Tom Peters’Tom Peters’

Re-Imagine EXCELLENCERe-Imagine EXCELLENCE

INNOVATEINNOVATE … … or Perishor Perish

Guadalajara/29 October 2014Guadalajara/29 October 2014

(For more see tompeters.com and our fully annotated 23-part Master (For more see tompeters.com and our fully annotated 23-part Master Compendium [Mother of All Presentations] at excellencenow.com)Compendium [Mother of All Presentations] at excellencenow.com)

CONRAD HILTON …CONRAD HILTON …

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.”.”

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

Professionals talk Professionals talk about logistics.”about logistics.”

——Omar Bradley, commander of American troops/D-DayOmar Bradley, commander of American troops/D-Day

0/1,0000/1,000

““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)

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)

JUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OHJUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OH::

““An adventure in An adventure in ‘shoppertainment,’‘shoppertainment,’ begins in the begins in the

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

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

priced from 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 from every corner of the vendors. Customers from every corner of the

globe.”globe.”

BRONNER’S CHRISTMAS WONDERLAND, FRANKENMUTH, MIBRONNER’S CHRISTMAS WONDERLAND, FRANKENMUTH, MI, POP , POP

5,0005,000:: 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 else

you can name pertaining to Christmas. …”you can name pertaining to Christmas. …”

““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

I love …I love … Middle-Middle-sized Niche- sized Niche- Micro-niche Micro-niche

Dominators!Dominators!

"Own" a niche through EXCELLENCE"Own" a niche through EXCELLENCE!!(Writ large: Germany’s (Writ large: Germany’s MITTELSTANDMITTELSTAND: : “agile creatures darting“agile creatures darting

between the legs of the multinational monsters”between the legs of the multinational monsters” ))

THE THREE RULES:THE THREE RULES: How Exceptional Companies Think*How Exceptional Companies Think*

1. 1. Better before cheaper.Better before cheaper.2. 2. Revenue before cost.Revenue before cost.3. 3. There are no other rules.There are no other rules.

(*From a database of over 25,000 companies from hundreds of industries (*From a database of over 25,000 companies from hundreds of industries covering 45 years, they uncovered 344 companies that qualified as covering 45 years, they uncovered 344 companies that qualified as statistically “exceptional.”)statistically “exceptional.”)

Where the +201,000 new private-sectorWhere the +201,000 new private-sector jobs came from … jobs came from …

51% Small firms51% Small firms41% Medium-sized41% Medium-sized**8% Big8% BigSource: ADP National Employment Report/March 2011Source: ADP National Employment Report/March 2011

*E.g., German *E.g., German MITTELSTANDMITTELSTAND

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

PeoplePeople!!PeoplePeople!!PeoplePeople!!

1/4,0961/4,096

““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

““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)

Rocket Science. Rocket Science. NOT.NOT.

““If you want staff to If you want staff to give great service, give great service, give great service give great service

to staff.” to staff.” ——Ari Weinzweig, Zingerman’s Ari Weinzweig, Zingerman’s

Source: Source: Small Giants: Companies That Choose to Be Small Giants: Companies That Choose to Be Great Instead of Big, Great Instead of Big, Bo BurlinghamBo Burlingham

““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 as it sounds—joy is However— as ridiculous as it sounds—joy is

the core belief of our workplace. the core belief of our workplace.

JoyJoy is the reason my company, is the reason my company,

Menlo Innovations, a customer software Menlo Innovations, a customer software design and development firm in Ann Arbor, design and development firm in Ann Arbor,

exists. It defines what we do and how we do it. exists. It defines what we do and how we do it. It is the single shared belief of our entire It is the single shared belief of our entire

team.”team.”

——Richard Sheridan, Richard Sheridan, Joy, Inc.: Joy, Inc.: How We Built a Workplace People LoveHow We Built a Workplace People Love

Training = Training = InvestmentInvestment

#1#1!!

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: “Comedian”)(documentary: “Comedian”)

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.

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

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

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

Gamblin’ ManGamblin’ Man

Bet #1: Bet #1: >> 5 of 10 CEOs see training as >> 5 of 10 CEOs see training as expense rather than investment.expense rather than investment.Bet #2: Bet #2: >> 5 of 10 CEOs see training as >> 5 of 10 CEOs see training as defense rather than offense.defense rather than offense.Bet #3: Bet #3: >> 5 of 10 CEOs see training as >> 5 of 10 CEOs see training as “necessary evil” rather than “strategic “necessary evil” rather than “strategic opportunity.”opportunity.”

Bet #4:Bet #4: >> 8 of 10 CEOs, in a >> 8 of 10 CEOs, in a 45-minute “tour d’horizon” 45-minute “tour d’horizon” of their business, would of their business, would NOTNOT mention training mention training..

What is the best reason to go What is the best reason to go bananas over training? bananas over training?

GREED.GREED. (It pays off.) (It pays off.)

(Training should be an official part of the (Training should be an official part of the

R&DR&D budget and a capital expense.) budget and a capital expense.)

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

““Research suggests Research suggests that to succeed, start that to succeed, start

by promoting by promoting women.”women.”

““McKinsey & Company found that the international McKinsey & Company found that the international companies with more women on their corporate boards companies with more women on their corporate boards far far

outperformedoutperformed the average company in return on equity the average company in return on equity

and other measures. Operating profit was and other measures. Operating 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 LEADERS, WOMEN RULE: New studies find AS LEADERS, WOMEN RULE: New studies find that female managers outshine their male that female managers outshine their male counterparts in almost every measure”counterparts in almost every measure”

——TITLE, Special Report, TITLE, Special Report, BusinessWeekBusinessWeek

““Research suggests that to succeed, start by Research suggests that to succeed, start by promoting women.”promoting women.” —Nicholas Kristof, —Nicholas Kristof, NYTimesNYTimes, 1024.13, 1024.13

““In my experience, women make much better In my experience, women make much better executives than men.”executives than men.” —Kip Tindell, CEO, Container Store—Kip Tindell, CEO, Container Store

McKinsey & Company found that the McKinsey & Company found that the international companies with more women on international companies with more women on their corporate boards far outperformed the their corporate boards far outperformed the

average company in return on equity and average company in return on equity and other measures. Operating profit was other measures. Operating profit was

56%56% higher.”higher.” —Nicholas Kristof, —Nicholas Kristof, NYTimesNYTimes, 1024.13, 1024.13

““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 > 2X (C + I) = *W > 2X (C + I) = $28T$28T

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

**“Women now drive the global economy. Globally, they control about $20 trillion “Women now drive the global economy. Globally, they control about $20 trillion

in consumer spending, and that figure could climb as high as in consumer spending, and that figure could climb as high as $28 $28 trillion in the next five trillion in the next five yyearsears.. Their $13 trillion in total yearly earnings could reach $18 Their $13 trillion in total yearly earnings could reach $18

trillion in the same period.trillion in the same period. In aggregate, women represent a growth market bigger than China and India 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 combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female

consumer. And yet many companies do just that—even ones that are confident that they have a winning strategy when it comes consumer. And yet many companies do just that—even ones that are confident that they have a winning strategy when it comes to women. Consider Dell’s …”to women. Consider Dell’s …”

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

Context:Context:1,000,0001,000,000

““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

““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[Pilots] have become, it’s not much of an exaggeration to say, much of an exaggeration to say,

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

China/Foxconn:China/Foxconn:

1,000,000

robots/next robots/next 3 years years

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

““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

THE THE MORALMORAL IMPERATIVE:IMPERATIVE:

PEOPLE PEOPLE DEVELOPMENTDEVELOPMENT

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

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

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

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

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

““The 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

Muhammad Yunus: Muhammad Yunus: ““All human All human beinbeinggs are s are

entreentreppreneursreneurs.. When we When we

were in the caves we were all self-were in the caves we were all self-employed ... finding our food, feeding employed ... finding our food, feeding ourselves. That’s where human history ourselves. That’s where human history

began ... As civilization came we suppressed began ... As civilization came we suppressed it. We became labor because they stamped it. We became labor because they stamped

us, ‘You are labor.’ us, ‘You are labor.’ We forgot that we are entrepreneurs.”We forgot that we are entrepreneurs.”

——Muhammad Yunus,Muhammad Yunus,

Nobel Laureate/Nobel Laureate/The News HourThe News Hour/PBS/1122.2006/PBS/1122.2006

INNOVATE INNOVATE … … or PERISHor PERISH

11/48/48

Lesson48:Lesson48: WTTMSWTTMS

WW

WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTSTUFFSTUFFWINSWINS

““EXPERIMENT EXPERIMENT FEARLESSLY”FEARLESSLY”

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

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

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

““FAIL.FAIL. FORWARD. FORWARD.

FAST.”FAST.”High Tech CEO, Pennsylvania

We Are WhatWe Are What We Eat We Eat

We Are Who We We Are Who We Hang Out WithHang Out With

““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’””

“The Bottleneck is at the …The Bottleneck is at the … “Where are you likely to find people “Where are you likely to find people

with the with the least diversitleast diversityy of ex of expperienceerience, , the the larlarggest investment in the est investment in the ppastast,,

and the g and the greatest reverence for reatest reverence for industrindustryy do doggmama … …

Top of the Top of the Bottle”Bottle”

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

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?

It It BEGINSBEGINS (and (and ENDSENDS) )

in the …in the …

PARKINGPARKING LOTLOT**

*Disney*Disney

<TG<TGWandand … …

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

TGRs:TGRs:LBTs*LBTs*

*Little BIG Things*Little BIG Things

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

DESIGNDESIGN!!

Design Design RulesRules!!

APPLEAPPLE market cap market cap > Exxon Mobil* > Exxon Mobil*

*August 2011*August 2011

The The (ENORMOUS)(ENORMOUS) “Services “Services

Added” Added” OpportunityOpportunity

““Rolls-RoyceRolls-Royce now earns now earns

moremore from tasks such from tasks such as managing clients’ as managing clients’ overall procurement overall procurement

strategies and maintaining strategies and maintaining aerospace engines it sells aerospace engines it sells than it does from making than it does from making

them.”them.”——EconomistEconomist

LeadingLeading

MBWA*MBWA* *Managing By Wandering Around*Managing By Wandering Around

““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 a sponge to pick up & Barrel. I try to be a sponge to pick up

as much as I can.”as much as I can.” —Howard Schultz—Howard Schultz

Source: Source: FortuneFortune, “Secrets of Greatness”, “Secrets of Greatness”

““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 (Chapter 5, “The Soft Skills Of Hard Leadership”)And How You Can Learn It Anyway (Chapter 5, “The Soft Skills Of Hard Leadership”)

You = Your You = Your calendarcalendar**

*The calendar *The calendar NEVERNEVER lies.lies.

““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 don't feel significant rarely make “Employees who don't feel significant rarely make significant contributions.”significant contributions.” —Mark Sanborn—Mark Sanborn

1 Mouth1 Mouth

22 Ears Ears

“The doctor interrupts after …*

*Source: Jerome Groopman, How Doctors Think

18 …

18 … seconds!

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.”

Listen!Listen!

An An [obsession with] Listening is ... the ultimate mark of Respect.[obsession with] Listening is ... the ultimate mark of Respect.Listening is ... the heart and soul of Listening is ... the heart and soul of Engagement.Engagement.Listening is ... the heart and soul of Listening is ... the heart and soul of Kindness.Kindness.Listening is ... the heart and soul of Listening is ... the heart and soul of Thoughtfulness.Thoughtfulness.Listening is ... the basis for true Listening is ... the basis for true Collaboration.Collaboration.Listening is ... the basis for true Listening is ... the basis for true Partnership.Partnership.Listening is ... a Listening is ... a Team Sport.Team Sport.Listening is ... a Listening is ... a Developable Individual Skill.Developable Individual Skill.Listening is ... the basis for Listening is ... the basis for Community.Community.Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures that work.Joint Ventures that work.Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures that grow.Joint Ventures that grow.Listening is ... the core of Listening is ... the core of effective Cross-functional Communication.*effective Cross-functional Communication.* (*Which is in turn Attribute #1 of(*Which is in turn Attribute #1 of organization effectiveness.) organization effectiveness.)Listening is ... the engine of Listening is ... the engine of superior EXECUTION.superior EXECUTION.Listening is ... the key to Listening is ... the key to making the Sale.making the Sale.Listening is ... the key to Listening is ... the key to Keeping the Customer’s Business.Keeping the Customer’s Business.Listening is ... Listening is ... Service.Service.Listening is ... the engine of Listening is ... the engine of Network development.Network development.Listening is ... the engine of Listening is ... the engine of Network maintenance.Network maintenance.Listening is ... the engine of Listening is ... the engine of Network expansion.Network expansion.Listening is ... Listening is ... Social Networking’s “secret weapon.”Social Networking’s “secret weapon.”Listening is ... Listening is ... Learning.Learning.Listening is ... the Listening is ... the sine qua non of Renewal.sine qua non of Renewal.Listening is ... the Listening is ... the sine qua non of Creativity.sine qua non of Creativity.Listening is ... the Listening is ... the sine qua non of Innovation.sine qua non of Innovation.Listening is ... the core of Listening is ... the core of taking diverse opinions aboard.taking diverse opinions aboard.Listening is ... Listening is ... Strategy.Strategy.Listening is ... Listening is ... Source #1 of “Value-added.”Source #1 of “Value-added.”Listening is ... Listening is ... Differentiator #1.Differentiator #1.Listening is ... Listening is ... Profitable.* (*The “R.O.I.” from listening is higher than from anyProfitable.* (*The “R.O.I.” from listening is higher than from any other single activity.)other single activity.)Listening is … the bedrock which underpins a Listening is … the bedrock which underpins a Commitment to EXCELLENCE!Commitment to EXCELLENCE!

0/8000/800

““Normal” =Normal” = “0 “0 forfor 800” 800”

*There are … *There are … ZEROZERO … “normal people” in the history books. … “normal people” in the history books.

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!!