Tom Peters’ EXCELLENCE. ALWAYS. Zagreb/ICPE/05 June 2008

Tom Peters’ Tom Peters’

EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.

Zagreb/ICPE/05 June 2008Zagreb/ICPE/05 June 2008

““The capacity to develop close and The capacity to develop close and enduring relationships is the mark of enduring relationships is the mark of a leader. Unfortunately, many leaders a leader. Unfortunately, many leaders of major companies believe their job of major companies believe their job is to create the strategy, organization is to create the strategy, organization

structure and organizational structure and organizational processes—then they just delegate processes—then they just delegate

the work to be done, remaining aloof the work to be done, remaining aloof from the people doing from the people doing

the work.”the work.” —Bill George, —Bill George, Authentic LeadershipAuthentic Leadership

EXCELLENCE.EXCELLENCE. ALWAYS.ALWAYS.Zagreb/05 June 2008Zagreb/05 June 2008

NOTENOTE:: To appreciateTo appreciate this presentation this presentation [and ensure [and ensure

that it is not a that it is not a messmess],], you need you need Microsoft fonts:Microsoft fonts:

“Showcard Gothic,”“Showcard Gothic,” “Ravie,”“Ravie,” “Chiller”“Chiller”

andand “Verdana”“Verdana”

I. I. Have.Have.

Nothing.Nothing.New.New.To.To.Say.Say.

Zagreb/05 June 2008Zagreb/05 June 2008

““The West spent … The West spent … $$2.32.3 trilliontrillion

on foreign aid over the last five decades on foreign aid over the last five decades and still has and still has not not managed to get twelve-managed to get twelve-

cent medicines to children to prevent half of cent medicines to children to prevent half of all malaria deaths. The West spent $2.3 all malaria deaths. The West spent $2.3

trillion and still trillion and still notnot managed to get three managed to get three dollars to each new mother to prevent five dollars to each new mother to prevent five

million child deaths. …million child deaths. … But I and But I and many other like-minded many other like-minded

people keep trying, not to people keep trying, not to abandon aid to the poor, but abandon aid to the poor, but

to to makemake suresure it reachesit reaches themthem.”.”

L(+21) = L(-L(+21) = L(-21)21)

““The West spent … The West spent … $$2.32.3 trilliontrillion

on foreign aid over the last five decades on foreign aid over the last five decades and still has and still has not not managed to get twelve-managed to get twelve-

cent medicines to children to prevent half of cent medicines to children to prevent half of all malaria deaths. The West spent $2.3 all malaria deaths. The West spent $2.3

trillion and still trillion and still notnot managed to get three managed to get three dollars to each new mother to prevent five dollars to each new mother to prevent five

million child deaths. …million child deaths. … But I and But I and many other like-minded many other like-minded

people keep trying, not to people keep trying, not to abandon aid to the poor, but abandon aid to the poor, but

to to makemake suresure it reachesit reaches themthem.”.”

Leadership(21A.D.) = Leadership(21A.D.) = Leadership(21B.C.)Leadership(21B.C.)

““Ninety Ninety percent of percent of success is success is

showing up.” showing up.” ——Woody AllenWoody Allen

““Allied commands depend Allied commands depend on mutual confidence on mutual confidence [and this confidence] [and this confidence] is gained, above all, is gained, above all,

through the through the develodeveloppmentment of friendshiof friendshippss.”.”

——General D.D. Eisenhower, General D.D. Eisenhower, Armchair GeneralArmchair General* (05.08)* (05.08)

*“Perhaps his most outstanding ability [at West Point] was*“Perhaps his most outstanding ability [at West Point] was the ease with which he made friends and earned the trust the ease with which he made friends and earned the trust of fellow cadets who came from widely varied backgrounds;of fellow cadets who came from widely varied backgrounds; it was a quality that would pay great dividends during his it was a quality that would pay great dividends during his

future coalition commandfuture coalition command

18’18’

Excellence1982: The Bedrock “Eight Basics”Excellence1982: The Bedrock “Eight Basics”

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

““Breakthrough” 82*Breakthrough” 82*

People! People! CustomersCustomers

! ! Action! Action! Values! Values!

**In Search of ExcellenceIn Search of Excellence

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

employees like employees like customers.”customers.” —Herb Kelleher, —Herb Kelleher,

upon being asked his “secret to success”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 on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots union took out a full-pageat Southwest Airlines (SWA’s pilots union took out a full-page ad in USA Today thanking HK for all he had done; across thead in USA Today thanking HK for all he had done; across the

way in Dallas American Airlines’ pilots were picketing theway in Dallas American Airlines’ pilots were picketing the Annual Meeting)Annual Meeting)

Why in Why in the the World did World did youyou go to go to SiberiaSiberia??

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

concerted humanconcerted human potential in the potential in the wholeheartedwholehearted serviceservice of others of others.****Employees, Customers, Suppliers, Communities, Owners, Temporary partners**Employees, Customers, Suppliers, Communities, Owners, Temporary partners

““Excellence can be obtained if you:Excellence can be obtained if you: ... care more than others think... care more than others think is wise;is wise; ... risk more than others think ... risk more than others think is safe;is safe; ... dream more than others think ... dream more than others think is practical;is practical; ... expect more than others think ... expect more than others think is possible.”is possible.”

Source: Anon.Source: Anon. (Posted @ tompeters.com by (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)K.Sriram, November 27, 2006 1:17 AM)

Slides at …

tompeters.comtompeters.com

““We Have …We Have …

ThankThank you, you,

Starbucks!Starbucks!

Sports:Sports: You You beat beat

yourself!yourself!

InternalInternal organizational organizational

excellenceexcellence* *** ** = = Deepest “Blue Deepest “Blue

Ocean”Ocean”

**A “Blue ocean” is by A “Blue ocean” is by definition very profitable … definition very profitable … and will be and will be quicklyquickly copiedcopied. .

““sustainablesustainable blueblue” (Internal ” (Internal organizational excellence) is organizational excellence) is

far more far more difficultdifficult to copy. to copy.

ThankThank you Rich! you Rich!

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

or …or …*Rich D’Aveni/*Rich D’Aveni/HBRHBR

The The “Have “Have you …”you …”

50*50**See *See Appendix OneAppendix One

1. Have you in the1. Have you in the last last 1010 daysdays … … visitedvisited a a customer?customer?2. Have you called a 2. Have you called a customer … customer … TODAYTODAY?? * * * * * *

1. 1. Have you in the last 10 days … visited a Have you in the last 10 days … visited a customecustomer?r?2. 2. Have you called a customer … Have you called a customer … TODAYTODAY??3. Have you in the last 60-90 days … had a seminar in which several folks from the 3. Have you in the last 60-90 days … had a seminar in which several folks from the customer’s operation (different levels, different functions, different divisions) interacted, customer’s operation (different levels, different functions, different divisions) interacted, via facilitator, with various of your folks?via facilitator, with various of your folks?

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

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

answer seems obvious: Buy a Buy a very large one very large one and just waitand just wait.”.”

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

““Mr. Foster and his McKinsey Mr. Foster and his McKinsey colleagues collected detailed colleagues collected detailed

performance data stretching back performance data stretching back 4040 years for years for 1,0001,000 U.S. companies. U.S. companies. They

found that none of the long-term survivors managed to

outperform the market. Worse, the longer companies had been in the

database, the worse they did.” —Financial —Financial TimesTimes

$10,000,000/Day

Mission impossible?Mission impossible?

$36B/’98$36B/’98minus minus

$675M/‘$675M/‘0707

$10,000,000/Day

Dick Kovacevich: You don’t get better by

being bigger. You get worse.”

The The lastlast word: word: There There is is nono “last “last

word.”word.”

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

our control:our control: Everything in existence tends to deteriorate.” —Norberto Odebrecht, —Norberto Odebrecht, Education Through WorkEducation Through Work

C.E.O.C.E.O. to

C.D.O.C.D.O.

CChief hief DDestruction estruction

OOfficerfficer

““It is It is notnot the the strongest of the strongest of the

species that survives, species that survives, nornor the most the most

intelligent, but intelligent, but the the one most one most responsive responsive

to changeto change.”.” —Charles Darwin

#1 Exporter?#1 Exporter?

#4 Japan#4 Japan#2 USA#2 USA#2 China#2 China

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

#2 China#2 China

#1 #1 GermanyGermany

Reason?Reason?

Daimler?Daimler?BASF?BASF?

Siemens?Siemens?

Reason!!!Reason!!!

MittelstandMittelstand

Or …Or … Goldmann Goldmann ProduktionProduktion

ss(11/50%/$5M/”dip and coat,” expensive (11/50%/$5M/”dip and coat,” expensive

pigments vs “through coloring,” fades Bekro pigments vs “through coloring,” fades Bekro Chemie)Chemie)

Focus:Focus: “A recent study by “A recent study by [Stanford] Business School faculty [Stanford] Business School faculty

shows that producers whose shows that producers whose offerings or expertise are more offerings or expertise are more

clearly associated with one or two clearly associated with one or two product categories have better product categories have better

salessales than those whose goods or than those whose goods or

professional identity span multiple professional identity span multiple categories.categories. More focused producers throw More focused producers throw

off subtle hints that they know their stuff, off subtle hints that they know their stuff, which is not lost on customers. In short, says which is not lost on customers. In short, says

professor Michael Hannan, ‘The jack of all professor Michael Hannan, ‘The jack of all trades is the master of none governs consumer trades is the master of none governs consumer

choices of whose goodies to buy.’ ”choices of whose goodies to buy.’ ” —Stanford —Stanford Business, 0208Business, 0208

Focus: “All Strategy Is Local:“All Strategy Is Local: True competitive advantages True competitive advantages

are harder to find and maintain are harder to find and maintain than people realize.than people realize. The The odds are best in odds are best in

titigghtlhtlyy drawn drawn markets, not bimarkets, not bigg, , sspprawlinrawlingg ones” ones”

—Title/ Bruce Greenwald & Judd Kahn/HBR09.05

Jim’s Jim’s GroupGroup

Jim’s Mowing CanadaJim’s Mowing CanadaJim’s Mowing UKJim’s Mowing UKJim’s AntennasJim’s Antennas

Jim’s BookkeepingJim’s BookkeepingJim’s Building MaintenanceJim’s Building Maintenance

Jim’s Carpet CleaningJim’s Carpet CleaningJim’s Car CleaningJim’s Car Cleaning

Jim’s Computer ServicesJim’s Computer Services

Jim’s Dog WashJim’s Dog WashJim’s Driving SchoolJim’s Driving School

Jim’s FencingJim’s FencingJim’s FloorsJim’s Floors

Jim’s PaintingJim’s PaintingJim’s PavingJim’s Paving

Jim’s Pergolas [gazebos]Jim’s Pergolas [gazebos]Jim’s Pool CareJim’s Pool Care

Jim’s Pressure CleaningJim’s Pressure CleaningJim’s RoofingJim’s Roofing

Jim’s Security DoorsJim’s Security DoorsJim’s TreesJim’s Trees

Jim’s Window CleaningJim’s Window CleaningJim’s WindscreensJim’s Windscreens

Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group

The Red The Red Carpet Carpet StoreStore

Joel Resnick/Flemington NJ Joel Resnick/Flemington NJ (referenced in (referenced in Fame JunkiesFame Junkies))

The The

black black swanswan

1982 1982 (-)(-) = = 200 200

Years Years (+)(+)

1982/Default Latin 1982/Default Latin

America = America = 200 200 yearsyears [Total historical [Total historical

earnings]earnings]

The Black Swan: The Impact of theThe Black Swan: The Impact of the Highly Improbable Highly Improbable, Nassim Nicholas Taleb, Nassim Nicholas Taleb

Career =Career = 11 or or 22 black black swansswans

Resilience!Resilience!Hiring: CEO, 100%Hiring: CEO, 100%

TrainingTrainingStructureStructure

Systems (e.g. IS/IT)Systems (e.g. IS/IT)“Culture”“Culture”

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

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

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

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

executives manage risksexecutives manage risks

revenue revenue matters matters most most

““Our whole Our whole story is story is growing growing

revenue.”revenue.” —Vernon Hill (Top-line driven; standard —Vernon Hill (Top-line driven; standard

is bottom-line driven by cost cutting)is bottom-line driven by cost cutting)

The Commerce Bank ModelThe Commerce Bank Model

“cost cutting “cost cutting is a death is a death spiral.”spiral.”

Source: Source: Fans! Not customers. How Commerce Bank Fans! Not customers. How Commerce Bank Created a Super-growth Business in a No-growth Created a Super-growth Business in a No-growth

IndustryIndustry, Vernon Hill & Bob Andelman, Vernon Hill & Bob Andelman

CCRROO*

*Chief RevenueRevenue Officer

GiveGive good good tea!* tea!*

*Norm, Ben*Norm, Ben

“A body can pretend to

care, but they can’t pretend to be there.” —

Texas Bix Bender

““I call 60 CEOs I call 60 CEOs [in [in

the first week of the year]the first week of the year] to to wish them happy wish them happy

New Year. …”New Year. …”

—Hank Paulson, former CEO, Goldman —Hank Paulson, former CEO, Goldman SachsSachs

Source: Fortune, “Secrets of Greatness,” 0320.05

You = Your You = Your calendarcalendar***Calendars *Calendars nevernever lielie

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

—David D’Alessandro, Career Warfare

SellSell sell sell sellsell sellsell sell sell sell sell sell sell sellsell sell sell sell sell sellsell sell sell sell sell sellsell sellsell sellsell sell sell sell sell sell sell sellsell sellsell sellsell sell sell sell sell

sellsell sell sell sell sell

Conrad Hilton, at a gala Conrad Hilton, at a gala celebrating his life,celebrating his life,

was asked, “What was was asked, “What was the most important the most important

lesson you’ve learned in lesson you’ve learned in your long and your long and

distinguished career?” distinguished career?”

His immediate answer: His immediate answer: ““remember remember to tuck the to tuck the

shower curtain shower curtain inside the inside the bathtubbathtub””

2-cent 2-cent candycandy

<TG<TGWWvs.vs.

>TG>TGRR

#10#10

““Buy in”- Buy in”- “Ownership”-“Ownership”-

Authorial bragging Authorial bragging rights-“Born again” rights-“Born again” Champion = Champion = OneOne LineLine ofof CodeCode!!

#11#11

1/401/40

““We have a We have a ‘strategic plan.’ ‘strategic plan.’ It’s called It’s called doing doing thingsthings.”.” — Herb Kelleher

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

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

think you’re finding it when you’re drawing maps and

studying logs, but you have to drill.”

Source: The Hunters, by John Masters, Canadian O & G wildcatter

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

perfect, we’re already on prototype versionperfect, we’re already on prototype version ##55.. By the time our rivals areBy the time our rivals are

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

##1010.. It gets back to It gets back to planning versus actingplanning versus acting: : We act We act from day onefrom day one; ; others plan how others plan how toto planplan——for monthsfor months.”.” —Bloomberg by —Bloomberg by

BloombergBloomberg

““ExperimenExperiment t

fearlessly”fearlessly”Source: BW0821.06, Type A Organization Strategies/

“How to Hit a Moving Target”—Tactic #1Tactic #1

““Fail .Fail . Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

try it. Try it. Try it. Try try it. Try it. Try it. Try it. Try it. Try it. Try it. it. Try it. Try it. Try it. Try itTry it. . Screw it up.Screw it up. Try Try it. Try it. Try it. Try it. it. Try it. Try it. Try it. Try it. Try it.Try it. Try it. Screw it Screw it

up.up. it. Try it. Try it. try it. Try it. Try it. try it. Try it.it. Try it. Screw it up.Screw it up. Try it. Try it. Try it.Try it. Try it. Try it.

““You miss You miss

100100%% of the shots of the shots you never you never

take.”take.” —Wayne—Wayne GretzkyGretzky

#12#12

4/404/40

De-cent-De-cent-ral-iz-ral-iz-a-tion!a-tion!

Enemy Enemy #1#1

I.C.D.I.C.D.Note 1:Note 1: Inherent/Inevitable/Inherent/Inevitable/Immutable Centralist DriftImmutable Centralist Drift

Note 2: Jim Burke’s 1-word vocabulary: “No.”Note 2: Jim Burke’s 1-word vocabulary: “No.”

Ex-e-Ex-e-cu-cu-

tion!tion!

““Execution Execution isis strategy.” strategy.”

—Fred Malek—Fred Malek

MP:MP: “Get the strategy “Get the strategy right, the rest will right, the rest will take care of itself.”take care of itself.”

TP:TP: “Get the people and “Get the people and execution right, execution right, the strategy willthe strategy will take care of itself.” take care of itself.”

“Execution is a

systematic systematic processprocess of rigorously

discussing hows and whats, tenaciously following through, and

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

The Discipline of Getting Things Done

Ac-count-Ac-count-a-bil-ity!a-bil-ity!

CF: CF: 30%30% (no (no salesfolk)salesfolk)

MH: MH: 80%80% (salesfolk)(salesfolk)

6:15A.M6:15A.M..

DECENTRALIZATIONDECENTRALIZATION..

EXECUTION.EXECUTION.ACCOUTABILITY.ACCOUTABILITY.

66:15A.M. :15A.M.

#13#13

X X =XFX*=XFX*

**ExcellenceExcellence = Cross-functional Excellence = Cross-functional Excellence

1. 1. It’s our organization to make work—or not. It’s not “them,” the It’s our organization to make work—or not. It’s not “them,” the outside world that’s the problem. outside world that’s the problem. The enemy is us.The enemy is us. Period. Period.2. Friction-free! Dump 90% of “middle managers”—most are advertent or inadvertent “power 2. Friction-free! Dump 90% of “middle managers”—most are advertent or inadvertent “power freaks.” We are all—every one of us—in the Friction Removal Business, one moment at a time, freaks.” We are all—every one of us—in the Friction Removal Business, one moment at a time, now and forevermore.now and forevermore.3. No “stovepipes”! “Stove-piping,” “Silo-ing” is an 3. No “stovepipes”! “Stove-piping,” “Silo-ing” is an Automatic Firing OffenseAutomatic Firing Offense. Period. No . Period. No appeals. (Within the limits of civility, somewhat “public” firings are not out of the question—that appeals. (Within the limits of civility, somewhat “public” firings are not out of the question—that is, make one and all aware why the axe fell.)is, make one and all aware why the axe fell.)4.4. Everything Everything on the Web. This helps. A lot. (“Everything” = Big word.)on the Web. This helps. A lot. (“Everything” = Big word.)5. Open access. All available to all. Transparency, beyond a level that’s “sensible,” is a de facto 5. Open access. All available to all. Transparency, beyond a level that’s “sensible,” is a de facto imperative in a Burn-the-Silos strategy.imperative in a Burn-the-Silos strategy.

6.6. Project managers rule!!Project managers rule!! Project managers running XF (cross- Project managers running XF (cross-functional) projects are the Elite of the organization, and seen as functional) projects are the Elite of the organization, and seen as such and treated as such. (The likes of construction companies such and treated as such. (The likes of construction companies have practiced this more or less forever.)have practiced this more or less forever.)7. “Value-added Proposition” = Application of integrated resources. (From the entire supply-7. “Value-added Proposition” = Application of integrated resources. (From the entire supply-chain.) To deliver on our emergent business raison d’etre, and compete with the likes of our chain.) To deliver on our emergent business raison d’etre, and compete with the likes of our Chinese and Indian brethren, we must co-operate with anybody and everybody “24/7.” IBM, UPS Chinese and Indian brethren, we must co-operate with anybody and everybody “24/7.” IBM, UPS and many, many others are selling far more than a product or service that works—the new “it” and many, many others are selling far more than a product or service that works—the new “it” is pure and simple a product of XF co-operation; “the product is pure and simple a product of XF co-operation; “the product isis the co-operation” is not much the co-operation” is not much of a stretch.of a stretch.

????????

% XF % XF lunches*lunches*

*Measure!*Measure!

Never Never waste a waste a lunch!*lunch!*

Promote “FRSs” (Promote “FRSs” (Friction Friction Reduction SpecialistsReduction Specialists—nobody —nobody can figure out what they “do’” can figure out what they “do’” but when they’re around things but when they’re around things mysteriously get done mysteriously get done (Women? Not clear)(Women? Not clear)

FRSs kin to HROs, IROs (FRSs kin to HROs, IROs (Hurdle Hurdle Removal OfficersRemoval Officers, , Impedance Impedance Reduction OfficersReduction Officers))

#14#14

K.i.s.s.K.i.s.s.*Keep It Simple, Stupid*Keep It Simple, Stupid

90K in U.S.A. 90K in U.S.A. ICUsICUs on any on any given day; given day; 178178 steps/day steps/day

in ICU. in ICU.

50%50% stays result stays result in “serious complication”in “serious complication”Source: Atul Gawande, “The Checklist” (Source: Atul Gawande, “The Checklist” (New YorkerNew Yorker, 1210.07), 1210.07)

****Peter PronovostPeter Pronovost, Johns Hopkins, , Johns Hopkins, 20012001**Checklist, line infections**Checklist, line infections**1/3**1/3rdrd at least one error when he started at least one error when he started**Nurses/permission to stop procedure **Nurses/permission to stop procedure if doc, other not following checklistif doc, other not following checklist**In 1 year, 10-day line-infection rate:**In 1 year, 10-day line-infection rate:

11% to … 11% to … 0%0% Source: Atul Gawande, “The Checklist” (Source: Atul Gawande, “The Checklist” (New YorkerNew Yorker, 1210.07), 1210.07)

““[Pronovost] is focused on work that is [Pronovost] is focused on work that is not normallnot normallyy considered a si considered a siggnificant nificant

contribution in academic medicinecontribution in academic medicine. As a . As a result, few others are venturing to result, few others are venturing to

extend his achievements.extend his achievements. Yet his Yet his work has already saved work has already saved more lives than that of more lives than that of any laboratory scientist any laboratory scientist in the last decadein the last decade.”.” —Atul —Atul

Gawande,Gawande, “The Checklist” (New Yorker, 1210.07) “The Checklist” (New Yorker, 1210.07)

“Beware of the Beware of the tyranny of making tyranny of making SmallSmall

Changes to Changes to SSmallmall Things. Things. Rather, make Rather, make BiBig g Changes to Changes to BiBigg

Things.”Things.” —Roger Enrico, former Chairman, —Roger Enrico, former Chairman, PepsiCoPepsiCo

““Beware of the tyranny of making Beware of the tyranny of making SSmallmall Changes to Changes to

SSmallmall Things.Things. Rather, Rather, make make BigBig Changes to Changes to Big Big ThingsThings … …

using using Small, Almost Small, Almost Invisible Invisible

Straightforward Straightforward LeversLevers with with BiBigg

SSyystemic Imstemic Imppactact.”.” —TP—TP

#15#15

TP: TP: “How to flush

$500,000 down

the toilet in one easy

lesson!!”

< CAPEX< CAPEX> People!> People!

Brand Brand = =

Talent.Talent.

#16#16

PUT HR AT THE PUT HR AT THE HEAD OF THE HEAD OF THE HEAD TABLE. HEAD TABLE. BEST PEOPLE. BEST PEOPLE.

NOBLEST NOBLEST MISSION.MISSION.

#17#17

The Dream The Dream ManagerManager

——Matthew KellyMatthew Kelly

??????

% of people % of people with …with …

… … DreamsDreams

The Dream ManagerThe Dream Manager —Matthew —Matthew KellyKelly

“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 wrong. company achieve its purpose’—but they would be wrong. That is certainly part of the employee’s role, but an That is certainly part of the employee’s role, but an employee’s primary purpose is to become the-best-employee’s primary purpose is to become the-best-version-of-himself or –herself. … When a company version-of-himself or –herself. … When a company

forgets that it exists to serve customers, it quickly goes forgets that it exists to serve customers, it quickly goes out of business.out of business. Our employees are our Our employees are our

first customers, and our most first customers, and our most important customers.”important customers.”

Exec:Exec: “… but Tom, how do we find out “… but Tom, how do we find out what it is that people really want?”what it is that people really want?”

Tom (after a long pause and a lot of thoughtTom (after a long pause and a lot of thought——and I’m not kidding):and I’m not kidding):

Exec:Exec: “… but Tom, how do we find out “… but Tom, how do we find out what it is that people really want?”what it is that people really want?”

Tom (after a long pause and a lot of thought—and I’m Tom (after a long pause and a lot of thought—and I’m

not kidding):not kidding): “Ask “Ask ’em.”’em.”

#18#18

53 = 53 = 5353

#19#19

EMPHASIZEMPHASIZE THE E THE “SOFT “SOFT

SKILLS.”SKILLS.”

“A man without A man without a smiling face a smiling face

must not open a must not open a shop.”shop.” —Chinese Proverb

#20#20

2/year 2/year = =

legacy.legacy.

#21#21

#1#1 cause of cause ofDis-satisfaction?Dis-satisfaction?

The “Big Three”The “Big Three”

MarriageMarriageParenthoodParenthood

11stst Line Supervisor Line Supervisor***Accomplishment through others*Accomplishment through others

#22#22

““Leaders Leaders

‘‘dodo’’ people. people.

Period.”Period.” —Anon.

““The role of the Director is to The role of the Director is to create a space where the actors create a space where the actors and actresses canand actresses can become become more than they’ve ever more than they’ve ever been before, more than been before, more than

they’ve dreamed of they’ve dreamed of beingbeing.”.” —Robert Altman, Oscar acceptance speech—Robert Altman, Oscar acceptance speech

Our MissionTo develop and manage To develop and manage

talent;talent;to apply that talent,to apply that talent,

throughout the world, throughout the world, for the benefit of clients;for the benefit of clients;to do so in partnership; to do so in partnership;

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

#23#23

‘‘SERVESERVE’’ people. people.

Period.”Period.” —inspired by Robert Greenleaf

““No matter what the No matter what the situation, situation, [the great manager’s][the great manager’s]

first resfirst respponse is alwaonse is alwayys to s to think about the individual think about the individual concerned and how thinconcerned and how thinggs s can be arrancan be arrangged to ed to helhelpp

that individual exthat individual expperience erience successsuccess.”.” —Marcus Buckingham, —Marcus Buckingham,

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

““We are a We are a ‘Life ‘Life

Success’ Success’ Company.”Company.”

Dave Liniger, founder, RE/MAX

““I have always I have always believed that the believed that the

purpose of the purpose of the corporation is to be a corporation is to be a

blessing to the blessing to the employees.”employees.” * * —Boyd Clarke—Boyd Clarke

*TP: An “organization” is, in fact and after all*TP: An “organization” is, in fact and after all is said and done, a/the “house” in which is said and done, a/the “house” in which

most of us “live” most of the time. most of us “live” most of the time.

Organizations exist to serve. Period.Organizations exist to serve. Period.Leaders live to serve. Period.Leaders live to serve. Period.

Passionate servant leaders, determined to create a Passionate servant leaders, determined to create a legacy of earthshaking transformation in their domainlegacy of earthshaking transformation in their domain create/must create/must necessarilynecessarily create organizations which create organizations which

are …are … no less than Cathedrals in no less than Cathedrals in which the full and awesome which the full and awesome

power of the Imagination and power of the Imagination and Spirit and native Spirit and native

Entrepreneurial flairEntrepreneurial flair of of diverse individualsdiverse individuals is is

unleashedunleashed … … In passionate pursuit of jointly In passionate pursuit of jointly perceived soaring purposeperceived soaring purpose and personal and and personal and

community and client service Excellence. community and client service Excellence.

#24#24

The Customer The Customer Comes Second: Put Comes Second: Put Your People First Your People First

and Watch ’Em Kick and Watch ’Em Kick ButtButt

——Hal Rosenbluth and Diane McFerrin Peters (no relation—be delighted if she Hal Rosenbluth and Diane McFerrin Peters (no relation—be delighted if she was)was)

#25#25

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

remain an artistremain an artist.”.” —Picasso—Picasso

#26#26

““Do one Do one thing every thing every

day that day that scares you.”scares you.”

—Eleanor Roosevelt

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!!

#27#27

We We areare the the companycompany we keepwe keep

The “Hang Out Axiom”:The “Hang Out Axiom”: At its core, At its core, evereveryy (!!!) (!!!)

relationship-partnership relationship-partnership decision (employee, decision (employee,

vendor, customer, etc)vendor, customer, etc) is a is a stratestrateggicic decision decision

about: about: “Innovate,“Innovate,

‘Yes’ or ‘Yes’ or ‘No’‘No’ ” ”

Measure “Strangeness”/Portfolio QualityMeasure “Strangeness”/Portfolio QualityStaffStaff

ConsultantsConsultantsVendorsVendors

Out-sourcing Partners Out-sourcing Partners (#, Quality)(#, Quality)Innovation Alliance PartnersInnovation Alliance Partners

CustomersCustomersCompetitors Competitors (who we “benchmark” against)(who we “benchmark” against)

Strategic Initiatives Strategic Initiatives Product Portfolio Product Portfolio (LineEx v. Leap)(LineEx v. Leap)

IS/IT ProjectsIS/IT ProjectsHQ LocationHQ LocationLunch MatesLunch Mates

LanguageLanguageBoardBoard

““Normal” Normal” = = “o “o forfor 800”800”

““Freak Freak Fridays”Fridays” —once a —once a

month invite somebody interesting, in any field, to have month invite somebody interesting, in any field, to have lunch with your ganglunch with your gang

#28#28

Single Single greatest act greatest act

of pure of pure imaginationimagination

24%24%

dubaidubai

#29#29

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

Hard Is Hard Is SoftSoft (Plans, (Plans, ##ss))

Soft Is Soft Is HardHard (people, (people, customers, values, customers, values,

relationships))relationships))

“If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of people is very, very hard. [Yet] I came to see in my time at IBM that culture

isn’t just one aspect of the game ——it is the it is the gamegame.”.” —Lou Gerstner,

Who Says Elephants Can’t Dance

#30#30

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

R.O.I.RR.O.I.R..

RReturn eturn OOn n IInvestment In nvestment In RRelationshipselationships

Q/Systems Salesperson:Q/Systems Salesperson: “I make the “I make the sale, and then the company screws up sale, and then the company screws up the engineering or delivery or one of a the engineering or delivery or one of a dozen things. Any suggestions?dozen things. Any suggestions?

A/TP:A/TP: “Spend less “Spend less time with your time with your customers!”customers!”

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

#31#31

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

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

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

COMPLETE RUPTURE.COMPLETE RUPTURE.

THE PROBLEM IS THE PROBLEM IS RARELY/NEVER THE RARELY/NEVER THE

PROBLEM.PROBLEM. THE THE RESPONSE TO THE RESPONSE TO THE

PROBLEM INVARIABLY PROBLEM INVARIABLY ENDS UP BEING THE ENDS UP BEING THE

REAL PROBLEMREAL PROBLEM.

““I’m sorry.”I’m sorry.”

#32#32

““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

The Manager’s The Manager’s Book of Book of DecenciesDecencies: :

How Small How Small /gestures Build /gestures Build

Great Companies.Great Companies. —Steve Harrison, Adecco

#33#33

CauseCause (worthy of commitment)(worthy of commitment)

SpaceSpace (room for/encouragement(room for/encouragement

for initiative) for initiative)

DecencyDecency (respect, (respect, humane)humane)

SpaceSpace (room for/encouragement(room for/encouragement for initiative-adventures) for initiative-adventures)

DecencyDecency (respect, grace,(respect, grace, integrity, humane) integrity, humane)

service service (worthy of our clients’ & (worthy of our clients’ & extended extended family’s continuing custom) family’s continuing custom)

excellenceexcellence (period) (period)

CauseCause

SpaceSpace

DecencyDecency

serviceserviceexcellenceexcellence

servant leadership servant leadership

SpaceSpace (room for/encouragement for initiative-(room for/encouragement for initiative-adventures) adventures)

DecencyDecency (respect, grace, integrity, humane)(respect, grace, integrity, humane)

service service (worthy of our clients’ & extended (worthy of our clients’ & extended family’s continuing custom) family’s continuing custom)

excellenceexcellence (period) (period)

servant servant leadership leadership

#34#34

Don’t forgetDon’t forgetthe “it”! the “it”!

““It suddenly It suddenly occurred to me …occurred to me …

““It suddenly occurred It suddenly occurred to me that in the to me that in the

space of two or three space of two or three hours he hours he nevernever

talked about cars.”talked about cars.” —Les —Les

WexnerWexner

“Not long ago, I heard one studio chief utter the

unthinkable: ‘What would ‘What would happen if I made a movie happen if I made a movie I actually looked forward I actually looked forward to seeing?’to seeing?’ ”” —Peter Bart, Editor in Chief,

Variety; former Paramount exec, “Hollywood’s Model Doesn’t Produce Art, or Much Profit” (NYT/0721.06)

#35#35

A pox on A pox on “micro-“micro-marketimarketi

ng”ng”

““Forget Forget ChinaChina, , IndiaIndia and the and the

InternetInternet: Economic : Economic Growth Is Driven Growth Is Driven

by by WomenWomen.”.” —Headline, Economist, April 15, 2006, Leader, page 14

““Women Women areare thethe

majority majority market”market”

—Fara Warner/—Fara Warner/The Power of the PurseThe Power of the Purse

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

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

purchasing power; purchasing power; over the past over the past decade the value of shares in decade the value of shares in Goldman’s basket has risen by Goldman’s basket has risen by

96%, against the Tokyo 96%, against the Tokyo stockmarket’s rise stockmarket’s rise

of 13%of 13%.”.” —Economist, April 15

““The The most most significant variablesignificant variable inin everyevery sales situation is sales situation is thethe gendergender of the buyer, of the buyer, and more importantly, how and more importantly, how

the salesperson the salesperson communicates to the communicates to the

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

The Perfect AnswerJill and Jack buy

slacks in black…

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

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

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

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

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

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

Zieseniss de Thuin, Financial Times, 10.03.2006

#36#36

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find that female managers outshine their male

counterparts in almost every measure”

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

10 UNASSAILABLE REASONS WOMEN RULE10 UNASSAILABLE REASONS WOMEN RULEWomenWomen make [all] the financial decisions.WomenWomen control [all] the wealth.WomenWomen [substantially] outlive men.WomenWomen start most of the new businesses.Women’sWomen’s work force participation rates have soared worldwide.WomenWomen are closing in on “same pay for same job.”WomenWomen are penetrating senior ranks rapidly [even if the pace is slow for the corner office per se].Women’sWomen’s leadership strengths are exceptionally well aligned with new organizational effectiveness imperatives.WomenWomen are better salespersons than men.WomenWomen buy [almost] everything—commercial as well as consumer goods.

So what exactly is the point of So what exactly is the point of menmen??

It’s gotta beIt’s gotta be a majority … a majority …

#37#37

7/17/133

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““People turning 50 People turning 50 today have today have more more

thanthan halfhalf of of their adult life their adult life

ahead of them.”ahead of them.” —Bill Novelli, 50+: Igniting a Revolution to Reinvent America

2000-2010 Stats

18-44: 18-44: -1%-1%55+: 55+: ++2121%%(55-64: (55-64: ++4747%%))

We are the We are the Aussies & Kiwis &Aussies & Kiwis & Americans & Americans & CanadiansCanadians. We are the . We are the Western EuropeansWestern Europeans & & JapaneseJapanese. We are the . We are the fastest growingfastest growing, , the the biggestbiggest, the , the wealthiestwealthiest, the , the boldestboldest, ,

the most (yes) the most (yes) ambitiouambitious, the most s, the most experimental & exploratoryexperimental & exploratory, the most , the most

differentdifferent, the most , the most indulgentindulgent, the most , the most difficult &difficult & demandingdemanding, the most , the most service & service & experience obsessedexperience obsessed, the most , the most vigorousvigorous, ,

(the (the leastleast vigorous,) the most vigorous,) the most health health consciousconscious, the most , the most femalefemale, the most , the most

profoundly important commercial market in profoundly important commercial market in the history of the world—and we will be the the history of the world—and we will be the Center of your universe for the next Center of your universe for the next twenty-twenty-

fivefive yearsyears. We have arrived!. We have arrived!

#38#38

EXCELLENCE. EXCELLENCE.

SOUL I.SOUL I.DESIGN.DESIGN.

All EAll Eqqual ual ExceExcepptt … …“At Sony we assume that all products of “At Sony we assume that all products of our competitors have basically the same our competitors have basically the same

technology, price, performance and technology, price, performance and

features.features. Design is the only Design is the only thing that thing that

differentiates one differentiates one product from another product from another in the marketplacein the marketplace.”.”

—Norio—Norio OhgaOhga

““Design is Design is treated like treated like a religiona religion at at

BMW.”BMW.” —Fortune—Fortune

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

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

the meaning of design.the meaning of design. Design Design is the is the fundamentalfundamental

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

Steve JobsSteve Jobs

Hypothesis:Hypothesis: DESIGNDESIGN is is the pthe princirincippalal

differencedifference between between lovelove

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

CCDDOO**Chief DesignDesign Officer

#38.1#38.1

EXCELLENCE.EXCELLENCE.

SYSTEMS. SYSTEMS. DESIGN. DESIGN. K.I.S.S.K.I.S.S.

Lisbon/New Biz:Lisbon/New Biz:

WeeksWeeks to …to …

Minutes Minutes (!!!!)(!!!!)

First Steps: “Beauty Contest”!

1. Select one form/document: invoice, airbill, 1. Select one form/document: invoice, airbill, sick leave policy, customer returns claim sick leave policy, customer returns claim form.form.

2.2. Rate the selected doc on a scale of 1 to 10 Rate the selected doc on a scale of 1 to 10 [1 = Bureaucratica Obscuranta/Sucks; 10 [1 = Bureaucratica Obscuranta/Sucks; 10 = Work of Art] on four dimensions:= Work of Art] on four dimensions:

BeautBeauty. y. GraceGrace. . ClaritClarity. y. SimplicitSimplicity.y.3. Re-invent!3. Re-invent!4.4. Repeat, with a new selection,Repeat, with a new selection, every 15 working days.every 15 working days.

Beauty Beauty Grace Grace

Clarity Clarity SimplicitySimplicity

#39#39

Up, Up, Up, Up

the Value-added Ladder.

Auckland/pmAuckland/pmtaipei/vptaipei/vp

singapore/pmsingapore/pmbangkok/dpmbangkok/dpm

flandersflandersamsterdam/MPamsterdam/MPss

barcelona/mbarcelona/maaKuala Lumpur/CMKuala Lumpur/CM

lisbon/mlisbon/maadublin/pmdublin/pm

buenos airesbuenos airessao paulosao paulo

Warsaw/MPWarsaw/MPsslondon/mplondon/mpss

milanmilanSEOUL/MSEOUL/Maa

mexico d.f./mmexico d.f./mistanbul/dpmistanbul/dpm

dubai/rfmdubai/rfmoman/rfmoman/rfm

usausastockholm/mpstockholm/mpss

shanghaishanghaimaurittius/pmmaurittius/pmjohannesburgjohannesburgbucharest/CMbucharest/CM

VALUE ADDED. VALUE ADDED.UP THE LADDER.UP THE LADDER.

NoT Optional.NoT Optional.

The Value-added Ladder/ The Value-added Ladder/ “BEDROCK” “BEDROCK”

Raw Materials*Raw Materials***Farmers and Miners (“Degree”: Weightlifting)Farmers and Miners (“Degree”: Weightlifting)

The Value-added Ladder/ The Value-added Ladder/ THINGSTHINGS

Goods*Goods* Raw MaterialsRaw Materials

**Engineers and Factory Workers (Degree: Engineering)Engineers and Factory Workers (Degree: Engineering)

The Value-added Ladder/TRANSACTIONSTRANSACTIONS

Services*Services*GoodsGoods

Raw Materials Raw Materials **Clerks (Degree: Process Engineering)Clerks (Degree: Process Engineering)

#40#40

VALUE-ADDED LADDER I.VALUE-ADDED LADDER I. SOLVE IT. SOLVE IT.

IBM: IBM: $55B*$55B*

*Also HP-EDS*Also HP-EDS

IBIBMM: : $55B*$55B*

*Also HP-EDS*Also HP-EDS

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

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

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

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

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

HuHuggee:: Customer SatisfactionSatisfaction versus

Customer

SuccessSuccess

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

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

your product or your product or service”service” —Jan Gunnarsson & Olle Blohm, The —Jan Gunnarsson & Olle Blohm, The

Welcoming LeaderWelcoming Leader

The Value-added Ladder/The Value-added Ladder/TRANSFORMATIONTRANSFORMATION

Customer Success/ Customer Success/ Gamechanging Gamechanging

SolutionsSolutionsServicesServicesGoodsGoods

Raw Materials Raw Materials

““support function” / support function” / “cost center”/ “cost center”/ “overhead”“overhead”

oror … …

Up,Up, Up,Up, Up, Up,

#41#41

VALUE-ADDED LADDER II.VALUE-ADDED LADDER II. EXPERIENCE IT. EXPERIENCE IT.

““Experiences Experiences are as distinct are as distinct

from services as from services as services are from services are from goods.”goods.” —Joe Pine & Jim Gilmore, The Experience Economy: Work Is Theatre & Every Business a

“The [Starbucks] Fix” Is on …

“We have “We have identified a identified a

‘third place.’‘third place.’ And I really believe that sets us apart. The

third place is that place that’s not work or home. It’s the place our customers come for refuge.” —Nancy Orsolini, District

Manager

Experience: “Rebel Lifestyle!”

“What we sell is the “What we sell is the ability for a 43-year-old ability for a 43-year-old accountant to dress in accountant to dress in

black leather, ride black leather, ride through small towns and through small towns and

have people be afraidhave people be afraid of him.” of him.”

HarleyHarley exec, quoted in Results-Based Leadership

The Value-added Ladder/ The Value-added Ladder/ MEMORABLE CONNECTIONMEMORABLE CONNECTION

Spellbinding Spellbinding Experiences*Experiences*

Customer Success/Implemented Customer Success/Implemented Gamechanging SolutionsGamechanging Solutions

ServicesServicesGoodsGoods

Raw Materials Raw Materials**Theatrical Skills (Degree: Theater Arts)Theatrical Skills (Degree: Theater Arts)

CCXXOO**Chief eXperience Officer

#42#42

VALUE-ADDED LADDER III.VALUE-ADDED LADDER III. DREAM IT.DREAM IT.

Furniture vs. Dreams“We do not sell ‘furniture’ at

Domain. We sell We sell dreamsdreams. This is

accomplished by addressing the half-formed needs in our

customers’ heads. By uncovering these needs, we, in essence, fill in the blanks. We

convert ‘needs’ into ‘dreams.’ Sales are the

inevitable result.” — Judy George, Domain Home Fashions

“The sun is setting on the Information Society—even before we have fully adjusted to its demands as

individuals and as companies. We have lived as hunters and as farmers, we have worked in factories and now we

live in an information-based society whose icon is the

computer. We stand facinWe stand facingg the fifth kind of societthe fifth kind of societyy: : the Dream Societthe Dream Society.y. … Future

products will have to appeal to our hearts, not to our heads. Now is the time to add emotional value to

products and services.” Rolf Jensen/The Dream Society:How the Coming Shift from

Information to Imagination Will Transform Your Business

The Value-added Ladder/ EMOTIONEMOTION

Dreams Come True*Dreams Come True*Design-driven Spellbinding

Experiences Customer Success/Implemented

Gamechanging SolutionsServicesGoods

Raw Materials

**Psychologists (Degree: Psychology)Psychologists (Degree: Psychology)

#43#43

SOUL II.SOUL II.THE STORY.THE STORY.

““StorytellinStorytelling g

is the core is the core of culture.”of culture.”

—Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell

MarketMarket Power = Power = StoryStory Power Power

Best Best story story wins!wins!

“We are in the twilight of a society based on data. As information and intelligence become the domain of

computers, society will place more value on the one human ability that cannot be automated: emotion. Imagination, myth, ritual - the language of emotion - will affect everything from

our purchasing decisions to how we work with others.

ComComppanies will thrive anies will thrive on the basis of their on the basis of their stories and mstories and myythsths..

Companies will need to understand that their products are less important than their stories.” —Rolf Jensen, Copenhagen

Institute for Future Studies

The Value-added Ladder/ EMOTIONEMOTION

Dreams Come Dreams Come True/Best Story Wins*True/Best Story Wins*Design-driven Spellbinding Experiences

Customer Success/Implemented Gamechanging Solutions

ServicesGoods

Raw Materials

**Anthropology (Degree: Anthropology)Anthropology (Degree: Anthropology)

#44#44

3/63/6

Ladder.2008: 3 of Ladder.2008: 3 of 6!6!

Lovemark Lovemark Dreams Come TrueDreams Come True

Spellbinding Experiences Spellbinding ExperiencesGamechanging SolutionsGamechanging Solutions

Raw MaterialsRaw Materials

New (3 of 6) Value-added “Ladder”:New (3 of 6) Value-added “Ladder”: Plays to Women’s Inherent Strengths! Plays to Women’s Inherent Strengths!

Dreams Come True/Dreams Come True/FF

Spellbinding Experiences/ Spellbinding Experiences/FFGamechanging Solutions/Gamechanging Solutions/FF

Services/Services/F-MF-MGoods/Goods/MM

Raw Materials/Raw Materials/MM

#45#45

EXCELLENCE. EXCELLENCE. DOES MATTER DOES MATTER

MATTER?MATTER?

““What Isn’t What Isn’t Matter Is Matter Is

What What Matters”Matters”

—section title, Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell

VA “Teaching Moment”

““Andy pointed to Andy pointed to a molding, about a molding, about halfway up the halfway up the

wall …”wall …”

The The BootBoot … and … and TimberlandTimberlandThe The TomatoTomato//

FarmerFarmer … and … and Campbell’sCampbell’s

Ladder.2008: 3 of Ladder.2008: 3 of 6!6!

Lovemark Lovemark Dreams Come TrueDreams Come True

Spellbinding Experiences Spellbinding ExperiencesGamechanging SolutionsGamechanging Solutions

Raw MaterialsRaw Materials

#46#46

EXCELLENCE. BEDROCK.EXCELLENCE. BEDROCK.

LEADERSHIP. LEADERSHIP. THE 9Ps. THE 9Ps. THE 1 M.THE 1 M.THE 1 ETHE 1 E

THE 9PTHE 9Ps.s.

PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..

PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. . PotentPotent..

PositivePositive..

““People want to be part People want to be part of something larger than of something larger than themselvesthemselves.. They want to They want to

be part of something they’re be part of something they’re really really proudproud of, that they’ll of, that they’ll

fight fight forfor,, sacrifice sacrifice forfor , , trusttrust.”.” —Howard Schultz, Starbucks (IBD/09.05)

PURPOSEPURPOSE..

PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..

PositivePositive..

““I am a … I am a … Dispenser of Dispenser of EnthusiasmEnthusiasm!”!”

—Ben Zander—Ben Zander

PURPOSEPURPOSE..PASSIONPASSION..

PotentialPotential..PresencePresence..PersonalPersonal..

PositivePositive..

““The role of the Director is to The role of the Director is to create a space where the actors create a space where the actors and actresses canand actresses can become become more than they’ve ever more than they’ve ever been before, more than been before, more than

they’ve dreamed of they’ve dreamed of beingbeing.”.” —Robert Altman, Oscar acceptance speech—Robert Altman, Oscar acceptance speech

PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..

PresencePresence..PersonalPersonal..

PositivePositive..

MBWAMBWA

PURPOSEPURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..

PersonalPersonal..PERSISTENCEPERSISTENCE..

PEOPLEPEOPLE. . PotentPotent..

PositivePositive..

““You must You must bebe the change you the change you

wish to see in the wish to see in the world.”world.”

Gandhi

PositivePositive..

RelentlessRelentless:: “One of “One of my superstitions had always been my superstitions had always been when I started to go anywhere or when I started to go anywhere or

to do anything,to do anything, notnot to to turnturn backback ,, or stop, or stop,

until the thing intended was until the thing intended was accomplished.”accomplished.” —Grant

PERSISTENCEPERSISTENCE..

PEOPLEPEOPLE. . PotentPotent..

PositivePositive..

‘‘dodo’’ people. people.

Period.”Period.” —Anon.

PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. .

PotentPotent..PositivePositive..

Kevin 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!!

““Do one Do one thing every thing every

day that day that scares you.”scares you.”

—Eleanor Roosevelt

PositivePositive..

On NELSON: “[other] “[other] admirals more admirals more frightened of frightened of losing than losing than

anxious to win”anxious to win”

PositivePositive..

#47#47

THE 1MTHE 1M..

The 1mThe 1m

The greatest dangerThe greatest dangerfor most of usfor most of us

is not that our aim isis not that our aim istoo hightoo high

and we miss it,and we miss it,but that it isbut that it is

too lowtoo lowand we reach it.and we reach it.

Michelangelo

#48#48

THE 1ETHE 1E..

““Breakthrough” 82*Breakthrough” 82*

People! People! CustomersCustomers

! ! Action! Action! Values! Values!

**In Search of ExcellenceIn Search of Excellence

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

concerted humanconcerted human potential in the potential in the wholeheartedwholehearted serviceservice of others of others.****Employees, Customers, Suppliers, Communities, Owners, Temporary partners**Employees, Customers, Suppliers, Communities, Owners, Temporary partners

““Excellence can be obtained if you:Excellence can be obtained if you: ... care more than others think... care more than others think is wise;is wise; ... risk more than others think ... risk more than others think is safe;is safe; ... dream more than others think ... dream more than others think is practical;is practical; ... expect more than others think ... expect more than others think is possible.”is possible.”

Source: Anon.Source: Anon. (Posted @ tompeters.com by (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)K.Sriram, November 27, 2006 1:17 AM)

If Not If Not ExcellenceExcellence

,, What?What?

““The capacity to develop close and The capacity to develop close and enduring relationships is the mark of enduring relationships is the mark of a leader. Unfortunately, many leaders a leader. Unfortunately, many leaders of major companies believe their job of major companies believe their job is to create the strategy, organization is to create the strategy, organization

structure and organizational structure and organizational processes—then they just delegate processes—then they just delegate

the work to be done, remaining aloof the work to be done, remaining aloof from the people doing from the people doing

the work.”the work.” —Bill George, —Bill George, Authentic LeadershipAuthentic Leadership

EXCELLENCE.EXCELLENCE. ALWAYS.ALWAYS.Zagreb/05 June 2008Zagreb/05 June 2008

Appendix OneAppendix One

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

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

or …or …

While waiting last week [early December 2007] in the Albany airport to While waiting last week [early December 2007] in the Albany airport to board a Southwest Airlines flight to Reagan, I happened across the board a Southwest Airlines flight to Reagan, I happened across the latest latest Harvard Business ReviewHarvard Business Review, on the cover of which was a yellow , on the cover of which was a yellow sticker. The sticker had on it the words “Mapping your competitive sticker. The sticker had on it the words “Mapping your competitive

position.” It referred to a feature article by my friend Rich D’Aveni. His position.” It referred to a feature article by my friend Rich D’Aveni. His work is uniformly good—and I have said as much publicly on several work is uniformly good—and I have said as much publicly on several

occasions dating back 15 years. I’m sure this article is good, too—occasions dating back 15 years. I’m sure this article is good, too—though I didn’t read it. In fact it triggered a furious negative “Tom though I didn’t read it. In fact it triggered a furious negative “Tom reaction” as my wife calls it. Of course I believe you should worry reaction” as my wife calls it. Of course I believe you should worry

about your “competitive position.”about your “competitive position.” But instead of But instead of obsessing on competitive position and other obsessing on competitive position and other

abstractions, as the B-schools and abstractions, as the B-schools and consultants would always have us do, I consultants would always have us do, I

instead wondered about some “practical instead wondered about some “practical stuff” which I believe is more important to stuff” which I believe is more important to

the short- and long-term health of the the short- and long-term health of the enterprise, tiny or enormous.enterprise, tiny or enormous.

““Unfortunately many Unfortunately many leaders of major leaders of major

companies believe their companies believe their job is to create the job is to create the

strategy, organization strategy, organization and organization and organization

processes—remaining processes—remaining aloof from the people aloof from the people doing the work.”doing the work.” —George —George

Kohlrieser, Kohlrieser, Hostage at the Table Hostage at the Table (GK is, among other things, (GK is, among other things, a hostage negotiator with a 95% success rate)a hostage negotiator with a 95% success rate)

1. 1. Have you in the last 10 days … visited a Have you in the last 10 days … visited a customecustomer?r?2. 2. Have you called a customer … Have you called a customer … TODAYTODAY??3. Have you in the last 60-90 days … had a seminar in which several folks from the 3. Have you in the last 60-90 days … had a seminar in which several folks from the customer’s operation (different levels, different functions, different divisions) interacted, customer’s operation (different levels, different functions, different divisions) interacted, via facilitator, with various of your folks?via facilitator, with various of your folks?

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

1.1. Have you in the last Have you in the last 10 days … visited a10 days … visited a

customecustomer?r? 2.2. Have you called a Have you called a customer … customer …

TODAYTODAY??

Blog1231.07

FLASH!FLASH!FLASH!FLASH!FLASH!FLASH!FOR IMMEDIATE ACTION!FOR IMMEDIATE ACTION!FOR IMMEDIATE ACTION!FOR IMMEDIATE ACTION!FOR IMMEDIATE ACTION!FOR IMMEDIATE ACTION!OLD YEAR’S RESOLUTION!OLD YEAR’S RESOLUTION!Call (C-A-L-L!) (NOT E-MAIL!) 25-50 (NO LESS THAN 25) Call (C-A-L-L!) (NOT E-MAIL!) 25-50 (NO LESS THAN 25) people … TODAY people … TODAY ** …to thank them for their support this …to thank them for their support this year (2007) …year (2007) …and wish them and their families and colleagues a and wish them and their families and colleagues a Happy 2008!Happy 2008! ** *** **** ***** ******

*Today = TODAY = N-O-W (not “within the hour”)**Remember: ROIR > ROI. ROIR = Return On Investment in Relationships. Success = ƒ(Relationships).***This is the most important piece of advice I have provided this year.****This is … Not Optional.*****Trust me: This is fun!!!!******Trust me: This “works.”

Happy 2008!!!Happy 2008!!!

I posted this at I posted this at tompeters.comtompeters.com on New on New

Year’s Eve 2007.Year’s Eve 2007.

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

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

16. Have you in the last six months had a week-long, visible, very intensive 16. Have you in the last six months had a week-long, visible, very intensive visit-“tour”visit-“tour” of external customers? of external customers?17. Have you in the last 60 days called an abrupt halt to a meeting and “ordered” everyone to get out of the office, 17. Have you in the last 60 days called an abrupt halt to a meeting and “ordered” everyone to get out of the office, and “into the field” and in the and “into the field” and in the next eight hoursnext eight hours, after asking those involved, fixed (f-i-x-e-d!) a nagging “small” , after asking those involved, fixed (f-i-x-e-d!) a nagging “small” problem through practical action?problem through practical action?18. Have you in the last week had a rather thorough discussion of a “cool design thing” someone has come 18. Have you in the last week had a rather thorough discussion of a “cool design thing” someone has come across—away from your industry or function—at a Web site, in a product or its packaging? across—away from your industry or function—at a Web site, in a product or its packaging? 19. Have you in the last two weeks had an informal meeting—at least an hour long—with a frontline employee to 19. Have you in the last two weeks had an informal meeting—at least an hour long—with a frontline employee to discuss things we do right, things we do wrong, what it would take to meet your mid- to long-term aspirations?discuss things we do right, things we do wrong, what it would take to meet your mid- to long-term aspirations?20. Have you had in the last 60 days had a20. Have you had in the last 60 days had a general meeting to discuss “things we do wrong” … that we general meeting to discuss “things we do wrong” … that we can fix in the next can fix in the next fourteen daysfourteen days??

UniCredit Group/UniCredit Group/ UniCredito Italiano* ** UniCredito Italiano* **—3—3rdrd party measurement party measurement—Customer-initiated—Customer-initiated measurement measurement—Primary $$$$ incentives—Primary $$$$ incentives—“Factories”—“Factories”—Primary Corporate Initiative—Primary Corporate Initiative—Etc—Etc*#13*#13**TP/#1**TP/#1

The director of staff services at The director of staff services at the giant financial services firm, the giant financial services firm, UniCredit Group, installed the UniCredit Group, installed the

most thorough internal customer most thorough internal customer satisfaction measures schemesatisfaction measures scheme I have seen—with exceptional I have seen—with exceptional

rewards for those who make the rewards for those who make the grade with their internal grade with their internal

customers.customers.

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

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

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

You = Your You = Your calendarcalendar***Calendars *Calendars nevernever lielie

All we have is our time. The All we have is our time. The way we spend our time way we spend our time isis

our priorities, our priorities, isis our our “strategy.”“strategy.” Your calendar Your calendar knows what you really knows what you really care about. Do you?care about. Do you?

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

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

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

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

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

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

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

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

COMPLETE RUPTURE.COMPLETE RUPTURE.

R.O.I.RR.O.I.R..

RReturn eturn OOn n IInvestment In nvestment In RRelationshipselationships

Job Job One.One.

““You You must must

care.”care.” —General —General

Melvin ZaisMelvin Zais

““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

Tom Peters’ EXCELLENCE. ALWAYS. Zagreb/ICPE/05 June 2008

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