist

Women BUY*Women BUY*

**EVERYTHINGEVERYTHING

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$28 trillion in the next five years. in the next five years.

Their $13 trillion in total yearly earnings could reach $18 trillion in the Their $13 trillion in total yearly earnings could reach $18 trillion in the same period.same period. In aggregate, women represent a growth market bigger than China and India combined—more In aggregate, women represent a growth market bigger than China and India combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer. than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer.

And yet many companies do just that—even ones that are confidant that they have a winning strategy when it 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 …”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

““Women areWomen are THETHE majority majority

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

Women as …Women as …

Purchasing agents: Purchasing agents: 55%55%Purchasing managers: Purchasing managers: 42%42%Wholesale/retail buyers: Wholesale/retail buyers: 52%52%Employee health-benefitEmployee health-benefit

plans: plans: 60%60%Source: Martha Barletta/TrendSight Group/0517.11Source: Martha Barletta/TrendSight Group/0517.11

Sales/Aftersales ProcessSales/Aftersales Process

1. Kick-off – 1. Kick-off – womenwomen2. Research – 2. Research – womenwomen3. Purchase – 3. Purchase – men4. Ownership – 4. Ownership – womenwomen5. Word-of-mouth – 5. Word-of-mouth – womenwomen

Source: Marti BarlettaSource: Marti Barletta

The Perfect Answer

Jill and Jack buy slacks in black…

““Women don’t ‘buy’ Women don’t ‘buy’

brands. brands. TheTheyy ‘j‘join’ oin’

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

Selling to men:Selling to men: THE THE TRANSACTIONTRANSACTION MODEL MODEL

Selling to Women:Selling to Women: THE THE RELATIONALRELATIONAL MODEL MODEL

Source: Source: Selling to Men, Selling to WomenSelling to Men, Selling to Women, Jeffery Tobias Halter, Jeffery Tobias Halter

Purchasing Patterns

WomenWomen:: Harder to convince; more loyal once convinced..

MenMen:: Snap decision; fickle..

Source: Martha Barletta, Marketing to Women

““People powered”: People powered”: AGE AGE 3 3 DAYSDAYS, BABY , BABY GIRLS GIRLS 2X2X EYE EYE

CONTACT.CONTACT. Source: Martha Barletta, Source: Martha Barletta, Marketing to WomenMarketing to Women

Women RULEWomen RULE!!

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find that New Studies find that

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

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

Women’s Strengths Match New Women’s Strengths Match New Economy ImperativesEconomy Imperatives:: Link [rather than Link [rather than

rank] workers; rank] workers; favor interactive-favor interactive-collaborative leadership style collaborative leadership style

[empowerment beats top-down decision [empowerment beats top-down decision making];making]; sustain fruitful collaborations; sustain fruitful collaborations;

comfortable with sharing information; comfortable with sharing information; see see redistribution of power as victory, not redistribution of power as victory, not

surrendersurrender; favor multi-dimensional ; favor multi-dimensional feedback; feedback; value technical & interpersonal value technical & interpersonal

skills, individual & group contributions skills, individual & group contributions equally;equally; readily accept ambiguity; readily accept ambiguity; honor honor intuition as well as pure “rationality”;intuition as well as pure “rationality”; inherently flexible; inherently flexible; appreciate cultural appreciate cultural

diversitydiversity..

Source: Judy B. Rosener, Source: Judy B. Rosener, America’s Competitive Secret: Women ManagersAmerica’s Competitive Secret: Women Managers

““Research Research suggests that to suggests that to succeed, start by succeed, start by

promoting promoting women.”women.” —Nicholas Kristof, “Twitter, Women, and —Nicholas Kristof, “Twitter, Women, and

Power,” Power,” NYTimesNYTimes, 1024.13, 1024.13

““McKinsey & Company found McKinsey & Company found that the international that the international

companies with more women on companies with more women on

their corporate boards their corporate boards far far outperformedoutperformed the the

average company in return on average company in return on equity and other measures. equity and other measures.

Operating profit was 56 percent Operating profit was 56 percent higher.” higher.” —Nicholas Kristof, “Twitter, Women, and Power,” —Nicholas Kristof, “Twitter, Women, and Power,” NYTimesNYTimes, 1024.13, 1024.13

““Headline 2020:Headline 2020: Women Women

Hold Hold 8080

Percent of 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

F:M Bachelors F:M Bachelors degrees granted: degrees granted:

140:10140:1000

Source: Paco Underhill, Source: Paco Underhill, What Women WantWhat Women Want

Warren Buffett Warren Buffett Invests Like a Girl: Invests Like a Girl:

And Why YouAnd Why YouShould TooShould Too —Louann Lofton—Louann Lofton

CCNNOO

CCMMO/MarketingO/MarketingCCXXO/eXperienceO/eXperience

CCNNO/eNgagementO/eNgagement

““Customer engagement is Customer engagement is moving from relatively isolated moving from relatively isolated market transactions to deeply market transactions to deeply connected and sustained social connected and sustained social relationships. This basic change relationships. This basic change in how we do business will make in how we do business will make

an impact on just about an impact on just about everything we do.”everything we do.”

Social Business By Design: Transformative Social Media StrategiesSocial Business By Design: Transformative Social Media Strategies For the Connected CompanyFor the Connected Company —Dion Hinchcliffe & Peter Kim —Dion Hinchcliffe & Peter Kim

Social Survival Manifesto*Social Survival Manifesto*1.1. Hiding is not an option.Hiding is not an option.2.2. Face it, you are outnumbered. (“level playing field, arrogance Face it, you are outnumbered. (“level playing field, arrogance

denied”)denied”)3.3. You no longer control the message.You no longer control the message.4.4. Try acting like … a human being.Try acting like … a human being.5.5. Learn to listen, or else. (“REALLY listening to others a must”)Learn to listen, or else. (“REALLY listening to others a must”)6.6. Admit that you don’t have all the answers.Admit that you don’t have all the answers.7.7. Speak plainly and seek to inform.Speak plainly and seek to inform.

8.8. Quit being a monolith. Quit being a monolith. (“Your employees, speaking (“Your employees, speaking online as individuals, are a crucial resource … online as individuals, are a crucial resource … can be managed through frameworks that can be managed through frameworks that ENCOURAGE participation”)ENCOURAGE participation”)

9.9. Try being less evil.Try being less evil.

10.10. Pay it forward, now. Pay it forward, now. (“Internet culture largely built (“Internet culture largely built on the principal of the Gift Economy … give on the principal of the Gift Economy … give value away to your online communities”)value away to your online communities”)

*Tom Liacas; socialdisruptions.com*Tom Liacas; socialdisruptions.com

Seven Characteristics of the Social EmployeeSeven Characteristics of the Social Employee

1. 1. Engaged Engaged 2. 2. Expects Integration of the Expects Integration of the

Personal and ProfessionalPersonal and Professional3. 3. Buys Into the Brand’s StoryBuys Into the Brand’s Story4. 4. Born CollaboratorBorn Collaborator5. 5. ListensListens6. 6. Customer-CentricCustomer-Centric7. 7. Empowered Change AgentEmpowered Change Agent

Source: Cheryl Burgess & Mark Burgess, Source: Cheryl Burgess & Mark Burgess, The Social EmployeeThe Social Employee

Marbles, a Ball and Social Employees ay IBM Marbles, a Ball and Social Employees ay IBM

““Picture a ball and a bag of marbles side by side. The Picture a ball and a bag of marbles side by side. The two items might have the same volume—that is, if two items might have the same volume—that is, if

you dropped them into a bucket, they would sisplace you dropped them into a bucket, they would sisplace the same amount of water. The difference, however, the same amount of water. The difference, however,

lies in the surface area, lies in the surface area, Because a baBecause a bagg of of marbles is commarbles is compprised of several individual rised of several individual

ppieces, the combined surface area of all the ieces, the combined surface area of all the marbles far outstrimarbles far outstripps the surface area of a s the surface area of a

sinsinggle ballle ball. The expanded surface area represents a . The expanded surface area represents a social brand’s increased diversity. These surfaces social brand’s increased diversity. These surfaces

connect and interact with each other in unique ways, connect and interact with each other in unique ways, offering customers and employees alike a variety of offering customers and employees alike a variety of paths toward a myriad of solutions. If none of the paths toward a myriad of solutions. If none of the paths prove to be suitable, social employees can paths prove to be suitable, social employees can

carve out new paths on their own.”carve out new paths on their own.” —Ethan McCarty, Director of —Ethan McCarty, Director of

Enterprise Social Strategy, IBM (from Cheryl Burgess & Mark Burgess, Enterprise Social Strategy, IBM (from Cheryl Burgess & Mark Burgess, The Social The Social EmployeeEmployee

SB/SESB/SE > SM*> SM*

*“Social *“Social BUSINESSBUSINESS”/“Social ”/“Social EMPLOYEEEMPLOYEE”/“Social Media””/“Social Media”

““Success” Success” >>>> “Satisfaction”“Satisfaction”

IBIBMMtoto

IIBBMM

““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”

““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

““You are headed You are headed for commodity for commodity

hell if you don’t hell if you don’t have services.”have services.”—Lou Gerstner, on IBM’s coming revolution (1997)—Lou Gerstner, on IBM’s coming revolution (1997)

Huge:Huge: “Customer “Customer

SatisfactionSatisfaction with with product/Service” product/Service”

to to

“CUSTOMER “CUSTOMER SUCCESSSUCCESS””

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

How How SchlumberSchlumberggerer 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.”

I. LAN Installation Co. (3%)

II. Geek Squad. (30%.)

III. Acquired by Best Buy.

IV. FLAGSHIP OF BEST BUYFLAGSHIP OF BEST BUY WHOLESALE “SOLUTIONS” WHOLESALE “SOLUTIONS” STRATEGY MAKEOVER. STRATEGY MAKEOVER.

Universal Value Added:Universal Value Added:

The The PSFPSF Solution Solution

(or bust)(or bust)

“ ‘“ ‘Disintermediation’ is overrated. Those who fear disintermediation-outsourcingDisintermediation’ is overrated. Those who fear disintermediation-outsourcing should in fact be afraid of irrelevance; ‘outsourcing’ is just another should in fact be afraid of irrelevance; ‘outsourcing’ is just another

way of saying that …way of saying that … you’ve become irrelevant to your

customers.”

—John Battelle/—John Battelle/Point/AdvertisingPoint/Advertising AgeAge

“A bureaucrat is an expensive

microchip.” —Dan Sullivan, consultant and executive coach—Dan Sullivan, consultant and executive coach

““I believe that ninety I believe that ninety percent of white-collar jobs percent of white-collar jobs

in the U.S. will be either in the U.S. will be either destroyed or altered destroyed or altered

beyond recognition in the beyond recognition in the next 10 to 15 years.”next 10 to 15 years.” (22 May (22 May

2000/cover/2000/cover/TimeTime magazine) magazine)

Sarah:Sarah: “ Mom, what do you do?”

MomMom:: ““I’m ‘overhead’—the ‘bureaucrat’ who runs the ‘cost center’ called ‘Human Resources.”

Department Head/“Cost center”/“Overhead” to …

ManaginManaging g

PartnerPartner, , HRHR [IS, R&D, etc.] IncInc..

Are you/your gang the …

““PrinciPrincippal al EnEnggineine of of

Value Added”Value Added”

Big Idea:Big Idea:

“Corporation” as “Corporation” as

MEGA-“PSFMEGA-“PSF””

EverEvery “PSF” y “PSF” mustmust havehave a a

formal & formal & formidable R&D formidable R&D budget. budget. PERIODPERIOD..

The Professional Service Firm50: Fifty Ways to The Professional Service Firm50: Fifty Ways to Transform Your “Department” into a Professional Transform Your “Department” into a Professional Service Firm Whose Trademarks Are Passion and Service Firm Whose Trademarks Are Passion and

Innovation!Innovation!

Big STINKSBig STINKS!!

“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: BuBuyy a ver a veryy larlarggee

one and one and jjust ust 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 lonthe 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

““When asked to name just one big When asked to name just one big merger that had lived up to merger that had lived up to

expectations, Leon Cooperman, expectations, Leon Cooperman, former cochairman of Goldman Sachs’ former cochairman of Goldman Sachs’

Investment Policy Committee, Investment Policy Committee,

answered:answered: I’M SURE THERE ARE SUCCESS STORIES

OUT THERE, BUT AT THIS MOMENT I DRAW A

BLANK.” —Mark Sirower, —Mark Sirower, The Synergy TrapThe Synergy Trap

“NOT A SINGLE COMPANY THAT QUALIFIED AS HAVING MADE A SUSTAINED TRANSFORMATION IGNITED ITS LEAP WITH A BIG

ACQUISITION OR MERGER. Moreover, Moreover, comparison companies—those that failed to comparison companies—those that failed to

make a leap or, if they did, failed to sustain itmake a leap or, if they did, failed to sustain it—often tried to make themselves great with a —often tried to make themselves great with a big acquisition or merger. They failed to grasp big acquisition or merger. They failed to grasp the simple truth that while you can buy your the simple truth that while you can buy your

way to growth, way to growth, YOU CANNOT BUY YOUR WAY TO GREATNESS.”

—Jim Collins/—Jim Collins/TimeTime

““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

Big STINKSBig STINKS!!Enter: Enter: Mid-size Mid-size SuperstarsSuperstars/ / The Masters of The Masters of

MotuekaMotueka

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

THE RED THE RED CARPET CARPET STORESTORE

(Joel Resnick/Flemington NJ)(Joel Resnick/Flemington NJ)

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

Independent StoresIndependent Storesin Americain America —by George Whalin—by George Whalin

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 calls it, begins in the parking lot calls it, begins in the parking lot and goes on to and goes on to

1,600 cheeses1,600 cheeses and, yes, and, yes, 1,400 varieties of 1,400 varieties of hot saucehot sauce —not to mention —not to mention 12,000 wines 12,000 wines priced from $8 to $8,000priced from $8 to $8,000 a bottle; all this is a bottle; all this is

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

““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

Small Giants: Small Giants: Companies That Choose to Be Companies That Choose to Be

Great Instead of BigGreat Instead of Big

Small Giants: Companies that Chose to Be Great Instead of Big (Bo Burlingham)

““THEY CULTIVATED THEY CULTIVATED EXCEPTIONALLY INTIMATE EXCEPTIONALLY INTIMATE RELATIONSHIPS WITH CUSTOMERS AND SUPPLIERSRELATIONSHIPS WITH CUSTOMERS AND SUPPLIERS, , based based on personal contact, one-on-one interaction, and mutual on personal contact, one-on-one interaction, and mutual commitment to delivering on promises.commitment to delivering on promises.

“EACH COMPANY HAD AN ACH COMPANY HAD AN EXTRAORDINARILY INTIMATE EXTRAORDINARILY INTIMATE RELATIONSHIP WITH THE LOCAL CITY, TOWN, OR COUNTYRELATIONSHIP WITH THE LOCAL CITY, TOWN, OR COUNTY in in which it did business -- a relationship that went well beyond which it did business -- a relationship that went well beyond the usual concept of `giving back.’ the usual concept of `giving back.’

““The companies had what struck me asThe companies had what struck me as UNUSUALLY UNUSUALLY INTIMATE WORKPLACESINTIMATE WORKPLACES..

““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 whether it be music, safety lighting, food, special effects, constant be music, safety lighting, food, special effects, constant torque hinges, beer, records storage, construction, dining, torque hinges, beer, records storage, construction, dining, or fashion."or fashion."

Motueka, New ZealandMotueka, New Zealand

Coppins Sea Coppins Sea Anchors*Anchors*

**PSA/Para-sea anchorsPSA/Para-sea anchors

Source: Source: Kia OraKia Ora/Air New Zealand magazine/Air New Zealand magazine

““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

Big STINKSBig STINKS!!

Enter:Enter: New Jersey’s New Jersey’s 14-year-old 14-year-old Proustian Proustian SuperstarSuperstar

““We are in no danger We are in no danger of running out of new of running out of new combinations try.combinations try. Even Even if technology froze today, we have if technology froze today, we have

more possible ways of configuring the more possible ways of configuring the different applications, machines, tasks, different applications, machines, tasks,

and distribution channels to create and distribution channels to create new processes and products than we new processes and products than we could ever exhaust.”could ever exhaust.” ——Erik Brynjolfsson and Andrew Erik Brynjolfsson and Andrew

McAfeeMcAfee, Race Against the Machine: How the Digital Revolution Is Accelerating , Race Against the Machine: How the Digital Revolution Is Accelerating Innovation, Driving Productivity and Irreversibly Transforming Employment Innovation, Driving Productivity and Irreversibly Transforming Employment

and the Economy and the Economy

““The prospect of contracting a gofer on an aThe prospect of contracting a gofer on an a

la carte basis is enticing.la carte basis is enticing. For instance, wouldn’t it For instance, wouldn’t it be convenient if I could outsource someone be convenient if I could outsource someone to write a paragraph here, explaining the to write a paragraph here, explaining the

history of outsourcing in Americahistory of outsourcing in America?? Good idea! I Good idea! I went ahead and commissioned just such a paragraph from went ahead and commissioned just such a paragraph from

Get Friday, a ‘virtual personal assistant- firm based in Get Friday, a ‘virtual personal assistant- firm based in Bangalore. … The paragraph arrived in my in-box ten days Bangalore. … The paragraph arrived in my in-box ten days

after I ordered it. It was 1,356 words. There is a bibliography after I ordered it. It was 1,356 words. There is a bibliography with eleven sources. … At $14 an hour for seven hours of with eleven sources. … At $14 an hour for seven hours of

work, the cost came to $98. …”work, the cost came to $98. …” —Patricia Marx, “Outsource Yourself,” —Patricia Marx, “Outsource Yourself,” The New Yorker, The New Yorker, 01.14.201301.14.2013 (Marx describes in detail contracting out everything (Marx describes in detail contracting out everything

associated with hosting her book associated with hosting her book club club —including the provision of “witty” —including the provision of “witty” comments on Proust, since she hadn’t had time to read the book—excellent comments on Proust, since she hadn’t had time to read the book—excellent

comments only set her back $5;comments only set her back $5; the writer/contractor the writer/contractor turned out to beturned out to be

a 14-a 14-yyear-old ear-old ggirl from New Jerseirl from New Jerseyy.).)

Muhammad Yunus:Muhammad Yunus: ““All human All human beings are beings are

entrepreneursentrepreneurs.. When we When we

were in the caves we were all self-were in the caves we were all self-employed . . . finding our food, feeding employed . . . finding our food, feeding ourselves. That’s where human history ourselves. That’s where human history

began . . . As civilization came we began . . . As civilization came we suppressed it. We became labor because suppressed it. We became labor because

they stamped us, ‘You are labor.’ We forgot they stamped us, ‘You are labor.’ We forgot that we are entrepreneurs.”that we are entrepreneurs.” —Muhammad Yunus/

The News Hour/PBS/1122.2006

““The ecosystem used to The ecosystem used to funnel lots of talented funnel lots of talented people into a few clear people into a few clear

winners.winners. Now it’s Now it’s funnelinfunnelingg lots of lots of

talented talented ppeoeopple into le into lots of exlots of expperimentseriments.”.”

——Tyler Willis, business developer, to Nathan Heller in Tyler Willis, business developer, to Nathan Heller in “Bay Watched: “Bay Watched: How San Francisco’s New Entrepreneurial Culture Is How San Francisco’s New Entrepreneurial Culture Is

Changing the Country,”Changing the Country,” The New YorkerThe New Yorker, 1014.13, 1014.13




USA 1996-2007USA 1996-2007

HighestHighest rate rate entrepreneurial activity entrepreneurial activity

(firms founded): (firms founded): Ages Ages 55-6455-64

LowestLowest rate: Ages rate: Ages 20-3420-34

Source: Dane Stangler, Kauffman Foundation (Source: Dane Stangler, Kauffman Foundation (EconomistEconomist))

14,00014,00020,00020,000

3030

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

3030/Craigslist/Craigslist

““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

““We all agree your We all agree your theory is crazy. theory is crazy. The The

qquestion, which uestion, which divides us, is divides us, is

whether it is crazwhether it is crazyy enouenougghh.”.” —Niels Bohr, to Wolfgang Pauli—Niels Bohr, to Wolfgang Pauli

Every project:Every project: Where’s Where’s your “Craig’s Listyour “Craig’s List

[WOW!][WOW!]

option”option”??

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!!

Innovation IndexInnovation Index:: How many of your Top 5Top 5 Strategic

Initiatives/Key Projects score 88 or higher or higher [out of 10] on a

“Weird”“Weird”//“Profound”“Profound”/ / “Wow”“Wow”//“Game-changer”“Game-changer”

Scale?

ExcellenceExcellence!!

““Excellence can be obtained if you:Excellence can be obtained if you: ... care more than others think is wise; ... care more than others think is wise; ... risk more than others think is safe; ... risk more than others think is safe; ... dream more than others think ... dream more than others think is practical;is practical; ... expect more than others think ... expect more than others think is possible.”is possible.”

Source: Anon. (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)

EXCELLENCE is EXCELLENCE is notnot an "aspiration.”an "aspiration.”

EXCELLENCE is … EXCELLENCE is … THE THE NEXTNEXT FIVE FIVE

MINUTESMINUTES..

Excellence is the Excellence is the nextnext five five

minutesminutes … …

OR NOT.OR NOT.

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.

Michelangelo