Conrad Conrad Hilton …Hilton …

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

was asked, was asked, “What was the most important lesson you’ve learned in you

long and distinguished career?” His immediate His immediate

answer …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

““The art of war does not The art of war does not require complicated require complicated

maneuvers; the simplest maneuvers; the simplest are the best and common are the best and common

sense is fundamental. From sense is fundamental. From which one might wonder which one might wonder how it is generals make how it is generals make

blunders; blunders; it is because theit is because theyy trtryy to be clever to be clever.”.” —Napoleon—Napoleon

Tom Peters’Tom Peters’

Excellence.Excellence.Always.Always.

Towards EXCELLENCE in Public Sector PerformanceTowards EXCELLENCE in Public Sector PerformanceRiyadh/2 November 2009Riyadh/2 November 2009(Slides at tompeters.com)(Slides at tompeters.com)

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”

Public Sector Public Sector *U.S. Navy #1/Combat Engineer, Vietnam,*U.S. Navy #1/Combat Engineer, Vietnam, 1966-1968.1966-1968.*U.S. Navy #2/Pentagon, Naval Construction*U.S. Navy #2/Pentagon, Naval Construction Forces policy co-ordination, 1968-1970.Forces policy co-ordination, 1968-1970.*Co-founder, Stanford Graduate School of*Co-founder, Stanford Graduate School of Business Urban Management Program, PublicBusiness Urban Management Program, Public Management Program), 1972-1977 Management Program), 1972-1977 *White House, Executive Director, Cabinet*White House, Executive Director, Cabinet Committee on International Narcotics Committee on International Narcotics Control;Control; Assistant to the Director for Federal DrugAssistant to the Director for Federal Drug Policy, Office of Management and Budget,Policy, Office of Management and Budget, 1973-1974 1973-1974 *Informal advisor to Bob Stone, Director,*Informal advisor to Bob Stone, Director, National Performance Review (“Re-inventingNational Performance Review (“Re-inventing Government”), 1992-1996. Government”), 1992-1996.

Lesson #1:Lesson #1: Captain “Day” vs. vs. Captain “Night”

#1#1

““Excellence …Excellence … can be obtained if you: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 K.Sriram, November 27, 2006 1:17 AM) (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)

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.

MichelangeloMichelangelo

#2#2

14,00014,00020,00020,000

14,00014,00020,00020,000

3030

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

3030/Craigslist/Craigslist

#3#3

19771977

MBWMBWAA

19821982

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

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)

20072007SiberiaSiberia

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, , joyfuljoyful, , creativecreative, , entrepreneurialentrepreneurial endeavor that endeavor that elicits maximum elicits maximum

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

20072007SydneSydne

yy

Organizations Organizations existexist to to serveserve. Period.. Period.Leaders Leaders live live toto serveserve. Period.. Period.

… … no less than no less than CathedralsCathedrals in which the full and in which the full and

awesome power of the awesome power of the Imagination and Spirit and Imagination and Spirit and native Entrepreneurial flairnative Entrepreneurial flair

of diverse individualsof diverse individuals is is unleashed in passionate unleashed in passionate pursuit of … pursuit of … ExcellenceExcellence..

““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 they’ve ever been they’ve ever been before, more than before, more than

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

speechspeech

Thank you Peter Drucker/AIMThank you Peter Drucker/AIM

Our goal is to serve our customers brilliantly Our goal is to serve our customers brilliantly and profitably over the long haul.and profitably over the long haul.

Serving our customers brilliantly and profitably Serving our customers brilliantly and profitably over the long haul is a product of brilliantly over the long haul is a product of brilliantly serving, over the long haul, the people who serving, over the long haul, the people who

serve the customer.serve the customer.Hence, our job as leaders—the alpha and the Hence, our job as leaders—the alpha and the

omega and everything in between—is abetting omega and everything in between—is abetting the sustained growth and success and the sustained growth and success and

engagement and enthusiasm and commitment engagement and enthusiasm and commitment to Excellence of those, one at a time, who to Excellence of those, one at a time, who

directly or indirectly serve the ultimate directly or indirectly serve the ultimate customer.customer.

Source:Source: The Little BIG Things: 163 Ways to Pursue EXCELLENCE The Little BIG Things: 163 Ways to Pursue EXCELLENCE

We—leaders of every stripe—are in the “Human We—leaders of every stripe—are in the “Human Growth and Development and Success and Growth and Development and Success and

Aspiration to Excellence business.”Aspiration to Excellence business.”““We” [leaders] only grow when “they” [each and We” [leaders] only grow when “they” [each and

every one of our colleagues] are growing.every one of our colleagues] are growing.““We” [leaders] only succeed when “they” [each We” [leaders] only succeed when “they” [each and every one of our colleagues] are succeeding.and every one of our colleagues] are succeeding.

““We” [leaders] only energeticallyWe” [leaders] only energetically march toward Excellence when “they” [each and march toward Excellence when “they” [each and

every one of our colleagues] are energetically every one of our colleagues] are energetically marching toward Excellence.marching toward Excellence.

Period.Period.

Source:Source: The Little BIG Things: 163 Ways to Pursue EXCELLENCE The Little BIG Things: 163 Ways to Pursue EXCELLENCE

#4#4

““The ONE Question”:The ONE Question”: “In the last year [3 years, current job], name “In the last year [3 years, current job], name

the … the … three three peoplepeople … whose growth you’ve … whose growth you’ve

most contributed to. Please explain where they were at the most contributed to. Please explain where they were at the beginning of the year, where they are today, and where they are beginning of the year, where they are today, and where they are heading in the next 12 months. Please explain your development heading in the next 12 months. Please explain your development strategy in each case. Please tell me your biggest development strategy in each case. Please tell me your biggest development disappointment—looking back, could you or would you have done disappointment—looking back, could you or would you have done

anything differently? Please tell me about your greatest anything differently? Please tell me about your greatest development triumph—and disaster—in the last ten years. Whatdevelopment triumph—and disaster—in the last ten years. What are the ‘three big things’ you’ve learned about helping people are the ‘three big things’ you’ve learned about helping people

grow along the way.”grow along the way.”

#5#5

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

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

1818 secondsseconds

[An obsession with] Listening is ... the ultimate mark[An obsession 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 Collaboration.Collaboration.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 for Listening 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 lastlast..Listening is ... the core of Listening is ... the core of effective Cross-functional effective Cross-functional Communication* Communication* (*Which is in turn Attribute #1 of (*Which is in turn Attribute #1 of organizational effectiveness.)organizational effectiveness.)

[cont.][cont.]

Listening is ... the engine of Listening is ... the engine of superior EXECUTION.superior EXECUTION.Listening is ... the key to Listening is ... the key to making the Sale.making the Sale.Listening is ... the key to Listening is ... the key to Keeping the Customer’s BusinessKeeping the Customer’s Business..Listening is ... the engine of Listening is ... the engine of Network development.Network development.Listening is ... the engine of Listening is ... the engine of Network maintenanceNetwork maintenance..Listening is ... the engine of Listening is ... the engine of Network expansionNetwork expansion..Listening is ... Social Networking’s Listening is ... Social Networking’s “secret weapon.”“secret weapon.”Listening is ... Listening is ... Learning.Learning.Listening is ... the Listening is ... the sine qua non of Renewalsine qua non of Renewal..Listening is ... the Listening is ... the sine qua non of Creativitysine qua non of Creativity..Listening is ... the Listening is ... the sine qua non of Innovationsine qua non of Innovation..Listening is ... the core of Listening is ... the core of taking Diverse opinions aboardtaking Diverse opinions aboard..Listening is ... Listening is ... StrategyStrategy..Listening is ... Listening is ... Source #1 of “Value-added.”Source #1 of “Value-added.”Listening is ... Listening is ... Differentiator #1.Differentiator #1.Listening is ... Listening is ... Profitable.*Profitable.* (*The “R.O.I.” from listening is higher than(*The “R.O.I.” from listening is higher than from any other single activity.)from any other single activity.)Listening is … the bedrock which underpins a Listening is … the bedrock which underpins a Commitment toCommitment to EXCELLENCEEXCELLENCE

*Listening is of the*Listening is of the utmost … utmost … strategicstrategic importance! importance!*Listening is a proper … *Listening is a proper … core core valuevalue ! ! *Listening is … *Listening is … trainabletrainable !!

*Listening is a … *Listening is a … professionprofession ! !

#5A#5A

““The The fourfour most most importantimportant wordswords in in any organization any organization

are …are …

The four most important words in any organizationThe four most important words in any organization

are …are … “What do “What do youyou

think?”think?”

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

““The deepest human The deepest human need is the …need is the …

need to be need to be appreciated.”appreciated.”

—William James—William James

#6#6

1/401/40

try it. Try it. Try it. try it. Try it. Try it. Try it. Try it. Try it.Try it. Try it. Try it.

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

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

Try it. Try it. Try it. Try it. Try it. Try it.

““ExperimenExperiment t

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

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

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

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

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

versionversion ##55.. By the time our rivals 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

Culture of PrototypingCulture of Prototyping

“Effective prototyping may “Effective prototyping may be be thethe most most

valuablevaluable core core competencecompetence an an

innovative organization can innovative organization can hope to have.”hope to have.” —Michael Schrage—Michael Schrage

“the 1%1% solution”

Source: Scott Bedbury (Others: 3M, Google, Shell, NAVFAC)

Parallel Parallel UniverseUniverse

““Fail .Fail . Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

““It is not enough to It is not enough to ‘tolerate’ failure—‘tolerate’ failure—

you must you must

‘celebrate’‘celebrate’ failure.”failure.” —Richard Farson (—Richard Farson (Whoever Makes the Whoever Makes the

Most Mistakes WinsMost Mistakes Wins))

““RewardReward excellent failures. PunishPunish mediocre

successes.”Phil Daniels, Sydney exec

#6A#6A

““Some people look for Some people look for things that went wrong things that went wrong

and try to fix them. I and try to fix them. I look for look for things that things that

went rightwent right,, and try to and try to build off them.”build off them.” —Bob Stone (Mr

ReGo)

““PlannerPlanners” vs. “s” vs. “SearchersSearchers”:”: “In “In foreign aid, Planners announce good intentions but don’t motivate foreign aid, Planners announce good intentions but don’t motivate

anyone to carry them out;anyone to carry them out; Searchers find things Searchers find things that work and build on themthat work and build on them.. Planners apply Planners apply

global blueprints;global blueprints; Searchers adapt to local Searchers adapt to local conditionsconditions.. Planners never hear whether the planned Planners never hear whether the planned

recipients got what they needed;recipients got what they needed; Searchers find out if Searchers find out if the customer is satisfiedthe customer is satisfied.. … … A Planner thinks he A Planner thinks he

already knows the answers; he thinks of poverty as a technical already knows the answers; he thinks of poverty as a technical

engineering problem that his answers will solve.engineering problem that his answers will solve. A Searcher A Searcher admits he doesn’t know the answers in admits he doesn’t know the answers in advance; he hopes to find answers to advance; he hopes to find answers to individual individual pproblems onlroblems onlyy b byy trial and trial and error exerror expperimentationerimentation.. …”…” —William Easterly,—William Easterly,

White Man’s Burden: Why the West’s Efforts to Aid the Rest Have Done White Man’s Burden: Why the West’s Efforts to Aid the Rest Have Done So Much Ill and so Little Good So Much Ill and so Little Good

Demos!Demos! Heroes! Heroes! Stories!Stories!

“A key – perhaps the key – to

leadership is the effective

communication of a story.” —Howard

Gardner, Leading Minds: An Anatomy of Leadership

““StorytellinStorytelling g

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

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

#7#7

“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 …

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

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

obvious: Buy a very Buy a very largelarge

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

Fail: Evolution, Extinction and Economics

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

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

TheTheyy found that found that nonenone ofof the lon the longg-term survivors mana-term survivors managged to ed to outoutpperform the market. Worse, the erform the market. Worse, the lonlongger comer comppanies had been in the anies had been in the

database, the worse thedatabase, the worse theyy did did.” .” —Financial Times—Financial Times

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

#2 China#2 China

#1 #1 GermanyGermany

Reason!!!Reason!!!

MittelstandMittelstand

#8#8

Little =Little =

BIGBIG

Big carts =Big carts =

1.5X1.5XSource: Wal*MartSource: Wal*Mart

Socks = Socks = 10,00010,000

#9#9

<TG<TGWWand …and …

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

2-cent 2-cent candycandy

““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

Stage

#10#10

nonenone!!

Press Ganey AssocPress 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 atisfaction referred to patient’s

health health outcomeoutcome

P.S.P.S. directldirectly related to y related to StaffStaff InteractionInteraction

P.P.S.P.P.S. directldirectly correlated with y correlated with EmploEmployyee ee SatisfactionSatisfaction

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

““There is a misconception that supportive interactions require There is a misconception that supportive interactions require more staff or more time and are therefore more costly. Although more staff or more time and are therefore more costly. Although

labor costs are a substantial part of any hospital budget, the labor costs are a substantial part of any hospital budget, the interactions themselves add nothing to the budget. interactions themselves add nothing to the budget.

Kindness is Kindness is freefree.. Listening to patients or answering their Listening to patients or answering their

questions costs nothing. It can be argued that negative questions costs nothing. It can be argued that negative interactions—alienating patients, being non-responsive to their interactions—alienating patients, being non-responsive to their needs or limiting their sense of control—can be very costly. … needs or limiting their sense of control—can be very costly. …

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

positive way.”positive way.” ——Putting Patients FirstPutting Patients First, Susan Frampton, , Susan Frampton, Laura Gilpin, Patrick CharmelLaura Gilpin, Patrick Charmel

““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

#11#11

problem #1.Opportunity

#1.

X X =XFX*=XFX*

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

Never Never waste a waste a lunch!lunch!

The “XF-50”: 50 Ways to The “XF-50”: 50 Ways to Enhance Cross-Functional Enhance Cross-Functional Effectiveness and Deliver Effectiveness and Deliver

Speed, “Service Speed, “Service Excellence” and “Value-Excellence” and “Value-

added Customer added Customer ‘Solutions’”‘Solutions’”

#12#12

450/8450/8

Lisbon/New Biz:Lisbon/New Biz:

WeeksWeeks to …to …

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

#13#13

““Dennis, you need a … Dennis, you need a …

‘To-don’t ’‘To-don’t ’ List !”List !”

John Sawhill/Major StrategicJohn Sawhill/Major Strategic

Initiative: Initiative: “What areas should “What areas should the Conservancy focus on the Conservancy focus on

and more important— and more important— what activities what activities should we stoshould we stopp

doindoing?”g?”Source: Bill Birchard, Source: Bill Birchard, Nature’s Keepers: The Remarkable Story of How The Nature Nature’s Keepers: The Remarkable Story of How The Nature

Conservancy Became the Largest Environmental Organization in the WorldConservancy Became the Largest Environmental Organization in the World

#14#14

Excellence. Always.Excellence. Always.If not Excellence, If not Excellence, what?what?If not Excellence If not Excellence now, when?now, when?