+1/-1+1/-1

S&P 500S&P 500

+1/-1*+1/-1*

*Every …*Every … 22 weeksweeks!!Source: Richard Foster (via Rita McGrath/Source: Richard Foster (via Rita McGrath/HBRHBR/12.26.13/12.26.13

““Just like other members of Just like other members of the board, the algorithm the board, the algorithm

gets to vote on whether the gets to vote on whether the firm makes an investment firm makes an investment in a specific company or in a specific company or

not. The program will be the not. The program will be the sixth member of DKV's sixth member of DKV's

board.”board.”

LONGLONG

Tom Peters’Tom Peters’

Re-ImagineRe-Imagine

EXCELLENCEEXCELLENCE!!

Gulf International Convention & Exhibition Center/10 June 2014Gulf International Convention & Exhibition Center/10 June 2014(slides at tompeters.com; also see excellencenow.com)(slides at tompeters.com; also see excellencenow.com)

Part 1: INTRODUCTION/EXCELLENCEPart 1: INTRODUCTION/EXCELLENCEPart 2: PEOPLE FIRST, SECOND …Part 2: PEOPLE FIRST, SECOND …Part 3: INNOVATION IMPERATIVEPart 3: INNOVATION IMPERATIVEPart 4: VALUE-ADDED STRATEGIESPart 4: VALUE-ADDED STRATEGIESPart 5: LEADERSHIP/EXTREMEPart 5: LEADERSHIP/EXTREME SOLUTIONSSOLUTIONS

Part 1: Part 1: INTRODUCTION/EXCELLENCEINTRODUCTION/EXCELLENCEPart 2: PEOPLE FIRST, SECOND …Part 2: PEOPLE FIRST, SECOND …Part 3: INNOVATION IMPERATIVEPart 3: INNOVATION IMPERATIVEPart 4: VALUE-ADDED STRATEGIESPart 4: VALUE-ADDED STRATEGIESPart 5: LEADERSHIP/EXTREMEPart 5: LEADERSHIP/EXTREME SOLUTIONSSOLUTIONS

1/721: “The greatest “The greatest shortcoming of the shortcoming of the human race is our human race is our

inability to inability to understand the understand the

exponential exponential function.” function.” —Albert A. Bartlett—Albert A. Bartlett

““If I had toIf I had to pick one failing pick one failing

of CEOs, it’sof CEOs, it’s that …that …

——Co-founder of one of the largest investment services firms in the USA/worldCo-founder of one of the largest investment services firms in the USA/world

“If I had to pick one failing of

CEOs, it’s that … they don’t read enough.”

CORPORATE MANDATE #1 2014:CORPORATE MANDATE #1 2014: Your Your principal moral obligation as a principal moral obligation as a

leader is to develop the skillset, leader is to develop the skillset, “soft” and “hard,” of every one “soft” and “hard,” of every one

of the people in your charge of the people in your charge (temporary as well as semi-(temporary as well as semi-permanent) to the maximum permanent) to the maximum

extent of your abilities. The good extent of your abilities. The good news: news: This is also theThis is also the

#1 mid- to lon#1 mid- to longg-term-term … … p profit maximization straterofit maximization strategy!gy!

““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

““Automation has become so Automation has become so sophisticated that on a typical sophisticated that on a typical

passenger flight, a human pilot holdspassenger flight, a human pilot holds the controls for a grand total of …the controls for a grand total of …

33 minutesminutes. [Pilots]. [Pilots]

have become, it’s not much ofhave become, it’s not much of an exaggeration to say,an exaggeration to say, computer operators.”computer operators.”

Source: Nicholas Carr, “The Great Forgetting,” Source: Nicholas Carr, “The Great Forgetting,” The AtlanticThe Atlantic, 11.13, 11.13

““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

““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

China/Foxconn:China/Foxconn:

1,000,001,000,0000 robots/next 3 robots/next 3

yearsyears

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

Robot Wars!Robot Wars!

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

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

effect,effect, aa warwar of of robotsrobots.”.” —Michael Lewis, “Goldman’s —Michael Lewis, “Goldman’s

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

““Steve, you’re Steve, you’re costing me a costing me a

hundred hundred nanoseconds. nanoseconds. [$100M/Millisecond]

CCan you at least an you at least cross it diagonally?”cross it diagonally?”

$100,000,000/Millisecond:$100,000,000/Millisecond: “Spivey* “Spivey* was all over him about the slightest detours. was all over him about the slightest detours. For instance, every so often the right-of-way For instance, every so often the right-of-way crossed over from one side of the road to the crossed over from one side of the road to the other, and the line needed to cross the road other, and the line needed to cross the road within its boundaries. These constant road within its boundaries. These constant road crossings irritated Spivey—Williams was crossings irritated Spivey—Williams was

making sharp right and left turns. making sharp right and left turns. ‘‘Steve, Steve, you’re costing me a hundred you’re costing me a hundred nanosecondsnanoseconds,’,’ he’d say. he’d say. ‘Can you ‘Can you at least cross it diagonally?’at least cross it diagonally?’ ””

——Michael LewisMichael Lewis, Flash Boys, Flash Boys

*Dan Spivey, Spread Network, $300M, 3 milliseconds (15-12), Chicago-*Dan Spivey, Spread Network, $300M, 3 milliseconds (15-12), Chicago-NJNJ

GGeneticsenetics

RRoboticsobotics

IInformaticsnformatics

NNanotechnologyanotechnology

GGeneticsenetics

RRoboticsobotics

IInformaticsnformatics

NNanotechnology*anotechnology*

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

SAVORSAVOR it? it?

Antifragile*: Antifragile*: Things That Things That Gain From Disorder From Disorder

—Nassim Nicholas Taleb—Nassim Nicholas Taleb

*Not to be confused with … RESILIENCE*Not to be confused with … RESILIENCE

EVERYTHING.EVERYTHING.EVERYBODY.EVERYBODY.

EVERYWHERE.EVERYWHERE.

IoTIoTIoEIoE

IoT/The Internet of ThingsIoT/The Internet of Things IoE/The Internet of IoE/The Internet of EverythingEverything M2M/Machine-to-MachineM2M/Machine-to-Machine Ubiquitous computingUbiquitous computing Embedded computingEmbedded computing Pervasive computingPervasive computing Industrial InternetIndustrial Internet Etc.*Etc.* **** ******

*“*“More Than More Than 50 BILLION50 BILLION connected devices by 2020” —Ericsson connected devices by 2020” —Ericsson

**Estimated **Estimated 212 BILLION212 BILLION connected devices by 2020—IDC connected devices by 2020—IDC

***“By 2025 IoT could be applicable to ***“By 2025 IoT could be applicable to $82 TRILLION$82 TRILLION of output or of output or approximately one half the global economy”—GE [The WAGs to end all WAGs!]approximately one half the global economy”—GE [The WAGs to end all WAGs!]

““Ford is working with the Ford is working with the healthcare industry on a healthcare industry on a

solution that would notify a solution that would notify a nearby hospital if you were nearby hospital if you were

having a heart attack in your having a heart attack in your car, which can send an car, which can send an

ambulance before you even ambulance before you even know you’re having one. …”know you’re having one. …”

——Daniel Kellmereit & Daniel Obodovski,Daniel Kellmereit & Daniel Obodovski, The Silent Intelligence: The Internet of Things The Silent Intelligence: The Internet of Things

SENSOR PILLS:SENSOR PILLS: “… Proteus Digital Health is one of “… Proteus Digital Health is one of several pioneers in sensor-based health technology. They several pioneers in sensor-based health technology. They make a silicon chip the size of a grain of sand that is make a silicon chip the size of a grain of sand that is embedded into a safely digested pill that is swallowed. embedded into a safely digested pill that is swallowed. When the chip mixes with stomach acids, the processor When the chip mixes with stomach acids, the processor is powered byis powered by the body’s electricity and transmits data to a patch worn the body’s electricity and transmits data to a patch worn on the skin. That patch, in turn, transmits data via on the skin. That patch, in turn, transmits data via Bluetooth to a mobile app, which then transmits the dataBluetooth to a mobile app, which then transmits the data to a central database where a health technician can to a central database where a health technician can verify if a patient has taken her or his medications. verify if a patient has taken her or his medications.

““This is a bigger deal than it may seem. In 2012, it was This is a bigger deal than it may seem. In 2012, it was estimated that people not taking their prescribed estimated that people not taking their prescribed medications cost medications cost $258 BILLION$258 BILLION in emergency room visits, in emergency room visits, hospitalization, and doctor visits. An average of hospitalization, and doctor visits. An average of 130,000130,000 Americans die each year because they don’t follow their Americans die each year because they don’t follow their prescription regimens closely enough..” [The FDA prescription regimens closely enough..” [The FDA approved placebo testing in April 2012; sensor pills are approved placebo testing in April 2012; sensor pills are ticketed to come to market in 2015 or 2016.] ticketed to come to market in 2015 or 2016.]

Source: Robert Scoble and Shel Israel, Source: Robert Scoble and Shel Israel, Age of Context: Mobile, Sensors, Data and Age of Context: Mobile, Sensors, Data and the Future of Privacythe Future of Privacy

““Robotics will drive this very Robotics will drive this very innovation. Landing page tuning will innovation. Landing page tuning will bust out of the Internet and become bust out of the Internet and become

‘interaction tuning.’ ‘interaction tuning.’ Companies Companies will apply their analytics will apply their analytics engines to all interaction engines to all interaction opportunities with people opportunities with people

everywhere: online, in the car, everywhere: online, in the car, in a supermarket isle, on the in a supermarket isle, on the

sidewalk, and of course in your sidewalk, and of course in your home.”home.” —Illah Reza Nourbakhsh, Professor of Robotics, —Illah Reza Nourbakhsh, Professor of Robotics,

Carnegie Mellon,Carnegie Mellon, Robot Futures Robot Futures

Walmart SV =Walmart SV =

1,5001,500

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

““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

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

Wall Street JournalWall Street Journal, 0910.13:, 0910.13: “What matters most to a “What matters most to a company over time? Strategy or culture?”company over time? Strategy or culture?”Dominic Barton,Dominic Barton,** MD, McKinsey & Co.: MD, McKinsey & Co.: “Culture.” “Culture.”

Bill Walsh,Bill Walsh,** NFL Hall of Fame Coach: NFL Hall of Fame Coach: “Culture precedes “Culture precedes positive results. It doesn’t get tacked on as an positive results. It doesn’t get tacked on as an afterthought on the way to the victory stand.”afterthought on the way to the victory stand.”

Lou Gerstner,Lou Gerstner,** former CEO, IBM: former CEO, IBM: “If I could have chosen “If I could have chosen not to tackle the IBM culture head-on, I probably not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in was toward strategy, wouldn’t have. My bias coming in was toward strategy, analysis, and measurement. In comparison, changing the analysis, and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of attitude and behaviors of hundreds of thousands of

people is very, very hard. people is very, very hard. Yet I came to see in Yet I came to see in my time at IBM that culture isn’t just one my time at IBM that culture isn’t just one aspect of the game—aspect of the game—IT IS THE GAMEIT IS THE GAME.”.” *Note that all three of these CEOs are/were charter members of the Hard-ass School of Management. *Note that all three of these CEOs are/were charter members of the Hard-ass School of Management. This was a realization that emerged for each one over time, but is stated here—UNEQUIVOCALLY.This was a realization that emerged for each one over time, but is stated here—UNEQUIVOCALLY.

““Of Service”Of Service”

ORGANIZATIONS ORGANIZATIONS EXISTEXIST TO TO SERVESERVE. .

PERIOD.PERIOD.

LEADERS LEADERS LIVELIVE TO TO SERVESERVE. PERIOD.. PERIOD.

WINNERS’ WINNERS’

RulesRules!!

Michael Raynor and Mumtaz Ahmed’: Michael Raynor and Mumtaz Ahmed’: THE THREE RULES: THE THREE RULES: How Exceptional Companies Think*How Exceptional Companies Think*::

1. 1. Better before cheaper.Better before cheaper.2. 2. Revenue before cost.Revenue before cost.3. 3. There are no other rules.There are no other rules.(*From a database of over 25,000 companies from hundreds of industries covering 45 years, they uncovered (*From a database of over 25,000 companies from hundreds of industries covering 45 years, they uncovered 344 companies that qualified as statistically “exceptional.”)344 companies that qualified as statistically “exceptional.”)

Jeff Colvin, Jeff Colvin, FortuneFortune: “The Economy Is Scary … But Smart : “The Economy Is Scary … But Smart Companies Can Dominate”:Companies Can Dominate”:

They manage for value—not for EPS.They manage for value—not for EPS.They keep developing human capital.They keep developing human capital.They get radically customer-centric.They get radically customer-centric.

WINNERSWINNERS!!

THE RED THE RED CARPET CARPET STORESTORE

(Flemington NJ)(Flemington NJ)

The Magicians of The Magicians of Motueka & the Mittelstand TrifectaMotueka & the Mittelstand Trifecta

W.A. Coppins Ltd.*W.A. Coppins Ltd.*(Coppins Sea Anchors/(Coppins Sea Anchors/PSA/para sea anchors)PSA/para sea anchors)

*Textiles, 1898; thrive on *Textiles, 1898; thrive on “wicked problems”“wicked problems”——e.g., e.g., U.S. NavyU.S. Navy STLVAST (Small To Large Vehicle At Sea STLVAST (Small To Large Vehicle At Sea

Transfer); custom fabric from Transfer); custom fabric from W. WiW. Wiggggins Ltdins Ltd./Wellington ./Wellington

(specialty nylon, “Dyneema,” from (specialty nylon, “Dyneema,” from DSMDSM/Netherlands)/Netherlands)

+1/-1+1/-1

S&P 500S&P 500

+1/-1*+1/-1*

*Every …*Every … 22 weeksweeks!!Source: Richard Foster (via Rita McGrath/Source: Richard Foster (via Rita McGrath/HBRHBR/12.26.13/12.26.13

“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

MITTELSTANDMITTELSTAND**

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

I loveI love Middle-sized Middle-sized Niche- Niche-

Micro-niche Micro-niche Dominators!Dominators!

"Own" a niche through Excellence!"Own" a niche through Excellence!

““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

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

Independent Independent Stores in Stores in

AmericaAmerica —by George Whalin—by George Whalin

RETAIL SUPERSTARS: INSIDE THE 25 BEST RETAIL SUPERSTARS: INSIDE THE 25 BEST INDEPENDENT STORES IN AMERICAINDEPENDENT STORES IN AMERICA—George Whalin—George Whalin

JUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OH:JUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OH: ““An adventure in ‘shoppertainment,’ begins in the parking An adventure in ‘shoppertainment,’ begins in the parking

lot and goes on to lot and goes on to 1,6001,600 cheeses and, yes, cheeses and, yes,

1,4001,400 varieties of hot sauce—not to mention 12,000 varieties of hot sauce—not to mention 12,000

wines priced from wines priced from $8-$$8-$8,0008,000 a bottle; all a bottle; all

this is brought to you by this is brought to you by 4,0004,000 vendors. vendors.

Customers come from every corner of the globe.”Customers come from every corner of the globe.”

BRONNER’S CHRISTMAS WONDERLAND, FRANKENMUTH, MI, BRONNER’S CHRISTMAS WONDERLAND, FRANKENMUTH, MI, POP 5,000:POP 5,000: 98,000-square-foot “shop” features 98,000-square-foot “shop” features

6,0006,000 Christmas ornaments, Christmas ornaments, 50,000 50,000 trims, and anything else you can name pertaining to trims, and anything else you can name pertaining to

Christmas.Christmas.

Going “Social”/Location and Size Independent: Going “Social”/Location and Size Independent: SM/SX/SE/SO/SBSM/SX/SE/SO/SB

““Today, despite the fact that we’re jToday, despite the fact that we’re just a little swimminust a little swimmingg ppool comool comppananyy in Vir in Virgginiainia, we have the most trafficked , we have the most trafficked swimming pool website in the world. Five years ago, if swimming pool website in the world. Five years ago, if you’d asked me and my business partners what we do, you’d asked me and my business partners what we do,

the answer would have been simple, ‘We build in-ground the answer would have been simple, ‘We build in-ground

fiberglass swimming pools’ Now we say,fiberglass swimming pools’ Now we say, ‘We ‘We are the best teachersare the best teachers … … in the worldin the world … on the … on the subject of fiberglass swimming subject of fiberglass swimming

pools, and we also happen to build pools, and we also happen to build them.’”them.’”

——Jay Baer, YJay Baer, Youtility: Why Smart Marketing Is About Help, Not Hypeoutility: Why Smart Marketing Is About Help, Not Hype

Small (Small (EntrepreneurialEntrepreneurial) BUSINESS:) BUSINESS:

Training Inc.Training Inc. , a 14- , a 14-person unit* in a 50-person person unit* in a 50-person HR department in a $200M HR department in a $200M

business unit in a $3B business unit in a $3B corporation—aiming for corporation—aiming for

Excellence & WOW!Excellence & WOW!

**PSFPSF// Professional Service Firm (See my … Professional Service Firm (See my …

Professional Service Firm 50: Fifty Ways to Transform Your Professional Service Firm 50: Fifty Ways to Transform Your “Department” Into A Professional Service Firm Whose “Department” Into A Professional Service Firm Whose

Trademarks Are Passion and Innovation.Trademarks Are Passion and Innovation.))

Part 1: INTRODUCTION/EXCELLENCEPart 1: INTRODUCTION/EXCELLENCEPart 2: Part 2: PEOPLE FIRST, SECOND …PEOPLE FIRST, SECOND …Part 3: INNOVATION IMPERATIVEPart 3: INNOVATION IMPERATIVEPart 4: VALUE-ADDED STRATEGIESPart 4: VALUE-ADDED STRATEGIESPart 5: LEADERSHIP/EXTREMEPart 5: LEADERSHIP/EXTREME SOLUTIONSSOLUTIONS

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

lives …lives …

#1#1/4,096/4,096

““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

““The greatest satisfaction for management has come not from the The greatest satisfaction for management has come not from the financial growth of Camellia itself, but rather from having financial growth of Camellia itself, but rather from having

participated in the vast improvement in the living and working participated in the vast improvement in the living and working conditions of its employees, resulting from the investment of many conditions of its employees, resulting from the investment of many

tens of millions of pounds into the tea gardens’ infrastructure of tens of millions of pounds into the tea gardens’ infrastructure of roads, factories, hospitals, employees’ housing and amenities. … roads, factories, hospitals, employees’ housing and amenities. …

Within the Camellia Group there is a strong aesthetic dimension, an Within the Camellia Group there is a strong aesthetic dimension, an intention that it should comprise companies and assets of the intention that it should comprise companies and assets of the

highest quality, operating from inspiring offices and manufacturing highest quality, operating from inspiring offices and manufacturing in state of thein state of the

art facilities. art facilities. … … Above all, there is a deeAbove all, there is a deepp concern for the welfare of each concern for the welfare of each

emempploloyyee. This arises not onlee. This arises not onlyy from from a sense of humanita sense of humanity,y, but also from but also from the conviction that the lothe conviction that the loyyaltaltyy of a of a secure and enthusiastic emsecure and enthusiastic empploloyyeeee

will in the lon will in the longg-term -term pprove to be an rove to be an invaluable cominvaluable comppany assetany asset.”.”

——CamelliaCamellia: A Very Different Company: A Very Different Company [$600M/$160M/$100M][$600M/$160M/$100M]

““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

““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)

"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"

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

EXCELLENT EXCELLENT customer experiencecustomer experiencedepends … depends … entirely …entirely …

onon EXCELLENT EXCELLENT employee experience!employee experience!

If you want to WOW your If you want to WOW your

customers, customers, FIRSTFIRST you you must WOW those whomust WOW those who WOW the customers!WOW the customers!

““Contrary to Contrary to conventional corporate conventional corporate thinking, treating retail thinking, treating retail

workers much better workers much better makes everyone makes everyone ((including their including their

employersemployers)) much much richer.”richer.”

——New York Times/ New York Times/ 01.05.14,01.05.14, Adam Davidson, Planet Money/NPR (Cited in Adam Davidson, Planet Money/NPR (Cited in particular, “The Good Jobs Strategy,” by M.I.T. professor Zeynep Ton)particular, “The Good Jobs Strategy,” by M.I.T. professor Zeynep Ton)

Wegmans Wegmans (was #1 in USA)(was #1 in USA) Container Store Container Store (was #1 in USA)(was #1 in USA)

Whole FoodsWhole FoodsCostcoCostcoPublixPublixDarden RestaurantsDarden RestaurantsBuild-A-Bear WorkshopsBuild-A-Bear WorkshopsStarbucksStarbucks

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.

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

7 Steps to Sustaining Success7 Steps to Sustaining Success

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

7 Steps to Sustaining Success & Excellence7 Steps to Sustaining Success & Excellence

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

Brand Brand = =

Talent.Talent.

Training As Training As InvestmentInvestment

#1#1

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.

Training [Training [OBVIOUSLYOBVIOUSLY!] !] #1#1::

Police. Fire. Police. Fire. Military. Opera. Military. Opera.

Symphony. Symphony. Theater. Sports. Theater. Sports.

Etc.Etc.

Is your CTO/Chief Training Officer your top paid “C-level” job (other than Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?CEO/COO)?If not, why not?If not, why not?

Are your top trainers paid as much as your top marketers and engineers?Are your top trainers paid as much as your top marketers and engineers?If not, why not?If not, why not?

Are your training courses so good they make you giggle and tingle?Are your training courses so good they make you giggle and tingle?If not, why not?If not, why not?

Randomly stop an employee in Randomly stop an employee in the hall:the hall: Can she/he Can she/he meticulously describe her/his meticulously describe her/his development plan for the next development plan for the next 12 months?12 months?If not, why not?If not, why not?

Why is your world of business any different than the (competitive) world of Why is your world of business any different than the (competitive) world of rugby, football, opera, theater, rugby, football, opera, theater, the military?the military?If “people/talent first” and hyper-intense continuous training are laughably If “people/talent first” and hyper-intense continuous training are laughably obviously for them, why not you? obviously for them, why not you?

Is your CTO/Chief Training Officer your top paid “C-level” job (other than Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?CEO/COO)?If not, why not?If not, why not?

Are your top trainers paid as much as your top marketers and engineers?Are your top trainers paid as much as your top marketers and engineers?If not, why not?If not, why not?

Are your training courses so good they make you giggle and tingle?Are your training courses so good they make you giggle and tingle?If not, why not?If not, why not?

Should be able to get Should be able to get immediate answer upon immediate answer upon stopping anyone at any time stopping anyone at any time and asking, and asking, “What have you “What have you learned today?”learned today?”If not, why not?If not, why not?

Why is your world of business any different than the (competitive) world of Why is your world of business any different than the (competitive) world of rugby, football, opera, theater, rugby, football, opera, theater, the military?the military?If “people/talent first” and hyper-intense continuous training are laughably If “people/talent first” and hyper-intense continuous training are laughably obviously for them, why not you? obviously for them, why not you?

““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

Is your CTO/Chief Training Officer your top paid “C-level” Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?job (other than CEO/COO)?If not, why not?If not, why not?Are your top trainers paid as much as your top Are your top trainers paid as much as your top marketers and engineers?marketers and engineers?If not, why not?If not, why not?Are your training courses so good they make you giggle Are your training courses so good they make you giggle and tingle?and tingle?If not, why not?If not, why not?Randomly stop an employee in the hall: Can she/he Randomly stop an employee in the hall: Can she/he meticulously describe her/his development plan for the meticulously describe her/his development plan for the next 12 months?next 12 months?If not, why not?If not, why not?Why is your world of business any different than the Why is your world of business any different than the (competitive) world of rugby, football, opera, theater, (competitive) world of rugby, football, opera, theater, the military?the military?If “people/talent first” and hyper-intense continuous If “people/talent first” and hyper-intense continuous training are laughably obviously for them, why not you? training are laughably obviously for them, why not you?

Gamblin’ ManGamblin’ Man

Bet:Bet: >> 5 of 10 CEOs see training >> 5 of 10 CEOs see training as expense rather than as expense rather than investment.investment.Bet:Bet: >> 5 of 10 CEOs see training >> 5 of 10 CEOs see training as defense rather than offense.as defense rather than offense.Bet:Bet: >> 5 of 10 CEOs see training >> 5 of 10 CEOs see training as “necessary evil” rather than as “necessary evil” rather than “strategic opportunity.”“strategic opportunity.”Bet:Bet: >> 8 of 10 CEOs, in 45-min >> 8 of 10 CEOs, in 45-min “tour d’horizon” of their “tour d’horizon” of their business, would not mention business, would not mention training.training.

Boss & RPD:Boss & RPD: Your [boss] job Your [boss] job is safer if every one of is safer if every one of your team members is your team members is

committed to committed to

RPD/Radical RPD/Radical Personal Personal

DevelopmentDevelopment. . Actively support one Actively support one

and all!and all!

Education As Education As

PriorityPriority #1#1

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

artist.”artist.” —Picasso—Picasso

““All human beings are All human beings are entrepreneurs.”entrepreneurs.” —Muhammad Yunus—Muhammad Yunus

““Human creativity is the Human creativity is the ultimate economic resource.”ultimate economic resource.”

——Richard FloridaRichard Florida

"Creativity can no longer be "Creativity can no longer be treated as an elective.”treated as an elective.” —John Maeda—John Maeda

The very best and the The very best and the very brightest and the very brightest and the

most energetic and most energetic and enthusiastic and enthusiastic and

entrepreneurial and entrepreneurial and tech-savvy of our tech-savvy of our

university graduates university graduates must—must—mustmust, , notnot shouldshould

—be lured—be lured into teaching!into teaching!

RADICALRADICAL curricular revision curricular revision imperative. imperative. (STEM/STE(STEM/STEAAM.)M.)

RADICALRADICAL digital strategy. digital strategy.REVOLUTIONARYREVOLUTIONARY new approach to new approach to teacher recruitment/development.teacher recruitment/development.RADICALRADICAL re-assessment of tertiary re-assessment of tertiary

education education (E.g., “MOOC-ization.”)(E.g., “MOOC-ization.”)

RADICALRADICAL re-assessment business re-assessment business ed.ed.

RADICALRADICAL role re-assessment by role re-assessment by corporations.corporations.

(Good news: Nobody’s got it right. Kids are doing it without you—if you’ll let (Good news: Nobody’s got it right. Kids are doing it without you—if you’ll let them.)them.)

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 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.”

““In a way, the world is a great liar. It shows you it worships In a way, the world is a great liar. It shows you it worships and admires money, but at the end of the day it doesn’t. It and admires money, but at the end of the day it doesn’t. It says it adores fame and celebrity, but it doesn’t, not really. says it adores fame and celebrity, but it doesn’t, not really. The world admires, and wants to hold on to, and not lose, The world admires, and wants to hold on to, and not lose, goodness. It admires virtue. At the end it gives its greatest goodness. It admires virtue. At the end it gives its greatest

tributes to generosity, honesty, courage, mercy, talents well tributes to generosity, honesty, courage, mercy, talents well used, talents that, brought into the world, make it better. used, talents that, brought into the world, make it better. That’s what it really admires. That’s what we talk about in That’s what it really admires. That’s what we talk about in

eulogies, because that’s what’s important. eulogies, because that’s what’s important.

We don’t say, ‘The thing about Joe We don’t say, ‘The thing about Joe was he was rich!’ We say, if we can was he was rich!’ We say, if we can … ‘The thing about Joe was he took … ‘The thing about Joe was he took

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

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

““The Gross National ProductThe Gross National Product does not include the beauty of does not include the beauty of our poetry or the intelligence of our poetry or the intelligence of our public debate. It measures our public debate. It measures

neither our wit nor our courage, neither our wit nor our courage, neither our wisdom nor our neither our wisdom nor our

learning, neither our compassion learning, neither our compassion nor our devotion. It measures nor our devotion. It measures

everything, in short, except that everything, in short, except that which makes life worthwhile.”which makes life worthwhile.”

——RFKRFK

A 15-PointA 15-Point Human Capital Human Capital

Asset Development Asset Development ManifestoManifesto

World Strategy Forum/World Strategy Forum/The New Rules: Reframing CapitalismThe New Rules: Reframing Capitalism

Tom Peters/Seoul/0615.12Tom Peters/Seoul/0615.12

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

1. 1. “Corporate social responsibility” starts at “Corporate social responsibility” starts at home—i.e., inside the enterprise!home—i.e., inside the enterprise! MAXIMIZING MAXIMIZING GDD/Gross Domestic Development of the GDD/Gross Domestic Development of the workforce is the primary source of mid-term workforce is the primary source of mid-term and beyond growth and profitability—and and beyond growth and profitability—and maximizes national productivity and wealth.maximizes national productivity and wealth. (Re profitability: (Re profitability: If you want to serve the If you want to serve the customer with uniform Excellence, then you customer with uniform Excellence, then you must FIRST effectivelmust FIRST effectivelyy and faithfull and faithfullyy serve serve those who serve the customer—i.e. our those who serve the customer—i.e. our emploemployyees, via maximizinees, via maximizingg tools and tools and pprofessional develorofessional developpmentment.).)

2. 2. Regardless of the transient external Regardless of the transient external situation, development of “human capital” is situation, development of “human capital” is always the #1 priority.always the #1 priority. This is true in general, in This is true in general, in particular in difficult times which demand particular in difficult times which demand resilience—and uniquely true in this age in resilience—and uniquely true in this age in which IMAGINATIVE brainwork is de facto the which IMAGINATIVE brainwork is de facto the only plausible survival strategy for higher wage 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 y bbeineingg pperformed berformed byy exponentiall exponentiallyy enhanced enhanced artificial intelliartificial intelliggenceence.).)

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.)

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

5. 5. The training budget takes precedence over The training budget takes precedence over the capital budget.the capital budget. PERIOD. It’s easier fun to PERIOD. It’s easier fun to get your picture taken next to a new machine. get your picture taken next to a new machine. But how do you get a photo of a new and much But how do you get a photo of a new and much improved attitude in a key distribution center? improved attitude in a key distribution center? But the odds are 25:1 that the new attitude But the odds are 25:1 that the new attitude will add more to the bottom line than will the will add more to the bottom line than will the glorious state-of-the-art machine. glorious state-of-the-art machine.

6. 6. Human capital development should Human capital development should routinely sit atop any agenda or document routinely sit atop any agenda or document associated with enterprise strategy.associated with enterprise strategy. Most any Most any initiative you undertake should formally initiative you undertake should formally address implications for and contributions to address implications for and contributions to human capital asset development. human capital asset development.

CORPORATE MANDATE #1 2014:CORPORATE MANDATE #1 2014: Your Your principal moral obligation as a principal moral obligation as a

leader is to develop the skillset, leader is to develop the skillset, “soft” and “hard,” of every one “soft” and “hard,” of every one

of the people in your charge of the people in your charge (temporary as well as semi-(temporary as well as semi-permanent) to the maximum permanent) to the maximum

extent of your abilities. The good extent of your abilities. The good news: news: This is also theThis is also the

#1 mid- to lon#1 mid- to longg-term-term … … p profit maximization straterofit maximization strategy!gy!

In In Good BusinessGood Business, Mihaly Csikszentmihalyi argues , Mihaly Csikszentmihalyi argues persuasively that business has become the center of persuasively that business has become the center of

society. As such, an obligation to community is front & society. As such, an obligation to community is front & center. Business as societal bedrock, has the center. Business as societal bedrock, has the

RESPONSIBILITY to increase theRESPONSIBILITY to increase the ““SUMSUM OF OF HUMANHUMAN WELLWELL--BEINGBEING.”.”

Business is NOT "part of the community."Business is NOT "part of the community." In terms of In terms of how adults collectively spend their waking how adults collectively spend their waking

hours … business hours … business ISIS the community. the community. And And

should act accordingly. The (REALLY) good news:should act accordingly. The (REALLY) good news: Community mindedness is a great way [the Community mindedness is a great way [the

BEST way?] to have BEST way?] to have spirited/committed/customer-centric work spirited/committed/customer-centric work

force—and, ultimately, increase [maximize?] force—and, ultimately, increase [maximize?] profitability!profitability!

Addenda: Addenda: The Mauritius DoctrineThe Mauritius Doctrine

On 16 April 2014, I spoke to 1,300 SME chiefs in Mauritius at a conference On 16 April 2014, I spoke to 1,300 SME chiefs in Mauritius at a conference organized by The National Productivity and Competitiveness Council, and organized by The National Productivity and Competitiveness Council, and

that included the Vice Prime Minister. I upped the stridency of my tone relativethat included the Vice Prime Minister. I upped the stridency of my tone relative not not to government actions—but relative to business’ obligation to develop itsto government actions—but relative to business’ obligation to develop its

work force. Moreover, I asserted this was as true for a 6-person businesswork force. Moreover, I asserted this was as true for a 6-person business as for a 6,000-person outfit. Yes … wee companies can (and ought) as for a 6,000-person outfit. Yes … wee companies can (and ought)

become “training/development maniacs.” become “training/development maniacs.”

Honing my new/uncompromising message:Honing my new/uncompromising message: Especially in uncertain Especially in uncertain times which are sapping global employment security, it times which are sapping global employment security, it is the … is the … foremostforemost moralmoral resrespponsibilitonsibility … of businesses y … of businesses

to abet the radical development of their employees.to abet the radical development of their employees.

National productivity improvement is less about a few giants than National productivity improvement is less about a few giants than about incremental efforts by the great mass of small businesses.about incremental efforts by the great mass of small businesses.

My training [& development] message in general is extreme. My training [& development] message in general is extreme. But the But the truly radical notion is that “training & development truly radical notion is that “training & development

maniacs” applies to the 5-person enterprise as much as maniacs” applies to the 5-person enterprise as much as it does to the giant.it does to the giant.

Part 1: INTRODUCTION/EXCELLENCEPart 1: INTRODUCTION/EXCELLENCEPart 2: PEOPLE FIRST, SECOND …Part 2: PEOPLE FIRST, SECOND …Part 3: Part 3: INNOVATION IMPERATIVEINNOVATION IMPERATIVEPart 4: VALUE-ADDED STRATEGIESPart 4: VALUE-ADDED STRATEGIESPart 5: LEADERSHIP/EXTREMEPart 5: LEADERSHIP/EXTREME SOLUTIONSSOLUTIONS

11/48/48(No kidding)(No kidding)

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)

““The first EDSer to see a The first EDSer to see a snake kills it. At GM, the first snake kills it. At GM, the first

thing you do is organize a thing you do is organize a committee on snakes. Then committee on snakes. Then you bring in a consultant you bring in a consultant who knows a lot about who knows a lot about

snakes. Third thing you do is snakes. Third thing you do is talk about it for a year.”talk about it for a year.” —H. Ross Perot, EDS founder, former GM board member—H. Ross Perot, EDS founder, former GM board member

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

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

““We made mistakes, of course. Most of them were omissions We made mistakes, of course. Most of them were omissions

we didn’t think of when we initially wrote the software. we didn’t think of when we initially wrote the software. We We fixed them bfixed them byy doin doingg it over and over, it over and over, aaggain and aain and aggain.ain. 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 make the their thumbs trying to make the design perfect, we’re already on prototype versiondesign perfect, we’re already on prototype version

##55.. By the time our rivals are ready with wires By the time our rivals are ready with wires

and screws, we are on version and screws, we are on version ##1010.. It It

ggets back to ets back to pplanninlanningg versus actin versus acting: g: We We act from day oneact from day one; ; others others pplan how tolan how to pplanlan——for monthsfor months.”.” —Bloomberg by Bloomberg—Bloomberg 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

““EXPERIMENT EXPERIMENT FEARLESSLY”FEARLESSLY”

Source: BusinessWeek, “Type A Organization Strategies: How to Hit a Moving Target”—Tactic #1Tactic #1

“RELENTLESS TRIAL“RELENTLESS TRIAL AND ERROR” AND ERROR”

Source: Source: Wall Street JournalWall Street Journal, cornerstone of effective approach to “rebalancing” company, cornerstone of effective approach to “rebalancing” company portfolios in the face of changing and uncertain global economic conditions (11.08.10) portfolios in the face of changing and uncertain global economic conditions (11.08.10)

Scrum ManagementScrum Management

1. Organize the work in 1. Organize the work in shortshort ccyyclescles..2. Management 2. Management doesn’tdoesn’t interruinterrupptt the team the team

during a work cycle.during a work cycle.3. The team reports to 3. The team reports to thethe clientclient, not the , not the

manager.manager.4. The team decides 4. The team decides howhow muchmuch timetime work will work will

take.take.5. The team decides how 5. The team decides how muchmuch work it can do in work it can do in

an iteration.an iteration.6. The team decides 6. The team decides howhow to do the work in the to do the work in the

iteration.iteration.7. The team 7. The team measuresmeasures itsits ownown p performanceerformance..8. Define work goals 8. Define work goals beforebefore each cycle starts. each cycle starts.9. Define work goals through 9. Define work goals through useruser storiesstories..10. Systematically 10. Systematically removeremove imimppedimentsediments..

Source: Steve Denning/Source: Steve Denning/Forbes/Forbes/0429.110429.11

Lesson47:Lesson47: WTTMSWTTMS

WW

WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTSTUFFSTUFFWINSWINS

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

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

somewhere else.”somewhere else.” — —

Buckminster FullerBuckminster Fuller

FAIL.FAIL. FORWARD. FORWARD.

FAST.FAST.

““FAIL.FAIL. FORWARD. FORWARD.

FAST.”FAST.”High Tech CEO, Pennsylvania

““REWARDREWARD excellent failures. PUNISHPUNISH mediocre

successes.”—Phil Daniels, Sydney exec

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

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

of Innovationof Innovation

Ideas Economy: Ideas Economy: CAN YOUR CAN YOUR

BUSINESS FAIL BUSINESS FAIL FAST ENOUGH TO FAST ENOUGH TO

SUCCEED?SUCCEED?Source: ad for Economist Conference/0328.13/Berkeley CA (caps are Source: ad for Economist Conference/0328.13/Berkeley CA (caps are EconomistEconomist))

WTTMSWTTMSASTMSUTFASTMSUTFWW

WTTMSWTTMSASTMSUTFASTMSUTFWW

WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTSTUFFSTUFFANDANDSCREWS SCREWS THE THE MOST MOST STUFF STUFF UPUP THETHEFASTESTFASTESTWINSWINS

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

““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

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

Diversity:Diversity: “It is hardly possible to “It is hardly possible to overrate the value of placing overrate the value of placing human beings in contact with human beings in contact with persons dis-similar to themselves, persons dis-similar to themselves, and with modes of thought and and with modes of thought and action unlike those with which action unlike those with which they are familiar. Such they are familiar. Such communication has always been, communication has always been, and is peculiarly in the present and is peculiarly in the present age, one of the primary sources of age, one of the primary sources of progress.”progress.” —John Stuart Mill—John Stuart Mill

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!!””

CROWD POWERCROWD POWER!!

““The Billion-man The Billion-man Research Team: Research Team:

Companies offering Companies offering work to online work to online

communities are communities are reaping the benefits of reaping the benefits of

‘crowdsourcing.’”‘crowdsourcing.’” —Headline, —Headline, FTFT

CURIOSITYCURIOSITY!!

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

Mike Bloomberg:Mike Bloomberg:

““Curiosity.”Curiosity.”

““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

““Do one thing Do one thing every day that every day that scares you.”scares you.”

—Eleanor Roosevelt

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

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??

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???)

Innovation IndexInnovation Index:: Move Move

every project (definition) every project (definition) 22 notches up on the notches up on the

“WOWification “WOWification Scale”Scale” … … THIS THIS

WEEKWEEK. .

““WOWification”WOWification”

… … TOTALLY TOTALLY UNUN-related -related

to project sizeto project size!!

InnovateInnovate or Die: or Die:

UbiquitousUbiquitous

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.*

Part 1: INTRODUCTION/EXCELLENCEPart 1: INTRODUCTION/EXCELLENCEPart 2: PEOPLE FIRST, SECOND …Part 2: PEOPLE FIRST, SECOND …Part 3: INNOVATION IMPERATIVEPart 3: INNOVATION IMPERATIVEPart 4: Part 4: VALUE-ADDED STRATEGIESVALUE-ADDED STRATEGIESPart 5: LEADERSHIP/EXTREMEPart 5: LEADERSHIP/EXTREME SOLUTIONSSOLUTIONS

TGRs:TGRs:8/808/80

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?

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

sir?”sir?”

““Let me help Let me help you down you down

the jetway.”the jetway.”

It It BEGINSBEGINS (and (and ENDSENDS) )

in the …in the …

PARKINGPARKING LOTLOT**

*Disney*Disney

““It’s simple, really, It’s simple, really, Tom. Hire forTom. Hire for s, s,

and, and, aboveabove allall, , ppromoteromote for for s.”s.”

—Starbucks regional manager, —Starbucks regional manager, on why so many smiles at Starbucks shopson why so many smiles at Starbucks shops

<TG<TGWandand … …

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

““ExExpperienceseriences are as distinct are as distinct from servicesfrom services

as services are as services are from goods.”from goods.”

—Joe Pine & Jim Gilmore, —Joe Pine & Jim Gilmore, The Experience Economy: The Experience Economy: Work Is Theatre & Every Business a StageWork Is Theatre & Every Business a Stage

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

LBTsLBTs

LITTLE =LITTLE =

BIGBIG

Big carts =Big carts =

1.5X1.5XSource: WalmartSource: Walmart

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

Machine GamblingMachine Gambling

““Pleasing” odor #1 vs. Pleasing” odor #1 vs. “pleasing” odor #2: “pleasing” odor #2:

+45%+45% revenue revenue

Source:Source: “Effects of Ambient Odors on Slot-Machine Useage in Las Vegas “Effects of Ambient Odors on Slot-Machine Useage in Las Vegas Casinos,” reported inCasinos,” reported in Natasha Dow Schull, Natasha Dow Schull, Addiction By Design: Addiction By Design:

Machine Gambling in Las Vegas Machine Gambling in Las Vegas (66% revenue, 85% profit)(66% revenue, 85% profit)

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)

““With its carefully conceived mix of colors and With its carefully conceived mix of colors and textures,textures, aromas and music,aromas and music,

STARBUCKSSTARBUCKS is more indicative of our is more indicative of our era than the iMac. It is to the era than the iMac. It is to the AAggee ofof AestheticsAesthetics

what McDonald’s was to the what McDonald’s was to the AAggee ofof ConvenienceConvenience or Ford was to the Age of Mass or Ford was to the Age of Mass

Production—the touchstone success story, the Production—the touchstone success story, the exemplar of … the aesthetic imperative. …exemplar of … the aesthetic imperative. …

‘Every Starbucks store is carefully ‘Every Starbucks store is carefully designed to enhance the qualitydesigned to enhance the quality

of everything the customers see, of everything the customers see, touch, hear, smell or taste,’touch, hear, smell or taste,’ writeswrites

CEO Howard Schultz.” CEO Howard Schultz.” —Virginia Postrel, The Substance of Style: How the Rise of Aesthetic

Value Is Remaking Commerce, Culture and Consciousness

Hypothesis:Hypothesis: DESIGNDESIGN is the is the pprincirincippalal

differencedifference

between between lovelove

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

Design is …Design is …

NEVERNEVER neutralneutral..

CCDDO*O**Chief *Chief DDesign Officeresign Officer

DESIGN =DESIGN =

EVERYTHINGEVERYTHING!!

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

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

the meaning of design.the meaning of design. DESIGNDESIGN IS THE IS THE

FUNDAMENTALFUNDAMENTAL SOULSOUL OF A MAN-MADE OF A MAN-MADE

CREATION.”CREATION.” —Steve Jobs—Steve Jobs

““Design is Design is evereveryythinthing. g. Everything is Everything is desidesiggnn.”.”

““We are We are allall designers.” designers.”

Inspiration:Inspiration: The Power of Design: A Force for The Power of Design: A Force for Transforming Everything, Transforming Everything, Richard FarsonRichard Farson

GREAT DESIGN =GREAT DESIGN = ONEONE-PAGE -PAGE

BUSINESS PLANBUSINESS PLAN

Source: Jim HoranSource: Jim Horan

““If you can’t write If you can’t write your movie idea on your movie idea on

the the back of a back of a businessbusiness

cardcard,, you ain’t you ain’t got a movie.”got a movie.” —Samuel —Samuel

GoldwynGoldwyn

DESIGNDESIGN: : Your next Your next email …email …

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

Today Today (Of Everything)(Of Everything)

““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]

““Businesspeople Businesspeople don’t need to don’t need to ‘understand ‘understand

designers better.’ designers better.’ Businesspeople need Businesspeople need

to to bebe designers.” designers.” —Roger Martin/Dean/Rotman Management School/University of Toronto—Roger Martin/Dean/Rotman Management School/University of Toronto

CCNNOO& Social & Social BusinessBusiness

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. 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

Biz 2014: Get Aboard the “S-Train”Biz 2014: Get Aboard the “S-Train”

SMSM//Social Media.Social Media.

SXSX//Social eXecutives.Social eXecutives.

SESE//Social Employees.Social Employees.

SOSO//Social Social Organization.Organization.

SBSB//Social Business.Social Business.

““Branding” is about:Branding” is about: Everything Everything ANDAND Everyone = Everyone =

Social Media/Social Media/Social Executives/ Social Executives/ Social Employees/Social Employees/

Social Organization/ Social Organization/ Social Business =Social Business =

TableTable stakesstakes by by 20172017

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 displace you dropped them into a bucket, they would displace 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*62,000 wikis*62,000 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 followers*295,000 employees/800,000 followers 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

Teva CanadaTeva Canada

SharePoint:SharePoint: Joint problem Joint problem solving/collaboration within solving/collaboration within supply chain orgsupply chain org

Strategy-Nets:Strategy-Nets: Supply Supply chain plus sales, marketing, chain plus sales, marketing, customer servicecustomer service

Moxie:Moxie: blogs, wikis, joint doc blogs, wikis, joint doc editing, etc.editing, etc.Source: Dion Hinchcliffe & Peter Kim, Social Business By DesignSource: Dion Hinchcliffe & Peter Kim, Social Business By Design

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

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

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

hell if you don’t hell if you don’t have services.”have services.”

))

IBIBMMtoto

IIBBMM

““Lou, with all the money Lou, with all the money I’ve spent with you guys I’ve spent with you guys

on ‘the best this or on ‘the best this or that,’ in fact this that,’ in fact this ANDAND that, why in the hell that, why in the hell

hasn’thasn’t my business been my business been

transformed?”transformed?”

PlanetarPlanetary y RainmakerRainmaker--inin--ChiefChief!!

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

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

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

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

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

““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)

UUPPSS toto

UPUPSS

““UPS used to be a trucking UPS used to be a trucking

company with technology.company with technology. Now Now it’s it’s

a technoloa technologygy comcomppananyy with with

truckstrucks.”.” —Forbes—Forbes

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

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

information and capital that all the information and capital that all the packages packages [it moves][it moves] represent.” represent.” —ecompany.com —ecompany.com

“It’s all about “It’s all about solutionssolutions. We . We work with customers on creating work with customers on creating

and running better, stronger, and running better, stronger, cheaper supply chains.”cheaper supply chains.” —Bob Stoffel, UPS —Bob Stoffel, UPS

senior exec senior exec

““Rolls-RoyceRolls-Royce now now

earns earns moremore from tasks from tasks such as managing such as managing

clients’ overall clients’ overall procurement strategies procurement strategies

and maintaining and maintaining aerospace engines it aerospace engines it

sells than it does from sells than it does from making them.”making them.”

——EconomistEconomist

UTC/Otis + UTC/Carrier:UTC/Otis + UTC/Carrier: discrete discrete boxes* to boxes* to

“integrated “integrated building building systems”systems”

*elevators, air conditioners*elevators, air conditioners

IDEO’s ProgressionIDEO’s ProgressionProduct Design Product Design toto

Product Design Training Product Design Training toto

Corporate Innovation/Corporate Innovation/Culture Training/ConsultingCulture Training/Consulting

MasterCard MasterCard AdvisorsAdvisors

Huge:Huge: “Customer “Customer

SatisfactionSatisfaction with with product/Service” product/Service”

to to

“CUSTOMER “CUSTOMER SUCCESSSUCCESS””

Universal Value Added:Universal Value Added:

The The PSFPSF Solution Solution

(or bust)(or bust)

The Professional Service Firm50: Fifty Ways to Transform The Professional Service Firm50: Fifty Ways to Transform Your “Department” into a Professional Service Firm Your “Department” into a Professional Service Firm

Whose Trademarks are Passion and Innovation! Whose Trademarks are Passion and Innovation!

Sarah:Sarah: “ Mom, what “ Mom, what do you do?” do you do?”

Sarah:Sarah: “ Mom, what do you do?”

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

Anne: Anne: “ Mom, what “ Mom, what do you do?” do you do?”

Mom: “Anne, my human “Anne, my human resources team and I resources team and I are the ‘are the ‘Rock Stars of Rock Stars of the Age of Talent.’ We the Age of Talent.’ We

drive our division’s drive our division’s strategic success.”strategic success.”

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

ManaginManaging g

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

Small (Small (EntrepreneurialEntrepreneurial) BUSINESS:) BUSINESS:

Training Inc.Training Inc. , a 14- , a 14-person unit* in a 50-person person unit* in a 50-person HR department in a $200M HR department in a $200M

business unit in a $3B business unit in a $3B corporation—aiming for corporation—aiming for

Excellence & WOW!Excellence & WOW!

**PSFPSF// Professional Service Firm (See my … Professional Service Firm (See my …

Professional Service Firm 50: Fifty Ways to Transform Your Professional Service Firm 50: Fifty Ways to Transform Your “Department” Into A Professional Service Firm Whose “Department” Into A Professional Service Firm Whose

Trademarks Are Passion and Innovation.Trademarks Are Passion and Innovation.))

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””

Part 1: INTRODUCTION/EXCELLENCEPart 1: INTRODUCTION/EXCELLENCEPart 2: PEOPLE FIRST, SECOND …Part 2: PEOPLE FIRST, SECOND …Part 3: INNOVATION IMPERATIVEPart 3: INNOVATION IMPERATIVEPart 4: VALUE-ADDED STRATEGIESPart 4: VALUE-ADDED STRATEGIESPart 5: Part 5: LEADERSHIP/EXTREMELEADERSHIP/EXTREME SOLUTIONSSOLUTIONS

Conrad Conrad Hilton …Hilton …

CONRAD HILTON, at a gala celebrating CONRAD HILTON, at a gala celebrating his career, was called to the podium his career, was called to the podium

and asked,and 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

““Amateurs talk Amateurs talk about strategy. about strategy. Professionals Professionals

talk about talk about logistics.”logistics.”

——General Omar BradleyGeneral Omar Bradley

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

MBWAMBWA

MManaginganaging

BBy y

WWanderingandering

AAroundround

2255

You You == Your Your calendar/calendar/

Your calendar Your calendar NEVERNEVER lies. lies.

You = Your You = Your calendarcalendar**

*The calendar *The calendar NEVERNEVER lies.lies.

MBWA 4MBWA 4MBWA 8 MBWA 8 MBWA 12MBWA 12

““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

MBWA 8: MBWA 8: Change the World With EIGHT WordsChange the World With EIGHT Words

What do you think?*What do you think?*How can I help?**How can I help?**

*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”**Boss as CHRO/Chief Hurdle Removal Officer **Boss as CHRO/Chief Hurdle Removal Officer ********************************************************************

MBWA 12: MBWA 12: Change the WorldChange the World

With TWELVE Words With TWELVE Words

What do you think?*What do you think?*How can I help?**How can I help?**

What have you learned?***What have you learned?***

*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”**Boss as CHRO/Chief Hurdle Removal Officer **Boss as CHRO/Chief Hurdle Removal Officer ********************************************************************

***What [new thing] have you learned [in the last 24 hours]? ***What [new thing] have you learned [in the last 24 hours]? ********************* * ********************* *

Acknowledgement.Acknowledgement.

““The deepest principal The deepest principal 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”)

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

rarely make rarely make significant significant

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

ONEONE at at a Timea Time

““If there is any If there is any oneone

‘secret’ to effectiveness, it is ‘secret’ to effectiveness, it is concentration. Effective concentration. Effective

executives do first things first executives do first things first

… … and theand theyy do do one thinone thingg at a at a

timetime.”.”

——Peter DruckerPeter Drucker

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.]

*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 !!

Suggested addition to your statement of Core Suggested addition to your statement of Core

Values: Values: “We are Effective “We are Effective Listeners—we treat Listening Listeners—we treat Listening

EXCELLENCEEXCELLENCE as the as the Centerpiece of our Centerpiece of our

Commitment to Respect and Commitment to Respect and Engagement and Community Engagement and Community

and Growth.”and Growth.”

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.

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!

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.

XFX =XFX = #1#1

EXPLICITLYEXPLICITLY & & VISIBLYVISIBLY & &

RELENTLESSLY RELENTLESSLY MANAGE TO XFX MANAGE TO XFX

STANDARD!STANDARD!

XFX = XFX = #1#1**

*Cross-Functional *Cross-Functional eXcellence eXcellence

NEVER NEVER WASTE A WASTE A LUNCH!LUNCH!

% XF % XF

lunches*lunches***MeasureMeasure!! Monthly! Part of Monthly! Part of

evaluation! [The PAs Club.]evaluation! [The PAs Club.]

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 The ONEONE Secret Secret!!

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?

Is there Is there ONEONE “secret” “secret” to productivity and to productivity and

employee satisfaction?employee satisfaction?

YESYES!!

The Quality of your Full The Quality of your Full Cadre of …Cadre of …

1st-line Leaders.1st-line Leaders.

““People leave People leave managers not managers not

companies.”companies.” —Dave Wheeler—Dave Wheeler

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 than on rather than on

their 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 (!!!!!!!!))

SelSelf-f-Evaluation.Evaluation.

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

affect everaffect everyyone around one around yyouou is what is what

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

BusinessBusiness #45) #45)

““How can a high-level leader like _____ How can a high-level leader like _____ be so out of touch with the truth about be so out of touch with the truth about

himself? It’s more common than you himself? It’s more common than you

would imagine. would imagine. In fact, the higher up the ladder a leader climbs, the less

accurate his self-assessment is likely to be.

The problem is an acute lack of The problem is an acute lack of feedback [especially on people issues].”feedback [especially on people issues].”

—Daniel Goleman (et al.), —Daniel Goleman (et al.), The New LeadersThe New Leaders

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

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

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

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

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

TrainingTraining

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

when it comes to when it comes to HIRINGHIRING people? people?

Are you a Are you a “professional” “professional” when it comes when it comes to to EVALUATINGEVALUATING

people? people?

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.

14,00014,00020,00020,000

3030

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

3030/Craigslist/Craigslist

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!!

14,00014,00020,00020,000

3030

14,00014,00020,00020,000

3030

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

3030/Craigslist/Craigslist

““There’s no use trying,’ said Alice. There’s no use trying,’ said Alice. ‘One cannot believe impossible ‘One cannot believe impossible

things.’ ‘I daresay you haven’t had things.’ ‘I daresay you haven’t had much practice,’ said the Queen. much practice,’ said the Queen.

‘When I was your age, I always did it ‘When I was your age, I always did it

for half an hour a day. for half an hour a day. Why, Why, sometimes I’ve believed as sometimes I’ve believed as

manmanyy as six im as six imppossible ossible thinthinggs before breakfasts before breakfast.’”.’”

— — Lewis Carroll Lewis Carroll

““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

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

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

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

Kevin Roberts’ CredoKevin Roberts’ Credo

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

10. AVOID MODERATIONAVOID MODERATION!!

HOTHOT

LanguageLanguage

““INSANELY GREAT”INSANELY GREAT”STEVE JOBSSTEVE JOBS

“RADICALLY THRILLING” “RADICALLY THRILLING” BMW

““Insanely great”Insanely great” —Steve Jobs—Steve Jobs

““RadicallRadically y thrillinthrilling”g” —BMW—BMW

““Astonish me!”Astonish me!” ——Sergei DiaghilevSergei Diaghilev

““Build something great!”Build something great!” —Hiroshi Yamauchi/CEO Nintendo, to a game designer—Hiroshi Yamauchi/CEO Nintendo, to a game designer

“Make it immortal!”“Make it immortal!” —David Ogilvy, to an ad copywriter—David Ogilvy, to an ad copywriter

Raise your sights!Raise your sights!Blaze new trails!Blaze new trails!Compete with the immortals!Compete with the immortals!——David Ogilvy, on Ogilvy & Mather’s corporate cultureDavid Ogilvy, on Ogilvy & Mather’s corporate culture

Wanted by Ogilvy & Mather International: Wanted by Ogilvy & Mather International: Trumpeter SwansTrumpeter Swans —David Ogilvy—David Ogilvy

““Every project starts with the same question:Every project starts with the same question: ‘How can we do what has never been done before?’” ‘How can we do what has never been done before?’”——Stuart Hornery, Lend LeaseStuart Hornery, Lend Lease

““Let us create such a building that future generations will take us for …Let us create such a building that future generations will take us for … lunatics.”lunatics.” —church hierarchs at —church hierarchs at SevilleSeville

““We are crazy. We are crazy. We should do something when people say it is ‘crazy.’ When people say something is We should do something when people say it is ‘crazy.’ When people say something is ‘good,’ it means someone else is already doing it.”‘good,’ it means someone else is already doing it.” —Hajime Mitarai, former CEO, Canon—Hajime Mitarai, former CEO, Canon

““You can’t behave in a calm, rational manner. You’ve got to be out on the … You can’t behave in a calm, rational manner. You’ve got to be out on the … lunatic fringe.”lunatic fringe.” —Jack —Jack WelchWelch

Kevin (“Lovemarks”) Roberts’ CredoKevin (“Lovemarks”) Roberts’ Credo

1.1. Ready. Fire! Aim.Ready. Fire! Aim.2.2. If it ain’t broke ... Break it! If it ain’t broke ... Break it!3.3. Hire crazies. Hire crazies.4.4. Ask dumb questions. Ask dumb questions.5.5. Pursue failure. Pursue failure.6.6. Lead, follow ... or get out of the way! Lead, follow ... or get out of the way!7.7. Spread confusion. Spread confusion.8.8. Ditch your office. Ditch your office.9.9. Read odd stuff. Read odd stuff.

10.10. Avoid moderation!Avoid moderation!Note: Note: TWOTWO Americans; Americans; EIGHTEIGHT non-Americans (Scotsman, 2 Japanese, Aussie, Russian, German, Spaniard, Kiwi) non-Americans (Scotsman, 2 Japanese, Aussie, Russian, German, Spaniard, Kiwi)

!!

Innovation IndexInnovation Index:: How many of your How many of your “Top Five Projects” score eight or “Top Five Projects” score eight or higher (out of 10) on a higher (out of 10) on a “Weird” /“Profound”/ “WOW”/“Game-“Weird” /“Profound”/ “WOW”/“Game-changer” Scale? changer” Scale?

WOW-ification IndexWOW-ification Index:: Move every Move every project (definition) that scores sixproject (definition) that scores six or less two notches up on the or less two notches up on the ““WOW-ification Scale” within the next WOW-ification Scale” within the next two weeks. If your principal two weeks. If your principal currentcurrent project scores six or less, bring it up project scores six or less, bring it up one (or two!) notches by noon on one (or two!) notches by noon on Monday.* Monday.* (*This tweet was written on a Sunday.)(*This tweet was written on a Sunday.)

WINNERS’ WINNERS’

RulesRules!!

Michael Raynor and Mumtaz Ahmed’: Michael Raynor and Mumtaz Ahmed’: THE THREE RULES: THE THREE RULES: How Exceptional Companies Think*How Exceptional Companies Think*::

1. 1. Better before cheaper.Better before cheaper.2. 2. Revenue before cost.Revenue before cost.3. 3. There are no other rules.There are no other rules.(*From a database of over 25,000 companies from hundreds of industries covering 45 years, they uncovered (*From a database of over 25,000 companies from hundreds of industries covering 45 years, they uncovered 344 companies that qualified as statistically “exceptional.”)344 companies that qualified as statistically “exceptional.”)

Jeff Colvin, Jeff Colvin, FortuneFortune: “The Economy Is Scary … But Smart : “The Economy Is Scary … But Smart Companies Can Dominate”:Companies Can Dominate”:

They manage for value—not for EPS.They manage for value—not for EPS.They keep developing human capital.They keep developing human capital.They get radically customer-centric.They get radically customer-centric.