1

Conrad Hilton, at a gala Conrad Hilton, at a gala celebrating his career,celebrating his career,

was asked, “What was the was asked, “What was the most important lesson most important lesson

you’ve learned in you long you’ve learned in you long and distinguished career?” and distinguished career?”

His immediate answer …His immediate answer …

1

““remember remember to tuck the to tuck the

shower curtain shower curtain inside the inside the bathtubbathtub””

1

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

maneuvers; the simplest maneuvers; the simplest are the best and common are the best and common

sense is fundamental. From sense is fundamental. From which one might wonder which one might wonder how it is generals make how it is generals make

blunders; blunders; it is because theit is because theyy trtryy to be clever to be clever.”.” —Napoleon—Napoleon

1

““Execution Execution isis strategy.”strategy.”

—Fred Malek—Fred Malek

51

“This is so simple it sounds stupid, but it is amazing how few oil people really

understand that you only you only find oil if you find oil if you drill wellsdrill wells.. You may

think you’re finding it when you’re drawing maps and

studying logs, but you have to drill.”

Source: The Hunters, by John Masters, Canadian O & G wildcatter

61

Tom Peters’Tom Peters’

Excellence.Excellence.Always.Always.

Leaders in India/Business ForumLeaders in India/Business ForumTaj Lands End/09 October 2009Taj Lands End/09 October 2009

71

Slides Slides [incl. “LONG”][incl. “LONG”] at … at …

tompeters.comtompeters.com

8

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

that it is not a that it is not a messmess],], you need you need Microsoft fonts:Microsoft fonts:

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

andand “Verdana”“Verdana”

91

#1#1

1

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

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

1

18”18”

121

Listening isListening is ... the ultimate mark of ... the ultimate mark 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 Collaboration.Collaboration.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 are .* (*Though women are farfar better at it than men.) better at it than men.)Listening is ... the basis for Listening 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 lastlast..Listening is ... the core of Listening is ... the core of Effective Cross-functional Communication*Effective Cross-functional Communication* (*Which is in turn Attribute #1 of organizational effectiveness.)(*Which is in turn Attribute #1 of organizational effectiveness.)Listening is ... the engine of Listening is ... the engine of superior EXECUTION.superior EXECUTION.Listening is ... the key to Listening is ... the key to making the Sale.making the Sale.Listening is ... the key to Listening is ... the key to Keeping the Customer’s BusinessKeeping the Customer’s Business..Listening is ... the engine of Listening is ... the engine of Network development.Network development.Listening is ... the engine of Listening is ... the engine of Network maintenanceNetwork maintenance..Listening is ... the engine of Listening is ... the engine of Network expansionNetwork expansion..Listening is ... Listening is ... Learning.Learning.Listening is ...the Listening is ...the sine qua non of Renewalsine qua non of Renewal..Listening is ...the Listening is ...the sine qua non of Creativitysine qua non of Creativity..Listening is ...the Listening is ...the sine qua non of Innovationsine qua non of Innovation..Listening is ... the core of Listening is ... the core of taking Diverse opinions aboardtaking Diverse opinions aboard..Listening is ... Listening is ... StrategyStrategy..Listening is ... Listening is ... Source #1 of “Value-added.”Source #1 of “Value-added.”Listening is ... Listening is ... Differentiator #1.Differentiator #1.Listening is ... Listening is ... Profitable.*Profitable.* (*The “R.O.I.” from listening is higher than from any other single activity.)(*The “R.O.I.” from listening is higher than from any other single activity.)Listening underpins ... Listening underpins ... Commitment to EXCELLENCECommitment to EXCELLENCE

1

““The The fourfour most most importantimportant wordswords in in any organization any organization

are …are …

1

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

are …are … “What do “What do youyou

think?”think?”

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

151

#2#2

161

19771977Palo AltoPalo Alto

171

MBWAMBWA

181

Message from a banker, circa 1988:Message from a banker, circa 1988: “Tom let “Tom let me tell you the definition of a me tell you the definition of a

good lending officer. After good lending officer. After church on Sunday, on the way church on Sunday, on the way home with his family, he takes home with his family, he takes a little detour to drive by the a little detour to drive by the factory he just lent money to. factory he just lent money to.

Doesn’t go in or any suchDoesn’t go in or any such thing, just drives by and thing, just drives by and

takes a look.”takes a look.”

191

2255

201

Skip the mapSkip the map

1

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

or …or …

1

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

231

1. Have you in 1. Have you in thethe last 10 days … last 10 days … visitedvisited a a customer? customer?2. Have you called 2. Have you called aa customer … customer … TODAYTODAY??

241

#3#3

251

19821982

261

Excellence1982: The Bedrock “Eight Basics”Excellence1982: The Bedrock “Eight Basics”

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

1

““Breakthrough” 82*Breakthrough” 82*

People! People! Customers! Customers!

Action! Action!

Values!Values! **In Search of ExcellenceIn Search of Excellence

1

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

1

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

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

relationships))relationships))

1

nonenone!!

1

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 atisfaction referred to patient’s health health outcomeoutcome

P.S.P.S. directldirectly related to y related to StaffStaff InteractionInteraction

P.P.S.P.P.S. directldirectly correlated with y correlated with EmploEmployyee ee SatisfactionSatisfaction

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

1

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

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

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

questions costs nothing. It can be argued that negative questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive to their interactions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very costly. … needs or limiting their sense of control—can be very costly. …

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

positive way.”positive way.” ——Putting Patients FirstPutting Patients First, Susan Frampton, , Susan Frampton, Laura Gilpin, Patrick CharmelLaura Gilpin, Patrick Charmel

1

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

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

and appreciating heart.”and appreciating heart.”

—Henry Clay

341

#4#4

351

20072007SiberiaSiberia

36

Why in Why in the the World did World did youyou go to go to SiberiaSiberia??

371

EnterpriseEnterprise* ** (*at its best):* ** (*at its best): An An emotionalemotional, , vitalvital, , innovativeinnovative, , jojoyyfulful, , creativecreative, , entreentreppreneurialreneurial endeavor endeavor that elicits maximum that elicits maximum

concerted humanconcerted human potential in the potential in the wholeheartedwholehearted serviceservice of others of others.****Employees, Customers, Suppliers, Communities, Owners, Temporary partners**Employees, Customers, Suppliers, Communities, Owners, Temporary partners

381

#5#5

391

20072007SydneySydney

1

… … no less than no less than CathedralsCathedrals

in which the full and awesome in which the full and awesome power of the Imagination and power of the Imagination and

Spirit and native Spirit and native Entrepreneurial flairEntrepreneurial flair of diverse of diverse

individualsindividuals is unleashed in is unleashed in passionate pursuit of … passionate pursuit of …

ExcellenceExcellence..

411

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

employees like employees like customers.”customers.” —Herb Kelleher, —Herb Kelleher,

complete answer, upon being asked his “secrets to success”complete answer, upon being asked his “secrets to success”

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

union took out a full-page ad in USA Today thanking HK for all he had done; union took out a full-page ad in USA Today thanking HK for all he had done; across theacross the

way in Dallas American Airlines’ pilots were picketing the Annual Meeting)way in Dallas American Airlines’ pilots were picketing the Annual Meeting)

421

““We are a We are a ‘Life Success’ ‘Life Success’

Company.”Company.”Dave Liniger, founder, RE/MAX

431

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

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

worth worth doingdoing.”.”

——Richard BransonRichard Branson

441

““Leaders Leaders

‘‘SERVESERVE’’ people. people.

Period.”Period.” —inspired by Robert Greenleaf

451

Our goal is to serve our customers brilliantly and Our goal is to serve our customers brilliantly and profitably over the long haul.profitably over the long haul.

Serving our customers brilliantly and profitably over the Serving our customers brilliantly and profitably over the long haul is a product of brilliantly serving over the long long haul is a product of brilliantly serving over the long

haul the people who serve the customer.haul the people who serve the customer.Hence, our job as leaders—the alpha and the omega and Hence, our job as leaders—the alpha and the omega and everything in between—is abetting the sustained growth everything in between—is abetting the sustained growth

and success and engagement and enthusiasm and and success and engagement and enthusiasm and commitment to Excellence of those, one at a time, who commitment to Excellence of those, one at a time, who

directly or indirectly serve the ultimate customer.directly or indirectly serve the ultimate customer.We—leaders of every stripe—are in the “Human Growth We—leaders of every stripe—are in the “Human Growth

and Development and Success and Aspiration to and Development and Success and Aspiration to Excellence business.”Excellence business.”

““We” [leaders] only grow when “they” [each and every We” [leaders] only grow when “they” [each and every one of our colleagues] are growing.one of our colleagues] are growing.

““We” [leaders] only succeed when “they” [each and We” [leaders] only succeed when “they” [each and every one of our colleagues] are succeeding.every one of our colleagues] are succeeding.

““We” [leaders] only energetically march toward We” [leaders] only energetically march toward Excellence when “they” [each and every one of our Excellence when “they” [each and every one of our

colleagues] are energetically marching toward colleagues] are energetically marching toward Excellence.Excellence.

Period.Period.Source:Source: The Little BIG Things: 163 Ways to Pursue EXCELLENCE The Little BIG Things: 163 Ways to Pursue EXCELLENCE

1

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

the … the … three three peoplepeople … whose growth you’ve most … whose growth you’ve most

contributed to. Please explain where they were at the beginning of contributed to. Please explain where they were at the beginning of the year, where they are today, and where they are heading in the the year, where they are today, and where they are heading in the next 12 months. Please explain your development strategy in each next 12 months. Please explain your development strategy in each case. Please tell me your biggest development disappointment—case. Please tell me your biggest development disappointment—

looking back, could you or would you have done anything looking back, could you or would you have done anything differently? Please tell me about your greatest development differently? Please tell me about your greatest development

triumph—and disaster—in the last ten years. Whattriumph—and disaster—in the last ten years. What are the ‘three big things’ you’ve learned about helping people are the ‘three big things’ you’ve learned about helping people

grow along the way.”grow along the way.”

471

#1#1 cause of cause of

Dis-satisfaction?Dis-satisfaction?

1

Employee retention & satisfaction:Employee retention & satisfaction:

OverwhelminOverwhelminggllyy, , based on the based on the first-first-

line manaline managgerer!!

Source: Marcus Buckingham & Curt Coffman, Source: Marcus Buckingham & Curt Coffman, First, Break All the Rules: First, Break All the Rules: What the World’s Greatest Managers Do DifferentlyWhat the World’s Greatest Managers Do Differently

491

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

501

#6#6

511

Innovation:Innovation:Base CaseBase Case

521

“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate

structures, ‘How do I build a small firm for

myself?’ The answer seems obvious: Buy Buy a very large one a very large one and just waitand just wait.”.”

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

1

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

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

TheTheyy found that found that nonenone of the lonof the longg-term survivors mana-term survivors managged to ed to

outoutpperform the market. Worse, the erform the market. Worse, the lonlongger comer comppanies had been in the anies had been in the

database, the worse thedatabase, the worse theyy did did.” .” —Financial Times—Financial Times

1

“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 make a comparison companies—those that failed to make a leap or, if they did, failed to sustain it—often tried to leap or, if they did, failed to sustain it—often tried to

make themselves great with amake themselves great with a big acquisition or merger. They failed to grasp the big acquisition or merger. They failed to grasp the

simple truth that while you can buysimple truth that while you can buy your way to growth, you cannot buy your way to your way to growth, you cannot buy your way to

greatness.”greatness.” —Jim Collins/—Jim Collins/TimeTime/2004/2004

1

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

expectations, Leon Cooperman, former cochairman of Goldman Sachs’

Investment Policy Committee,

answered: I’m sure there are success stories out

there, but at this moment I draw a

blank.” —Mark Sirower, The Synergy Trap

561

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

control:control: Everything in existence tends to

deteriorate.” —Norberto Odebrecht, —Norberto Odebrecht, Education Through WorkEducation Through Work

1

“It is generally much easier to kill an

organization than change it substantially.”

—Kevin Kelly, Out of Control

581

#7#7

1

Innovation’s “Fourteen Imperatives”Innovation’s “Fourteen Imperatives”

(1)(1) Try it. Repeat. (“1/40.”) (“R.F.A.”/Ready.Fire. Aim.) (Non-Linear!)Try it. Repeat. (“1/40.”) (“R.F.A.”/Ready.Fire. Aim.) (Non-Linear!) Prototype it./MTTP (Mean Time To Prototype.)/(Inno. = Prototype it./MTTP (Mean Time To Prototype.)/(Inno. = Reaction Reaction to Proto.)to Proto.)

(2)(2) Celebrate Celebrate failure. failure. ““Whoever makes the most mistakes wins.”Whoever makes the most mistakes wins.” “ “Fail. Fail again. Fail better.”Fail. Fail again. Fail better.” “ “Reward excellent failures. Punish mediocre successes.”Reward excellent failures. Punish mediocre successes.”

(3) Decentralize.Decentralize.(4)(4) Parallel Universe. Parallel Universe. (5)(5) “Hang Out” Axiom. (Hang “cool” = More cool. Dull = Dull.) “Hang Out” Axiom. (Hang “cool” = More cool. Dull = Dull.)(6)(6) “d”iversity. ( “d”iversity. (EveryEvery dimension.) dimension.)(7)(7) Co-invent with outsiders./ Co-invent with outsiders./EntwinedEntwined with outsiders. with outsiders. (Including “Crowdsourcing.”)(Including “Crowdsourcing.”)

(8)(8) “Strategic”“Strategic” Listening = Core competence. Listening = Core competence. (9)(9) Hire and promote 100% innovators. Hire and promote 100% innovators. Innovator’s characteristic = Innovator.Innovator’s characteristic = Innovator. Innovator’s characteristic = Angry. (Anger > Blowback.)Innovator’s characteristic = Angry. (Anger > Blowback.) CEO=Innovation “bias.”CEO=Innovation “bias.”

(10)(10) XFX/Cross-functional Excellence!! (#1??) XFX/Cross-functional Excellence!! (#1??)(11)(11) Chief Complexity & Systems Destruction Officer. Chief Complexity & Systems Destruction Officer.(12)(12) R&D Equality. R&D Equality. All functions equal. (VA centerpiece./All functions equal. (VA centerpiece./AllAll staff VA-meisters.) staff VA-meisters.)

(13)(13) Fun! Self-deprecating! Fun! Self-deprecating!(14)(14) Good luck! (Entropy rules.) (Major acquisition = Dumb.) Good luck! (Entropy rules.) (Major acquisition = Dumb.) (All these things work except when they don’t.)(All these things work except when they don’t.)

1

We We areare the the companycompany we keepwe keep

611

Measure “Strangeness”/Portfolio QualityMeasure “Strangeness”/Portfolio Quality

StaffStaffConsultantsConsultants

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

Innovation Alliance PartnersInnovation Alliance PartnersCustomersCustomers

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

Strategic Initiatives Strategic Initiatives Product Portfolio Product Portfolio (LineEx v. Leap)(LineEx v. Leap)

IS/IT ProjectsIS/IT ProjectsHQ LocationHQ LocationLunch MatesLunch Mates

LanguageLanguageBoardBoard

1

The “We are what we eat”The “We are what we eat”

axiom: axiom: At its core, At its core, evereveryy (!!!) (!!!) relationship-partnership decision relationship-partnership decision

(employee, vendor, customer, etc) is (employee, vendor, customer, etc) is a a stratestrateggicic decision about: decision about:

“Innovate,“Innovate, ‘Yes’ or ‘Yes’ or ‘No’ ” ”

1

Innovation’s “Fourteen Imperatives”Innovation’s “Fourteen Imperatives”

(1)(1) Try it. Repeat. (“1/40.”) (“R.F.A.”/Ready.Fire. Aim.) (Non-Linear!)Try it. Repeat. (“1/40.”) (“R.F.A.”/Ready.Fire. Aim.) (Non-Linear!) Prototype it./MTTP (Mean Time To Prototype.)/(Inno. = Prototype it./MTTP (Mean Time To Prototype.)/(Inno. = Reaction Reaction to Proto.)to Proto.)

(2)(2) Celebrate Celebrate failure. failure. ““Whoever makes the most mistakes wins.”Whoever makes the most mistakes wins.” “ “Fail. Fail again. Fail better.”Fail. Fail again. Fail better.” “ “Reward excellent failures. Punish mediocre successes.”Reward excellent failures. Punish mediocre successes.”

(3) Decentralize.Decentralize.(4)(4) Parallel Universe. Parallel Universe. (5)(5) “Hang Out” Axiom. (Hang “cool” = More cool. Dull = Dull.) “Hang Out” Axiom. (Hang “cool” = More cool. Dull = Dull.)(6)(6) “d”iversity. ( “d”iversity. (EveryEvery dimension.) dimension.)(7)(7) Co-invent with outsiders./ Co-invent with outsiders./EntwinedEntwined with outsiders. with outsiders. (Including “Crowdsourcing.”)(Including “Crowdsourcing.”)

(8)(8) “Strategic”“Strategic” Listening = Core competence. Listening = Core competence. (9)(9) Hire and promote 100% innovators. Hire and promote 100% innovators. Innovator’s characteristic = Innovator.Innovator’s characteristic = Innovator. Innovator’s characteristic = Angry. (Anger > Blowback.)Innovator’s characteristic = Angry. (Anger > Blowback.) CEO=Innovation “bias.”CEO=Innovation “bias.”

(10)(10) XFX/Cross-functional Excellence!! (#1??) XFX/Cross-functional Excellence!! (#1??)(11)(11) Chief Complexity & Systems Destruction Officer. Chief Complexity & Systems Destruction Officer.(12)(12) R&D Equality. R&D Equality. All functions equal. (VA centerpiece./All functions equal. (VA centerpiece./AllAll staff VA-meisters.) staff VA-meisters.)

(13)(13) Fun! Self-deprecating! Fun! Self-deprecating!(14)(14) Good luck! (Entropy rules.) (Major acquisition = Dumb.) Good luck! (Entropy rules.) (Major acquisition = Dumb.) (All these things work except when they don’t.)(All these things work except when they don’t.)

1

X X =XFX*=XFX*

**ExcellenceExcellence = Cross-functional Excellence = Cross-functional Excellence

1

Never Never waste a waste a lunch!lunch!

1

????????

% XF % XF lunches*lunches*

*Measure!*Measure!

671

Geologists + Geologists + Geophysicists + Geophysicists +

A little bit of love =A little bit of love =

OilOil

1

GSK:GSK: 7 “CEDDs” 7 “CEDDs” … Centers of … Centers of

Excellence for Excellence for Drug DiscoveryDrug Discovery

1

Innovation’s “Fourteen Imperatives”Innovation’s “Fourteen Imperatives”

(1)(1) Try it. Repeat. (“1/40.”) (“R.F.A.”/Ready.Fire. Aim.) (Non-Linear!)Try it. Repeat. (“1/40.”) (“R.F.A.”/Ready.Fire. Aim.) (Non-Linear!) Prototype it./MTTP (Mean Time To Prototype.)/(Inno. = Prototype it./MTTP (Mean Time To Prototype.)/(Inno. = Reaction Reaction to Proto.)to Proto.)

(2)(2) Celebrate Celebrate failure. failure. ““Whoever makes the most mistakes wins.”Whoever makes the most mistakes wins.” “ “Fail. Fail again. Fail better.”Fail. Fail again. Fail better.” “ “Reward excellent failures. Punish mediocre successes.”Reward excellent failures. Punish mediocre successes.”

(3) Decentralize.Decentralize.(4)(4) Parallel Universe. Parallel Universe. (5)(5) “Hang Out” Axiom. (Hang “cool” = More cool. Dull = Dull.) “Hang Out” Axiom. (Hang “cool” = More cool. Dull = Dull.)(6)(6) “d”iversity. ( “d”iversity. (EveryEvery dimension.) dimension.)(7)(7) Co-invent with outsiders./ Co-invent with outsiders./EntwinedEntwined with outsiders. with outsiders. (Including “Crowdsourcing.”)(Including “Crowdsourcing.”)

(8)(8) “Strategic”“Strategic” Listening = Core competence. Listening = Core competence. (9)(9) Hire and promote 100% innovators. Hire and promote 100% innovators. Innovator’s characteristic = Innovator.Innovator’s characteristic = Innovator. Innovator’s characteristic = Angry. (Anger > Blowback.)Innovator’s characteristic = Angry. (Anger > Blowback.) CEO=Innovation “bias.”CEO=Innovation “bias.”

(10)(10) XFX/Cross-functional Excellence!! (#1??) XFX/Cross-functional Excellence!! (#1??)(11)(11) Chief Complexity & Systems Destruction Officer. Chief Complexity & Systems Destruction Officer.(12)(12) R&D Equality. R&D Equality. All functions equal. (VA centerpiece./All functions equal. (VA centerpiece./AllAll staff VA-meisters.) staff VA-meisters.)

(13)(13) Fun! Self-deprecating! Fun! Self-deprecating!(14)(14) Good luck! (Entropy rules.) (Major acquisition = Dumb.) Good luck! (Entropy rules.) (Major acquisition = Dumb.) (All these things work except when they don’t.)(All these things work except when they don’t.)