LONG Tom Peters’ EXCELLENCE. ALWAYS. iGate/Chakra View 2008 02 October/Orlando

LONG LONG

Tom Peters’ Tom Peters’

EXCELLENCEEXCELLENCE. ALWAYS.. ALWAYS.

iGate/Chakra View 2008iGate/Chakra View 200802 October/Orlando02 October/Orlando

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”

Slides at …Slides at …

tompeters.comtompeters.com

MBWMBWAA

““Tom let me tell you the Tom let me tell you the definition of a good lending definition of a good lending

officer. After church on officer. After church on Sunday, on the way home Sunday, on the way home with his family, he takes a with his family, he takes a little detour to drive by the little detour to drive by the factory he just lent money factory he just lent money

to. Doesn’t go in or any such to. Doesn’t go in or any such thing, just drives by and thing, just drives by and

takes a look.”takes a look.”

The Black The Black Swan has Swan has landed!landed!

Career =Career = 11 or or 22 black black swansswans

Thank you Ben & Thank you Ben & Norm, Ike , Gust, Norm, Ike , Gust,

David, Nelson, Ben David, Nelson, Ben II and Delaware …II and Delaware …

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.”

George Crile George Crile (Charlie Wilson’s War)(Charlie Wilson’s War) on Gust on Gust

Avrakotos’ strategy:Avrakotos’ strategy: “He had “He had become something of a become something of a

legend with these legend with these people who manned the people who manned the

underbelly of the underbelly of the Agency [CIA].”Agency [CIA].”

General David Petraeus’ “White lines along the General David Petraeus’ “White lines along the road”:road”:

““Secure and serve the population.Secure and serve the population. Live among the people.Live among the people. Promote reconciliation.Promote reconciliation. Move mounted, work dismounted;Move mounted, work dismounted; situational awareness can only besituational awareness can only be achieved by operating face-to-face,achieved by operating face-to-face, not separated by ballistic glass.not separated by ballistic glass.

WalkWalk..**”” ——David Petraeus, David Petraeus, Men’s JournalMen’s Journal (06.08) (06.08)

* * “I love that last one for its simplicity.”“I love that last one for its simplicity.” —DP —DP

3K3K//5M5M

5,000 miles 5,000 miles for a 5-minute for a 5-minute

face-toface-to-face meeting -face meeting

MBWA, Grameen Style!MBWA, Grameen Style!“Conventional banks ask their clients to come “Conventional banks ask their clients to come to their office. It’s a terrifying place for the poor to their office. It’s a terrifying place for the poor and illiterate. … and illiterate. … The entire Grameen Bank The entire Grameen Bank

system runs on the principle that people system runs on the principle that people should not come to the bank, the bank should not come to the bank, the bank

should go to the people.should go to the people. … … If any staff If any staff member is seen in the office, it should be taken member is seen in the office, it should be taken as a violation of the rules of the Grameen Bankas a violation of the rules of the Grameen Bank. .

… It is essential that [those setting up a new … It is essential that [those setting up a new village Branch] village Branch] have no office and no have no office and no pplace to lace to stastay. The reason is to make us as different as y. The reason is to make us as different as

possible from government officialspossible from government officials.” .” Source: Source: Muhammad Yunus, Banker to the Poor

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

enthusiasm.”enthusiasm.”

—Ben Zander

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

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

The Real World’s “Little” Rule BookThe Real World’s “Little” Rule Book

Ben/teaBen/teaNorm/teaNorm/tea

DDE/make friendsDDE/make friendsWFBuckley/make friends-help friendsWFBuckley/make friends-help friends

Gust/Suck downGust/Suck downCharlie/poker pal-BOFCharlie/poker pal-BOF

Eddie VII/dance-flatter-mingle-learn the languageEddie VII/dance-flatter-mingle-learn the languageVlad/birthday party of outgroup guy’s wifeVlad/birthday party of outgroup guy’s wife

CIO/finance networkCIO/finance networkERP installer/consult-“one line of code”ERP installer/consult-“one line of code”

GE Energy/make friends risk assessmentGE Energy/make friends risk assessmentGWB/put Jim on the invitation listGWB/put Jim on the invitation list

GHWB/T-notesGHWB/T-notesHank/60 callsHank/60 callsMarkM/5K-5MMarkM/5K-5M

Delaware/show upDelaware/show upOppy/snub Lewis StraussOppy/snub Lewis Strauss

NM/smileNM/smile-$4.3T/tin ear-$4.3T/tin ear

TP/3M, I’m sorryTP/3M, I’m sorrytp.com/Big 4-What do you think?tp.com/Big 4-What do you think?

Women/genesWomen/genesBanker/after churchBanker/after church

Total Bloody Mess/Can they pay back the loan?Total Bloody Mess/Can they pay back the loan?

walkwalk

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

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

“… “… Time and Time and ssppace are ace are

annihilated bannihilated byy steamsteam.. … Oh, this constant locomotion, my … Oh, this constant locomotion, my

body & everything in motion. Steamboats, Cars, & hotels all body & everything in motion. Steamboats, Cars, & hotels all crammed & crowded full the whole population seems in motion crammed & crowded full the whole population seems in motion

& in fact as I pass along with Lightening speed & cast my eye on & in fact as I pass along with Lightening speed & cast my eye on the distant objects, they all seem in a whirl nothing appearing the distant objects, they all seem in a whirl nothing appearing permanent even the trees are waltzing, the mind too goes with permanent even the trees are waltzing, the mind too goes with

all this, it speculates, theorizes, & measures all things by all this, it speculates, theorizes, & measures all things by locomotive speed, locomotive speed, where will it endwhere will it end.”.” —Asa Whitney, first to formally propose —Asa Whitney, first to formally propose

transcontinental railroad to Congress, diary entry,transcontinental railroad to Congress, diary entry, 1844 1844, from David Hayward Bain, , from David Hayward Bain, Empire Express: Building the Empire Express: Building the First Transcontinental RailroadFirst Transcontinental Railroad

““For Real Globalization, Look at Ancient Rome”For Real Globalization, Look at Ancient Rome”

“There is nothing new about a global world. We were “There is nothing new about a global world. We were living in one 2,000 years ago. … The Roman in the street living in one 2,000 years ago. … The Roman in the street

ate bread baked with wheat grown in North Africa or ate bread baked with wheat grown in North Africa or Egypt, and fish that had been caught and dried near Egypt, and fish that had been caught and dried near

Gibraltar, He cooked with North African oil in pots and Gibraltar, He cooked with North African oil in pots and pans of cooper mined in Spain, ate off dishes fired in pans of cooper mined in Spain, ate off dishes fired in French kilns, drank wine from Spain or France. … The French kilns, drank wine from Spain or France. … The Roman of wealth dressed in garments of wool from Roman of wealth dressed in garments of wool from Miletus or linen from Egypt; his wife wore silks from Miletus or linen from Egypt; his wife wore silks from

China, adorned herself with diamonds and pearlsChina, adorned herself with diamonds and pearls from India, and made up with cosmetics from South from India, and made up with cosmetics from South

Arabia. … He lived in a house whose walls wereArabia. … He lived in a house whose walls were covered with colored marble veneer quarried in Asia covered with colored marble veneer quarried in Asia

Minor; his furniture was of Indian ebony or teakMinor; his furniture was of Indian ebony or teak inlaid with African ivory.” inlaid with African ivory.” —Peter Jones and Lionel Casson, —Peter Jones and Lionel Casson,

The SpectatorThe Spectator, 0524.08, 0524.08

The Black Swan The Black Swan 44: Tactical 44: Tactical

Rules for Rules for Survival (and Survival (and success) in success) in

Looney timesLooney times

““I [will] not accept the I [will] not accept the explanation of a recession explanation of a recession negatively effecting the negatively effecting the

[new] business. There are [new] business. There are still people traveling. We just still people traveling. We just have to get them to stay in have to get them to stay in our hotel.”our hotel.” —Horst Schulze, former president of Ritz —Horst Schulze, former president of Ritz

Carlton, on his new luxury hotel chain, Capella, from Prestige (06.08)Carlton, on his new luxury hotel chain, Capella, from Prestige (06.08)

Black Swan Tactical RulesBlack Swan Tactical Rules

1. K.I.S.S.1. K.I.S.S.2. Hammer on the basics.2. Hammer on the basics.3. Focus on us, not the competition.3. Focus on us, not the competition.4. Puzzle-solving: How to turn this4. Puzzle-solving: How to turn this into an opportunity.into an opportunity.5. MBWA/X.5. MBWA/X.6. MBWA/I.6. MBWA/I.7. MBWA/Vendors.7. MBWA/Vendors.8. Waaaaay over-communicate!!!!!!8. Waaaaay over-communicate!!!!!! (With (With everyoneeveryone—start with your—start with your banker.)banker.)

"’Overcommunication never hurts. "’Overcommunication never hurts. If it is something significant, I If it is something significant, I

would just pick up the phone and would just pick up the phone and call Ben [Bernanke]. . . . One of the call Ben [Bernanke]. . . . One of the

things I do is I create an things I do is I create an atmosphere where I am so direct atmosphere where I am so direct

and so open and collaborative with and so open and collaborative with people I trust that it brings out the people I trust that it brings out the

same in them.” same in them.” —Hank Paulson—Hank Paulson


9. All work is team work.9. All work is team work.10. Transparency.10. Transparency. 11. Work the phones.11. Work the phones.12. Perception of fairness.12. Perception of fairness.13. Share the pain.13. Share the pain.14. Decency!!!!!!!14. Decency!!!!!!!15. Grace!!15. Grace!!16. “Thank you.”16. “Thank you.”17. Control your impatience—17. Control your impatience— no temper tantrums.no temper tantrums.18. Constant attitude checks—18. Constant attitude checks—youyou..

Work the Work the phones!phones!


19. Dress for success.19. Dress for success.20. Avoid burnout/you, the team,20. Avoid burnout/you, the team, the entire organization.the entire organization.21. 21. Re-emphasize the companyRe-emphasize the company values-philosophy.values-philosophy. (Now, (Now, more than ever.)more than ever.)22. Quality!!!!!! (Now, more than 22. Quality!!!!!! (Now, more than ever.)ever.)23. No corner cutting. (Now, more23. No corner cutting. (Now, more than ever.)than ever.)24. Constant reviews/War room.24. Constant reviews/War room.25. Celebration of small wins.25. Celebration of small wins.


26. 26. People FirstPeople First/HR is King./HR is King.27. Help people with personal27. Help people with personal financial management.financial management.28. Be generous to those who are28. Be generous to those who are let go—e.g. healthcare benefits.let go—e.g. healthcare benefits.29. Don’t over-analyze.29. Don’t over-analyze.30. Don’t under-analyze.30. Don’t under-analyze.31. Cuts all at once—if possible.31. Cuts all at once—if possible.32. Cuts explained in great detail.32. Cuts explained in great detail.33. Quantitative calendar33. Quantitative calendar management—focus on “to management—focus on “to don’ts.”don’ts.”


34. 34. IncreaseIncrease customer-service customer-service training.training.35. In general, minimize training 35. In general, minimize training cuts.cuts.36. Be(very)ware R&D cuts; R&D36. Be(very)ware R&D cuts; R&D quick pay SWAT teams.quick pay SWAT teams.37. Beware such things as sales37. Beware such things as sales travel cuts, ad cuts.travel cuts, ad cuts.38. “Across the board” = Dumb.38. “Across the board” = Dumb.39. Is this a time to over-invest if 39. Is this a time to over-invest if cash is at hand? (E.g., distressedcash is at hand? (E.g., distressed innovative start-ups?innovative start-ups?


40. Stealth work on the likes of 40. Stealth work on the likes of XF communication.XF communication.41. This could last a long time—41. This could last a long time— LT prep is necessary LT prep is necessary nownow..42. Prepare/Be prepared for 42. Prepare/Be prepared for moremore Black Swans.Black Swans.

43. 43. ExcellenceExcellence.. (Now, (Now, more than ever.)more than ever.)(44. Remember all this in(44. Remember all this in peacetime—Chuck Knight’speacetime—Chuck Knight’s legacy.)legacy.)

this is your this is your life. Think life. Think upside.upside.

this is your this is your life. Think life. Think

excellence.excellence.

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

100 Ways to Succeed #139: Work the Damn Phones! Treble Your 100 Ways to Succeed #139: Work the Damn Phones! Treble Your MBWA!MBWA!**

One of my favorite quotes, from Carolyn Lamb , goes like thisOne of my favorite quotes, from Carolyn Lamb , goes like this: “A year from now you may wish : “A year from now you may wish you had started today.”you had started today.”

Yes, today many of us wish we had “wildly” “over”invested in those employee-vendor-client-Yes, today many of us wish we had “wildly” “over”invested in those employee-vendor-client-community relationships when the market was heading North and there was a little slack in community relationships when the market was heading North and there was a little slack in the system. Well, perhaps we didn’t, but, and I’m not “doing a Tony Robbins” here, it really is the system. Well, perhaps we didn’t, but, and I’m not “doing a Tony Robbins” here, it really is never too late. That is:never too late. That is:

Work the damn phones.Work the damn phones.Keep working the damn phones.Keep working the damn phones.Show up.Show up.Keep showing up.Keep showing up.Call clients and suppliers, ask them how things are going, and how you can help. This is not Call clients and suppliers, ask them how things are going, and how you can help. This is not about sales (directly), but about “showing up”—taking time from your busy affairs to offer about sales (directly), but about “showing up”—taking time from your busy affairs to offer assistance of any sort. (E.g., offer up your network: assistance of any sort. (E.g., offer up your network: “Well, Dave [one of your key suppliers], I “Well, Dave [one of your key suppliers], I know Ed Simpson, over there at [one of Dave’s problem clients]; his daughter and mine are co-know Ed Simpson, over there at [one of Dave’s problem clients]; his daughter and mine are co-captains of the [name of school] soccer team; I can give him a call for you if you’d like.”captains of the [name of school] soccer team; I can give him a call for you if you’d like.” Etc.) Etc.)

This is even more important with our employees.** “Over”inform—the rumors are invariably This is even more important with our employees.** “Over”inform—the rumors are invariably worse than reality. “Over”do your MBWA—managing by wandering around. Keep your worse than reality. “Over”do your MBWA—managing by wandering around. Keep your enthusiasm up if it kills you—not in a dopey grin, “all is well” way, but by exhibiting energy enthusiasm up if it kills you—not in a dopey grin, “all is well” way, but by exhibiting energy and masking any internal doom & gloom expressions that may in fact be just beneath the and masking any internal doom & gloom expressions that may in fact be just beneath the surface. [**I use the formal word “employees” here, a word I ordinarily dislike. But the point is surface. [**I use the formal word “employees” here, a word I ordinarily dislike. But the point is that you do have a formal hierarchal relationship with those on your payroll, and thence a that you do have a formal hierarchal relationship with those on your payroll, and thence a formal as well as an abiding moral obligation concerning their and their families’ well-being.]formal as well as an abiding moral obligation concerning their and their families’ well-being.]

*A series of ideas from tompeters.com*A series of ideas from tompeters.com

19819822

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))

ThankThank you , you ,

Herb and Herb and Robert …Robert …

““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 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

… … 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 … Excellence.pursuit of … Excellence.

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

ThankThank you , 7-11… you , 7-11…

TP: TP: “How to flush

$500,000 down

the toilet in one easy

lesson!!”

< CAPEX< CAPEX> People!> People!

““Diverse groups of problem solvers—Diverse groups of problem solvers—groups of people with diverse tools—groups of people with diverse tools—

consistently outperformed groups of the consistently outperformed groups of the best and the brightest. If I formed two best and the brightest. If I formed two

groups, one random (and therefore groups, one random (and therefore diverse) and one consisting of the best diverse) and one consisting of the best individual performers, the first group individual performers, the first group

almost always did better. … 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

““Leaders Leaders

‘‘dodo’’ people. people.

Period.”Period.” —Anon.

““The leaders of Great The leaders of Great

Groups Groups lovelove talent talent and know where to find and know where to find

it. They it. They revel revel in the in the talent of others.”talent of others.”

—Warren Bennis & Patricia Ward Biederman, —Warren Bennis & Patricia Ward Biederman, Organizing GeniusOrganizing Genius

Brand Brand = =

Talent.Talent.

Our Mission

To 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

#1/10#1/1000

““Best Companies toBest Companies to

Work for” Work for”//20052005

WegmansWegmans

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.”

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

2/year 2/year = =

legacy.legacy.

53 = 53 = 5353


Conrad and Conrad and Fred …Fred …

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

ThankThank you , you ,Rich …Rich …

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

or …or …

*Rich D’Aveni/*Rich D’Aveni/HBRHBR

The “Have The “Have you …” you …”

50*50**See *See Appendix OneAppendix One

While waiting last week [early December 2007] in the Albany While waiting last week [early December 2007] in the Albany airport to board a Southwest Airlines flight to Reagan, I airport to board a Southwest Airlines flight to Reagan, I

happened across the latest happened across the latest Harvard Business ReviewHarvard Business Review, on the , on the cover of which was a yellow sticker. The sticker had on it the cover of which was a yellow sticker. The sticker had on it the words “Mapping your competitive position.” It referred to a words “Mapping your competitive position.” It referred to a

feature article by my friend Rich D’Aveni. His work is uniformly feature article by my friend Rich D’Aveni. His work is uniformly good—and I have said as much publicly on several occasions good—and I have said as much publicly on several occasions dating back 15 years. I’m sure this article is good, too—though 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 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 reaction” as my wife calls it. Of course I believe you should

worry about your “competitive position.”worry 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.

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.)

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

X X =XFX*=XFX*

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

GSK/CEDDGSK/CEDDConoco/geologists-geophysicistsConoco/geologists-geophysicists

Flag requirement/joint staffFlag requirement/joint staffStanford/X-disc #1Stanford/X-disc #1

Dartmouth-Hitchcock/micro-Dartmouth-Hitchcock/micro-systemssystems

3M Austin/physical3M Austin/physical

Never Never waste a waste a lunch!lunch!

????????

% XF % XF lunches*lunches*

*Measure!*Measure!


Richard , Richard , Dennis and Dennis and Marcus …Marcus …

““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 !”

““The The oneone thinthing you g you need to know about need to know about sustained individual sustained individual

success: Discover what success: Discover what you don’t like doing and you don’t like doing and

stopstop doing it.”doing it.”

—Marcus Buckingham, The One Thing You Need to Know

You = You = Your Your

calendarcalendar***Calendars *Calendars nevernever lielie

ThankThank you you

Dr. Groopman …Dr. Groopman …

1818””

In In How Doctors ThinkHow Doctors Think, Harvard Med doc Jerome , Harvard Med doc Jerome Groopman tells us that the best way to get a fix on Groopman tells us that the best way to get a fix on what ails a patient is to get the patient talking openly what ails a patient is to get the patient talking openly about his-her problem.about his-her problem.

Great.Great.

But the research shows that docs, on average, leap to a But the research shows that docs, on average, leap to a conclusion and interrupt their patients after … conclusion and interrupt their patients after … 18 18 seconds.seconds.

(Docs are hardly alone. This is a disease present in (Docs are hardly alone. This is a disease present in almost all specialists and professionals. “Listening” for almost all specialists and professionals. “Listening” for a professional invariably means … talking.)a professional invariably means … talking.)


Dave …Dave …

““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,Source: courtesy Dave Wheeler, posted at tompeters.com, source ofposted at tompeters.com, source of

original unknown (0609.08) original unknown (0609.08)

Relationships (of all varieties): THERE THERE ONCE WAS A TIME WHEN ONCE WAS A TIME WHEN A A THREETHREE--MINUTEMINUTE PHONEPHONE

CALLCALL WOULD HAVE WOULD HAVE AVOIDED SETTING OFF AVOIDED SETTING OFF

THE DOWNWARD SPIRAL THE DOWNWARD SPIRAL THAT RESULTED IN A 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.* **

*Watergate, M Stewart, BR**And: PERCEPTION IS ALL THERE IS!PERCEPTION IS ALL THERE IS!

Success …

Consult Consult everyoneeveryone on on everythingeverything

“Thank you” “Thank you” note note carpetcarpet

bombingbombingSource: Roger Rosenblatt, Source: Roger Rosenblatt, Rules for AgingRules for Aging

““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,Source: courtesy Dave Wheeler, posted at tompeters.com, source ofposted at tompeters.com, source of

original unknown (0609.08) original unknown (0609.08)

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

Authorial bragging Authorial bragging rights-“Born again” rights-“Born again”

Champion = Champion = OneOne LineLine ofof CodeCode!!

TP:TP: People are People are always ready to always ready to tell their story!tell their story!See also: “The story leaner’s edge” (Steve See also: “The story leaner’s edge” (Steve

Farber)Farber) “The dream manager” (Matthew Kelly) “The dream manager” (Matthew Kelly)


Walter …Walter …

??????????????

“Success doesn’t depend on the number of “Success doesn’t depend on the number of people you know; it depends on the number people you know; it depends on the number

of people you know in of people you know in hihigghh places!”places!”

oror

“Success doesn’t depend on the number of “Success doesn’t depend on the number of people you know; it depends on the number people you know; it depends on the number

of people you know in of people you know in lowlow places!” places!”

Loser:Loser: “He’s such a“He’s such a suck-up!” suck-up!”

Winner:Winner: “He’s such a“He’s such a suck-down.” suck-down.”

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

ThankThank you, you,

Henry …Henry …

““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

KindnesKindness s

is freeis free

Press Ganey Assoc: 139,380 former patients from 225 hospitals:

nonenone of THE top 15 factors of THE top 15 factors

determining determining PPatient atient SSatisfaction atisfaction referred to patient’s health referred to patient’s health outcomeoutcome

PSPS directldirectly related to y related to StaffStaff InteractionInteraction

PSPS directldirectly correlated with y correlated with Employee Employee SatisfactionSatisfaction

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

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

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

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

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

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

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


3H Club …3H Club …

HHowardoward

HHiltonilton

HHerberb

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 you long and distinguished career?” in you 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””

““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)

3H: Howard, Hilton, Herb3H: Howard, Hilton, Herb

****Stay in touch!Stay in touch!****Sweat theSweat the details! details!****It’s the people,It’s the people, stupid! stupid!


Singapore …Singapore …

2-cent 2-cent candycandy

<TG<TGWWvs.vs.

>TG>TGRR

““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

ThankThank you, Sheik you, Sheik

Mohammad …Mohammad …

24%24%

dubaidubai

Single Single greatest act greatest act

of pure of pure imaginationimagination

Does Does youryour project portfolioproject portfolio

“ “havehave a dubai”?a dubai”?

ThankThank you Larry and you Larry and

Jim (and Jim (and Germany ) …Germany ) …

Basement Basement Systems Inc.Systems Inc.

*Basement Systems Inc.*Basement Systems Inc.*Larry Janesky*Larry Janesky**Dry Basement ScienceDry Basement Science (115,000!)(115,000!)

*1990: $0; 2003: $13M; *1990: $0; 2003: $13M; 2007: 2007:

$62,000,000$62,000,000

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

Jim’s GroupJim’s Group:: Jim Penman.* Jim Penman.*

1984: Jim’s Mowing. 2006: Jim’s Group. 1984: Jim’s Mowing. 2006: Jim’s Group.

2,600 franchisees2,600 franchisees (Australia, NZ, UK). (Australia, NZ, UK). Cleaning. Dog washing. Handyman. Cleaning. Dog washing. Handyman.

Fencing. Paving. Pool care. Etc.Fencing. Paving. Pool care. Etc.

“People first.” Private. Small staff. Franchisees “People first.” Private. Small staff. Franchisees can leave at will. 0-1 complaint per year is can leave at will. 0-1 complaint per year is

norm; cut bad ones quickly.norm; cut bad ones quickly.

*Ph.D. cross-cultural anthropology; mowing on the side

Source: MT/Management Today (Australia), Jan-Feb 2006

etc.etc.

PRSX/Paragon PRSX/Paragon Railcar Railcar

Salvage*Salvage**Salvaged railcars into bridges, etc.*Salvaged railcars into bridges, etc.

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

#2 China#2 China

#1 #1 GermanyGermany

Reason!!!Reason!!!

MittelstandMittelstand

**Lived in same town all adult lifeLived in same town all adult life*First generation that’s wealthy/*First generation that’s wealthy/ no parental support no parental support*“Don’t look like millionaires, don’t dress*“Don’t look like millionaires, don’t dress like millionaires, don’t eat like like millionaires, don’t eat like millionaires, don’t act like millionaires” millionaires, don’t act like millionaires”*“Many of the types of businesses [they]*“Many of the types of businesses [they] are in could be classified as ‘dull- are in could be classified as ‘dull- normal.’ normal.’ [They] are welding contractors, [They] are welding contractors, auctioneers, scrap-metal dealers, lessors of auctioneers, scrap-metal dealers, lessors of portable toilets, dry cleaners, re-builders of portable toilets, dry cleaners, re-builders of diesel engines, paving contractors …” diesel engines, paving contractors …”

Source: Source: The Millionaire Next DoorThe Millionaire Next Door,, Thomas Stanley & William Danko Thomas Stanley & William Danko

10.610.6

““The growth and The growth and success of women-success of women-

owned businesses is owned businesses is one of the most one of the most

profound changes profound changes takingtaking place in the place in the

business worldbusiness world today.”today.” —Margaret Heffernan, How She Does It

“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

Dick Kovacevich: You don’t You don’t get better by get better by being bigger. being bigger.

You get You get worse.”worse.”

““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. TheTheyy

found that found that none none of the of the

lonlongg-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 —Financial

TimesTimes

““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

Q4/2006Q4/2006

+500,000+500,000 = =+7,700,000+7,700,000-7,200,000-7,200,000

Source: Source: Barron’sBarron’s 0922.07 0922.07

““Natural selection is death. ... Natural selection is death. ...

Without huge amounts Without huge amounts of death, organisms do of death, organisms do not change over time.not change over time. ... ...

Death is the mother of Death is the mother of structure. ... It took four structure. ... It took four

billion years of death ... to billion years of death ... to invent the human mind ...”invent the human mind ...” — —

The Cobra EventThe Cobra Event

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

word.”word.”

The “Unlucky Thirteen” Guru Gaffes:The “Unlucky Thirteen” Guru Gaffes:

Big companies!Public companies! “Cool” industries!

Stability!Famous CEOs!“Hard” stuff!

Plans!“Success”!

Men!Young!

Incrementalism-KaizenMinimization!Uniformity!

The “Lucky Thirteen”:The “Lucky Thirteen”:

SMESMEss!!Private companies!Private companies! “Dull” industries! “Dull” industries!

Churn!Churn!laudable CEOs!laudable CEOs!

“Soft” stuff!“Soft” stuff!Excellence!Excellence!

Action-Execution!Action-Execution!Women!Women!

Boomers-Geezers!Boomers-Geezers!Imagination Unbound!Imagination Unbound!

Accentuate the Positive!Accentuate the Positive!Individuality!Individuality!


Heather (and Heather (and Bill) …Bill) …

““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

““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 RULE

WomenWomen 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??

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““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

7/17/133

Thank you, Thank you, Chicago…Chicago…

Sarah: “ Mom, what do you do?”

Mom: “I’m ‘overhead.’‘overhead.’””

Are you … ““Rock Rock Stars of the Stars of the

AAgge of Talente of Talent””

Department Head

to …

ManaginManaging g

PartnerPartner, , ISIS [HR, R&D, etc.] IncInc..

Answer:

PSFPSF

Are you the …

““PrinciPrincippal al EnEnggineine of of

Value Added”Value Added”*E.g.: Your R&D budget as robust as the New Products team?

IBIBMM

““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

““Big Brown’s New Bag: UPS Big Brown’s New Bag: UPS Aims to Be the Traffic Aims to Be the Traffic Manager for Corporate Manager for Corporate

AmericaAmerica”” —Headline/—Headline/BWBW

““UPS wants to take over the UPS wants to take over the sweet spot in the endless sweet spot in the endless loop of goods, information loop of goods, information

and capital that all the and capital that all the packages packages [it moves][it moves] represent represent.”.” ——

ecompany.com ecompany.com (E.g., (E.g., UPS LogisticsUPS Logistics manages the logistics of 4.5M Ford vehicles, manages the logistics of 4.5M Ford vehicles,

from 21 mfg. sites to 6,000 NA dealers) from 21 mfg. sites to 6,000 NA dealers)

““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

A January 2008 BusinessWeek cover story informed us that Schlumberger may well take over the world: “THE GIANT STALKING BIG OIL: How Schlumberger Is Rewriting the Rules of the Energy Game.” In short, Schlumberger knows how to create and run oilfields, anywhere, from drilling to fullscale production to distribution. And the nugget is hardcore, relatively small, technically accomplished, highly autonomous teams. As China and Russia, among others, make their move in energy, state run companies are eclipsing the major independents. (China’s state oil company just surpassed Exxon in market value.) At the center of it all, abetting these new players who are edging out the Exxons and BPs, the Kings of Large-scale, Long-term Project Management wear Schlumberger overalls. (The pictures in the article from Siberia alone are worth the cover price.) At the center of the center of the Schlumberger “empire” is a relatively newly configured outfit, reminiscent of IBM’s Global Services and UPS’ integrated logistics’ experts and even Best Buy’s now ubiquitous “Geek Squads.” The Schlumberger version is simply called IPM, for Integrated Project Management. It lives in a nondescript building near Gatwick Airport, and its chief says it will do “just about anything an oilfield owner would want, from drilling to production”—that is, as BusinessWeek put it, “[IPM] strays from [Schlumberger’s] traditional role as a service provider* and moves deeper into areas once dominated by the majors.” (*My old pal was solo on remote offshore platforms interpreting geophysical logs and the like.)

I. LAN Installation Co. (3%)

II. Geek Squad. (30%.)

III. Acquired by Best Buy.

IV. Flagship of Best BuyFlagship of Best Buy Wholesale “Solutions” Wholesale “Solutions” Strategy Makeover. Strategy Makeover.

HCare CIOHCare CIO: : “Technology “Technology Executive”Executive” (workin’ in a hospital)(workin’ in a hospital)

Or/to:Or/to: Full-scale, Full-scale, AccountableAccountable (life or death)(life or death)

Member-Partner of XYZ Member-Partner of XYZ Hospital’s Hospital’s Senior Senior HealinHealingg-Services -Services TeamTeam (who happens to be a techie)(who happens to be a techie)

Photographer: Louise Roach

ThankThank you Steve you Steve

““You You knowknow a a designdesign is is goodgood

whenwhen you you wantwant to to licklick it.” it.” —Steve Jobs—Steve Jobs

Source: Source: Design: Intelligence Made VisibleDesign: Intelligence Made Visible,, Stephen Bayley & Terence ConranStephen Bayley & Terence Conran


John … John …

1/401/40

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

““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

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

““RewardReward excellent failures.

PunishPunish mediocre

successes.”Phil Daniels, Sydney exec

““FAIL, FAIL FAIL, FAIL AGAIN. FAIL AGAIN. FAIL BETTER.”BETTER.”

—Samuel Beckett

“The secret of fast progress is

inefficiency, fast and furious and

numerous failures.”

—Kevin Kelly


Peter …Peter …

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)

**Docs, nurses make own **Docs, nurses make own checklists on whateverchecklists on whatever process-procedure they choose process-procedure they choose**Within **Within weeksweeks, average stay in , average stay in

ICUICU down down 50%50%Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07)Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07)

““Everything matters”Everything matters”

-80%-80%Source:Source: Nudge,Nudge, Richard Thaler and Cass Sunstein, etching of Richard Thaler and Cass Sunstein, etching of fly in the urinal reduces “spillage” by 80%, Schiphol Airportfly in the urinal reduces “spillage” by 80%, Schiphol Airport

Thank you , Thank you , Anthelme Anthelme

Brillat-Savarin Brillat-Savarin and Ludwig and Ludwig

FeuerbachFeuerbach ……***”You are what you eat”*”You are what you eat”

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 Quality

StaffStaffConsultantsConsultants

VendorsVendorsOut-sourcing Partners Out-sourcing Partners (#, Quality)(#, Quality)

Innovation Alliance PartnersInnovation Alliance PartnersCustomersCustomers

Competitors 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”


Eleanor, Jay Eleanor, Jay and Kevin …and Kevin …

““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!!

““I’m not comfortable I’m not comfortable unless I’m unless I’m

uncomfortable.”uncomfortable.”—Jay Chiat

Good luck …Good luck …

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

walkwalk

"Life is not a journey to the grave with the intention of arriving safely in one pretty

and well preserved piece, but to skid across the line

broadside, thoroughly used up, worn out, leaking oil,

shouting ‘GERONIMO!’GERONIMO!’ ” —Bill McKenna, professional motorcycle racer

(Cycle magazine 02.1982)

LONG Tom Peters’ EXCELLENCE. ALWAYS. iGate/Chakra View 2008 02 October/Orlando

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