““Not Dead Yet”Not Dead Yet”

LONGLONG

Tom Peters’Tom Peters’

Re-Imagine:Re-Imagine:ExcellenceExcellence

NOWNOW

Credit Union National AssociationCredit Union National AssociationSan Diego/18 June 2012San Diego/18 June 2012

(slides @ tompeters.com and excellencenow.com)(slides @ tompeters.com and excellencenow.com)

““Not Dead Yet”Not Dead Yet”

BRIC/2011: $11T/$4K per capitaBRIC/2011: $11T/$4K per capitaUSA/2011: $16T/$48K per capitaUSA/2011: $16T/$48K per capita

USA/2000: 4% population/30% world GDPUSA/2000: 4% population/30% world GDPUSA/2010: 4% populattion/28% world GDPUSA/2010: 4% populattion/28% world GDP

USA productivity: ’07/1.7%; ’08/2.1%; ’09/5.4%; ’10/2.4%; USA productivity: ’07/1.7%; ’08/2.1%; ’09/5.4%; ’10/2.4%; ’11/4.1%’11/4.1%

FDIC institutions: 4Q/2008/-$38B; 2Q/2011/+$29BFDIC institutions: 4Q/2008/-$38B; 2Q/2011/+$29B

1/2008 to 9/2011: USA consumer savings 0% to 6%/$2.1T saved1/2008 to 9/2011: USA consumer savings 0% to 6%/$2.1T saved

Foreign Direct Investment: 2003: $64B; 2008: $328B; 2009: Foreign Direct Investment: 2003: $64B; 2008: $328B; 2009: $134B; 2011: $200B+$134B; 2011: $200B+

Exports/2009: USA $1.53T ($1.06T goods, $0.47T services); Exports/2009: USA $1.53T ($1.06T goods, $0.47T services); Germany $1.36T; China $1.33TGermany $1.36T; China $1.33T

USA/Refined petroleum products/1Q 2011: Imports 2.16M BPD; USA/Refined petroleum products/1Q 2011: Imports 2.16M BPD; Exports 2.49M BPDExports 2.49M BPD

““New economy”: Apple (>Exxon) + Google + Facebook ~ $1T New economy”: Apple (>Exxon) + Google + Facebook ~ $1T market capmarket cap

Source: Daniel Gross, Source: Daniel Gross, The Myth of American Decline and the Growth of a New EconomyThe Myth of American Decline and the Growth of a New Economy

Larry JaneskyLarry Janesky Rocks … Rocks …

*Basement Systems Inc.*Basement Systems Inc.

(Seymour CT)(Seymour CT)

**Dry Basement ScienceDry Basement Science (100,000++ copies!) (100,000++ copies!)

**$62,000,000$62,000,000

Basement Systems Inc.

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

seems obviousseems obvious … …

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

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

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

obvious: Buy a very Buy a very largelarge

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

Fail: Evolution, Extinction and Economics

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

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

TheTheyy found that found that nonenone ofof

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

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

—Financial Times—Financial Times

MittELstandMittELstand* * ****

**““aaggile creatures dartinile creatures dartingg between the between the leleggssof the multinational monstersof the multinational monsters””((Bloomberg Bloomberg BusinessWeekBusinessWeek))

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

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

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

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

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

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

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

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

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

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

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 maximummaximum

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

Service/Service/Character/Character/Excellence/Excellence/

ImmoderationImmoderation

Organizations Organizations existexist to to serveserve. .

Period.Period.

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

Service is a Service is a beautiful word. beautiful word.

NOT ... "Wow NOT ... "Wow service" or "raving service" or "raving

fans“fans“ or "experience." or "experience." "Just" ... "Just" ... SERVICESERVICE

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"

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

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.

““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

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.)

"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!

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

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

53 = 53 = 5353

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

should should notnot be be standardized. standardized.

EverEver..

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 (!!!!!!!!))

70/10070/100

““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

Lower Lower Case “d”Case “d”

““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

… … this will be this will be the woman’s the woman’s century …century …

““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

““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

““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.

#1 #1 Asset Asset

If the regimental commander lost most of his If the regimental commander lost most of his 2nd lieutenants and 1st lieutenants and 2nd lieutenants and 1st lieutenants and

captains and majors, it would be a tragedy. captains and majors, it would be a tragedy.

If he lost his If he lost his serserggeants it would eants it would be a catastrobe a catastropphehe. . The The

Army and the Navy are fully aware that Army and the Navy are fully aware that success on the battlefield is dependent to an success on the battlefield is dependent to an extraordinary degree on its Sergeants and extraordinary degree on its Sergeants and Chief Petty Officers. Does industry have the Chief Petty Officers. Does industry have the

same awareness?same awareness?

““People People leave leave

managers not managers not companies.”companies.”

——Dave WheelerDave Wheeler

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

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

nature is the nature is the cravincraving* to be g* to be appreciated.”appreciated.”

—William James—William James

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

BIG Secret of Dealing With People”)BIG Secret of Dealing With People”)

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

rarely make rarely make significant significant

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

"Good leaders make "Good leaders make people feel that people feel that

they're at the very they're at the very heart of things, not heart of things, not at the periphery.”at the periphery.”

——Wareen Bennis Wareen Bennis

““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

A A Profession!Profession!

““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.]

Lunch!Lunch!

XFX = XFX = #1#1**

*Cross-Functional *Cross-Functional eXcellence eXcellence

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.”

% 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.

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.”

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.

The Memories The Memories That [will] That [will]

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.”

The Memories That MatterThe Memories That Matter

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.)

The Memories That MatterThe Memories That Matter

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.

The Memories That MatterThe Memories That Matter

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.)

The Memories That MatterThe Memories That Matter

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

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

The Memories That MatterThe Memories That Matter

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

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

A 15-PointA 15-Point Human Capital Human Capital

Asset Development Asset Development ManifestoManifesto

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

I was intimidated by the title of a conferenceI was intimidated by the title of a conference I addressed in Seoul, Korea. Namely, I addressed in Seoul, Korea. Namely,

“Reframing capitalism.” And by the fact that a “Reframing capitalism.” And by the fact that a passel of Nobel laureates in economics would passel of Nobel laureates in economics would

be addressing the issue.be addressing the issue. Then it occurred to me Then it occurred to me that the mid- to long-term “reframing” was that the mid- to long-term “reframing” was

more about recasting the nature of work/jobs more about recasting the nature of work/jobs in, for example, the face of 2020’s artificial in, for example, the face of 2020’s artificial

intelligence than about whether the Spanish intelligence than about whether the Spanish bailout is $100 billion or $400 billion—as bailout is $100 billion or $400 billion—as

nontrivial as the latter is. nontrivial as the latter is. I.e., what the hell I.e., what the hell will the world’s four billion or so workers be will the world’s four billion or so workers be doing, say, 10 years from now? I’m not sure doing, say, 10 years from now? I’m not sure

that sophisticated econometric analyses will be that sophisticated econometric analyses will be all that helpful in determining an answer.all that helpful in determining an answer.

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

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

"If you want staff to "If you want staff to give great service, give great service, give great servicegive great service to staff."to staff." —Ari Weinzweig —Ari Weinzweig

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

““In some sense you can In some sense you can argue that the science argue that the science

fiction scenario is already fiction scenario is already starting to happen. The starting to happen. The

computers are in control. computers are in control. We just live in their We just live in their

world.”world.” —Danny Hillis —Danny Hillis

3. 3. Three-star generals and admirals (and Three-star generals and admirals (and symphony conductors and sports coaches and symphony conductors and sports coaches and police chiefs and fire chiefs) OBSESS about police chiefs and fire chiefs) OBSESS about training.training. Why is it an almost dead certainty that Why is it an almost dead certainty that in a random 30-minute interview you are in a random 30-minute interview you are unlikely to hear a CEO touch upon this topic? (unlikely to hear a CEO touch upon this topic? (I I would hazard a would hazard a gguess that most CEOs see IT uess that most CEOs see IT investments as a “strateinvestments as a “strateggic necessitic necessityy,” but see ,” but see trainintrainingg ex exppenses as “a necessarenses as “a necessaryy evil evil.”).”)

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

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

investments as a investments as a “strategic necessity,” but “strategic necessity,” but see training expenses as see training expenses as

“a necessary evil.”“a necessary evil.”

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

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

7. 7. Every individual on the payroll should have Every individual on the payroll should have a benchmarked professional growth strategy.a benchmarked professional growth strategy. Every leader at every level should be evaluated Every leader at every level should be evaluated in no small measure on the collective in no small measure on the collective effectiveness of individual growth strategies—effectiveness of individual growth strategies—that is, each individual’s absolute growth is of that is, each individual’s absolute growth is of direct relevance to every leader’s assessed direct relevance to every leader’s assessed performance. performance.

““Knowledge becomes Knowledge becomes obsolete incredibly fast. obsolete incredibly fast.

The continuing The continuing professional educationprofessional education of adults is the No. 1 of adults is the No. 1

industry in the next 30 industry in the next 30 years.”years.” —Peter Drucker —Peter Drucker

8. 8. Given that we ceaselessly lament the Given that we ceaselessly lament the “leadership deficit,” it is imperative, and just “leadership deficit,” it is imperative, and just plain vanilla common sense, that we maximize plain vanilla common sense, that we maximize the rate of development of women leaders at the rate of development of women leaders at every level—little if anything has a higher every level—little if anything has a higher priority.priority. (It is an outrage that this has not been (It is an outrage that this has not been the case until now—and is still not the case in the case until now—and is still not the case in far too many institutions.) (And, while there far too many institutions.) (And, while there are no guarantees, women are more likely are no guarantees, women are more likely dispositionally to take a shine to the dispositionally to take a shine to the imperative of maximizing human asset imperative of maximizing human asset development.)development.)

9. 9. Maximum utilization of and continued Maximum utilization of and continued development of “older workers” (to age 70—development of “older workers” (to age 70—or even beyond?) is a source of immense or even beyond?) is a source of immense organizational and national growth and organizational and national growth and wealth.wealth. The rapidly aging population, with The rapidly aging population, with oldies far more healthy and vital than ever, oldies far more healthy and vital than ever, Ought to be an opportunity rather than a pain-Ought to be an opportunity rather than a pain-in-the-butt to deal with.in-the-butt to deal with.

10. 10. The practical key to all human asset The practical key to all human asset development activities is the 1st-line development activities is the 1st-line manager.manager. (“Sergeants run the Army” is an (“Sergeants run the Army” is an accurate commonplace. observation—accurate commonplace. observation—supported by development resources.) Hence supported by development resources.) Hence development of the full cadre of 1st-line development of the full cadre of 1st-line managers is an urgent—and invariably managers is an urgent—and invariably underplayed—strategic imperative. Arguably, underplayed—strategic imperative. Arguably, the collective quality and development the collective quality and development trajectory of 1st-line leaders is an trajectory of 1st-line leaders is an organization’s #1 human asset development organization’s #1 human asset development priority. (Consistent with all the above, the priority. (Consistent with all the above, the 1st-line leader’s skill at “people 1st-line leader’s skill at “people development” is her or his top priority—for development” is her or his top priority—for which she or he must be rigorously and which she or he must be rigorously and continually trained.)continually trained.)

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

““Human creativity Human creativity is the ultimate is the ultimate

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

12. 12. Associated with the accelerated priority of Associated with the accelerated priority of the national education infrastructure is a the national education infrastructure is a dramatically enhanced and appreciated and dramatically enhanced and appreciated and compensated role for our teachers—this must compensated role for our teachers—this must necessarily be accompanied by rigorous necessarily be accompanied by rigorous accountability.accountability. There is no doubt that There is no doubt that “teaching” (instilling) insatiable curiosity, say, “teaching” (instilling) insatiable curiosity, say, which is the #1 attribute of a creative person, which is the #1 attribute of a creative person, is no easy task; however, there is no way that is no easy task; however, there is no way that it can be ducked if one looks at future it can be ducked if one looks at future definitions of employability. definitions of employability.

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

an artist.”an artist.” —Picasso —Picasso

13. 13. The great majority of us work in small The great majority of us work in small enterprises; hence national growth enterprises; hence national growth objectives based upon human capital objectives based upon human capital development MUST necessarily extend development MUST necessarily extend “downward” to even 1-person enterprises.“downward” to even 1-person enterprises. Collective productivity improvement through Collective productivity improvement through human capital development among small human capital development among small businesses has an unimaginably large—and businesses has an unimaginably large—and underappreciated—payoff. While many small underappreciated—payoff. While many small business appreciate the notion, they are business appreciate the notion, they are unprepared to take the steps necessary to unprepared to take the steps necessary to engage their, say, dozen employees in engage their, say, dozen employees in seeking productivity improvements.seeking productivity improvements.

14. 14. Needless to say, the activities imagined Needless to say, the activities imagined here will only be possible if abetted by a here will only be possible if abetted by a peerless National Information and peerless National Information and Communication Infrastructure.Communication Infrastructure. Indeed, the Indeed, the work here is being done—and the need is work here is being done—and the need is appreciated and reasonably well funded. The appreciated and reasonably well funded. The effort must not falter; the new information-effort must not falter; the new information-based tools are the coin of the realm.based tools are the coin of the realm.

15. 15. Associated with the above is a RADICAL Associated with the above is a RADICAL reorientation of leadership education and reorientation of leadership education and development—throughout the development—throughout the enterprise/education/continuing education enterprise/education/continuing education infrastructure.infrastructure. (E.g., Among other things, the (E.g., Among other things, the MBA and executive education will require MBA and executive education will require open-heart surgery—aimed at shifting focus open-heart surgery—aimed at shifting focus from finance and marketing to human from finance and marketing to human resource development. ) To deal with the resource development. ) To deal with the most likely future employment scenarios, most likely future employment scenarios, leaders will need to be masters of the liberal leaders will need to be masters of the liberal arts—said arts are, again, the determinant of arts—said arts are, again, the determinant of responding to the emerging world.responding to the emerging world.

MBWMBW

AA

2255

MBWMBWAA

Managing By Wandering Around/Managing By Wandering Around/HPHP

You = You = Your Your

calendarcalendar**

*The calendar *The calendar nevernever lies.lies.

““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

TGRs/ TGRs/ LBTs LBTs

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?”

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.

<TG<TGWWandand … …

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

Little =Little =

BIGBIG

Big carts =Big carts =

1.5X1.5XSource: WalmartSource: Walmart

… … this will be this will be the woman’s the woman’s century …century …

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

Economic Growth Is Economic Growth Is Driven by Driven by

WomenWomen.”.”

Source: Headline, Economist

W W > > 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 confidant that they have a winning the female consumer. And yet many companies do just that—even ones that are confidant that they have a winning

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

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

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)

7/17/133

1/461/46

““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

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)

Lesson45:Lesson45: WTTMSWTTMS

WW

WhoeverWhoeverTriesTriesTheTheMostMostStuffStuffWinsWins

Better yet:Better yet: WTTMTWTTMTTFTFWW

WhoeverWhoeverTriesTriesTheTheMostMostThingsThingsTheTheFastestFastestWinsWins

““Fail.Fail. Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

““You miss You miss

100100%%

of the shots of the shots you never you never

take.”take.” —Wayne—Wayne GretzkyGretzky

WowWow

!!

14,00014,00020,00020,000

3030

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

3030/Craigslist/Craigslist

Kevin Roberts’ CredoKevin Roberts’ Credo

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

10. Avoid moderationAvoid moderation!!