part 1 + 2 tom peters’ re-imagine excellence ! mastery total real estate training/annual education...
TRANSCRIPT
PART 1 + 2PART 1 + 2
Tom Peters’Tom Peters’
Re-ImagineRe-Imagine
EXCELLENCEEXCELLENCE!!MASTERY MASTERY
Total Real Estate Training/Annual Education ConferenceTotal Real Estate Training/Annual Education ConferenceSydney/15-16 July 2014Sydney/15-16 July 2014
Slides at tompeters.comSlides at tompeters.com(Also see our 23-part Master Compendium at excellencenow.com)(Also see our 23-part Master Compendium at excellencenow.com)
BE THE BEST*BE THE BEST*(*INSANELY (*INSANELY
GREAT)GREAT)
BE THE BEST.BE THE BEST. IT’S THE ONLY IT’S THE ONLY MARKET THAT’S MARKET THAT’S NOT CROWDED.NOT CROWDED.
-1/+1-1/+1
S&P 500S&P 500
+1/-1*+1/-1*
*Every …*Every … 22 weeksweeks!!Source: Richard Foster (via Rita McGrath/Source: Richard Foster (via Rita McGrath/HBRHBR/12.26.13/12.26.13
“I am often asked by I am often asked by would-be entrepreneurs would-be entrepreneurs seeking escape from life seeking escape from life within huge corporate within huge corporate structures, structures, ‘How do I build a small firm for myself?’ The answer The answer
seems obviousseems obvious … …
Source: Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics
“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How
do I build a small firm for myself?’ The answer seems
obvious: BuBuyy a ver a veryy larlarggee
one and one and jjust ust waitwait.”.” —Paul Ormerod, Why Most Things
Fail: Evolution, Extinction and Economics
““Mr. Foster and his McKinsey colleagues Mr. Foster and his McKinsey colleagues collected detailed performance data stretching collected detailed performance data stretching
back back 4040 years for years for 1,0001,000 U.S. companies. U.S. companies. TheTheyy found that found that
NONENONE ofof
the lonthe longg-term survivors mana-term survivors managged ed to outto outpperform the market. Worse, erform the market. Worse, the lonthe longger comer comppanies had been in anies had been in
the database, the worse thethe database, the worse theyy did did.”.”
—Financial Times—Financial Times
THETHE RED RED CARPET CARPET STORESTORE
(Joel Resnick/Flemington NJ)(Joel Resnick/Flemington NJ)
1,6001,600 cheesescheeses
1,4001,400 varieties of hot saucevarieties of hot sauce
12,00012,000 wines priced fromwines priced from
$8 to $8,000 a bottle$8 to $8,000 a bottle
6,0006,000 Christmas ornamentsChristmas ornaments
50,00050,000 trims trims
PASSIONPASSION
RETAIL SUPERSTARS: INSIDE THE 25 BEST INDEPENDENT RETAIL SUPERSTARS: INSIDE THE 25 BEST INDEPENDENT STORES IN AMERICASTORES IN AMERICA—George Whalin—George Whalin
JUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OH:JUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OH: ““An adventure in ‘shoppertainment,’ begins in the parking lot and An adventure in ‘shoppertainment,’ begins in the parking lot and
goes on to goes on to 1,6001,600 cheeses and, yes, cheeses and, yes, 1,4001,400
varieties of hot sauce—not to mention 12,000 wines priced from varieties of hot sauce—not to mention 12,000 wines priced from
$8-$$8-$8,0008,000 a bottle; all this is brought to you a bottle; all this is brought to you
by by 4,0004,000 vendors. Customers come from every corner vendors. Customers come from every corner
of the globe.”of the globe.”
BRONNER’S CHRISTMAS WONDERLAND, FRANKENMUTH, MI, BRONNER’S CHRISTMAS WONDERLAND, FRANKENMUTH, MI,
POP 5,000POP 5,000:: 98,000-square-foot “shop” features 98,000-square-foot “shop” features 6,0006,000
Christmas ornaments, Christmas ornaments, 50,00050,000 trims, and anythingtrims, and anything
else you can name pertaining to Christmas.else you can name pertaining to Christmas.
Retail Superstars: Retail Superstars: Inside the 25 Best Inside the 25 Best
Independent StoresIndependent Storesin Americain America —by George Whalin—by George Whalin
Jim’s MowingJim’s MowingJim’s AntennasJim’s Antennas
Jim’s BookkeepingJim’s BookkeepingJim’s Building MaintenanceJim’s Building Maintenance
Jim’s Carpet CleaningJim’s Carpet CleaningJim’s Car CleaningJim’s Car Cleaning
Jim’s Computer ServicesJim’s Computer ServicesJim’s Dog WashJim’s Dog Wash
Jim’s Driving SchoolJim’s Driving SchoolJim’s FencingJim’s FencingJim’s FloorsJim’s Floors
Jim’s PaintingJim’s PaintingJim’s PavingJim’s Paving
Jim’s Pergolas [gazebos]Jim’s Pergolas [gazebos]Jim’s Pool CareJim’s Pool Care
Jim’s Pressure CleaningJim’s Pressure CleaningJim’s RoofingJim’s Roofing
Jim’s Security DoorsJim’s Security DoorsJim’s TreesJim’s Trees
Jim’s Window CleaningJim’s Window CleaningJim’s WindscreensJim’s Windscreens
Etc.*Etc.*
*1982/3,200+ franchises/$300M+/*1982/3,200+ franchises/$300M+/“world’s largest home services franchise business”“world’s largest home services franchise business”/ / Mooroolbark, VictoriaMooroolbark, Victoria
Sources: Jim Penman, What Will They Franchise Next? The Story of Jim’s Group; Management Today; Business Review WeeklyManagement Today; Business Review Weekly; etc.; etc.
The Magicians of The Magicians of MotuekaMotueka (PLUS) (PLUS)!!
W.A. Coppins Ltd.*W.A. Coppins Ltd.*(Coppins Sea Anchors/(Coppins Sea Anchors/PSA/para sea anchors)PSA/para sea anchors)
*Textiles, 1898; thrive on *Textiles, 1898; thrive on “wicked problems”“wicked problems”——e.g., e.g., U.S. NavyU.S. Navy STLVAST (Small To Large Vehicle At Sea STLVAST (Small To Large Vehicle At Sea
Transfer); custom fabric from Transfer); custom fabric from W. WiW. Wiggggins Ltdins Ltd./Wellington ./Wellington
(specialty nylon, “Dyneema,” from (specialty nylon, “Dyneema,” from DSMDSM/Netherlands)/Netherlands)
Going “Social”: Location and Size IndependentGoing “Social”: Location and Size Independent
““Today, despite the fact that we’re jToday, despite the fact that we’re just a little swimminust a little swimmingg ppool comool comppananyy in Vir in Virgginiainia, we have the most trafficked , we have the most trafficked swimming pool website in the world. Five years ago, if swimming pool website in the world. Five years ago, if you’d asked me and my business partners what we do, you’d asked me and my business partners what we do,
the answer would have been simple, ‘We build in-ground the answer would have been simple, ‘We build in-ground
fiberglass swimming pools.’ Now we say,fiberglass swimming pools.’ Now we say, ‘We ‘We are the best teachersare the best teachers … … in the worldin the world … on the … on the subject of fiberglass swimming subject of fiberglass swimming
pools, and we also happen to build pools, and we also happen to build them.’”them.’”
——Jay Baer, YJay Baer, Youtility: Why Smart Marketing Is About Help, Not Hypeoutility: Why Smart Marketing Is About Help, Not Hype
““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
““You do not merely want to be You do not merely want to be
the best of the best.the best of the best. You You want to be want to be
considered the considered the onlonlyy ones who do ones who do what what yyou doou do.” .” —Jerry —Jerry
GarciaGarcia
““INSANELY GREAT”INSANELY GREAT”STEVE JOBSSTEVE JOBS
“RADICALLY THRILLING” “RADICALLY THRILLING” BMW
I love …I love … Middle-Middle-sized Niche- sized Niche- Micro-niche Micro-niche
Dominators!Dominators!
““Own” a niche through EXCELLENCEOwn” a niche through EXCELLENCE!!(Writ large: Germany’s MITTELSTAND)(Writ large: Germany’s MITTELSTAND)
EXECUTIONEXECUTION
Hilton’s Hilton’s Law …Law …
CONRADCONRAD HILTONHILTON, at a gala celebrating, at a gala celebrating his career, was called to the podium and his career, was called to the podium and
asked,asked, “What were the most important
lessons you learned in your long and
distinguished career?” His answer …His answer …
““Remember Remember to tuck the to tuck the
shower curtain shower curtain inside the inside the bathtubbathtub.”.”
““EXECUTION EXECUTION ISIS STRATEGY.”STRATEGY.”
—Fred Malek—Fred Malek
““EXECUTIONEXECUTION IS IS THETHE JOBJOB OF OF
THE BUSINESS THE BUSINESS LEADERLEADER.”.”——Larry BossidyLarry Bossidy & Ram
Charan/ Execution: The Discipline of Getting Things Done
““COSTCO FIGURED OUT COSTCO FIGURED OUT
THE THE BIGBIG,, SIMPLESIMPLE THINGS THINGS
AND AND EXECUTEDEXECUTED WITH TOTAL WITH TOTAL
FANATICISMFANATICISM.”.”
—Charles Munger, Berkshire Hathaway—Charles Munger, Berkshire Hathaway
““In real life, strategyIn real life, strategy is actually very is actually very
straightforward. straightforward. Pick a generalPick a general
direction direction … … andand imimpplementlement
likelike hellhell.”.” —Jack Welch—Jack Welch
““EXECUTIONEXECUTION IS IS THETHE JOBJOB OF OF
THE BUSINESS THE BUSINESS LEADERLEADER.”.”——Larry BossidyLarry Bossidy & Ram
Charan/ Execution: The Discipline of Getting Things Done
ExcellenceExcellence!!
Excellence1982: The Bedrock “EiExcellence1982: The Bedrock “Eigght Basics”ht Basics”
1. A Bias for 1. A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. 3. AutonomAutonomyy and and EntreEntreppreneurshireneurshipp4. Productivity Through 4. Productivity Through PeoPeopplele5. 5. Hands OnHands On, , Value-DrivenValue-Driven6. 6. Stick toStick to the Knitting the Knitting7. 7. SimSimpplele Form, Form, LeanLean Staff Staff8. Simultaneous 8. Simultaneous Loose-TightLoose-Tight PropertiesProperties
““Breakthrough” 82*Breakthrough” 82*
People! People! Customers! Customers!
Action! Action! ValuesValues! !
**In Search of ExcellenceIn Search of Excellence
““Why in the Why in the World did youWorld did you
go to go to SiberiaSiberia?”?”
EnterpriseEnterprise* (*at its best):* (*at its best): An An emotionalemotional, , vitalvital, , innovativeinnovative, , jojoyyfulful, , creativecreative, , entreentreppreneurialreneurial endeavor that elicits endeavor that elicits maximum maximum
concerted humanconcerted human potential in thepotential in the wholehearted pursuit of wholehearted pursuit of EXCELLENCE inEXCELLENCE in serviceservice of others of others.**
**Employees, Customers, Suppliers, Communities, Owners, Temporary partners**Employees, Customers, Suppliers, Communities, Owners, Temporary partners
““It may sound radical, unconventional, and It may sound radical, unconventional, and bordering on being a crazy business idea. bordering on being a crazy business idea.
However—as ridiculous However—as ridiculous as it sounds—joy is the as it sounds—joy is the
core belief of our core belief of our workplace.workplace. Joy is the reason my Joy is the reason my company, Menlo Innovations, a customer company, Menlo Innovations, a customer
software design and development firm in Ann software design and development firm in Ann Arbor, exists. It defines what we do and how Arbor, exists. It defines what we do and how we do it. It is the single shared belief of our we do it. It is the single shared belief of our
entire team.”—entire team.”—Richard Sheridan, Richard Sheridan, Joy, Inc.: How We Built a Workplace People LoveJoy, Inc.: How We Built a Workplace People Love
Hard Hard [numbers, plans][numbers, plans] is Soft.is Soft.Soft Soft [people/relationships][people/relationships] is Hard.is Hard.
““If I could have chosen not to tackle the IBM culture head-If I could have chosen not to tackle the IBM culture head-on,on,
I probably wouldn’t have. My bias coming in was toward I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of changing the attitude and behaviors of hundreds of
thousands of people is very, very hard.thousands of people is very, very hard. Yet I Yet I came to see in my time at came to see in my time at IBM that IBM that cultureculture isn’t just isn’t just
one aspect of the gameone aspect of the game——IT IS THE IT IS THE GGAMEAME.”.”
——Lou Gerstner, Lou Gerstner, Who Says Elephants Can’t DanceWho Says Elephants Can’t Dance
ORGANIZATIONS ORGANIZATIONS EXISTEXIST TO TO SERVESERVE. .
PERIOD.PERIOD.
LEADERS LEADERS LIVELIVE TO TO SERVESERVE. PERIOD.. PERIOD.
LEADERSHIPLEADERSHIP
Les Wexner:Les Wexner: FROM FROM FASHION TRENDS FASHION TRENDS GURU TO PICKING GURU TO PICKING AND DEVELOPING AND DEVELOPING
PEOPLE!*PEOPLE!**Limited Brands founder Les Wexner queried on astounding longterm success:*Limited Brands founder Les Wexner queried on astounding longterm success:
It happened because “I got as excited about developing people”It happened because “I got as excited about developing people” as he had been about predicting fashion trends in his early years.as he had been about predicting fashion trends in his early years.
((PARC’s Bob Taylor: “CONNOISSEUR OF TALENT”“CONNOISSEUR OF TALENT” ) )
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
Leadership By the NumbersLeadership By the Numbers
25/50/5/4/125/50/5/4/1
2525Source: Howard SchultzSource: Howard Schultz
““I’m always stopping by our I’m always stopping by our
stores— stores— at least at least 2525
a weeka week.. I’m also in other I’m also in other
places: Home Depot, Whole Foods, Crate places: Home Depot, Whole Foods, Crate & Barrel. I try to be& Barrel. I try to be
a sponge to pick up as much a sponge to pick up as much as I can.”as I can.” —Howard Schultz—Howard Schultz
Source: Source: FortuneFortune, “Secrets of Greatness”, “Secrets of Greatness”
MBWAMBWA
MManaginganaging
BBy y
WWanderingandering
AAroundround
5050Source: Dov FrohmanSource: Dov Frohman
““Most managers spend a great deal of time thinking about what they plan to do, but relatively little time thinking about Most managers spend a great deal of time thinking about what they plan to do, but relatively little time thinking about what they plan not to do. As a result, they become so caught up … in fighting the fires of the moment that they cannot what they plan not to do. As a result, they become so caught up … in fighting the fires of the moment that they cannot
really attend to the long-term threats and risks facing the organization. So the first soft skill of leadership the hard way is really attend to the long-term threats and risks facing the organization. So the first soft skill of leadership the hard way is
to cultivate the perspective of Marcus Aurelius: avoid busyness, free up your time, stay focused on what really matters.to cultivate the perspective of Marcus Aurelius: avoid busyness, free up your time, stay focused on what really matters.
Let me put it bluntly: every leader Let me put it bluntly: every leader should routinely keep a substantial should routinely keep a substantial
portion of his or her time—I would say portion of his or her time—I would say
as much asas much as 5050 percent—percent—
unscheduledunscheduled.. … Only when you have substantial ‘slop’ in your schedule—unscheduled time—will … Only when you have substantial ‘slop’ in your schedule—unscheduled time—will
you have the space to reflect on what you are doing, learn from experience, and recover from your inevitable mistakes. you have the space to reflect on what you are doing, learn from experience, and recover from your inevitable mistakes. Leaders without such free time end up tackling issues only when there is an immediate or visible problem. Managers’ Leaders without such free time end up tackling issues only when there is an immediate or visible problem. Managers’
typical response to my argument about free time is, ‘That’s all well and good, but there are things I have to do.’typical response to my argument about free time is, ‘That’s all well and good, but there are things I have to do.’ Yet Yet we waste so much time in unwe waste so much time in unpproductive activitroductive activity—y—it takes an it takes an
enormous effort on the enormous effort on the ppart of the leader to keeart of the leader to keepp free time for the free time for the trultrulyy im impportant thinortant thinggss.”.”
——Dov FrohmanDov Frohman (& Robert Howard (& Robert Howard), Leadership The Hard Way: Why Leadership Can’t Be Taught—), Leadership The Hard Way: Why Leadership Can’t Be Taught—
And How You Can Learn It Anyway And How You Can Learn It Anyway (Chapter 5, “The Soft Skills Of Hard Leadership”)(Chapter 5, “The Soft Skills Of Hard Leadership”)
EXCELLENCE is EXCELLENCE is notnot a “long- a “long-term” "aspiration.”term” "aspiration.”
EXCELLENCE is the ultimate EXCELLENCE is the ultimate short-term strategy. short-term strategy.
EXCELLENCE is … THEEXCELLENCE is … THE
NEXTNEXT 55 MINUTESMINUTES..**
(*Or NOT.)(*Or NOT.)
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.EXCELLENCE is your next meeting.EXCELLENCE is your next meeting.Or not.EXCELLENCE is shutting up and listening—really listening.EXCELLENCE is shutting up and listening—really listening.Or not.EXCELLENCE is your next customer contact.EXCELLENCE is your next customer contact.Or not.EXCELLENCE is saying “Thank you” for something “small.”EXCELLENCE is saying “Thank you” for something “small.”Or not.EXCELLENCE is the next time you shoulder responsibility and apologize.EXCELLENCE is the next time you shoulder responsibility and apologize.Or not.EXCELLENCE is waaay over-reacting to a screw-up.EXCELLENCE is waaay over-reacting to a screw-up.Or not.EXCELLENCE is the flowers you brought to work today.EXCELLENCE is the flowers you brought to work today.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.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.EXCELLENCE is waaay “over”-preparing for a 3-minute presentation.EXCELLENCE is waaay “over”-preparing for a 3-minute presentation.Or not.EXCELLENCE is turning “insignificant” tasks into models of … EXCELLENCE. EXCELLENCE is turning “insignificant” tasks into models of … EXCELLENCE. Or not.
““The The 44 most most
important important wordswords in any in any
organization are …organization are …
THE FOUR MOST IMPORTANT WORDS IN ANY ORGANIZATIONTHE FOUR MOST IMPORTANT WORDS IN ANY ORGANIZATION
ARE …ARE … “WHAT “WHAT DO DO YOUYOU THINK?”THINK?”
Source: courtesy Dave Wheeler, posted at tompeters.com Source: courtesy Dave Wheeler, posted at tompeters.com
““Employees who Employees who don't feel significant don't feel significant
rarely make rarely make significant significant
contributions.”contributions.” —Mark Sanborn—Mark Sanborn
““If there is any If there is any ONEONE ‘secret’ ‘secret’
to effectiveness, it is concentration. to effectiveness, it is concentration. Effective executives do first things first Effective executives do first things first
… … and they do and they do
ONEONE thing at a thing at a time.”time.” —Peter Drucker—Peter Drucker
You You == Your Your calendar/calendar/
Your calendar Your calendar NEVERNEVER lies. lies.
You = Your You = Your calendarcalendar**
*The calendar *The calendar NEVERNEVER lies.lies.
““Dennis, you need a …Dennis, you need a …
‘To-don’t’‘To-don’t’
List !”List !”
““If there is any If there is any oneone ‘secret’ to effectiveness, it is ‘secret’ to effectiveness, it is
concentration. Effective executives concentration. Effective executives
do first things first … do first things first … and and thetheyy do do
oneone thinthingg at a at a timetime.”.” —Peter Drucker—Peter Drucker
Meeting PowerMeeting Power!!
Bitch all you Bitch all you want, but want, but meetinmeetinggss
are what you are what you (boss/leader)(boss/leader) dodo!!
Meetings are Meetings are #1#1 thing thing
bosses bosses dodo. Therefore, . Therefore, 100%100%
of those meetings:of those meetings: EXCELLENCE. EXCELLENCE. ENTHUSIASM. ENTHUSIASM. ENGAGEMENT. ENGAGEMENT.
LEARNING. TEMPO. LEARNING. TEMPO. WORK-OF-ARTWORK-OF-ART.. DAMNDAMN ITIT..
#1#1 CEOCEO Failing?Failing?
““If I had toIf I had to pick one failing pick one failing
of CEOs, it’sof CEOs, it’s that …that …
——Co-founder of one of the largest investment services firms in the USA/worldCo-founder of one of the largest investment services firms in the USA/world
“If I had to pick one failing of
CEOs, it’s that … they don’t read enough.”
“In my whole life, I have known no In my whole life, I have known no wise people (over a broad subject wise people (over a broad subject matter area) who didn’t read all matter area) who didn’t read all
the time—none. the time—none.
Zero. You’d be You’d be
amazed at how much Warren amazed at how much Warren [Buffett] reads—and how much I [Buffett] reads—and how much I
read.” read.” —Charlie Munger (Berkshire Hathaway)—Charlie Munger (Berkshire Hathaway)
Leadership By the NumbersLeadership By the Numbers
18/9518/95
““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 Communication.Communication.* * (*Which is in turn Attribute #1 of (*Which is in turn Attribute #1 of organization effectiveness.)organization effectiveness.)
[cont.][cont.]
Best Listeners Win …Best Listeners Win …
““IF YOU DON’T IF YOU DON’T LISTEN, YOU LISTEN, YOU DON’T SELL DON’T SELL ANYTHING.”ANYTHING.”
——Carolyn MarlandCarolyn Marland
*8 of 10 sales presentations fail*8 of 10 sales presentations fail
*50% failed sales *50% failed sales
presentations … presentations … talkingtalking “at” before “at” before listening! listening!—Susan Scott, “Let Silence Do the Heavy Lifting,” chapter title, —Susan Scott, “Let Silence Do the Heavy Lifting,” chapter title, Fierce Conversations: Achieving Success at Work and in Life,Fierce Conversations: Achieving Success at Work and in Life,One Conversation at a TimeOne Conversation at a Time
““EverEveryyoneone has a has a story to tell, if only story to tell, if only
you have the you have the patience to wait for patience to wait for it and not get in the it and not get in the
way of it.”way of it.”—Charles McCarry,—Charles McCarry,
Christopher’s GhostsChristopher’s Ghosts
““We live with a value system that I call the Extrovert Ideal—the omnipresent We live with a value system that I call the Extrovert Ideal—the omnipresent belief that the ideal self is gregarious, alpha, and comfortable in the spotlight. belief that the ideal self is gregarious, alpha, and comfortable in the spotlight. The archetypal extrovert prefers action to contemplation, risk-taking to heed-The archetypal extrovert prefers action to contemplation, risk-taking to heed-taking, certainty to doubt. … We think that we value individuality, but all too taking, certainty to doubt. … We think that we value individuality, but all too often we admire one type of individual … Introversion is now a second-class often we admire one type of individual … Introversion is now a second-class
personality trait. … personality trait. … The Extrovert Ideal has been The Extrovert Ideal has been documented in many studies. Talkative documented in many studies. Talkative
people, for example, are rated as smarter, people, for example, are rated as smarter, better looking, more interesting, and more better looking, more interesting, and more
desirable as friends. Velocity of speech counts desirable as friends. Velocity of speech counts as well as volume: We rank fast talkers as as well as volume: We rank fast talkers as
more competent and likeable than slow ones. more competent and likeable than slow ones. But we make a grave mistake to embrace the But we make a grave mistake to embrace the
Extrovert Ideal so unthinkingly.Extrovert Ideal so unthinkingly. … As the science … As the science journalist Winifred Gallagher writes, ‘The glory of the disposition that stops to journalist Winifred Gallagher writes, ‘The glory of the disposition that stops to consider stimuli rather than rushing to engage with them is its long association consider stimuli rather than rushing to engage with them is its long association with intellectual and artistic achievement. Neither E = mc squared or Paradise with intellectual and artistic achievement. Neither E = mc squared or Paradise
Lost was dashed off by a party animal.’ Even in less obviously introverted Lost was dashed off by a party animal.’ Even in less obviously introverted occupations, like finance, politics, and activism, some of the greatest leaps occupations, like finance, politics, and activism, some of the greatest leaps forward were made by introverts … figures like Eleanor Roosevelt, Warren forward were made by introverts … figures like Eleanor Roosevelt, Warren
Buffett and Gandhi achieved what they did not in spite of but because of their Buffett and Gandhi achieved what they did not in spite of but because of their introversion.”introversion.”
— —Susan Cain, Susan Cain, Quiet: The Power of Introverts in a World That Can’t Stop TalkingQuiet: The Power of Introverts in a World That Can’t Stop Talking
““Among the most effective leaders I have Among the most effective leaders I have encountered and worked with in half a century, encountered and worked with in half a century, some have locked themselves into their offices some have locked themselves into their offices and others were ultra-gregarious. Some were and others were ultra-gregarious. Some were
quick and impulsive, some studied the situation quick and impulsive, some studied the situation
and took forever to come to a decision. and took forever to come to a decision. The The one and only personality trait the one and only personality trait the effective ones did have in common effective ones did have in common was something they did was something they did notnot have: have:
They had little or no ‘charisma,’ and They had little or no ‘charisma,’ and little use for the term.”little use for the term.” —Peter Drucker —Peter Drucker
95%95%
Suggested Suggested Core Value Core Value #1:#1: “We are Effective “We are Effective
Listeners—we treat Listening Listeners—we treat Listening EXCELLENCEEXCELLENCE as the as the Centerpiece of our Centerpiece of our
Commitment to Respect and Commitment to Respect and Engagement and Community Engagement and Community
and Growth.”and Growth.”
““I always writeI always write ‘LISTEN’‘LISTEN’ on on the back of my hand the back of my hand before a meeting.”before a meeting.”
Source: Tweet viewed @tom_petersSource: Tweet viewed @tom_peters
LISTEN = “PROFESSION” =
STUDY = PRACTICE = EVALUATION =
ENTERPRISE VALUE
33
““I regardI regard aappoloologgizinizing g as the as the most magical, healing, most magical, healing,
restorative gesture human restorative gesture human beings can make. It is thebeings can make. It is the
centercenterppieceiece of my of my work with executives who work with executives who
want to get better.”want to get better.”
——Marshall GoldsmithMarshall Goldsmith, What Got You Here Won’t Get You There: , What Got You Here Won’t Get You There: How Successful People Become Even More Successful. How Successful People Become Even More Successful.
Relationships (of all varieties): THERE ONCE THERE ONCE WAS A TIME WHEN A WAS A TIME WHEN A
THREETHREE--MINUTEMINUTE PHONEPHONE CALLCALL WOULD WOULD
HAVE AVOIDED SETTING OFF THE HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RESULTED IN A COMPLETE
RUPTURE.RUPTURE.**
*divorce, loss of a BILLION $$$ aircraft sale, etc., etc.*divorce, loss of a BILLION $$$ aircraft sale, etc., etc.
THE PROBLEM IS THE PROBLEM IS RARELY/RARELY/NEVERNEVER THE THE
PROBLEM. THEPROBLEM. THE
RESPONSERESPONSE TO THE TO THE PROBLEM INVARIABLY PROBLEM INVARIABLY ENDS UP BEING THE ENDS UP BEING THE
REAL PROBLEMREAL PROBLEM.***PERCEPTION IS ALL THERE IS!PERCEPTION IS ALL THERE IS!
##11
PEOPLEPEOPLEPEOPLEPEOPLE
PEOPLEPEOPLE PEOPLEPEOPLE
PEOPLEPEOPLE
REMEMBER:REMEMBER: You You CHOSECHOSE to to be a boss/leader. be a boss/leader.
Hence youHence you CHOSE CHOSE to to devote the rest of devote the rest of your professional your professional
career tocareer to DEVELOPINGDEVELOPING
PEOPLEPEOPLE..
PeoplePeoplePeoplePeople
PeoplePeople PeoplePeople
PeoplePeople
““Business has to Business has to give people give people enriching, enriching,
rewarding lives …rewarding lives …
1/4,096: excellencenow.com1/4,096: excellencenow.com
““Business has to give people enriching, Business has to give people enriching,
rewarding lives … rewarding lives … or it's or it's simsimppllyy not not
worth worth doindoing.”g.”
——Richard BransonRichard Branson
““In a world where customers wake up In a world where customers wake up every morning asking, ‘What’s new, every morning asking, ‘What’s new, what’s different, what’s amazing?’ what’s different, what’s amazing?’
success desuccess deppends on a ends on a comcomppananyy’s abilit’s abilityy to unleash to unleash initiative, imainitiative, imaggination and ination and ppassion of emassion of empploloyyees at all ees at all levelslevels—and this can only happen if all —and this can only happen if all those folks are connected heart and soul those folks are connected heart and soul
to their work [their ‘calling’], their to their work [their ‘calling’], their company and their mission.”company and their mission.” —John Mackey and —John Mackey and
Raj Sisoda,Raj Sisoda, Conscious Capitalism: Conscious Capitalism: Liberating the Heroic Spirit of BusinessLiberating the Heroic Spirit of Business
““The greatest satisfaction for management has come not from the The greatest satisfaction for management has come not from the financial growth of Camellia itself, but rather from having financial growth of Camellia itself, but rather from having
participated in the vast improvement in the living and working participated in the vast improvement in the living and working conditions of its employees, resulting from the investment of many conditions of its employees, resulting from the investment of many
tens of millions of pounds into the tea gardens’ infrastructure of tens of millions of pounds into the tea gardens’ infrastructure of roads, factories, hospitals, employees’ housing and amenities. … roads, factories, hospitals, employees’ housing and amenities. …
Within the Camellia Group there is a strong aesthetic dimension, an Within the Camellia Group there is a strong aesthetic dimension, an intention that it should comprise companies and assets of the intention that it should comprise companies and assets of the
highest quality, operating from inspiring offices and manufacturing highest quality, operating from inspiring offices and manufacturing in state of thein state of the
art facilities. art facilities. … … Above all, there is a deeAbove all, there is a deepp concern for the welfare of each concern for the welfare of each
emempploloyyee. This arises not onlee. This arises not onlyy from from a sense of humanita sense of humanity,y, but also from but also from the conviction that the lothe conviction that the loyyaltaltyy of a of a secure and enthusiastic emsecure and enthusiastic empploloyyeeee
will in the lon will in the longg-term -term pprove to be an rove to be an invaluable cominvaluable comppany assetany asset.”.”
——CamelliaCamellia: A Very Different Company: A Very Different Company [$600M/$160M/$100M][$600M/$160M/$100M]
““You have to You have to treat your treat your
employees like employees like customers.”customers.” —Herb —Herb
Kelleher, upon being asked his “secret to success”Kelleher, upon being asked his “secret to success”
Source: Joe Nocera, Source: Joe Nocera, NYTNYT, “Parting Words of an Airline Pioneer,” , “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at on the occasion of Herb Kelleher’s retirement after 37 years at
Southwest Airlines Southwest Airlines (SWA’s pilots union took out a full-page ad in (SWA’s pilots union took out a full-page ad in USA USA TodayToday
thanking HK for all he had done) thanking HK for all he had done) ; across the way in Dallas, American ; across the way in Dallas, American Airlines’ pilots were Airlines’ pilots were picketingpicketing AA’s Annual Meeting)AA’s Annual Meeting)
““If you want staff to If you want staff to give great service, give great service, give great service to give great service to staff.”staff.” —Ari Weinzweig, Zingerman’s
EXCELLENT EXCELLENT customer experiencecustomer experiencedepends … depends … entirely …entirely …
onon EXCELLENT EXCELLENT employee experience!employee experience!
If you want to WOW your If you want to WOW your
customers, customers, FIRSTFIRST you you must WOW those whomust WOW those who WOW the customers!WOW the customers!
Oath of Office:Oath of Office: Managers/Servant Leaders Managers/Servant Leaders
Our goal is to serve our customers brilliantly and profitably overOur goal is to serve our customers brilliantly and profitably over the long haul.the long haul.Serving our customers brilliantly and profitably over the longServing our customers brilliantly and profitably over the long haul is a product of brilliantly serving, over the long haul, thehaul is a product of brilliantly serving, over the long haul, the people who serve the customer.people who serve the customer.
Hence, our job as leaders—the alpha and the omega andHence, our job as leaders—the alpha and the omega and everything in between—is abetting the sustained everything in between—is abetting the sustained growthgrowth and success and engagement and enthusiasm andand success and engagement and enthusiasm and commitment to Excellence of those, one at a time, commitment to Excellence of those, one at a time, whowho directly or indirectly serve the ultimate customer.directly or indirectly serve the ultimate customer.
We—leaders of every stripe—are in the “Human Growth andWe—leaders of every stripe—are in the “Human Growth and Development and Success and Aspiration to ExcellenceDevelopment and Success and Aspiration to Excellence business.”business.”““We” We” (leaders)(leaders) only grow when “they” only grow when “they” (each and every one of our colleagues)(each and every one of our colleagues) are are growing.growing.““We” We” (leaders)(leaders) only succeed when “they” only succeed when “they” (each and every one of our colleagues)(each and every one of our colleagues)
are succeeding.are succeeding.““We” We” (leaders)(leaders) only energetically march toward Excellence when only energetically march toward Excellence when “ “they” they” (each and every one of our colleagues)(each and every one of our colleagues) are energetically marching are energetically marching toward Excellence.toward Excellence.Period.Period.
““We are a We are a
‘‘LifeLife SuccessSuccess’’ Company.”Company.”
Dave Liniger, founder, RE/MAX
““The organization would The organization would ultimately win not ultimately win not
because it gave agents because it gave agents more money, more money, but but
because it because it ggave themave them a chance for better a chance for better
liveslives.”.” —Phil Harkins & Keith Hollihan, —Phil Harkins & Keith Hollihan,
Everybody Wins Everybody Wins (the story of (the story of RE/MAXRE/MAX))
““The role of the Director is to The role of the Director is to create a space where the create a space where the
actors and actresses canactors and actresses can become more than become more than thetheyy’ve ever been ’ve ever been
before,before, more than themore than they’y’ve ve dreamed of beindreamed of being.”g.”
——Robert Altman, Oscar acceptance speechRobert Altman, Oscar acceptance speech
““The leaders of Great The leaders of Great
Groups … Groups … lovelove talenttalent … and know … and know
where to find it. They … where to find it. They …
revelrevel inin …… the the talent of talent of others.”others.”
—Warren Bennis & Patricia Ward Biederman, —Warren Bennis & Patricia Ward Biederman, Organizing GeniusOrganizing Genius
Brand Brand = =
Talent.Talent.
Our Mission
TO DEVELOP AND MANAGE TALENT;TO DEVELOP AND MANAGE TALENT;TO APPLY THAT TALENT,TO APPLY THAT TALENT,
THROUGHOUT THE WORLD, THROUGHOUT THE WORLD, FOR THE BENEFIT OF CLIENTS;FOR THE BENEFIT OF CLIENTS;TO DO SO IN PARTNERSHIP; TO DO SO IN PARTNERSHIP;
TO DO SO WITH PROFIT.TO DO SO WITH PROFIT.
WPP
11stst-Line Bosses -Line Bosses (Cadre of) = (Cadre of) =
Productivity Asset Productivity Asset
#1#1!!
If the regimental commander lost most of his If the regimental commander lost most of his 2nd lieutenants and 1st lieutenants and 2nd lieutenants and 1st lieutenants and
captains and majors, it would be a tragedy. captains and majors, it would be a tragedy.
If he lost his If he lost his serserggeants it would eants it would be a catastrobe a catastropphehe. . The The
Army and the Navy are fully aware that Army and the Navy are fully aware that success on the battlefield is dependent to an success on the battlefield is dependent to an extraordinary degree on its Sergeants and extraordinary degree on its Sergeants and Chief Petty Officers. Does industry have the Chief Petty Officers. Does industry have the
same awareness?same awareness?
““People People leave leave
manamanaggersers not not companies.”companies.”
——Dave WheelerDave Wheeler
Is there Is there ONEONE “secret” “secret” to productivity and to productivity and
employee satisfaction?employee satisfaction?
YESYES!!
The Quality of your The Quality of your FULLFULL CADRECADRE of … of …1st-line Leaders.1st-line Leaders.
Hiring*Hiring**Deconstructing leadership*Deconstructing leadership
““Development can help great Development can help great
people be even people be even better— better— but if but if I had a dollar to spend, I’d I had a dollar to spend, I’d
spendspend 7070 cents cents getting the right person getting the right person
in the door.”in the door.” ——Paul Russell, Director, Leadership and Paul Russell, Director, Leadership and
Development, GoogleDevelopment, Google
““In short, hiring is In short, hiring is the the most immost impportant ortant
asasppect of businessect of business
and yet remainsand yet remains woefully woefully misunderstoodmisunderstood..””
Source: Source: Wall Street JournalWall Street Journal, 10.29.08,, 10.29.08,
review of review of Who: The A Method for Hiring, Who: The A Method for Hiring, Geoff Smart and Randy StreetGeoff Smart and Randy Street
PARC’s Bob Taylor:
“CONNOISSEUR “CONNOISSEUR OF TALENT”OF TALENT”
"When I hire "When I hire someone, that's someone, that's
when when I I ggo to o to work for work for
themthem.”.” —John DiJulius,—John DiJulius, "What's the Secret to "What's the Secret to
Providing a World-class Customer Experience"Providing a World-class Customer Experience"
QuietQuiet
““We live with a value system that I call the Extrovert Ideal—the We live with a value system that I call the Extrovert Ideal—the omnipresent belief that the ideal self is gregarious, alpha, and omnipresent belief that the ideal self is gregarious, alpha, and
comfortable in the spotlight. The archetypal extrovert prefers action comfortable in the spotlight. The archetypal extrovert prefers action to contemplation, risk-taking to heed-taking, certainty to doubt. … We to contemplation, risk-taking to heed-taking, certainty to doubt. … We think that we value individuality, but all too often we admire one type think that we value individuality, but all too often we admire one type of individual … Introversion is now a second-class personality trait. … of individual … Introversion is now a second-class personality trait. …
The Extrovert Ideal has been documented in many The Extrovert Ideal has been documented in many studies. Talkative people, for example, are rated as studies. Talkative people, for example, are rated as smarter, better looking, more interesting, and more smarter, better looking, more interesting, and more
desirable as friends. Velocity of speech counts as well desirable as friends. Velocity of speech counts as well as volume: We rank fast talkers as more competent and as volume: We rank fast talkers as more competent and likeable than slow ones. But we make a grave mistake likeable than slow ones. But we make a grave mistake to embrace the Extrovert Ideal so unthinkingly.to embrace the Extrovert Ideal so unthinkingly. … As the … As the
science journalist Winifred Gallagher writes, ‘The glory of the science journalist Winifred Gallagher writes, ‘The glory of the disposition that stops to consider stimuli rather than rushing to disposition that stops to consider stimuli rather than rushing to
engage with them is its long association with intellectual and artistic engage with them is its long association with intellectual and artistic achievement. Neither E = mc squared or Paradise Lost was dashed off achievement. Neither E = mc squared or Paradise Lost was dashed off by a party animal.’ Even in less obviously introverted occupations, like by a party animal.’ Even in less obviously introverted occupations, like
finance, politics, and activism, some of the greatest leaps forward finance, politics, and activism, some of the greatest leaps forward were made by introverts … figures like Eleanor Roosevelt, Warren were made by introverts … figures like Eleanor Roosevelt, Warren
Buffett and Gandhi achieved what they did not in spite of but because Buffett and Gandhi achieved what they did not in spite of but because of their introversion.”of their introversion.” — —Susan Cain, Susan Cain,
Quiet: The Power of Introverts in a World That Can’t Stop TalkingQuiet: The Power of Introverts in a World That Can’t Stop Talking
““Among the most effective leaders I have Among the most effective leaders I have encountered and worked with in half a century, encountered and worked with in half a century, some have locked themselves into their offices some have locked themselves into their offices and others were ultra-gregarious. Some were and others were ultra-gregarious. Some were
quick and impulsive, some studied the situation quick and impulsive, some studied the situation
and took forever to come to a decision. and took forever to come to a decision. The The one and only personality trait the one and only personality trait the effective ones did have in common effective ones did have in common was something they did was something they did notnot have: have:
They had little or no ‘charisma,’ and They had little or no ‘charisma,’ and little use for the term.”little use for the term.” —Peter Drucker, in —Peter Drucker, in Susan Cain, Susan Cain,
Quiet: The Power of Introverts in a World That Can’t Stop TalkingQuiet: The Power of Introverts in a World That Can’t Stop Talking
2/Year = 2/Year = LegacyLegacy
Promotion DecisionsPromotion Decisions
“life and “life and death death
decisions”decisions”Source: Peter Drucker, Source: Peter Drucker, The Practice of ManagementThe Practice of Management
EvaluationEvaluation
EVALUATING EVALUATING
PEOPLE = PEOPLE = #1#1
DIFFERENTIATORDIFFERENTIATORSource: Jack Welch, now Jeff Immelt onSource: Jack Welch, now Jeff Immelt on
GE’s top strategic skill ( GE’s top strategic skill (!!!!!!!!))
SelfSelf--EvaluationEvaluation
““To develop To develop others, start others, start
with with yyourselfourself.”.”
—Marshall Goldsmith—Marshall Goldsmith
““How can a high-level leader like _____ How can a high-level leader like _____ be so out of touch with the truth about be so out of touch with the truth about
himself? It’s more common than you himself? It’s more common than you
would imagine. would imagine. In fact, the higher up the ladder a leader climbs, the less
accurate his self-assessment is likely to be.
The problem is an acute lack of The problem is an acute lack of feedback [especially on people issues].”feedback [especially on people issues].”
—Daniel Goleman (et al.), —Daniel Goleman (et al.), The New LeadersThe New Leaders
““Being aware of yourself Being aware of yourself and how you affect and how you affect
everyone around you is everyone around you is what what distindistingguishesuishes a a
superior leader.”superior leader.” —Edie Seashore —Edie Seashore
“To develop others, start “To develop others, start with with yyourselfourself.”.”
—Marshall Goldsmith—Marshall Goldsmith
““Everyone thinks Everyone thinks of changing the of changing the
world, but no one world, but no one thinks of thinks of changing changing
himself.”himself.”—Leo Tolstoy—Leo Tolstoy
Training = Training = InvestmentInvestment
#1#1!!
In the Army, In the Army, 33--star star ggeneralsenerals worry about worry about
training. In most training. In most businesses, it's a businesses, it's a
“ho-hum” mid-level “ho-hum” mid-level staff function.staff function.
Why is intensive-Why is intensive-extensive training extensive training
obvious for the army & obvious for the army & navy & sports teams & navy & sports teams & performing arts groupsperforming arts groups
—but —but not for the for the
average business?average business?
Is your CTO/Chief Training Officer your top paid “C-level” Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?job (other than CEO/COO)?If not, why not?If not, why not?
Are your top trainers paid as much as your top Are your top trainers paid as much as your top marketers and engineers?marketers and engineers?If not, why not?If not, why not?
Are your training courses so good they make you giggle Are your training courses so good they make you giggle and tingle?and tingle?If not, why not?If not, why not?
Randomly stop an employee in the hall: Can she/he Randomly stop an employee in the hall: Can she/he meticulously describe her/his development plan for the meticulously describe her/his development plan for the next 12 months?next 12 months?If not, why not?If not, why not?
Why is your world of business any different than the Why is your world of business any different than the (competitive) world of rugby, football, opera, theater, (competitive) world of rugby, football, opera, theater, the military?the military?If “people/talent first” and hyper-intense continuous training are If “people/talent first” and hyper-intense continuous training are laughably obviously for them, why not you? laughably obviously for them, why not you?
Gamblin’ ManGamblin’ Man
Bet:Bet: >> 5 of 10 CEOs see training >> 5 of 10 CEOs see training as expense rather than as expense rather than investment.investment.Bet:Bet: >> 5 of 10 CEOs see training >> 5 of 10 CEOs see training as defense rather than offense.as defense rather than offense.Bet:Bet: >> 5 of 10 CEOs see training >> 5 of 10 CEOs see training as “necessary evil” rather than as “necessary evil” rather than “strategic opportunity.”“strategic opportunity.”Bet:Bet: >> 8 of 10 CEOs, in 45-min >> 8 of 10 CEOs, in 45-min “tour d’horizon” of their “tour d’horizon” of their business, would not mention business, would not mention training.training.
Addenda: Addenda: The Mauritius DoctrineThe Mauritius Doctrine
On 16 April 2014, I spoke to 1,300 SME chiefs in Mauritius at a conference On 16 April 2014, I spoke to 1,300 SME chiefs in Mauritius at a conference organized by The National Productivity and Competitiveness Council, and organized by The National Productivity and Competitiveness Council, and
that included the Vice Prime Minister. I upped the stridency of my tone relativethat included the Vice Prime Minister. I upped the stridency of my tone relative not not to government actions—but relative to business’ obligation to develop itsto government actions—but relative to business’ obligation to develop its
work force. Moreover, I asserted this was as true for a 6-person businesswork force. Moreover, I asserted this was as true for a 6-person business as for a 6,000-person outfit. Yes … wee companies can (and ought) as for a 6,000-person outfit. Yes … wee companies can (and ought)
become “training/development maniacs.” become “training/development maniacs.”
Honing my new/uncompromising message:Honing my new/uncompromising message: Especially in uncertain Especially in uncertain times which are sapping global employment security, it times which are sapping global employment security, it is the … is the … foremostforemost moralmoral resrespponsibilitonsibility … of businesses y … of businesses
to abet the radical development of their employees.to abet the radical development of their employees.
National productivity improvement is less about a few giants than National productivity improvement is less about a few giants than about incremental efforts by the great mass of small businesses.about incremental efforts by the great mass of small businesses.
My training (& development) message in general is extreme. My training (& development) message in general is extreme.
But the truly radical notion is that But the truly radical notion is that “training & development maniacs” “training & development maniacs”
applies to the 5-person enterprise as applies to the 5-person enterprise as much as it does to the giant.much as it does to the giant.
Skill Skill DevelopmentDevelopment
(Doesn’t Grow on Trees)(Doesn’t Grow on Trees)
6/2/36/2/3**
*It takes Jerry Seinfeld *It takes Jerry Seinfeld SIX SIX MONTHSMONTHS to develop to develop
TWO TWO oror THREE THREE MINUTESMINUTES of new material of new material (Documentary: (Documentary: ComedianComedian))
THE MORAL THE MORAL IMPERATIVEIMPERATIVE
CORPORATE MANDATE #1 2014:CORPORATE MANDATE #1 2014: Your Your principal moral obligation as a principal moral obligation as a
leader is to develop the skillset, leader is to develop the skillset, “soft” and “hard,” of every one “soft” and “hard,” of every one
of the people in your charge of the people in your charge (temporary as well as semi-(temporary as well as semi-permanent) to the maximum permanent) to the maximum
extent of your abilities. The good extent of your abilities. The good news: news: This is also theThis is also the
#1 mid- to lon#1 mid- to longg-term-term … … p profit maximization straterofit maximization strategy!gy!
““To be an effective To be an effective leader, you have toleader, you have to
firstfirst have a desire have a desire
and a commitment to and a commitment to helping people.”helping people.”
——Harry Rhoads, Co-founder and CEO,Harry Rhoads, Co-founder and CEO, Washington Speakers Bureau Washington Speakers Bureau
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.”
Joe J. Jones Joe J. Jones 1943 – 2013 1943 – 2013
Net WorthNet Worth
$21,543,672.48$21,543,672.48
Not.
CRAZY TIMESCRAZY TIMES
1,000,0001,000,000
GGeneticsenetics
RRoboticsobotics
IInformaticsnformatics
NNanotechnologyanotechnology
1/721: “The greatest “The greatest shortcoming of the shortcoming of the human race is our human race is our
inability to inability to understand the understand the
exponential exponential function.” function.” —Albert A. Bartlett—Albert A. Bartlett
China/Foxconn:China/Foxconn:
1,000,001,000,0000 robots/next 3 robots/next 3
yearsyears
Source:Source: Race AGAINST the Machine, Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfeeErik Brynjolfsson and Andrew McAfee
““Automation has become so Automation has become so sophisticated that on a typical sophisticated that on a typical passenger flight, a human pilot passenger flight, a human pilot
holds the controls for a grand total holds the controls for a grand total
of …of …33 minutesminutes. .
[Pilots] have become, it’s not much [Pilots] have become, it’s not much of an exaggeration to say, computer of an exaggeration to say, computer
operators.”operators.” Source: Nicholas Carr, “The Great Forgetting,” Source: Nicholas Carr, “The Great Forgetting,” The AtlanticThe Atlantic, 11.13, 11.13
““Meet Your Meet Your Next Surgeon: Next Surgeon:
Dr. Robot”Dr. Robot”Source: Feature/Source: Feature/FortuneFortune/15 JAN 2013/on Intuitive Surgical’s/15 JAN 2013/on Intuitive Surgical’s
da Vincida Vinci/multiple bypass heart-surgery /multiple bypass heart-surgery
robotrobot
Robot Wars!Robot Wars!
“The combination of new “The combination of new market rules and new market rules and new
technology was turningtechnology was turning the stock market into, in the stock market into, in
effect,effect, aa warwar of of robotsrobots.”.” —Michael Lewis, “Goldman’s —Michael Lewis, “Goldman’s
Geek Tragedy,” Geek Tragedy,” Vanity FairVanity Fair, 09.13, 09.13
““Human level Human level capability has not capability has not turned out to be a turned out to be a special stopping special stopping
point from an point from an engineering engineering
perspective. ….”perspective. ….”
Source: Illah Reza Nourbakhsh, Professor of Robotics, Carnegie Mellon, Source: Illah Reza Nourbakhsh, Professor of Robotics, Carnegie Mellon, Robot Robot FuturesFutures
““Just like other members of Just like other members of the board, the algorithm the board, the algorithm
gets to vote on whether the gets to vote on whether the firm makes an investment firm makes an investment in a specific company or in a specific company or
not. The program will be the not. The program will be the sixth member of DKV's sixth member of DKV's
board.”board.”
Source:Source: Business Insider, Business Insider, 13 May 2014: 13 May 2014: “A Hong Kong VC fund “A Hong Kong VC fund has just appointed an algorithm to its board.” has just appointed an algorithm to its board.”
““The root of our problem is notThe root of our problem is not that we’re in a Great Recessionthat we’re in a Great Recession
or a Great Stagnation, but ratheror a Great Stagnation, but rather that we are in the early that we are in the early
throes of a throes of a Great Restructuring..
Our technologies are racing ahead,Our technologies are racing ahead, but our skills and organizationsbut our skills and organizations
are lagging behind.”are lagging behind.”
Source:Source: Race AGAINST the Machine, Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfeeErik Brynjolfsson and Andrew McAfee
Circa 3013: And Circa 3013: And YOUTH YOUTH Shall Lead Us …Shall Lead Us …
60 IS THE NEW 40!60 IS THE NEW 40!70 IS THE NEW 50!70 IS THE NEW 50!
And/Or …And/Or …
35 IS THE NEW 6535 IS THE NEW 65?*?*
**PacePace of obsolescence of obsolescence STAGGERINGSTAGGERING//ACCELERATINGACCELERATING
IoEIoE
IoT/The Internet of ThingsIoT/The Internet of Things IoE/The Internet of IoE/The Internet of EverythingEverything M2M/Machine-to-MachineM2M/Machine-to-Machine Ubiquitous computingUbiquitous computing Embedded computingEmbedded computing Pervasive computingPervasive computing Industrial InternetIndustrial Internet Etc.*Etc.* **** ******
*“*“More Than More Than 50 BILLION50 BILLION connected devices by 2020” —Ericsson connected devices by 2020” —Ericsson
**Estimated **Estimated 212 BILLION212 BILLION connected devices by 2020—IDC connected devices by 2020—IDC
***“By 2025 IoT could be applicable to ***“By 2025 IoT could be applicable to $82 TRILLION$82 TRILLION of output or of output or approximately one half the global economy”—GE [The WAGs to end all WAGs!]approximately one half the global economy”—GE [The WAGs to end all WAGs!]
Internet of EverythingInternet of Everything
““The idea of the IoE* The idea of the IoE* [Internet of [Internet of
Everything/Cisco Systems]Everything/Cisco Systems] is a networked is a networked connection of people, connection of people,
processes, data and ‘things,’ processes, data and ‘things,’ which is being facilitated by which is being facilitated by
technology transitions such as technology transitions such as increased mobility, cloud increased mobility, cloud
computing and the importance computing and the importance of big data.”of big data.”
*Estimated market size, next decade: *Estimated market size, next decade: $14.4 $14.4 trilliontrillionSource: “The Big Switch,”Source: “The Big Switch,” Capital Insights Capital Insights
Walmart SV =Walmart SV =
1,5001,500
““Ford is working with the Ford is working with the healthcare industry on a healthcare industry on a
solution that would notify a solution that would notify a nearby hospital if you were nearby hospital if you were
having a heart attack in your having a heart attack in your car, which can send an car, which can send an
ambulance … ambulance … before you even know you’re having
one. …”
——Daniel Kellmereit & Daniel Obodovski,Daniel Kellmereit & Daniel Obodovski, The Silent Intelligence: The Internet of Things The Silent Intelligence: The Internet of Things
INNOVATION:INNOVATION:TWO TACTICSTWO TACTICS
11/48/48(No kidding)(No kidding)
Lesson48:Lesson48: WTTMSWTTMS
WW
WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTSTUFFSTUFFWINSWINS
Excellence82: The Bedrock “EiExcellence82: The Bedrock “Eigght Basics”ht Basics”
1. 1. A Bias for A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. 3. AutonomAutonomy and y and EntreEntreppreneurshireneurshipp4. Productivity Through 4. Productivity Through PeoPeopplele5. 5. Hands OnHands On, , Value-DrivenValue-Driven6. 6. Stick toStick to the Knitting the Knitting7. 7. SimSimpplele Form, Form, LeanLean Staff Staff8. Simultaneous 8. Simultaneous Loose-TightLoose-Tight PropertiesProperties
READY.READY.FIRE!FIRE!AIM.AIM.
H. Ross Perot (vs H. Ross Perot (vs ““Aim! Aim! Aim!”Aim! Aim! Aim!”/EDS vs GM/1985)/EDS vs GM/1985)
““WE HAVE A WE HAVE A ‘STRATEGIC ‘STRATEGIC PLAN.’ IT’S PLAN.’ IT’S
CALLED CALLED DOING DOING THINGSTHINGS.”.” — Herb Kelleher
““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)
““We made mistakes, of course. Most of them were omissions We made mistakes, of course. Most of them were omissions
we didn’t think of when we initially wrote the software. we didn’t think of when we initially wrote the software. We We fixed them bfixed them byy doin doingg it over and over, it over and over, aaggain and aain and aggain.ain. We do the same today. While our We do the same today. While our
competitors are still suckingcompetitors are still sucking their thumbs trying to make the their thumbs trying to make the design perfect, we’re already on prototype versiondesign perfect, we’re already on prototype version
##55.. By the time our rivals are ready with wires By the time our rivals are ready with wires
and screws, we are on version and screws, we are on version ##1010.. It It
ggets back to ets back to pplanninlanningg versus actin versus acting: g: We We act from day oneact from day one; ; others others pplan how tolan how to pplanlan——for monthsfor months.”.” —Bloomberg by Bloomberg—Bloomberg by Bloomberg
““FAIL.FAIL. FORWARD. FORWARD.
FAST.”FAST.”High Tech CEO, Pennsylvania
WTTMSWTTMSASTMSUTFASTMSUTFWW
WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTSTUFFSTUFFANDANDSCREWS SCREWS THE THE MOST MOST STUFF STUFF UPUP THETHEFASTESTFASTESTWINSWINS
1T1T
1T/4,0961T/4,096
“YOU MISS “YOU MISS
100100%% OF OF
THE SHOTS YOU THE SHOTS YOU NEVER TAKE.”NEVER TAKE.”
—Wayne—Wayne GretzkyGretzky
““The difference between Bach and his forgotten peers The difference between Bach and his forgotten peers isn’t necessarily that he had a better ratio of hits to isn’t necessarily that he had a better ratio of hits to
misses. The difference is that the mediocre might have a misses. The difference is that the mediocre might have a dozen ideas, while Bach, in his lifetime, created more dozen ideas, while Bach, in his lifetime, created more than a thousand full-fledged musical compositions. A than a thousand full-fledged musical compositions. A
genius is a genius, psychologist Paul Simonton genius is a genius, psychologist Paul Simonton maintains, because he can put together such a maintains, because he can put together such a
staggering number of insights, ideas, theories, random staggering number of insights, ideas, theories, random observations, and unexpected connections that he observations, and unexpected connections that he almost inevitably ends up with something great.almost inevitably ends up with something great.
‘‘Quality,’Quality,’ Simonton writes,Simonton writes, ‘is a ‘is a probabilistic function of probabilistic function of
quantity.’”quantity.’”
—Malcolm Gladwell, “Creation Myth,” —Malcolm Gladwell, “Creation Myth,” New YorkerNew Yorker, 0516.11, 0516.11
We Are We Are WhatWhat
We Eat We Eat
““You will become You will become like the five people like the five people you associate with you associate with the most—this can the most—this can
be either a blessing be either a blessing or a curse.”or a curse.” —Billy Cox—Billy Cox
The “We are what we eat”/ The “We are what we eat”/ “We are who we hang out with”“We are who we hang out with”
Axiom: Axiom: At its core, At its core, evereveryy (!!!) (!!!) relationship-partnership decision relationship-partnership decision
(employee, vendor, customer, etc., (employee, vendor, customer, etc., etc.) is a etc.) is a stratestrateggicic decision about: decision about:
“Innovate,“Innovate, ‘ ‘YesYes’ ’ oror ‘No’””
WEWE ARE ARE THE THE COMPANYCOMPANY WE KEEP!WE KEEP!
MANAGEMANAGE IT! IT!
““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
Vanity Fair:Vanity Fair: “What is your most “What is your most marked characteristic?”marked characteristic?”
Mike Bloomberg:Mike Bloomberg:
““Curiosity.”Curiosity.”
InnovateInnovate or Die: or Die:
Measure It!Measure It!
Innovation IndexInnovation Index:: How many of your Top 5Top 5
Strategic Initiatives/Key Projects score 88 or or higherhigher [out of 10] on a
“Weird”“Weird”//“Profound”“Profound”/ / “Wow”“Wow”//“Game-“Game-
changer”changer” Scale? (At least 3???)
SOME SOME VALUE-ADDED VALUE-ADDED STRATEGIESSTRATEGIES
TGRs:TGRs:8/808/80
CustomersCustomers describing their service describing their service
experience as “superior”: experience as “superior”: 88%%ComComppaniesanies describing describing
the service experience they provide the service experience they provide asas
“ “superior”: superior”: 8080%%——Source: Bain & Company survey of 362 companies, reported in John DiJulius,Source: Bain & Company survey of 362 companies, reported in John DiJulius,
What's the Secret to Providing a World-class Customer Experience?What's the Secret to Providing a World-class Customer Experience?
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?”
““Let me help Let me help you down you down
the jetway.”the jetway.”
It It BEGINSBEGINS (and (and ENDSENDS) )
in the …in the …
PARKINGPARKING LOTLOT**
*Disney*Disney
““ExExpperienceseriences are as distinct are as distinct from servicesfrom services
as services are as services are from goods.”from goods.”
—Joe Pine & Jim Gilmore, —Joe Pine & Jim Gilmore, The Experience Economy: The Experience Economy: Work Is Theatre & Every Business a StageWork Is Theatre & Every Business a Stage
<TG<TGWandand … …
>TG>TGRR[Things Gone [Things Gone WRONG-Things Gone -Things Gone RIGHTRIGHT]]
TGRTGRSS..MANAGEMANAGE ’EM. ’EM.
MEASUREMEASURE ’EM. ’EM.***I use “manage-measure” a lot. Translation: These are*I use “manage-measure” a lot. Translation: These are
not “soft” ideas; they are exceedingly important things not “soft” ideas; they are exceedingly important things that can be managed—AND measured. that can be managed—AND measured.
TGRs:TGRs:K = R = K = R =
PP
““Courtesies of a small Courtesies of a small and trivial character and trivial character are the ones which are the ones which
strike deepest in the strike deepest in the grateful and grateful and
appreciating heart.”appreciating heart.”
—Henry Clay
Kindness = Kindness = Repeat Business =Repeat Business =
Profit.Profit.
TGRs:TGRs:LBTsLBTs
LITTLE =LITTLE =
BIGBIG
Big carts =Big carts =
1.5X1.5XSource: WalmartSource: Walmart
2X:2X: “When Friedman“When Friedman
slisligghtlhtly y curvedcurved the right angle of the right angle of
an entrance corridor to one property, an entrance corridor to one property, he was ‘amazed at the magnitude of he was ‘amazed at the magnitude of
change in pedestrians’ behavior’—the change in pedestrians’ behavior’—the percentage who entered increased percentage who entered increased
from from oneone--thirdthird to nearly to nearly twotwo--thirdsthirds.”.”
——Natasha Dow Schull, Natasha Dow Schull, Addiction By Design: Machine Gambling in Las VegasAddiction By Design: Machine Gambling in Las Vegas
Machine GamblingMachine Gambling
““Pleasing” odor #1 vs. Pleasing” odor #1 vs. “pleasing” odor #2: “pleasing” odor #2:
+45%+45% revenue revenue Source:Source: “Effects of Ambient Odors on Slot-Machine Useage in Las Vegas “Effects of Ambient Odors on Slot-Machine Useage in Las Vegas
Casinos,” reported inCasinos,” reported in Natasha Dow Schull, Natasha Dow Schull, Addiction By Design: Addiction By Design: Machine Gambling in Las Vegas Machine Gambling in Las Vegas (66% revenue, 85% profit)(66% revenue, 85% profit)
““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)
Social Business/ Social Business/ Customer Customer
Engagement+++Engagement+++
““Customer engagement is Customer engagement is moving from relatively isolated moving from relatively isolated market transactions to deeply market transactions to deeply connected and sustained social connected and sustained social relationships. relationships. This basic chanThis basic changge e in how we do business will make in how we do business will make
an iman imppact on act on jjust about ust about evereveryythinthingg we do we do.”.”
Social Business By Design: Transformative Social Media StrategiesSocial Business By Design: Transformative Social Media Strategies For the Connected CompanyFor the Connected Company —Dion Hinchcliffe & Peter Kim —Dion Hinchcliffe & Peter Kim
ZMOTZMOT:: ZERO Moment Of Truth/Google ZERO Moment Of Truth/Google**
““You know what a ‘moment of truth’ is. It’s when a prospective You know what a ‘moment of truth’ is. It’s when a prospective customer decides either to take the next step in the purchase customer decides either to take the next step in the purchase funnel, or to exit and seek other options. … But what is a ‘zero funnel, or to exit and seek other options. … But what is a ‘zero moment of truth’? Many behaviors can serve as a zero moment moment of truth’? Many behaviors can serve as a zero moment of truth, but what binds them together is that the purchase is of truth, but what binds them together is that the purchase is
being researched and considered before the prospect even being researched and considered before the prospect even enters the classic sales funnel … In its research, Google found enters the classic sales funnel … In its research, Google found
that that 84%84% of shoppers said the new mental of shoppers said the new mental
model, ZMOT, shapes their decisions. …” model, ZMOT, shapes their decisions. …”
——Jay Baer, Jay Baer, Youtility: Why Smart Marketing Is About Help, Not HypeYoutility: Why Smart Marketing Is About Help, Not Hype
*See www.zeromomentoftruth.com for ZMOT in booklength format*See www.zeromomentoftruth.com for ZMOT in booklength format
““We’re moving toward an age of nearly perfect We’re moving toward an age of nearly perfect information. Review sites, shopping apps on information. Review sites, shopping apps on
smartphones, an extended network of acquaintances smartphones, an extended network of acquaintances available through social media, and unprecedented available through social media, and unprecedented access to experts mean that consumers operate in a access to experts mean that consumers operate in a radically different, socially interactive information radically different, socially interactive information environment.* … Consumers tend to make better environment.* … Consumers tend to make better
decisions and become less susceptible to context or decisions and become less susceptible to context or framing manipulations. For businesses, it means framing manipulations. For businesses, it means
marketing is changing forever.”marketing is changing forever.”
—Itamar Simonson and Emanuel Rosen, —Itamar Simonson and Emanuel Rosen, Absolute Absolute Value:Value: What Really Influences Customers in the What Really Influences Customers in the
Age of (Nearly) Perfect InformationAge of (Nearly) Perfect Information
*Google:*Google: ZMOTZMOT (ZERO Moment Of Truth)(ZERO Moment Of Truth)
““Amy HowellAmy Howell [social marketer extraordinaire, [social marketer extraordinaire,
founder of Howell Marketing]founder of Howell Marketing] ignites ignites epidemics. In a good way, epidemics. In a good way,
of course. Epidemics of of course. Epidemics of excitement. Epidemics of excitement. Epidemics of
business connections. business connections. Epidemics of influence.”Epidemics of influence.”
——Mark Schaeffer,Mark Schaeffer, ROI/Return on Influence: The Revolutionary ROI/Return on Influence: The Revolutionary Power of Klout, Social Scoring, and Influence MarketingPower of Klout, Social Scoring, and Influence Marketing
DESIGNDESIGN!!
Design Design RulesRules!!
APPLEAPPLE market cap market cap > Exxon Mobil* > Exxon Mobil*
*August 2011*August 2011
““Design is Design is
treated like treated like a relia religgionion at at
BMW.”BMW.” —Fortune—Fortune
E.g. …E.g. …
2014:2014: ZEROZERO excuse forexcuse for
non-excellent website/ non-excellent website/failure to exploit SM.failure to exploit SM.
Going “Social”: Location and Size IndependentGoing “Social”: Location and Size Independent
““Today, despite the fact that we’re jToday, despite the fact that we’re just a little swimminust a little swimmingg ppool comool comppananyy in Vir in Virgginiainia, we have the most trafficked , we have the most trafficked swimming pool website in the world. Five years ago, if swimming pool website in the world. Five years ago, if you’d asked me and my business partners what we do, you’d asked me and my business partners what we do,
the answer would have been simple, ‘We build in-ground the answer would have been simple, ‘We build in-ground
fiberglass swimming pools.’ Now we say,fiberglass swimming pools.’ Now we say, ‘We ‘We are the best teachersare the best teachers … … in the worldin the world … on the … on the subject of fiberglass swimming subject of fiberglass swimming
pools, and we also happen to build pools, and we also happen to build them.’”them.’”
——Jay Baer, YJay Baer, Youtility: Why Smart Marketing Is About Help, Not Hypeoutility: Why Smart Marketing Is About Help, Not Hype
DESIGN =DESIGN =THE THE LASTLAST
WORDWORD!!
HHypypothesisothesis: Men : Men
CANNOTCANNOT design for women’s design for women’s
needsneeds!!??!!??
Women BUYWomen BUY!!
““I speak to you with a feminine voice.I speak to you with a feminine voice. It’s the voice of democracy, of equality. It’s the voice of democracy, of equality.
I am certain, ladies and gentlemen,I am certain, ladies and gentlemen, that that this will be this will be
the woman’s the woman’s centurcentury.y. In the Portuguese language, In the Portuguese language,
words such as life, soul, and hope are of the feminine words such as life, soul, and hope are of the feminine
gender, as are other words like courage and sincerity.”gender, as are other words like courage and sincerity.”
——President Dilma Rousseff of BrazilPresident Dilma Rousseff of Brazil, 1st woman to, 1st woman to keynote the United Nations General Assembly (2011)keynote the United Nations General Assembly (2011)
““Forget CHINA, Forget CHINA, INDIA and the INDIA and the
INTERNET: Economic INTERNET: Economic Growth Is Driven by Growth Is Driven by
WOMENWOMEN.”.”
Source: Headline, Economist
W W > > 2X2X (C + (C + I)*I)*
**“Women now drive the global economy. Globally, they control about “Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could climb as high as $20 trillion in consumer spending, and that figure could climb as high as
$28 trillion$28 trillion in the next five years. in the next five years.
Their $13 trillion in total yearly earnings could reach $18 trillion in the Their $13 trillion in total yearly earnings could reach $18 trillion in the same period.same period. In aggregate, women represent a growth market bigger than China and India combined—more In aggregate, women represent a growth market bigger than China and India combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer. than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer.
And yet many companies do just that—even ones that are confidant that they have a winning strategy when it And yet many companies do just that—even ones that are confidant that they have a winning strategy when it comes to women. Consider Dell’s …”comes to women. Consider Dell’s …”
Source: Michael Silverstein and Kate Sayre, “The Female Economy,” Source: Michael Silverstein and Kate Sayre, “The Female Economy,” HBRHBR, 09.09, 09.09
““Women areWomen are THETHE majority majority
market”market” —Fara Warner/—Fara Warner/The Power of the PurseThe Power of the Purse
Women as Decision Makers/Various sourcesWomen as Decision Makers/Various sources
Home Furnishings … Home Furnishings … 94%94%Vacations … Vacations … 92%92% (Adventure Travel … 70%/ $55B travel equipment)(Adventure Travel … 70%/ $55B travel equipment)
Houses … Houses … 91%91%D.I.Y. D.I.Y. (major “home projects”)(major “home projects”) … … 80%80%
Consumer Electronics … Consumer Electronics … 51%51% (66% home computers)(66% home computers)
Cars … Cars … 68%68% (influence (influence 90%90%))
AllAll consumerconsumer p purchasesurchases … … 83%83% **
Bank Account … Bank Account … 89%89%Household investment decisions … Household investment decisions … 67%67%Small business loans/biz starts … Small business loans/biz starts … 70%70%
Health Care … Health Care … 80%80%*In the USA women hold *In the USA women hold >50%>50% managerial positions including managerial positions including >50%>50% purchasing officer purchasing officer positions positions; hence women also make the majority of ; hence women also make the majority of commercialcommercial purchasing decisions. purchasing decisions.
““The The MOST MOST SIGNIFICANT SIGNIFICANT
VARIABLEVARIABLE inin EVERYEVERY sales situation is thesales situation is the
GENDERGENDER of the buyer, and of the buyer, and more importantly, how the more importantly, how the
salesperson communicates to salesperson communicates to the buyer’s gender.”the buyer’s gender.”
—Jeffery Tobias Halter, Selling to Men, Selling to Women
The Perfect Answer
Jill and Jack buy slacks in black…
Sales/After-sales ProcessSales/After-sales 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: Martha Barletta, Source: Martha Barletta, Marketing to Women: How to Increase Your Share of the World’s Largest MarketMarketing to Women: How to Increase Your Share of the World’s Largest Market
2.62.6 vs.vs. 2121
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, byWill Transform Our World for the Better, by Maddy DychtwaldMaddy Dychtwald****The Female BrainThe Female Brain, by Louann Brizendine, M.D., by Louann Brizendine, M.D.
Women RULEWomen RULE!!
““Research suggests Research suggests that to succeed, start that to succeed, start
by promoting by promoting women.”women.”
““McKinsey & Company found that the international companiesMcKinsey & Company found that the international companies with more women on their corporate boards with more women on their corporate boards far outperformedfar outperformed the the
average company in return on equity and other measures. average company in return on equity and other measures.
Operating profit wasOperating profit was 56%56% higher.”higher.”
Source: Nicholas Kristof, “Twitter, Women, and Power,” Source: Nicholas Kristof, “Twitter, Women, and Power,” NYTimesNYTimes, 1024.13, 1024.13
““AS AS LEADERS, LEADERS, WOMEN WOMEN
RULERULE:: New Studies find that New Studies find that
female managers outshine their male female managers outshine their male counterparts in almost every measure”counterparts in almost every measure”
TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek
Women’s NeWomen’s Neggotiatinotiatingg Stren Strenggthsths
*Ability to put themselves in their *Ability to put themselves in their counterparts’ shoes counterparts’ shoes*Comprehensive, attentive and detailed*Comprehensive, attentive and detailed communication style communication style*Empathy that facilitates trust-building*Empathy that facilitates trust-building*Curious and attentive listening*Curious and attentive listening*Less competitive attitude*Less competitive attitude*Strong sense of fairness and ability to *Strong sense of fairness and ability to persuadepersuade*Proactive risk manager*Proactive risk manager*Collaborative decision-making*Collaborative decision-making
Source: Horacio Falcao, Cover story/May 2006, Source: Horacio Falcao, Cover story/May 2006, World BusinessWorld Business, “Say It , “Say It Like a Woman: Why the 21Like a Woman: Why the 21stst-century negotiator will need the female -century negotiator will need the female touch”touch”
““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 has more interest in communicationWho has more interest in communication
skills?skills? Who is more inclined to get involved?Who is more inclined to get involved? Who encourages harmony and agreement?Who encourages harmony and agreement? Who has better intuition?Who has better intuition? Who works with a Who works with a longer ‘to do’ list?longer ‘to do’ list? Who enjoys a recap to the Who enjoys a recap to the
day’s events?day’s events? Who is better at keeping in Who is better at keeping in touch with others?”touch with others?”
Source: SellinSellingg Is a Woman’s Game Is a Woman’s Game: : 15 Powerful 15 Powerful Reasons WhReasons Whyy Women Can Outsell Men Women Can Outsell Men,,
Nicki JoNicki Joyy & Susan Kane-Benson & Susan Kane-Benson
Warren Buffett Warren Buffett Invests Like a Girl: Invests Like a Girl:
And Why YouAnd Why YouShould TooShould Too—Louann Lofton—Louann Lofton
Portrait of a Female InvestorPortrait of a Female Investor
1. Trade less than men do1. Trade less than men do2. Exhibit less overconfidence—more likely to know2. Exhibit less overconfidence—more likely to know what they don’t know what they don’t know3. Shun risk more than male investors do3. Shun risk more than male investors do4. Less optimistic, more realistic than their male4. Less optimistic, more realistic than their male counterparts counterparts5. Put in more time and effort researching possible5. Put in more time and effort researching possible investments—consider details and alternate points investments—consider details and alternate points of view of view6. More immune to peer pressure—tend to make6. More immune to peer pressure—tend to make decisions the same way regardless of who’s watching decisions the same way regardless of who’s watching7. Learn from their mistakes7. Learn from their mistakes8. Have less testosterone than men do, making them8. Have less testosterone than men do, making them less willing to take extreme risks, which, in turn, less willing to take extreme risks, which, in turn, could lead to less extreme market cycles could lead to less extreme market cycles
Source: Source: Warren Buffett Invests Like a Girl: And Warren Buffett Invests Like a Girl: And Why You Should TooWhy You Should Too, Louann Lofton, Chapter 2, “The Science Behind the , Louann Lofton, Chapter 2, “The Science Behind the Girl”Girl”
WeWe (old farts like me)(old farts like me) Got Got
the the $$$$$$$$$$$$
1/8/201/8/20
1/8/201/8/20 (One USA boomer will turn 65 every 8 seconds for (One USA boomer will turn 65 every 8 seconds for
the next 20 years.)the next 20 years.)
10/1/2210/1/22 (USA adult population will have grown by 23 (USA adult population will have grown by 23
million between 2006 and 2016. Ages 18-49 will have grown by a million between 2006 and 2016. Ages 18-49 will have grown by a million, age 50+ will have grown by 22 million.)million, age 50+ will have grown by 22 million.)
>50@50>50@50 (At age 50, we have more than 50% of our (At age 50, we have more than 50% of our
adult life ahead of us.) adult life ahead of us.)
7/137/13 (An American will buy 13 cars in the course of a (An American will buy 13 cars in the course of a
lifetime—7 after the age of 50.)lifetime—7 after the age of 50.)
10-2510-25 (Boomers inherit $10-25 trillion in the next 20 (Boomers inherit $10-25 trillion in the next 20
years.)years.)
47X47X (Net wealth of households headed by 65+ is 47X (Net wealth of households headed by 65+ is 47X
greater than net wealth household headed by someone <35.)greater than net wealth household headed by someone <35.)
55+ > 55-55+ > 55- (55-plus are more active in online (55-plus are more active in online
finance, shopping and entertainment than those under 55)finance, shopping and entertainment than those under 55)
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““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
““In 2009, households headed by In 2009, households headed by adults ages 65 and older ... had adults ages 65 and older ... had
4747 timestimes as much as much
net wealth as the typical net wealth as the typical household headed by someone household headed by someone under 35 years of age. In 1984, under 35 years of age. In 1984, this had been a less lopsided this had been a less lopsided
10-to-1 ratio.”10-to-1 ratio.”
Source: Pew Research/10.11Source: Pew Research/10.11
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 … adult market with realistic prospects with realistic prospects
for significant sales for significant sales growth in dozens of growth in dozens of
product lines for product lines for thousands of thousands of companies.”companies.”
—David Wolfe & Robert Snyder, —David Wolfe & Robert Snyder, Ageless MarketingAgeless Marketing
““BABY-BOOMER BABY-BOOMER WOMENWOMEN: The: The 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 No market’s market’s
motivations andmotivations and needs are so needs are so
poorlpoorlyy understoodunderstood.”.”
——Peter Francese, founding publisher, Peter Francese, founding publisher, American DemographicsAmerican Demographics
The The (ENORMOUS??)(ENORMOUS??)
Services Services OpportunityOpportunity
IBIBMMtoto
IIBBMM
$55B*$55B**IBM Global Services/*IBM Global Services/
“Systems integrator of choice”“Systems integrator of choice”
PlanetarPlanetary y RainmakerRainmaker--inin--ChiefChief!!
“[CEO Sam] Palmisano’s “[CEO Sam] Palmisano’s strategy is to expand tech’s strategy is to expand tech’s borders by pushing users—borders by pushing users—
and entire industries—and entire industries—towardtoward radicallradically y differentdifferent businessbusiness modelsmodels.. The payoff for IBM would be The payoff for IBM would be
access to an ocean of revenue—Palmisano access to an ocean of revenue—Palmisano
estimates it atestimates it at $$500500 billionbillion aa y yearear——that technology companies have never been that technology companies have never been
able to touch.”able to touch.” ——FortuneFortune
UUPPSS toto
UPUPSS
““Big Brown’s New Bag: UPS Aims Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for to Be the Traffic Manager for Corporate America”Corporate America” —Headline/—Headline/BWBW
“UPS wants to take over the sweet “UPS wants to take over the sweet spot in the endless loop of goods, spot in the endless loop of goods,
information and capital that all the information and capital that all the packages packages [it moves][it moves] represent.” represent.” —ecompany.com —ecompany.com
“It’s all about “It’s all about solutionssolutions. We . We work with customers on creating work with customers on creating
and running better, stronger, and running better, stronger, cheaper supply chains.”cheaper supply chains.” —Bob Stoffel, UPS —Bob Stoffel, UPS
senior exec senior exec
““Rolls-RoyceRolls-Royce now now
earns earns moremore from tasks from tasks such as managing such as managing
clients’ overall clients’ overall procurement strategies procurement strategies
and maintaining and maintaining aerospace engines it aerospace engines it
sells than it does from sells than it does from making them.”making them.”
——EconomistEconomist
MasterCard MasterCard AdvisorsAdvisors
I. LAN Installation Co. (3%)
II. Geek Squad. (30%.)
III. Acquired by Best Buy.
IV. FLAGSHIP OF BEST BUYFLAGSHIP OF BEST BUY WHOLESALE “SOLUTIONS” WHOLESALE “SOLUTIONS” STRATEGY MAKEOVER. STRATEGY MAKEOVER.
“‘“‘Architecture’ is Architecture’ is becoming a becoming a
commodity. Winners commodity. Winners will be will be ‘Turnkey ‘Turnkey
Facilities Facilities Management’ Management’
providers.”providers.” —SMPS Exec—SMPS Exec
Era #1/Obvious ValueEra #1/Obvious Value: “Our ‘it’ works, : “Our ‘it’ works, is delivered on time” (“Close”)is delivered on time” (“Close”)
Era #2/Augmented ValueEra #2/Augmented Value: : “How our “How our ‘it’ can add value—a ‘useful it’” ‘it’ can add value—a ‘useful it’”
(“Solve”)(“Solve”)
Era #3/Complex Value NetworksEra #3/Complex Value Networks: : “How “How our ‘system’ can change you and our ‘system’ can change you and
deliver deliver ‘BUSINESS ADVANTAGE’‘BUSINESS ADVANTAGE’” ” (“Culture-Strategic change”)(“Culture-Strategic change”)
Source: Jeff Thull, Source: Jeff Thull, The Prime Solution: Close the Value Gap,The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale Increase Margins, and Win the Complex Sale
!!
0/8000/800
THETHE RED RED CARPET CARPET STORESTORE
(Joel Resnick/Flemington NJ)(Joel Resnick/Flemington NJ)
““INSANELY GREAT”INSANELY GREAT”STEVE JOBSSTEVE JOBS
“RADICALLY THRILLING” “RADICALLY THRILLING” BMW
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!!
“The reasonable man adapts The reasonable man adapts himself to the world. The himself to the world. The
unreasonable one persists unreasonable one persists in trying to adapt the world in trying to adapt the world
to himself. Therefore, all to himself. Therefore, all progress depends upon the progress depends upon the unreasonable man.”unreasonable man.” —GB Shaw,
Man and Superman: The Revolutionists' Handbook
““Normal” =Normal” = “0 “0 forfor 800” 800”
*There are … *There are … ZEROZERO … “normal people” in the history books. … “normal people” in the history books.