Tom Peters’Tom Peters’

Excellence.Excellence.Always.Always.

Manchester/02 September 2009Manchester/02 September 2009

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

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

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

andand “Verdana”“Verdana”

Slides Slides [incl. “LONG”][incl. “LONG”] at … at …

tompeters.comtompeters.com

#1#1

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

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

18”18”

Listen = “Profession” = Study = practice =

evaluation = Enterprise value

ListenListen = Profession = Study = practice = evaluation = = Profession = Study = practice = evaluation = Enterprise value: "We "We listen intently to and listen intently to and fully engage all with fully engage all with

whom we work."whom we work."

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

are …are … “What do “What do youyou think?” think?”

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

Tomorrow: How many Tomorrow: How many times will you “ask the times will you “ask the

question”?question”?

[Count!] [Practice makes [Practice makes

better!] [This is a better!] [This is a STRATEGIC skill!]skill!]

““It was much later that I realized Dad’s It was much later that I realized Dad’s secret. He gained respect by giving it. He secret. He gained respect by giving it. He

talked and listened to the fourth-grade kids talked and listened to the fourth-grade kids in Spring Valley who shined shoes the same in Spring Valley who shined shoes the same way he talked and listened to a bishop or a way he talked and listened to a bishop or a

college president.college president. He was seriously He was seriously interested in who you were and interested in who you were and

what you had to saywhat you had to say.”.”Sara Lawrence-Lightfoot, Respect

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

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

—William James—William James

Enterprise value:

Appreciation!

““People want to be part of People want to be part of something larger than something larger than

themselvesthemselves.. They want to be part They want to be part of something they’re really of something they’re really proudproud of, that they’ll of, that they’ll fight fight forfor,, sacrifice sacrifice

forfor , , trusttrust.”.”

—Howard Schultz, Starbucks)

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

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

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

His immediate answer …His immediate answer …

““remember remember to tuck the shower to tuck the shower curtain inside the curtain inside the

bathtubbathtub””

““Execution Execution isis strategy.”strategy.”

—Fred Malek—Fred Malek

“To me business isn’t about To me business isn’t about wearing suits or pleasing wearing suits or pleasing

stockholders.stockholders. It’s about being It’s about being true to yourself, your ideas true to yourself, your ideas

and focusing on the and focusing on the essentialsessentials.”.”

—Richard Branson

Listen!Listen!Engage!Engage!Respect!Respect!

APPRECIATE!APPRECIATE!Inspire!Inspire!

Sweat the details!Sweat the details!Execute!Execute!

Excellence!Excellence!

Bonus: Bonus: New DelhiNew Delhi

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

name the … name the … three peoplethree people … …

whose growth you’ve most contributed to. Please explain where they whose growth you’ve most contributed to. Please explain where they were at the beginning of the year, where they are today, and where were at the beginning of the year, where they are today, and where

they are heading in the next 12 months. Please explain your they are heading in the next 12 months. Please explain your development strategy in each case. Please tell me your biggest development strategy in each case. Please tell me your biggest

development disappointment—looking back, could you or would you development disappointment—looking back, could you or would you have done anything differently? Please tell me about your greatest have done anything differently? Please tell me about your greatest

development triumph—and disaster—in the last ten years. Whatdevelopment triumph—and disaster—in the last ten years. What are the ‘three big things’ you’ve learned about helping people are the ‘three big things’ you’ve learned about helping people

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

#2#2

19771977Palo AltoPalo Alto

MBWAMBWA

#3#3

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! Customers! Customers!

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))

#4#4

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 that elicits endeavor that elicits maximum 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

#5#5

20072007SydneySydney

… … no less than no less than CathedralsCathedrals in in which the full and awesome power which the full and awesome power of the Imagination and Spirit and of the Imagination and Spirit and

native Entrepreneurial flairnative Entrepreneurial flair of of diverse individualsdiverse individuals is unleashed in is unleashed in

passionate pursuit of … passionate pursuit of … ExcellenceExcellence..

““Leaders Leaders

‘‘SERVESERVE’’ people. people.

Period.”Period.” —inspired by Robert Greenleaf

““You have to treat You have to treat your employees like your employees like customers.”customers.” —Herb Kelleher, complete —Herb Kelleher, complete

answer, upon being asked his “secrets to success”answer, upon being asked his “secrets to success”

Source: Joe Nocera, Source: Joe Nocera, NYTNYT, “Parting Words of an Airline Pioneer,” on the occasion of Herb , “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots union took out a full-page 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; across the way in Dallas American Airlines’ ad in USA Today thanking HK for all he had done; across the way in Dallas American Airlines’ pilots were picketing the Annual Meeting)pilots were picketing the Annual Meeting)

The Customer The Customer Comes SecondComes Second

——Hal Rosenbluth and Diane McFerrin Peters* (*no relation)Hal Rosenbluth and Diane McFerrin Peters* (*no relation)

““We are a ‘Life We are a ‘Life Success’ Success’

Company.”Company.”Dave Liniger, founder, RE/MAX

The Dream ManagerThe Dream Manager —Matthew Kelly—Matthew Kelly“An organization can only become the-best-version-of-itself to the extent that the “An organization can only become the-best-version-of-itself to the extent that the

people who drive that organization are striving to become better-versions-of-people who drive that organization are striving to become better-versions-of-themselves.” “A company’s purpose is to become the-best-version-of-itself. The themselves.” “A company’s purpose is to become the-best-version-of-itself. The

question is:question is: What is an emploWhat is an employyee’s ee’s ppururppose? ose? Most would saMost would sayy, ‘to hel, ‘to helpp the com the comppananyy

achieve its achieve its ppururppose’—but theose’—but theyy would be would be wronwrong. g. That is certainlThat is certainlyy part of the part of the

emploemployyee’s role, but an emploee’s role, but an employyee’s ee’s pprimarrimaryy ppururppose is to become the-best-version-of-ose is to become the-best-version-of-himself or –herselfhimself or –herself.. … … When a company forgets that it exists to When a company forgets that it exists to

serve customers, it quickly goes out of businessserve customers, it quickly goes out of business.. Our employees are Our employees are our first customers, and our most important our first customers, and our most important

customers.”customers.”

““No matter what the situation, No matter what the situation, [the [the

great manager’s]great manager’s] first resfirst respponse is alwaonse is alwayys s to think about the individual to think about the individual

concerned and how thinconcerned and how thinggs can be s can be arranarrangged to ed to helhelpp that individual that individual exexpperience successerience success.”.” —Marcus Buckingham, —Marcus Buckingham,

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

““The role of the Director is to create a The role of the Director is to create a space where the actors and actresses space where the actors and actresses

cancan become more than become more than they’ve ever been before, they’ve ever been before,

more than they’ve more than they’ve dreamed of beingdreamed of being.”.” —Robert Altman, —Robert Altman,

Oscar acceptance speechOscar acceptance speech

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

rewarding lives … rewarding lives … or it's or it's simply not simply not

worth doingworth doing.”.”

——Richard BransonRichard Branson

#6#6

TP: TP: “How to flush

$500,000 down the

toilet in one easy lesson!!”

The “15% Drill”:The “15% Drill”:

< CAPEX< CAPEX> People!> People!

2X2XSource: Container Store/increase average sale per shopperSource: Container Store/increase average sale per shopper

Yes They Can:Yes They Can: #1/Wegmans#1/Wegmans

Brand = Brand = Talent.Talent.

Our Mission

To develop and manage talent;To develop and manage talent;to apply that talent,to apply that talent,

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

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

WPP

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

““In short, hiring is In short, hiring is the the most immost impportant asortant asppect ect

of businessof business and yet and yet remains woefully remains 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

““Development can help great people be Development can help great people be

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

spend 70 cents getting spend 70 cents getting the right person in the the right person in the

doordoor.”.” ——Paul Russell, Director, Leadership &Paul Russell, Director, Leadership &

Development, Google Development, Google

#1#1 cause of cause of

Dis-satisfaction?Dis-satisfaction?

Employee retention & satisfaction:Employee retention & satisfaction:

OverwhelminOverwhelminggllyy, , based on the based on the first-line first-line

manamanaggerer!!

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

2/year = 2/year = legacy.legacy.

#7#7

Little =Little =

BIGBIG

#7A#7A

Don’t like it?Don’t like it?Don’t pay.Don’t pay.

Source: Granite Rock Co.Source: Granite Rock Co.

#7B#7B

Big carts =Big carts =

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

#7C#7C

Socks = Socks = 10,00010,000

90K90K in U.S.A. in U.S.A. ICUsICUs on any given day; on any given day; 178178 steps/day in ICU. steps/day in ICU.

5050%% stays result in stays result in

“serious complication”“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**Checklist, line infections**Checklist, line infections**Nurses/permission to stop procedure**Nurses/permission to stop procedure if doc, other not following checklist if 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)

6.56.5 feet Away = feet Away =

--6363% % “Seconds” “Seconds”

Little =Little =

BIGBIG

((1)1) Amenable to rapid experimentation/ Amenable to rapid experimentation/ failure “free” (PR, $$)failure “free” (PR, $$)(2)(2) Quick to implement/Quick to Roll out Quick to implement/Quick to Roll out(3)(3) Inexpensive to implement/Roll out Inexpensive to implement/Roll out(4)(4) Huge multiplier Huge multiplier(5)(5) An “Attitude” An “Attitude”(6)(6) Don’t need to be a “Big Boss” Don’t need to be a “Big Boss”

#8#8

nonenone!!

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

nonenone of THE top 15 factors of THE top 15 factors

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

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

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

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

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

substantial part of any hospital budget, the interactions themselves add substantial part of any hospital budget, the interactions themselves add

nothing to the budget. nothing to the budget. Kindness is Kindness is freefree.. Listening to patients or answering their questions Listening to patients or answering their questions

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

control—can be very costly. … Angry, frustrated or frightened patients may control—can be very costly. … Angry, frustrated or frightened patients may be combative, withdrawn and less cooperative—requiring far more time be combative, withdrawn and less cooperative—requiring far more time

than it would have taken to interact with them initially in a positive way.”than it would have taken to interact with them initially in a positive way.” ——

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

#8A#8A

Core Value: Core Value: “We are “We are thoughtful in all thoughtful in all

we do.”we do.”

ThoughtfulnessThoughtfulness is key to is key to customer retentioncustomer retention..ThoughtfulnessThoughtfulness is key to is key to emempploloyyee recruitmentee recruitment and satisfactionand satisfaction..Thoughtfulness Thoughtfulness is key to is key to brand perceptionbrand perception..ThoughtfulnessThoughtfulness is key to your ability to is key to your ability to look in the mirrorlook in the mirror —and tell your kids about your job.—and tell your kids about your job.

““ThoughtfulnessThoughtfulness is is freefree.”.”ThoughtfulnessThoughtfulness is key to is key to ssppeedineedingg thin thinggs us up—p— it it reduces frictionreduces friction..ThoughtfulnessThoughtfulness is key to is key to transtranspparencarency and eveny and even cost containmentcost containment—it abets rather than stifles—it abets rather than stifles truth-telling.truth-telling.

#9#9

““Experiences Experiences are are as distinct from as distinct from

services as services services as services are from goods.”are from goods.” —Joe Pine &

Jim Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

<TG<TGWWand …and …

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

2-cent 2-cent candycandy

-15/+15/-15/+15/2,000,0002,000,000

#9A#9A

ComebackComeback[big, quick response][big, quick response]

>>>>PerfectionPerfection

Acquire vs maintain*:Acquire vs maintain*:

5X5X*Recession goal: Higher “market share” *Recession goal: Higher “market share” currentcurrent customers customers

#10#10

““Forget Forget ChinaChina, , IndiaIndia and the and the InternetInternet: :

Economic Growth Is Economic Growth Is

Driven by Driven by WomenWomen.”.”

Source: Headline, Economist

““Women areWomen are thethe majority majority

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

The Perfect Answer

Jill and Jack buy slacks in black…

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

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

power; power; over the past decade the over the past decade the value of shares in Goldman’s value of shares in Goldman’s

basket has risen by 96%, against basket has risen by 96%, against the Tokyo stockmarket’s rise of the Tokyo stockmarket’s rise of

13%13%.”.” —Economist

““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

#11#11

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““People turning 50 today People turning 50 today

have have more thanmore than halfhalf of their adult life of their adult life

ahead of them.”ahead of them.” —Bill Novelli, 50+: Igniting a

Revolution to Reinvent America

7/17/133

We are the We are the Aussies & Kiwis &Aussies & Kiwis & Americans & CanadiansAmericans & Canadians. We are the . We are the Western EuropeansWestern Europeans & & JapaneseJapanese. We are the. We are the

fastest growingfastest growing, the , the biggestbiggest, the , the wealthiestwealthiest, the , the boldestboldest, , the most (yes) the most (yes) ambitiouambitious, s, the most the most experimenta & exploratoryexperimenta & exploratory, the , the

most most differentdifferent, the most , the most indulgentindulgent, the most , the most difficult &difficult & demandingdemanding, the most , the most service & experience obsessedservice & experience obsessed, the most , the most vigorousvigorous, (the , (the leastleast vigorous,) the most vigorous,) the most health conscioushealth conscious, the , the

most most femalefemale, the most profoundly important commercial market , the most profoundly important commercial market

in the history of the world—andin the history of the world—and we will be the we will be the Center of Center of yyour universe for our universe for

the next twentthe next twentyy-five -five yyearsears. We . We have arrived!have arrived!

#12#12

Forty-four “Secrets” and Forty-four “Secrets” and “clever Strategies” For “clever Strategies” For

dealing with the Recessiondealing with the Recession of 2008-XXXX of 2008-XXXX

I am constantly asked for

“strategies/ 'secrets' for surviving the recession.” I try to appear wise and informed

—and parade original, sophisticated thoughts. But if you want to know what’s really

going through my head, see the list that follows.

44 “Secrets” and “Clever Strategies” For 44 “Secrets” and “Clever Strategies” For Dealing with the Recession of 2008-XXXXDealing with the Recession of 2008-XXXX

You come earlier.You come earlier.You leave later.You leave later.You work harder.You work harder.You may well work for less; and, if so, youYou may well work for less; and, if so, you adapt to the untoward circumstances with a adapt to the untoward circumstances with a smile—even if it kills you inside.smile—even if it kills you inside.You volunteer to do more.You volunteer to do more.You dig deep and always bring a good attitude to work.You dig deep and always bring a good attitude to work.You fake it if your good attitude flags.You fake it if your good attitude flags.You literally practice your "game face" in theYou literally practice your "game face" in the mirror in the morning, and in the loo mid-morning.mirror in the morning, and in the loo mid-morning.You give new meaning to the idea and intensive You give new meaning to the idea and intensive practice of “visible management.”practice of “visible management.”

44 “Secrets” and “Clever Strategies” For 44 “Secrets” and “Clever Strategies” For Dealing with the Recession of 2008-XXXXDealing with the Recession of 2008-XXXX

You take better than usual care of yourself andYou take better than usual care of yourself and encourage others to do the same—physical well-beingencourage others to do the same—physical well-being determines mental well-being and response to stress.determines mental well-being and response to stress.You shrug off shit that flows downhill in your You shrug off shit that flows downhill in your direction—buy a shovel or a “pre-worn” direction—buy a shovel or a “pre-worn” raincoat on eBay.raincoat on eBay.You try to forget about “the good old days”—You try to forget about “the good old days”— nostalgia is self-destructive.nostalgia is self-destructive.You buck yourself up with the thought that You buck yourself up with the thought that “ “this too shall pass”—but then remind yourselfthis too shall pass”—but then remind yourself that it might not pass any time soon, and so that it might not pass any time soon, and so you re-dedicate yourself to making the you re-dedicate yourself to making the absolute best of what you have now.absolute best of what you have now.

44 “Secrets” and “Clever Strategies” For 44 “Secrets” and “Clever Strategies” For Dealing with the Recession of 2008-XXXXDealing with the Recession of 2008-XXXX

You work the phones and then work the phones someYou work the phones and then work the phones some more—and stay in touch with positively everyone.more—and stay in touch with positively everyone.You invent breaks from routine, including “weird” ones—You invent breaks from routine, including “weird” ones— “ “changeups” prevent wallowing/bring a fresh perspective. changeups” prevent wallowing/bring a fresh perspective. You eschew all forms of personal excess.You eschew all forms of personal excess.You simplify.You simplify.You sweat the details as never before.You sweat the details as never before.You sweat the details as never before.You sweat the details as never before.You sweat the details as never before.You sweat the details as never before.You raise to the sky and maintain at allYou raise to the sky and maintain at all costs the Standards of Excellence by whichcosts the Standards of Excellence by which you unfailingly evaluate your own performance.you unfailingly evaluate your own performance.You are maniacal when it comes to respondingYou are maniacal when it comes to responding to even the slightest screwup.to even the slightest screwup.

44 “Secrets” and “Clever Strategies” For 44 “Secrets” and “Clever Strategies” For Dealing with the Recession of 2008-XXXXDealing with the Recession of 2008-XXXX

You find ways to be around young people andYou find ways to be around young people and to keep young people around—they are lessto keep young people around—they are less likely to be members of the “sky is falling” school.likely to be members of the “sky is falling” school.You learn new tricks of your trade.You learn new tricks of your trade.You remind yourself that this is not justYou remind yourself that this is not just something to be “gotten through”—it is thesomething to be “gotten through”—it is the Final Exam of character.Final Exam of character.You network like a demon.You network like a demon.You network inside the company—get to knowYou network inside the company—get to know more of the folks who “do the real work.”more of the folks who “do the real work.”You network outside the company—get to know more of You network outside the company—get to know more of thethe folks who “do the real work” in vendor-customer outfits.folks who “do the real work” in vendor-customer outfits.

44 “Secrets” and “Clever Strategies” For 44 “Secrets” and “Clever Strategies” For Dealing with the Recession of 2008-XXXXDealing with the Recession of 2008-XXXX

You thank others by the truckload if good things happenYou thank others by the truckload if good things happen—— and take the heat yourself if bad things happen.and take the heat yourself if bad things happen.You behave kindly, but you don't sugarcoat or hide theYou behave kindly, but you don't sugarcoat or hide the truth--humans are startlingly resilient and rumors aretruth--humans are startlingly resilient and rumors are the real killers.the real killers.You treat small successes as if they were World CupYou treat small successes as if they were World Cup victories—and celebrate and commend accordingly.victories—and celebrate and commend accordingly.You shrug off the losses (ignoring what's goingYou shrug off the losses (ignoring what's going on in your tummy), and get back on theon in your tummy), and get back on the horse and immediately try again.horse and immediately try again.You avoid negative people to the extent youYou avoid negative people to the extent you can—pollution kills.can—pollution kills.You eventually read the gloom-sprayers the riot act. You eventually read the gloom-sprayers the riot act. 

44 “Secrets” and “Clever Strategies” For 44 “Secrets” and “Clever Strategies” For Dealing with the Recession of 2008-XXXXDealing with the Recession of 2008-XXXX

You give new meaning to the word "thoughtful.“You give new meaning to the word "thoughtful.“You don’t put limits on the flowers budget—You don’t put limits on the flowers budget— “ “bright and colorful” works marvels.bright and colorful” works marvels.You redouble, re-triple your efforts to "walk in yourYou redouble, re-triple your efforts to "walk in your customer's shoes." (Especially if the shoes smell.)customer's shoes." (Especially if the shoes smell.)You mind your manners—and accept others’You mind your manners—and accept others’ lack of manners in the face of their strains.lack of manners in the face of their strains.You are kind to all mankind.You are kind to all mankind.You keep your shoes shined.You keep your shoes shined.You leave the blame game at the office door.You leave the blame game at the office door.You quash congenital politicians—none too gently. You quash congenital politicians—none too gently. You become a paragon of personal accountability.You become a paragon of personal accountability.And then you pray.And then you pray.

#13#13

Innovation:Innovation:Base CaseBase Case

“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 Buy a very large one a very large one and just waitand just wait.”.”

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

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

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

companies.companies. TheTheyy found that found that nonenone of the lonof the longg-term survivors mana-term survivors managged to ed to

outoutpperform the market. Worse, the lonerform the market. Worse, the longger er comcomppanies had been in the database, the anies had been in the database, the

worse theworse theyy did did.” .” —Financial Times—Financial Times

““Data drawn from the real world attest Data drawn from the real world attest

to a fact that is beyond our control:to a fact that is beyond our control: Everything in existence tends to deteriorate.”

—Norberto Odebrecht, —Norberto Odebrecht, Education Through WorkEducation Through Work

#13A#13A

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

#2 China#2 China

#1 Germany#1 Germany

Reason!!!Reason!!!

MittelstandMittelstand

#13B#13B

Jim Penman/Jim Penman/Jim’s GroupJim’s Group

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

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

#13C#13C

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

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

them by doing it over and over, again and again.them by doing it over and over, again and again. We do the same We do the same today. While our competitors are still sucking their thumbs trying today. While our competitors are still sucking their thumbs trying to make the design perfect, we’re already on prototype versionto make the design perfect, we’re already on prototype version

##55.. By the time our rivals are ready with wires and By the time our rivals are ready with wires and

screws, we are on version screws, we are on version ##1010.. It gets back It gets back

to planning versus actingto planning versus acting: : We act We act from day onefrom day one; ; others plan how toothers plan how to

planplan——for monthsfor months.”.” —Bloomberg by Bloomberg—Bloomberg by Bloomberg

#13D#13D

““Fail .Fail . Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

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

you must you must ‘celebrate’ failure.”‘celebrate’ failure.” —Richard Farson (—Richard Farson (Whoever Makes the Most Mistakes WinsWhoever Makes the Most Mistakes Wins))

#13E#13E

We We areare the the companycompany we keepwe keep

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

The “We are what we eat”The “We are what we eat” axiom: axiom: At its core, At its core, evereveryy (!!!) (!!!)

relationship-partnership decision relationship-partnership decision (employee, vendor, customer, etc) is a (employee, vendor, customer, etc) is a

stratestrateggicic decision about: decision about:

“Innovate,“Innovate, ‘Yes’ or ‘Yes’ or ‘No’ ” ”

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

others’ inventions others’ inventions at least half the at least half the

timetime.. One successfulOne successful

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

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

Red Lake Red Lake goldSource: Source: Wikinomics: How Mass

Collaboration Changes Everything, Don Tapscott & Anthony Williams

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

groups of the best and the brightest. If I formed two groups of the best and the brightest. If I formed two groups, one groups, one

randomrandom (and therefore diverse) and one consisting of the (and therefore diverse) and one consisting of the bestbest individual performers, the first group almost always individual performers, the first group almost always

did better. …did better. … DiversityDiversity trumped abilitytrumped ability.”.” —Scott Page, —Scott Page, The The

Difference: How 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

“The The Bottleneck Is Bottleneck Is at the Top of at the Top of the Bottle”the 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

““You will become like You will become like the five people you the five people you

associate with the mostassociate with the most—this can be either a —this can be either a blessing or a curse.”blessing or a curse.”

——Billy CoxBilly Cox

#13F#13F

X =XFX*X =XFX***ExcellenceExcellence = Cross-functional Excellence = Cross-functional Excellence

Never Never waste a waste a lunch!lunch!

????????

% XF % XF lunches*lunches*

*Measure!*Measure!

Geologists + Geologists + Geophysicists + Geophysicists +

A little bit of love =A little bit of love =

OilOil

>100 feet >100 feet = 100 = 100 milesmiles

Lunch + Lunch + ProximityProximity

> SAP/Oracle> SAP/Oracle

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

‘Solutions’”*‘Solutions’”*

*Entire “XF-50” List is at Appendix ONE

#13G#13G

CGRO***CGRO/Chief Grunge Removal Officer*CGRO/Chief Grunge Removal Officer(CDC/Chief of De-complexification)(CDC/Chief of De-complexification)(CAO/Chief Anti-systems Officer)(CAO/Chief Anti-systems Officer)

(CBSD/Chief BS Destruction Officer)(CBSD/Chief BS Destruction Officer)

The Commerce Bank ModelThe Commerce Bank Model

“every computer at commerce bank has a … “every computer at commerce bank has a …

specialspecial redred keykey … on it that … on it that

says, ‘found something stupid that we are doing that says, ‘found something stupid that we are doing that interferes with our ability to service the customer? Tell interferes with our ability to service the customer? Tell

us about it, and if we agree, we will give you $50.’”us about it, and if we agree, we will give you $50.’”

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

Vernon Hill & Bob AndelmanVernon Hill & Bob Andelman

#13H#13H

Up,Up, Up,Up, Up, Up, UpUp

the Value-added Ladder.the Value-added Ladder.

IBIBMM: $55B*: $55B**Also HP-EDS*Also HP-EDS

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

SchlumbergerSchlumberger Is Rewriting Is Rewriting

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

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

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

(1) LAN Installation Co. (3%)(1) LAN Installation Co. (3%)

(2) (2) “Geek Squad”“Geek Squad” (30%) (30%)

(3) Best Buy contracts(3) Best Buy contracts(4) Best Buy purchases(4) Best Buy purchases

(5) Best Buy’s (5) Best Buy’s “brand promise”“brand promise”

Source: Best Buy (Circuit City: fire senior, hire junior)Source: Best Buy (Circuit City: fire senior, hire junior)

HuHuggee:: Customer Customer

SatisfactionSatisfaction versus … versus …

Customer Customer

SuccessSuccess

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

Customer Success/ Customer Success/ Gamechanging Gamechanging

SolutionsSolutions

ServicesServicesGoodsGoods

Raw Materials Raw Materials

#13H#13H

Up,Up, Up,Up, Up, Up, UpUp

the Value-added Ladder.the Value-added Ladder.

““Design is Design is

treatedtreated like alike a religionreligion at at

BMW.”BMW.” —Fortune—Fortune

All EAll Eqqual ual ExceExcepptt … …

“At Sony we assume that all products of our “At Sony we assume that all products of our competitors have basically the same competitors have basically the same technology, price, performance and technology, price, performance and

features.features. DesignDesign isis thethe only only thingthing that differentiates one product that differentiates one product

from another in the marketplace.”from another in the marketplace.” —Norio—Norio

OhgaOhga

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

design means veneer. … But to me, nothing could design means veneer. … But to me, nothing could be further from the meaning of design.be further from the meaning of design.

Design is the Design is the

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

JobsJobs

Axiom:Axiom: DESIGNDESIGN is the is the PRINCIPALPRINCIPAL

DIFFERENTIATORDIFFERENTIATOR

between between ““LOVELOVE”” and and

““HATEHATE””!!

Message: Men Message: Men cannotcannot

design for women’s needs.design for women’s needs.

#13i#13i

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 The quality and quantity and quality and quantity and

imaginativeness of imaginativeness of innovation shall be the innovation shall be the

same in all functions same in all functions —e.g., —e.g., in HR and purchasing as much as in marketing in HR and purchasing as much as in marketing

or product development.or product development.

#14#14

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

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

#14A#14A

Delaware Rules:Delaware Rules: “ “eighty eighty percent of percent of success is success is

showing up.” showing up.” —Woody —Woody

AllenAllen

GiveGive good good tea! tea!

““Allied commands depend on Allied commands depend on mutual confidence [and this mutual confidence [and this

confidence] is gained, above all confidence] is gained, above all through the through the develodeveloppment ofment of friendshifriendshippss.”.” —General D.D. Eisenhower, —General D.D. Eisenhower,

Armchair GeneralArmchair General* (05.08)* (05.08)

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

would pay great dividends during his future coalition commandwould pay great dividends during his future coalition command

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

EVII/dance-flatter-mingle-learn the languageEVII/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 assessment

GWB/check the invitation listGWB/check the invitation listGHWB/T-notesGHWB/T-notesHank/60 callsHank/60 callsMarkM/5K-5MMarkM/5K-5M

Delaware/show upDelaware/show up

Oppy/snub Lewis StraussOppy/snub Lewis StraussNM/smileNM/smile

-$4.3T/tin ear-$4.3T/tin eartp.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?

#14B#14B

““I regard … I regard … aappoloologgizinizingg … … as the most magical, healing, as the most magical, healing,

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

my work with executives who my work with executives who want to get better.”want to get better.” —Marshall Goldsmith—Marshall Goldsmith, What , What

Got You Here Won’t Get You There: How Successful People BecomeGot You Here Won’t Get You There: How Successful People Become Even More Successful Even More Successful

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

PROBLEM. THE RESPONSE TO PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY THE PROBLEM INVARIABLY ENDS UP BEING THE REAL ENDS UP BEING THE REAL

PROBLEMPROBLEM.**PERCEPTION IS ALL THERE IS!*PERCEPTION IS ALL THERE IS!

Relationships (of all varieties): THERE ONCE THERE ONCE

WAS A TIME WHEN A WAS A TIME WHEN A THREETHREE--MINUTEMINUTE PHONEPHONE

CALLCALL WOULD 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.

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

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

appreciating heart.”appreciating heart.” —Henry Clay

#14C#14C

#1 Trait …#1 Trait …

““Nothing is so Nothing is so contagious as contagious as enthusiasm.”enthusiasm.”

—Samuel Taylor Coleridge

““I am a dispenser of I am a dispenser of enthusiasm.”enthusiasm.”

—Ben Zander

““A leader is A leader is a a dealer in dealer in hope.” hope.” —Napoleon

#14D#14D

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

was trying to get done. 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 !”

How longHow long to achieve to achieve

excellence?excellence?

Excellence. Always.Excellence. Always.If not excellence … If not excellence … What?What?If not excellence now … If not excellence now … when?when?