Part 1.3 Tom Peters’ EXCELLENCE. ALWAYS. NEW MASTER/21 August 2008

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

insure that it is not ainsure that it is not a messmess],], you need Microsoft you need Microsoft

fonts:fonts:

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

and and “Verdana”“Verdana”

Part 1.3Part 1.3Tom Peters’ Tom Peters’

EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.

NEW MASTER/21 August 2008NEW MASTER/21 August 2008

Slides at …Slides at …

tompeters.comtompeters.com

Ten PartsTen Parts

P1.1, P1.2, P1.1, P1.2, P1.3P1.3, P1.4/, P1.4/GenericGenericP2/LeadershipP2/LeadershipP3/TalentP3/TalentP4/“Value-added Ladder”P4/“Value-added Ladder”P5/“New” Markets P5/“New” Markets P6/“The Equations”P6/“The Equations”P7.1/ImplementationP7.1/ImplementationP7.2/ActionP7.2/ActionP8/13 “Guru Gaffes”P8/13 “Guru Gaffes”P9/Health“care”P9/Health“care”P10/“The Lists”P10/“The Lists”

Part 1.3Part 1.3

#16#16

X X =XFX*=XFX*

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

**Stanford/Hagadorn/Interdisciplinary **Stanford/Hagadorn/Interdisciplinary raison d’etre raison d’etre**Conoco/geologists-geophysicists**Conoco/geologists-geophysicists**Old HP/R&D-Sales**Old HP/R&D-Sales**Schlumberger IPM-IBM Global Services-**Schlumberger IPM-IBM Global Services- UPS Logistics, HP-EDS (“bet the company” on UPS Logistics, HP-EDS (“bet the company” on integrating others’ product offerings) integrating others’ product offerings)**GSK/7 CEDDs**GSK/7 CEDDs**Chiat/Day**Chiat/Day**Batalden/DHMC/“clinical microsystems”**Batalden/DHMC/“clinical microsystems”**9-11 Commission**9-11 Commission**JCS assignment pre-Flag**JCS assignment pre-Flag**Etc**Etc**Etc**Etc

The “XF-50”: 50 Ways The “XF-50”: 50 Ways to Enhance Cross-to Enhance Cross-

Functional Functional Effectiveness and Effectiveness and

Deliver Speed, Deliver Speed, “Service Excellence” “Service Excellence”

and “Value-added and “Value-added Customer ‘Solutions’”Customer ‘Solutions’”

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

????????

% XF % XF lunches*lunches*

*Measure!*Measure!

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

“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


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

1. 1. It’s our organization to make work—or not. It’s not “them,” the It’s our organization to make work—or not. It’s not “them,” the outside world that’s the problem. outside world that’s the problem. The enemy is us.The enemy is us. Period. Period.

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

6.6. Project managers rule!!Project managers rule!! Project managers running XF (cross- Project managers running XF (cross-functional) projects are the Elite of the organization, and seen as functional) projects are the Elite of the organization, and seen as such and treated as such. (The likes of construction companies such and treated as such. (The likes of construction companies have practiced this more or less forever.)have practiced this more or less forever.)

7. “Value-added Proposition” = Application of integrated resources. (From the entire supply-7. “Value-added Proposition” = Application of integrated resources. (From the entire supply-chain.) To deliver on our emergent business raison d’etre, and compete with the likes of our chain.) To deliver on our emergent business raison d’etre, and compete with the likes of our Chinese and Indian brethren, we must co-operate with anybody and everybody “24/7.” IBM, UPS Chinese and Indian brethren, we must co-operate with anybody and everybody “24/7.” IBM, UPS and many, many others are selling far more than a product or service that works—the new “it” and many, many others are selling far more than a product or service that works—the new “it” is pure and simple a product of XF co-operation; “the product is pure and simple a product of XF co-operation; “the product isis the co-operation” is not much the co-operation” is not much of a stretch.of a stretch.

GSK:GSK: 7 “CEDDs” 7 “CEDDs” … Centers of … Centers of

Excellence for Excellence for Drug DiscoveryDrug Discovery

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

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

#16.1#16.1

““Clinical Clinical microsystem,” linked microsystem,” linked

microsystems, microsystems, patient-centric “care patient-centric “care

teams”teams” —Paul Batalden/DHMC—Paul Batalden/DHMC

Source: Source: “What System?” “What System?” Dartmouth MedicineDartmouth Medicine, Summer 2006, Summer 2006

““Clinical Clinical microsystem,” linked microsystem,” linked

microsystems, microsystems, patient-centric “care patient-centric “care teams”teams” —Paul Batalden/DHMC —Paul Batalden/DHMC

Source: “What System?” Source: “What System?” Dartmouth MedicineDartmouth Medicine, Summer 2006; , Summer 2006; also: also: Quality By Design: A Clinical Microsystems Approach by by

Eugene C. Nelson, Paul B. Batalden, and Marjorie M. GodfreyEugene C. Nelson, Paul B. Batalden, and Marjorie M. Godfrey

http://www.amazon.com/Quality-Design-Clinical-Microsystems-Approach/dp/0787978981/ref=sr_1_1?ie=UTF8&s=books&qid=1208362283&sr=8-1



““Clinical microsystem,” linked microsystems, Clinical microsystem,” linked microsystems, patient-centric “care teams” —Paul Batalden/DHMCpatient-centric “care teams” —Paul Batalden/DHMC

Source: Source: “What System?” “What System?” Dartmouth MedicineDartmouth Medicine, Summer , Summer 20062006

Quality By Design: A Clinical Microsystems Approach by Eugene C. Nelson, Paul B. Batalden, and Marjorie M.

Godfrey


#17#17

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

Nudge.Nudge.Sway.Sway.

K.I.S.S.K.I.S.S.*Keep It Simple, Stupid*Keep It Simple, Stupid

Case: The Case: The “simple” “simple” Checklist!Checklist!

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)

**Replicate in **Replicate in Inner City DetroitInner City Detroit (resource strapped—$$$, staff cut 1/3 (resource strapped—$$$, staff cut 1/3rdrd, poorest patients in USA), poorest patients in USA)

**Nurses QB the process**Nurses QB the process**Project manager for overall process implementation**Project manager for overall process implementation**Exec involvement **Exec involvement (help with “little things”—it’s all “little things”)(help with “little things”—it’s all “little things”)

**Blue Cross/insurers, small bonuses for participating**Blue Cross/insurers, small bonuses for participating

**6 months, **6 months, 66%66% decrease in infection rate; USA: decrease in infection rate; USA:

bottom 25% in hospital rankings bottom 25% in hospital rankings to … to …

top 10%top 10%Source: Atul Gawande, “The Checklist” (Source: Atul Gawande, “The Checklist” (New YorkerNew Yorker, 1210.07), 1210.07)

““[Pronovost] is focused on work that is [Pronovost] is focused on work that is not normallnot normallyy considered a siconsidered a siggnificant contribution in academic nificant contribution in academic

medicinemedicine. As a result, few others are venturing to extend . As a result, few others are venturing to extend

his achievements.his achievements. Yet his work has Yet his work has already saved more already saved more

lives than that of any lives than that of any laboratory scientist in laboratory scientist in the last decadethe last decade.”.” —Atul Gawande,—Atul Gawande,

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

Compression hose would mostly fix the hospital Compression hose would mostly fix the hospital problem:problem: “According to the American Heart Association, “According to the American Heart Association, up to two million Americans are affected annually by deep up to two million Americans are affected annually by deep

vein thrombosis. Of those who develop pulmonary vein thrombosis. Of those who develop pulmonary embolism, up to 300,000 will die each year. ... Deep vein embolism, up to 300,000 will die each year. ... Deep vein

thrombosis also is among the leading causes of thrombosis also is among the leading causes of preventable hospital death. Even more disturbing is the preventable hospital death. Even more disturbing is the

fact that, according to a U.S. multi-center study fact that, according to a U.S. multi-center study published by two of ClotCare's editorial board members,published by two of ClotCare's editorial board members,

58%58% of of ppatients who develoatients who developped a DVT ed a DVT while in the hoswhile in the hosppital received no ital received no ppreventive treatment desreventive treatment desppite the ite the

ppresence of multiresence of multipple risk factors and le risk factors and overwhelminoverwhelmingg data that data that pprophylaxis is rophylaxis is

ververyy effective at reducin effective at reducingg these events these events.”.” —Marie B. Walker, clotcare.com, March 2008—Marie B. Walker, clotcare.com, March 2008

SSpprint/Overland Park KSrint/Overland Park KS: : SlowSlow elevators, elevators, distantdistant

parking lots with parking lots with infrequentinfrequent buses, “food buses, “food

court” as court” as “poorly” placed“poorly” placed as possible, etc. as possible, etc.

Source: Source: New York TimesNew York Times

““Everything matters”Everything matters”

-80%-80%Source:Source: Nudge,Nudge, Richard Thaler and Cass Richard Thaler and Cass

Sunstein, etching of fly in the urinalSunstein, etching of fly in the urinal reduces “spillage” by 80%, Schiphol Airportreduces “spillage” by 80%, Schiphol Airport

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

Changes to Changes to SSmallmall Things. Things.

Rather, make Rather, make BiBig g Changes to Changes to BiBigg

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

PepsiCoPepsiCo

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

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

using using Small, Almost Small, Almost Invisible Invisible

Straightforward Straightforward LeversLevers with with BiBigg

SSyystemic Imstemic Imppactact.”.” —TP—TP

#17.1#17.1

Lisbon/New Biz:Lisbon/New Biz:

WeeksWeeks to …to …

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

450/8450/8

First Steps: “Beauty Contest”!

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

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

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

Beauty Beauty Grace Grace

Clarity Clarity SimplicitySimplicity

“One bank is currently One bank is currently claiming to … claiming to …

‘leverage its global footprint to provide effective financial solutions for its customers by providing a

gateway to diverse markets.’”

——Charles HandyCharles Handy

“I assume that it is I assume that it is just saying that it isjust saying that it is

there tothere to ‘‘helhelpp its its customers customers

wherever thewherever theyy are’are’.”.”

—Charles Handy

““Seek honest, minimalist management. Seek honest, minimalist management. Look for companies run by a team that Look for companies run by a team that explains things clearly and briefly. … explains things clearly and briefly. …

You can tell a lot about the firm by You can tell a lot about the firm by

reading an annual report or two. reading an annual report or two. If If management can’t explain the management can’t explain the business in business in pplain English, move lain English, move

on to another firmon to another firm.. If you see If you see phrases like ‘creating knowledge-based phrases like ‘creating knowledge-based value in emerging markets’ … someone value in emerging markets’ … someone is trying to pull the wool over your eyes, is trying to pull the wool over your eyes, you lazy Fool. Run.” you lazy Fool. Run.” —Seth Jayson, “Stocks for the

Lazy Investor,” The Motley Fool

#18#18

TP: TP: “How to flush

$500,000 down

the toilet in one easy

lesson!!”

< CAPEX< CAPEX> People!> People!

#18.1#18.1

Brand Brand = =

Talent.Talent.

IBPIBP = = Remarkable challenge, Remarkable challenge, rapid professional growth, rapid professional growth, respect, satisfaction, fun, respect, satisfaction, fun,

stunning opportunity, stunning opportunity, exceptional reward, amazing exceptional reward, amazing

peer group, full membership in peer group, full membership in Club Adventure, maximized Club Adventure, maximized

future employabilityfuture employability

Source: Ed Michaels, Source: Ed Michaels, The War for Talent; TPThe War for Talent; TP

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

#18.2#18.2

B(I) > B(O)B(I) > B(O)

#18.3#18.3

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

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

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

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

Entrepreneurial flairEntrepreneurial flair of of diverse individualsdiverse individuals is is

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

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

… … 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.

#18.4#18.4

Hire Hire ververy y good good

people!people!

“We believe companies can increase their market cap 50 percent in 3 years. Steve Macadam at Georgia-

Pacific … changed 2020 of his

4040 box plant managers to put more talented,

higher paid managers in charge. He increased profitability from

$$2525 million to $$8080 million in 22

years.”

—Ed Michaels, War for Talent

#18.5#18.5

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

NOBLEST NOBLEST MISSION.MISSION.

#18.6#18.6

““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

Organizing GeniusOrganizing Genius / Warren Bennis / Warren Bennis and Patricia Ward Biederman and Patricia Ward Biederman

“Groups become great only when “Groups become great only when everyone in them, leaders and everyone in them, leaders and

members alike, members alike, is free to do his or is free to do his or her absolute besther absolute best.”.”

“The best thing a leader can do for a “The best thing a leader can do for a

Great Group is to Great Group is to allow its allow its members to discover their members to discover their

ggreatnessreatness.”.”

Leaders’ “Mt Everest Test”Leaders’ “Mt Everest Test”

“free to do his or her “free to do his or her absolute best” …absolute best” …

“allow its members “allow its members to discover their to discover their

greatness.”greatness.”

#18.7#18.7

““[The CIA Director] never gave orders. He [The CIA Director] never gave orders. He ‘floated ideas,’ he found gold dust in the ‘floated ideas,’ he found gold dust in the

opinions of his subordinates, he made what opinions of his subordinates, he made what he called suggestions. Sometimes these he called suggestions. Sometimes these

suggestions baffled, sometimes they took suggestions baffled, sometimes they took the breath away. In [the Director’s] mind, the breath away. In [the Director’s] mind, nothing was impossible. He was loved for nothing was impossible. He was loved for

this. this. After all, to be told you After all, to be told you were capable of doing the were capable of doing the impossible was the rarest impossible was the rarest

kind of flatterykind of flattery.”.” Source: Source: Christopher’s Ghosts, Christopher’s Ghosts, Charles McCarryCharles McCarry

Dick-Ben-BlakeDick-Ben-Blake

****Took me seriouslyTook me seriously**Made me full member of an older team**Made me full member of an older team****Believed I could do excellent work withoutBelieved I could do excellent work without much supervision—and conveyed thatmuch supervision—and conveyed that beliefbelief**Calmed me down upon occasion**Calmed me down upon occasion**Shared gossip with me that I shouldn’t**Shared gossip with me that I shouldn’t have heardhave heard**Took me to meetings I would not normally**Took me to meetings I would not normally attend—let me presentattend—let me present**Taught me “the ropes”**Taught me “the ropes”** “We’re here to serve the battalions and** “We’re here to serve the battalions and the sailors”—focus on the Big Taskthe sailors”—focus on the Big Task**Get The Damn Job Done!**Get The Damn Job Done!**Good work >> Good paperwork**Good work >> Good paperwork**MBWA**MBWA

““I wasn’t bowled over by I wasn’t bowled over by [David Boies][David Boies] intelligence … What impressed me was intelligence … What impressed me was

that when he asked a question, he waited that when he asked a question, he waited

for an answer. for an answer. He not only He not only listened, he made me feel listened, he made me feel like I was the only person like I was the only person in the room.”in the room.” —Lawyer Kevin _____, on his first, —Lawyer Kevin _____, on his first,

inadvertent meeting with David Boies, from Marshall Goldsmith,inadvertent meeting with David Boies, from Marshall Goldsmith, “The One Skill That Separates,” “The One Skill That Separates,” Fast CompanyFast Company

#18.8#18.8

The Dream The Dream ManagerManager

——Matthew KellyMatthew Kelly

??????

% of people % of people with …with …

… … DreamsDreams

The Dream ManagerThe Dream Manager —Matthew —Matthew

KellyKelly

“An organization can only become the-best-version-of-“An organization can only become the-best-version-of-itself to the extent that the people who drive that itself to the extent that the people who drive that

organization are striving to become better-versions-of-organization are striving to become better-versions-of-themselves.” “A company’s purpose is to become the-themselves.” “A company’s purpose is to become the-

best-version-of-itself. The question is: What is an best-version-of-itself. The question is: What is an employee’s purpose? Most would say, ‘to help the employee’s purpose? Most would say, ‘to help the

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

forgets that it exists to serve customers, it quickly goes forgets that it exists to serve customers, it quickly goes

out of business.out of business. Our employees are our Our employees are our first customers, and our most first customers, and our most

important customers.”important customers.”

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

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

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

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

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

““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)

#18.9#18.9

EMPHASIZEMPHASIZE THE E THE “SOFT “SOFT

SKILLS.”SKILLS.”

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

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

Half-full Cups:Half-full Cups: “[Ronald “[Ronald Reagan] radiated an Reagan] radiated an

almost almost transcendent transcendent

happiness.” happiness.” —Lou Cannon —Lou Cannon

““Success or Failure”/Try Instead “Optimism or Success or Failure”/Try Instead “Optimism or Failure”/From Martin Seligman’s Learned Failure”/From Martin Seligman’s Learned Optimism:Optimism: “I believe the traditional wisdom is “I believe the traditional wisdom is

incomplete. A composer can have all the talent of a incomplete. A composer can have all the talent of a Mozart and a passionate desire to succeed, but if he Mozart and a passionate desire to succeed, but if he believes he cannot compose music, he will come to believes he cannot compose music, he will come to

nothing. He will not try hard enough. He will give up too nothing. He will not try hard enough. He will give up too soon when the elusive right melody takes too long to soon when the elusive right melody takes too long to

materialize. Success requires persistence, the ability to materialize. Success requires persistence, the ability to not give up in the face of failure. I believe that … not give up in the face of failure. I believe that …

OPTIMISTICOPTIMISTIC EXPLANATORY STYLEEXPLANATORY STYLE … is the key to persistence. … The optimistic-… is the key to persistence. … The optimistic-

explanatory-style theory of success says that in order to explanatory-style theory of success says that in order to choose peoplechoose people

for success in a challenging job, you need to select for for success in a challenging job, you need to select for

three characteristics: three characteristics: (1) (1) AptitudAptitudee. (2) . (2) MotivationMotivation.. (3)(3) OptimismOptimism.. All three determine All three determine

success.”success.”

#18.10#18.10

53 = 53 = 5353

#18.10.1#18.10.1

But …But …

**“School” on evaluating and**“School” on evaluating and developing peopledeveloping people**Major (demonstrated) (formal)**Major (demonstrated) (formal) time commitment to evaluation time commitment to evaluation (GK: 100 days/yr for 25 people—2 per year, (GK: 100 days/yr for 25 people—2 per year, one collecting data, one offsite)one collecting data, one offsite)

**Evaluation of your skills as **Evaluation of your skills as evaluator (and developer)evaluator (and developer)**Checklists are fine**Checklists are fine**Prose evaluations by both**Prose evaluations by both parties good parties good (schools: tests vs(schools: tests vs “ “demonstrations”)demonstrations”)

#18.11#18.11

Hostmanship: The Hostmanship: The Art of Making Art of Making People Feel People Feel Welcome Welcome

——Jan Gunnarsson and Olle BlohmJan Gunnarsson and Olle Blohm

““The path to a hostmanship culture paradoxically does not go The path to a hostmanship culture paradoxically does not go through the guest. In fact it wouldn’t be totally wrong to say through the guest. In fact it wouldn’t be totally wrong to say that the guest has nothing to do with it. True hostmanship that the guest has nothing to do with it. True hostmanship

leaders focus on their employees. What drives them is finding leaders focus on their employees. What drives them is finding the right people and getting them to love their work and see it the right people and getting them to love their work and see it

as a passion. … as a passion. … The guest comes into the picture The guest comes into the picture only when you are ready to ask, ‘only when you are ready to ask, ‘Would Would yyou ou pprefer to starefer to stayy at a hotel where the staff love at a hotel where the staff love their work or where manatheir work or where managgement has made ement has made

customers its hicustomers its higghest hest pprioritriority?’”y?’”

““We went through the hotel and made a ‘consideration We went through the hotel and made a ‘consideration renovation.’ Instead of redoing bathrooms, dining rooms and renovation.’ Instead of redoing bathrooms, dining rooms and

guest rooms, we gave employees new uniforms, bought guest rooms, we gave employees new uniforms, bought flowers and fruit and changed colors. Our focus was totally on flowers and fruit and changed colors. Our focus was totally on

the staff. the staff. TheTheyy were the ones we wanted to make were the ones we wanted to make hahappy. ppy. We wanted them to wake up everWe wanted them to wake up everyy morninmorningg excited about a new da excited about a new dayy at work at work.”.”

Source: Jan Gunnarsson and Olle BlohmSource: Jan Gunnarsson and Olle Blohm, , Hostmanship: The Art of Making People Feel WelcomeHostmanship: The Art of Making People Feel Welcome

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

and Watch ’Em Kick and Watch ’Em Kick ButtButt

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

““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)

#18.12#18.12

2/year 2/year = =

legacy.legacy.

#18.13#18.13

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

Employee retention & satisfaction:Employee retention & satisfaction: OverwhelminOverwhelmingglly, y, based on their based on their

immediateimmediate manamanaggerer!!

Source: Marcus Buckingham & Curt Coffman, Source: Marcus Buckingham & Curt Coffman, First, Break All First, Break All the Rules: the Rules:

What the World’s Greatest Managers Do DifferentlyWhat the World’s Greatest Managers Do Differently

The “Big Three”The “Big Three”

MarriageMarriageParenthoodParenthood

11stst Line Supervisor Line Supervisor**

*Accomplishment through others*Accomplishment through others

#18.14#18.14

““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 Organizing GeniusGenius

PARC’s Bob Taylor:

“Connoisseur “Connoisseur of Talent”of Talent”

(from Warren Bennis & Patricia Ward Biederman, (from Warren Bennis & Patricia Ward Biederman, Organizing Genius)Organizing Genius)

#18.15#18.15

““Leaders Leaders

‘‘SERVESERVE’’ people. people.

Period.”Period.” —inspired by Robert Greenleaf

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

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

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

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

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

Organizations Organizations existexist to to serveserve. Period.. Period.

Leaders Leaders live live toto serveserve. Period.. Period.

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

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

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

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

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

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

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

““We are a We are a ‘Life ‘Life

Success’ Success’ Company.”Company.”

Dave Liniger, founder, RE/MAX

#18.16#18.16

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

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

Muhammad Yunus:Muhammad Yunus: ““All human All human beings are entrepreneursbeings are entrepreneurs..

When we were in the caves we were When we were in the caves we were all self-employed . . . finding our food, all self-employed . . . finding our food,

feeding ourselves. That’s where feeding ourselves. That’s where human history began . . . As human history began . . . As

civilization came we suppressed it. We civilization came we suppressed it. We became labor because they stamped became labor because they stamped us, ‘You are labor.’ We forgot that we us, ‘You are labor.’ We forgot that we

are entrepreneurs.”are entrepreneurs.”

Source: Muhammad Yunus/2006 Nobel Peace prize winner,

father of micro-lending /The News Hour—PBS/1122.2006

Investment in Higher Ed:Investment in Higher Ed:

U.S.: 2.6% GDP* ** ***U.S.: 2.6% GDP* ** ***Europe: 1.2%Europe: 1.2%Japan: 1.1%Japan: 1.1%

**8 of top 10 universities; 68% of top 50; 8 of top 10 universities; 68% of top 50; 10 of top 10 in information sciences10 of top 10 in information sciences**Etc: **Etc: 76% of world biotech revenues76% of world biotech revenues***Minister of education, Singapore: ***Minister of education, Singapore: “We both have “We both have

meritocracies. Yours is a talent meritocracy, ours is an exam meritocracies. Yours is a talent meritocracy, ours is an exam meritocracy.”meritocracy.”

Source: “The Future of American Power,” Fareed Zakaria, Source: “The Future of American Power,” Fareed Zakaria, Foreign AffairsForeign Affairs, vol 87, no. 3, vol 87, no. 3

#18.17#18.17

Globalization1.0: Globalization1.0: Countries Countries globalizing globalizing (1492-1800)(1492-1800)

Globalization2.0: Globalization2.0: Companies Companies globalizing globalizing (1800-(1800-2000)2000)

Globalization3.0 Globalization3.0 (2000+)(2000+): : IndividualsIndividuals collaboratingcollaborating & competing globally & competing globally

Source: Tom Friedman/Source: Tom Friedman/The World Is FlatThe World Is Flat

EXCELLENCE. EXCELLENCE. INDIVIDUAL.INDIVIDUAL.BRAND YOU.BRAND YOU.

““One of the defining One of the defining characteristics [of the characteristics [of the

change] is that it will be change] is that it will be lessless driven by countries or driven by countries or corporations and corporations and moremore

driven by real people.driven by real people. It will It will unleash unprecedented creativity, unleash unprecedented creativity,

advancement of knowledge, and economic advancement of knowledge, and economic development. But at the same time, it will development. But at the same time, it will tend to undermine safety net systems and tend to undermine safety net systems and

penalize the unskilled.”penalize the unskilled.” —Clyde Prestowitz, —Clyde Prestowitz, Three Three

Billion New CapitalistsBillion New Capitalists

1. Can someone overseas do1. Can someone overseas do it cheaper? it cheaper?2. Can a computer do it2. Can a computer do it faster? faster?3. Is what you’re selling in3. Is what you’re selling in demand in an age of demand in an age of abundance? abundance?Source: Dan PinkSource: Dan Pink

““If there is nothing If there is nothing very special about very special about your work,your work, no matter no matter how hard you apply yourself how hard you apply yourself you won’t get noticed, and you won’t get noticed, and

that increasingly means you that increasingly means you

won’t get paid much either.”won’t get paid much either.” —Michael Goldhaber, Wired

DistinctDistinct … or

…

ExtincExtinctt

BRAND BRAND YOU.YOU.NO NO

OPTION.OPTION.

““You are the You are the storyteller of your storyteller of your own life, and you own life, and you

can create your own can create your own

legend or not.”legend or not.” —Isabel

Allende

““The general, speakingThe general, speaking with what felt was with what felt was

authority, always insisted authority, always insisted that, if you bring off that, if you bring off

adequate preservationadequate preservation of your personal myth, of your personal myth,

nothing much else in life nothing much else in life matters.”matters.” —Anthony Powell—Anthony Powell

““Carpenters bend Carpenters bend wood; fletchers wood; fletchers

bend arrows; wise bend arrows; wise men fashion men fashion

themselves.”themselves.” — Buddha— Buddha

The Rule of Positioning

“If you can’t describe “If you can’t describe your position in your position in

eight words or less, eight words or less, you don’t have you don’t have

a position.”a position.” — Jay Levinson and— Jay Levinson and

Seth Godin, Seth Godin, Get What You Deserve!Get What You Deserve!

““Nobody Nobody gives you gives you power. power.

You just You just take it.”take it.” ——RoseanneRoseanne

Muhammad Yunus:Muhammad Yunus: ““All human All human beings are entrepreneursbeings are entrepreneurs..

When we were in the caves we were When we were in the caves we were all self-employed . . . finding our food, all self-employed . . . finding our food,

feeding ourselves. That’s where feeding ourselves. That’s where human history began . . . As human history began . . . As

civilization came we suppressed it. We civilization came we suppressed it. We became labor because they stamped became labor because they stamped us, ‘You are labor.’ We forgot that we us, ‘You are labor.’ We forgot that we

are entrepreneurs.”are entrepreneurs.”

Source: Muhammad Yunus/The News Hour—PBS/1122.2006

The The electrician electrician

knows!knows!

Core Mechanism:“Game-changing Solutions”

PSFPSF (Professional Service Firm “model”/The Organizing Principle)

+

Brand YouBrand You(“Distinct” or “Extinct”/The Talent)

+

Wow! ProjectsWow! Projects (“Different” vs “Better”/The Work)

New Work SurvivalKit.2008New Work SurvivalKit.2008

1. 1. MASTERY!MASTERY! (Best/Absurdly Good at (Best/Absurdly Good at Something!Something!))

2. 2. “Manage” to Legacy“Manage” to Legacy (All Work = “Memorable”/“Braggable” (All Work = “Memorable”/“Braggable” WOW WOW Projects!Projects!))3. 3. A “USP”/UNIQUE SELLING PROPOSITIONA “USP”/UNIQUE SELLING PROPOSITION 4. 4. Rolodex Rolodex ObsessionObsession (From vertical/hierarchy/“suck up” loyalty to(From vertical/hierarchy/“suck up” loyalty to horizontal/“colleague”/“mate” loyalty)horizontal/“colleague”/“mate” loyalty)5. 5. ENTREPRENEURIAL INSTINCTENTREPRENEURIAL INSTINCT (A sleepless … Eye for Opportunity! (A sleepless … Eye for Opportunity! 6.6.CEO/LEADER/BUSINESSPERSON/CLOSERCEO/LEADER/BUSINESSPERSON/CLOSER (CEO, Me Inc. 24/7!)(CEO, Me Inc. 24/7!)

7. 7. Master of ImprovMaster of Improv (Play a dozen parts simultaneously, from(Play a dozen parts simultaneously, from Chief Strategist to Chief Toilet Scrubber)Chief Strategist to Chief Toilet Scrubber)8. 8. Sense of HumorSense of Humor (A willingness to Screw Up & Move On)(A willingness to Screw Up & Move On)

9. 9. Comfortable with Your SkinComfortable with Your Skin (Bring “interesting you” to work!)(Bring “interesting you” to work!)

10. 10. Intense Appetite for TechnologyIntense Appetite for Technology (E.g.: How Cool-Active is your(E.g.: How Cool-Active is your Web site? Do you Blog?)Web site? Do you Blog?)11. 11. EMBRACE “MARKETING”EMBRACE “MARKETING” (Your own CSO/Chief Storytelling Officer)(Your own CSO/Chief Storytelling Officer)

12. 12. PASSION FOR RENEWALPASSION FOR RENEWAL (Your own CLO/Chief Learning Officer) (Your own CLO/Chief Learning Officer)

13. 13. EXECUTION EXCELLENCE!EXECUTION EXCELLENCE! (Show up on time! Leave last!)(Show up on time! Leave last!)

Thriving in 24/7Thriving in 24/7 (Sally Helgesen) (Sally Helgesen)

*START AT THE CORE.*START AT THE CORE. Nimbleness only Nimbleness only possible if we “locate our inner voice,” take regular possible if we “locate our inner voice,” take regular inventory of where we are.inventory of where we are.

*LEARN TO ZIGZAG.*LEARN TO ZIGZAG. Think “gigs.” Think Think “gigs.” Think lifelong learning. Forget “old loyalty.” Work on optimism.lifelong learning. Forget “old loyalty.” Work on optimism.

*CREATE OUR OWN WORK.*CREATE OUR OWN WORK. Articulate your value. Integrate your passions. I.D. your Articulate your value. Integrate your passions. I.D. your market. Run your own business.market. Run your own business.

*WEAVE A STRONG WEB OF *WEAVE A STRONG WEB OF INCLUSION.INCLUSION. Build your own support network. Build your own support network. Master the art of “looking people up.”Master the art of “looking people up.”

ACTING: Think of a person as a

“troupe of “troupe of actors.”actors.” (“Many

truths about oneself” which must all be understood if one is to know oneself.)

Source: A..C. Grayling, The Meaning of Things: Applying Philosophy to Life

Personal Personal “Brand Equity” Evaluation“Brand Equity” Evaluation

– My current Project is challenging me …My current Project is challenging me …– New things I’ve learned in the last 90 days include …New things I’ve learned in the last 90 days include …– I am known for [2 to 3 things]; next year at this time I’ll I am known for [2 to 3 things]; next year at this time I’ll

also be known for [1 more thing].also be known for [1 more thing].– My public “recognition program” My public “recognition program”

consists of …consists of …– Additions to my Rolodex in the last 90 days include …Additions to my Rolodex in the last 90 days include …

– My resume is My resume is discerniblydiscernibly differentdifferent from last year’sfrom last year’s

at this time …at this time …

R.D.A.R.D.A.

Rate: 15%?, 25%?Rate: 15%?, 25%?

Therefore:Therefore: Formal “Investment Formal “Investment

Strategy”/Strategy”/R.I.PR.I.P.*.**Renewal Investment Plan*Renewal Investment Plan

R.D.A.R.D.A.**

Rate: 15%? 25%?Rate: 15%? 25%?

Therefore:Therefore: Formal “Investment Formal “Investment

Strategy”/ Strategy”/ R.I.P.R.I.P.****

*Rapidly Depreciating Asset *Rapidly Depreciating Asset (You!)(You!)**Renewal Investment Plan**Renewal Investment Plan

““The only thing you The only thing you have power over is have power over is to get good at what to get good at what

you do. That’s all you do. That’s all there is; there ain’t there is; there ain’t

no more!”no more!” —Sally Field—Sally Field

Richard Sennett: Richard Sennett: “Craftsmanship,” “Craftsmanship,” “a sustaining life “a sustaining life

narrative”narrative”Source: Stefan Stern on Management, FT, 0710.07

“Worthy” Ambition vs. “Mere” Ambition per MILTON

“The difference is well illustrated by the contrast between the person who says he ‘wishes to be a writer’ and the person who says he ‘wishes to write.’

The former desires to be pointed out at cocktail parties, the latter is prepared for the long, solitary hours at as desk;

the former desires a status, the latter a process; the former desires to be, the latter to do.” —A..C. Grayling, The Meaning of Things:

Applying Philosophy to Life [C.f. JOHN BOYD on “be-do.”]

“Happiness” & “Leisure” per ARISTOTLE

HAPPINESS: Eudaimonia … well-doing, living flourishingly. Megalopsychos … “great-souled,” “magnanimous.” More: respect and concern for

others; duty to improve oneself; using one’s gifts to the fullest extent possible; fully aware; making

one’s own choices.

LEISURE: pursue excellence; reflect; deepen understanding; opportunity to work for higher

ends. [“Rest” vs. “leisure.”]

Source: A.C. Grayling, The Meaning of Things: Applying Philosophy to Life

““My ancestors were printers My ancestors were printers in Amsterdam from 1510 or in Amsterdam from 1510 or

so until 1750, so until 1750, and during and during that entire time they that entire time they didn’t have to learn didn’t have to learn anything new.” anything new.” —Peter

Drucker, Business 2.0

““Knowledge becomes Knowledge becomes obsolete incredibly fast. obsolete incredibly fast.

The continuing The continuing professional professional

education of adults is education of adults is the No. 1 industry in the No. 1 industry in the next 30 yearsthe next 30 years … …

mostly mostly

on line.”on line.” —Peter Drucker, —Peter Drucker, Business 2.0Business 2.0

1 Person!1 Person!Wendy Kopp, Princeton senior (1989)Wendy Kopp, Princeton senior (1989)

Teach America (19,000-2,400)Teach America (19,000-2,400)10% Dartmouth, Yale10% Dartmouth, Yale

17,000 to date17,000 to datePrincipal hirer of college graduatesPrincipal hirer of college graduates

“One of the few jobs that people pass up “One of the few jobs that people pass up Goldman Sachs for is Teach America” (Edie Goldman Sachs for is Teach America” (Edie

Hunt, HR)Hunt, HR)

Source: Fortune, 1127.06

““It’s It’s alwaysalways

showtime.”showtime.” —David D’Alessandro, Career Warfare

““To To BeBe somebody or to somebody or to

DoDo something”something”

BOYD: The Fighter Pilot Who Changed the Art of WarBOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram) (Robert Coram)

“When was the last When was the last time you asked, time you asked,

‘‘What do I want What do I want to beto be?’ ”?’ ” —Sara Ann Friedman, —Sara Ann Friedman, Work MattersWork Matters

““All of our artistic and religious traditions All of our artistic and religious traditions take equally great pains to inform us that take equally great pains to inform us that

we must never mistake a we must never mistake a good career for good good career for good workwork.. Life is a creative, intimate, Life is a creative, intimate,

unpredictable conversation if it is nothing unpredictable conversation if it is nothing else—and our life and our work are both else—and our life and our work are both

the result of the way we hold that the result of the way we hold that passionate conversation.”passionate conversation.” —David Whyte, —David Whyte, Crossing Crossing

the Unknown Sea: Work as a Pilgrimage of Identitythe Unknown Sea: Work as a Pilgrimage of Identity

A “A “position”position” is is notnot an an

“accomplishment.”“accomplishment.” ——TPTP

BLAME NOBODY.BLAME NOBODY.EXPECT EXPECT NOTHING.NOTHING.DO SOMETHING.DO SOMETHING.

Source: Locker room sign posted bySource: Locker room sign posted byfootball coach Bill Parcellsfootball coach Bill Parcells

““This is the true joy of Life, This is the true joy of Life, the being used for a purpose the being used for a purpose recognized by yourself as a recognized by yourself as a mighty one … the being a mighty one … the being a

force of Nature instead of a force of Nature instead of a feverish, selfish little clod of feverish, selfish little clod of

ailments and grievances ailments and grievances complaining that the world complaining that the world

will not devote itself to will not devote itself to making you happy.”making you happy.” —GB Shaw/

Man and Superman

““How Would You How Would You Play Play TodayToday If You If You Knew You Could Knew You Could

NotNot Play Play Tomorrow”Tomorrow”

Source: Slogan for Loyola’s lacrosse season, from coach Diane Geppi-Aikens (Lucky Every Day: The Wisdom of Diane Geppi-Aikens, by Chip Silverman)

““Make each day Make each day a Masterpiece!”a Masterpiece!”

—JW

““Tell me, what is Tell me, what is it you plan to do it you plan to do

with your one with your one wild and wild and

precious life?”precious life?”

—Mary Oliver—Mary Oliver

““Do one Do one thing every thing every

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

—Eleanor Roosevelt

Joe J. Jones Joe J. Jones 1942 – 2006 1942 – 2006

HE WOULDA DONE SOME HE WOULDA DONE SOME

REALLY COOL STUFF REALLY COOL STUFF

BUT …BUT …

HIS BOSS WOULDN’T LET HIM! HIS BOSS WOULDN’T LET HIM!

#19#19

Single Single greatest actgreatest act

of pure of pure imaginationimagination

2424%%

dubaidubai

No Wiggle Room!No Wiggle Room!

“Incrementalis“Incrementalism is m is

innovation’s innovation’s worstworst enemy.” enemy.”

—Nicholas Negroponte—Nicholas Negroponte

3M’s Innovation3M’s Innovation Crisis: How Six Crisis: How Six Sigma Almost Sigma Almost

SmotheredSmothered Its Idea Culture Its Idea Culture

Source: Title/Cover Story, Source: Title/Cover Story, BWBW, 0611.07 (, 0611.07 (“What’s remarkable is “What’s remarkable is how fast a culture can be torn apart,”how fast a culture can be torn apart,” 3M lead scientist; “In 3M lead scientist; “In

an innovation economy, [6 Sigma] is no longer a cure all”/ an innovation economy, [6 Sigma] is no longer a cure all”/BWBW))

#19.1#19.1

** ** “Where’s the Dubai”“Where’s the Dubai” in you strategy, orin you strategy, or project portfolio? project portfolio?**Strategy doc should be**Strategy doc should be exciting exciting —excite a —excite a spouse or teenager, or a spouse or teenager, or a meeting of frontline folks meeting of frontline folks

#20#20

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

Hard Is Soft (#Hard Is Soft (#ss))Soft Is Hard (people)Soft Is Hard (people)

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

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

relationships))relationships))

““The 7-S Model”The 7-S Model”

StrategyStrategyStructureStructureSystemsSystems

StyleStyleSkillsSkillsStaffStaff

Super-ordinate goalSuper-ordinate goal


“Hard S“Hard Sss”” (Strategy, Structure, Systems)(Strategy, Structure, Systems)

“Soft S“Soft SSS”” (Style, Skills, Staff, Super-ordinate goal)(Style, Skills, Staff, Super-ordinate goal)


StrategyStrategyStructureStructureSystemsSystems

StyleStyle (Corporate “Culture,” “The (Corporate “Culture,” “The wayway

we do things around here”) we do things around here”)SkillsSkills (“Distinctive Competence/s)(“Distinctive Competence/s)

StaffStaff (People-Talent)(People-Talent)Super-ordinate goalSuper-ordinate goal (Vision, (Vision,

Core Values)Core Values)

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

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

“If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of

hundreds of thousands of people is very, very hard. [Yet] I came to see in my time at IBM that culture

isn’t just one aspect of the

game ——it is the it is the gamegame.”.” —Lou Gerstner,

Who Says Elephants Can’t Dance

““The terms ‘hard facts,’ The terms ‘hard facts,’ and ‘the soft stuff’ used and ‘the soft stuff’ used in business imply that in business imply that data are somehow real data are somehow real

and strong while and strong while emotions are weak and emotions are weak and

less important.”less important.”

—George Kohlrieser, —George Kohlrieser, Hostage at the TableHostage at the Table

Drucker, Strategy, LeadershipDrucker, Strategy, Leadership

Classic DruckerClassic Drucker (from the (from the HBRHBR), ), 221 pages: “strategy,” 3 p 221 pages: “strategy,” 3 p (infotech); “leadership,” 0.(infotech); “leadership,” 0.

The Practice of ManagementThe Practice of Management, , 404 p: “strategy,” 0; 404 p: “strategy,” 0;

“leadership,” 3 p.“leadership,” 3 p.

ManagementManagement, 568 p: “strategy,” , 568 p: “strategy,” 8 p (all on systems, none on 8 p (all on systems, none on

content), “leadership,” 12 p. content), “leadership,” 12 p.

#20.1#20.1

9595%%

““What I learned from my years What I learned from my years as a hostage negotiator is that as a hostage negotiator is that

we do not have to feel we do not have to feel powerless—and that powerless—and that

bondinbondingg is the antidote to is the antidote to the hostage situation.”the hostage situation.” —George —George

Kohlrieser, Kohlrieser, Hostage at the TableHostage at the Table

#20.1.1#20.1.1

bedrock bedrock behaviorsbehaviors

Home Run

Being there!Being there! * ** *** ****

*No more, no less**“A body can pretend to care, but they can’t

pretend to be there.” — Texas Bix Bender*** GEN Melvin Zais on COs and inspections

****Silence is golden! [Utter silence is golden-er.]

Period!

Shake handsShake handsSmileSmile

Eye contactEye contact

Period+!

Shake handsSmile

Eye contactThank youThank you

FlowersFlowersOpen poseOpen pose

ROIRROIR

Period+!

Shake handsShake handsSmileSmile

Eye contactEye contactThank youThank you

FlowersFlowersOpen poseOpen pose

ROIRROIR

#20.2#20.2

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

RReturn eturn OOn n

IInvestment In nvestment In

RRelationshipselationships

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

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

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

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

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

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

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

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

future coalition commandfuture coalition command

#20.3#20.3

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

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

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

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


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

oror


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.”

#20.4#20.4

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

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

Champion = Champion = OneOne LineLine ofof CodeCode!!

““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)

Life’s Little SecretLife’s Little Secret

**One line of code**One line of code**Caudill’s table in the rural**Caudill’s table in the rural library library**Hair on the woman’s arm**Hair on the woman’s arm**EJW’s scissors to the perfect**EJW’s scissors to the perfect draft draft

**They**They own it. own it.****TheyThey saved it and saved your saved it and saved your (rather uninformed) butt. (rather uninformed) butt.****YouYou must tolerate a smidgeon must tolerate a smidgeon of sub-optimization. of sub-optimization. ****YouYou must show appropriate must show appropriate humility and appreciation. humility and appreciation.****YouYou must be willing (eager) to must be willing (eager) to cover the exact same ground cover the exact same ground again and again and again. again and again and again.

#20.5#20.5

““TAKE THIS QUICK QUIZTAKE THIS QUICK QUIZ: Who manages more Who manages more things at once?things at once? Who puts more effort into their Who puts more effort into their appearance?appearance? Who usually takes care of the Who usually takes care of the

details?details? Who finds it easier to meet new Who finds it easier to meet new people?people? Who asks more questions in a Who asks more questions in a

conversation?conversation? Who is a better listener?Who is a better listener? Who Who has more interest in communication skills?has more interest in communication skills? Who is more inclined to get involved?Who is more inclined to get involved? Who Who encourages harmony and agreement?encourages harmony and agreement? Who Who

has better intuition?has better intuition? Who works with a longer Who works with a longer ‘to do’ list?‘to do’ list? Who enjoys a recap to the day’s Who enjoys a recap to the day’s events?events? Who is better at keeping in touchWho is better at keeping in touch

with others?”with others?”

Source: Selling Is a Woman’s Game: 15 Powerful Reasons WhySelling Is a Woman’s Game: 15 Powerful Reasons Why Women Can Outsell MenWomen Can Outsell Men, Nicki Joy & Susan Kane-Benson, Nicki Joy & Susan Kane-Benson

#20.6#20.6

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

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

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

COMPLETE RUPTURE.COMPLETE RUPTURE.

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

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

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

REAL PROBLEMREAL PROBLEM.

#20.7#20.7

““I screwed I screwed up.”*up.”*

*The virtuous “circle of blame*The virtuous “circle of blame

#20.8#20.8

““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

““Good relationships Good relationships aren’taren’t about ‘clear about ‘clear communications’—communications’—they’re about small they’re about small

momentsmoments of attachment and of attachment and

intimacy.”intimacy.” —John Gottman, “Making —John Gottman, “Making

Relationships Work,” John Gottman (Relationships Work,” John Gottman (Harvard Business Harvard Business Review, Review, 12.07) 12.07)

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

How Small How Small /gestures Build /gestures Build

Great Companies.Great Companies. —Steve Harrison, Adecco

““Be kind, for Be kind, for everyone you everyone you

meet is fighting a meet is fighting a great battle.”great battle.” —Philo of —Philo of

AlexandriaAlexandria

““There is always an There is always an easy solution to easy solution to

every human every human problem—neat, problem—neat,

plausible, and … plausible, and … wronwrongg.”.” —H.L. Mencken:—H.L. Mencken:

#20.9#20.9

Politics Politics politics politics politics politics politics politics politicspolitics politics politics politics politics politics politics politics politics politics politics politicspolitics politics politics politics politics politicspolitics politics politics politics politics politicspolitics politics politics politicspolitics politics politics

politicspolitics

love it or love it or leave it!leave it!

#20.10#20.10

1818””

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

Success Success Through Through Listening Listening IntentlyIntently

Listening Is An Act of Love: A Celebration of American Listening Is An Act of Love: A Celebration of American Life from the StoryCorps ProjectLife from the StoryCorps Project, , Dave Isay* Dave Isay*

Guiding principles:Guiding principles: “Our stories—the stories of everyday “Our stories—the stories of everyday people—are as interesting and importantpeople—are as interesting and important

as the celebrity stories we are bombarded with …as the celebrity stories we are bombarded with …““If we take the time to listen, we’ll find wisdom, wonder If we take the time to listen, we’ll find wisdom, wonder

and poetry in the lives and stories of the people all and poetry in the lives and stories of the people all around us …around us …

““We all want to know our lives have mattered …We all want to know our lives have mattered …““Listening is an act of love.”Listening is an act of love.”

Listening may or may not be an “act of Listening may or may not be an “act of love” or way to “tap into people’s dreams,” love” or way to “tap into people’s dreams,” but it sure as hell is (1) an uncommon act of but it sure as hell is (1) an uncommon act of

courtesycourtesy and and recognitionrecognition of of worthworth from from which (2) you will invariably which (2) you will invariably learnlearn amazing amazing stuff if you can just keep your damn mouth stuff if you can just keep your damn mouth shutshut and ears and ears openopen with an expression of with an expression of interestinterest on your face and (3) it will build- on your face and (3) it will build-

maintain relationships beyond your maintain relationships beyond your wildest wildest dreamsdreams. (4) So: shut up. Practice . (4) So: shut up. Practice

attentiveness (no kidding) on waiters,attentiveness (no kidding) on waiters, cab drivers, folks in line at the grocery cab drivers, folks in line at the grocery

store, etc.store, etc.

““You can make more You can make more friends in two months friends in two months bbyy becominbecomingg interested in interested in

other other ppeoeopple thanle than you can you can in two years by trying to in two years by trying to

get other people get other people interested in you.”interested in you.” —Dale

Carnegie

#20.11#20.11

Respect. Respect.

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

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

college president.college president. He was He was seriously interested in seriously interested in

who you were and what who you were and what you had to sayyou had to say.”.”Sara Lawrence-Lightfoot, Respect

The World Is A Liar!The World Is A Liar!

““In a way, the world is a great liar. It shows you it In a way, the world is a great liar. It shows you it worships and admires money, but at the end of the day worships and admires money, but at the end of the day

it doesn’t. It says it adores fame and celebrity, but it it doesn’t. It says it adores fame and celebrity, but it doesn’t, not really. The world admires, and wants to doesn’t, not really. The world admires, and wants to hold on to, and not lose, goodness. It admires virtue. hold on to, and not lose, goodness. It admires virtue. At the end it gives its greatest tributes to generosity, At the end it gives its greatest tributes to generosity,

honesty, courage, mercy, talents well used, talents honesty, courage, mercy, talents well used, talents that, brought into the world, make it better. That’s that, brought into the world, make it better. That’s what it really admires. That’s what we talk about in what it really admires. That’s what we talk about in

eulogies, because that’s what’s important.eulogies, because that’s what’s important. We We don’t say ‘The thing about Joe was don’t say ‘The thing about Joe was

he was rich.’ We say, if we can, he was rich.’ We say, if we can, ‘The thing about Joe was he took ‘The thing about Joe was he took

good care of people.’”good care of people.’” —Peggy Noonan,—Peggy Noonan,

“ “Life’s Lesson,” on the astounding response to the passing of Tim Russert,Life’s Lesson,” on the astounding response to the passing of Tim Russert, The Wall Street JournalThe Wall Street Journal, June 21-22, 2008, June 21-22, 2008

Amen!Amen!

“What creates trust, in “What creates trust, in the end, is the leader’s the end, is the leader’s

manifest respect for manifest respect for the followers.”the followers.” — Jim O’Toole, — Jim O’Toole,

Leading ChangeLeading Change

““We are ladiesWe are ladies and gentlemen and gentlemen

serving ladies and serving ladies and gentlemen.”gentlemen.” —Horst —Horst

Schulze, Ritz Carlton motto (laughed at at Schulze, Ritz Carlton motto (laughed at at Hyatt)Hyatt)

““The The [Union senior][Union senior] officers rode past the officers rode past the Confederates smugly without any sign Confederates smugly without any sign of recognition except by one. ‘When of recognition except by one. ‘When

General Grant reached the line of General Grant reached the line of ragged, filthy, bloody, despairing ragged, filthy, bloody, despairing

prisoners strung out on each side of prisoners strung out on each side of the bridge, he lifted his hat and held it the bridge, he lifted his hat and held it over his head until he passed the last over his head until he passed the last man of that living funeral cortege. He man of that living funeral cortege. He was the only officer in that whole train was the only officer in that whole train

who recognized us as being on the who recognized us as being on the face of the earth.’*”face of the earth.’*”

*quote within a quote from diary of a Confederate soldier

““It’s not people who It’s not people who aren’t credit-worthy. aren’t credit-worthy. It’s banks that aren’t It’s banks that aren’t

people worthy.”people worthy.”Muhammad Yunus

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

William JamesWilliam James

““If you don’tIf you don’t listen,listen,

youyou don’t selldon’t sellanything.”anything.”

—Carolyn Marland/Managing Director/Guardian Group

#20.12#20.12

FFLLOOWWEERRPPOOWWEERR

#20.13#20.13

Questions:Questions: What do others think of you? What do others think of you? [Are you sure?][Are you sure?] What What do you think of you? do you think of you? [Are you sure?][Are you sure?] What is your impact What is your impact

on others?on others? [Are you sure?][Are you sure?] What is your impact on What is your impact on others?others? [Are you sure?] [Are you sure?] What is your impact on others?What is your impact on others?

[Are you sure?][Are you sure?] What are the “little things” you (perhaps What are the “little things” you (perhaps unconsciously) do that cause people to shrivel—or blossom? unconsciously) do that cause people to shrivel—or blossom? [Are [Are you sure?]you sure?] What do you want? What do you want? [Are you sure?][Are you sure?] Are you aware Are you aware

of your changing moods? of your changing moods? [Are you sure?][Are you sure?] How fragile is your How fragile is your ego? ego? [Are you sure?][Are you sure?] Do you have a true confidant? Do you have a true confidant? [Are you [Are you sure?]sure?] Do you perform brief or not-so-brief self-assessments? Do Do you perform brief or not-so-brief self-assessments? Do you talk too much? you talk too much? [Are you sure?][Are you sure?] Do you know Do you know how how to listen? to listen? [Are you sure?][Are you sure?] DoDo you listen? you listen? [Are you sure?][Are you sure?] What is What is

your style of “hashing things out”? Are you perceived as (a) your style of “hashing things out”? Are you perceived as (a) arrogant, (b) abrasive (c) attentive, (d) genuinely interested in people, arrogant, (b) abrasive (c) attentive, (d) genuinely interested in people,

(e) etc? (e) etc? [Are you sure?][Are you sure?] Are you flexible? Have you changed Are you flexible? Have you changed your mind about anything your mind about anything important important in a while? Are you in a while? Are you

comfortable-uncomfortable with folks on the front line? comfortable-uncomfortable with folks on the front line? Do you Do you think you’re “in touch with the pulse of things around think you’re “in touch with the pulse of things around

here”?here”? [Are You Sure?][Are You Sure?] Are you too emotional/intuitive? Are Are you too emotional/intuitive? Are you too unemotional/rational? Do you spend much time with people you too unemotional/rational? Do you spend much time with people

who are new to you?who are new to you? [Do you think questions like this are [Do you think questions like this are “so much BS”?]“so much BS”?]

#20.1#20.144

CauseCause (worthy of commitment)(worthy of commitment)

SpaceSpace (room for/encouragement(room for/encouragement

for initiative) for initiative)

DecencyDecency (respect, (respect,

humane)humane)


SpaceSpace (room for/encouragement(room for/encouragement

for initiative-adventures) for initiative-adventures)

DecencyDecency (respect, grace,(respect, grace,

integrity, humane) integrity, humane)

service service (worthy of our clients’ & (worthy of our clients’ &

extended extended family’s continuing custom) family’s continuing custom)

excellenceexcellence (period) (period)

CauseCause

SpaceSpace

DecencyDecency

serviceserviceexcellenceexcellence

servant leadership servant leadership


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

adventures) adventures)

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

service service (worthy of our clients’ & extended (worthy of our clients’ & extended

family’s continuing custom) family’s continuing custom)

excellenceexcellence (period) (period)

servant servant leadership leadership

#21#21

Attending toAttending to the “Last 98%”:the “Last 98%”:

The New The New Management Management

“Science,” or …“Science,” or … “ “Hard Is Soft,Hard Is Soft, Soft Is Hard”Soft Is Hard”

Tom Peters/12.03.2008Tom Peters/12.03.2008

S = f( ___ )S = f( ___ )Success Is aSuccess Is a

Function of …Function of …

S = ƒ(#&DR; -2L, -3L, 4L; I&E)S = ƒ(#&DR; -2L, -3L, 4L; I&E)Number and depth of relationships 2, 3, and 4 levels down,Number and depth of relationships 2, 3, and 4 levels down,inside and outside the organizationinside and outside the organization

S = ƒ(SD>SU)S = ƒ(SD>SU)Sucking down is more important than sucking up—the idea is to haveSucking down is more important than sucking up—the idea is to havethe entire organization working for you.the entire organization working for you.

S = ƒ(#non-FF, #non-FL)S = ƒ(#non-FF, #non-FL)Number of friends, number of lunches with people not in my functionNumber of friends, number of lunches with people not in my function

S = ƒ(#FF)S = ƒ(#FF)Number of friends in the finance function-organizationNumber of friends in the finance function-organization

S = ƒ(OF)S = ƒ(OF)Oddball friendsOddball friends

S = ƒ(PDL)S = ƒ(PDL)Purposeful, deep listening—Purposeful, deep listening—this is very hardthis is very hard

S = ƒ(#EODD3MC)S = ƒ(#EODD3MC)Number of end-of-the-day difficult (you’d rather avoid) “3-minute calls” that Number of end-of-the-day difficult (you’d rather avoid) “3-minute calls” that soothe raw feelings, mend fences, etc.soothe raw feelings, mend fences, etc.

S = ƒ(UFP, UFK, OAPS)S = ƒ(UFP, UFK, OAPS)Unsolicited favors performed, UFs involving co-workers’ kids, overt acts Unsolicited favors performed, UFs involving co-workers’ kids, overt acts politeness-solicitude toward co-workers’ spouses, parents, etc.politeness-solicitude toward co-workers’ spouses, parents, etc.

S = ƒ(#TN)S = ƒ(#TN)Number of thank you notes sentNumber of thank you notes sent

S = ƒ(#C, PTS/“OLC”, SAPA)S = ƒ(#C, PTS/“OLC”, SAPA)# of consultations, perception of being taken serious (Responsible for “one line of # of consultations, perception of being taken serious (Responsible for “one line of code,” small act of public appreciationcode,” small act of public appreciation

S = ƒ(SU)S = ƒ(SU)Showing up (Woody Allen, Delaware’s ridiculous influence on theShowing up (Woody Allen, Delaware’s ridiculous influence on theU.S. Constitution)U.S. Constitution)

S = ƒ(1D)S = ƒ(1D)Seeking the assignment of writing first drafts, minutes, etc (1787)Seeking the assignment of writing first drafts, minutes, etc (1787)

S = ƒ(#SEAs)S = ƒ(#SEAs)Number of solid relationships with Executive AssistantsNumber of solid relationships with Executive Assistants

S = ƒ(%UL/w-m)S = ƒ(%UL/w-m)% useful lunches per week, month% useful lunches per week, month

S = ƒ(FG, FOC-BOF, CMO)S = ƒ(FG, FOC-BOF, CMO)Favors given, favors owed collectively, balance of favors, Favors given, favors owed collectively, balance of favors, conscious management thereofconscious management thereof

S = ƒ(CPRM, TS)S = ƒ(CPRM, TS)Conscious-planned Relationship management, time spent thereonConscious-planned Relationship management, time spent thereon

S = ƒ(TN/d, FG/m, AA/d)S = ƒ(TN/d, FG/m, AA/d)Thank you notes per Thank you notes per Day, Day, flowers given perflowers given per Month, Acts of Appreciation per Day Month, Acts of Appreciation per Day

S = ƒ(PT100%A“T”S, E“NMF”–TTT)S = ƒ(PT100%A“T”S, E“NMF”–TTT)Proactive, timely, 100% apologies for “tiny” screw-ups, even if not my faultProactive, timely, 100% apologies for “tiny” screw-ups, even if not my fault(it (it alwaysalways takes two to tango) takes two to tango)

S = ƒ(AMR, NBS-SG)S = ƒ(AMR, NBS-SG)Acceptance of mutual responsibilities for all affairs, no blame-Acceptance of mutual responsibilities for all affairs, no blame-shifting, scape-goatingshifting, scape-goating

S = ƒ(APLSLFCT)S = ƒ(APLSLFCT)Awareness, perception of little snubs—and lightening fastAwareness, perception of little snubs—and lightening fastcorrection thereofcorrection thereof

S = ƒ(G)S = ƒ(G)GraceGrace

S = ƒ(GA)S = ƒ(GA)Grace toward adversaryGrace toward adversary

S = ƒ(GW)S = ƒ(GW)Grace toward the wounded in bureaucratic firefightsGrace toward the wounded in bureaucratic firefights

S = ƒ(PD)S = ƒ(PD)Purposeful decencyPurposeful decency

S = ƒ(TSPD, TSP-L1)S = ƒ(TSPD, TSP-L1)Time spent on promotion decisions, especially for 1st level managersTime spent on promotion decisions, especially for 1st level managers

S = ƒ(%“SS”, H-PD)S = ƒ(%“SS”, H-PD)% soft stuff involved in Hiring, Promotion decisions% soft stuff involved in Hiring, Promotion decisions

S = ƒ(TWA, P, NP)S = ƒ(TWA, P, NP)Time wandering around, purposeful, non-plannedTime wandering around, purposeful, non-planned

S = ƒ(SBS)S = ƒ(SBS)Slack built into ScheduleSlack built into Schedule

S= ƒ(TSHR)S= ƒ(TSHR)Time spent … Hurdle RemovingTime spent … Hurdle Removing

S = ƒ(%TM“TSS,” PM“TSS,” S = ƒ(%TM“TSS,” PM“TSS,” D“TD”“TSS”)D“TD”“TSS”)% of time, measured, on This Soft Stuff, purposeful management of this Soft Stuff, % of time, measured, on This Soft Stuff, purposeful management of this Soft Stuff, daily “to do” concerning “this Soft Stuff”daily “to do” concerning “this Soft Stuff”

S = ƒ(MB“TSS”MR)S = ƒ(MB“TSS”MR)Purposeful management of this Soft Stuff by people reporting to mePurposeful management of this Soft Stuff by people reporting to me

S = ƒ(EC, MMO)S = ƒ(EC, MMO)Emotional connection, mgt & maintenance ofEmotional connection, mgt & maintenance of

S = ƒ(IMDOP)S = ƒ(IMDOP)Investment in Mastery of detailed organization processesInvestment in Mastery of detailed organization processes

S = ƒ(H-TS)S = ƒ(H-TS)Time spent on HiringTime spent on Hiring

S = S = f(%TM“TSS,” f(%TM“TSS,”

PM“TSS,” PM“TSS,” D“TD”“TSS”)D“TD”“TSS”)

% of time, measured, on This % of time, measured, on This Soft StuffSoft Stuff, , purposeful management of this purposeful management of this Soft StuffSoft Stuff, , daily “to do” concerning “this daily “to do” concerning “this Soft StuffSoft Stuff””

#22#22

Notes from William Easterly’s:Notes from William Easterly’s:

The White Man’s The White Man’s Burden: Why the Burden: Why the

West’s Effort to Aid West’s Effort to Aid the Rest Have Done the Rest Have Done So Much Ill and so So Much Ill and so

Little GoodLittle Good

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

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

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

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

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

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

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

Easterly, maligned by many, is the arch-Easterly, maligned by many, is the arch-

enemy of the enemy of the Big PlanBig Plan [his [his

capital letters, not mine]capital letters, not mine]

sent from afar; and the vociferous fan of sent from afar; and the vociferous fan of practical activities of those he calls practical activities of those he calls

“Searchers”“Searchers” … who learn … who learn

the ins and outs of the culture, politics and the ins and outs of the culture, politics and local conditions “on the ground” in order to local conditions “on the ground” in order to use local levers and local players, and get use local levers and local players, and get

those 12-those 12-cent medicines to community members. cent medicines to community members.

Read on, “Planners” vs “Searchers” …Read on, “Planners” vs “Searchers” …

““In foreign aid, Planners announce good intentions but don’t In foreign aid, Planners announce good intentions but don’t

motivate anyone to carry them out;motivate anyone to carry them out; Searchers find thinSearchers find thinggs that s that work and work and gget some rewardet some reward.. Planners raise expectations but Planners raise expectations but

take no responsibility for meeting them;take no responsibility for meeting them; Searchers acceSearchers acceppt t resrespponsibilitonsibilityy for their actions for their actions;; Planners determine what to Planners determine what to

supplysupply; ; Searchers find out what is in demandSearchers find out what is in demand.. Planners Planners

apply global blueprints;apply global blueprints; Searchers adapt to local conditionsSearchers adapt to local conditions..

Planners at the top lack knowledge of the bottom;Planners at the top lack knowledge of the bottom; Searchers find Searchers find out what the realitout what the realityy is at the bottom is at the bottom.. Planners never hear Planners never hear

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

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

engineering problem that his answers will solve.engineering problem that his answers will solve. A Searcher A Searcher admits he doesn’t know the answers in advance; he admits he doesn’t know the answers in advance; he

believes that believes that ppovertovertyy is a com is a compplicated tanlicated tanggle of le of political, social, historical, institutional, and political, social, historical, institutional, and

technolotechnologgical factors; he hopes to find answers to ical factors; he hopes to find answers to individual individual pproblems onlroblems onlyy b byy trial and error trial and error

exexpperimentationerimentation.. A planner believes outsiders know enough to A planner believes outsiders know enough to

impose solutions;impose solutions; a Searcher believes only insiders have a Searcher believes only insiders have enouenouggh knowledh knowledgge to find solutions, and that most e to find solutions, and that most

solutions must be homesolutions must be homeggrownrown. …”. …”

Derived from the above and more, I have Derived from the above and more, I have extracted a series of “lessons” from the extracted a series of “lessons” from the Easterly book. These implementation lessons Easterly book. These implementation lessons are, in fact, universal:are, in fact, universal:

Lesson (#1 of sooooooo many): Lesson (#1 of sooooooo many): Show up! Show up! (On the ground, where the action—and (On the ground, where the action—and possible implementation—is.)possible implementation—is.)

Lesson: Lesson: Invest in ceaseless study of Invest in ceaseless study of conditions “on the ground”—social andconditions “on the ground”—social and political and historical and systemic.political and historical and systemic.

Lesson:Lesson: ListenListen to the “locals.”to the “locals.”Lesson:Lesson: HearHear the “locals.”the “locals.”

"Trust the development "Trust the development experts—all seven billion experts—all seven billion of them.”of them.” —headline, for an article by development —headline, for an article by development

guru William Easterly,guru William Easterly, Financial Times, Financial Times, 0529.080529.08,,

"The report of the World Bank Growth Commission, led "The report of the World Bank Growth Commission, led by Nobel laureate Michael Spence by Nobel laureate Michael Spence [former dean of the [former dean of the

Stanford biz school—tp],Stanford biz school—tp], was published last week. After two was published last week. After two years of work by the commission of 21 world leaders, years of work by the commission of 21 world leaders, an 11-member working group, 300 academic experts, an 11-member working group, 300 academic experts, 12 workshops, 13 consultations, and a budget of $4 12 workshops, 13 consultations, and a budget of $4

million, the experts' answer to the question of how to million, the experts' answer to the question of how to attain high growth was roughly: we do not know, but attain high growth was roughly: we do not know, but

trust experts to figure it out."trust experts to figure it out." —William Easterly,—William Easterly, Financial Times, 0529.08Financial Times, 0529.08

Lesson: Lesson: Talk to the “locals.”Talk to the “locals.”

Lesson: Lesson: Listen to the “locals.”Listen to the “locals.”Lesson: Lesson: Hear the “locals.”Hear the “locals.”



Lesson:Lesson: Listen to the “locals.” Listen to the “locals.”Lesson:Lesson: Hear to the “locals.” Hear to the “locals.”

Lesson:Lesson: Listen to the “locals.” Listen to the “locals.”Lesson:Lesson: Hear to the “locals.” Hear to the “locals.”

Lesson: Lesson: Respect the “locals.”Respect the “locals.”Lesson:Lesson: Empathize with the Empathize with the “locals.”“locals.”

Lesson: Lesson: Try to blend in, adopting local customs, showingTry to blend in, adopting local customs, showing deference were necessary—almost everywhere;deference were necessary—almost everywhere; and never interrupt the “big man” in front of hisand never interrupt the “big man” in front of his folk, even, or especially, if you think he is 180folk, even, or especially, if you think he is 180 degrees off.degrees off.Lesson:Lesson: Seek out the local leaders’ second cousins, etc,Seek out the local leaders’ second cousins, etc, to gain indirect assess overto gain indirect assess over their uncle twicetheir uncle twice removed! (Etc & etc.)removed! (Etc & etc.)Lesson:Lesson: Have a truly crappy office, and other Have a truly crappy office, and other un-trappings!un-trappings!Lesson: Lesson: Remember, you do not in fact have the answersRemember, you do not in fact have the answers despite your PhD with,despite your PhD with, naturally, honors, from naturally, honors, from thethe University of Chicago—where you were mentoredUniversity of Chicago—where you were mentored by not one, but two, Nobel Laureates in by not one, but two, Nobel Laureates in economics.economics.Lesson: Lesson: Regardless of the enormity of the problem,Regardless of the enormity of the problem, proceed by trial (manageableproceed by trial (manageable in size) and error,in size) and error, error, error. (Failure motto: “Do it right the firsterror, error. (Failure motto: “Do it right the first time!”time!” Success motto: “Do it right the 37th Success motto: “Do it right the 37th time!” time!” And hustle through thoseAnd hustle through those 37 tries—see the37 tries—see the next slide.)next slide.)

Lesson:Lesson: Have a Have a truly crappy truly crappy office, and office, and

otherother unun-trappings!-trappings!

Lesson: Lesson: The process of political-communityThe process of political-community engagement must also be approached asengagement must also be approached as a trial and error learning process.a trial and error learning process.Lesson: Lesson: Always alter the experiment to accommodateAlways alter the experiment to accommodate local needs—the act of apparent local local needs—the act of apparent local modificationmodification per se is critical, as every community leader, inper se is critical, as every community leader, in order for them to accept “ownership” andorder for them to accept “ownership” and demonstrate to their constituents that they are demonstrate to their constituents that they are inin charge, must feel as if they have directly andcharge, must feel as if they have directly and measurably influenced the experiment. measurably influenced the experiment. [See the next four [See the next four

slides.]slides.]

Lesson: Lesson: Growth (the experimental and expansion-Growth (the experimental and expansion- emulation process) must be emulation process) must be organicorganic, and , and proceedproceed at a measured pace—nudged, not hurried.at a measured pace—nudged, not hurried.Lesson: Lesson: Speed kills! (To a point.) By and large, theSpeed kills! (To a point.) By and large, the messiness and “inefficiency” of the local messiness and “inefficiency” of the local politicalpolitical process must be honored.process must be honored.

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

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

Champion = Champion = OneOne LineLine ofof CodeCode!!

NothNoth--inging is “scalable”! is “scalable”!

**

Nothing is “scalable”!*Nothing is “scalable”!*

**EverEveryy replication must replication must exude the exude the pperceercepptiontion of of uniuniqquenessueness—even if it —even if it

means a half-step means a half-step backwardsbackwards. . (“It wouldn’t (“It wouldn’t

have worked if we hadn’t done have worked if we hadn’t done it it ourour way.”) way.”)

Lesson: Lesson: Speed kills!Speed kills!Lesson: Lesson: Short-circuiting political Short-circuiting political process kills!process kills!Lesson: Lesson: Premature rollout kills!Premature rollout kills!Lesson: Lesson: Too much publicity-Too much publicity-visibilityvisibility kills!kills!Lesson: Lesson: Too much money kills!Too much money kills!Lesson: Lesson: Too much technology kills!Too much technology kills!

Lesson: Lesson: Outsiders, to be effective, must have genuineOutsiders, to be effective, must have genuine appreciation of and affection for the locals with appreciation of and affection for the locals with whomwhom and for whom they are working!and for whom they are working! Lesson: Lesson: Condescension kills most—said “locals” knowCondescension kills most—said “locals” know unimaginably more about life than well-intentionedunimaginably more about life than well-intentioned “ “do gooders,” young or even, alas, not so young.do gooders,” young or even, alas, not so young.Lesson: Lesson: Progress … MUST … be consistent with “localProgress … MUST … be consistent with “local politics on the ground” in order to raise the oddspolitics on the ground” in order to raise the odds of sustainability.of sustainability.Lesson: Lesson: You will never-ever “fix” “everything at once” You will never-ever “fix” “everything at once” or by the time you “finish”—in our Constitutional or by the time you “finish”—in our Constitutional Convention in 1787, George Washington only gotConvention in 1787, George Washington only got about 60% of what he wanted!about 60% of what he wanted!

Lesson: Lesson: Never forget the atmospherics, such as numerousNever forget the atmospherics, such as numerous celebrations for tiny milestones reached, showering praisecelebrations for tiny milestones reached, showering praise on the local leader and your local cohorts, while youon the local leader and your local cohorts, while you assiduously stand at the back of the crowd—etc.assiduously stand at the back of the crowd—etc.Lesson: Lesson: The experiment has failed until the systems and The experiment has failed until the systems and politicalpolitical rewards, often small, are in place, with Beta tests rewards, often small, are in place, with Beta tests completed, completed, to up the odds of repetition.to up the odds of repetition.Lesson: Lesson: Most of your on-the-ground staff must consist of Most of your on-the-ground staff must consist of respected locals—the de facto or de jure Chairman or CEOrespected locals—the de facto or de jure Chairman or CEO must be a local; you must be virtually invisible.must be a local; you must be virtually invisible.Lesson: Lesson: Spend enormous “pointless” social time with the local Spend enormous “pointless” social time with the local political leaders—in Gulf War I, Norm Schwarzkopf spent hispolitical leaders—in Gulf War I, Norm Schwarzkopf spent his evenings, nearly all of them, drinking tea until 2AM or 3AMevenings, nearly all of them, drinking tea until 2AM or 3AM with the Saudi crown prince; he called it his greatest with the Saudi crown prince; he called it his greatest contribution!contribution!

Lesson: Lesson: Keep your “start up” plan simple and short Keep your “start up” plan simple and short and and filled with question marks in order to allow othersfilled with question marks in order to allow others to have the last wordto have the last word.. (I once did the final draft of a(I once did the final draft of a proposal, making it as flawless as could be. I gave it to my boss,proposal, making it as flawless as could be. I gave it to my boss, pre Microsoft Word, and he proceeded to cut it up and tape the piecespre Microsoft Word, and he proceeded to cut it up and tape the pieces back together, and conspicuously cross out several paragraphs of myback together, and conspicuously cross out several paragraphs of my obviously and labored over brilliant prose that he had agreed to. “Tom,”obviously and labored over brilliant prose that he had agreed to. “Tom,” he said as I recall, “we want the rest of the committee [of important, or he said as I recall, “we want the rest of the committee [of important, or atat least least self-importantself-important folks] to feel as though they are participating and folks] to feel as though they are participating and that you and I are a naïve—not confront them with a beautiful plan thatthat you and I are a naïve—not confront them with a beautiful plan that shouts ‘Don’t you dare alter a word.’”)shouts ‘Don’t you dare alter a word.’”)

Lesson:Lesson: For projects involving children or health or education or For projects involving children or health or education or community development or sustainable small-businesscommunity development or sustainable small-business growth (most projects), women are by far the most growth (most projects), women are by far the most reliablereliable and most central and most indirectly powerful localand most central and most indirectly powerful local players in even the most chauvinist settings—theirplayers in even the most chauvinist settings—their characteristic process of “implementation by indirection”characteristic process of “implementation by indirection” means “life or death” to sustainable project success;means “life or death” to sustainable project success; moreover, the expanding concentric circles of women’smoreover, the expanding concentric circles of women’s traditional networking processes is by far the best way traditional networking processes is by far the best way toto “ “scale up”/expand a program. (Men should not even tryscale up”/expand a program. (Men should not even try to understand what is taking place. Among other things,to understand what is taking place. Among other things, this networking indirection-largely invisible process willthis networking indirection-largely invisible process will seemingly “take forever” by most men’s “action now,seemingly “take forever” by most men’s “action now, skip steps” S.O.P.—and then, from out of the blue, skip steps” S.O.P.—and then, from out of the blue, following an eternity of rambling discussions-on-top-of-following an eternity of rambling discussions-on-top-of- rambling-discussions, you will wake up one fine morningrambling-discussions, you will wake up one fine morning and discover that the thing is done that everything hasand discover that the thing is done that everything has fallen in place “overnight” and that ownership is nearlyfallen in place “overnight” and that ownership is nearly universal. Concomitant imperative; most of your (as anuniversal. Concomitant imperative; most of your (as an outsider) staff should be women, alas, most likely notoutsider) staff should be women, alas, most likely not visibly “in charge.”visibly “in charge.”

For projects involving children For projects involving children or health or education or or health or education or

community development or community development or sustainable small-businesssustainable small-business

growth (most projects), growth (most projects),

womenwomen are by far the are by far the

most reliablemost reliable and most central and most central and most indirectly powerful and most indirectly powerful locallocal players even in the most players even in the most

chauvinist settings. chauvinist settings.

Lesson:Lesson: For projects involving For projects involving children or health or education children or health or education or community development or or community development or

sustainable small-businesssustainable small-business growth (most projects), growth (most projects),




94%94%

Social Change, after William EasterlySocial Change, after William Easterly

1.1. Bottom upBottom up2.2. Pursue 100% participationPursue 100% participation3. MBWA3. MBWA4. Use the local infrastructure4. Use the local infrastructure5. Women must play a/the lead role—as leaders, 5. Women must play a/the lead role—as leaders,

perhaps indirectly, and as investment targetsperhaps indirectly, and as investment targets6. Accept “second best” solutions—optimal outcomes 6. Accept “second best” solutions—optimal outcomes

are self-defeatingare self-defeating7. Use $$$ and technology with caution7. Use $$$ and technology with caution8.8. Replication must always be localizedReplication must always be localized9.9. Try it! Try it!/4FTry it! Try it!/4F

Colonel/British Army/Colonel/British Army/2 Tours/Iraq/0428.08/2 Tours/Iraq/0428.08/Issues: Issues:

**Hardware first**Hardware first**Failure to use existing human**Failure to use existing human infrastructure infrastructure**Failure to master local politics**Failure to master local politics**Unwillingness to accept “2**Unwillingness to accept “2ndnd best” best” solutions solutions**Wedded to centrally prescribed**Wedded to centrally prescribed solutions-programs solutions-programs**Misguided training**Misguided training

““We behaved as if we were We behaved as if we were guests in their house. We guests in their house. We

treated them not as a treated them not as a defeated people, but as defeated people, but as

allies. Our success became allies. Our success became their success.”their success.” —“How One Soldier —“How One Soldier

Brought Democracy to Iraq: The Mayor of Ar Rutbah” Brought Democracy to Iraq: The Mayor of Ar Rutbah” (MAJ James Gavrilis/USA Special Forces)(MAJ James Gavrilis/USA Special Forces)

#22.1#22.1

Commentary on David O. Stewart’sCommentary on David O. Stewart’s

The Summer ofThe Summer of 1787: The Men1787: The Men Who InventedWho Invented

the Constitutionthe Constitution

Tom Peters/0409.08Tom Peters/0409.08

****** Show up!!!!!!!!!!!! Show up!!!!!!!!!!!!****** Keep showing up!! Keep showing up!!****** Control the process through indirect Control the process through indirect actions, like doing first drafts, writingactions, like doing first drafts, writing Minutes.Minutes.****** Remember the social graces—your Remember the social graces—your emotional “presentation of self” is moreemotional “presentation of self” is more important than even “all important”!!!important than even “all important”!!!*** *** Hang in! Tenacity-relentlessness rules!Hang in! Tenacity-relentlessness rules! (Wear the bastards down. No kidding, (Wear the bastards down. No kidding, this is a matchless “success tool.”)this is a matchless “success tool.”)*** *** There’s no such thing as a “dull meeting.”There’s no such thing as a “dull meeting.” (No kidding!) Every get together is an(No kidding!) Every get together is an opportunity to press your agenda, directlyopportunity to press your agenda, directly or indirectly, to perform a small favor withor indirectly, to perform a small favor with the expectation of “return on investment”the expectation of “return on investment” at some point in the future.at some point in the future.

*** *** Bite your tongue and listen, listen, listen—even toBite your tongue and listen, listen, listen—even to bores. Nothing wins support like effective bores. Nothing wins support like effective listening;listening; it’s the greatest gift you can give anyone!! (This it’s the greatest gift you can give anyone!! (This is is triply important when you are desperate to triply important when you are desperate to correctcorrect something someone has to say, even an “enemy” something someone has to say, even an “enemy” ofof your cause—attentive listening is a peerless “winyour cause—attentive listening is a peerless “win ’ ’em over” “strategic” “tool.”)em over” “strategic” “tool.”)****** “Sub-committees rule! It’s the little chances to “Sub-committees rule! It’s the little chances to become Master of Something and perform-become Master of Something and perform-influenceinfluence in a small group setting that lead to thein a small group setting that lead to the accumulation of power and the ability to control accumulation of power and the ability to control thethe flow in an area important to you.flow in an area important to you.*** *** Continually “illustrate” your ability to perform Continually “illustrate” your ability to perform wellwell at almost any task and build a towering at almost any task and build a towering reputationreputation for reliability.for reliability.

****** Cool off! No passion, no success! Too much Cool off! No passion, no success! Too much abrasivenessabrasiveness in pursuit of a cause that inflames you kills opportunity in pursuit of a cause that inflames you kills opportunity toto succeed like nothing else. (Folks love to put an abrasivesucceed like nothing else. (Folks love to put an abrasive person in his place, even if they agree with him.)person in his place, even if they agree with him.)****** Take a punch and keep on trucking. Losses are common Take a punch and keep on trucking. Losses are common—— live with ’em, take ’em with good grace, and thenlive with ’em, take ’em with good grace, and then persevere through out-persevering the other guy/s.persevere through out-persevering the other guy/s.(*** Speaking of “punch,” out-drinking the other guy sure(*** Speaking of “punch,” out-drinking the other guy sure worked in the summer of 1787. Reach your ownworked in the summer of 1787. Reach your own conclusions here …)conclusions here …)****** Grow up, accept life. Life, effectiveness is indeed about Grow up, accept life. Life, effectiveness is indeed about horse trading as often as not—and at times consortinghorse trading as often as not—and at times consorting with one’s enemies. (“The enemy of my enemy is mywith one’s enemies. (“The enemy of my enemy is my friend.” Keep your passion, stay above the waterline friend.” Keep your passion, stay above the waterline onon issues of deep principal—but accept, and embrace, theissues of deep principal—but accept, and embrace, the messy-as-hell “real world”!messy-as-hell “real world”!

****** Remember the black flies! “Little” Remember the black flies! “Little” distractions can change the whole distractions can change the whole game.game.****** Be ready with “Plan B.” Repeat: Nothing Be ready with “Plan B.” Repeat: Nothing in the real world follows the script.in the real world follows the script.****** Nobody, even George Washington, gets Nobody, even George Washington, gets more than about 60% of what they more than about 60% of what they want!want!****** Keep your word. A reputation for Keep your word. A reputation for integrityintegrity is priceless.is priceless.****** Don’t bite off more than you can chew, Don’t bite off more than you can chew, even when “can’t miss” opportunities even when “can’t miss” opportunities toto further your cause arise—overloading further your cause arise—overloading and and thence compromising effectiveness is athence compromising effectiveness is a big black eye.big black eye.****** Do something! “Small wins,” Do something! “Small wins,” accumulatedaccumulated regularly, build momentum! regularly, build momentum! ****** Work assiduously on your public Work assiduously on your public presentation skills! presentation skills!

Lesson of Lessons:Lesson of Lessons: Regardless of the Regardless of the topic—mundane or grand—topic—mundane or grand—it is attending to the same it is attending to the same

“mundane” “human” “timeless” “mundane” “human” “timeless” “basics” that shape the outcome “basics” that shape the outcome

and determine the degree of and determine the degree of implementation. The Masterimplementation. The Master of GTD* is the true Master of of GTD* is the true Master of

the Universe. the Universe.*GTD/Getting Things Done*GTD/Getting Things Done

#23#23

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

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

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

space of two or three space of two or three

hours he hours he nevernever

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

WexnerWexner

Franchise Lost!

TP: “How many of you [600] really

cravecrave a new Chevy?”

NYC/IIR/061205

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

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

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

#24#24

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

ng”ng”

Who buys “it” I: Who buys “it” I: Sunset for men! Sunset for men!

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

InternetInternet: Economic : Economic Growth Is Driven Growth Is Driven

by by WomenWomen.”.” —Headline,

Economist, April 15, 2006, Leader, page 14

““Women Women areare thethe

majority majority market”market”

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

““Since Since 19701970, , women have women have

held held twotwo out of out of every every threethree new new jobs created.”jobs created.” —FT,

10.03.2006

““ForForgget China, India and the et China, India and the Internet: Economic Growth Is Driven Internet: Economic Growth Is Driven

bbyy Women Women.”.” [Headline.] “Even today in the modern, developed world, surveys show that parents still prefer to have

a boy rather than a girl. One longstanding reason boys have been seen as a greater blessing has been that they are expected to become better economic providers for their

parents’ old age. Yet it is time for parents to think again. Girls Girls may now be a better investment.”may now be a better investment.” “Girls get better grades in

school than boys, and in most developed countries more women than men go to university. Women will thus be better equipped Women will thus be better equipped for the new jobs of the 21st century, in which brains count a lot for the new jobs of the 21st century, in which brains count a lot

more than brawnmore than brawn.. … And women are more likely to provide sound advice on investing their parents’ nest—e.g.: surveys

show that women consistently achieve higher financial returns than men do. Furthermore, the increase in female employment in the rich world has been the main driving force of growth in

the last couple of decades. Those women have contributed more Those women have contributed more to global GDP growth than have either new technology or theto global GDP growth than have either new technology or the

new giants, India and China.”new giants, India and China.” Source: EconomistEconomist, April 15, Leader, page 14

Continuing on page 73: ““A Guide to Womenomics: A Guide to Womenomics: The Future of the World EconomThe Future of the World Economyy Lies Lies

IncreasinIncreasinggllyy in Female Hands in Female Hands.”.” (Headline.) More stats: Around the globe since 1980, women have filled “two

new jobs for everyone taken by a man.” “Women are becoming more important in the global marketplace not just as workers, but also as consumers, entrepreneurs, managers and investors.” Re consumption, Goldman Sachs in Tokyo has Re consumption, Goldman Sachs in Tokyo has developed an index of 115 companies poised to benefit from developed an index of 115 companies poised to benefit from women’s increased purchasing power; over the past decade women’s increased purchasing power; over the past decade the value of shares in “Goldman’s basket has risen by 96%, the value of shares in “Goldman’s basket has risen by 96%, against the Tokyo stockmarket’s rise of 13%against the Tokyo stockmarket’s rise of 13%.”.” A couple of

final assertions: (1) It is now agreed that “the single best investment that can be made in the developing world” is educating girls. (2) Also,

surprisingly, nations with the highest female laborforce participation rates, such as Sweden and the U.S., have the highest fertility rates; and those with the lowest

participation rates, such as Italy and Germany, have the lowest fertility rates.

Source: EconomistEconomist,, April 15, page 73

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

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

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

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

of 13%of 13%.”.” —Economist, April 15

““The The most most significant variablesignificant variable

inin everyevery sales situation is sales situation is

thethe gendergender of the buyer, of the buyer, and more importantly, how and more importantly, how

the salesperson the salesperson communicates to the communicates to the

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

The Perfect Answer

Jill and Jack buy slacks in black…

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

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

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

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

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

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

Zieseniss de Thuin, Financial Times, 10.03.2006

“ ‘“ ‘Womenomics,’ Womenomics,’ the economy as the economy as thought out and thought out and practiced by a practiced by a

woman.”woman.” —Aude Zieseniss de Thuin, —Aude Zieseniss de Thuin,

Financial TimesFinancial Times, 10.03.2006, 10.03.2006

Big bank CEO, summarizing to his top-management team his Big bank CEO, summarizing to his top-management team his

notes from TP’s presentation:notes from TP’s presentation: “Tom’s made a great “Tom’s made a great point; he let us know that our customer base point; he let us know that our customer base will be different and more diverse in the will be different and more diverse in the future.”future.”

Tom:Tom: “With all due respect, that’s “With all due respect, that’s notnot what what Tom said. Though I am an unabashed Tom said. Though I am an unabashed supporter of ‘diversity’ in general, what I said supporter of ‘diversity’ in general, what I said

was was ‘‘SheShe is your is your

customer—and has been for a long time and customer—and has been for a long time and will be forever.’ And ‘she’ is notably will be forever.’ And ‘she’ is notably AWOLAWOL in in this this [meeting][meeting] room roomfull of senior ‘leaders.’full of senior ‘leaders.’ ””

Getting StartedGetting Started

Read inRead in (start with Fara Warner, (start with Fara Warner, The Power of the PurseThe Power of the Purse /cases!!) /cases!!)

Convene a 2-day “Private conference-Convene a 2-day “Private conference-retreat” for your top 5 managers and retreat” for your top 5 managers and

female Board members, on both female Board members, on both marketing to women and women’s marketing to women and women’s

leadershipleadership (two days, intense, senior women, mid-(two days, intense, senior women, mid-level women, designers/F/M), Creative ad folks, Internet level women, designers/F/M), Creative ad folks, Internet

marketers, academics incl. neuroscientists and marketers, academics incl. neuroscientists and psychologists, business owners, turn-around marketers psychologists, business owners, turn-around marketers

from Nike, Marti Barletta, Paco Underhill, Alan and from Nike, Marti Barletta, Paco Underhill, Alan and Barbara Pease, Judy Rosener, etc.)Barbara Pease, Judy Rosener, etc.)

#24.1#24.1

Selling to men:Selling to men: The The TRANSACTIONTRANSACTION Model Model

Selling to Women:Selling to Women: The The RELATIONALRELATIONAL Model Model

Source: Source: Selling to Men, Selling to WomenSelling to Men, Selling to Women, Jeffery Tobias Halter, Jeffery Tobias Halter

FemaleThinkFemaleThink/, Faith Popcorn & Liz Marigold/, Faith Popcorn & Liz Marigold

“Men and women don’t think the “Men and women don’t think the same way, don’t communicate same way, don’t communicate

the same way, don’t buy for the the same way, don’t buy for the same reasons.”same reasons.”

““He simply wants the transaction He simply wants the transaction to take place. She’s interested in to take place. She’s interested in

creating a relationship. Every creating a relationship. Every place women go, they make place women go, they make

connections.”connections.”

“Women don’t buy

brands. They They join themjoin them.”.”

EVEolution

2.62.6 vs.vs.

2121

““People powered”: People powered”: Age Age 3 3 daysdays, ,

baby girls baby girls 2X2X eye eye

contact. contact. Source: Martha Barletta, Source: Martha Barletta, Marketing to WomenMarketing to Women

““Women speak and hear a Women speak and hear a language of language of connectionconnection and and

intimacyintimacy,, and men speak and hear and men speak and hear a language of status and a language of status and

independence. Men communicate to independence. Men communicate to obtain obtain informationinformation, establish their , establish their statusstatus, and show , and show independenceindependence..

Women communicate to create Women communicate to create relationshipsrelationships, encourage , encourage

interactioninteraction, and exchange , and exchange feelingsfeelings.” .”

—Judy Rosener, America’s Competitive Secret

The “Two Solar System Factor”The “Two Solar System Factor”

““Have you noticed men and women handle conflict differently? Many men, Have you noticed men and women handle conflict differently? Many men, especially in a business setting, resolve conflict by escalating it. They take a especially in a business setting, resolve conflict by escalating it. They take a strong position n and argue it until one of the two parties gives in or submits strong position n and argue it until one of the two parties gives in or submits to the other. Many women resolve conflict by de-escalating. Rather than focus to the other. Many women resolve conflict by de-escalating. Rather than focus

on differences, they focus on common ground. Men try to differentiate on differences, they focus on common ground. Men try to differentiate themselves. Women look for points of similarity. Look at something as simple themselves. Women look for points of similarity. Look at something as simple as a conversation at a cocktail party. You have a group of guys and a group of as a conversation at a cocktail party. You have a group of guys and a group of

women who don’t know one another. The guys’ conversation may go women who don’t know one another. The guys’ conversation may go something like this: something like this: ‘Great weather today. I went out and played eighteen at ‘Great weather today. I went out and played eighteen at The Links.’ The Links.’ ‘It was a great day. I played thirty-six.’‘It was a great day. I played thirty-six.’ ‘Have you played the ‘Have you played the

Rivers course yet? Rivers course yet? I played there last weekend, expensive, but well worth it.’I played there last weekend, expensive, but well worth it.’ ‘Yeah, I play there all the time. It’s a fun course. But The Boulders puts it to ‘Yeah, I play there all the time. It’s a fun course. But The Boulders puts it to shame.’ shame.’ ‘I shot my best score ever at The Boulders—a seventy-eight.’‘I shot my best score ever at The Boulders—a seventy-eight.’ Men Men

respect hierarchy and establishing status. Now let’s look at a typical respect hierarchy and establishing status. Now let’s look at a typical conversation between two women who don’t know each other: conversation between two women who don’t know each other: ‘So, Samantha, ‘So, Samantha, do you have any kids?’ do you have any kids?’ ‘‘Yeah, a four-year-old, Zach, and Amy was born four Yeah, a four-year-old, Zach, and Amy was born four months ago.’months ago.’ ‘Four months ago? And you look terrific! Did you gain much ‘Four months ago? And you look terrific! Did you gain much weight during the pregnancy? I gained thirty pounds and still haven’t been weight during the pregnancy? I gained thirty pounds and still haven’t been

able to take it off.’ able to take it off.’ ‘I gained a lot of weight with Zach, so this time I signed up ‘I gained a lot of weight with Zach, so this time I signed up with a personal trainer at my gym.’with a personal trainer at my gym.’ ‘‘My best friend, Andrea, is pregnant—I’d My best friend, Andrea, is pregnant—I’d

love to tell her about this trainer, do you have her information?’love to tell her about this trainer, do you have her information?’Women seek common ground. Often women’s instinct is to help one another. Women seek common ground. Often women’s instinct is to help one another. Plus, they can often discuss what might seem like very personal information Plus, they can often discuss what might seem like very personal information

right away. … We suspect women may be quicker to trust because they rely on right away. … We suspect women may be quicker to trust because they rely on more senses to judge people.more senses to judge people.

Source: Michele Miller & Holly BuchananSource: Michele Miller & Holly Buchanan, The Soccer Mom Myth. , The Soccer Mom Myth. Today’s Female Consumer: Who She Really Is, Why She Really BuysToday’s Female Consumer: Who She Really Is, Why She Really Buys

P-l-e-a-s-e Read …

Fara WarnerFara Warner:: The Power of The Power of

the Pursethe Purse

“We simply had

stopped being

relevant to women.”

—Kay Napier, SVP Marketing (Fara Warner, The Power of the Purse, “From Minority to Majority: McDonald’s Discovers the

Woman Inside the Mom”)

Cases! Cases! Cases!Cases! Cases! Cases!McDonald’sMcDonald’s (“mom-centered” to “majority consumer”;

not via kids)

Home DepotHome Depot (“Do it [everything!] Herself”)

P&GP&G (more than “house cleaner”)

DeBeersDeBeers (“right-hand rings”/$4B)

AXA FinancialAXA FinancialKodakKodak (women = “emotional centers of the household”)

NikeNike (> jock endorsements; new def sports; majority consumer)

AvonAvonBratzBratz (young girls want “friends,” not a blond stereotype)

Source: Fara Warner/Fara Warner/The Power of the PurseThe Power of the Purse

“Mostly Moms”

““Women were either ignored Women were either ignored in favor of focusing on men—in favor of focusing on men—

generally considered the generally considered the industry’s most frequent industry’s most frequent

users and therefore its most users and therefore its most important consumers—or they important consumers—or they were cast in the role of moms were cast in the role of moms who were simply conduits to who were simply conduits to

their children.”their children.” —Fara Warner, The Power of

the Purse, “From Minority to Majority: McDonald’s Discovers the Woman Inside the Mom”

#24.2#24.2

““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

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

Period??!!*Period??!!*

Start:Start: 3 0f 14 3 0f 14

18 months later:18 months later: 10 of 10 of 1818 (“deep dip”!) (“deep dip”!)

*AIM/September 2007*AIM/September 2007

““Siemens Chief Says Siemens Chief Says Its Managers Are Too Its Managers Are Too German, White and German, White and Male”Male” —headline, —headline, Financial TimesFinancial Times, 0625.08, 0625.08

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??

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.”Women Women 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??

#24.2.1#24.2.1

For projects involving children For projects involving children or health or education or or health or education or

community development or community development or sustainable small-businesssustainable small-business

growth (most projects),growth (most projects),




94%94%

9494%% of loans to of loans to

……

womenwomen****MMicrolending; “Banker to the poor”; Grameen Bank; icrolending; “Banker to the poor”; Grameen Bank;

Muhammad Yunus; 2006 Nobel Peace Prize winnerMuhammad Yunus; 2006 Nobel Peace Prize winner

NOTE: Yunus is the father of NOTE: Yunus is the father of micro-lending.micro-lending. He did not set He did not set

out to provide loans to women. out to provide loans to women. But it soon became clear that But it soon became clear that men would often spend their men would often spend their loan on frivolous activities. loan on frivolous activities. Women, with their abiding Women, with their abiding

interest in family affairs, were interest in family affairs, were immediately seen as more immediately seen as more enterprising and far more enterprising and far more

reliable than men.reliable than men.

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

U.S. firms owned or controlled by Women:U.S. firms owned or controlled by Women: 10.6 10.6 millionmillion ( (48%48% of all firms) of all firms)

Growth rate of Women-owned firms vs all firms:Growth rate of Women-owned firms vs all firms: 3X3X

Rate of jobs created by Women-owned firms vs all Rate of jobs created by Women-owned firms vs all firms:firms: 2X2X

Ratio of total payroll of Women-owned firms vs total Ratio of total payroll of Women-owned firms vs total for Fortune 500 firms:for Fortune 500 firms: >1.0>1.0

Ratio of likelihood of Women-owned firms staying in Ratio of likelihood of Women-owned firms staying in business vs all firms:business vs all firms: >1.0>1.0

Growth rate of Women-owned companies with Growth rate of Women-owned companies with revenues of >$1,000,000 and >100 employees vs all revenues of >$1,000,000 and >100 employees vs all firms:firms: 2X2X

Source: Margaret Heffernan, How She Does It

Women-owned BizWomen-owned Biz

U.S. employees > U.S. employees > F500 employees F500 employees

worldwideworldwideSource: Martha Barletta, Source: Martha Barletta, Marketing to WomenMarketing to Women

#24.2.2#24.2.2

Women’s NeWomen’s Neggotiatinotiatingg Stren Strenggthsths

*Ability to put themselves in their *Ability to put themselves in their counterparties’ shoes counterparties’ shoes*Comprehensive, attentive and detailed*Comprehensive, attentive and detailed communication style communication style*Empathy that facilitates trust-building*Empathy that facilitates trust-building*Curious and attentive listening*Curious and attentive listening*Less competitive attitude*Less competitive attitude*Strong sense of fairness and ability to *Strong sense of fairness and ability to persuadepersuade*Proactive risk manager*Proactive risk manager*Collaborative decision-making*Collaborative decision-making

Source: Horacio Falcao, Cover story/May 2006, World Business, “Say It Like a Woman: Why the 21st-century negotiator will need the female touch”

““[Women] see power[Women] see power in terms of in terms of influence, influence,

not rank.”not rank.” ——FortuneFortune

““Guys want to put everybody inGuys want to put everybody in their hierarchical place. Like, their hierarchical place. Like, should I have more respect forshould I have more respect for

you, or are you somebody that’s you, or are you somebody that’s south of me?”south of me?” —Paul Biondi, Mercer Consultants—Paul Biondi, Mercer Consultants

[from [from It’s Not Business, It’s PersonalIt’s Not Business, It’s Personal, Ronna Lichtenberg], Ronna Lichtenberg]

Bob Reich’s women Bob Reich’s women

students:students: “No “No worries.”worries.”**

*Men: “Can’t do it. _____ outranks me.”*Men: “Can’t do it. _____ outranks me.”

Mrs Coach KMrs Coach K

“There is always an easy solution to

every human problem—neat,

plausible, and … wrong.” —H.L. Mencken:

#24.3#24.3

Who buys “it” II:Who buys “it” II: Sunrise for Sunrise for old folks! old folks!

2000-2010 Stats

18-44: 18-44: -1%-1%

55+: 55+: ++2121%%(55-64: (55-64: ++4747%%))

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““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

Average # of cars purchased per

household, “lifetime”: 1313Average # of cars bought per household after the “head of household” reaches

age 50: 77Source: Marti Barletta, PrimeTime Women

2020

$14,000,000,000,000$14,000,000,000,000--

$25,000,000,000,000 $25,000,000,000,000

NOTE: In the next 20 years NOTE: In the next 20 years between 14 and 25 trillion between 14 and 25 trillion

dollars of wealth will be passed dollars of wealth will be passed on to the current generation—a on to the current generation—a

number never matchednumber never matched in history. in history.

Median Household Net WorthMedian Household Net Worth

<35: $7K35-44: $44K45-54: $83K

55-64: $112K55-64: $112K65-69: $114K65-69: $114K70-74: $120K70-74: $120K

>74: $100KSource: U.S. Census

BoomerBucks!BoomerBucks!Boomer turns 50: every 7 seconds. Boomer turns 50: every 7 seconds. 2009: majority of 2009: majority of U.S. households headed by someone over 50.U.S. households headed by someone over 50. 2006- 2006-2016: U.S. population up 22.9 million; 22.1 million in 2016: U.S. population up 22.9 million; 22.1 million in over-50 group. over-50 group. 2006: 1 in 5 adults is F, over 50.2006: 1 in 5 adults is F, over 50.

Women between 50-70 who are single: 35%. Women between 50-70 who are single: 35%. Age 45-Age 45-54: highest average income, $59, 021 (national 54: highest average income, $59, 021 (national

average is $42,209).average is $42,209). FASTEST GROWING INCOME FASTEST GROWING INCOME CATEGORY: WOMEN, 55-64CATEGORY: WOMEN, 55-64 (4X men in same category). (4X men in same category). Women, age 60-64: 50% still in workforce.Women, age 60-64: 50% still in workforce. Highest Highest net worth: families, 55-64 ($182,000). net worth: families, 55-64 ($182,000). People over People over

50: 70% to 79% of all financial assets; 80% of all 50: 70% to 79% of all financial assets; 80% of all savings accounts; 62% of all large Wall Street asset savings accounts; 62% of all large Wall Street asset accounts; 66% of $$ invested in the stock market.accounts; 66% of $$ invested in the stock market. Age 50+: 29% of population, 40% of total consumer Age 50+: 29% of population, 40% of total consumer spending, 50% of discretionary spending. spending, 50% of discretionary spending. Next 2 Next 2

decades: decades: BOOMERS WILL INHERIT $14 TRILLION-$25 BOOMERS WILL INHERIT $14 TRILLION-$25 TRILLIONTRILLION (“largest intergenerational transfer of (“largest intergenerational transfer of

wealth in history”). wealth in history”).

—Marti Barletta, —Marti Barletta, PrimeTime WomenPrimeTime Women

50+50+$7T$7T wealth (70%)/ $2T$2T annual income

50%50% all discretionary spending

79%79% own homes

40M40M credit card users41% new cars/48% luxury cars

$610B healthcare spending/74% prescription drugs

5% of advertisin5% of advertisingg tar targgetsetsKen Dychtwald, Age Power: How the 21st

Century Will Be Ruled by the New Old

55-64 vs 25-34

E.g.: New cars & trucks: 20% more New cars & trucks: 20% more spending. Meals at full-service restaurants: spending. Meals at full-service restaurants:

+29%. Airfare: +38%. Sports equipment: +29%. Airfare: +38%. Sports equipment: +58%. Motorized recreational vehicles: +58%. Motorized recreational vehicles:

+103%. Wine: 113%. Maintenance, repairs +103%. Wine: 113%. Maintenance, repairs and home insurance: +127%. Vacation and home insurance: +127%. Vacation homes: +258%. Housekeeping & yard homes: +258%. Housekeeping & yard

services: +250% to +500%. services: +250% to +500%.

Source: Marti Barletta, PrimeTime Women

44-65: “New “New Customer Customer Majority”Majority” *

*45% larger than 18-43; 60% larger by 2010Source: Ageless Marketing, David Wolfe & Robert Snyder

““Baby-boomer Baby-boomer WomenWomen: The : The Sweetest of Sweetest of

Sweet Spots for Sweet Spots for Marketers”Marketers” —David Wolfe and

Robert Snyder, Ageless Marketing

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

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

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

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

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

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

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 . We are

the the fastest growingfastest growing, the , the biggestbiggest, the , the wealthiestwealthiest, the , the boldestboldest, the most (yes) , the most (yes) ambitiouambitious, the most s, the most

experimental & exploratoryexperimental & exploratory, the most , the most differentdifferent, the , the most most indulgentindulgent, the most , the most difficult &difficult & demandingdemanding, the , the

most most service & experience obsessedservice & experience obsessed, the most , the most vigorousvigorous, (the , (the leastleast vigorous,) the most vigorous,) the most health health

consciousconscious, the most , the most femalefemale, the most profoundly , the most profoundly important commercial market in the history of the important commercial market in the history of the

world—andworld—and we will be the we will be the Center of Center of yyour universe our universe for the next twentfor the next twentyy-five -five

yyearsears. We have arrived!. We have arrived!

““Sixty Is Sixty Is the New the New Thirty”Thirty”

—Cover/—Cover/AARPAARP

““EIGHTY EIGHTY IS THE IS THE NEW NEW

FIFTY”FIFTY”

—Headline, Newsweek, 0616.08—Headline, Newsweek, 0616.08

“Fifty-four years of age has been the highest cutoff point for any marketing initiative I’ve ever been involved in. Which is Which is pprettrettyy weird when weird when yyou consider aou consider agge 50 is rie 50 is rigght ht

about when about when ppeoeopple who have le who have worked all their lives start to worked all their lives start to have some monehave some moneyy to s to sppendend.”.”

—Marti Barletta, PrimeTime Women

“One particularly puzzling category of youth-obsession is the highly coveted target of men 18-34, and it’s always referred to as ‘highly

coveted category.’ Marketers have been distracted by men age 18-34 because they are getting harder to reach. So what? Who wants Who wants

to reach them?to reach them? Beyond fast food and beer, they don’t buy much of anything. … The

theory is that if you ‘get them while they’re

young, they’re yours for life.’ What What nonsensenonsense!”!”


““Marketers attempts at reaching those Marketers attempts at reaching those over 50 have been miserably over 50 have been miserably

unsuccessful.unsuccessful. No market’s No market’s motivations and needs motivations and needs

are so poorly are so poorly understoodunderstood.”.” ——Peter Francese, founding

publisher, American Demographics

PossessionPossession ExperiencesExperiences /“Desires for /“Desires for

thingsthings”/Young adulthood/to 38”/Young adulthood/to 38

CateredCatered Experiences Experiences/ “Desires to / “Desires to be be servedserved by others”/Middle by others”/Middle

adulthoodadulthood

BeinBeing Experiencesg Experiences/“Desires for /“Desires for transcending transcending experiencesexperiences”/Late ”/Late

adulthoodadulthood

Source: David Wolfe and Robert Ageless MarketingAgeless Marketing

Brand Loyalty: Brand Loyalty: Stable Stable oror

Unstable/Fickle?Unstable/Fickle?

Serial Monogamy: Serial Monogamy: A Personal OdysseyA Personal Odyssey

Tom Peters/0411.07Tom Peters/0411.07

Beer:Beer: National Boh to Bud to Anchor Steam to Zilch National Boh to Bud to Anchor Steam to ZilchCar:Car: Chevrolet (1942-1962) to misc to Subaru Chevrolet (1942-1962) to misc to SubaruBiz Clothes:Biz Clothes: Various warehouses to Brooks to Nordstrom to Milan Various warehouses to Brooks to Nordstrom to MilanBiz:Biz: Big (U.S. Navy, McKinsey) to Small Big (U.S. Navy, McKinsey) to Small (de facto self-employed)(de facto self-employed)Sports clothes:Sports clothes: Misc-cheap to Northface Misc-cheap to NorthfaceSpouse:Spouse: “Sexy broad” (wife #1) to Best friend/Brainy (+sexy) “Sexy broad” (wife #1) to Best friend/Brainy (+sexy)School:School: Cornell to Stanford to RISD (Go Nads!) Cornell to Stanford to RISD (Go Nads!)Pens:Pens: Cross to Bic Cross to BicFood:Food: Safeway to Whole Foods Safeway to Whole FoodsMusic:Music: Beatles to Queen Beatles to QueenHome Furnishings:Home Furnishings: With it to Comfortable With it to ComfortableHome:Home: SF Bay Area to West Tinmouth VT SF Bay Area to West Tinmouth VTFavorite sport:Favorite sport: Lacrosse-Crew to Speed Walking-Trekking-Rowing Lacrosse-Crew to Speed Walking-Trekking-RowingFavorite MLB, NFL:Favorite MLB, NFL: Orioles- Orioles-BaltimoreBaltimore Colts to A’s-Raiders (Warriors!)Colts to A’s-Raiders (Warriors!)Favorite magazine:Favorite magazine: Life Life to to WiredWiredFavorite media:Favorite media: Print-Radio to Web-Radio Print-Radio to Web-RadioFavorite airline:Favorite airline: TWA to American to Lufthansa TWA to American to LufthansaHome:Home: East to West East to WestVacations:Vacations: USA to New Zealand USA to New Zealand Price:Price: Cheap to Varied (Wal*Mart to Milan) Cheap to Varied (Wal*Mart to Milan)Hotel:Hotel: Ramada/Holiday Inns to Four Seasons/Leading Hotels Ramada/Holiday Inns to Four Seasons/Leading HotelsRestaurants:Restaurants: McDonald’s to Hole in the wall McDonald’s to Hole in the wall Stores:Stores: Misc/Big to Little shops Misc/Big to Little shopsLoyalty:Loyalty: Serial monogamy Serial monogamy (just as loyal now as then; “love ’em, then leave (just as loyal now as then; “love ’em, then leave ’em”)’em”)

““Older people have an image problem. As Older people have an image problem. As a culture, we’re conditioned toward youth. a culture, we’re conditioned toward youth.

… When we think of youth, we think … When we think of youth, we think ‘energetic and colorful;’ when we think of ‘energetic and colorful;’ when we think of

middle age or ‘mature,’ we think ‘tired middle age or ‘mature,’ we think ‘tired and washed out.’ and when we think of and washed out.’ and when we think of

‘old’ or ‘senior,’ we think either ‘old’ or ‘senior,’ we think either ‘exhausted and gray’ or, more likely, we ‘exhausted and gray’ or, more likely, we

just don’t think. … just don’t think. … The financial The financial numbers are absolutely inarguablenumbers are absolutely inarguable——the Mature Market has the moneythe Mature Market has the money..

Yet advertisers remain astonishingly Yet advertisers remain astonishingly indifferent to them. …”indifferent to them. …”


““The mature The mature market cannot be market cannot be

dismissed as dismissed as entrenched in its entrenched in its brand loyalties.”brand loyalties.”

—Carol Morgan & Doran Levy, —Carol Morgan & Doran Levy, Marketing to the Mindset Marketing to the Mindset of Boomers and Their Eldersof Boomers and Their Elders

““Advertisers pay more to reach the kid Advertisers pay more to reach the kid because they think that once someone hits because they think that once someone hits

middle age he’s too set in his ways to be middle age he’s too set in his ways to be

susceptible to advertising. … susceptible to advertising. … In fact, In fact, this notion of impressionable kids this notion of impressionable kids

and hidebound geezers is little and hidebound geezers is little more than a fairy tale, a Madison more than a fairy tale, a Madison

Avenue gloss on Hollywood’s cult Avenue gloss on Hollywood’s cult of youth.”of youth.”——James Surowiecki (James Surowiecki (The New The New

YorkerYorker/04.01.2002)/04.01.2002)

Women’s Trifecta+Women’s Trifecta+

*Buy/*Buy/allall *Wealth/ *Wealth/allall

*Lead/*Lead/ betterbetter +Eclipse of +Eclipse of males/males/whoopswhoops (Retire-old/Poorly educated-young)

Boomers’-Geezers’-Women’s Trifecta+Boomers’-Geezers’-Women’s Trifecta+

*Buy/*Buy/allall *Wealth/ *Wealth/allall

*time left/ *time left/ lotslots *Eclipse of males/*Eclipse of males/retireretire--diedie

Caroline Flint, Housing Minister, UK:Caroline Flint, Housing Minister, UK: “lifetime homes,” all “wheelchair “lifetime homes,” all “wheelchair friendly” by 2013, 16 features friendly” by 2013, 16 features including ground floor toilet, wide including ground floor toilet, wide stairways take stair-lift, gently sloping stairways take stair-lift, gently sloping approach to front door, low window approach to front door, low window sills, walls easy adaptation, doors and sills, walls easy adaptation, doors and hallways wide enough for wheelchair; hallways wide enough for wheelchair; applies to all public housing by 2011, applies to all public housing by 2011, 2010 standards for private sector if not 2010 standards for private sector if not prior voluntary complianceprior voluntary compliance

Source: Source: GuardianGuardian 0225.08 0225.08

EndEndPart 1.3Part 1.3

Part 1.3 Tom Peters’ EXCELLENCE. ALWAYS. NEW MASTER/21 August 2008

Documents

Transcript of Part 1.3 Tom Peters’ EXCELLENCE. ALWAYS. NEW MASTER/21 August 2008