LONGLONGTom Peters’Tom Peters’

Excellence.Excellence.Always.Always.

Developing a Culture of ExcellenceDeveloping a Culture of ExcellenceThe Second Annual Leadership LectureThe Second Annual Leadership Lecture

Abu Dhabi/10 March 2009Abu Dhabi/10 March 2009

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”

Enough …Enough …

““Too Much Cost, Not Enough Value” … “Too Too Much Cost, Not Enough Value” … “Too Much Speculation, Not Enough Investment” … Much Speculation, Not Enough Investment” … “Too Much Complexity, Not Enough Simplicity” “Too Much Complexity, Not Enough Simplicity” … “Too Much Counting, Not Enough Trust” … … “Too Much Counting, Not Enough Trust” …

“Too Much Business Conduct, Not Enough “Too Much Business Conduct, Not Enough Professional Conduct” … “Too Much Professional Conduct” … “Too Much

Salesmanship, Not Enough Stewardship” … Salesmanship, Not Enough Stewardship” … “Too Much Focus on Things, Not Enough Focus “Too Much Focus on Things, Not Enough Focus

on Commitment” … “Too Many Twenty-first on Commitment” … “Too Many Twenty-first Century Values, Not Enough Eighteenth-Century Values, Not Enough Eighteenth-

Century Values” … “Too Much ‘Success,’ Not Century Values” … “Too Much ‘Success,’ Not Enough Character” Enough Character” —chapter titles from John Bogle, —chapter titles from John Bogle, Enough. The Measures of Money, Business, and LifeEnough. The Measures of Money, Business, and Life (Bogle is (Bogle is

founder of the Vanguard Mutual Fund Group)founder of the Vanguard Mutual Fund Group)

The 19 Es ofThe 19 Es ofExcellenceExcellence

If Not Excellence, What?If Not Excellence, What?If Not Excellence Now, When?If Not Excellence Now, When?The “19 Es” of ExcellenceThe “19 Es” of Excellence

EnthusiasmEnthusiasm.. (Be an irresistible force of nature!) (Be an irresistible force of nature!) EnerEnergy.gy. (Be fire! Light fires!)(Be fire! Light fires!)ExuberanceExuberance.. (Vibrate—cause earthquakes!)(Vibrate—cause earthquakes!)ExecutionExecution.. (Do it! Now! Get it done! Barriers are baloney! Excuses are for wimps! Accountability is gospel! (Do it! Now! Get it done! Barriers are baloney! Excuses are for wimps! Accountability is gospel! Adhere to the Bill Parcells doctrine: “Blame nobody! Expect nothing! Do something!”)Adhere to the Bill Parcells doctrine: “Blame nobody! Expect nothing! Do something!”)EmEmppowermentowerment.. (Respect and appreciation! Always ask, “What do you think?”(Respect and appreciation! Always ask, “What do you think?” Then: Listen! Liberate! Celebrate! 100% innovators or bust!)Then: Listen! Liberate! Celebrate! 100% innovators or bust!)EdEdgginessiness.. (Perpetually dancing at the frontier, and a little or a lot beyond.)(Perpetually dancing at the frontier, and a little or a lot beyond.)EnraEnraggeded.. (Determined to challenge & change the status quo!)(Determined to challenge & change the status quo!)EnEnggaaggeded.. (Addicted to MBWA/Managing By Wandering Around. In touch. Always.) (Addicted to MBWA/Managing By Wandering Around. In touch. Always.) ElectronicElectronic.. (Partners with the world 60/60/24/7 via electronic community building(Partners with the world 60/60/24/7 via electronic community building and entanglement of every sort. Crowdsourcing/doing power!)and entanglement of every sort. Crowdsourcing/doing power!)EncomEncomppassingassing.. (Relentlessly pursue diverse opinions—the more diversity the merrier! Diversity per se “works”!)(Relentlessly pursue diverse opinions—the more diversity the merrier! Diversity per se “works”!)EmotionEmotion.. (The alpha. The omega. The essence of leadership. The essence of sales. (The alpha. The omega. The essence of leadership. The essence of sales. The essence of marketing. The essence. Period. Acknowledge it.)The essence of marketing. The essence. Period. Acknowledge it.)EmEmppathathy.y. (Connect, connect, connect with others’ reality and aspirations! “Walk(Connect, connect, connect with others’ reality and aspirations! “Walk in the other person’s shoes”—until the soles have holes!)in the other person’s shoes”—until the soles have holes!)ExExpperienceerience.. (Life is theater! Make every activity-contact memorable! Standard:(Life is theater! Make every activity-contact memorable! Standard: “ “Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.)Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.)EliminateEliminate.. (Keep it simple!)(Keep it simple!)ErrorErrorppronerone.. (Ready! Fire! Aim! Try a lot of stuff and make a lot of booboos and then try some more stuff(Ready! Fire! Aim! Try a lot of stuff and make a lot of booboos and then try some more stuff and make some more booboos—all of it at the speed of light!)and make some more booboos—all of it at the speed of light!)EvenhandedEvenhanded.. (Straight as an arrow! Fair to a fault! Honest as Abe!)(Straight as an arrow! Fair to a fault! Honest as Abe!)ExpectationsExpectations.. (Michelangelo: “The greatest danger for most of us is not that our aim is too high and we miss it, (Michelangelo: “The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.” Amen!)but that it is too low and we reach it.” Amen!)EudaimoniaEudaimonia.. (Pursue the highest of human moral purpose—the core of Aristotle’s philosophy. Be of service. (Pursue the highest of human moral purpose—the core of Aristotle’s philosophy. Be of service. Always.)Always.)ExcellenceExcellence.. (The only standard! Never an exception! Start now! No excuses! If not Excellence, what?(The only standard! Never an exception! Start now! No excuses! If not Excellence, what? If not Excellence now, when?)If not Excellence now, when?)

““You do not merely want to You do not merely want to be the best of the best.be the best of the best. You want to be You want to be considered the considered the

only ones who do only ones who do what you dowhat you do.” .” —Jerry

Garcia

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))

““I am a I am a dispenser of dispenser of

enthusiasm.”enthusiasm.” —Ben Zander

““InsanelInsanely great” y great”

““Radically Radically thrilling”thrilling”

BMW

MBWMBWAA

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

““It suddenly It suddenly occurred to meoccurred to me that that in the space of two in the space of two or three hours he or three hours he

nevernever talked about talked about cars.” cars.” —Les Wexner—Les Wexner                         

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

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

you’ve learned in your long you’ve learned in your long and distinguished career?” and distinguished career?”

His immediate answer …His immediate answer …

Conrad Hilton, at a gala celebrating his life,Conrad Hilton, at a gala celebrating his life, was asked, “What was the most important lesson you’ve learned was asked, “What was the most important lesson you’ve learned

in your long and distinguished career?” in your long and 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””

““Execution Execution isis

strategy.”strategy.” —Fred Malek—Fred Malek fffffii

InternalInternal organizational organizational excellence = excellence =

Deepest “Blue Deepest “Blue Ocean”Ocean”

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

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

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, , 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

20072007SydneSydne

yy

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

… … no less than no less than shrinesshrines in in which the full and awesome which the full and awesome

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

Entrepreneurial flairEntrepreneurial flair of of diverse individualsdiverse individuals is is

unleashed in passionate unleashed in passionate pursuit of … Excellence.pursuit of … Excellence.

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

dreamed of beingdreamed of being.”.” ——Robert Altman, Oscar acceptance speechRobert Altman, Oscar acceptance speech

““We are a We are a ‘Life ‘Life

Success’ Success’ Company.”Company.”

Dave Liniger, founder, RE/MAX

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

employees like employees like customers.”customers.” —Herb Kelleher, —Herb Kelleher, complete answer, upon being asked his “secrets to success”complete answer, upon being asked his “secrets to success”

Source: Joe Nocera, Source: Joe Nocera, NYTNYT, “Parting Words of an Airline Pioneer,” on the occasion , “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots

union took out a full-page ad in USA Today thanking HK for all he had done; union took out a full-page ad in USA Today thanking HK for all he had done; across theacross the

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

““The four most The four most important words in any important words in any

organizationorganization

are …are … ‘What do ‘What do you think?’you think?’ ” ”

Source: courtesy Dave Wheeler, posted atSource: courtesy Dave Wheeler, posted at tompeters.com, source of original unknown (0609.08) tompeters.com, source of original unknown (0609.08)

1818””

““The deepest The deepest human need is human need is the need to be the need to be appreciated.”appreciated.”

William JamesWilliam James

““Leaders Leaders

‘‘SERVESERVE’’ people. people.

Period.”Period.” —inspired by Robert Greenleaf

Ben Ben Changes Changes

His BHAG!*His BHAG!*

*Big Hairy Audacious Goal/Collins*Big Hairy Audacious Goal/Collins

TP: TP: “How to flush

$500,000 down

the toilet in one easy

lesson!!”

< CAPEX< CAPEX> People!> People!

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

Brand Brand = =

Talent.Talent.

100 Best Companies to work for/2008100 Best Companies to work for/2008

#28/PCL Construction#28/PCL Construction EnterprisesEnterprises#37/TD Industries#37/TD Industries

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

or it's simor it's simppllyy not not worth doinworth doing.”g.” —Richard Branson—Richard Branson

#1 Truthteller …#1 Truthteller …

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

““I used to have a rule for myself that at any point in I used to have a rule for myself that at any point in time I wanted to have in mind time I wanted to have in mind — as it so happens, — as it so happens, also in writing, on a little card I carried around with also in writing, on a little card I carried around with me — the three big things I was trying to get done. me — the three big things I was trying to get done.

ThreeThree..

Not two. Not two. Not four. Not four. Not five.Not five.Not ten.Not ten.Three.”Three.”

— Richard Haass, — Richard Haass, The Power to PersuadeThe Power to Persuade

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

‘To-don’t ‘To-don’t ’’ List !” List !”

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

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

Gandhi

Skip the mapSkip the map

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

or …or …

1. Have you in 1. Have you in thethe last 10 days … last 10 days … visited a visited a customecustomer?r?2. Have you called 2. Have you called aa customer … customer … TODAYTODAY??

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

Pursuing Pursuing Discomfort!Discomfort!

““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!!

BIG?

“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

““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

"...In one study, perceivers are asked to watch a video tape of a "...In one study, perceivers are asked to watch a video tape of a basketball game and they are asked to count the number of times one basketball game and they are asked to count the number of times one team takes possession of the ball. During the film clip, which lasts a team takes possession of the ball. During the film clip, which lasts a few minutes, few minutes, a a pperson in a erson in a ggorilla suit strolls onto the center of orilla suit strolls onto the center of the court, turns and faces the audience and does a little the court, turns and faces the audience and does a little jjiigg. . The The ggorilla then slowlorilla then slowlyy walks off the court walks off the court.. The remarkable fact is The remarkable fact is that perceivers that perceivers ((includinincludingg this author this author)) do not notice the gorilla. This is do not notice the gorilla. This is an example of what has been called inattentional blindness...”an example of what has been called inattentional blindness...”

Source: Source: http://host.uniroma3.it/progetti/kant/field/hurleysymp_noe.htm

"A demonstration of inattentional blindness goes something like this. "A demonstration of inattentional blindness goes something like this. Viewers are asked to monitor three basketball players in white T-shirts Viewers are asked to monitor three basketball players in white T-shirts and count the number of times they pass the ball during a video clip. and count the number of times they pass the ball during a video clip. Thirty-four seconds into this experiment, Thirty-four seconds into this experiment, a a pperson wearinerson wearingg a a ggorilla orilla suit walks throusuit walks througgh the h the ggame and even ame and even ppauses to auses to ppound his ound his chest before movinchest before movingg on on.. Despite their vigilance, approximately Despite their vigilance, approximately

halfhalf the viewers never see the gorilla. Even after they are told the viewers never see the gorilla. Even after they are told about the gorilla and shown the video, they refuse to believe it.“about the gorilla and shown the video, they refuse to believe it.“Source: Source: http://www.aquaticsafetygroup.com/perceptions.html

#4 Japan#4 Japan#2T USA#2T USA

#2T China#2T China

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

#2 China#2 China

#1 #1 GermanyGermany

Reason!!!Reason!!!

MittelstandMittelstand

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.

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

Dick ‘n Dick ‘n dandan

““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

““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

““RewardReward excellent failures.

PunishPunish mediocre

successes.”Phil Daniels, Sydney exec

4/404/40

DECENTRALIZATIONDECENTRALIZATION..

EXECUTION.EXECUTION.ACCOUTABILITY.ACCOUTABILITY.

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

Small Small

is (can often be)is (can often be)

BIGBIG

““Design is Design is evereveryythinthing. g. Everything is Everything is desidesiggnn.”.”““We are We are allall designers.” designers.”

Inspiration:Inspiration: The Power of Design: A Force for The Power of Design: A Force for Transforming Everything, Transforming Everything, Richard FarsonRichard Farson

Behavioral Primacy!E.g.: plate size; E.g.: plate size;

location of platters, location of platters,

6.56.5 feet Away = feet Away =

--6363% % “Seconds” “Seconds” Source: Brian Wansink, Source: Brian Wansink, Mindless EatingMindless Eating (20 lbs per year; 200 decisions per day) (20 lbs per year; 200 decisions per day)

Socks = Socks = 10K10K

Seating arrangementSeating arrangementTable shapeTable shapePhysical arrangements (distance,Physical arrangements (distance, co-location, grand or not/Apple)co-location, grand or not/Apple)Geologists/GeophysicistsGeologists/GeophysicistsXFX/Cross-functional ExcellenceXFX/Cross-functional Excellence (meetings, talks, etc)(meetings, talks, etc)““The hang out axiom” (“We areThe hang out axiom” (“We are what we eat.”)what we eat.”)See greenery, recover faster See greenery, recover faster (map,(map, smell of cookies, pianos/smell of cookies, pianos/ Planetree)Planetree)Vary road crossing times/engageVary road crossing times/engage

We AreWe Are What We What We

Eat Eat

We We areare the the companycompany we keepwe keep

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

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’ ” ”

““Diverse groups of problem solvers—groupsDiverse groups of problem solvers—groups of people with diverse tools—consistently of people with diverse tools—consistently outperformed groups of the best and the outperformed groups of the best and the

brightest. If I formed two groups, one brightest. If I formed two groups, one random (and therefore diverse) and one random (and therefore diverse) and one

consisting of the best individual performers, consisting of the best individual performers, the first group almost always did better. …the first group almost always did better. …

DiversityDiversity trumped trumped abilityability.”.” —Scott Page, —Scott Page, The Difference: How The Difference: How

the Power of Diversity Creates Better Groups,the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Diversity Firms, Schools, and Societies Diversity

““[CEO A.G.] Lafley has shifted [CEO A.G.] Lafley has shifted P&G’sP&G’s focus on inventing all its own focus on inventing all its own

products to developing products to developing

others’ others’ inventions at inventions at least half the least half the timetime.. One successful One successful

example Mr. Clean Magic Eraser, example Mr. Clean Magic Eraser, based on a product found in anbased on a product found in an

Osaka market.” Osaka market.” ——FortuneFortune

Axiom: Never use a vendor who is not in the

top quartiletop quartile (decile?) in their industry on R&D

spending!*

*Inspired by Hummingbird

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

Companies offering Companies offering work to online work to online

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

‘crowdsourcing.’”‘crowdsourcing.’” —Headline, —Headline, FTFT, 0110.07, 0110.07

Rob McEwen/CEO/CEO/Goldcorp Inc./Goldcorp Inc./

Red Lake Red Lake goldSource: Wikinomics: How Mass

Collaboration Changes Everything, Don Tapscott & Anthony WilliamsDon Tapscott & Anthony Williams

“The The Bottleneck Bottleneck

Is at the Top Is at the Top of the of the

Bottle”Bottle”“Where are you likely to find people with the least diversity of

experience, the largest investment in the past, and the greatest reverence for industry dogma:

AtAt thethe totop!”p!”

— Gary Hamel/Harvard Business Review

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

Mike Bloomberg:Mike Bloomberg:

““Curiosity.”Curiosity.”

““Who’s the most Who’s the most interesting person interesting person you’ve met in the you’ve met in the last 90 days? How last 90 days? How do I get in touch do I get in touch

with them?”with them?” —Fred Smith—Fred Smith

No “Anger No “Anger Management,” Management,”

Please!Please!

All You Need to Know About All You Need to Know About “Sources of Innovation”:“Sources of Innovation”:

Angry Angry people!people! [angry with [angry with

the status quo]the status quo]

The “8Ps” of Innovation Success:The “8Ps” of Innovation Success:

Pissed off! Pissed off! [Determined to change the world][Determined to change the world] Passion!!!! Passion!!!! [Persist, take the heat, sell][Persist, take the heat, sell] Prototypes. Prototypes. [Fast & Furious][Fast & Furious]

pow!! pow!! [Insanely great!][Insanely great!]

Pals. Pals. [Buddies with different skills, recruiting ability][Buddies with different skills, recruiting ability]

Protector. Protector. [Run cover, champion your cause][Run cover, champion your cause]

Politics. Politics. [Political skill][Political skill]

Persistence. Persistence. [Can handle the bumps and U-turns][Can handle the bumps and U-turns]

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

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

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

Scale?

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

quantity and quantity and imaginativeness of imaginativeness of innovation shall be innovation shall be

the same in all the same in all functions functions —e.g., in HR and —e.g., in HR and

purchasing as much as in marketing or purchasing as much as in marketing or product development.product development.

XFXXFX

X X =XFX*=XFX*

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

Never Never waste a waste a lunch!lunch!

????????

% XF % XF lunches*lunches*

*Measure!*Measure!

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’”*

*Entire “XF-50” List is an Appendix to the LONG version *Entire “XF-50” List is an Appendix to the LONG version of this presentation, posted at tompeters.comof this presentation, posted at tompeters.com

#1#1

““Development can help great Development can help great

people be even better—people be even better— but if but if I had a dollar to I had a dollar to

spend, I’d spend 70 spend, I’d spend 70 cents getting the cents getting the

right person in the right person in the doordoor.”.” ——Paul Russell, Director, Leadership &Paul Russell, Director, Leadership &

Development, Google Development, Google

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

asasppect of businessect of business and yet remains and yet remains

woefully woefully misunderstood.”misunderstood.”

Source: Source: Wall Street JournalWall Street Journal, 10.29.08,, 10.29.08, review ofreview of Who: The A Method for Hiring, Who: The A Method for Hiring,

Geoff Smart and Randy StreetGeoff Smart and Randy Street

#1.#1.StrategicStrategic..Priority.Priority.Period.Period.

#1A#1A

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

Employee retention & satisfaction:Employee retention & satisfaction: OverwhelminOverwhelminggllyy, ,

based on the based on the first-first-line manaline managger!er!

Source: Marcus Buckingham & Curt Coffman, Source: Marcus Buckingham & Curt Coffman, First, Break All First, Break All the Rules: What the World’s Greatest Managers Do Differentlythe Rules: What the World’s Greatest Managers Do Differently

#1B#1B

2/year 2/year = =

legacy.legacy.

Sea Sea ChangeChange

““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

““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 —Aude

Zieseniss de Thuin, Zieseniss de Thuin, Financial TimesFinancial Times

Tea Tea PowerPower

GiveGive good good tea! tea!

““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 General Armchair 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 command.”future coalition command.”

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

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

centerpiece of my work with centerpiece of my work with executives who want to get executives who want to get better.”better.” —Marshall Goldsmith—Marshall Goldsmith, What Got You Here , What Got You Here Won’t Get You There: How Successful People Become Even Won’t Get You There: How Successful People Become Even

More Successfu. More Successfu.

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. THE PROBLEM. THE RESPONSE TO THE RESPONSE TO THE

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

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

““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

““eighty eighty percent of percent of success is success is

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

ProfitableProfitable

““We are We are thoughtful in thoughtful in all we do.”all we do.”

ThoughtfulnessThoughtfulness is key to customer retention. is key to customer retention.ThoughtfulnessThoughtfulness is key to employee recruitment is key to employee recruitment and satisfaction.and satisfaction.Thoughtfulness Thoughtfulness is key to brand perception.is key to brand perception.ThoughtfulnessThoughtfulness is key to your ability to look in is key to your ability to look in the mirror—and tell your kids about your job.the mirror—and tell your kids about your job.““ThoughtfulnessThoughtfulness is free.” is free.”ThoughtfulnessThoughtfulness is key to speeding things up— is key to speeding things up— it reduces friction.it reduces friction.ThoughtfulnessThoughtfulness is key to transparency and is key to transparency and eveneven cost containment—it abets rather than stiflescost containment—it abets rather than stifles truth-telling.truth-telling.

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

““KindnesKindness is s is

free.”free.”

TGRTGR

2-cent 2-cent candycandy

Commerce Bank: From “Service” to Commerce Bank: From “Service” to “Experience”“Experience”

7X. 730A-7X. 730A-800P. F12A.800P. F12A.

““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

<TG<TGWWvs.vs.

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

DifficultDifficult Times … Times …

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

anxious to win”anxious to win”

-Costs-Costs+R&D+R&D+Sales+Sales+Marketin+Marketingg

Excellence.Excellence.Always.Always.

If Not Excellence, What?If Not Excellence, What?If Not Excellence Now, When?If Not Excellence Now, When?The “19 Es” of ExcellenceThe “19 Es” of Excellence

EnthusiasmEnthusiasm.. (Be an irresistible force of nature!) (Be an irresistible force of nature!) EnerEnergy.gy. (Be fire! Light fires!)(Be fire! Light fires!)ExuberanceExuberance.. (Vibrate—cause earthquakes!)(Vibrate—cause earthquakes!)ExecutionExecution.. (Do it! Now! Get it done! Barriers are baloney! Excuses are for wimps! Accountability is gospel! (Do it! Now! Get it done! Barriers are baloney! Excuses are for wimps! Accountability is gospel! Adhere to the Bill Parcells doctrine: “Blame nobody! Expect nothing! Do something!”)Adhere to the Bill Parcells doctrine: “Blame nobody! Expect nothing! Do something!”)EmEmppowermentowerment.. (Respect and appreciation! Always ask, “What do you think?”(Respect and appreciation! Always ask, “What do you think?” Then: Listen! Liberate! Celebrate! 100% innovators or bust!)Then: Listen! Liberate! Celebrate! 100% innovators or bust!)EdEdgginessiness.. (Perpetually dancing at the frontier, and a little or a lot beyond.)(Perpetually dancing at the frontier, and a little or a lot beyond.)EnraEnraggeded.. (Determined to challenge & change the status quo!)(Determined to challenge & change the status quo!)EnEnggaaggeded.. (Addicted to MBWA/Managing By Wandering Around. In touch. Always.) (Addicted to MBWA/Managing By Wandering Around. In touch. Always.) ElectronicElectronic.. (Partners with the world 60/60/24/7 via electronic community building(Partners with the world 60/60/24/7 via electronic community building and entanglement of every sort. Crowdsourcing/doing power!)and entanglement of every sort. Crowdsourcing/doing power!)EncomEncomppassingassing.. (Relentlessly pursue diverse opinions—the more diversity the merrier! Diversity per se “works”!)(Relentlessly pursue diverse opinions—the more diversity the merrier! Diversity per se “works”!)EmotionEmotion.. (The alpha. The omega. The essence of leadership. The essence of sales. (The alpha. The omega. The essence of leadership. The essence of sales. The essence of marketing. The essence. Period. Acknowledge it.)The essence of marketing. The essence. Period. Acknowledge it.)EmEmppathathy.y. (Connect, connect, connect with others’ reality and aspirations! “Walk(Connect, connect, connect with others’ reality and aspirations! “Walk in the other person’s shoes”—until the soles have holes!)in the other person’s shoes”—until the soles have holes!)ExExpperienceerience.. (Life is theater! Make every activity-contact memorable! Standard:(Life is theater! Make every activity-contact memorable! Standard: “ “Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.)Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.)EliminateEliminate.. (Keep it simple!)(Keep it simple!)ErrorErrorppronerone.. (Ready! Fire! Aim! Try a lot of stuff and make a lot of booboos and then try some more stuff(Ready! Fire! Aim! Try a lot of stuff and make a lot of booboos and then try some more stuff and make some more booboos—all of it at the speed of light!)and make some more booboos—all of it at the speed of light!)EvenhandedEvenhanded.. (Straight as an arrow! Fair to a fault! Honest as Abe!)(Straight as an arrow! Fair to a fault! Honest as Abe!)ExpectationsExpectations.. (Michelangelo: “The greatest danger for most of us is not that our aim is too high and we miss it, (Michelangelo: “The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.” Amen!)but that it is too low and we reach it.” Amen!)EudaimoniaEudaimonia.. (Pursue the highest of human moral purpose—the core of Aristotle’s philosophy. Be of service. (Pursue the highest of human moral purpose—the core of Aristotle’s philosophy. Be of service. Always.)Always.)ExcellenceExcellence.. (The only standard! Never an exception! Start now! No excuses! If not Excellence, what?(The only standard! Never an exception! Start now! No excuses! If not Excellence, what? If not Excellence now, when?)If not Excellence now, when?)

Excellence.Excellence.Always.Always.

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

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