W.A. Coppins Ltd.W.A. Coppins Ltd.

The Magicians of The Magicians of MotuekaMotueka!!The MITTELSTAND TrifectaThe MITTELSTAND Trifecta!!

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

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

Transfer; custom fabric from Transfer; custom fabric from W. WiW. Wiggggins ins LtdLtd./Wellington; specialty nylon, “Dyneema,” from ./Wellington; specialty nylon, “Dyneema,” from

DSMDSM/Netherlands/Netherlands

Going “Social”/Location and Size Independent: Going “Social”/Location and Size Independent:

Rise of the … Rise of the … MICRO-MULTINATIONALMICRO-MULTINATIONAL““Today, despite the fact that we’re Today, despite the fact that we’re jjust 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

““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]

1. Incredibly Clever1. Incredibly Clever 2. Exploit New-tech2. Exploit New-tech 3. People (REALLY)3. People (REALLY) FirstFirst(4. EXCELLENCE)(4. EXCELLENCE)(5. EXECUTION)(5. EXECUTION)

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

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

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

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

Tom Peters’Tom Peters’

Re-ImagineRe-Imagine

EXCELLENCEEXCELLENCE!!

The National Productivity andThe National Productivity and Competitiveness CouncilCompetitiveness Council

Port Louis/16 April 2014Port Louis/16 April 2014(slides at tompeters.com; also see excellencenow.com)(slides at tompeters.com; also see excellencenow.com)

REALLY First REALLY First Things Before Things Before First ThingsFirst Things

Definition of Definition of a “BIG a “BIG

Company”?Company”?

1/1/The The ONEONE Secret Secret!!

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

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

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

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

same awareness?same awareness?

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

employee satisfaction?employee satisfaction?

YESYES!!

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

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

““People leave People leave managers not managers not

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

2/2/Training As Training As InvestmentInvestment

#1#1

Training [Training [OBVIOUSLYOBVIOUSLY!] !] #1#1:: Police. Fire. Military. Police. Fire. Military. Opera. Symphony. Opera. Symphony.

Theater. Sports. BUT … Theater. Sports. BUT … in most businesses, it's in most businesses, it's

“ho hum” mid-level “ho hum” mid-level staff function.staff function.

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.

Tom’s TIB* #1:Tom’s TIB* #1: Your principal moral Your principal moral obligation as a leader is to obligation as a leader is to

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

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

abilities. The abilities. The good news: This is also thegood news: This is also the

#1 mid- to long-term … #1 mid- to long-term …

profit maximization strategy profit maximization strategy!!* * This I Believe (courtesy Bill Caudill)This I Believe (courtesy Bill Caudill)

Should be able to get Should be able to get immediate answer upon immediate answer upon stopping anyone and stopping anyone and

asking,asking, “What have “What have you learned you learned

today?”today?”

““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

““G-E-N-I-U-S”G-E-N-I-U-S”Getting more and more cantankerous (short tempered!)Getting more and more cantankerous (short tempered!)

about this:about this: Job #1Job #1 (& #2 & #3)(& #2 & #3) is to abet peoples' personal is to abet peoples' personal

growth. All other good things growth. All other good things flow there from.flow there from.My idea of a gen-u-ine "genius“My idea of a gen-u-ine "genius“

"breakthrough" idea:"breakthrough" idea: If you work your If you work your heart out to help people grow, heart out to help people grow,

they'll work their hearts outthey'll work their hearts out to give customers a great to give customers a great

experience.experience.

3/3/Education As Education As

PriorityPriority #1#1

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

artist.”artist.” —Picasso—Picasso

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

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

——Richard FloridaRichard Florida

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

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

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

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

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

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

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

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

most energetic and most energetic and enthusiastic and enthusiastic and

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

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

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

A 15-PointA 15-Point Human Capital Human Capital

Asset Development Asset Development ManifestoManifesto

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

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

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

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

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

GRINGRIN

GGeneticsenetics

RRoboticsobotics

IInformaticsnformatics

NNanotechnology*anotechnology*

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

““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

RACE RACE AGAINST AGAINST

THE THE MACHINEMACHINE

China China tootoo/Foxconn:/Foxconn:

1,000,000 1,000,000 robots in next robots in next

3 years3 yearsSource:Source: Race AGAINST the Machine, Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfeeErik Brynjolfsson and Andrew McAfee

““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 robot/multiple bypass heart-surgery robot

((“Almost all health care people get is going to be done by “Almost all health care people get is going to be done by algorithms within a decade or two.”algorithms within a decade or two.” —Michael Vassar/MetaMed—Michael Vassar/MetaMed))

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

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

effect,effect,

aa warwar oof f robotsrobots.”.” —Michael —Michael

Lewis, “Goldman’s Geek Tragedy,” Lewis, “Goldman’s Geek Tragedy,” Vanity FairVanity Fair, 09.13, 09.13

““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 ofof

… … 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.” —Nicholas Carr, —Nicholas Carr, The AtlanticThe Atlantic, 11.13, 11.13

““Human level Human level capability has not capability has not turned out to be a turned out to be a special stopping special stopping

point from an point from an engineering engineering

perspective. ….”perspective. ….”

Source: Illah Reza Nourbakhsh, Professor of Robotics, Carnegie Mellon, Source: Illah Reza Nourbakhsh, Professor of Robotics, Carnegie Mellon, Robot Robot FuturesFutures

““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 . Our

technologies are racing ahead,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 greatest shortcoming of the human race is our The greatest shortcoming of the human race is our inability to understand the inability to understand the exponential function.”*.”*

——Albert A. BartlettAlbert A. Bartlett (*GRIN/Genetics + Robotics + Informatics + Nanotechnology)(*GRIN/Genetics + Robotics + Informatics + Nanotechnology)

““The root of our problem is not that we’re in a ‘Great The root of our problem is not that we’re in a ‘Great Recession’ or a ‘Great Stagnation,’ but rather that we Recession’ or a ‘Great Stagnation,’ but rather that we are in the early throes of a are in the early throes of a Great Restructuring. Our Our

technologies are racing ahead, but our skills and technologies are racing ahead, but our skills and organizations are lagging behind.” organizations are lagging behind.” —Erik Brynjolfsson and Andrew —Erik Brynjolfsson and Andrew

McAfee, McAfee, Race Against the MachineRace Against the Machine

“The median worker is losing the race against the machine.” —Erik Brynjolfsson and Andrew McAfee, —Erik Brynjolfsson and Andrew McAfee, Race Against the MachineRace Against the Machine

““Human level capability has not turned out to be a Human level capability has not turned out to be a special stopping point from an engineering special stopping point from an engineering

perspective. ...” perspective. ...” ——IIllah Reza Nourbakhsh, IIllah Reza Nourbakhsh, Robot FuturesRobot Futures

((“I believe that 90 percent of white-collar/‘knowledge-“I believe that 90 percent of white-collar/‘knowledge-work’ jobs—which are 80 percent of all jobs—in the U.S. work’ jobs—which are 80 percent of all jobs—in the U.S. will be either destroyed or altered beyond recognition in will be either destroyed or altered beyond recognition in

the next 10 to 15 years.”the next 10 to 15 years.” —Cover/Time/22 May 2000/Tom Peters)

4/4/XFX =XFX =

#1#1

XFX = XFX = #1#1**

*Cross-Functional *Cross-Functional eXcellence eXcellence

NEVER NEVER WASTE A WASTE A LUNCH!LUNCH!

% XF % XF

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

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

XFX/Typical XFX/Typical SocialSocial Accelerators Accelerators

1. EVERYONE’s [more or less] JOB #1: Make friends in other 1. EVERYONE’s [more or less] JOB #1: Make friends in other functions! (Purposefully. Consistently. Measurably.)functions! (Purposefully. Consistently. Measurably.)2. “Do lunch” with people in other functions!! Frequently!! 2. “Do lunch” with people in other functions!! Frequently!! (Minimum 10% to 25% for everyone? Measured.)(Minimum 10% to 25% for everyone? Measured.)3. Ask peers in other functions for references so you can become 3. Ask peers in other functions for references so you can become conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-ism.) ism.) 4. Religiously invite counterparts in other functions to your team 4. Religiously invite counterparts in other functions to your team meetings. Ask them to present “cool stuff” from “their world” to meetings. Ask them to present “cool stuff” from “their world” to your group. (Useful. Mark of respect.)your group. (Useful. Mark of respect.)

5. 5. PROACTIVELY SEEK EXAMPLES OF “TINY” PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO ACKNOWLEDGE—ACTS OF “XFX” TO ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ONCE PRIVATELY AND PUBLICALLY. (Bosses: ONCE A DAY … make a short call or visit or send an A DAY … make a short call or visit or send an email of “Thanks” for some sort of XFX email of “Thanks” for some sort of XFX gesture by your folks and some other gesture by your folks and some other function’s folks.)function’s folks.) 6. Present counterparts in other functions awards for service to 6. Present counterparts in other functions awards for service to your group. Tiny awards at least weekly; and an “Annualyour group. Tiny awards at least weekly; and an “Annual All-Star All-Star Supporters [from other groups] Banquet” modeled after superstar Supporters [from other groups] Banquet” modeled after superstar salesperson banquets. salesperson banquets.

EXPLICITLYEXPLICITLY & & VISIBLYVISIBLY & &

RELENTLESSLY RELENTLESSLY MANAGE TO XFX MANAGE TO XFX

STANDARD!STANDARD!

5/5/11 Mouth, Mouth,

22 Ears Ears

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

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

18 …18 …

18 … 18 … secondsseconds!!

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

of of RespectRespect..

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

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

[cont.][cont.]

*Listening is of the*Listening is of the

utmost … utmost … STRATEGIC importance! importance!

*Listening is a proper … *Listening is a proper …

CORE VALUE ! ! *Listening is … *Listening is … TRAINABLE !!

*Listening is a … *Listening is a …

PROFESSION !!

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

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

EXCELLENCEEXCELLENCE as the as the Centerpiece of our Centerpiece of our

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

and Growth.”and Growth.”

6/6/Conrad Conrad Hilton …Hilton …

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

and asked,and asked, “What were the most important lessons you learned

in your long and distinguished

career?” His answer …His answer …

““Remember Remember to tuck the to tuck the

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

““EXECUTION EXECUTION ISIS STRATEGY.”STRATEGY.”

—Fred Malek—Fred Malek

WOWWOW!!!!Observed closely: The use ofObserved closely: The use of

“I”“I” oror “we”“we” during aduring a

job interview.job interview.

Source: Leonard Berry & Kent Seltman, chapter 6, “Hiring for Values,” Source: Leonard Berry & Kent Seltman, chapter 6, “Hiring for Values,” Management Lessons From Mayo ClinicManagement Lessons From Mayo Clinic

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

talk about talk about logistics.”logistics.”

——General Omar BradleyGeneral Omar Bradley

7/7/Mr. Clay’s Mr. Clay’s MantraMantra

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?”

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

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

and appreciating heart.”and appreciating heart.”

—Henry Clay,American Statesman (1777-1852)

Tom Peters’Tom Peters’

Re-ImagineRe-Imagine

EXCELLENCEEXCELLENCE!!

The National Productivity andThe National Productivity and Competitiveness CouncilCompetitiveness Council

Port Louis/16 April 2014Port Louis/16 April 2014(slides at tompeters.com; also see excellencenow.com)(slides at tompeters.com; also see excellencenow.com)

ExcellenceExcellence

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

““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

““Hard” is Soft.Hard” is Soft.““Soft” is hard.Soft” is hard.

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 game one 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

““Of Service”Of Service”

Organizations Organizations existexist to to serveserve. .

Period.Period.

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

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

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

RESPONSIBILITY to increase theRESPONSIBILITY to increase the “SUM OF “SUM OF HUMAN WELL-BEING.”HUMAN WELL-BEING.”

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

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

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

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

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

LeadershipLeadershipAxioms*Axioms*

**NOTNOT OPTIONAL OPTIONAL

MBWAMBWA

MManaginganaging

BBy y

WWanderingandering

AAroundround

2255

““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 You == Your Your calendar/calendar/

Your calendar Your calendar NEVERNEVER lies. lies.

You = Your You = Your calendarcalendar**

*The calendar *The calendar NEVERNEVER lies.lies.

ONEONE at at a Timea Time

““If there is any If there is any oneone

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

executives do first things first executives do first things first

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

timetime.”.”

——Peter DruckerPeter Drucker

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

““The The 44 most most

important important wordswords in any in any

organization are …organization are …

THE FOUR MOST IMPORTANT WORDS IN ANY ORGANIZATIONTHE FOUR MOST IMPORTANT WORDS IN ANY ORGANIZATION

ARE …ARE … “WHAT “WHAT DO DO YOUYOU THINK?”THINK?”

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

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

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

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

MBWA 12: MBWA 12: Change the WorldChange the World

With TWELVE Words With TWELVE Words

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

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

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

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

Should be able to get Should be able to get immediate answer upon immediate answer upon stopping anyone and stopping anyone and

asking,asking, “What have “What have you learned you learned

today?”today?”

#1#1 Failing Failing

““If I had to pick If I had to pick one failing of CEOs one failing of CEOs

……

““If I had to pickIf I had to pick oneone failing of CEOs, it’s failing of CEOs, it’s

that theythat they don’tdon’t readread

enouenougghh.”.”

——Co-founder of one of the world’s largest and most successful Co-founder of one of the world’s largest and most successful investment services firms (November 2013)investment services firms (November 2013)

Acknowledgement.Acknowledgement.

““The deepest principal The deepest principal in human nature is the in human nature is the

cravingcraving** to be to be appreciated.”appreciated.”

—William James—William James

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

(“The BIG Secret of Dealing With People”)(“The BIG Secret of Dealing With People”)

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

rarely make rarely make significant significant

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

K = R = K = R = PP

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

NONENONE of THE top 15 of THE top 15

factors determining factors determining PPatient atient

SSatisfaction referred to patient’s health atisfaction referred to patient’s health outcomeoutcome..

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

EmploEmployyee Satisfactionee Satisfaction

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

“There is a misconception that supportive interactions There is a misconception that supportive interactions require more staff or more time and are therefore more require more staff or more time and are therefore more costly. Although labor costs are a substantial part of any costly. Although labor costs are a substantial part of any hospital budget, the interactions themselves add nothing hospital budget, the interactions themselves add nothing

to the budget. to the budget.

KINDNESS IS KINDNESS IS FREEFREE.. Listening to patients or Listening to patients or

answering their questions costs nothing. It can be argued answering their questions costs nothing. It can be argued that negative interactions—alienating patients, being that negative interactions—alienating patients, being

non-responsive to their needs or limiting their sense of non-responsive to their needs or limiting their sense of control—can be very costly. … Angry, frustrated or control—can be very costly. … Angry, frustrated or

frightened patients may be combative, withdrawn and frightened patients may be combative, withdrawn and less cooperative—requiring far more time than it would less cooperative—requiring far more time than it would have taken to interact with them initially in a positive have taken to interact with them initially in a positive

way.”way.”

—Putting Patients First—Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel, Susan Frampton, Laura Gilpin, Patrick Charmel (Griffin Hospital/Derby CT; Planetree Alliance) (Griffin Hospital/Derby CT; Planetree Alliance)

Kindness = Kindness = Repeat Business =Repeat Business =

Profit.Profit.

Responsiveness/Responsiveness/Apology/ Apology/

““I’m sorry!”I’m sorry!”

““I regardI regard aappoloologgizinizing g as the as the most magical, healing, most magical, healing,

restorative gesture human restorative gesture human beings can make. It is thebeings can make. It is the

centercenterppieceiece of my of my work with executives who work with executives who

want to get better.”want to get better.”

——Marshall GoldsmithMarshall Goldsmith, What Got You Here Won’t Get You There: , What Got You Here Won’t Get You There: How Successful People Become Even More Successful. How Successful People Become Even More Successful.

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

PROBLEM. THEPROBLEM. THE

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

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

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

THREETHREE--MINUTEMINUTE PHONEPHONE CALLCALL WOULD WOULD

HAVE AVOIDED SETTING OFF THE HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RESULTED IN A COMPLETE

RUPTURE.RUPTURE.**

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

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

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

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

1/4,0961/4,096: excellencenow.com: excellencenow.com

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

rewarding lives …rewarding lives …

““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

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

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

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

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

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

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

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

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

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

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

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

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

““In a world where customers wakeIn a world where customers wake up every morning asking, ‘What’s up every morning asking, ‘What’s

new, what’s different, what’s new, what’s different, what’s amazing?’ amazing?’ … … success desuccess deppends on ends on a coma comppananyy’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 onland this can onlyy ha happppen en if all those folks are connected if all those folks are connected heart and soul to their heart and soul to their work work

[their ‘callin[their ‘callingg’], their com’], their comppananyy and their mission.and their mission.””

——John Mackey and Raj SisodaJohn Mackey and Raj Sisoda,, Liberating the Heroic Spirit of BusinessLiberating the Heroic Spirit of Business

““Contrary to conventional Contrary to conventional corporate thinking, treating corporate thinking, treating retail workers much better retail workers much better

may make everyone may make everyone (including their employers) (including their employers) much richer.”much richer.” —New York Times/ —New York Times/ 01.05.14,01.05.14,

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

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

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

““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)

““An organization can only become the-best-version-of-An organization can only become the-best-version-of-itself to the extent that the people who drive that itself to the extent that the people who drive that

organization are striving to become better-versions-of-organization are striving to become better-versions-of-themselves.” “A company’s purpose is to become the-themselves.” “A company’s purpose is to become the-

best-version-of-itself. The question is: What is an best-version-of-itself. The question is: What is an employee’s purpose? Most would say, ‘to help the employee’s purpose? Most would say, ‘to help the company achieve its purpose’—but they would be company achieve its purpose’—but they would be

wrong. That is certainly part of the employee’s role, but wrong. That is certainly part of the employee’s role, but an employee’s primary purpose is to become the-best-an employee’s primary purpose is to become the-best-

version of-himself or –herself. …version of-himself or –herself. … “When a “When a company forgets that it exists to company forgets that it exists to serve customers, it quickly goes serve customers, it quickly goes out of business. Our employees out of business. Our employees are our first customers, and our are our first customers, and our

most important customers.”most important customers.” ——Matthew Kelly, Matthew Kelly, The Dream ManagerThe Dream Manager

"When I hire "When I hire someone, that's someone, that's when when I I ggo to o to

work for work for themthem.”.” —John DiJulius,—John DiJulius, "What's the Secret to Providing "What's the Secret to Providing

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

"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!

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

Management Upside DownManagement Upside Down ——Vineet Nayar/CEO/HCL TechnologiesVineet Nayar/CEO/HCL Technologies

The Customer Comes The Customer Comes Second: Put Your People Second: Put Your People First and Watch ’Em Kick First and Watch ’Em Kick

ButtButt ——Hal Rosenbluth (former CEO, Rosenbluth InternationalHal Rosenbluth (former CEO, Rosenbluth International

““hostmanship”/hostmanship”/““consideration consideration

renovation”renovation”

““The path to a The path to a hostmanshihostmanshipp culture paradoxically does not go through the guest. culture paradoxically does not go through the guest. In fact it wouldn’t be totally wrong to say that the guest has nothing to do with it.In fact it wouldn’t be totally wrong to say that the guest has nothing to do with it. True True

hostmanship leaders focus on their employees. What drives exceptionalism is finding the right hostmanship leaders focus on their employees. What drives exceptionalism is finding the right people and getting them to love their work and see it as a passion. ... The guest comes into the people and getting them to love their work and see it as a passion. ... The guest comes into the picture only when you are ready to ask, ‘picture only when you are ready to ask, ‘Would you prefer to stay at a hotel where the staff love Would you prefer to stay at a hotel where the staff love

their work or where management has made customers its highest priority?’”their work or where management has made customers its highest priority?’” ““We We went throuwent througgh the hotel and made h the hotel and made aa ... ... ‘‘consideration renovation.consideration renovation.’’ Instead of redoinInstead of redoingg bathrooms, bathrooms,

dinindining g rooms, and rooms, and gguest rooms, we uest rooms, we ggave emave empploloyyees new uniforms, ees new uniforms, boubougght flowers and fruit, and ht flowers and fruit, and chanchangged colors.ed colors. Our focus was Our focus was

totalltotallyy on the staff. on the staff. TheTheyy were the were the ones we wanted to make haones we wanted to make happyppy.. We We

wanted them to wake up everwanted them to wake up everyy mornin morningg excited about a new da excited about a new dayy at work at work.” .” —Jan Gunnarsson and Olle —Jan Gunnarsson and Olle Blohm, Blohm, Hostmanship: Hostmanship:

The Art of Making People Feel WelcomeThe Art of Making People Feel Welcome..

“ … “ … The guest comes into The guest comes into the picture only when you the picture only when you are ready to ask, are ready to ask, ‘‘Would Would you prefer to stay at a you prefer to stay at a

hotel where the staff love hotel where the staff love their work or where their work or where

management has made management has made customers its highest customers its highest

priority?’priority?’””

… … NO LESS THAN NO LESS THAN

CATHEDRALSCATHEDRALS IN WHICH IN WHICH THE FULL AND AWESOME THE FULL AND AWESOME

POWER OF THE IMAGINATION POWER OF THE IMAGINATION AND SPIRIT AND NATIVE AND SPIRIT AND NATIVE

ENTREPRENEURIAL FLAIRENTREPRENEURIAL FLAIR OF OF DIVERSE INDIVIDUALSDIVERSE INDIVIDUALS IS IS

UNLEASHED IN PASSIONATE UNLEASHED IN PASSIONATE PURSUIT OF … PURSUIT OF … EXCELLENCEEXCELLENCE..

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.

Tom’s TIB* #1:Tom’s TIB* #1: Your principal moral Your principal moral obligation as a leader is to obligation as a leader is to

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

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

abilities. The abilities. The good news: This is also thegood news: This is also the

#1 mid- to long-term … #1 mid- to long-term …

profit maximization strategy profit maximization strategy!!* * This I Believe (courtesy Bill Caudill)This I Believe (courtesy Bill Caudill)

Our Mission

TO DEVELOP AND MANAGE TALENT;TO DEVELOP AND MANAGE TALENT;TO APPLY THAT TALENT,TO APPLY THAT TALENT,

THROUGHOUT THE WORLD, THROUGHOUT THE WORLD, FOR THE BENEFIT OF CLIENTS;FOR THE BENEFIT OF CLIENTS;TO DO SO IN PARTNERSHIP; TO DO SO IN PARTNERSHIP;

TO DO SO WITH PROFIT.TO DO SO WITH PROFIT.

WPP

7 Steps to Sustaining Success7 Steps to Sustaining Success

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

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

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

Brand Brand = =

Talent.Talent.

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

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

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

TableTable stakesstakes by by 20172017

““Customer engagement is Customer engagement is moving from relatively moving from relatively

isolated market transactions isolated market transactions to deeply connected and to deeply connected and

sustained social sustained social relationships. This basic relationships. This basic

change in how we do change in how we do business will make an impact business will make an impact on just about everything we on just about everything we

do.”do.”

Social Business By DesignSocial Business By Design:: Transformative Social Media Transformative Social Media Strategies For the Connected CompanyStrategies For the Connected Company —Dion Hinchcliffe & Peter Kim —Dion Hinchcliffe & Peter Kim

Seven Characteristics of the Social EmployeeSeven Characteristics of the Social Employee

1. 1. Engaged Engaged 2. 2. Expects Integration of the Expects Integration of the

Personal and ProfessionalPersonal and Professional3. 3. Buys Into the Brand’s StoryBuys Into the Brand’s Story4. 4. Born CollaboratorBorn Collaborator5. 5. ListensListens6. 6. Customer-CentricCustomer-Centric7. 7. Empowered Change AgentEmpowered Change Agent

Source: Cheryl Burgess & Mark Burgess, Source: Cheryl Burgess & Mark Burgess, The Social EmployeeThe Social Employee

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.”

2/year = 2/year = Legacy.Legacy.

2/year 2/year = =

legacy.legacy.

Promotion DecisionsPromotion Decisions

“life and “life and death death

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

““A man should A man should nevernever be promoted to a be promoted to a

managerial position if his managerial position if his vision focuses on people’s vision focuses on people’s weaknesses rather than on rather than on

their their strengths.”.” —Peter Drucker,—Peter Drucker,

The Practice of ManagementThe Practice of Management

Evaluation.Evaluation.

EVALUATING EVALUATING

PEOPLE = PEOPLE = #1#1

DIFFERENTIATORDIFFERENTIATORSource: Jack Welch, now Jeff Immelt onSource: Jack Welch, now Jeff Immelt on

GE’s top strategic skill ( GE’s top strategic skill (!!!!!!!!))

53 = 5353 = 53

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

should should NOTNOT be be standardized. standardized.

EVEREVER..

SelSelf-f-Evaluation.Evaluation.

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

affect everaffect everyyone around one around yyouou is what is what

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

BusinessBusiness #45) #45)

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

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

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

accurate his self-assessment is likely to be.

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

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

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

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

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

Hiring.Hiring.

““development can help great development can help great

people be even people be even better— better— but if but if I had a dollar to spend, I’d I had a dollar to spend, I’d

spendspend 70 cents70 cents getting the right person getting the right person

in the door.”in the door.” ——Paul Russell, Director, Leadership and Paul Russell, Director, Leadership and

Development, GoogleDevelopment, Google

““In short, hiring is In short, hiring is the the most immost impportant ortant

asasppect of businessect of business

and yet remainsand yet remains woefully woefully misunderstoodmisunderstood..””

Source: Source: Wall Street JournalWall Street Journal, 10.29.08,, 10.29.08,

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

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

TrainingTraining

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

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

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

people? people?

Reductionist Leadership TrainingReductionist Leadership Training

““Aggressive ‘professional’ listener.”Aggressive ‘professional’ listener.”Expert at questioning. (Questioning Expert at questioning. (Questioning “professional.”)“professional.”)Meetings as leadership opportunity #1.Meetings as leadership opportunity #1.Creating a “civil society.”Creating a “civil society.”Expert at “helping.” (HelpingExpert at “helping.” (Helping “professional.”) “professional.”)Expert at holding productive conversations.Expert at holding productive conversations.Fanatic about clear communications.Fanatic about clear communications.Fanatic about training.Fanatic about training.Master of appreciation/acknowledgement.Master of appreciation/acknowledgement.Effective at apology.Effective at apology.Creating a culture of automatic helpfulness by all to all.Creating a culture of automatic helpfulness by all to all.Presentation excellence. Presentation excellence. Conscious master of body language.Conscious master of body language.Master of hiring. (Hiring Master of hiring. (Hiring “professional”)“professional”)Master of evaluating people.Master of evaluating people.Time manager par excellence.Time manager par excellence.Avid practitioner of MBWA/Managing By Wandering Around. Avid practitioner of MBWA/Managing By Wandering Around. Avid student of the process of influencing others per se. Avid student of the process of influencing others per se. Student of decision-making and devastating impact of irrational aspects Student of decision-making and devastating impact of irrational aspects thereof.thereof.Brilliantly schooled student of negotiation.Brilliantly schooled student of negotiation.Creating a no-nonsense execution culture.Creating a no-nonsense execution culture.Meticulous about employee development/100% of staff.Meticulous about employee development/100% of staff.Student of the power of “d”iversity (all flavors of difference).Student of the power of “d”iversity (all flavors of difference).Aggressive in pursuing gender balance.Aggressive in pursuing gender balance.Making team-building excellence everyone’s daily priority.Making team-building excellence everyone’s daily priority.Understanding value of matchless 1st-line management.Understanding value of matchless 1st-line management.Instilling “business sense” in one and all.Instilling “business sense” in one and all.

Innovate or DieInnovate or Die

11/48/48

Lesson47:Lesson47: WTTMSWWTTMSW

WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTSTUFFSTUFFWINSWINS

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

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

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

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

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

##1010.. It It ggets back to ets back to pplanninlanningg versus actin versus acting: g: We act We act from day onefrom day one; ; others others pplan how lan how

toto p planlan——for monthsfor months.”.”

——Bloomberg by BloombergBloomberg by Bloomberg

““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

““REWARDREWARD excellent failures. PUNISHPUNISH mediocre

successes.”—Phil Daniels, Sydney exec

““The secret of fast The secret of fast progress is progress is

inefficiency, fast , fast and furious and and furious and

numerous failures.”numerous failures.”—Kevin Kelly

1/5,0001/5,000

“YOU MISS “YOU MISS

100100%% OF OF

THE SHOTS YOU THE SHOTS YOU NEVER TAKE.”NEVER TAKE.”

—Wayne—Wayne GretzkyGretzky

We AreWe Are What What

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’ ” ”

Measure/Manage: Portfolio “Strangeness”/ Measure/Manage: Portfolio “Strangeness”/ “Quality”“Quality”

1. Customers1. Customers2. Vendors2. Vendors3. Out-sourcing Partners3. Out-sourcing Partners4. Acquisitions4. Acquisitions5. Purposeful “Theft”5. Purposeful “Theft”6. Diversity/“d”iversity6. Diversity/“d”iversity7. Diversity/Crowd-sourcing7. Diversity/Crowd-sourcing8.8. Diversity/Weird Diversity/Weird 9.9. Diversity/CuriosityDiversity/Curiosity10. Benchmarks10. Benchmarks11. Calendar11. Calendar12. MBWA12. MBWA13. Lunch/General13. Lunch/General14. Lunch/Other functions14. Lunch/Other functions15. Location/Internal15. Location/Internal16. Location/HQ16. Location/HQ17. Top team17. Top team18. Board18. Board

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

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

OTHERS’ OTHERS’ INVENTIONS AT INVENTIONS AT

LEAST HALF LEAST HALF THE TIMETHE TIME.. One successfulOne successful

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

““DON’T DON’T BENCHMARK,BENCHMARK,

‘OTHER’ ‘OTHER’ MARKMARK!!””

WEWE ARE ARE THE THE COMPANYCOMPANY WE KEEP!WE KEEP!

MANAGEMANAGE IT! IT!

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

Infinite Infinite Diversity Diversity

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

Companies offering Companies offering work to online work to online

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

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

Hire For ItHire For It

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

Mike Bloomberg:Mike Bloomberg:

““Curiosity.”Curiosity.”

OuchOuch!!

“The Bottleneck …The Bottleneck …

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

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

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

Top of the Top of the Bottle”Bottle”

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

We Are WhatWe Are What We Eat: The We Eat: The “Fred Smith “Fred Smith Question”Question”

““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

Easier said Easier said than done …than done …

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

—Eleanor Roosevelt

Innovate or DieInnovate or Die

Innovation IndexInnovation Index:: How many of your Top 5Top 5 Strategic

Initiatives/Key Projects score 88 or higher or higher [out of 10] on a

“Weird”“Weird”//“Profound”“Profound”/ / “Wow”“Wow”//“Game-changer”“Game-changer”

Scale?

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

“Radically thrilling”“Radically thrilling” —BMW—BMW

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

““Build something great!”Build something great!” —Hiroshi Yamauchi/CEO Nintendo, to a game designer—Hiroshi Yamauchi/CEO Nintendo, to a game designer “Make it immortal!”“Make it immortal!” —David Ogilvy, to an ad copywriter—David Ogilvy, to an ad copywriter

““You know a design is good when you want to lick it.”You know a design is good when you want to lick it.” ——Steve JobsSteve Jobs

Raise your sights!Raise your sights!Blaze new trails!Blaze new trails!Compete with the immortals!Compete with the immortals!——David Ogilvy, on Ogilvy & Mather’s corporate cultureDavid Ogilvy, on Ogilvy & Mather’s corporate culture Wanted by Ogilvy & Mather International: Trumpeter SwansWanted by Ogilvy & Mather International: Trumpeter Swans—David Ogilvy—David Ogilvy

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

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

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

Kevin Roberts’ CredoKevin Roberts’ Credo

1.1. Ready. Fire! Aim. Ready. Fire! Aim.2.2. If it ain’t broke ... Break it! If it ain’t broke ... Break it!3.3. Hire crazies. Hire crazies.4.4. Ask dumb questions. Ask dumb questions.5.5. Pursue failure. Pursue failure.6.6. Lead, follow ... or get out of the way! Lead, follow ... or get out of the way!7.7. Spread confusion. Spread confusion.8.8. Ditch your office. Ditch your office.9.9. Read odd stuff. Read odd stuff.10.10. Avoid moderation! Avoid moderation!

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

Note: TWO Americans; EIGHT non-Americans (Kiwi, Aussie, Scotsman, 2 Japanese, Russian, German, Spaniard) Note: TWO Americans; EIGHT non-Americans (Kiwi, Aussie, Scotsman, 2 Japanese, Russian, German, Spaniard)

Iron Innovation Equality Law:Iron Innovation Equality Law: The quality and The quality and

quantity and quantity and imaginativenessimaginativeness

of innovation shall be of innovation shall be the same in all the same in all

functionsfunctions —e.g., in HR and —e.g., in HR and purchasing as much as in marketing or purchasing as much as in marketing or

product development.*product development.*

Value AddedValue Added

TGRs:TGRs:LBTsLBTs

LITTLE =LITTLE =

BIGBIG

Big carts =Big carts =

1.5X1.5XSource: WalmartSource: Walmart

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

$B$BSource: PepsiCoSource: PepsiCo

2X:2X: “When Friedman“When Friedman

slisligghtlhtly y curvedcurved the right angle of an the right angle of an

entrance corridor to one property, he entrance corridor to one property, he was ‘amazed at the magnitude of change was ‘amazed at the magnitude of change

in pedestrians’ behavior’—the in pedestrians’ behavior’—the percentage who entered increased from percentage who entered increased from

oneone--thirdthird to nearly to nearly twotwo--thirdsthirds.”.”

——Natasha Dow Schull, Natasha Dow Schull, Addiction By Design: Machine Gambling in Las VegasAddiction By Design: Machine Gambling in Las Vegas

Glaring Eyes:Glaring Eyes:

-62%-62%Source: PLOS ONE (via Source: PLOS ONE (via The Atlantic CITIESThe Atlantic CITIES /0429.13) /0429.13)

<TG<TGWWandand … …

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

(1)(1) Amenable to rapid Amenable to rapid experimentation/experimentation/ failure “free” (PR, $failure “free” (PR, $

$)$)(2)(2) Quick to implement/ Quick to implement/ Quick to Roll outQuick to Roll out(3)(3) Inexpensive to Inexpensive to implement/Roll outimplement/Roll out(4)(4) Huge multiplier Huge multiplier(5)(5) An “Attitude” An “Attitude”

TGRs:TGRs:CCNNOO

CCMMO/ MarketingO/ MarketingCCEEO/ExperienceO/Experience

CCNNO/eNgagementO/eNgagement

““Customer engagement is Customer engagement is moving from relatively isolated moving from relatively isolated market transactions to deeply market transactions to deeply connected and sustained social connected and sustained social relationships. This basic change relationships. This basic change in how we do business will make in how we do business will make

an impact on just about an impact on just about everything we do.”everything we do.”

Social Business By Design: Transformative Social Media StrategiesSocial Business By Design: Transformative Social Media Strategies For the Connected CompanyFor the Connected Company —Dion Hinchcliffe & Peter Kim —Dion Hinchcliffe & Peter Kim

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

SMSM/Social Media./Social Media.

SXSX/Social eXecutives./Social eXecutives.

SESE/Social Employees./Social Employees.

SOSO/Social /Social Organization.Organization.

SBSB/Social Business./Social Business.

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

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

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

TableTable stakesstakes by by 20172017

Social Survival Manifesto*Social Survival Manifesto*

1.1. Hiding is not an option. Hiding is not an option.2. Face it, you are outnumbered. (“level playing field, 2. Face it, you are outnumbered. (“level playing field,

arrogance denied”)arrogance denied”)3. You no longer control the message.3. You no longer control the message.4. Try acting like … a human being.4. Try acting like … a human being.5. Learn to listen, or else. (“REALLY listening to others a must”) 5. Learn to listen, or else. (“REALLY listening to others a must”) 6. Admit that you don’t have all the answers.6. Admit that you don’t have all the answers.7. Speak plainly and seek to inform.7. Speak plainly and seek to inform.8. Quit being a monolith. 8. Quit being a monolith. (“Your employees, speaking online as (“Your employees, speaking online as

individuals, are a crucial resource … can be managed through individuals, are a crucial resource … can be managed through frameworks that ENCOURAGE participation”)frameworks that ENCOURAGE participation”)

9. Try being less evil.9. Try being less evil.10. Pay it forward, now. 10. Pay it forward, now. (“Internet culture largely built on the (“Internet culture largely built on the

principal of the Gift Economy … give value away to your principal of the Gift Economy … give value away to your online communities”)online communities”)

*Tom Liacas; socialdisruptions.com*Tom Liacas; socialdisruptions.com

Winning in Marketplace 2013: An Ethos of HelpingWinning in Marketplace 2013: An Ethos of Helping ZMOT: ZMOT:

ZERO Moment Of Truth/GoogleZERO Moment Of Truth/Google**

““You know what a ‘moment of truth’ is. It’s when a You know what a ‘moment of truth’ is. It’s when a prospective customer decides either to take the next step prospective customer decides either to take the next step in the purchase funnel, or to exit and seek other options. in the purchase funnel, or to exit and seek other options. … But what is a ‘zero moment of truth’? Many behaviors … But what is a ‘zero moment of truth’? Many behaviors

can serve as a zero moment of truth, but what binds them can serve as a zero moment of truth, but what binds them together is that the purchase is being researched and together is that the purchase is being researched and considered before the prospect even enters the classic considered before the prospect even enters the classic

sales funnel … In its research, Google found that 84% of sales funnel … In its research, Google found that 84% of shoppers said the new mental modelshoppers said the new mental model, ,

ZMOTZMOT, , shapes their decisions. …” 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

TGRs:TGRs:8/808/80

CustomersCustomers describing their describing their service experience as service experience as

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

the service experience they the service experience they provide asprovide as

“ “superior”: superior”: 8080%%——Source: Bain & Company survey of 362 companies, reported in John DiJulius,Source: Bain & Company survey of 362 companies, reported in John DiJulius,

What's the Secret to Providing a World-class Customer Experience?What's the Secret to Providing a World-class Customer Experience?

It It BEGINSBEGINS (and (and ENDSENDS) )

in the …in the …

PARKINGPARKING LOTLOT**

*Disney*Disney

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

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

sir?”sir?”

<TG<TGWWandand … …

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

TGRTGRSS..MANAGEMANAGE ’EM. ’EM.

MEASUREMEASURE ’EM. ’EM.***I use “manage-measure” a lot. Translation: These are*I use “manage-measure” a lot. Translation: These are

not “soft” ideas; they are exceedingly important things not “soft” ideas; they are exceedingly important things that can be managed—AND measured. that can be managed—AND measured.

““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

CCXXO*O**Chief e*Chief eXXperience Officerperience Officer

TGRs:TGRs:

DESIGNDESIGN!!

Design Design RulesRules!!

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

*August 2011*August 2011

““Design is Design is

treated like treated like a relia religgionion at at

BMW.”*BMW.”* —Fortune—Fortune

**APPLEAPPLE market cap > Exxon Mobil (August 2011) market cap > Exxon Mobil (August 2011)

CCDDO*O**Chief *Chief DDesign Officeresign Officer

““Only one company Only one company can be the cheapest. can be the cheapest. All others must use All others must use design.”design.” —Rodney Fitch, Fitch & Co.—Rodney Fitch, Fitch & Co.

Source: Source: InsightsInsights, definitions of design, the Design Council [UK], definitions of design, the Design Council [UK]

Hypothesis:Hypothesis: DESIGNDESIGN is the is the pprincirincippalal

differencedifference

between between lovelove

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

HHypypothesisothesis: Men : Men

cannotcannot design for women’s design for women’s

needsneeds!!??!!??

WomenWomen BUY BUYWomenWomen RULE RULE

WomenWomen ROAR ROAR

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

ladies and gentlemen,ladies and gentlemen, THAT THIS THAT THIS WILL BE THE WILL BE THE

WOMAN’S CENTURYWOMAN’S CENTURY.. In the Portuguese language, words such as In the Portuguese language, words such as

life, soul, and hope are of the feminine life, soul, and hope are of the feminine gender, as are other words like courage and gender, as are other words like courage and

sincerity.” sincerity.”

——President Dilma Rousseff of Brazil, 1st woman to keynotePresident Dilma Rousseff of Brazil, 1st woman to keynote the United Nations General Assembly (2011)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

““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

““Research suggests thatResearch suggests that to succeed, start by to succeed, start by promoting women.”promoting women.”

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

boards far outperformed the average company in returnboards far outperformed the average company in return on equity and other measures. on equity and other measures.

Operating profit was 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

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

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

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

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

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

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

diversitydiversity..

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

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 Why YouWarren Buffett Invests Like a Girl: And Why YouShould TooShould Too, Louann Lofton, Chapter 2, “The Science Behind the Girl”, Louann Lofton, Chapter 2, “The Science Behind the Girl”

IBIBMMtoto

IIBBMM

““Lou, Your mission Lou, Your mission is to break the is to break the

company up and company up and release hidden release hidden

value!”value!”

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

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

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

How How SchlumberSchlumberggerer Is Rewriting the Rules of the Is Rewriting the Rules of the

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

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

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

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

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

drilling to drilling to production.”production.”

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

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

a technoloa technologygy comcomppananyy with with

truckstrucks.”.” —Forbes—Forbes

Huge:Huge: “Customer “Customer

SatisfactionSatisfaction with with product/Service” product/Service”

to to

“CUSTOMER “CUSTOMER SUCCESSSUCCESS””

Era #1/Obvious ValueEra #1/Obvious Value: “Our ‘it’ : “Our ‘it’ works, is delivered on time” works, is delivered on time” (“Close”)(“Close”)

Era #2/Augmented ValueEra #2/Augmented Value: : “How “How our ‘it’ can add value—a ‘useful it’ our ‘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

AndAnd the Winners the Winners

Are …Are …

Big STINKS:Big STINKS:Mid-size Mid-size

Superstars/The Superstars/The Masters of Masters of

FrankenmuthFrankenmuth

“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

THE RED THE RED CARPET CARPET STORESTORE

(Joel Resnick/Flemington NJ)(Joel Resnick/Flemington NJ)

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

Independent Independent Stores in Stores in

AmericaAmerica —by George Whalin—by George Whalin

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

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

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

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

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

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

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

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

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

Christmas.Christmas.

Lessons [for Everyone] from Lessons [for Everyone] from Retail Superstars!Retail Superstars!

1. Courses/Workshops/Demos/Engagement 1. Courses/Workshops/Demos/Engagement 2. Instructional guides/material/books2. Instructional guides/material/books3. Events & Events & Events …3. Events & Events & Events …4. Create “Community” of customers 4. Create “Community” of customers 5. Destination 5. Destination 6. Women-as-customer6. Women-as-customer7. Staff selection/training/retention (FANATICISM) 7. Staff selection/training/retention (FANATICISM) 8. Fanaticism/Execution 8. Fanaticism/Execution 9. Design/Atmospherics/Ambience 9. Design/Atmospherics/Ambience 10. Tableaus/Products-in-use 10. Tableaus/Products-in-use 11. Flow/starts & finishes (Disney-like)11. Flow/starts & finishes (Disney-like)12. 100% orchestrated experience/focus: “Moments of 12. 100% orchestrated experience/focus: “Moments of

truth” truth” 13. Constant experimentation/Pursue Little BIG Things 13. Constant experimentation/Pursue Little BIG Things 14. Social Media/Ongoing conversation with customers 14. Social Media/Ongoing conversation with customers 15. Community star 15. Community star 16. Aim high16. Aim high17. PASSION17. PASSION

MITTELSTANDMITTELSTAND* *** **

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

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

““BE THE BEST.BE THE BEST. IT’S THE ONLY IT’S THE ONLY MARKET THAT’S MARKET THAT’S NOT CROWDED.”NOT CROWDED.”

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

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

Great Instead of BigGreat Instead of Big

“ ‘“ ‘Commodity’ is a Commodity’ is a state of mind. state of mind.

ANYTHINGANYTHING can be can be DRAMATICALLYDRAMATICALLY differentiated.”differentiated.”

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

““THEY CULTIVATED THEY CULTIVATED EXCEPTIONALLY INTIMATE EXCEPTIONALLY INTIMATE RELATIONSHIPS WITH CUSTOMERS AND SUPPLIERSRELATIONSHIPS WITH CUSTOMERS AND SUPPLIERS, , based based on personal contact, one-on-one interaction, and mutual on personal contact, one-on-one interaction, and mutual commitment to delivering on promises.commitment to delivering on promises.

“EACH COMPANY HAD AN ACH COMPANY HAD AN EXTRAORDINARILY INTIMATE EXTRAORDINARILY INTIMATE RELATIONSHIP WITH THE LOCAL CITY, TOWN, OR COUNTYRELATIONSHIP WITH THE LOCAL CITY, TOWN, OR COUNTY in in which it did business -- a relationship that went well beyond which it did business -- a relationship that went well beyond the usual concept of `giving back.’ the usual concept of `giving back.’

““The companies had what struck me asThe companies had what struck me as UNUSUALLY UNUSUALLY INTIMATE WORKPLACESINTIMATE WORKPLACES..

““I noticed theI noticed the PASSIONPASSION that the leaders brought to what the that the leaders brought to what the company did.company did. THEY LOVED THE SUBJECT MATTERTHEY LOVED THE SUBJECT MATTER, , whether it whether it be music, safety lighting, food, special effects, constant be music, safety lighting, food, special effects, constant torque hinges, beer, records storage, construction, dining, torque hinges, beer, records storage, construction, dining, or fashion."or fashion."

14,00014,00020,00020,000

3030

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

3030/Craigslist/Craigslist

Kevin Roberts’ CredoKevin Roberts’ Credo

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

10. AVOID MODERATIONAVOID MODERATION!!

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

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

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

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

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

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

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

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

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

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

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

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

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

——RFKRFK

This Is the This Is the [OBVIOUS][OBVIOUS] Stuff I Care About. Stuff I Care About.

This Is the This Is the [OBVIOUS][OBVIOUS] Stuff, the Absence ofStuff, the Absence of

Which Sends Me Into a …Which Sends Me Into a …

BLIND RAGEBLIND RAGE..

Tom Peters/11 April 2014Tom Peters/11 April 2014

The 27 BFOsThe 27 BFOs**

*Blinding Flash(es) of the Obvious*Blinding Flash(es) of the Obvious

BFO #1:BFO #1: If you [RELIGIOUSLY] help people— If you [RELIGIOUSLY] help people— EVERY SINGLE PERSON, JUNIOR OR EVERY SINGLE PERSON, JUNIOR OR SENIOR, LIFER OR TEMPSENIOR, LIFER OR TEMP—grow and —grow and reach/exceed their perceived potential, then reach/exceed their perceived potential, then they in turn will bust their individual and they in turn will bust their individual and collective butts to create great experiences for collective butts to create great experiences for Clients—and the “bottom line” will get fatter Clients—and the “bottom line” will get fatter and fatter and fatter. (ANYBODY LISTENING?) and fatter and fatter. (ANYBODY LISTENING?)

((PEOPLEPEOPLE FIRSTFIRST = = MAXIMIZEDMAXIMIZED PROFITABILITYPROFITABILITY. . PERIODPERIOD.) .) (ANYBODY LISTENING?)(ANYBODY LISTENING?) (FYI: (FYI: “People “People FIRST” message 10X more urgent than ever in FIRST” message 10X more urgent than ever in the high-engagement “AGE OF SOCIAL the high-engagement “AGE OF SOCIAL BUSINESS.”)BUSINESS.”)

BFO 2:BFO 2: ENABLING “ALL HANDS” ENABLING “ALL HANDS” GROWTH/PERSONAL DEVELOPMENT IS GROWTH/PERSONAL DEVELOPMENT IS LEADERLEADERDUTY #1DUTY #1.. (And ALL good things flow there from.)(And ALL good things flow there from.)

BFO 3:BFO 3: The “CTO”/Chief Training Officer The “CTO”/Chief Training Officer

should should [MUST!][MUST!] be on a par with the be on a par with the CFO/CMOCFO/CMO.. (In a 45-minute “tour d’horizon” of the (In a 45-minute “tour d’horizon” of the enterprise: GUARANTEE 9 of 10 CEOs* [*10 of 10?] wouldn’t enterprise: GUARANTEE 9 of 10 CEOs* [*10 of 10?] wouldn’t once mention training. THAT = DISGRACE.)once mention training. THAT = DISGRACE.)

BFO 2:BFO 2: ENABLING “ALL HANDS” GROWTH IS LEADER ENABLING “ALL HANDS” GROWTH IS LEADER DUTY #1.DUTY #1. (And ALL good things flow there from.) (And ALL good things flow there from.)

BFO 3:BFO 3: The “CTO”/Chief Training Officer should The “CTO”/Chief Training Officer should [MUST!] be on a par with the CFO/CMO.[MUST!] be on a par with the CFO/CMO. (In a 45- (In a 45-minute “tour d’horizon” of the enterprise: GUARANTEE 9 of 10 minute “tour d’horizon” of the enterprise: GUARANTEE 9 of 10 CEOs* [*10 of 10?] wouldn’t once mention training. THAT = CEOs* [*10 of 10?] wouldn’t once mention training. THAT = DISGRACE.)DISGRACE.)

BFO 4:BFO 4: OUT-READ ‘EM. AGE 17. AGE 77.OUT-READ ‘EM. AGE 17. AGE 77. 2014: READ & GROW 2014: READ & GROW … or wilt. … or wilt. (One financial services superstar pegs CEO prob #1: “They (One financial services superstar pegs CEO prob #1: “They don’t read enough.”) STUDENTHOOOD [OBSESSION THERE don’t read enough.”) STUDENTHOOOD [OBSESSION THERE WITH] [for ALL of us] FOR LIFE!WITH] [for ALL of us] FOR LIFE!

BFO 5:BFO 5: Organizations exist for ONE reason … Organizations exist for ONE reason … TO BE OF TO BE OF SERVICE. SERVICE. PERIODPERIOD.. (And effective leaders in turn are … (And effective leaders in turn are …

SERVANT LEADERS. SERVANT LEADERS. PERIODPERIOD.).)

BFO 2:BFO 2: ENABLING “ALL HANDS” GROWTH IS LEADER ENABLING “ALL HANDS” GROWTH IS LEADER DUTY #1.DUTY #1. (And ALL good things flow there from.) (And ALL good things flow there from.)

BFO 3:BFO 3: The “CTO”/Chief Training Officer should The “CTO”/Chief Training Officer should [MUST!] be on a par with the CFO/CMO.[MUST!] be on a par with the CFO/CMO. (In a 45- (In a 45-minute “tour d’horizon” of the enterprise: GUARANTEE 9 of 10 minute “tour d’horizon” of the enterprise: GUARANTEE 9 of 10 CEOs* [*10 of 10?] wouldn’t once mention training. THAT = CEOs* [*10 of 10?] wouldn’t once mention training. THAT = DISGRACE.)DISGRACE.)

BFO 4:BFO 4: OUT-READ ‘EM. AGE 17. AGE 77.OUT-READ ‘EM. AGE 17. AGE 77. 2014: READ & GROW 2014: READ & GROW … or wilt. … or wilt. (One financial services superstar pegs CEO prob #1: “They (One financial services superstar pegs CEO prob #1: “They don’t read enough.”) STUDENTHOOOD [OBSESSION THERE don’t read enough.”) STUDENTHOOOD [OBSESSION THERE WITH] [for ALL of us] FOR LIFE!WITH] [for ALL of us] FOR LIFE!

BFO 5:BFO 5: Organizations exist for ONE reason … Organizations exist for ONE reason … TO BE OF TO BE OF SERVICE. SERVICE. PERIODPERIOD.. (And effective leaders in turn are … (And effective leaders in turn are …

SERVANT LEADERS. SERVANT LEADERS. PERIODPERIOD.).)

BFO 6:BFO 6: The … HEART OF THE MATTER [productivity, The … HEART OF THE MATTER [productivity, quality, service, you name it] … is the typically under-quality, service, you name it] … is the typically under-

attended … attended … FIRST-LINE BOSSFIRST-LINE BOSS. (Your FULL CADRE . (Your FULL CADRE

of 1st-line bosses is arguably … of 1st-line bosses is arguably … ASSET #1ASSET #1.) .)

BFO 7:BFO 7: WTTMSWWTTMSW. [Whoever Tries The Most . [Whoever Tries The Most Stuff Wins.] WTTMSASTMSUTFW. [Whoever Tries The Stuff Wins.] WTTMSASTMSUTFW. [Whoever Tries The Most Stuff And Screws The Most Stuff Up The Fastest Most Stuff And Screws The Most Stuff Up The Fastest Wins.]Wins.]

““A Bias For Action”: A Bias For Action”: #1#1 Success Requisite in 1982. Success Requisite in 1982.

““A Bias For Action”: A Bias For Action”: #1#1 Success Requisite in 2014. Success Requisite in 2014.

BFO 8:BFO 8: “Fail faster. Succeed sooner.” “Fail faster. Succeed sooner.”

““Fail. Forward. Fast.”Fail. Forward. Fast.”““Fail. Fail again. Fail better.”Fail. Fail again. Fail better.”““REWARD excellent failures. PUNISH mediocre REWARD excellent failures. PUNISH mediocre successes.”successes.”Book/Farson: “Whoever Makes The Most Mistakes Book/Farson: “Whoever Makes The Most Mistakes Wins.”Wins.”

BFO 9:BFO 9: Enabling change: It’s NOT NOT NOT Enabling change: It’s NOT NOT NOT about “vanquishing [ignorant] foes.” It’s ALL about “vanquishing [ignorant] foes.” It’s ALL ALL ALL about recruiting and nurturing … ALL ALL about recruiting and nurturing …

ALLIESALLIES..

BFO 10:BFO 10: Year = 220 lunches. WASTE NOT Year = 220 lunches. WASTE NOT ONEONE. Cross-functional SNAFUs #1 problem . Cross-functional SNAFUs #1 problem for most orgs. Software … WILL NOT … fix it. for most orgs. Software … WILL NOT … fix it. ONLY … “Social Stuff” works—e.g., makin’ ONLY … “Social Stuff” works—e.g., makin’ pals in other functions; lunch = Strategy #1. pals in other functions; lunch = Strategy #1. Goal: Goal: XFX/Cross-Functional ExcellenceXFX/Cross-Functional Excellence … … or die trying.or die trying.

BFO 11:BFO 11: Excellence is NOT an “aspiration.” Excellence is NOT an “aspiration.” Excellence IS the next 5 minutes. Excellence IS the next 5 minutes. (Or not.)(Or not.)

BFO 12:BFO 12: In Search of Excellence theme song: In Search of Excellence theme song: “Hard is soft. Soft is Hard.”“Hard is soft. Soft is Hard.” (E.g., Numbers (E.g., Numbers are the “soft stuff”—witness the crash. Solid are the “soft stuff”—witness the crash. Solid relationships/ integrity/trust/teamwork = True “hard relationships/ integrity/trust/teamwork = True “hard stuff.”)stuff.”)

Strategy is important.Strategy is important.Systems are important.Systems are important.

CULTURE is … CULTURE is … MOREMORE IMPORTANT. IMPORTANT.

(Serious change = Tackling the culture. PERIOD.)(Serious change = Tackling the culture. PERIOD.)(Even “Mr. Analysis,” In his autobiography, Lou (Even “Mr. Analysis,” In his autobiography, Lou Gerstner, IBM turnaround CEO, reluctantly Gerstner, IBM turnaround CEO, reluctantly acknowledged culture’s unequivocal primacy in the big-acknowledged culture’s unequivocal primacy in the big-change-game.)change-game.)

BFO 13:BFO 13: Apple’s market cap surpasses ExxonMobil’s. Apple’s market cap surpasses ExxonMobil’s.

Why? Why? D-E-S-I-G-ND-E-S-I-G-N. Are . Are YOUYOU obsessed by … obsessed by … DESIGNDESIGN? (In EVERY nook and EVERY cranny of EVERY ? (In EVERY nook and EVERY cranny of EVERY tiny or humongous enterprise—tiny or humongous enterprise—and in your own and in your own professional affairs.)professional affairs.)

BFO 14:BFO 14: WOMENWOMEN BUY EVERYTHING. BUY EVERYTHING. WOMENWOMEN ARE THE MOST EFFECTIVE ARE THE MOST EFFECTIVE LEADERS. LEADERS. WOMENWOMEN ARE THE MOST ARE THE MOST SUCCESSFUL INVESTORS.SUCCESSFUL INVESTORS. (Does your (Does your organization … UNMISTAKABLY … reflect that from stem organization … UNMISTAKABLY … reflect that from stem to stern?)to stern?)

BFO 15:BFO 15: Forget B-I-G. (100% of biggies UNDER-perform Forget B-I-G. (100% of biggies UNDER-perform long-term.) Instead build national wealth around …long-term.) Instead build national wealth around …

“MITTELSTAND” companies—“MITTELSTAND” companies—MIDSIZE SUPERSTAR MIDSIZE SUPERSTAR NICHE-/MICRO-NICHE DOMINATORS NICHE-/MICRO-NICHE DOMINATORS —in ANY category you can name. (C.f., Germany.) —in ANY category you can name. (C.f., Germany.) (Battle cry: “Be the best. It’s the only market that’s not (Battle cry: “Be the best. It’s the only market that’s not crowded.” crowded.” WHYWHY ELSEELSE BOTHERBOTHER?)?)

BFO 16:BFO 16: The problem is RARELY the problemThe problem is RARELY the problem. The . The lackluster RESPONSE to the problem is invariably the lackluster RESPONSE to the problem is invariably the real problem. Answer? Slavishly adhere to these two real problem. Answer? Slavishly adhere to these two response commandments: response commandments: OVERKILL. OVERKILL. UNEQUIVOCAL APOLOGY. UNEQUIVOCAL APOLOGY.

BFO 17:BFO 17: What do people [most] desire—including thee What do people [most] desire—including thee

and me? and me? ACKNOWLEDGEMENTACKNOWLEDGEMENT. . So: Show your appreciation … BIG TIME/ALL THE TIME. So: Show your appreciation … BIG TIME/ALL THE TIME. (Track it … RELIGIOUSLY!) (“Acknowledgement” is … (Track it … RELIGIOUSLY!) (“Acknowledgement” is … THE MOST POWERFUL WORD IN THE LEADER’S THE MOST POWERFUL WORD IN THE LEADER’S VOCABULARY.)VOCABULARY.)

BFO 18:BFO 18: The two most powerful words in the English The two most powerful words in the English language are? language are?

No contest: No contest: “THANK YOU.” “THANK YOU.” (ACT ACCORDINGLY—e.g., OBSESSIVELY.)(ACT ACCORDINGLY—e.g., OBSESSIVELY.)

BFO 19:BFO 19: Have you done your Have you done your MBWAMBWA/ Managing By / Managing By Wandering Around … TODAY? If not, why not? (Hint: Wandering Around … TODAY? If not, why not? (Hint: There There are … are … ZEROZERO ACCEPTABLE EXCUSES.) ACCEPTABLE EXCUSES.)

BFO 20:BFO 20: Your CALENDAR knows your TRUE priorities. Your CALENDAR knows your TRUE priorities.Do YOU?Do YOU?

You … ARE … your calendar.You … ARE … your calendar.Your calendar … NEVER LIES.Your calendar … NEVER LIES.

BFO 21:BFO 21: What is the individual’s/organization’s #1 What is the individual’s/organization’s #1 enduring strategic asset? Easy: ASSET #1 = INDIVIDUAL enduring strategic asset? Easy: ASSET #1 = INDIVIDUAL AND COLLECTIVE EXCELLENCE AT … AND COLLECTIVE EXCELLENCE AT …

L-I-S-T-E-N-I-N-G.L-I-S-T-E-N-I-N-G. (Listening can be … (Listening can be … TAUGHT. Listening PER SE is a … PROFESSION. Are YOU TAUGHT. Listening PER SE is a … PROFESSION. Are YOU a “stellar professional listener”? THINK ABOUT IT. a “stellar professional listener”? THINK ABOUT IT. PLEASE.)PLEASE.)

BFO 22:BFO 22: Aim to make EVERY internal and external Aim to make EVERY internal and external experience (PRODUCT/ SERVICE/SYSTEM/EMPLOYEE experience (PRODUCT/ SERVICE/SYSTEM/EMPLOYEE INTERACTION/CUSTOMER INTERACTION/ COMMUNITY INTERACTION/CUSTOMER INTERACTION/ COMMUNITY

INTERACTION) a … INTERACTION) a … WOW!WOW! (WOW = WOW. (WOW = WOW.

USE THE USE THE ““W-WORD” PER SE! E.g., W-WORD” PER SE! E.g., Do 4 out of your Top 5 Do 4 out of your Top 5 projects score 8 or above on a 10-pointprojects score 8 or above on a 10-point““WOW Scale”?WOW Scale”? If not, get on it: If not, get on it: NOW. NOW. TODAY. TODAY. WITHIN THE HOUR.)WITHIN THE HOUR.)

BFO 23:BFO 23: While on the topic of … WOW: While on the topic of … WOW: White collar work is by and large ticketed to fall prey to White collar work is by and large ticketed to fall prey to artificial intelligence/eye-popping algorithms as well as artificial intelligence/eye-popping algorithms as well as globalization. Stand there and take it on the chin?globalization. Stand there and take it on the chin?NO.NO.My answer (1999 book, My answer (1999 book, The Professional Service Firm The Professional Service Firm 50): 50):

CONVERT EVERY “DEPARTMENT”/ “UNIT” CONVERT EVERY “DEPARTMENT”/ “UNIT” [AND YOURSELF] INTO A FULL-FLEDGED … [AND YOURSELF] INTO A FULL-FLEDGED … “PSF”/PROFESSIONAL SERVICES FIRM … “PSF”/PROFESSIONAL SERVICES FIRM … WHOLLY DEDICATED TO EXCELLENCE & WOW WHOLLY DEDICATED TO EXCELLENCE & WOW & ADDING SKYSCRAPING VALUE TO THEIR & ADDING SKYSCRAPING VALUE TO THEIR CUSTOMERS’ [USUALLY INTERNAL CUSTOMERS’ [USUALLY INTERNAL CUSTOMERS] ACTIVITIES.CUSTOMERS] ACTIVITIES.Why not?Why not?There is no good reason not to proceed in this direction There is no good reason not to proceed in this direction within the fortnight!within the fortnight!

BFO 24:BFO 24: EVERYEVERY DAY PROVIDES A DOZEN DAY PROVIDES A DOZEN [LITERALLY] LEADERSHIP [LITERALLY] LEADERSHIP OPPORTUNITIES FOR OPPORTUNITIES FOR EVERYEVERY ONE OF US. ONE OF US. (Every = EVERY. From the most junior—(Every = EVERY. From the most junior—and and even the 3-day temp—even the 3-day temp—to the Big Dudes.)to the Big Dudes.)GRAB AT LEAST ONE.GRAB AT LEAST ONE.

BFO 25:BFO 25: CIVILITY WORKS. CIVILITY PAYS. CIVILITY WORKS. CIVILITY PAYS. E.g.: E.g.: K = R = P.K = R = P. Kindness = Repeat business = Profit.Kindness = Repeat business = Profit.(ONE MORE TIME: “Kindness” is N-O-T “Soft.”)(ONE MORE TIME: “Kindness” is N-O-T “Soft.”)

BFO 26:BFO 26: Most of us/most organizations Most of us/most organizations discount … INTROVERTS. THAT IS A … 1ST discount … INTROVERTS. THAT IS A … 1ST ORDER STRATEGIC BLUNDER.ORDER STRATEGIC BLUNDER. [Please read [Please read Susan Cain’s book Susan Cain’s book QUIET. It was a no-bull QUIET. It was a no-bull lifechanger for me.]lifechanger for me.]

BFO 27:BFO 27: Listen [HARD] to my old D.C. boss, Listen [HARD] to my old D.C. boss, Fred Malek:Fred Malek:

““EXECUTION EXECUTION ISIS STRATEGY.” STRATEGY.” (Execution: That all-important … “LAST 99 (Execution: That all-important … “LAST 99 PERCENT.”)PERCENT.”)