conrad hilton …

Conrad Hilton …Conrad Hilton …

LongLong

ExcellenceExcellence

NOWNOW Tom Peters/14 March 2012Tom Peters/14 March 2012

New Zealand Food & Grocery CouncilNew Zealand Food & Grocery Council(slides @ tompeters.com) (MOAP @ excellencenow.com)(slides @ tompeters.com) (MOAP @ excellencenow.com)

ConradConrad HiltonHilton, at a gala celebrating his , at a gala celebrating his career, was called to the podium and career, was called to the podium and

asked,asked, “What were the most important

lessons you learned in your long and

distinguished career?” His answer …His answer …

““remember remember to tuck the to tuck the

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

““Execution Execution isis strategy.”strategy.”

—Fred Malek—Fred Malek

““Costco figured out the Costco figured out the

bigbig,, simplesimple things things

and and executedexecuted with with

total total fanaticismfanaticism.”.” —Charles Munger, Berkshire Hathaway—Charles Munger, Berkshire Hathaway

Sports:Sports: You beat You beat yourself!yourself!

““ExecutionExecution is is thethe jobjob of the of the

businessbusiness leaderleader.”.”—Larry Bossidy—Larry Bossidy & Ram

Charan/ Execution: The Discipline of Getting Things Done

“Execution isExecution is aa

systematic systematic processprocess of rigorously of rigorously

discussing hows and whats, discussing hows and whats, tenaciously following through, and tenaciously following through, and

ensuring accountability.”ensuring accountability.” —Larry Bossidy & Ram Charan/ —Larry Bossidy & Ram Charan/ Execution: Execution:

The The DisciDiscipplineline of Getting Things Done of Getting Things Done

Does/will the next Does/will the next presentation you give/ presentation you give/

review allot review allot moremore timetime to the process/ to the process/

details/politics of details/politics of “implementing” than“implementing” than

to the “analysis of the to the “analysis of the problem/opportunity”?problem/opportunity”?

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

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

obstacles overcome, the role obstacles overcome, the role

her her ppeople eople pplayedlayed —or does —or does she keep wandering she keep wandering back to strategy or back to strategy or

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

Observed closely: The use ofObserved closely: The use of

“I”“I” oror “We”“We” during aduring a

job interview, when asked aboutjob interview, when asked about a successful project.a successful project.

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

Dale Carnegie …Dale Carnegie …

Could It Be???Could It Be???

How to Win How to Win Friends and Friends and

Influence Influence PeoplePeople —Dale Carnegie—Dale Carnegie

““There is only one way There is only one way under high heaven to get under high heaven to get

anybody to do anything. Yes, anybody to do anything. Yes, justjust

one way. And that is by one way. And that is by making the other person making the other person want to do it.”want to do it.” —Dale Carnegie, —Dale Carnegie,

How to Win Friends and Influence PeopleHow to Win Friends and Influence People (“The BIG Secret of Dealing With People”)(“The BIG Secret of Dealing With People”)

““The deepest The deepest principal in human principal in human

nature is the nature is the craving to be craving to be appreciated.”appreciated.”

—William James—William James

““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 “Craving,” not “wish” or “desire” or “longing”/Dale Carnegie, “longing”/Dale Carnegie, How to WinHow to Win

Friends and Influence People Friends and Influence People (“The BIG(“The BIG Secret of Dealing With People”) Secret of Dealing With People”)

““Society is a vehicle for Society is a vehicle for earthly heroism. Man earthly heroism. Man

transcends death bt finding transcends death bt finding meaning for his life. It is the meaning for his life. It is the

burning desire for the burning desire for the creature to count. What man creature to count. What man really fears is not extinction, really fears is not extinction,

but extinction with but extinction with insiinsiggnificancenificance.”.” —Ernest Becker, —Ernest Becker, Denial of DeathDenial of Death

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

rarely make rarely make significant significant

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

““The deepest urgeThe deepest urge in human nature in human nature

is the desire to be is the desire to be important.”important.” —John Dewey—John Dewey

(In Dale Carnegie, (In Dale 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”)

““PeoPeopple want to be le want to be ppartart of somethinof somethingg lar largger than er than

themselvesthemselves.. They want They want to be part of something to be part of something

they’re really they’re really pproudroud of, that of, that they’ll they’ll fifigght ht forfor,, sacrifice sacrifice

forfor , , trusttrust.”.” —Howard Schultz, Starbucks

““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

CacophonyCacophonyPuzzlesPuzzlesButtonsButtons

Self-controlSelf-controlSource: Herbert Lefcourt, Source: Herbert Lefcourt, Locus of Control: Current Trends in Theory and ResearchLocus of Control: Current Trends in Theory and Research

Trade Trade TalesTales

iPad/$4 billioniPad/$4 billion of $300 billion negative of $300 billion negative USA trade balance with USA trade balance with

China (2011)China (2011)

Cost/Profit Components:Cost/Profit Components:

Total labor 7%Total labor 7%

(Chinese labor: 2%)(Chinese labor: 2%)Materials 31%Materials 31%

Distribution: 17%Distribution: 17%Profit: 47%Profit: 47%

Landed iPad cost: Landed iPad cost: $275 = $275 = ImImpputeduted USA negative trade balance with ChinaUSA negative trade balance with China

((ActualActual China cost: $10) China cost: $10)

Source: Personal Computing Industry Centre (Source: Personal Computing Industry Centre (EconomistEconomist))

iPad/iPad/$4 billion$4 billion of $300 billion negative of $300 billion negative USA trade balance with China (2011)USA trade balance with China (2011)

Or $150 million?Or $150 million?**

*$4B/$150M = *$4B/$150M = 27X27X

Cost/Profit ComponentsCost/Profit Components**::

Total labor 7%Total labor 7%

(Chinese labor: 2%)(Chinese labor: 2%)Materials 31%Materials 31%

Distribution: 17%Distribution: 17%Profit: 47%Profit: 47%

Landed iPad cost: Landed iPad cost: $275 = $275 = ImImpputeduted USA negative trade balance with ChinaUSA negative trade balance with China

((ActualActual China cost: $10) China cost: $10)

*Biggest non-USA component: *Biggest non-USA component: South KoreaSouth KoreaSource: Personal Computing Industry Centre (Source: Personal Computing Industry Centre (EconomistEconomist))

““The first step is to measure whatThe first step is to measure what can easily be measured. This is okay can easily be measured. This is okay as far as it goes. The second step isas far as it goes. The second step is to disregard that which cannot be to disregard that which cannot be measured, or give it an arbitrary measured, or give it an arbitrary

quantitative value. This is artificial quantitative value. This is artificial and misleading. The third step isand misleading. The third step is to presume that what cannot be to presume that what cannot be measured is not very important. measured is not very important.

This is blindness. The fourth step isThis is blindness. The fourth step is to say that what cannot be measured to say that what cannot be measured does not really exist. This is suicide.”does not really exist. This is suicide.”

—Daniel Yankelovich (from —Daniel Yankelovich (from Enough!Enough!, by Jack Bogle), by Jack Bogle)

ServiceService

Organizations Organizations existexist to to serveserve. .

Period.Period.

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

Why in Why in the the World World did youdid you go to go to SiberiaSiberia??

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

concerted humanconcerted human potential in thepotential in the wholehearted pursuit of wholehearted pursuit of EXCELLENCE inEXCELLENCE in serviceservice of others of others.****Employees, Customers, Suppliers, Communities, Owners, Temporary partners**Employees, Customers, Suppliers, Communities, Owners, Temporary partners

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

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

““Breakthrough” 82*Breakthrough” 82*

People! People! CustomersCustomers

! ! Action! Action! Values! Values!

**In Search of ExcellenceIn Search of Excellence

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

““The first step is to measure whatThe first step is to measure what can easily be measured. This is okay can easily be measured. This is okay as far as it goes. The second step isas far as it goes. The second step is to disregard that which cannot be to disregard that which cannot be measured, or give it an arbitrary measured, or give it an arbitrary

quantitative value. This is artificial quantitative value. This is artificial and misleading. The third step isand misleading. The third step is to presume that what cannot be to presume that what cannot be measured is not very important. measured is not very important.

This is blindness. The fourth step isThis is blindness. The fourth step is to say that what cannot be measured to say that what cannot be measured does not really exist. This is suicide.”does not really exist. This is suicide.”

—Daniel Yankelovich (from —Daniel Yankelovich (from Enough!Enough!, by Jack Bogle), by Jack Bogle)

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

EXCELLENCE EXCELLENCE isis … … THE NEXT FIVE THE NEXT FIVE

MINUTES.MINUTES.

EXCELLENCE is not an "aspiration." EXCELLENCE is not an "aspiration." EXCELLENCE is … THE NEXT FIVE MINUTES.EXCELLENCE is … THE NEXT FIVE MINUTES.

EXCELLENCE is your next conversation.EXCELLENCE is your next conversation.Or not.Or not.EXCELLENCE is your next meeting.EXCELLENCE is your next meeting.Or not.Or not.EXCELLENCE is shutting up and listening—really listening.EXCELLENCE is shutting up and listening—really listening.Or not.Or not.EXCELLENCE is your next customer contact.EXCELLENCE is your next customer contact.Or not.Or not.EXCELLENCE is saying “Thank you” for something “small.”EXCELLENCE is saying “Thank you” for something “small.”Or not.Or not.EXCELLENCE is the next time you shoulder responsibility and apologize.EXCELLENCE is the next time you shoulder responsibility and apologize.Or not.Or not.EXCELLENCE is waaay over-reacting to a screw-up.EXCELLENCE is waaay over-reacting to a screw-up.Or not.Or not.EXCELLENCE is the flowers you brought to work today.EXCELLENCE is the flowers you brought to work today.Or not.Or not.EXCELLENCE is lending a hand to an “outsider” who’s fallen behind EXCELLENCE is lending a hand to an “outsider” who’s fallen behind schedule.schedule.Or not.Or not.EXCELLENCE is bothering to learn the way folks in finance [or IS or HR] EXCELLENCE is bothering to learn the way folks in finance [or IS or HR] think.think.Or not.Or not.EXCELLENCE is waaay “over”-preparing for a 3-minute presentation.EXCELLENCE is waaay “over”-preparing for a 3-minute presentation.Or not.Or not.EXCELLENCE is turning “insignificant” tasks into models of … EXCELLENCE. EXCELLENCE is turning “insignificant” tasks into models of … EXCELLENCE. Or not.Or not.

EXCELLENCEXCELLENCEE is … is … THE THE NEXTNEXT FIVE FIVE MINUTESMINUTES..

Or not.Or not.

ImmoderationImmoderation

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!!

Four [really] Four [really] First things First things Before First Before First

Things …Things …

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?

““In great armies, the In great armies, the job of generals is to job of generals is to

back up their back up their sergeants.”sergeants.”

—COL Tom Wilhelm, from Robert Kaplan, —COL Tom Wilhelm, from Robert Kaplan, “The Man Who Would Be Khan,” “The Man Who Would Be Khan,” The AtlanticThe Atlantic

The The sergeants sergeants

run the run the army. army.

Period.Period.

#1#1 cause of cause of

employee employee Dis-satisfaction?Dis-satisfaction?

Employee retention & satisfaction & productivity:Employee retention & satisfaction & productivity: OverwhelminOverwhelminggllyy

based on the based on the first-line first-line manamanagger!er!

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

““People People leave leave

managers not managers not companies.”companies.”

——Dave WheelerDave Wheeler

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

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

XFX = XFX = #1#1**

*Cross-Functional *Cross-Functional eXcellence eXcellence

Lunch!Lunch!

Never Never waste a waste a lunch!lunch!

““Allied commands depend on Allied commands depend on mutual confidence mutual confidence

and this confidence is and this confidence is gained, above all gained, above all

through thethrough the

develodeveloppmentment ofof friendshifriendshippss.”.”

——General D.D. Eisenhower, General D.D. Eisenhower, Armchair GeneralArmchair General* *

*“Perhaps his most outstanding ability [at West Point]*“Perhaps his most outstanding ability [at West Point]

was the ease with which was the ease with which he made friends and earned he made friends and earned the trust of fellow cadets who came from the trust of fellow cadets who came from

widelwidelyy varied back varied backggroundsrounds; it was a quality that would pay ; it was a quality that would pay great dividends during his future coalition command.”great dividends during his future coalition command.”

““Personal Personal relationships are the relationships are the fertile soil from which fertile soil from which all advancement, all advancement, allall

success, success, allall achievement in realachievement in real

life grow.”life grow.” —Ben Stein—Ben Stein

% XF % XF

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

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

XFX:XFX: SocialSocial accelerators …accelerators …

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 3. Ask peers in other functions for references so you can become conversant in their world. (It’s one helluva sign become conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-ism.) of ... GIVE-A-DAMN-ism.) 4. Religiously invite counterparts in other functions to your 4. Religiously invite counterparts in other functions to your team meetings. Ask them to present “cool stuff” from “their team meetings. Ask them to present “cool stuff” from “their world” to your group. (Useful. Mark of respect.)world” to your group. (Useful. Mark of respect.)5. 5. PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: TO ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ONCE A DAY … make a short call or visit or send an email of ONCE A DAY … make a short call or visit or send an email of “Thanks” for some sort of XFX gesture by your folks and “Thanks” for some sort of XFX gesture by your folks and some other function’s folks.)some other function’s folks.) 6. Present counterparts in other functions awards for 6. Present counterparts in other functions awards for service to your group. Tiny awards at least weekly; and an service to your group. Tiny awards at least weekly; and an “Annual“Annual All-Star Supporters [from other groups] Banquet” All-Star Supporters [from other groups] Banquet” modeled after superstar salesperson banquets. modeled after superstar salesperson banquets.

Present counterparts in other Present counterparts in other functions recognition/awards for functions recognition/awards for

service to your group:service to your group: Tiny Tiny awards at least weekly. An awards at least weekly. An

“Annual All-Star “Annual All-Star Supporters Supporters [from other groups][from other groups] Banquet” modeled after Banquet” modeled after

[and equivalent to[and equivalent to!!]] superstar superstar salesperson banquets.salesperson banquets.

XFX/ Typical XFX/ Typical SocialSocial Accelerators Accelerators

7. Routinely discuss—A SEPARATE AGENDA ITEM—good and 7. Routinely discuss—A SEPARATE AGENDA ITEM—good and problematic acts of cross-functional co-operation at every problematic acts of cross-functional co-operation at every Team Meeting. Team Meeting. 8. When someone in another function asks for assistance, 8. When someone in another function asks for assistance, respond with … more … alacrity than you would if it were the respond with … more … alacrity than you would if it were the person in the cubicle next to yours—or even more than you person in the cubicle next to yours—or even more than you would for a key external customer. (Remember, XFX is the would for a key external customer. (Remember, XFX is the key to Customer Retention which is in turn the key to “all key to Customer Retention which is in turn the key to “all good things.”)good things.”)9. Do not bad mouth ... “the damned accountants,” “the 9. Do not bad mouth ... “the damned accountants,” “the bloody HR guy.” Ever. (Bosses: Severe penalties for this—bloody HR guy.” Ever. (Bosses: Severe penalties for this—including public tongue-lashings.) including public tongue-lashings.) 10. 10. Get physical! “Co-location” may well be the most Get physical! “Co-location” may well be the most powerful “culture change lever.”powerful “culture change lever.” Physical X-functional Physical X-functional proximity is almost a … guarantee … of remarkably improved proximity is almost a … guarantee … of remarkably improved co-operation—to aid this one needs flexible workspaces that co-operation—to aid this one needs flexible workspaces that can be mobilized for a team in a flash.can be mobilized for a team in a flash.11. 11. Establish “adhocracy” as S.O.P.Establish “adhocracy” as S.O.P. To improve the new “X- To improve the new “X-functional Culture” (and business results), little XF teams functional Culture” (and business results), little XF teams should be formed on the spot to deal with an urgent issue—should be formed on the spot to deal with an urgent issue—they may live for but ten days, but it helps the XF habit, they may live for but ten days, but it helps the XF habit, making it normal to be “working the XF way.”making it normal to be “working the XF way.”

The subtext of many, The subtext of many, if not all, of these ideas if not all, of these ideas is moving from implicit is moving from implicit to to exexpplicitlicit focus on XFX focus on XFX

—it should noisily —it should noisily intrude into [literally] intrude into [literally]

every discussion!every discussion!

XFX/ Typical XFX/ Typical SocialSocial Accelerators Accelerators

12. Early project “management” experience. Within days, 12. Early project “management” experience. Within days, literally, of coming aboard folks should be “running” some bit literally, of coming aboard folks should be “running” some bit of a bit of a bit a project, working with folks from other of a bit of a bit a project, working with folks from other functions—hence, “all this” becomes as natural as breathing.functions—hence, “all this” becomes as natural as breathing.13. Work proactively to give as large as possible numbers of 13. Work proactively to give as large as possible numbers of people temporary assignments in other functions—especially people temporary assignments in other functions—especially Finance.Finance.14. “Get ’em out with the customer.” Rarely does the 14. “Get ’em out with the customer.” Rarely does the accountant or bench scientist call on the customer. Reverse accountant or bench scientist call on the customer. Reverse that. Give everyone more or less regular “customer-facing that. Give everyone more or less regular “customer-facing experiences.” She or he learns quickly that the customer is not experiences.” She or he learns quickly that the customer is not interested in our in-house turf battles! interested in our in-house turf battles! 15. Consider creating a special role, or even position. Specialty 15. Consider creating a special role, or even position. Specialty chemical company Buckman Labs established chemical company Buckman Labs established “knowledge “knowledge transfer facilitatorstransfer facilitators,,”” effectively former “middle managers,” effectively former “middle managers,” with 100% of discretionary pay based on success at spurring with 100% of discretionary pay based on success at spurring integration across previously impermeable barriers.integration across previously impermeable barriers.

XFX/: Typical XFX/: Typical SocialSocial Accelerators Accelerators

16. Formal evaluations. Everyone, starting with the 16. Formal evaluations. Everyone, starting with the receptionist, should have a significant XF rating component in receptionist, should have a significant XF rating component in their evaluation. (The “XFX Performance” should be among their evaluation. (The “XFX Performance” should be among the Top 3 items in all managers’ evaluations.)the Top 3 items in all managers’ evaluations.)17. 17. Every functional unit should have strict and extensive Every functional unit should have strict and extensive measures of “customer satisfaction” based on evaluations measures of “customer satisfaction” based on evaluations from other functions of its usefulness and effectiveness and from other functions of its usefulness and effectiveness and value-added to the enterprise as a whole. value-added to the enterprise as a whole. 18. Demand XF experience for, especially, senior jobs. For 18. Demand XF experience for, especially, senior jobs. For example, the U.S. military requires all would-be generals and example, the U.S. military requires all would-be generals and admirals to have served a full tour in a job whose only goals admirals to have served a full tour in a job whose only goals were cross-functional achievements.were cross-functional achievements.19. “Deep dip.” Dive three levels down in the organization to 19. “Deep dip.” Dive three levels down in the organization to fill a senior role with some one who has been noticeably pro-fill a senior role with some one who has been noticeably pro-active on adding value via excellent cross-functional active on adding value via excellent cross-functional integration. integration. 20. XFX is … PERSONAL … as well as about organizational 20. XFX is … PERSONAL … as well as about organizational effectiveness. PXFX [Personal XFX] is arguably the #1 effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to personal success—in terms of organizational Accelerant to personal success—in terms of organizational career, freelancer/Brand You, or as entrepreneur. career, freelancer/Brand You, or as entrepreneur.

21. 21. Excellence!Excellence! There is a “State of XF Excellence” per There is a “State of XF Excellence” per se. Talk it up constantly. Pursue it. Aspire to nothing less.se. Talk it up constantly. Pursue it. Aspire to nothing less.

Formal evaluations. Formal evaluations. EverEveryyoneone, , starting with the starting with the

receptionist, should have a receptionist, should have a sisiggnificantnificant XFX rating XFX rating

component in their component in their evaluation. (The “XFX evaluation. (The “XFX

Performance” should be Performance” should be among the Top 3 items in among the Top 3 items in

allall managers’ evaluations.) managers’ evaluations.)

Promote into Promote into functional leadership functional leadership

positions based positions based primarily on … primarily on …

temperamenttemperament..

ALL HAIL … ALL HAIL …

THOSE THOSE WHO WHO

HELPHELP!!

THEY ALL GOTTA THEY ALL GOTTA SEESEE THE THE ONE WHO SACRIFICEDONE WHO SACRIFICED

TO HELP SOMEONETO HELP SOMEONE GET GET IMMEDIATEIMMEDIATE

FEEDBACK-KUDOS. FEEDBACK-KUDOS. (PERHAPS (PERHAPS MORE MORE

RECOGNITION THAN THE RECOGNITION THAN THE “PRINCIPAL” “DOER.”)“PRINCIPAL” “DOER.”)

““You’re You’re spending too spending too

much timemuch time with your with your [bill-paying][bill-paying] customers!”customers!”

C(I)C(I)>>C(C(E)E)

XFX.XFX.#1.#1.

NOW.NOW.

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

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

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

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

FOR NO LESS THAN …FOR NO LESS THAN …

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

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

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

18 18 ……

18 … 18 … secondsseconds!!

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

of of RespectRespect..

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

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

[cont.][cont.]

““It was much later that I realized It was much later that I realized Dad’s secret. He gained respect by Dad’s secret. He gained respect by giving it. He talked and listened to giving it. He talked and listened to

the fourth-grade kids in Spring Valley the fourth-grade kids in Spring Valley who shined shoes the same way he who shined shoes the same way he talked and listened to a bishop or a talked and listened to a bishop or a

college president.college president. He was He was seriously interested in seriously interested in

who you were and what who you were and what you had to say.”you had to say.”

—Sara Lawrence-Lightfoot, Respect

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

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

““It’s amazing how this It’s amazing how this seemingly small thing— seemingly small thing—

simsimppllyy pa payyiningg fierce fierce attention to another, reallattention to another, reallyy

askinaskingg, reall, reallyy listenin listening,g, even durineven duringg a brief a brief

conversationconversation—can evoke —can evoke such a wholehearted such a wholehearted

response.”response.” —Susan Scott, —Susan Scott, Fierce Conversations: Fierce Conversations:

Achieving Success at Work and in Life, One Conversation at a TimeAchieving Success at Work and in Life, One Conversation at a Time

““Fierce conversations Fierce conversations often do take time. often do take time.

The The pproblem is, roblem is, anythinanythingg else takes else takes

lonlonggerer.”.” —Susan Scott, —Susan Scott, Fierce Conversations: Fierce Conversations:

Achieving Success at Work and in Life, One Conversation at a TimeAchieving Success at Work and in Life, One Conversation at a Time

Listen = “Profession” =

Study = practice = evaluation =

Enterprise value

Bitch all you Bitch all you want, but want, but meetinmeetinggss

are what you are what you [boss] [boss] dodo!!

Meetings = #1 Meetings = #1 leadership leadership

opportunityopportunity

Meeting:Meeting: EverEveryy meetin meetingg that that does not stir the imadoes not stir the imaggination ination

and curiosity of attendees and and curiosity of attendees and increase bondinincrease bondingg and co- and co-

oopperation and eneration and enggaaggement ement and sense of worth and and sense of worth and

motivate ramotivate rappid action and id action and enhance enthusiasm is a enhance enthusiasm is a

ppermanentlermanentlyy lost o lost opppportunitortunity.y.

Meeting = TheaterMeeting = Theater

ONE MORE ONE MORE [really] First [really] First thing Before thing Before

First Things …First Things …

… … this will this will be the be the

woman’s woman’s century …century …

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

I am certain, ladies and I am certain, ladies and ggentlemen, that this will beentlemen, that this will be the women’s centurthe women’s century.y. In the In the

Portuguese language, words Portuguese language, words such as life, soul, and hope aresuch as life, soul, and hope are

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

——President Dilma Rousseff President Dilma Rousseff of Brazil, 1st woman to keynote theof Brazil, 1st woman to keynote the

United Nation General AssemblyUnited Nation General Assembly

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

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

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

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

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

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

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

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

trillion in the same period.trillion in the same period. In aggregate, women represent a growth market bigger than China and In aggregate, women represent a growth market bigger than China and India combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate India combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer. And yet many companies do just that—even ones that are confident that they have a winning the female consumer. And yet many companies do just that—even ones that are confident that they have a winning

strategy when it comes to women. Consider Dell’s …”strategy when it comes to women. Consider Dell’s …”

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

““Goldman Sachs in Tokyo has Goldman Sachs in Tokyo has developed an index of 115 developed an index of 115

companies poised to benefit companies poised to benefit from women’s increased from women’s increased

purchasing power; purchasing power; over the over the past decade the value of past decade the value of

shares in Goldman’s basket shares in Goldman’s basket has risen by 96%, against the has risen by 96%, against the

Tokyo stockmarket’s Tokyo stockmarket’s rise of 13%rise of 13%.”.” —Economist—Economist

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

Economic Growth Is Economic Growth Is Driven by Driven by

WomenWomen.”.”

Source: Headline, Economist

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

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

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

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

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

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

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

A Few Women’s Stats USAA Few Women’s Stats USA

**1991-2001: Women with income >$100K**1991-2001: Women with income >$100K grew 3Xgrew 3X**2000-2008: Women’s wages grew; men’s**2000-2008: Women’s wages grew; men’s steady-downsteady-down**Women hold >50% non-farm jobs**Women hold >50% non-farm jobs**51% “management, professional and**51% “management, professional and related positions in U.S.” held by womenrelated positions in U.S.” held by women**1997-2008: 26% share of firms owned by**1997-2008: 26% share of firms owned by women goes up to to 40% women goes up to to 40% **80% household spending controlled by**80% household spending controlled by women per A.T. Kearneywomen per A.T. Kearney**Women’s purchasing power USA >$5T **Women’s purchasing power USA >$5T (>Japan GDP)(>Japan GDP)**Women hold 51% of private wealth—share**Women hold 51% of private wealth—share growing fast growing fast Source: Maddy DychtwaldSource: Maddy Dychtwald, Influence: How Women’s, Influence: How Women’sSoaring Economic Power Will Transform Our World for the BetterSoaring Economic Power Will Transform Our World for the Better

““Men Are Men Are Finished”Finished”

Source: Slate conference 0920/NYUSource: Slate conference 0920/NYU

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

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

““Are men Are men obsolete?obsolete?

””

—Headline, —Headline, USN&WRUSN&WR

Women’s Share of Degrees 2008Women’s Share of Degrees 2008

Bachelor’s 57%Bachelor’s 57%Advanced 59%Advanced 59%

Source: Martha Barletta/TrendSight Group/0517.11Source: Martha Barletta/TrendSight Group/0517.11

Women < 30 in big Women < 30 in big USA cities (as of USA cities (as of 2005)2005)**: : Earnings Earnings

> Male > Male counterparts. counterparts.

(117%)(117%)Source: Paco Underhill, Source: Paco Underhill, What Women WantWhat Women Want

M job losses as share M job losses as share of all job losses, of all job losses, Great Recession:Great Recession:

82%82%

Men employed, full or part-Men employed, full or part-time … 63% time … 63% (lowest since record-(lowest since record-

keeping began/1948)keeping began/1948)

Median inflation adjusted Median inflation adjusted wages, men 30-50 with jobs, wages, men 30-50 with jobs,

1969-20091969-2009: $33K, : $33K, -27%-27%

Source: Source: “The Slow Disappearance of the American “The Slow Disappearance of the American Working Man,”Working Man,” Bloomberg BusinessweekBloomberg Businessweek/08.11/08.11

““We Did We Did It!”It!” ––Economist Economist cover, Jan 02.2010,cover, Jan 02.2010,

as … as … women surpass women surpass 5050%% … in … in

U.S. workforce/U.S. workforce/ “Women’s“Women’s economic empowerment is economic empowerment is arguably the biggest socialarguably the biggest social

change of our times.”change of our times.”

““Headline 2020:Headline 2020: Women Women

Hold Hold 8080 Percent Percent

of Management and of Management and Professional Jobs”Professional Jobs”

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

1970-19981970-1998

Men’s median income: +0.6%Men’s median income: +0.6%

Women’s median income: Women’s median income: + 63%+ 63%

Source: Martha Barletta, Marketing to Women

Women as …Women as …

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

plans: plans: 60%60%


““Women areWomen are thethe majority majority

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

Women as “Chief Purchasing Officer”Women as “Chief Purchasing Officer”

Residential real estate … 90%Residential real estate … 90%Consumer packaged goods … 85%Consumer packaged goods … 85%New cars … 60%-65%New cars … 60%-65%Healthcare … 60%Healthcare … 60%Investment decisions … 58%Investment decisions … 58%Computers … 50%Computers … 50%


Ted Turner’s Ted Turner’s “50-cent rule”“50-cent rule”

““Female users are the unsunFemale users are the unsungg heroines heroines behind the most enbehind the most enggaagginingg, fastest , fastest ggrowinrowingg, and valuable consumer internet , and valuable consumer internet and e-commerce companiesand e-commerce companies.. Especially when it comes to social Especially when it comes to social

and shopping, women rule the Internet. In e-commerce, female purchasing power is clear. Sites like Zappos, and shopping, women rule the Internet. In e-commerce, female purchasing power is clear. Sites like Zappos, Groupon, Gilt Groupe, Etsy, and Diapers are all driven by a majority of female customers. According to Gilt Groupe, Groupon, Gilt Groupe, Etsy, and Diapers are all driven by a majority of female customers. According to Gilt Groupe, women are 70% of the customers and 74% of revenue; and women are 70% of the customers and 74% of revenue; and 77% of Groupon’s customers are female77% of Groupon’s customers are female. But . But what’s different now is an exciting new crop of e-commerce companies. One King’s Lane, Plum District, Stella & Dot, what’s different now is an exciting new crop of e-commerce companies. One King’s Lane, Plum District, Stella & Dot, Rent the Runway, Modcloth, BirchBox, Shoedazzle, Zazzle and Shopkick are just a few examples of companies Rent the Runway, Modcloth, BirchBox, Shoedazzle, Zazzle and Shopkick are just a few examples of companies leveraging ‘girl power.’ The majority of these companies were also founded by women, which is also an exciting leveraging ‘girl power.’ The majority of these companies were also founded by women, which is also an exciting

trend. trend. And take a look at four of the new And take a look at four of the new ‘horsemen’ of the consumer web‘horsemen’ of the consumer web——Facebook, ZFacebook, Zygygna, Groupon and Twitter. na, Groupon and Twitter. The ma The majjoritorityy of all four properties’ users of all four properties’ users are female. Make that ‘horsewomenare female. Make that ‘horsewomen.’ .’ So, if So, if

you’re at a consumer web company, how can this insight help you? Would you like to lower your cost of customer you’re at a consumer web company, how can this insight help you? Would you like to lower your cost of customer acquisition? Or grow revenue faster? Maybe you would benefit from having a larger base of female customers. If acquisition? Or grow revenue faster? Maybe you would benefit from having a larger base of female customers. If so, what would you change to make your product/service more attractive to female customers? Do you do enough so, what would you change to make your product/service more attractive to female customers? Do you do enough product and user interface testing with female users? Have you figured out how to truly unleash the shopping and product and user interface testing with female users? Have you figured out how to truly unleash the shopping and social power of women? You could also take a look at your team. Do you have women in key positions?”social power of women? You could also take a look at your team. Do you have women in key positions?”

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

44-6544-65:: “New “New Customer Customer Majority”Majority”

Source: Source: Ageless MarketingAgeless Marketing, David Wolfe & Robert Snyder, David Wolfe & Robert Snyder

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

Sweet Spots for Sweet Spots for Marketers”Marketers”

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

+22.1+22.1MM

+0.8M+0.8M

Growth of Adult PopulationGrowth of Adult Population USA 2006-2016USA 2006-2016

Total … +22.9MTotal … +22.9M

50+ … 50+ … +22.1M+22.1M18-49 … +0.8M18-49 … +0.8M


““The The most most significant variablesignificant variable

inin everyevery sales situation is sales situation is

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

the salesperson the salesperson communicates to the communicates to the

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

The Perfect Answer

Jill and Jack buy slacks in black…

Sales/Aftersales ProcessSales/Aftersales Process

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

Source: Marti BarlettaSource: Marti Barletta

Cases! Cases! Cases!Cases! Cases! Cases!

McDonald’sMcDonald’s (“mom-centered” to F as(“mom-centered” to F as

“majority consumer”; not via kids) “majority consumer”; not via kids)

Home DepotHome Depot (“Do it [everything!] Herself”)(“Do it [everything!] Herself”)

P&GP&G (more than F as “house cleaner”) (more than F as “house cleaner”)

DeBeersDeBeers (“right-hand rings”/$4B)(“right-hand rings”/$4B)

AXA FinancialAXA FinancialKodakKodak (women = “emotional centers of the household”)(women = “emotional centers of the household”)

NikeNike (> jock endorsements; new def sports; majority consumer)(> jock endorsements; new def sports; majority consumer)

AvonAvonBratzBratz (young girls want “friends,” not a blond stereotype)(young girls want “friends,” not a blond stereotype)

Source: Source: Fara Warner/Fara Warner/The Power of the The Power of the PursePurse

“We simply had

stopped being

relevant to women.”

—Kay Napier, SVP Marketing, McDonald’s (Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s

Discovers the Woman Inside the Mom”)

““McDonald’s shifted its strategy McDonald’s shifted its strategy toward women from one of toward women from one of

‘minority’ consumers who served ‘minority’ consumers who served as a conduit to the important as a conduit to the important

children’s market to one in which children’s market to one in which women are the company’s women are the company’s

majority consumers and the main majority consumers and the main driver behind menu and driver behind menu and

promotion innovationpromotion innovation.”.” —Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom”

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

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

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

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

on. on. Don’t Don’t gget me wronet me wrongg, but , but women are far more women are far more

discriminatindiscriminatingg than men than men,’,’ says says

CEO Robert Tillman.”CEO Robert Tillman.” —Forbes.com—Forbes.com

Selling to men:Selling to men: The The TRANSACTIONTRANSACTION Model Model

Selling to Women:Selling to Women: The The RELATIONALRELATIONAL Model Model

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

““Women don’t ‘buy’ Women don’t ‘buy’

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

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

Purchasing Patterns

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

MenMen:: Snap decision; fickle..

Source: Martha Barletta, Marketing to Women

2.62.6 vs.vs.

2121

Genetically Altered FoodGenetically Altered Food

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

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

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

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

Source: www.pulse.orgSource: www.pulse.org

*Safety! *Safety! (Thanks, China!)

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

thecountrythatcares.comthecountrythatcares.com

The Top Ten Rules to Remember About Women ConsumersThe Top Ten Rules to Remember About Women Consumers

1. Women buy or influence the purchase of most consumer products.1. Women buy or influence the purchase of most consumer products.2. Gender is the most powerful determinate of how a person views the 2. Gender is the most powerful determinate of how a person views the world and everything in it. It’s more powerful than age, income, race or world and everything in it. It’s more powerful than age, income, race or geography.geography.3. Women’s brain structures are different from men’s …3. Women’s brain structures are different from men’s …4. Female culture should be studied with the same focus that entering a 4. Female culture should be studied with the same focus that entering a foreign market requires. …foreign market requires. …5. The person who makes the sales transaction isn’t necessarily the 5. The person who makes the sales transaction isn’t necessarily the decision maker. …decision maker. …6. Pink is not a strategy.6. Pink is not a strategy.7. 7. If women make up a significant portion of your customer base, they If women make up a significant portion of your customer base, they should be represented proportionately on your management team.should be represented proportionately on your management team.8. There are five important trends driving the world’s female population …8. There are five important trends driving the world’s female population …9. Women around the world are more similar than they are different.9. Women around the world are more similar than they are different.10. When you please women, you tend to make your male customers 10. When you please women, you tend to make your male customers happier too.happier too.

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

Some Suggested ReadingSome Suggested Reading

**Marketing to Women: How to Increase Your Share of**Marketing to Women: How to Increase Your Share of the World’s Largest Market, the World’s Largest Market, by Martha Barlettaby Martha Barletta**The Power of the Purse: How Smart Businesses Are**The Power of the Purse: How Smart Businesses Are Adapting to the World’s Most Important Consumers,Adapting to the World’s Most Important Consumers, by Fara Warnerby Fara Warner**Why She Buys: The New Strategy for Reaching the **Why She Buys: The New Strategy for Reaching the World’s Most Powerful Consumers, World’s Most Powerful Consumers, by Bridget by Bridget BrennanBrennan [Key word: “World”—this applies literally everywhere][Key word: “World”—this applies literally everywhere]

**What Women Want: The Global Market Turns Female**What Women Want: The Global Market Turns Female Friendly, Friendly, by Paco Underhillby Paco Underhill**The Soccer Mom Myth: Today’s Female Consumer, **The Soccer Mom Myth: Today’s Female Consumer, WhoWho She Really Is, Why She Really Buys, She Really Is, Why She Really Buys, by Michele Millerby Michele Miller and Holly Buchananand Holly Buchanan****Influence: How Women’s Soaring Economic PowerInfluence: How Women’s Soaring Economic Power Will Transform Our World for the Better, Will Transform Our World for the Better, byby Maddy DychtwaldMaddy Dychtwald****The Female BrainThe Female Brain, by Louann Brizendine, M.D., by Louann Brizendine, M.D.

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find New Studies find

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

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

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

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

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

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

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

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

diversitydiversity..

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

“Guys want to put everybody in their

hierarchical place. Like, should I have more

respect for you, or are you somebody that’s

south of me?”—Paul Biondi, Mercer Consultants

[from It’s Not Business, It’s Personal, Ronna Lichtenberg]

““In the 1990s, the Canadian Broadcasting Corporation/CBC created a short film that recorded an experiment in In the 1990s, the Canadian Broadcasting Corporation/CBC created a short film that recorded an experiment in leadership styles between women and men. CBC didn’t tell the participants the objective of the work they would leadership styles between women and men. CBC didn’t tell the participants the objective of the work they would do that day; the director simply divided the male and female leaders into two teams, and gave those team do that day; the director simply divided the male and female leaders into two teams, and gave those team leaders the same instructions: build an adventure camp. The teams were set up in a somewhat militaristic style leaders the same instructions: build an adventure camp. The teams were set up in a somewhat militaristic style at first, including team members wearing uniforms, but also with the caveat in place that the teams could alter at first, including team members wearing uniforms, but also with the caveat in place that the teams could alter their style and method as they wished as long as they met the outcome in time.their style and method as they wished as long as they met the outcome in time.

““Leader one immediately created a rank-and-file hierarchy and gave orders, even going so far as to assert Leader one immediately created a rank-and-file hierarchy and gave orders, even going so far as to assert authority by challenging members on whether they had polished their shoes. authority by challenging members on whether they had polished their shoes.

““Leader two did not have the ‘troops’ line up and be inspected, but instead met with the other team members in a Leader two did not have the ‘troops’ line up and be inspected, but instead met with the other team members in a circle, asking ‘How are we doing? Are we ready?’ ‘Anything else we should do?’ ‘Do you think they’ll test us on circle, asking ‘How are we doing? Are we ready?’ ‘Anything else we should do?’ ‘Do you think they’ll test us on whether we’ve polished our shoes?’ Instead of giving orders, leader two was touching team members on the arm whether we’ve polished our shoes?’ Instead of giving orders, leader two was touching team members on the arm to reassure them.to reassure them.

““As part of the program, CBC arranged for corporate commentators to watch the teams prepare. As part of the program, CBC arranged for corporate commentators to watch the teams prepare. Initially the commentators (mostly men) were not impressed by the leadership style of leader Initially the commentators (mostly men) were not impressed by the leadership style of leader two; the second team wasn’t ‘under control,’ members weren’t lined up, and they ‘lacked order’ two; the second team wasn’t ‘under control,’ members weren’t lined up, and they ‘lacked order’ (or so it seemed). (or so it seemed). The commentators predicted that team two would not successfully complete The commentators predicted that team two would not successfully complete the task. Yet when the project was completed, team two had built an impressive adventure camp the task. Yet when the project was completed, team two had built an impressive adventure camp as good as team one’s, with some aspects that were judged as betteras good as team one’s, with some aspects that were judged as better..

““When de-briefing their observations, the commentators noticed that when team one was building the structures When de-briefing their observations, the commentators noticed that when team one was building the structures for the camp, there had been discord regarding who was in charge and who had completed which job and who for the camp, there had been discord regarding who was in charge and who had completed which job and who hadn’t. Team one exhibited a lack of communication during the process of completion that created problems (for hadn’t. Team one exhibited a lack of communication during the process of completion that created problems (for example, ‘Wasn’t someone else supposed to do this?’).example, ‘Wasn’t someone else supposed to do this?’).

““Team two, on the other hand, took lonTeam two, on the other hand, took longger to do certain thiner to do certain thinggs, but because of its ems, but because of its empphasis on hasis on communication and collaboration during the enactment of the task (such as ‘Let’s trcommunication and collaboration during the enactment of the task (such as ‘Let’s tryy this’ and this’ and ‘What do ‘What do yyou think about that?’), the team met the ou think about that?’), the team met the ggoal of buildinoal of buildingg the adventure cam the adventure campp in its in its own own ppositive way, and on time.”ositive way, and on time.”

Source:Source: Leadership and the Sexes: Using Gender Science to Create Success in Business, Leadership and the Sexes: Using Gender Science to Create Success in Business, by Michael Gurian and Barbara Annis (section title: “Gender Experiments Surprise Even the Experts”)by Michael Gurian and Barbara Annis (section title: “Gender Experiments Surprise Even the Experts”)

Lawrence A. Pfaff & Assoc.Lawrence A. Pfaff & Assoc.

— 2 Years, 941 mgrs (672M, 269F);— 2 Years, 941 mgrs (672M, 269F); 360º feedback 360º feedback — — Women: better in 20 of 20 Women: better in 20 of 20 categories; 15 of 20 with statistical categories; 15 of 20 with statistical significance, incl. decisiveness, significance, incl. decisiveness, planning, setting stds. planning, setting stds. —— “Men are not rated significantly “Men are not rated significantly higher by higher by anany y of the raters in of the raters in ananyy of the areas measured.” (LP) of the areas measured.” (LP)

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

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

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

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

with others?”with others?”

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

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

“ “So, Tom, So, Tom, let’s cut to let’s cut to the chase, the chase,

what’s your what’s your answer?”answer?”

50% in 18-24 months50% in 18-24 months VP Product Development VP Product Development

VP MarketingVP Marketing

**Women Women decidedecide..**Women Women savesave..**Women Women ssppendend..**Women Women startstart businessesbusinesses..**Women Women rulerule..

*Women *Women decidedecide*Women *Women savesave*Women *Women ssppendend*Women*Women start start businessesbusinesses*Women *Women rulerule

**In the In the develodeveloppeded world world**In the In the develodeveloppining worldg world [Developing = Growing middle class][Developing = Growing middle class]

**The trend is The trend is acceleratinacceleratingg

““Progress is Progress is achieved achieved through through

women.”women.” —Bernard Kouchner,—Bernard Kouchner,

founder, Doctors Without Borders (and French foreign minister) founder, Doctors Without Borders (and French foreign minister)

““Investment in girls’ Investment in girls’ education may well be education may well be

the highest-return the highest-return investment available investment available

in the developing in the developing world.”world.” —Larry Summers (as chief economist at the World Bank)—Larry Summers (as chief economist at the World Bank)

Elizabeth Cady StantonElizabeth Cady Stanton (more or less) (31 March 2007)(more or less) (31 March 2007)

““To Hell With Well To Hell With Well BehavedBehaved … … Recently a young Recently a young mother asked for advice. What, she mother asked for advice. What, she

wanted to know, was she to do with awanted to know, was she to do with a 7-year-old who was obstreperous, 7-year-old who was obstreperous,

outspoken, and inconveniently willful? outspoken, and inconveniently willful?

‘Keep her,’‘Keep her,’ I replied. … The I replied. … The suffragettes refused to be polite in suffragettes refused to be polite in

demanding what they wanted or grateful demanding what they wanted or grateful for getting what they deserved. Works for getting what they deserved. Works

for me.”for me.” —Anna Quindlen/—Anna Quindlen/NewsweekNewsweek

All You Need All You Need to Know to Know

About the About the Aging Aging

Population/Population/MarketMarket

1/8/201/8/20

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

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

50/5050/507/137/13

1/8/201/8/2022/1/1022/1/10

22/122/1

22/1/1022/1/10 (USA (USA

adult population will have adult population will have grown by 23 million grown by 23 million between 2006 and 2016. between 2006 and 2016. Ages Ages 18-4918-49 will have will have grown by one million, age grown by one million, age 50+50+ will have grown will have grown by 22 million)by 22 million)

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

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

ahead of them.”ahead of them.” —Bill

Novelli, 50+: Igniting a Revolution to Reinvent America

7/17/133

Average # of cars purchased per Average # of cars purchased per

household, “lifetime”: household, “lifetime”: 1313Average # of cars bought per household Average # of cars bought per household after the “head of household” reachesafter the “head of household” reaches

age 50: age 50: 77Source: Marti Barletta, Source: Marti Barletta, PrimeTime WomenPrimeTime Women

$8.4$8.4TT

Boomers:Boomers:

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

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

Total inheritanceTotal inheritance$8.4 Trillion$8.4 Trillion

Source: Forbes/0411.11

50/5050/50 (At age 50, we have 50% of our adult (At age 50, we have 50% of our adult

lifelife ahead of us) ahead of us)

7/137/13 (An American will buy 13 cars in the course(An American will buy 13 cars in the course

of a lifetime—7 after the age of 50)of a lifetime—7 after the age of 50)

22/1/1022/1/10 (USA adult population will have(USA adult population will have

grown by 23 million between 2006grown by 23 million between 2006 and 2016. Ages 18-49 will haveand 2016. Ages 18-49 will have grown by 1 million, age 50+ willgrown by 1 million, age 50+ will have grown by 22 million)have grown by 22 million)

1/8/201/8/20 (One USA boomer will turn 65 every 8(One USA boomer will turn 65 every 8

seconds for the next 20 years)seconds for the next 20 years)

8.48.4 (Boomers inherit $8.4 trillion in next few (Boomers inherit $8.4 trillion in next few

years.)years.)

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

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

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

USA 1996-2007USA 1996-2007

HighestHighest rate rate entrepreneurial activity entrepreneurial activity

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

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

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

44-6544-65:: “New “New Customer Customer Majority”Majority”

Source: Source: Ageless MarketingAgeless Marketing, David Wolfe & Robert Snyder, David Wolfe & Robert Snyder

““The New Customer The New Customer

Majority is the … Majority is the … onlyonly … adult market with … adult market with

realistic prospects for realistic prospects for significant sales growth significant sales growth

in dozens of product lines in dozens of product lines for thousands of for thousands of

companies.”companies.” —David Wolfe & Robert Snyder, —David Wolfe & Robert Snyder, Ageless MarketingAgeless Marketing

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

Sweet Spots for Sweet Spots for Marketers”Marketers”

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

““Marketers attempts at reaching Marketers attempts at reaching those over 50 have been miserably those over 50 have been miserably

unsuccessful.unsuccessful. No market’s No market’s motivations andmotivations and

needs are so needs are so poorlpoorlyy

understoodunderstood.”.” ——Peter Francese, founding publisher, Peter Francese, founding publisher, American DemographicsAmerican Demographics

We are the We are the Aussies & Kiwis &Aussies & Kiwis & Americans & CanadiansAmericans & Canadians. . We are the We are the Western EuropeansWestern Europeans & & JapaneseJapanese. We are . We are the the fastest growingfastest growing, the , the biggestbiggest, the , the

wealthiestwealthiest, the , the boldestboldest, the most , the most (yes) (yes) ambitiouambitious, the most s, the most

experimental & exploratoryexperimental & exploratory, the , the most most differentdifferent, the most , the most indulgentindulgent, the most , the most difficult difficult

&& demandingdemanding, the most , the most service & experience service & experience obsessedobsessed, the most , the most vigorousvigorous, (the , (the leastleast vigorous,) vigorous,) the most the most health conscioushealth conscious, the most , the most femalefemale, the , the

most profoundly important commercial market in the most profoundly important commercial market in the

history of the world—andhistory of the world—and we will be we will be the Center of the Center of yyour our

universe for the next universe for the next twenttwentyy-five -five yyearsears.. We We

have arrived!have arrived!

People People FirsFirst!t! People People SeconSecond ! d !

People People Third!Third! People People Fourth!Fourth!

People Fifth! People Fifth! People Sixth!People Sixth!

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

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

worth worth doingdoing.”.”

——Richard BransonRichard Branson

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

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

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

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

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

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

"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 Providing "What's the Secret to Providing

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

Carry it around on a Carry it around on a cardcard: : “My “My employees employees are my #1 are my #1 Customer.”Customer.”

"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

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

customers then customers then must must firstfirst WOW WOW those who WOW those who WOW the customers!the customers!

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

rarely make rarely make significant significant


““We are a We are a ‘‘LiLiffee

SuccessSuccess’ ’ Company.”Company.”

Dave Liniger, founder, Dave Liniger, founder, RE/MAXRE/MAX

““No matter what the No matter what the situation, situation, [the great manager’s][the great manager’s] first first response is always to think response is always to think

about the individual about the individual concerned and concerned and how thinhow thinggs s

can be arrancan be arrangged to heled to helpp that that individual exindividual expperience erience successsuccess.”.” —Marcus Buckingham, —Marcus Buckingham,

The One Thing You Need to KnowThe One Thing You Need to Know

If the manager’s sole task is If the manager’s sole task is to make team members to make team members

successful— successful— then what is then what is yyourour [manager][manager] p plan to lan to

make each individual make each individual more successful within more successful within

the cominthe comingg week week??

"When I hire someone, "When I hire someone, that's when I that's when I ggo to work for themo to work for them.”.” —John DiJulius —John DiJulius

So what So what ONEONE THINGTHING will you to dowill you to do

TODAYTODAY to foster to foster employees’/an employees’/an

employee’s growth?employee’s growth?

EMPLOYEES FIRST, CUSTOMERS SECOND:EMPLOYEES FIRST, CUSTOMERS SECOND:Turning Conventional Management Upside Turning Conventional Management Upside

DownDownVineet Nayar/CEO/HCL TechnologiesVineet Nayar/CEO/HCL Technologies

Brand Brand = =

Talent.Talent.

Our Mission

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

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

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

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

WPP

… … no less than no less than CathedralsCathedrals

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

Imagination and Spirit and Imagination and Spirit and native Entrepreneurial flairnative Entrepreneurial flair

of diverse individualsof diverse individuals is is unleashed in passionate unleashed in passionate pursuit of … pursuit of … ExcellenceExcellence..

““Leaders Leaders

‘‘dodo’’ people. people.

Period.”Period.” —Anon.—Anon.

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

Our goal is to serve our customers brilliantly and profitably Our goal is to serve our customers brilliantly and profitably overover 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, haul is a product of brilliantly serving, over the long haul, thethe 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 growth everything in between—is abetting the sustained growth andand success and engagement and enthusiasm and commitment success and engagement and enthusiasm and commitment toto Excellence of those, one at a time, who directly or indirectlyExcellence of those, one at a time, who directly or indirectly serve the ultimate customer.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] areare growing.growing.““We” We” [leaders][leaders] only succeed when “they” only succeed when “they” [each and every one of our [each and every one of our colleagues]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.

7 Steps to Sustaining Success7 Steps to Sustaining Success

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

7 Steps to Sustaining Success7 Steps to Sustaining Success

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

Three Three People!People!

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

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

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

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

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

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

““Unremarkable” Unremarkable” except forexcept for RESULTS: RESULTS:

Superb people Superb people developer developer

(her/his folks (her/his folks invariablyinvariably

amazed at what amazed at what they’ve accomplished!)they’ve accomplished!)

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

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

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

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

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

Les WexnerLes Wexner:: From From sweaters to sweaters to

people!*people!*

*Limited Brands founder Les Wexner queried on astounding *Limited Brands founder Les Wexner queried on astounding long-term success—said, in effect, it happened because he gotlong-term success—said, in effect, it happened because he got

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

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

53 = 53 = 5353

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

should should notnot be be standardized. standardized.

EverEver..

Standardized Evaluations?Standardized Evaluations?

NFL players?NFL players?World Cup team players?World Cup team players?

Actors in a theater Actors in a theater company?company?

Dancers in a ballet Dancers in a ballet company?company?

Etc.Etc.Etc.Etc.

Evaluating people Evaluating people = #1 differentiator= #1 differentiator

Source: Jack Welch/Jeff Immelt on GE’s Source: Jack Welch/Jeff Immelt on GE’s #1#1

strategic skill (strategic skill (!!!!!!!!))

70 70 centscents

““Development can help great Development can help great

people be even better—people be even better—but if but if I had a dollar to I had a dollar to

spend, I’d spend 70 spend, I’d spend 70 cents getting the cents getting the

right person in the right person in the doordoor.”.” ——Paul Russell, Director, Leadership and Development, Paul Russell, Director, Leadership and Development,

GoogleGoogle

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

TP: TP: “How to throw

$500,000 into

the sea in one easy

lesson!!”

< CAPEX< CAPEX> People!> People!

2X2XSource: Container Store/Goal: increase average sale per shopperSource: Container Store/Goal: increase average sale per shopper

““C-C-level”? level”?

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

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

function.function.

Heroism: Heroism: TrainingTraining > Patriotism> Patriotism

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

No company ever No company ever Expended too Expended too

much much thoughtthought//EffortEffort/ / $$$$$$$$ on training! on training!**

**ESPECIALLYESPECIALLY … small company … small company

Meanwhile in Meanwhile in Rochester NY …Rochester NY …

WegmansWegmans

..

4 4 Words!Words!

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

organization are …organization are …

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

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

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

HelpingHelping

New day.New day.New New

Game.Game.

““Things don’t stay the same. You Things don’t stay the same. You have to understand that not only have to understand that not only your business situation changes, your business situation changes,

but the people you’re working with but the people you’re working with aren’t the same day to day. aren’t the same day to day.

Someone is sick. Someone is Someone is sick. Someone is having a wedding. having a wedding. You must You must ggauaugge e the mood, the thinkinthe mood, the thinkingg level of the level of the

team that dateam that day.”y.” —Coach K [Krzyzewski]—Coach K [Krzyzewski]

230 workdays 230 workdays == 230 230

“rosters”“rosters”

2%2% /98%/98%

““Be kind, for Be kind, for everyone you everyone you

meet is fighting a meet is fighting a great battle.”great battle.”

——Philo of AlexandriaPhilo of Alexandria

2%2% /98%/98%

““I believe that it is more I believe that it is more important for a leader to be important for a leader to be trained in trained in pspsyychiatrchiatry than y than

ccyyberneticsbernetics. The head of a big . The head of a big company recently said to me, company recently said to me, ‘I ‘I

am no longer a Chairman.am no longer a Chairman. I have had to become a I have had to become a

psychiatric nurse.’psychiatric nurse.’ Today’s Today’s executive is under pressure executive is under pressure

unknown to the last unknown to the last generation.”generation.” —David Ogilvy—David Ogilvy

The Memories The Memories That That MatterMatter..

The Memories That MatterThe Memories That Matter

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

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


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

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

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


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

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


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

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

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


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

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


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

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

Joe J. Jones Joe J. Jones 1942 – 2010 1942 – 2010

Net WorthNet Worth

$21,543,672.48$21,543,672.48

CharacterCharacter

““CharacterCharacter is more crucial now is more crucial now than ever, because in times of than ever, because in times of

great uncertainty past great uncertainty past performance is no indicator of performance is no indicator of

future performance. future performance. Experience falls away and all Experience falls away and all

you’re left with is you’re left with is charactercharacter.”.” ——David Rothkopf, founder of a firm that helps chief executives David Rothkopf, founder of a firm that helps chief executives

manage risksmanage risks

PE-squaredPE-squared

PE-squared:PE-squared:PeoplePeople

ExecutionExecutionExcellenceExcellence

MBWAMBWA

MBWMBWAA

Managing By Wandering Around/Managing By Wandering Around/HPHP

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

MBWA 4: Change the World With FOUR WordsMBWA 4: Change the World With FOUR Words

What do you think?*What do you think?*

*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?”

MBWA 8: Change the World With EIGHT WordsMBWA 8: Change 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: Change the World With TWELVE WordsMBWA 12: Change the World 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]?

You = You = Your Your

calendarcalendar

You = You = Your Your

calendarcalendar**

*The calendar *The calendar nevernever lies.lies.

Your calendar Your calendar knowsknows PreciselyPrecisely

what youwhat youreally care about.really care about.

DoDo youyou????????

To Don’t To Don’t >To Do*>To Do** “Don’ting” must be systematic > * “Don’ting” must be systematic >

WILLPOWERWILLPOWER

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

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

—

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

—David D’Alessandro, Career Warfare

““Nothing is Nothing is so contagious so contagious

as as enthusiasm.”enthusiasm.”

—Samuel Taylor Coleridge—Samuel Taylor Coleridge

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

enthusiasm.”enthusiasm.”

—Ben Zander—Ben Zander

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

““The leader must have The leader must have infectious optimism. … infectious optimism. …

The final test of a leader The final test of a leader is the feeling you have is the feeling you have

when you leave his when you leave his presence after a presence after a

conference. Have you a conference. Have you a feeling of uplift and feeling of uplift and

confidence?”confidence?” —Field Marshall Bernard Montgomery—Field Marshall Bernard Montgomery

“Make it fun to work at your Make it fun to work at your agency. … Encourage agency. … Encourage

exuberance.exuberance. Get rid Get rid of sad dogs of sad dogs who spread who spread doom.”doom.” —David Ogilvy—David Ogilvy

Me first!Me first!

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

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

affect everaffect everyyone around one around yyouou is what is what

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

BusinessBusiness #45) #45)

““How can a high-level How can a high-level leader like _____ be so out of leader like _____ be so out of touch with the truth about touch with the truth about himself? It’s more common himself? It’s more common

than you would imagine. than you would imagine. In fact, the higher up the ladder a leader

climbs, the less accurate his self-

assessment is likely to be. The problem is an The problem is an

acute lack of feedback acute lack of feedback [especially on people [especially on people

issues].”issues].”

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

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

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

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

""You will never change You will never change your life until you change your life until you change something you do daily. something you do daily.

The secret of The secret of yyour our success is found in success is found in yyour our daildailyy routine routine."." -- John C. Maxwell-- John C. Maxwell

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

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

or …or …

1. Have you in the1. Have you in the last 10 days … last 10 days … visitedvisited a customer? a customer?2. Have you called a2. Have you called a customer … customer …

TODAYTODAY ??

1. 1. Have you … in the last 10 days … visited a Have you … in the last 10 days … visited a customecustomer?r?2. 2. Have you called a customer … Have you called a customer … TODAYTODAY??

3. Have you in the last 60-90 days … had a seminar in which several folks from the customer’s 3. Have you in the last 60-90 days … had a seminar in which several folks from the customer’s operation (different levels, different functions, different divisions) interacted, via facilitator, with operation (different levels, different functions, different divisions) interacted, via facilitator, with various of your folks?various of your folks?

4. 4. Have you thanked a front-line employee for a Have you thanked a front-line employee for a small act of helpfulness … in the last three small act of helpfulness … in the last three days?days?

5. Have you thanked a front-line employee for a small act of helpfulness … 5. Have you thanked a front-line employee for a small act of helpfulness … in the in the last three last three hourshours??6. Have you thanked a front-line employee for carrying around a great 6. Have you thanked a front-line employee for carrying around a great attitude attitude … today?… today?7. Have you in the last week recognized—publicly—one of your folks for a small act of 7. Have you in the last week recognized—publicly—one of your folks for a small act of cross-cross-functional co-operationfunctional co-operation??8. Have you in the last week recognized—publicly—one of “their” folks (another function) for a 8. Have you in the last week recognized—publicly—one of “their” folks (another function) for a small act of cross-functional co-operation?small act of cross-functional co-operation?9. Have you invited in the last month a leader of 9. Have you invited in the last month a leader of another functionanother function to your weekly team priorities to your weekly team priorities meeting?meeting?10. Have you personally in the last week-month called-visited an internal or external customer to 10. Have you personally in the last week-month called-visited an internal or external customer to sort out, inquire, or apologizesort out, inquire, or apologize for some little or big thing that went awry? (No reason for doing for some little or big thing that went awry? (No reason for doing so? If true—in your mind—then you’re more out of touch than I dared imagine.)so? If true—in your mind—then you’re more out of touch than I dared imagine.)

11. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines 11. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines concerning a project’s next steps?concerning a project’s next steps?12. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines 12. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines concerning a project’s next steps … and what specifically concerning a project’s next steps … and what specifically you can do to remove a hurdleyou can do to remove a hurdle? (“Ninety percent of ? (“Ninety percent of what we call management consists of making it difficult for people to get things done.”—Peter “His eminence” what we call management consists of making it difficult for people to get things done.”—Peter “His eminence” Drucker.)Drucker.)13. Have you celebrated in the last week a “small” (or large!) 13. Have you celebrated in the last week a “small” (or large!) milestone milestone reached? (I.e., are you a milestone reached? (I.e., are you a milestone fanatic?)fanatic?)14. Have you in the last week or month revised some estimate in the “wrong” direction and apologized for making 14. Have you in the last week or month revised some estimate in the “wrong” direction and apologized for making a lousy estimate? (Somehow you must publicly a lousy estimate? (Somehow you must publicly reward the telling of difficult truthsreward the telling of difficult truths.).)

15. 15. Have you installed in your tenure a very Have you installed in your tenure a very comprehensive customer satisfaction scheme comprehensive customer satisfaction scheme for all for all internalinternal customers?customers? (With major consequences for hitting or missing (With major consequences for hitting or missing

the mark.)the mark.)

16. Have you in the last six months had a week-long, visible, very intensive 16. Have you in the last six months had a week-long, visible, very intensive visit-“tour”visit-“tour” of external customers? of external customers?17. Have you in the last 60 days called an abrupt halt to a meeting and “ordered” everyone to get out of the office, 17. Have you in the last 60 days called an abrupt halt to a meeting and “ordered” everyone to get out of the office, and “into the field” and in the and “into the field” and in the next eight hoursnext eight hours, after asking those involved, fixed (f-i-x-e-d!) a nagging “small” , after asking those involved, fixed (f-i-x-e-d!) a nagging “small” problem through practical action?problem through practical action?18. Have you in the last week had a rather thorough discussion of a “cool design thing” someone has come 18. Have you in the last week had a rather thorough discussion of a “cool design thing” someone has come across—away from your industry or function—at a Web site, in a product or its packaging? across—away from your industry or function—at a Web site, in a product or its packaging? 19. Have you in the last two weeks had an informal meeting—at least an hour long—with a front-line employee to 19. Have you in the last two weeks had an informal meeting—at least an hour long—with a front-line employee to discuss things we do right, things we do wrong, what it would take to meet your mid- to long-term aspirations?discuss things we do right, things we do wrong, what it would take to meet your mid- to long-term aspirations?20. Have you had in the last 60 days had a general meeting to discuss “things we do wrong” … that we can fix in 20. Have you had in the last 60 days had a general meeting to discuss “things we do wrong” … that we can fix in the next the next fourteen daysfourteen days??

21. Have you had in the last year a one-day, intense offsite with each (?) of your 21. Have you had in the last year a one-day, intense offsite with each (?) of your internal customers—followed by a big celebration of “things gone right”?internal customers—followed by a big celebration of “things gone right”?22. Have you in the last week pushed someone to do some family thing that you fear 22. Have you in the last week pushed someone to do some family thing that you fear might be overwhelmed by deadline pressure?might be overwhelmed by deadline pressure?23. 23. Have you learned the names of the children of everyone who reports to you?Have you learned the names of the children of everyone who reports to you? (If (If not, you have six months to fix it.)not, you have six months to fix it.)24. Have you taken in the last month an interesting-24. Have you taken in the last month an interesting-weirdweird outsider to lunch? outsider to lunch?25. Have you in the last month invited an interesting-weird outsider to sit in on an25. Have you in the last month invited an interesting-weird outsider to sit in on animportant meeting?important meeting?26. Have you in the last three days discussed something interesting, beyond your 26. Have you in the last three days discussed something interesting, beyond your industry, that you ran across in a meeting, reading, etc?industry, that you ran across in a meeting, reading, etc?27. Have you in the last 24 hours injected into a meeting “I ran across this interesting 27. Have you in the last 24 hours injected into a meeting “I ran across this interesting idea in [strange place]”?idea in [strange place]”?28. Have you in the last two weeks asked someone to report on something, anything 28. Have you in the last two weeks asked someone to report on something, anything that constitutes an act of brilliant service rendered in a “trivial” situation—restaurant, that constitutes an act of brilliant service rendered in a “trivial” situation—restaurant, car wash, etc? (And then discussed the relevance to your work.)car wash, etc? (And then discussed the relevance to your work.)

29. 29. Have you … in the last 30 days … examined Have you … in the last 30 days … examined in detail (hour by hour) your calendar to evaluate the in detail (hour by hour) your calendar to evaluate the degree “time actually spent” mirrors your “espoused degree “time actually spent” mirrors your “espoused priorities”? priorities”? (And repeated this exercise with everyone on (And repeated this exercise with everyone on team.)team.)

30. Have you in the last two months had a presentation to the group by a “weird” 30. Have you in the last two months had a presentation to the group by a “weird” outsider? outsider?

31. Have you in the last two months had a presentation to the group by a customer, 31. Have you in the last two months had a presentation to the group by a customer, internal customer, vendor featuring “working folks” 3 or 4 levels down in the vendor internal customer, vendor featuring “working folks” 3 or 4 levels down in the vendor organization? organization? 32. Have you in the last two months had a presentation to the group of a cool, 32. Have you in the last two months had a presentation to the group of a cool, beyond-our-industry ideas by two of your folks?beyond-our-industry ideas by two of your folks?33. Have you at every meeting today (and forever more) re-directed the conversation 33. Have you at every meeting today (and forever more) re-directed the conversation to the practicalities of implementation concerning some issue before the group?to the practicalities of implementation concerning some issue before the group?34. Have you at every meeting today (and forever more) had an end-of-meeting 34. Have you at every meeting today (and forever more) had an end-of-meeting discussion on “action items to be dealt with in the next 4, 48 hours”? (And then discussion on “action items to be dealt with in the next 4, 48 hours”? (And then made this list public—and followed up in 48 hours.) And made sure everyone has at made this list public—and followed up in 48 hours.) And made sure everyone has at least one such item.)least one such item.)35. Have you had a discussion in the last six months about what it would take to get 35. Have you had a discussion in the last six months about what it would take to get recognition in local-national poll of recognition in local-national poll of “best places to work”?“best places to work”?36. Have you in the last month approved a 36. Have you in the last month approved a cool-different training coursecool-different training course for one for one of your folks?of your folks?

37. 37. Have you … in the last month … Have you … in the last month … tautaugghtht a front-line a front-line training course?training course?

38. Have you in the last week discussed the idea of 38. Have you in the last week discussed the idea of ExcellenceExcellence? (What it means, how? (What it means, howto get there.)to get there.)39. Have you in the last week discussed the idea of 39. Have you in the last week discussed the idea of “Wow”?“Wow”? (What it means, how (What it means, howto inject it into an ongoing “routine” project.)to inject it into an ongoing “routine” project.)40. Have you in the last 45 days assessed some major process in terms of the details 40. Have you in the last 45 days assessed some major process in terms of the details of the “experience,” as well as results, it provides to its external or internal of the “experience,” as well as results, it provides to its external or internal customers?customers?

41. Have you in the last month had one of your folks attend a meeting you were supposed to go 41. Have you in the last month had one of your folks attend a meeting you were supposed to go to which gives them unusual exposure to senior folks?to which gives them unusual exposure to senior folks?42. Have you in the last 60 (30?) days sat with a trusted friend or “coach” to discuss your 42. Have you in the last 60 (30?) days sat with a trusted friend or “coach” to discuss your “management style”—and its long- and short-term impact on the group?“management style”—and its long- and short-term impact on the group?

43. 43. Have you … in the Have you … in the last three days …last three days … considered a considered a professional relationship that was a little rocky and professional relationship that was a little rocky and made a call to the person involved to discuss issues made a call to the person involved to discuss issues and smooth the waters? (Taking the “blame,” fully and smooth the waters? (Taking the “blame,” fully deserved or not, for letting the thing-issue fester.)deserved or not, for letting the thing-issue fester.)

44. Have you in the last … 44. Have you in the last … two hourstwo hours … stopped by someone’s (two-levels “down") office- … stopped by someone’s (two-levels “down") office-workspace for 5 minutes to ask “What do you think?” about an issue that arose at a more or workspace for 5 minutes to ask “What do you think?” about an issue that arose at a more or less just completed meeting? (And then stuck around for 10 or so minutes to listen—and less just completed meeting? (And then stuck around for 10 or so minutes to listen—and visibly taken notes.)visibly taken notes.)45. Have you … in the last day … looked around you to assess whether the diversity pretty 45. Have you … in the last day … looked around you to assess whether the diversity pretty accurately maps the diversity of the market being served? (And …) accurately maps the diversity of the market being served? (And …) 46. Have you in the last day at some meeting gone out of your way to make sure that a 46. Have you in the last day at some meeting gone out of your way to make sure that a normally reticent person was engaged in a conversation—and then thanked him or her, normally reticent person was engaged in a conversation—and then thanked him or her, perhaps privately, for their contribution?perhaps privately, for their contribution?47. Have you during your tenure instituted very public (visible) presentations of performance?47. Have you during your tenure instituted very public (visible) presentations of performance?48. Have you in the last four months had a session specifically aimed at checking on the 48. Have you in the last four months had a session specifically aimed at checking on the “corporate culture” and the degree we are true to it—with all presentations by relatively junior “corporate culture” and the degree we are true to it—with all presentations by relatively junior folks, including front-line folks? (And with a determined effort to keep the conversation folks, including front-line folks? (And with a determined effort to keep the conversation restricted to “real world” “small” cases—not theory.) restricted to “real world” “small” cases—not theory.) 49. Have you in the last six months talked about the 49. Have you in the last six months talked about the Internal Brand PromiseInternal Brand Promise??50. Have you in the last year had a full-day off site to talk about individual (and group) 50. Have you in the last year had a full-day off site to talk about individual (and group) aspirations?aspirations?

The Recession 44:The Recession 44:Forty-four “Secrets” Forty-four “Secrets”

and “clever Strategies” and “clever Strategies” For dealing For dealing

Progressively with the Progressively with the Great Recession of Great Recession of

2007++2007++

No peacetime generals No peacetime generals in the history books: in the history books: You You

will be measured by will be measured by what you accomplish what you accomplish

during tough times. (during tough times. (AndAnd remembered by remembered by howhow

you accomplished it.)you accomplished it.)

K = R = PK = R = P

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

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

and appreciating heart.”and appreciating heart.”

—Henry Clay,American Statesman (1777-1852)

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

nonenone of THE top 15 factors of THE top 15 factors

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

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

EmploEmployyee Satisfactionee Satisfaction

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

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

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

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

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

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

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

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

K = R = K = R = PP

Kindness = Kindness = Repeat Business Repeat Business

== Profit.Profit.

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

Kindness:Kindness:

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

Acknowledgement/Acknowledgement/Appreciation/Appreciation/““Thank you!”Thank you!”

““The deepest principal The deepest principal inin

human nature human nature is the craving* to be is the craving* 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 PeopleHow to Win Friends and Influence People

“Acknowledge” … perhaps the most

powerful word (and idea) in the English

language—and manager’s tool kit!

Repeat:Repeat: “Employees “Employees who don't feel who don't feel

significant rarely significant rarely make significant make significant


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.

With a new and forthcoming policy on With a new and forthcoming policy on apologies … Toro, the lawn mower apologies … Toro, the lawn mower folks, reduced the average cost of folks, reduced the average cost of

settling a claim fromsettling a claim from $$115,000115,000 in in

1991 to1991 to $$35,00035,000 in 2008 in 2008 …… and and the companthe companyy hasn’t hasn’t been to trial in the been to trial in the

lastlast

1515 y yearsears!!

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

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

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

COMPLETE RUPTURE.COMPLETE RUPTURE.**

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

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

PROBLEM. THEPROBLEM. THE

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

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

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

>>>>PerfectionPerfection

TGRs/ TGRs/ LBTs LBTs

8/808/80

CustomersCustomers describing their describing their service experience as service experience as

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

the service experience they the service experience they provide asprovide as

“ “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?

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

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

sir?”sir?”

<TG<TGWWandand … …

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

TGRTGRss..ManageManage ’em. ’em.

MeasureMeasure ’em.’em.**

*I use “manage-measure” a lot. Translation: These are*I use “manage-measure” a lot. Translation: These are not “soft” ideas; they are exceedingly important things not “soft” ideas; they are exceedingly important things

that can be managed—AND measured. that can be managed—AND measured.

““ExperiencesExperiences 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

Little =Little =

BIGBIG

Big carts =Big carts =

1.5X1.5XSource: WalmartSource: Walmart

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

$B$BSource: PepsiCoSource: PepsiCo

120-oz container to ketchup-bottle 120-oz container to ketchup-bottle size laundry-detergentsize laundry-detergent concentrate concentrate

(100% conversion):(100% conversion): 1/4th 1/4th packaging; 1/4th weight; 1/4th packaging; 1/4th weight; 1/4th

cost to ship; 1/4th space on cost to ship; 1/4th space on ships, trucks, shelves. 3 years: ships, trucks, shelves. 3 years:

95M #s plastic resin saved, 125M 95M #s plastic resin saved, 125M #s cardboard conserved, 400M #s cardboard conserved, 400M less gallons of water shipped, less gallons of water shipped,

500K gallons less diesel fuel, 11M 500K gallons less diesel fuel, 11M less #s CO2 released)less #s CO2 released)

Source: Source: Force of Nature: The Unlikely Story of Walmart’s Force of Nature: The Unlikely Story of Walmart’s Green RevolutionGreen Revolution, Edward Humes, Edward Humes

DVT/Socks DVT/Socks = 10,000 = 10,000

Lives!Lives!

DesignDesign! !

Design Design RulesRules!!

APPLEAPPLE market market capcap

> Exxon Mobil* > Exxon Mobil*

*August 2011*August 2011

““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]

““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)

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

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

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

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

Steve JobsSteve Jobs

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

aromas and music,aromas and music, StarbucksStarbucks is more is more indicative of our era than the iMac. It is to the indicative of our 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 Production or Ford was to the Age of Mass Production—the touchstone success story, the exemplar of … the —the touchstone success story, the exemplar of … the

aesthetic imperative. …aesthetic imperative. … ‘Every Starbucks ‘Every Starbucks store is carefully designed to store is carefully designed to

enhance the qualityenhance 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..

CCDDOO**Chief *Chief DDesignesign Officer Officer

““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

Design is …Design is …

*The reception area*The reception area*The loo*The loo*Dialogues at the call center*Dialogues at the call center*Every electronic [or paper] form*Every electronic [or paper] form*Every business process “map”*Every business process “map”*Every email*Every email*Every meeting agenda/setting/etc.*Every meeting agenda/setting/etc.*Every square meter of every facility*Every square meter of every facility*Every new product proposal*Every new product proposal*Every manual*Every manual*Every customer contact*Every customer contact*A consideration in every promotion decision*A consideration in every promotion decision*The presence and ubiquity of an “Aesthetic sensibility”/*The presence and ubiquity of an “Aesthetic sensibility”/ “Design mindfulness” “Design mindfulness”*An encompassing “design review” process*An encompassing “design review” process*Etc.*Etc.*Etc.*Etc.

HHypypothesisothesis: Men : Men

cannotcannot design for women’s design for women’s

needsneeds!!??!!??

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

monsters"monsters"

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

seems obviousseems obvious … …

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

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

do I build a small firm for myself?’ The answer seems

obvious: Buy a very Buy a very largelarge

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

Fail: Evolution, Extinction and Economics

Dick Kovacevich: You don’t get better by being

bigger. You get worse.”

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

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

TheTheyy found that found that nonenone ofof

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

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

—Financial Times—Financial Times

M & A success rate as measured M & A success rate as measured by adding value to theby adding value to the

acquirer:acquirer:

15%15%Source: Mark Sirower, Source: Mark Sirower, The Synergy TrapThe Synergy Trap

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

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

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

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

#2 China#2 China

#1 #1 GermanyGermany

MittELstandMittELstand* * ****

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Great Instead of BigGreat Instead of Big

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

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

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

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

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

EX10/Entrepreneurial eXcellence TENEX10/Entrepreneurial eXcellence TEN

1. “Insane” 1. “Insane” PassionPassion for and commitment to for and commitment to the idea. (“You must be able to see the beauty the idea. (“You must be able to see the beauty in a hamburger bun.”) in a hamburger bun.”)2. Can explain the idea in Simple English 2. Can explain the idea in Simple English [Etc.][Etc.] and Excite others about its Uniqueness in and Excite others about its Uniqueness in ONEONE MINUTE MINUTE (or less). (or less).3. Good 3. Good ACCOUNTANT ACCOUNTANT (Loves the #s)/“Wise-man(Loves the #s)/“Wise-man [-woman]”/ [-woman]”/5050--5050 Partner. Partner.4. Devotee of the Experimental Method (“Try4. Devotee of the Experimental Method (“Try it. Now.” Fail. Forward. it. Now.” Fail. Forward. FASTFAST.)/Master of.)/Master of “Plan B”/ “Plan B”/RelentlessRelentless//RESILIENTRESILIENT..5. Patience in 5. Patience in HIRINGHIRING/“/“Great place to workGreat place to work”” from the get-go. from the get-go.6. 6. “d”“d”iversity (Any-all dimensions)/iversity (Any-all dimensions)/M-FM-F balance. balance.7. Exude 7. Exude DecencyDecency--CharacterCharacter--IntegrityIntegrity..8. 8. PlayfulnessPlayfulness/Fun./Fun.9. Sweat the details (9. Sweat the details (EXECUTIONEXECUTION = Strategy). = Strategy).

10. 10. EXCELLENCEEXCELLENCE. Period.. Period.

““Satisfaction”Satisfaction”toto

“Success”“Success”

Huge:Huge: Customer Customer

““SatisfactionSatisfaction with with product/Service”product/Service”

versus versus CustomerCustomer

““SuccessSuccess””

IBMIBM

IBIBMMtoto

IIBBMM

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

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

UPSUPS

““WHAT CAN BROWN DO FOR YOU?”WHAT CAN BROWN DO FOR YOU?”

“It’s all about “It’s all about solutionssolutions. We . We talk with customers about talk with customers about

how to run better, stronger, how to run better, stronger, cheaper supply chains. We cheaper supply chains. We have 1,000 engineers who have 1,000 engineers who work with customers …”work with customers …”

—Bob Stoffel, UPS senior exec—Bob Stoffel, UPS senior exec

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

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

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

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

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

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

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

drilling to drilling to production.”production.”

MasterCard MasterCard AdvisorsAdvisors

“ ‘“ ‘Results’ are Results’ are measured by the measured by the

successsuccess of all those of all those who have purchased who have purchased

your product or your product or service”service” —Jan Gunnarsson & Olle —Jan Gunnarsson & Olle

Blohm, Blohm, The Welcoming LeaderThe Welcoming Leader

““We Are We Are WhatWhat

We Eat.” We Eat.”

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

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

““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

WeWe Are Are the the companycompany we keep!we keep!

ManageManage it! it!

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

The “We are what we eat”/ The “We are what we eat”/ “We are who we associate with”“We are who we associate 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’ ” ”

CUSTOMERS:CUSTOMERS: “Future-“Future-defining customers may defining customers may account for only account for only 2%2% to to 3%3% of your total, of your total, but but

thetheyy re reppresent a resent a crucial window on the crucial window on the futurefuture.”.” —Adrian Slywotzky, Mercer Consultants—Adrian Slywotzky, Mercer Consultants

““[CEO A.G.] Lafley has shifted [CEO A.G.] Lafley has shifted P&G’sP&G’s focus onfocus on

inventing all its own products to developing … inventing all its own products to developing …

others’ others’ inventions at inventions at least half the least half the

timetime.. One successfulOne successful

example, Mr. Clean Magic Eraser, based on a product example, Mr. Clean Magic Eraser, based on a product found in an Osaka market.” found in an Osaka market.” ——FortuneFortune

““Don’t Don’t benchmark, benchmark,

futurefuturemark!”mark!” Impetus: “The future is already here; it’s just

not evenly distributed” —William Gibson

““Don’t Don’t benchmark,benchmark,

‘Other’ ‘Other’ markmark!!””

““To grow, companies need to To grow, companies need to break out of a vicious cycle of break out of a vicious cycle of competitive benchmarking and competitive benchmarking and imitation.”imitation.” —W. Chan Kim & Rene Mauborgne, “”Think for Yourself —Stop Copying a —W. Chan Kim & Rene Mauborgne, “”Think for Yourself —Stop Copying a

Rival,” Rival,” Financial TimesFinancial Times/08.11.03/08.11.03

“Companies have defined “Companies have defined so much ‘best practice’ that so much ‘best practice’ that they are now more or less they are now more or less

identical.”identical.”—Jesper Kunde, —Jesper Kunde, Unique Now ... or NeverUnique Now ... or Never

“The short road to ruin is to emulate the

methods of your adversary.” — Winston

Churchill

Whoops …Whoops …

“The The Bottleneck Bottleneck

……

“The Bottleneck The Bottleneck … Is at … Is at

the Top of the the Top of the Bottle”Bottle”

“Where are you likely to find people “Where are you likely to find people with the with the least diversitleast diversityy of ex of expperienceerience, ,

the the larlarggest investment in the est investment in the ppastast,, and the g and the greatest reverence for reatest reverence for

industrindustryy do doggmama … …

AtAt thethe totop!”p!”

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

Diversity/ Diversity/ Curiosity/ Curiosity/ CreativityCreativity

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

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

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

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

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

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

maybemaybe thethe keykey … … to effective and to effective and

innovative innovative decision making.decision making.

““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

1/451/45

R.F.A.R.F.A.

““We have a We have a strategic plan. strategic plan. It’s called … It’s called …

doindoing tg thinhinggss.”.” —Herb Kelleher—Herb Kelleher

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)

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

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

think you’re finding it when you’re drawing think you’re finding it when you’re drawing maps and studying logs, but you have to maps and studying logs, but you have to

drill.”drill.”

Source: The HuntersSource: The Hunters, by John Masters, , by John Masters, wildly successful Canadian Oil & Gas wildcatterwildly successful Canadian Oil & Gas wildcatter

““What are Rutan’s management rules? He What are Rutan’s management rules? He insists he doesn’t have any. ‘I don’t like insists he doesn’t have any. ‘I don’t like

rules,’ he says. ‘Things are so easy to change rules,’ he says. ‘Things are so easy to change if you don’t write them down.’ Rutan feels if you don’t write them down.’ Rutan feels good management works in much the same good management works in much the same

way good aircraft design does:way good aircraft design does: Instead Instead of trof tryyiningg to fi to figgure out the best ure out the best

way to do somethinway to do somethingg and and stickinstickingg to it, to it, jjust trust tryy out an out an

aapppproach and keeroach and keepp fixin fixingg it it.”.”

——Eric Abrahamson & David Freedman, Chapter 8, “Messy Eric Abrahamson & David Freedman, Chapter 8, “Messy Leadership,”Leadership,” from A Perfect Mess: The Hidden Benefits of Disorder from A Perfect Mess: The Hidden Benefits of Disorder

““We made mistakes, of course. Most of them were We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the omissions we didn’t think of when we initially wrote the

software. software. We fixed them by doing it over and over, We fixed them by doing it over and over, again and again.again and again. We do the same today. While our We do the same today. While our competitors are still sucking their thumbs trying to competitors are still sucking their thumbs trying to

make the design perfect, we’re already on prototype make the design perfect, we’re already on prototype

versionversion ##55.. By the time our rivals are ready By the time our rivals are ready

with wires and screws, we are on version with wires and screws, we are on version

##1010.. It gets back to It gets back to planning versus actingplanning versus acting: : We act We act from day onefrom day one; ; others plan how others plan how

toto planplan——for monthsfor months.”.”

——Bloomberg by BloombergBloomberg by Bloomberg

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

11/45/45

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

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

Lesson45:Lesson45: WTTMSWTTMS

WW

WhoeverWhoeverTriesTriesTheTheMostMostStuffStuffWinsWins

Better yet:Better yet: WTTMSWTTMSASTMSUTFASTMSUTFWW

WhoeverWhoeverTriesTriesTheTheMostMostStuffStuffAndAndScrews Screws The The Most Most Stuff Stuff UpUp TheTheFastestFastestWinsWins

““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)

““Fail.Fail. Forward. Forward.

Fast.”Fast.”

““Fail.Fail. Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

““Fail faster. Fail faster. Succeed Succeed Sooner.”Sooner.”

David Kelley/IDEO

Read ItRead It

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

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

of Innovation of Innovation

““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

““RewardReward excellent failures.

PunishPunish mediocre successes.”

—Phil Daniels, Sydney exec

““It is not enough to It is not enough to ‘tolerate’ failure—‘tolerate’ failure—

you must you must

‘celebrate’‘celebrate’ failure.”failure.” —Richard Farson (—Richard Farson (Whoever Makes the Whoever Makes the

Most Mistakes WinsMost Mistakes Wins))

1/50001/5000

““You miss You miss

100100%%

of the shots of the shots you never you never

take.”take.” —Wayne—Wayne GretzkyGretzky

WowWow

!!

Zappos 10 Corporate ValuesZappos 10 Corporate Values

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

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

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

““Insanely Great”Insanely Great”Steve JobsSteve Jobs

“Radically thrilling” “Radically thrilling” BMW

““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

Skinning Skinning CatsCats

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

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

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

14,00014,00020,00020,000

3030

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

3030/Craigslist/Craigslist

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

impossible things.’ ‘I daresay impossible things.’ ‘I daresay you haven’t had much practice,’ you haven’t had much practice,’

said the Queen. ‘When I was said the Queen. ‘When I was your age, I always did it for half your age, I always did it for half an hour a day. an hour a day. Why, sometimes Why, sometimes

I’ve believed as manI’ve believed as manyy as six as six imimppossible thinossible thinggs before s before

breakfastbreakfast.’”.’” — Lewis Carroll — Lewis Carroll

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

List List

[WOW!][WOW!]

option”option”??

Kevin Roberts’ CredoKevin Roberts’ Credo

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

10. Avoid moderationAvoid moderation!!

Excellence.Excellence. Always. Always.

If notIf not Excellence,Excellence, what?what?

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

conrad hilton …

Documents

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