Tom Peters’ Tom Peters’

EXCELLENCE. EXCELLENCE. ALWAYS.ALWAYS.TalentTalent..

Leadership.Leadership.The Talent 57/13 November 2008The Talent 57/13 November 2008

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

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

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

andand “Verdana”“Verdana”

people power:people power: The The

talent talent 5757

Context.Context.

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

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

This isThis is the the critical contextual point. Every organizational critical contextual point. Every organizational entity exists only to serve. To serve its members, who in turn entity exists only to serve. To serve its members, who in turn do something of use for others called customers, the do something of use for others called customers, the community, etc. This “model” applies equally to baseball community, etc. This “model” applies equally to baseball teams and accounting departments serving other internal teams and accounting departments serving other internal departments and restaurants and Girl Scout troops. In turn, departments and restaurants and Girl Scout troops. In turn, leaders’ only principal role is to leaders’ only principal role is to serve serve (provide growth (provide growth opportunities, etc.) those who are in turn being of service.opportunities, etc.) those who are in turn being of service.

Why in Why in the the World did World did youyou go to go to SiberiaSiberia??

Speech in Novosibirsk in the late Spring of 2006. The view Speech in Novosibirsk in the late Spring of 2006. The view from my Air Siberia plane as we approached.from my Air Siberia plane as we approached.

EnterpriseEnterprise* ** (*at its best):* ** (*at its best): An An emotionalemotional, , vitalvital, , innovativeinnovative, , jojoyyfulful, , creativecreative, , entreentreppreneurialreneurial endeavor endeavor that elicits maximum that elicits maximum

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

I was among the first (the first, probably) of the gurus to I was among the first (the first, probably) of the gurus to make this journey—and I felt an immense obligation to spell make this journey—and I felt an immense obligation to spell out the possibilities as I saw them. These words are meant to out the possibilities as I saw them. These words are meant to be taken be taken literallyliterally—how, in fact, could there be any other —how, in fact, could there be any other serious aspiration? serious aspiration?

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”no less than “Cathedrals” in which the full and in which the full and

awesome power of the awesome power of the ImaginationImagination

and Spirit and native and 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 “Cathedrals”“Cathedrals”

in which the full and in which the full and awesome power ofawesome power of

the Imagination and the Imagination and Spirit and native Spirit and native

Entrepreneurial flairEntrepreneurial flair of diverse individualsof diverse individuals

is unleashedis unleashed

I was flattered to be asked to keynote the first major I was flattered to be asked to keynote the first major conference celebrating Peter Drucker’s life work. It took conference celebrating Peter Drucker’s life work. It took place in Sydney, and was organized by the Australian place in Sydney, and was organized by the Australian Institute of Management. I fretted ceaselessly, or so it felt, Institute of Management. I fretted ceaselessly, or so it felt, for weeks. Drucker’s work was more, far more, than brilliant for weeks. Drucker’s work was more, far more, than brilliant insights. As a refugee from totalitarianism, he was insights. As a refugee from totalitarianism, he was interested in organizational arrangements that would interested in organizational arrangements that would contribute to the stability and progress of civilization. At any contribute to the stability and progress of civilization. At any rate, it “got me thinking.” And in a direction that was novel rate, it “got me thinking.” And in a direction that was novel for me. Though far more explanation is required, suffice it to for me. Though far more explanation is required, suffice it to

say that I am attaching as say that I am attaching as Appendix Appendix ONEONE

a subset of slides from the AIM event that capture my a subset of slides from the AIM event that capture my beliefs about the high potential of enterprises of all sorts. beliefs about the high potential of enterprises of all sorts. Yes, “cathedrals” dedicated to human development occurs/is Yes, “cathedrals” dedicated to human development occurs/is meant to occur which contagiously spreads to associated meant to occur which contagiously spreads to associated communities (customers, etc). This is obvious when it is your communities (customers, etc). This is obvious when it is your child’s fourth grade classroom, but holds equally to the child’s fourth grade classroom, but holds equally to the furniture maker’s shop in Pawlet, Vermont—or the logistics furniture maker’s shop in Pawlet, Vermont—or the logistics department in the factory down the road.department in the factory down the road.

"We all start out in life loving our fathers and mothers "We all start out in life loving our fathers and mothers above everything else in the world, but that does not close above everything else in the world, but that does not close the doors of love. That prepares us to love our wives and the doors of love. That prepares us to love our wives and husbands and children and friends and to cooperate with husbands and children and friends and to cooperate with and show respect to all worthy individuals with whom we and show respect to all worthy individuals with whom we come in contact or have an opportunity to reach in other come in contact or have an opportunity to reach in other ways. We must apply that to nations and to other ways. We must apply that to nations and to other businesses. businesses.

"We in IBM must not confine our thoughts just to IBM. We "We in IBM must not confine our thoughts just to IBM. We must extend our cooperation to all other businesses whether must extend our cooperation to all other businesses whether we do business with them or not. We are one cog in the we do business with them or not. We are one cog in the industrial wheel. industrial wheel.

"Then as citizens we must extend our respect to all worthy "Then as citizens we must extend our respect to all worthy people in all nations. We are moving along in troublesome people in all nations. We are moving along in troublesome times, but the love of these various things of which I have times, but the love of these various things of which I have spoken and of the people in whom we are interested is going spoken and of the people in whom we are interested is going to be the great force which will make us all appreciate the to be the great force which will make us all appreciate the spiritual values which constitute the only solid foundation on spiritual values which constitute the only solid foundation on which we can build." which we can build."

Thomas J. Watson, Sr. address to IBM Sales and Service Thomas J. Watson, Sr. address to IBM Sales and Service Class 525 and Customer Engineers Class 528, Class 525 and Customer Engineers Class 528, IBM Country Club, Endicott, NY, IBM Country Club, Endicott, NY, October 30, 1941October 30, 1941

My goal here is to get you to read this slowly and absorb its flavor. My goal here is to get you to read this slowly and absorb its flavor. Watson was the legendary leader who, principally through the Watson was the legendary leader who, principally through the

provision of provision of peerless and peerless and unprecedented service excellenceunprecedented service excellence (more than product), took IBM to Olympian and sustaining success in (more than product), took IBM to Olympian and sustaining success in the 60s through the 80s. The construction of the ideal IBM began the 60s through the 80s. The construction of the ideal IBM began decades before—and the encompassing, almost religious view of the decades before—and the encompassing, almost religious view of the firm is extraordinary—and, by the by, uttered just 38 days before firm is extraordinary—and, by the by, uttered just 38 days before Pearl Harbor. (Mr Watson was often criticized at the time, because, Pearl Harbor. (Mr Watson was often criticized at the time, because, even though IBM was relatively small, he had taken on international even though IBM was relatively small, he had taken on international markets with unusual vigor—including some that were quite markets with unusual vigor—including some that were quite unsavory.) Watson's two favorite words were “think” and unsavory.) Watson's two favorite words were “think” and “excellence.” IBM stood out from the herd in 1982, at the time of the “excellence.” IBM stood out from the herd in 1982, at the time of the publication of publication of In Search of ExcellenceIn Search of Excellence, as much or even more than GE , as much or even more than GE did 20 years later.)did 20 years later.)

(To offer a flavor of IBM’s practices at the time, a salesman was fired (To offer a flavor of IBM’s practices at the time, a salesman was fired if he was caught in any way criticizing a competitor’s product. On if he was caught in any way criticizing a competitor’s product. On the service side, Watson, in a small but symbolically important the service side, Watson, in a small but symbolically important gesture, was the first to insist that his field service people wear gesture, was the first to insist that his field service people wear ties.)ties.)

CauseCause (worthy of commitment)(worthy of commitment)

SpaceSpace (room for/encouragement(room for/encouragement

for initiative) for initiative)

DecencyDecency (respect, (respect,

humane)humane)

An effort to summarize. An effort to summarize.

CauseCause (worthy of commitment)(worthy of commitment)

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

adventures) adventures)

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

serviceservice (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

Cause.Cause.

Space.Space.

Decency.Decency.

Service.Service.Excellence.Excellence.

servant leadership. servant leadership.

““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 corporation is to be

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

(Boyd was the president of the Tom Peters (Boyd was the president of the Tom Peters Company for several years until his untimelyCompany for several years until his untimely

death, at age 51, in 2006) death, at age 51, in 2006)

BonusBonus: The: The

“5E“5Ess”” CredoCredo

Another, groping effort to summarize. Another, groping effort to summarize.

EEnthusiasm! nthusiasm!

EExecution!xecution!

EExperience!xperience!

EEmpathy! mpathy!

EExcellence!xcellence!

EEnthusiasm!nthusiasm! (Matchless and internally and (Matchless and internally and externally contagious and visible energy and vitality.)externally contagious and visible energy and vitality.)

EExecution!xecution! (A bulldog, unglamorous effort (A bulldog, unglamorous effort aimed at GTD/“getting things done” is the Holy Grail and aimed at GTD/“getting things done” is the Holy Grail and principal source of pride—the “strategy bit” is secondary principal source of pride—the “strategy bit” is secondary to the “do it” bit.)to the “do it” bit.)

EExperiencexperience!! (The organization delivers its (The organization delivers its product—including accounting services from an internal product—including accounting services from an internal department to its customer departments—with department to its customer departments—with panache.)panache.)

EEmpathy!mpathy! (Despite the abiding emphasis on (Despite the abiding emphasis on hustle and GTD, Character and Care in all we do is an hustle and GTD, Character and Care in all we do is an equal hallmark of the enterprise.)equal hallmark of the enterprise.)

EExcellence!xcellence! (Head-turning aspirations from (Head-turning aspirations from the world-class busboy to the world-class chef to the the world-class busboy to the world-class chef to the world-class parking valet.)world-class parking valet.)

Kevin Roberts’ CredoKevin Roberts’ Credo**

11. Ready. Fire! Aim.. Ready. Fire! Aim.2. If it ain’t broke ... Break it!2. If it ain’t broke ... Break it!3. Hire crazies.3. Hire crazies.4. Ask dumb questions.4. Ask dumb questions.5. Pursue failure.5. Pursue failure.6. Lead, follow ... or get out of the way!6. Lead, follow ... or get out of the way!7. Spread confusion.7. Spread confusion.8. Ditch your office.8. Ditch your office.9. Read odd stuff.9. Read odd stuff.

10. Avoid moderationAvoid moderation!!*Roberts is the CEO of Saatchi & Saatchi Worldwide*Roberts is the CEO of Saatchi & Saatchi Worldwide

The greatest dangerThe greatest dangerfor most of usfor most of us

is not that our aim isis not that our aim istoo hightoo high

and we miss it,and we miss it,but that it isbut that it is

too lowtoo lowand we reach it.and we reach it.

Michelangelo

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

and well preserved piece, but to skid across the line

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

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

(Cycle magazine 02.1982)

11.. peoplepeople!!

PeoplePeople!!

peoplepeople!!

PeoplePeople!!

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

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

When it comes to Leadership Excellence, the tools may be When it comes to Leadership Excellence, the tools may be different, but the Principles and Practices are decidedly different, but the Principles and Practices are decidedly timeless. (Period.)timeless. (Period.)

““Leaders Leaders

‘‘dodo’’ people. people.

Period.”Period.” —Anon.

TP: TP: “How to flush

$500,000 down

the toilet in one easy

lesson!!”

I use a local example from, alas, 7-11. A big hunk of change I use a local example from, alas, 7-11. A big hunk of change was spent on physical upgrading at a store near me, but it was spent on physical upgrading at a store near me, but it was indeed “pissed away.” The store looked much better but was indeed “pissed away.” The store looked much better but the staff attitude remained, well, awful. the staff attitude remained, well, awful.

< CAPEX< CAPEX> People!> People!

Attitude beats capital improvements—spend the bucks on Attitude beats capital improvements—spend the bucks on the people, not (or more than) the plywood. the people, not (or more than) the plywood.

Review your budget upon completion (the point at which Review your budget upon completion (the point at which you momentarily lock it down). Having given it your very you momentarily lock it down). Having given it your very best shot, immediately cut the capital budget by 15%--and best shot, immediately cut the capital budget by 15%--and put the entire sum into people programs.put the entire sum into people programs.

Container store: Container store:

2x2x training$$ training$$

$$

Faced with the current crisis, the Container Store doubled, Faced with the current crisis, the Container Store doubled, rather than cut, as most would do, the training budget for rather than cut, as most would do, the training budget for front line employees. The CEO said that now, more than ever, front line employees. The CEO said that now, more than ever, the employees need to induce remaining customers to the employees need to induce remaining customers to purchase! purchase!

22.. The The “Customer” “Customer” is “Job #1”!is “Job #1”!

And that principal And that principal customer is …customer is …

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

employees like employees like customers.”customers.” —Herb Kelleher, —Herb Kelleher,

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

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

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

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

The 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)

Consistent with the idea that underscoring Brand Consistent with the idea that underscoring Brand Inside is the best way to keep the ocean deep & blue, Inside is the best way to keep the ocean deep & blue, the Sole Secret (he says) of Southwest Airlines founder the Sole Secret (he says) of Southwest Airlines founder Herb Kelleher is putting his people First—making them Herb Kelleher is putting his people First—making them his principal customers. The likes of Dave Liniger his principal customers. The likes of Dave Liniger (RE/MAX founder) and Hal Rosenbluth (superstar boss (RE/MAX founder) and Hal Rosenbluth (superstar boss of travel giant Rosenbluth International) spout and live of travel giant Rosenbluth International) spout and live this same idea, using practically the same words—e.g., this same idea, using practically the same words—e.g., Hal’s book Hal’s book Putting the Customer Second. Putting the Customer Second.

33.. “Soft” “Soft” Is “Hard.”Is “Hard.”

MBWMBWAA

““Managing By Wandering Around,” the HP credo that Bob Managing By Wandering Around,” the HP credo that Bob Waterman came upon in 1978. Its literal and metaphorical Waterman came upon in 1978. Its literal and metaphorical meaning came to epitomize what we learned in our research meaning came to epitomize what we learned in our research and then tried to convey in and then tried to convey in In Search of ExcellenceIn Search of Excellence. .

Never forget the Eternal Basics!Never forget the Eternal Basics!Stay in constant touch with reality—and the people who do Stay in constant touch with reality—and the people who do the work.the work.

An explication of this “obvious” idea, so often honored in the An explication of this “obvious” idea, so often honored in the

breach, is offered at breach, is offered at Appendix Appendix TWOTWO. .

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

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

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

takes a look.”takes a look.”

A bank CEO (mid-size bank) shared this insight with me 20 A bank CEO (mid-size bank) shared this insight with me 20 years ago. A failure to practice this “obvious” “basic” is , in years ago. A failure to practice this “obvious” “basic” is , in the end, at the heart of the subprime mess—and global the end, at the heart of the subprime mess—and global financial meltdown, circa 2008.financial meltdown, circa 2008.

Excellence1982: The Bedrock “Eight Basics”Excellence1982: The Bedrock “Eight Basics”

1. A Bias for 1. A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. Autonomy and Entrepreneurship3. Autonomy and Entrepreneurship4. Productivity Through 4. Productivity Through PeoPeopplele5. 5. Hands OnHands On, Value-Driven, Value-Driven6. Stick to the Knitting6. Stick to the Knitting7. Simple Form, Lean Staff7. Simple Form, Lean Staff8. Simultaneous Loose-Tight8. Simultaneous Loose-Tight Properties” Properties”

The heart of The heart of In Search of Excellence. In Search of Excellence.

““Breakthrough” 82*Breakthrough” 82*

People! People! CustomersCustomers

! ! Action! Action! Values! Values!

**In Search of ExcellenceIn Search of Excellence

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

““They (McKinsey, our employer, and the B-school hard-asses) They (McKinsey, our employer, and the B-school hard-asses) beat “us” (Bob Waterman and I) up over this contrarian beat “us” (Bob Waterman and I) up over this contrarian assertion. We stood our ground. assertion. We stood our ground.

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

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

relationships)relationships)

No: People.No: People.No: Product.No: Product.No: Value to customer.No: Value to customer.Yes: Dilution, otherYes: Dilution, other control and share-control and share- owning issues.owning issues.Yes: Scale-as-power.Yes: Scale-as-power.Yes: Market share.Yes: Market share.

““Them”: At a luncheon that included a huge share of ______’s Them”: At a luncheon that included a huge share of ______’s (country) business bosses, all the talk was about financial (country) business bosses, all the talk was about financial manipulations and getting’ bigger. Such trivia as the Product manipulations and getting’ bigger. Such trivia as the Product itself was AWOL.itself was AWOL.

Yes: People.Yes: People.Yes: Product.Yes: Product.Yes: Value to Yes: Value to customer.customer.No: Dilution, otherNo: Dilution, other control and share-control and share- owning issues.owning issues.No: Scale-as-power.No: Scale-as-power.No: Market share.No: Market share.

My life’s work—which started when the Japanese were My life’s work—which started when the Japanese were wumping the Americans in the auto business with “nothing wumping the Americans in the auto business with “nothing other than” better Quality.other than” better Quality.

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

Limited Brands founder Les Wexner, years ago, sat next to Limited Brands founder Les Wexner, years ago, sat next to Henry Ford (the second) at a White House dinner. He said he, Henry Ford (the second) at a White House dinner. He said he, just an Ohio merchant, was intimidated by Ford’s non-stop just an Ohio merchant, was intimidated by Ford’s non-stop tales of visits with Kings and Prime Ministers. But later it tales of visits with Kings and Prime Ministers. But later it occurred …occurred …

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

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

“To me business isn’t To me business isn’t about wearing suits or about wearing suits or pleasing stockholders.pleasing stockholders. It’s about being true to It’s about being true to yourself, your ideas and yourself, your ideas and

focusing on the focusing on the essentialsessentials.”.” —Richard Branson

44.. “Brand “Brand Inside” Inside” Rules!Rules!

InternalInternal organizational organizational

excellenceexcellence* *** ** = = Deepest “Blue Deepest “Blue

Ocean”Ocean”

““Blue ocean” from the popular book, Blue ocean” from the popular book, Blue Ocean Strategy.Blue Ocean Strategy.

**A “Blue ocean” is by A “Blue ocean” is by definition very profitable … definition very profitable … and will be and will be quicklyquickly copiedcopied. .

““sustainablesustainable blueblue” (Internal ” (Internal organizational excellence) is organizational excellence) is

farfar more more difficultdifficult to copy. to copy.

****Internal Internal organizational organizational excellence = excellence =

““BrandBrand insideinside””

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

““Brand Inside,” the internal strength of our enterprise, Brand Inside,” the internal strength of our enterprise, ultimately drives “Brand Outside,” the projection of that ultimately drives “Brand Outside,” the projection of that inner strength to the marketplace. inner strength to the marketplace.

What do I think makes the world turn—with sustaining What do I think makes the world turn—with sustaining Excellence? A good strategy—or Walkabout? I try to answer Excellence? A good strategy—or Walkabout? I try to answer

that question at … that question at … Appendix ThreeAppendix Three..

55.. P.O.T./ P.O.T./ Pursuit Of Pursuit Of Talent = Talent =

OBSESSION.OBSESSION.

““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, Organizing Genius

PARC’s Bob Taylor, as seen by one of

his admirers*: “Connoisseur “Connoisseur of Talent”of Talent”

*Taylor was founding boss of Xerox’s fabled Palo Alto Research Center; he was said to be a genius at attracting brilliant people—not automatic

in the early days when Silicon Valley was a puny youth. T

66.. The “Find it” The “Find it” obsession: Biz obsession: Biz

“Strategic”“Strategic”

Priority Priority #1#1 ?!. ?!.

Consider it, and the implications: Consider it, and the implications:

#1#1

““Busy Executives Busy Executives Fail To Give Fail To Give Recruiting Recruiting

Attention It Attention It Deserves”Deserves”

—Headline, —Headline, WSJWSJ, 1121.05, 1121.05

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

asasppect of businessect of business and yet remains and yet remains

woefully woefully misunderstood.”misunderstood.”

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

Geoff Smart and Randy StreetGeoff Smart and Randy Street

““Development can help great Development can help great

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

spend, I’d sspend, I’d sppend 70 end 70 cents cents ggettinettingg the the

ririgght ht pperson in the erson in the doordoor.”.” ——Paul Russell, Director, Leadership &Paul Russell, Director, Leadership &

Development, Google Development, Google

Who?Who?

——The screening interviewThe screening interview——The “Topgrading The “Topgrading Interview”Interview” (story and patterns)(story and patterns)——Focused interviewFocused interview——Reference interview*Reference interview*

*Detailed rituals, goals, follow-up*Detailed rituals, goals, follow-up

Source: Source: Who: The A Method for Hiring, Who: The A Method for Hiring, Geoff Smart and Randy StreetGeoff Smart and Randy Street

The book The book WhoWho is far from perfect, but it provides a is far from perfect, but it provides a systematic framework for hiring. And implies that we can systematic framework for hiring. And implies that we can think as systematically about the topic as we would about think as systematically about the topic as we would about concocting, say, an inventory system. We may currently concocting, say, an inventory system. We may currently spend “a lot of time” on recruiting, but the authors suggest, spend “a lot of time” on recruiting, but the authors suggest, with a dumptruck load of corroborating evidence, that the with a dumptruck load of corroborating evidence, that the process is rarely exactingly thought out.process is rarely exactingly thought out.

““The most The most important decisions important decisions

businesspeople businesspeople make are not make are not

‘what’ decisions ‘what’ decisions but ‘who’ but ‘who’

decisions.” decisions.” —Jim Collins, —Jim Collins, Good to GreatGood to Great

CCtataOO*

*Chief talent acquisitiontalent acquisition Officer

Yes, damn it, a “C-level” job, reporting Yes, damn it, a “C-level” job, reporting directly to the CEOdirectly to the CEO, solely devoted to recruiting! , solely devoted to recruiting! (Do it or be labeled by me as a fool!) (This is not a job or (Do it or be labeled by me as a fool!) (This is not a job or department that is subject—department that is subject—everever—to outsourcing.)—to outsourcing.)

77.. Focus on the Focus on the #1#1 Motivational Motivational

Discriminator: Discriminator: Selection (& Selection (&

Training) of the First Training) of the First Line Supervisor!Line Supervisor!

#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: What the World’s Greatest Managers Do Differentlythe Rules: What the World’s Greatest Managers Do Differently

Yes, Sure, you worry about the Yes, Sure, you worry about the First Line First Line SupervisorSupervisor job. But is it a job. But is it a Strategic Strategic

Obsession? (I doubt it. I Obsession? (I doubt it. I knowknow it.) it.)

The “Big Three” TransitionsThe “Big Three” Transitions

MarriageMarriageParenthoodParenthood

11stst Line Supervisor Line Supervisor**

*Accomplishment *Accomplishment through othersthrough others

88.. “Legacy” “Legacy”

= 10!= 10!

2/year 2/year = =

legacy.legacy.

Your legacy, almost in full (?!), flows from the, on average, Your legacy, almost in full (?!), flows from the, on average, two annual promotions you will make. Those ten people, in two annual promotions you will make. Those ten people, in the course of a five-year assignment, will be your real mark the course of a five-year assignment, will be your real mark on the enterprise. I learned this years ago from Bill Creech, on the enterprise. I learned this years ago from Bill Creech, an Air Force 4-star general. The cadre of Generals he an Air Force 4-star general. The cadre of Generals he developed reshaped the USAF in the decade after he retired.developed reshaped the USAF in the decade after he retired.

Ask YourAsk Your Calendar: Calendar: Hiring-1 Hiring-1stst

Line Supervisor Line Supervisor promo-Promotionpromo-Promotion

decisions in decisions in GeneralGeneral**

*Calendars do *Calendars do notnot lie! lie!

The The Big ThreeBig Three. The epicenter of . The epicenter of

the organization’s the organization’s strategicstrategic accomplishment. (Thought in accomplishment. (Thought in most places as “important”—but not as most places as “important”—but not as “paramount to “paramount to success.”success.”))

99.. Talent Talent “Excellence” in “Excellence” in Every Part of Every Part of

Every Every Organization.Organization.

#1/100#1/100

““Best Companies toBest Companies to

Work for” Work for”//20052005

WegmansWegmans

**20082008: 3 of Top 5 retail: Wegmans,: 3 of Top 5 retail: Wegmans, Container Store, Whole Foods Container Store, Whole Foods

When one thinks of “best companies to work for,” one’s When one thinks of “best companies to work for,” one’s thoughts instinctively turn to Genentech or Apple or Google thoughts instinctively turn to Genentech or Apple or Google or Johns Hopkins or GE. Not a “mere retailer”—and a grocer or Johns Hopkins or GE. Not a “mere retailer”—and a grocer at that. Yet the regional (HQ in Rochester NY) grocer at that. Yet the regional (HQ in Rochester NY) grocer Wegmans topped the list in ’05, and remains, along with two Wegmans topped the list in ’05, and remains, along with two other mere retailers in mundane industries, in the Top Five other mere retailers in mundane industries, in the Top Five this year. Yes, a grocery shop can be tops!! Damn it!! (So this year. Yes, a grocery shop can be tops!! Damn it!! (So what’s your damned excuse?) what’s your damned excuse?)

1010.. Talent Talent “Excellence” “Excellence” Stretches Far Stretches Far Beyond Our Beyond Our

Borders.Borders.

We We areare the the companycompany we keepwe keep

Obvious. But underestimated by a mile when it comes to its Obvious. But underestimated by a mile when it comes to its power at shaping behavior. We are what we eat. We are the power at shaping behavior. We are what we eat. We are the friends we make. (Research, for instance, now shows that friends we make. (Research, for instance, now shows that the friend cohort far outstrips parental actions in terms of the friend cohort far outstrips parental actions in terms of influence on a child’s behavior. I’ll go so far as to say that influence on a child’s behavior. I’ll go so far as to say that the “who we hang out with” is the most powerful force in the “who we hang out with” is the most powerful force in inducing or suppressing innovation. In short, hang out with inducing or suppressing innovation. In short, hang out with interesting folks—and become more interesting. Hang out interesting folks—and become more interesting. Hang out with dullards or “same-sames”—and become more dull or with dullards or “same-sames”—and become more dull or stay where you are.stay where you are.

Measure “Strangeness”/Portfolio QualityMeasure “Strangeness”/Portfolio Quality

StaffStaffConsultantsConsultants

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

Innovation Alliance PartnersInnovation Alliance PartnersCustomersCustomers

Competitors Competitors (who we “benchmark” against)(who we “benchmark” against)

Strategic Initiatives Strategic Initiatives Product Portfolio Product Portfolio (LineEx v. Leap)(LineEx v. Leap)

IS/IT ProjectsIS/IT ProjectsHQ LocationHQ LocationLunch MatesLunch Mates

LanguageLanguageBoardBoard

In short, the “who we hang out with” idea applies to In short, the “who we hang out with” idea applies to everything everything we do. And: the Degree of Strangeness in our we do. And: the Degree of Strangeness in our various portfolios (customers, vendors, board members, etc) various portfolios (customers, vendors, board members, etc) should be measured.should be measured.

The “Hang Out Axiom”:The “Hang Out Axiom”: At its core, At its core, evereveryy (!!!) (!!!)

relationship-partnership relationship-partnership decision (employee, decision (employee,

vendor, customer, etc)vendor, customer, etc) is a is a stratestrateggicic decision decision

about: about:

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

1111.. Expand the Expand the definition of “our” definition of “our” talent pool: Master talent pool: Master “Crowd-sourcing,” “Crowd-sourcing,”

“Wikiworld”!“Wikiworld”!

The newfound power of the crowd cannot be overestimated—The newfound power of the crowd cannot be overestimated—e.g. it just determined the outcome of the presidential e.g. it just determined the outcome of the presidential elections in the USA. Make no mistake, “Crowds” are part, elections in the USA. Make no mistake, “Crowds” are part, and a big part, of our Talent Base-Extended Family.and a big part, of our Talent Base-Extended Family.

““There’s a fundamental There’s a fundamental shift in power happening. shift in power happening. Everywhere, people are Everywhere, people are getting together and, getting together and,

using the Internet, using the Internet, disrupting whatever disrupting whatever

activities they’re activities they’re involved in.”involved in.” —Pierre Omidyar, founder, —Pierre Omidyar, founder,

eBayeBay

““Technology massively multiplies soft power—particularly Technology massively multiplies soft power—particularly video technology, and particularly in the hands of non-state video technology, and particularly in the hands of non-state actors. … The power and distinction of a government’s voice actors. … The power and distinction of a government’s voice

is lost in the competing chatter, and in some ways it becomes is lost in the competing chatter, and in some ways it becomes the least compelling simply because it’s the least novel. It’s the least compelling simply because it’s the least novel. It’s

not just words competing against words. Images are now not just words competing against words. Images are now competing against images. People are visual creatures, and competing against images. People are visual creatures, and they tend to respond to videos and pictures on a much less they tend to respond to videos and pictures on a much less

rational and much more visceral level. …rational and much more visceral level. … YouTube YouTube (and whatever follows it) (and whatever follows it) will soon will soon have have ggreater reater gglobal influence over lobal influence over

narratives about international narratives about international events events (if it doesn’t already) (if it doesn’t already) than than

ananyy ggovernment information overnment information source could hosource could hoppe to havee to have.”.” ——Foreign Foreign

PolicyPolicy, Nov-Dec 2008, Nov-Dec 2008

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

Companies offering Companies offering work to online work to online

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

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

WikinomicsWikinomicsWikiWorldWikiWorld

Weapons of Mass collaborationWeapons of Mass collaborationCrowdSourcingCrowdSourcing

smart mobssmart mobsLinuxLinux

Human genome projectHuman genome projectInnoCentiveInnoCentive

YouTubeYouTubeSecond LifeSecond LifeWikipediaWikipediaMyspaceMyspace

Wikinomics:Wikinomics: How Mass How Mass

Collaboration Collaboration Changes Changes

EverythingEverything

——Don Tapscott & Anthony WilliamsDon Tapscott & Anthony Williams

A New “C-Level?A New “C-Level?

C C WWww

O*O**Chief *Chief WikiWorldWikiWorld Officer Officer

The “boss” of our Wikiworld activities is another (very) The “boss” of our Wikiworld activities is another (very) (senior) member of our Talent Team. (senior) member of our Talent Team.

1212.. Stock up on Stock up on “Technofreaks”“Technofreaks”

!!

Issue #1: To get the Issue #1: To get the best you need a best you need a

critical mass—and a critical mass—and a rep as a first-rate rep as a first-rate

Playground for Top Playground for Top Techies. Techies.

1313.. Talent Talent Masters Focus on Masters Focus on

Talent’s Talent’s Intangibles.Intangibles.

EMPHASIZEMPHASIZE THE E THE “SOFT “SOFT

SKILLS.”SKILLS.”

A Few Lessons from the Arts

Each hired and developed and evaluated in unique waysEach hired and developed and evaluated in unique ways (23 contributors = 23 unique contributions = 23 pathways =

23 personalities = 23 sets of motivators)

Attitude/Enthusiasm/Energy paramountAttitude/Enthusiasm/Energy paramountRe-lent-less!Re-lent-less!

“Practice is cool”“Practice is cool” (G Leonard/Mastery)

Team Team and and individual individual Aspire to Aspire to EXCELLENCE EXCELLENCE = Obvious= Obvious

Ex-e-cu-tionEx-e-cu-tionTalent = Brand = DuhTalent = Brand = Duh“The Project” rules“The Project” rulesEmotional languageEmotional language

Bit players. No.Bit players. No.B.I.WB.I.W. (everything)

Delta events = Delta rostersDelta events = Delta rosters (incl leader/s)

Think this is a strange idea? It’s an automatic in the arts, Think this is a strange idea? It’s an automatic in the arts, sports, etc.sports, etc.

14.14. Hire Hire enthusiasmenthusiasm

!!

The point of “all this” is making the implicit explicit. The point of “all this” is making the implicit explicit. Enthusiasm? We know it when we see it—and know that it Enthusiasm? We know it when we see it—and know that it

might well be the might well be the #1#1 employability factor. So let’s employability factor. So let’s

formalize it—put it atop the “must have” traits list. formalize it—put it atop the “must have” traits list. (Incidentally, it seems obvious to me that enthusiasts of the (Incidentally, it seems obvious to me that enthusiasts of the sort we want are enthusiastic about sort we want are enthusiastic about everythingeverything—they can’t —they can’t help themselves.)help themselves.)

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

enthusiasm.”enthusiasm.”

—Ben Zander

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

—Samuel Taylor Coleridge

“Enthusiasm, Enthusiasm, the ultimate the ultimate

virus.”virus.”

Charles Handy on the “Alchemists”:Charles Handy on the “Alchemists”:

““PassionPassion was what was what drove these people, drove these people,

ppassionassion for their for their

product, product, ppassionassion for for their cause.their cause. If you care enough, you will find out If you care enough, you will find out

what you need to know. Or you will experiment and not worry if what you need to know. Or you will experiment and not worry if

the experiment goes wrong.the experiment goes wrong. PassionPassion as the as the

secret to learning is an odd secret to propose, but I believe that it secret to learning is an odd secret to propose, but I believe that it

works at all levels and at all ages. Sadly,works at all levels and at all ages. Sadly, ppassionassion is not ais not a

word often heard in the elephant organizations, nor in word often heard in the elephant organizations, nor in schools, where it can seem disruptive.”schools, where it can seem disruptive.”

1515.. Hire Hire for _____!for _____!

TimeTime had a cover story on Nelson Mandela on the occasion of had a cover story on Nelson Mandela on the occasion of his 90his 90thth birthday. At the end they extracted his top birthday. At the end they extracted his top leadership traits. On this short list, one of them was his … leadership traits. On this short list, one of them was his …

smile! Hooray! A smile! Hooray! A Great SmileGreat Smile can move can move

mountains, disarm adversaries, etc.—etc. (Hiring the Smilers mountains, disarm adversaries, etc.—etc. (Hiring the Smilers has long been an explicit Starbucks has long been an explicit Starbucks StrategyStrategy.) Again, the .) Again, the idea is great-smile-as-formal-hiring-criterion.idea is great-smile-as-formal-hiring-criterion.

“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 Failure”/From Martin Seligman’s Learned 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.”

Like it or not, optimism makes “all the difference.” Please Like it or not, optimism makes “all the difference.” Please pay attention to this. pay attention to this.

1616.. Hire Staffers with Hire Staffers with a “Professional a “Professional

Service firm” [psf] Service firm” [psf] “Mentality”“Mentality”

Answer to prayers small and large:

PSFPSF

I am a nut on the topic of “PSFs”—professional service firms. I I am a nut on the topic of “PSFs”—professional service firms. I contend that companies of all stripes need to race up the contend that companies of all stripes need to race up the “value-added ladder” simply to survive. They will do so by “value-added ladder” simply to survive. They will do so by offering more encompassing and more intertwined services to offering more encompassing and more intertwined services to those clients. The sort of things that they will do have long been those clients. The sort of things that they will do have long been done (there’s little or nothing under the sun) by my beloved done (there’s little or nothing under the sun) by my beloved PSFs! What follows immediately are a tiny hand full of Monster PSFs! What follows immediately are a tiny hand full of Monster

Firms who are, in effect, “betting the farm” on PSF-izationFirms who are, in effect, “betting the farm” on PSF-ization!! !!

““M” = M” = $0$0

IBM more or less has ceased to make machines.IBM more or less has ceased to make machines.

IBIBMM: : $55B$55B***Also, among others in the same ballpark,*Also, among others in the same ballpark,

the recent linkup of HP and EDS the recent linkup of HP and EDS

IBM Global Services, earth’s largest PSF, IBM Global Services, earth’s largest PSF, isis IBM to a large IBM to a large degree. So, too, the Global Service look alikes within the degree. So, too, the Global Service look alikes within the world of the giants that follow.world of the giants that follow.

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

How How SchlumbergerSchlumberger Is Rewriting the Rules of the Is Rewriting the Rules of the

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

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

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

A January 2008 A January 2008 BusinessWeekBusinessWeek cover story informed us that Schlumberger may cover story informed us that Schlumberger may well take over the world: well take over the world: “THE GIANT STALKING BIG OIL: How “THE GIANT STALKING BIG OIL: How

Schlumberger Is Rewriting the Rules of the Energy Game.”Schlumberger Is Rewriting the Rules of the Energy Game.” In short, In short, Schlumberger knows how to create and run oilfields, anywhere, from drilling to Schlumberger knows how to create and run oilfields, anywhere, from drilling to fullscale production to distribution. And the nugget is hardcore, relatively small, fullscale production to distribution. And the nugget is hardcore, relatively small,

technically accomplished, highly autonomous teams. As China and Russia, among technically accomplished, highly autonomous teams. As China and Russia, among others, make their move in energy, state run companies are eclipsing the major others, make their move in energy, state run companies are eclipsing the major

independents. (China’s state oil company just surpassed Exxon in market value.) independents. (China’s state oil company just surpassed Exxon in market value.) At the center of it all, abetting these new players who are edging out the Exxons At the center of it all, abetting these new players who are edging out the Exxons

and BPs, the Kings of Large-scale, Long-term Project Management wear and BPs, the Kings of Large-scale, Long-term Project Management wear Schlumberger overalls. (The pictures in the article from Siberia alone are worth the Schlumberger overalls. (The pictures in the article from Siberia alone are worth the

cover price.) At the center of the center of the Schlumberger “empire” is a cover price.) At the center of the center of the Schlumberger “empire” is a relatively newly configured outfit, reminiscent of IBM’s Global Services and UPS’ relatively newly configured outfit, reminiscent of IBM’s Global Services and UPS’ integrated logistics’ experts and even Best Buy’s now ubiquitous “Geek Squads.” integrated logistics’ experts and even Best Buy’s now ubiquitous “Geek Squads.”

The Schlumberger version is simply called IPM, for Integrated Project The Schlumberger version is simply called IPM, for Integrated Project Management. It lives in a nondescript building near Gatwick Airport, and its chief Management. It lives in a nondescript building near Gatwick Airport, and its chief says it will do “just about anything an oilfield owner would want, from drilling to says it will do “just about anything an oilfield owner would want, from drilling to

production”—that is, as production”—that is, as BusinessWeekBusinessWeek put it, “[IPM] strays from [Schlumberger’s] put it, “[IPM] strays from [Schlumberger’s] traditional role as a service provider* and moves deeper into areas once dominated traditional role as a service provider* and moves deeper into areas once dominated

by the majors.” (*My old pal was solo on remote offshore platforms interpreting by the majors.” (*My old pal was solo on remote offshore platforms interpreting geophysical logs and the like.)geophysical logs and the like.)

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

Manager for Corporate Manager for Corporate AmericaAmerica”” —Headline/—Headline/BWBW

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

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

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

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

GE Enterprise SolutionsGE Enterprise Solutions** GE Enterprise Solutions delivers high-impact, GE Enterprise Solutions delivers high-impact, integrated solutions that improve customers’ integrated solutions that improve customers’

productivity and profitability. Enterprise Solutions productivity and profitability. Enterprise Solutions helps customers compete and win in a changing global helps customers compete and win in a changing global

environment by combining the power of GE’s environment by combining the power of GE’s intelligent technologies with its multi-industry intelligent technologies with its multi-industry experience and expertise. Enterprise Solutions experience and expertise. Enterprise Solutions

comprises high-tech, high-growth businesses including comprises high-tech, high-growth businesses including Sensing & Inspection Technologies, Security, GE Fanuc Sensing & Inspection Technologies, Security, GE Fanuc Intelligent Platforms, and Digital Energy. The business Intelligent Platforms, and Digital Energy. The business has 17,000 customer-focused associates in more than has 17,000 customer-focused associates in more than

60 countries around the world.60 countries around the world.

*from GE.com*from GE.com

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

Customer Success/ Customer Success/ Gamechanging Gamechanging

SolutionsSolutions

ServicesServicesGoodsGoods

Raw Materials Raw Materials

Climbing the ladder. Climbing the ladder.

Department Head

to …

ManaginManaging g

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

In Tom’s world, more or less every unit-department would In Tom’s world, more or less every unit-department would take on the characteristics of a PSF. Said departments would take on the characteristics of a PSF. Said departments would clearly understand and be obsessed by the value they add—clearly understand and be obsessed by the value they add—and like a person from IBM Global Services, they could and like a person from IBM Global Services, they could readily explain it to others. readily explain it to others.

See See Appendix FOURAppendix FOUR for more. for more.

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

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

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

Every “staff” job, senior to senior (e.g. “C-level” included), is Every “staff” job, senior to senior (e.g. “C-level” included), is transformed—an obsession for value added is the universal transformed—an obsession for value added is the universal norm. This norm. This isis the “new economy.” the “new economy.”

Ideal “finance staffer”: Ideal “finance staffer”:

**Full-scale “business partner”**Full-scale “business partner” [CFO?] to the/each department [CFO?] to the/each department she serves.she serves.**Not cop—obsessed instead with**Not cop—obsessed instead with value-addedvalue-added**Integration first, “stovepipe” **Integration first, “stovepipe” secondarysecondary**MBWA/bigtime**MBWA/bigtime**Networker to the rest of Finance**Networker to the rest of Finance

Everybody! Relatively junior staffers in a finance Everybody! Relatively junior staffers in a finance department, serving their internal department customer, department, serving their internal department customer, become mini-IBM Global Service types, acting as full-fledged become mini-IBM Global Service types, acting as full-fledged business partners to their internal customer department. business partners to their internal customer department.

PSFPSF/Professional Service Firm/Beliefs/Professional Service Firm/Beliefs

ProfessionProfession: : Calling/Passion to make aCalling/Passion to make a difference/Excellence difference/Excellence (always)(always)

point of viewpoint of view: : know exactly what weknow exactly what we stand for/ stand for/ “Dramatic “Dramatic Difference”Difference”

ClientClient: : enduring, test-the-limits enduring, test-the-limits relationship/Trusted advisor relationship/Trusted advisor

SolutionSolution: : Rock His-her World/ Rock His-her World/ “wow”“wow”// implemented “Culture implemented “Culture change”/change”/ >>>>>> “satisfaction” >>>>>> “satisfaction”

Bottom line re Talent WorldBottom line re Talent World:: We need a boatload of folks who We need a boatload of folks who understand and aspire to what’s on this slide. The hiring understand and aspire to what’s on this slide. The hiring criteria mimic McKinsey within reasonable limits. (FYI, such a criteria mimic McKinsey within reasonable limits. (FYI, such a job prospect should be compelling to the candidate—offering job prospect should be compelling to the candidate—offering help developing a very marketing skill package.)help developing a very marketing skill package.)

1717.. Hire Hire “Design-“Design-

Mindedness”Mindedness”!!

The “Value-added Imperative” is decidedly marked by the The “Value-added Imperative” is decidedly marked by the provision of something else that goes beyond the “service provision of something else that goes beyond the “service transaction” idea. It is, in part, the addition of an aesthetic transaction” idea. It is, in part, the addition of an aesthetic sense. I have long called it “design mindedness,” an sense. I have long called it “design mindedness,” an awkward but perhaps accurate moniker. At any rate, the idea awkward but perhaps accurate moniker. At any rate, the idea here is that we need a lot of folks, perhaps most folks, to here is that we need a lot of folks, perhaps most folks, to have some sort of aesthetic sensibility. I think this is not pie-have some sort of aesthetic sensibility. I think this is not pie-in-sky. At the very least, this attribute is necessary, to some in-sky. At the very least, this attribute is necessary, to some extent, in every manager. extent, in every manager.

“Design is

treated like treated like a religiona religion at

BMW.” —Fortune

““You You knowknow a a designdesign is is goodgood

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

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

““Business people don’t Business people don’t need to ‘understand need to ‘understand

designers better.’ designers better.’ Businesspeople needBusinesspeople need

to to bebe designers.” designers.”

—Roger Martin/Dean/Rotman Management School/—Roger Martin/Dean/Rotman Management School/University of TorontoUniversity of Toronto

Amen. Amen.

1818.. Embrace Embrace the “action the “action Faction”!Faction”!

1/401/40

A line I use in pretty much all of my presentations goes like A line I use in pretty much all of my presentations goes like this: “Truth be told, I have only learned one thing ‘for sure’ in this: “Truth be told, I have only learned one thing ‘for sure’ in the 40+ years I’ve been doin’ what I’ve been doin.’ And that the 40+ years I’ve been doin’ what I’ve been doin.’ And that is, is, He-she who tries the most stuff usually wins.”He-she who tries the most stuff usually wins.” In fact this In fact this idea, cemented during my two years in Vietnam as a idea, cemented during my two years in Vietnam as a Seabee/combat engineer, became, with a ton of supporting Seabee/combat engineer, became, with a ton of supporting evidence, our first of Eight Basics in In Search of Excellence evidence, our first of Eight Basics in In Search of Excellence We called it “A Bias for Action.” We called it “A Bias for Action.”

What’s my point in a presentation on talent? What’s my point in a presentation on talent? In short, we In short, we need to figure out who belongs to the “action faction”—and need to figure out who belongs to the “action faction”—and who doesn’twho doesn’t.. What follows is not fair; I feel that especially as What follows is not fair; I feel that especially as an engineer. But it does give flavor to what I’ve just said: an engineer. But it does give flavor to what I’ve just said: “Andrew Higgins , who built landing craft in WWII, refused to “Andrew Higgins , who built landing craft in WWII, refused to hire graduates of engineering schools. He believed that they hire graduates of engineering schools. He believed that they only teach you what you can’t do in engineering school. He only teach you what you can’t do in engineering school. He started off with 20 employees, and by the middle of the war started off with 20 employees, and by the middle of the war had 30,000 working for him. He turned out 20,000 landing had 30,000 working for him. He turned out 20,000 landing craft. D.D. Eisenhower told me, ‘Andrew Higgins won the war craft. D.D. Eisenhower told me, ‘Andrew Higgins won the war for us. He did it without engineers.’ ” —Stephen Ambrose/Fast for us. He did it without engineers.’ ” —Stephen Ambrose/Fast Company. I say: Company. I say: Win the commercial war—hire members of Win the commercial war—hire members of the Action Faction.the Action Faction.

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

“This is so simple it sounds stupid, but it is amazing how few oil people really

understand that you only you only find oil if you find oil if you drill wellsdrill wells.. You may

think you’re finding it when you’re drawing maps and

studying logs, but you have to drill.”

Source: The Hunters, by John Masters, Canadian O & G wildcatter

““We made mistakes, of course. Most of them were We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the omissions we didn’t think of when we initially wrote the software. software. We fixed them by doing it over and over, again We fixed them by doing it over and over, again and again.and again. We do the same today. While our competitors We do the same today. While our competitors are still sucking their thumbs trying to make the design are still sucking their thumbs trying to make the design

perfect, we’re already on prototype versionperfect, we’re already on prototype version ##55..

By the time our rivals areBy the time our rivals are ready with wires and screws, we are on versionready with wires and screws, we are on version

##1010.. It gets back to It gets back to planning versus actingplanning versus acting: : We act We act from day onefrom day one; ; others plan how others plan how toto planplan——for monthsfor months.”.” —Bloomberg by —Bloomberg by

BloombergBloomberg

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

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

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

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

19.19. Cheer Cheer [and [and

promote for!]promote for!] the the worthy worthy

failures!failures!

““In business, you In business, you rewardreward people for taking people for taking risksrisks. .

When it When it doesn’tdoesn’t workwork outout you pyou promoteromote them-because them-because they were willing to try new they were willing to try new

things. If people tell me things. If people tell me they skied all day and never they skied all day and never fell down, I tell them to tryfell down, I tell them to try

a different mountain.” a different mountain.” —Michael Bloomberg (—Michael Bloomberg (BWBW/0625.07)/0625.07)

If you claim that the only thing you’ve learned for sure in 40 If you claim that the only thing you’ve learned for sure in 40 years is, “She or he who tries the most stuff wins”—well, years is, “She or he who tries the most stuff wins”—well, then, you are also a champion of failures as Mike Bloomberg then, you are also a champion of failures as Mike Bloomberg

says in the prior slide. says in the prior slide. It is axiomatic that if It is axiomatic that if you try a lot at a very high tempo you try a lot at a very high tempo you’ll screw up a lot.you’ll screw up a lot. Not only is that Not only is that necessarily the case, but if there are no, or only a few, cock-necessarily the case, but if there are no, or only a few, cock-ups you aren’t making progress. Read on—Phil Daniels takes ups you aren’t making progress. Read on—Phil Daniels takes us even farther!us even farther!

““Fail .Fail . Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

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

—Samuel Beckett

““RewardReward excellent failures.

PunishPunish mediocre

successes.”Phil Daniels, Sydney exec

“The secret of fast progress is

inefficiency, fast and furious and

numerous failures.”

—Kevin Kelly

2020.. Exalt the Exalt the “dull” “dull”

DoersDoers!!!!

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

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

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

His immediate answer …His immediate answer …

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

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

His immediate answer: His immediate answer: ““remember remember to tuck the to tuck the

shower curtain shower curtain inside the inside the bathtubbathtub””

““Execution Execution isis

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

Amen. This is what Bob Waterman and I went after in Amen. This is what Bob Waterman and I went after in In In Search of ExcellenceSearch of Excellence at the start of the 80ies—much to the at the start of the 80ies—much to the chagrin of our McKinsey partners, who put The Plan first. chagrin of our McKinsey partners, who put The Plan first. Plan? Sure! But give me the Doers—and watch me romp to Plan? Sure! But give me the Doers—and watch me romp to the finish line ahead by many a length.the finish line ahead by many a length.

““almost inhuman almost inhuman disinterestedness disinterestedness in … strategy”in … strategy” —Josiah —Josiah

Bunting on Bunting on U.S. GrantU.S. Grant (from (from Ulysses S. Ulysses S. GrantGrant))

Don’t get me started—I could go for hours on the exalted Don’t get me started—I could go for hours on the exalted

topic of Ulysses Grant. His signature was … topic of Ulysses Grant. His signature was … Action Action Action Action.Action Action. And as the assessment of And as the assessment of

Grant on the prior slide suggests, he was dismissive Grant on the prior slide suggests, he was dismissive (contemptuous!) of too much planning. Virtually all agree (contemptuous!) of too much planning. Virtually all agree about his mastery of the battlefield, and some go so far as to about his mastery of the battlefield, and some go so far as to call him the best general in history.call him the best general in history.

In the recruiting process, perform a In the recruiting process, perform a microscopic analysis of the microscopic analysis of the

candidate’s proclivity for action. candidate’s proclivity for action. Look for a ton of supporting Look for a ton of supporting

specifics. Judge by body language specifics. Judge by body language what sorts of riffs turn him-her on what sorts of riffs turn him-her on

… and off. If the turn ons invariably … and off. If the turn ons invariably come from conceptual discussions—come from conceptual discussions—watch out. If the eyes gleam while watch out. If the eyes gleam while on the topic of implementation … on the topic of implementation … you may have a winner on your you may have a winner on your

hands. hands.

2121.. Hire Hire Relentless!Relentless!

““This [adolescent] incident [of getting from point A to point B] is notable This [adolescent] incident [of getting from point A to point B] is notable not only because it underlines Grant’s fearless horsemanship and his not only because it underlines Grant’s fearless horsemanship and his

determination, but also it is the first known example of a very important determination, but also it is the first known example of a very important

peculiarity of his characterpeculiarity of his character:: Grant had an Grant had an extreme, almost phobic extreme, almost phobic dislike of turning back dislike of turning back

and retracing his stepsand retracing his steps.. If he If he

set out for somewhere, he would get there somehow, whatever the set out for somewhere, he would get there somehow, whatever the difficulties that lay in his way. This idiosyncrasy would turn out to be one difficulties that lay in his way. This idiosyncrasy would turn out to be one the factors that made him such a formidable general. Grant would always, the factors that made him such a formidable general. Grant would always,

always press on—turning back was not an option for him.”always press on—turning back was not an option for him.”

—Michael Korda, Ulysses Grant

RelentlessRelentless:: “One of “One of

my superstitions had always been my superstitions had always been when I started to go anywhere or when I started to go anywhere or

to do anything,to do anything, notnot to to turnturn backback ,, or stop, or stop,

until the thing intended was until the thing intended was accomplished.”accomplished.” —Grant

Thanks to Grant, again, I became enamored with the word Thanks to Grant, again, I became enamored with the word “relentless.” The problem is that it’s the answer to “relentless.” The problem is that it’s the answer to everything! Nonetheless, in the context of this presentation, everything! Nonetheless, in the context of this presentation, I believe we can identify those with a history of I believe we can identify those with a history of relentlessness with some accuracy—if we follow the earlier relentlessness with some accuracy—if we follow the earlier dictum of “relentless” structured interviewing of candidatesdictum of “relentless” structured interviewing of candidates

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

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

““See How Simple What You Cannot Do Is”: The 320% Factor!See How Simple What You Cannot Do Is”: The 320% Factor!

Woody Allen/“Eighty percent of success is showing up” was the Woody Allen/“Eighty percent of success is showing up” was the topic of a recent Post. Rob (Comment, tompeters.com): “And I topic of a recent Post. Rob (Comment, tompeters.com): “And I

reckon a large part of the remaining 20% is Refusing to Go reckon a large part of the remaining 20% is Refusing to Go Away Again.”Away Again.”

Ernest Hemmingway’s Ernest Hemmingway’s The Garden of Eden:The Garden of Eden: “ … Finishing is “ … Finishing is what you have to do. If you don’t finish, nothing is worthwhat you have to do. If you don’t finish, nothing is worth

a damn.”a damn.”

“ … “ … Write the hardest story there is to write that you know. Write the hardest story there is to write that you know. Start it tomorrow. The hell with tomorrow. Go and start it now. Start it tomorrow. The hell with tomorrow. Go and start it now.

He sat down and wrote the first paragraph of the new story He sat down and wrote the first paragraph of the new story that he had always put off writing. … The very beginning was that he had always put off writing. … The very beginning was written and all he had to do was go on. That’s all, he said. See written and all he had to do was go on. That’s all, he said. See

how simple what you cannot do is?” how simple what you cannot do is?”

Message-Lesson/s:Message-Lesson/s: The The firstfirst 80% of success is showing up! 80% of success is showing up! The The secondsecond 80% is starting … now. The 80% is starting … now. The thirdthird 80% is 80% is

sticking around and refusing to leave! The sticking around and refusing to leave! The finalfinal 80% is 80% is finishing! (“See how simple what you cannot do isfinishing! (“See how simple what you cannot do is?”)?”)

Delaware was the smallest state in the Union in 1787 as Delaware was the smallest state in the Union in 1787 as the process of writing the Constitution got underway. For a the process of writing the Constitution got underway. For a number of reasons, some states, such as New Hampshire, number of reasons, some states, such as New Hampshire, were absent from the Convention, members of various were absent from the Convention, members of various delegations were away as much as present (e.g., Alexander delegations were away as much as present (e.g., Alexander Hamilton). In any event, about thirty Delegates were present Hamilton). In any event, about thirty Delegates were present and at work at any point in time.and at work at any point in time.

States could decide on the size of their delegations, and States could decide on the size of their delegations, and Delaware chose five—a very large number. Moreover, wee Delaware chose five—a very large number. Moreover, wee Delaware’s five never missed a day’s work and were in their Delaware’s five never missed a day’s work and were in their seats gavel to gavel.seats gavel to gavel.

Needless to say, wee Delaware had a wildly disproportionate Needless to say, wee Delaware had a wildly disproportionate impact on the Convention and the document itself.impact on the Convention and the document itself.

In a nutshell, Delaware’s secret: In a nutshell, Delaware’s secret: Show up!Show up!

(I like this example because it illustrates the impact of this (I like this example because it illustrates the impact of this “trivial” idea-tactic-strategy, available to all of us all of the “trivial” idea-tactic-strategy, available to all of us all of the time, in the most Monumental of affairs.) time, in the most Monumental of affairs.)

Thanks to Grant, again, I became enamored with the word Thanks to Grant, again, I became enamored with the word “relentless.” The problem is that it’s the answer to “relentless.” The problem is that it’s the answer to everything! Nonetheless, in the context of this presentation, everything! Nonetheless, in the context of this presentation, I believe we can identify those with a history of I believe we can identify those with a history of relentlessness with some accuracy—if we follow the earlier relentlessness with some accuracy—if we follow the earlier dictum of “relentless” structured interviewing of candidatesdictum of “relentless” structured interviewing of candidates

2222.. Hire and Hire and Promote for Promote for “relationship “relationship excellence.”excellence.”

R.O.I.R.O.I.R.R. Rules! Rules!

Return on Return on investment in investment in relationshipsrelationships

Understatement! Understatement!

GiveGive good good tea! tea!

The ragtag and victory-less Continental Army was retreating, George The ragtag and victory-less Continental Army was retreating, George Washington notwithstanding. For the Americans, finding an ally was a Washington notwithstanding. For the Americans, finding an ally was a life or death proposition. Short, fat old Benjamin Franklin was our life or death proposition. Short, fat old Benjamin Franklin was our man in Paris. Short, fat and old though he may have been, he was a man in Paris. Short, fat and old though he may have been, he was a Charmer. He won the hearts and devotion of the ladies of high society Charmer. He won the hearts and devotion of the ladies of high society with his mastery of Tea & Flattery. The Americans eked out a success with his mastery of Tea & Flattery. The Americans eked out a success at Saratoga which Franklin turned into an epic victory—and the at Saratoga which Franklin turned into an epic victory—and the besotted ladies convinced their mighty husbands to get behind the besotted ladies convinced their mighty husbands to get behind the Americans. The rest, as they say, is history.Americans. The rest, as they say, is history.

The launchpad for Gulf War I was Saudi Arabia. Despite the Saudis The launchpad for Gulf War I was Saudi Arabia. Despite the Saudis need to have Iraq’s Kuwaiti incursion reversed, the Kingdom was need to have Iraq’s Kuwaiti incursion reversed, the Kingdom was touchy about the massive American military presence on their Holy touchy about the massive American military presence on their Holy soil. Allied supreme commander Norm Schwarzkopf says, tongue only soil. Allied supreme commander Norm Schwarzkopf says, tongue only half in cheek, that his principal contribution to the war effort was half in cheek, that his principal contribution to the war effort was nightly marathon sessions sipping tea with the Crown Prince.nightly marathon sessions sipping tea with the Crown Prince.

The point: No matter how weighty the cause, “giving good The point: No matter how weighty the cause, “giving good tea”—an incredible and expensive (in terms of time) tea”—an incredible and expensive (in terms of time) investment in key relationships is typically invaluable and of investment in key relationships is typically invaluable and of decisive decisive strategicstrategic importance. Message: Master the Art of Tea importance. Message: Master the Art of Tea—metaphorically at least—and make it in to the history books. —metaphorically at least—and make it in to the history books.

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

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

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

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

future coalition command.”future coalition command.”

Do tea. Do tea. Make friends.Make friends.

Could it be that simple?Could it be that simple?At some level, the answer is yes.At some level, the answer is yes.

You need the troops. And you need the guns. But as D-You need the troops. And you need the guns. But as D-Day approached in 1944, you mostly needed to have a Day approached in 1944, you mostly needed to have a modicum of peace among Churchill, Montgomery, modicum of peace among Churchill, Montgomery, Patton, Bradley and Roosevelt. As Schwarzkopf kept the Patton, Bradley and Roosevelt. As Schwarzkopf kept the Saudis on board through tea, Ike’s affability, for which Saudis on board through tea, Ike’s affability, for which he was often criticized or dismissed or disdained, kept he was often criticized or dismissed or disdained, kept the British and Americans from killing each other long the British and Americans from killing each other long enough to kill the Germans.enough to kill the Germans.

X X =XFX=XFX**

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

A 2007 letter from John Hennessy, president ofA 2007 letter from John Hennessy, president of (1) (1) StanfordStanford University, to alumni laid out his long-term “vision” University, to alumni laid out his long-term “vision”

for that esteemed institution. The core of the vision’s promise for that esteemed institution. The core of the vision’s promise was more was more multi-disciplinary researchmulti-disciplinary research, aimed at solving some of , aimed at solving some of

the world’s complex systemic problems. (2) The chief of the world’s complex systemic problems. (2) The chief of GlaxoSmithKlineGlaxoSmithKline, a few years ago, announced a “revolutionary” , a few years ago, announced a “revolutionary”

new drug discovery process—human-scale new drug discovery process—human-scale centers of centers of interdisciplinary excellence, called Centers of Excellence in interdisciplinary excellence, called Centers of Excellence in Drug DiscoveryDrug Discovery. (It worked.) (3) Likewise, amidst a study of . (It worked.) (3) Likewise, amidst a study of organization effectiveness in the organization effectiveness in the oil industry’soil industry’s exploration exploration

sector, I came across a particularly successful firm—one key to sector, I came across a particularly successful firm—one key to that success was their that success was their physical and organizationphysical and organizationalal mingling of mingling of

formerly warring (two sets of prima donnas) geologists and formerly warring (two sets of prima donnas) geologists and geophysicistsgeophysicists. .

(4) The cover story in (4) The cover story in Dartmouth MedicineDartmouth Medicine, the , the Dartmouth med school magazine, featured a Dartmouth med school magazine, featured a

“revolutionary” approach, “revolutionary” approach, “microsystems,”“microsystems,” as “the big as “the big idea that [might] save U.S. healthcare.” The nub is idea that [might] save U.S. healthcare.” The nub is

providing successful patient outcomes in hospitals by providing successful patient outcomes in hospitals by formingforming multi-function patient-care teams multi-function patient-care teams, including , including

docs, nurses, labtechs and others. (“Co-operating doc” docs, nurses, labtechs and others. (“Co-operating doc” may top the oxymoron scale.) (5) One of the central may top the oxymoron scale.) (5) One of the central

responses to 911 is an effort to get responses to 911 is an effort to get intelligence intelligence servicesservices, home to some of the world’s most viscous turf , home to some of the world’s most viscous turf wars, talking to one another—we may have seen some wars, talking to one another—we may have seen some

of the fruits of that effort in the recently released of the fruits of that effort in the recently released National Intelligence EstimateNational Intelligence Estimate. And in the. And in the military, military,

inter-service co-operation has increased by an order of inter-service co-operation has increased by an order of magnitude since Gulf War Onemagnitude since Gulf War One—some of the services’ —some of the services’

communication systems can actually be linked to those communication systems can actually be linked to those of other services, a miracle almost the equal of the of other services, a miracle almost the equal of the

Christmas miracle in my book! Christmas miracle in my book!

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

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

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

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

Never Never waste a waste a lunch!lunch!

????????

% XF % XF lunches*lunches*

*Measure!*Measure!

To enhance cross-functional communication and cooperation To enhance cross-functional communication and cooperation we spend millions on software fro SAP or Oracle. Fine! But I we spend millions on software fro SAP or Oracle. Fine! But I vote for the true “soft”ware. vote for the true “soft”ware.

Lunch!Lunch!

Want to grease the XF friction away? Take a member of Want to grease the XF friction away? Take a member of another function to lunch! You’ll find, in 10 cases out of 10, another function to lunch! You’ll find, in 10 cases out of 10, that you have lots in common—and lots to teach each other. that you have lots in common—and lots to teach each other. In fact, “do” such lunches, say, once a week—and if you’re In fact, “do” such lunches, say, once a week—and if you’re boss insist that your team members keep track of those boss insist that your team members keep track of those XFLs, cross-functional lunches.XFLs, cross-functional lunches.

Trust me, with no disrespect to SAP or Oracle, this is the Trust me, with no disrespect to SAP or Oracle, this is the truly powerful stuff! truly powerful stuff!

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

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

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

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

oror

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

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

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

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

In GTD [Getting Things Done] world, it’s the Internal In GTD [Getting Things Done] world, it’s the Internal customers who, collectively, allow you to perform miracles customers who, collectively, allow you to perform miracles for your external customers—this is so true that I more or for your external customers—this is so true that I more or less contend that the Internal Customers [C(I)] are more less contend that the Internal Customers [C(I)] are more important than the externals. Moreover, it’s the Internal important than the externals. Moreover, it’s the Internal Customers who inhabit the bowels of the organization where Customers who inhabit the bowels of the organization where most of the real staffing takes place.most of the real staffing takes place.

““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

Bottom line: Little is more important in selection-Bottom line: Little is more important in selection-development-promotion that Excellence in Relationship development-promotion that Excellence in Relationship Building & Maintenance—as rigorously Building & Maintenance—as rigorously measured measured (!!)(!!) by the by the likes of time spent and EQ/Emotional Intelligence. likes of time spent and EQ/Emotional Intelligence.

2323.. HR Is HR Is “Cool.”“Cool.”

ChChicago:icago:HRMACHRMAC

“support function” / “cost center” /

“bureaucratic drag”

oror …

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

AAgge of Talente of Talent””

In I spoke at HRMAC [Human Resource Management In I spoke at HRMAC [Human Resource Management Association of Chicago] a while back. It was the opening shot Association of Chicago] a while back. It was the opening shot of a major campaign. In the age of the likes of outsourcing, I of a major campaign. In the age of the likes of outsourcing, I asserted, staffers of any flavor could not allow themselves as asserted, staffers of any flavor could not allow themselves as “cost centers” or “overhead,” the long time pejoratives used “cost centers” or “overhead,” the long time pejoratives used to describe most staff activities. They needed, to survive, to to describe most staff activities. They needed, to survive, to become the primary sources of value added. To my HR become the primary sources of value added. To my HR friends, in this unmistakable age of talent-as-ultimate-friends, in this unmistakable age of talent-as-ultimate-competitive-advantage, my HR pals might ought to transform competitive-advantage, my HR pals might ought to transform themselves individually and collectively into the Rock Stars themselves individually and collectively into the Rock Stars of the Age of Talent.of the Age of Talent.

Why not?!Why not?!

2424.. HR Sits at HR Sits at The Head The Head

Table.Table.

A review of Jack and Suzy Welch’s A review of Jack and Suzy Welch’s WinningWinning claims there are but claims there are but two key differentiators that set GE “culture” apart from the herd:two key differentiators that set GE “culture” apart from the herd:

FirstFirst:: Separating financial forecasting and performance Separating financial forecasting and performance measurement.measurement. Performance measurement based, as it usually is, on budgeting Performance measurement based, as it usually is, on budgeting leads to an epidemic of gaming the system. GE’s performance measurement is leads to an epidemic of gaming the system. GE’s performance measurement is divorced from budgeting—and instead reflects how you do relative to your past divorced from budgeting—and instead reflects how you do relative to your past performance and relative to competitors’ performance; i.e., it’s about how you performance and relative to competitors’ performance; i.e., it’s about how you actually do in the context of what happened in the real world, not as compared to a actually do in the context of what happened in the real world, not as compared to a gamed-abstract plan developed last year. gamed-abstract plan developed last year.

SecondSecond:: Putting Putting HRHR on a par with on a par with finance and finance and marketing.marketing.

Most Most don’t don’t do this.do this.Most Most shouldshould do this. do this.

[Of course HR must earn the front-row seat—see the prior [Of course HR must earn the front-row seat—see the prior discussion.]discussion.]

2525.. Re- Re-name “HR.”name “HR.”

Talent Talent DepartmentDepartment

People DepartmentPeople Department

Center for Talent ExcellenceCenter for Talent Excellence

Seriously Cool People Who Seriously Cool People Who Recruit & Develop Recruit & Develop

Seriously Cool PeopleSeriously Cool People

Etc.Etc.

Maybe it’s just me. I hate hate hate the “HR” moniker. How Maybe it’s just me. I hate hate hate the “HR” moniker. How about something a bit sexier, and a bit more descriptive of about something a bit sexier, and a bit more descriptive of the centrality of the role?the centrality of the role?

2626.. There Is There Is an “HR an “HR

Strategy”/ Strategy”/ “HR Vision”“HR Vision”

Most likely, the company has a “vision, “ and one that Most likely, the company has a “vision, “ and one that constitutes a Towering Aspiration. Should that not be constitutes a Towering Aspiration. Should that not be specifically mirrored and locally interpreted for each specifically mirrored and locally interpreted for each department? Shouldn’t there be an “HR Vision”?department? Shouldn’t there be an “HR Vision”?

My old McKinsey pal, Ed Michaels, called it the Employee My old McKinsey pal, Ed Michaels, called it the Employee Value Proposition. I call it the Internal Brand Promise. The Value Proposition. I call it the Internal Brand Promise. The idea is not the exact language, but the importance of the idea is not the exact language, but the importance of the idea.idea.

Per me, importance rating: A-Per me, importance rating: A-

What’s your company’s … EVP/EVP/IBPIBP?*

*Employee Value Proposition, per Ed Michaels et al.,

The War for Talent; IBP/Internal Brand Promise per TP

EVP/IBPEVP/IBP = = Remarkable Remarkable challenge, rapid professional challenge, rapid professional growth, respect, satisfaction, growth, respect, satisfaction,

fun, stunning opportunity, fun, 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

2727.. Acquire Acquire for Talent!for Talent!

Omnicom's acquisitionsOmnicom's acquisitions:: “not for “not for

size per se”; size per se”; “buying “buying talent;”talent;” “deepen a “deepen a

relationship with a client.”relationship with a client.”

Source: Source: Advertising AgeAdvertising Age

I have a long and intemperate record of opposing Big I have a long and intemperate record of opposing Big Mergers. But I am very supportive of the small, targeted Mergers. But I am very supportive of the small, targeted ones that are in fact Talent Acquisition Ventures. The culture ones that are in fact Talent Acquisition Ventures. The culture meld issues are still thorny, and most in fact don’t fully pan meld issues are still thorny, and most in fact don’t fully pan out. But the likes of Omnicom and Cisco have developed a out. But the likes of Omnicom and Cisco have developed a formula that offers the best of both worlds—substantial formula that offers the best of both worlds—substantial freedom for the acquiree with instant access to larger freedom for the acquiree with instant access to larger markets.markets.

2828.. There Is a There Is a FORMAL FORMAL

Leadership Leadership Development Development Strategy. Strategy.

I have a The leadership development process at the likes of I have a The leadership development process at the likes of GE (Crotonville on Hudson NY) and PepsiCo (Purchase NY) is GE (Crotonville on Hudson NY) and PepsiCo (Purchase NY) is the Major Leagues. Time and money are plentiful. the Major Leagues. Time and money are plentiful. “Students” come, period—”I’m busy,” the normal refrain, is “Students” come, period—”I’m busy,” the normal refrain, is not on. And the staff is top-of-the-line. To be involved in exec not on. And the staff is top-of-the-line. To be involved in exec development is a big feather in one’s career-enhancement development is a big feather in one’s career-enhancement hat. Alas, this state of affairs is hardly the norm.hat. Alas, this state of affairs is hardly the norm.

““Crotonville”!Crotonville”!Purchase!Purchase!

2929.. There Is a There Is a FORMAL FORMAL

STRATEGIC HR STRATEGIC HR Review Process.Review Process.

““In most companies, the Talent Review Process is a In most companies, the Talent Review Process is a farce. At GE, Jack Welch and his two top HR people farce. At GE, Jack Welch and his two top HR people visited each division for a day. They reviewed the visited each division for a day. They reviewed the top 20 to 50 people by name. They talked about top 20 to 50 people by name. They talked about

Talent Pool strengthening issuesTalent Pool strengthening issues.. The The Talent Review Process is a Talent Review Process is a contact sport at GE; it has contact sport at GE; it has

the intensity and the the intensity and the importance of the budget importance of the budget

process at most process at most companiescompanies.”.”—Ed Michaels

Milliken’s “War Milliken’s “War Room”Room”**

*Top 200*Top 200

At Milliken & Co, there is a little Talent “war room” on the At Milliken & Co, there is a little Talent “war room” on the exec floor. Inside, under lock and key, you’ll find a couple of exec floor. Inside, under lock and key, you’ll find a couple of hundred names attached to jobs—displayed in charts on the hundred names attached to jobs—displayed in charts on the wall. It allows and encourages an ongoing conversation wall. It allows and encourages an ongoing conversation about this Top Talent Roster. about this Top Talent Roster.

3030.. “People”/ “People”/ “Talent” “Talent”

Reviews Are the Reviews Are the FIRST FIRST Reviews.Reviews.

Top of the agenda.Top of the agenda.Without fail.Without fail.Top-of-the-mind.Top-of-the-mind.Period.Period.It matters.It matters.Big time.Big time.

3131.. HRHR Strategy Strategy = = BUSINESSBUSINESS

Strategy.Strategy.

Wegmans: #1/100 Best Companies to Work forWegmans: #1/100 Best Companies to Work for

84%: Grocery stores 84%: Grocery stores “are all alike”“are all alike”46%: additional spend if customers have an 46%: additional spend if customers have an “emotional connection”“emotional connection”

to a grocery store rather than to a grocery store rather than “are satisfied”“are satisfied” (Gallup) (Gallup)

“Going to Wegmans is not just shopping, “Going to Wegmans is not just shopping, it’s an event.”it’s an event.” —Christopher —Christopher Hoyt, grocery consultantHoyt, grocery consultant

““You cannot separate You cannot separate their strategy as a their strategy as a retailerretailer from their from their

strategy as an strategy as an emempploloyyerer.”.” —Darrell Rigby, Bain & Co.—Darrell Rigby, Bain & Co.

HR affairs should be the lead issue in the business strategy. HR affairs should be the lead issue in the business strategy. (It rarely is.)(It rarely is.)(This is particularly true in fast-growth businesses.)(This is particularly true in fast-growth businesses.)

3232.. Make it a Make it a “Cause Worth “Cause Worth

Signing Up Signing Up For.”For.”

““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)

3333.. Goal: Goal: Amazing questsAmazing quests!!

Life SuccessLife Success!! Dreams Come Dreams Come truetrue!! [for [for everyoneeveryone ]]

Is “this stuff” [that follows] practical? Can it be acted upon? Is “this stuff” [that follows] practical? Can it be acted upon? Or is it motivational B.S.?Or is it motivational B.S.?

There was a time when I would have come down on the There was a time when I would have come down on the “motivational B.S.” side. But I’ve drunk the kool-aid. “motivational B.S.” side. But I’ve drunk the kool-aid.

I think this is—precisely and operationally—the “business” of I think this is—precisely and operationally—the “business” of management!management!

To make people successful.To make people successful.To assist them as they construct and proceed toward a To assist them as they construct and proceed toward a better future for themselves and their family. better future for themselves and their family.

And by doing these things, the business leader’s practical And by doing these things, the business leader’s practical reward is a growth oriented, engaged employee—likely to reward is a growth oriented, engaged employee—likely to positively engage his mates and the customer alike.positively engage his mates and the customer alike.

This ain’t bullshit. This ain’t bullshit. This is the point of any organization.This is the point of any organization.

““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

““We are a We are a ‘Life ‘Life

Success’ Success’ Company.”Company.”

Dave Liniger, founder, RE/MAX

““The organization The organization would ultimately win would ultimately win notnot because it gave because it gave agents more money, agents more money, but because it gave but because it gave them a chance for them a chance for

better lives.”better lives.” ——Everybody WinsEverybody Wins, Phil Harkins & Keith Hollihan, on RE/MAX, Phil Harkins & Keith Hollihan, on RE/MAX

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

% of people % of people with …with …

… … Dreams?Dreams?

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: best-version-of-itself. The question is: What is an What is an emempploloyyee’s ee’s ppururppose? Most would saose? Most would sayy, ‘to hel, ‘to helpp the the

comcomppananyy achieve its achieve its ppururppose’—but theose’—but theyy would be wron would be wrongg. . That is certainlThat is certainlyy ppart of the emart of the empploloyyee’s role, but an ee’s role, but an emempploloyyee’s ee’s pprimarrimaryy ppururppose is to become the-best-ose is to become the-best-version-of-himself or –herselfversion-of-himself or –herself.. … When a company … 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.”

What is an employee’s What is an employee’s purpose? Most would say, ‘to purpose? Most would say, ‘to help the company achieve its help the company achieve its purpose’—but they would be purpose’—but they would be

wrong. That is certainly part of wrong. That is certainly part of the employee’s role, but an the employee’s role, but an

employee’s primary purpose is employee’s primary purpose is to become the-best-version-of-to become the-best-version-of-himself or –herself.himself or –herself. —Matthew Kelly, —Matthew Kelly,

The Dream ManagerThe Dream Manager

If you are determined to become “the best version of If you are determined to become “the best version of yourself,” your mates and your customers will be the yourself,” your mates and your customers will be the principal beneficiaries of your personal drive for principal beneficiaries of your personal drive for improvement. improvement.

DRD:DRD: Dream Dream Realization Realization DepartmentDepartment

Why notWhy not!!!!!!!?????!!!!!!!?????(Damn site better than “HR Dept”!)(Damn site better than “HR Dept”!)

CCQQOO*

*Chief *Chief quest-meisterquest-meister

Yup, I’m recommending Yup, I’m recommending anotheranother “C-level” “C-level”!!

Words!Words!

“Stretch”“Stretch”“ Encourage”“ Encourage”

or …or …

“Dreams come true” “Dreams come true” “Life Success Co.”“Life Success Co.”

Words are important.Words are important.We are typically given to dreary words.We are typically given to dreary words.

“Empowerment.”“Empowerment.”“Stretch goals.”“Stretch goals.”“Learning organization.”“Learning organization.”

There is no law against more energetic words.There is no law against more energetic words.

“Life success.”“Life success.”“Dreams come true.”“Dreams come true.”“Wow project.”“Wow project.”“Curiosity Village.”“Curiosity Village.”

[This is a surprisingly big deal.][This is a surprisingly big deal.]

3434.. Enlist Everyone Enlist Everyone in Challenge in Challenge Century21/Century21/

Foster Foster Independence.Independence.

““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

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

““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

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

It’s not [entirely] that “you’re on your own, baby!” But you It’s not [entirely] that “you’re on your own, baby!” But you can no longer get by for a lifetime by “showing up” and can no longer get by for a lifetime by “showing up” and “doing the work.” Your work and your teams’ projects must “doing the work.” Your work and your teams’ projects must be somehow “noteworthy.” Not [necessarily] Olympian—be somehow “noteworthy.” Not [necessarily] Olympian—though that would be nice. But noteworthy.though that would be nice. But noteworthy.

Brand You, a term I coined a decade ago, is not about dog-Brand You, a term I coined a decade ago, is not about dog-eat-dog. To the contrary, the dog eaters will have a lousy rep eat-dog. To the contrary, the dog eaters will have a lousy rep with their peers—and peer raves now supplant boss raves as with their peers—and peer raves now supplant boss raves as the coin of the realm.the coin of the realm.

Brand You is simply (not simple at all) about work that “has a Brand You is simply (not simple at all) about work that “has a signature,” work that reflects you as a person signature,” work that reflects you as a person andand your your aspirations.aspirations.

““You must realize that how you invest your human You must realize that how you invest your human capital matters as much as how you invest your capital matters as much as how you invest your

financial capital. Its rate of return determines your financial capital. Its rate of return determines your

future options. future options. Take a job for what it Take a job for what it teaches you, not for what it pays. teaches you, not for what it pays. Instead of a potential employer Instead of a potential employer

asking, ‘Where do you see asking, ‘Where do you see yourself in 5 years?’ you’ll ask, yourself in 5 years?’ you’ll ask,

‘If I invest my mental assets with ‘If I invest my mental assets with you for 5 years, how much will you for 5 years, how much will

they appreciate? How much will they appreciate? How much will my portfolio of career options my portfolio of career options

grow?’grow?’ ” ”Source: Stan Davis & Christopher Meyer, futureWEALTH

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.”

Nobel Peace Prize winner Yunus, father of micro-lending, Nobel Peace Prize winner Yunus, father of micro-lending, makes a critical point. I’ve had soooooo many people say to makes a critical point. I’ve had soooooo many people say to me, “But I’m not entrepreneurial!” We may not all be equally me, “But I’m not entrepreneurial!” We may not all be equally entrepreneurial, but not so long ago our ancestors were all entrepreneurial, but not so long ago our ancestors were all entrepreneurs! (Surviving as laborer or landowner meant entrepreneurs! (Surviving as laborer or landowner meant scrambling—another word for entrepreneurial.) Yup, we do—scrambling—another word for entrepreneurial.) Yup, we do—pretty much all of us—”have it in us.” We were, and hooray I pretty much all of us—”have it in us.” We were, and hooray I say, not genetically bred to be deskbound bureaucrats! say, not genetically bred to be deskbound bureaucrats!

DistinctDistinct … or

…

ExtincExtinctt

Win-winWin-win**

*Damn it!*Damn it!

Some traditionalist bosses see the Brand You notion as Some traditionalist bosses see the Brand You notion as institutionalized dis-loyalty. In my opinion, nothing could be institutionalized dis-loyalty. In my opinion, nothing could be further from the truth. Brand You is about people profoundly further from the truth. Brand You is about people profoundly committed to personal growth—and it goes without saying [I committed to personal growth—and it goes without saying [I think] that people committed to growth are by far the most think] that people committed to growth are by far the most engaged and valuable employees.engaged and valuable employees.

3535. . create an create an accountable accountable workplace.workplace.

““GE has set a GE has set a standard of candor. standard of candor.

… There is no … There is no puffery. … puffery. … There There isn’t an ounce of isn’t an ounce of

denial in the placedenial in the place.”.” ——

Kevin Sharer, CEO Amgen, Kevin Sharer, CEO Amgen, on the “GE mystique” on the “GE mystique” (Fortune)(Fortune)

““Accountability” is a beautiful word. There are lots of Accountability” is a beautiful word. There are lots of “judgment calls” in the “real world,” but a disciplined, no “judgment calls” in the “real world,” but a disciplined, no B.S., truth-telling workplace is a fair workplace—and, alas, B.S., truth-telling workplace is a fair workplace—and, alas, all too rare. GE is a tough place to work—but the good news all too rare. GE is a tough place to work—but the good news is that you know where you stand, and a promise is a is that you know where you stand, and a promise is a promise. After attending a big GE meeting, I said to a friend, promise. After attending a big GE meeting, I said to a friend, “They’re tough bastards—but if somebody committed to do “They’re tough bastards—but if somebody committed to do something, it meant that they planned to do it and were something, it meant that they planned to do it and were prepared to be judged o their promises.prepared to be judged o their promises.

That’s a Big Deal.That’s a Big Deal.

3636.. Ensure that Ensure that the Review the Review Process Has Process Has INTEGRITY.INTEGRITY.

25 = 25 = 100*100*

* “But what do I do that’s more important than developing people? I don’t do the damn work. They do.” —GK

Dr Deming said years ago that the employee review process Dr Deming said years ago that the employee review process was a wretched experience for reviewer and victim alike. was a wretched experience for reviewer and victim alike. There are hundreds of contributors to “doing it right”—but There are hundreds of contributors to “doing it right”—but one stands out as far as I’m concerned: one stands out as far as I’m concerned:

Investment.Investment.

Guy Kawasaki, legendary Apple “software evangelist,” Guy Kawasaki, legendary Apple “software evangelist,” surprised us all at a conference I attended by reporting that surprised us all at a conference I attended by reporting that he spent 100 (!!!) days a year on evaluations. he spent 100 (!!!) days a year on evaluations.

He had 25 people working for him.He had 25 people working for him.He evaluated them twice a year.He evaluated them twice a year.He spent two full days on each evaluation. He spent two full days on each evaluation. One day, more or less, was spent collecting data.One day, more or less, was spent collecting data.One day was spent “on retreat” with the employee, going One day was spent “on retreat” with the employee, going over the data and discussing the past and the future.over the data and discussing the past and the future.

There’s obviously a lot more to the story—but the There’s obviously a lot more to the story—but the commitment to the process stands out. Evaluations are the commitment to the process stands out. Evaluations are the cornerstone of development—and they deserve exceptional cornerstone of development—and they deserve exceptional investment.investment.

3737.. Training I: Training I: Train! Train! Train! Train!

Train!Train!

26.3HPY26.3HPY

It’s a It’s a numbers numbers game! game! (mostly)(mostly)

A few years ago I saw a statistic, from a reliable source as I A few years ago I saw a statistic, from a reliable source as I recall, that reported that the average American worker recall, that reported that the average American worker received 26.3 hours of training per year—and it represented received 26.3 hours of training per year—and it represented an uptick.an uptick.

I wanted to barf.I wanted to barf.

Training ranges from very very good to very very bad. True Training ranges from very very good to very very bad. True enough. But it is in part a numbers game. The gross quantity enough. But it is in part a numbers game. The gross quantity makes a difference.makes a difference.

(I did a little test on myself, and discovered, at age 61, at the (I did a little test on myself, and discovered, at age 61, at the time, I did 7 hours of preparation for every hour of time, I did 7 hours of preparation for every hour of presentation, and that’s after 30 years of doing my thing presentation, and that’s after 30 years of doing my thing intensively. Made sense to me, and I bet I’m way below opera intensively. Made sense to me, and I bet I’m way below opera singers! I’m not bragging—I’m just making the case for singers! I’m not bragging—I’m just making the case for serious training. And a case that’s growing in importance by serious training. And a case that’s growing in importance by the day as our friends in China and India pour on the coals.)the day as our friends in China and India pour on the coals.)

““Have you invested Have you invested as much this year* as much this year* in your career as in in your career as in

your car?” your car?” —Molly Sargent—Molly Sargent

Molly is my sister-in-law and a renown organization Molly is my sister-in-law and a renown organization development expert-trainer-consultant. This is a question development expert-trainer-consultant. This is a question she routinely asks seminar participants. The responses are she routinely asks seminar participants. The responses are not especially reassuring.not especially reassuring.

3838.. Training II: Training II: 100% “Business 100% “Business

People”People”!!

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 PROPOSITION4. 4. Rolodex ObsessionRolodex Obsession (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!)

““Brand You” is a “businessperson.” (See above.) The Brand You” is a “businessperson.” (See above.) The “staffer” turned Professional Service Firm member is a “staffer” turned Professional Service Firm member is a “businessperson.” (See above.) To survive and thrive in “businessperson.” (See above.) To survive and thrive in today’s global workplace, one must simultaneously become today’s global workplace, one must simultaneously become more expert and more well-rounded at the same time. The more expert and more well-rounded at the same time. The list on the preceding slide is merely suggestive.list on the preceding slide is merely suggestive.

3939.. Training Training III: 100% III: 100% LEADERS!LEADERS!

““I start with the I start with the premise that the premise that the

function of leadership function of leadership is to produce more is to produce more leaders, not more leaders, not more followers.”followers.” ——Ralph NaderRalph Nader

“The Marine Corps believes that all

Marines must learn to lead. In order to survive the chaos

and uncertainty of war, a Marine is taught how to be decisive, how to take

care of others, and how to take

responsibility for her actions.” —Leading from the Front, Angie Morgan and Courtney Lynch

100% leaders.100% leaders.Period.Period.

4040.. Training IV: Training IV: Boss as Trainer-Boss as Trainer-

in-Chiefin-Chief!!

““Workout” = Workout” = 2424 DPYDPY in the Classroom in the Classroom

GE calls it “workout,” their process of empowering folks GE calls it “workout,” their process of empowering folks through engagement. One result: Leaders spend at least through engagement. One result: Leaders spend at least

24 days per year24 days per year in the in the

classroom! (Now there’s a Gold Standard!) classroom! (Now there’s a Gold Standard!)

Leader-as-teacher is as good as it gets!Leader-as-teacher is as good as it gets!

4141.. Training V: Training V: The REAL The REAL

Bedrock of the Bedrock of the “Talent Thing.”“Talent Thing.”

““My wife and I went to a [kindergarten] parent-teacher My wife and I went to a [kindergarten] parent-teacher conference and were informed that our budding refrigerator conference and were informed that our budding refrigerator

artist, Christopher, would be receiving a grade of artist, Christopher, would be receiving a grade of Unsatisfactory in art. We were shocked. How could any childUnsatisfactory in art. We were shocked. How could any child

—let alone our child—receive a poor grade in art at such a —let alone our child—receive a poor grade in art at such a

young age?young age? His teacher His teacher informed us that he had informed us that he had refused to color within refused to color within the lines, which was a the lines, which was a state restate reqquirement for uirement for demonstratindemonstratingg ‘ ‘ggrade-rade-

level motor skillslevel motor skills.’.’ ” ” —Jordan —Jordan

Ayan, AHA!Ayan, AHA!

Don’t get me started. If we really do live in a world where Don’t get me started. If we really do live in a world where value added comes from innovation, design, the creation of value added comes from innovation, design, the creation of memorable experiences and the like—then our schools need memorable experiences and the like—then our schools need to get with the program. Alas, the situation illuminated by to get with the program. Alas, the situation illuminated by this slide is the norm.this slide is the norm.

Gulp.Gulp.

(The only “good news”: Nobody’s doing it right. Yet.)(The only “good news”: Nobody’s doing it right. Yet.)

4242.. Re-Re-spectspect!!

A “respectful culture” must be ceaselessly worked on—and A “respectful culture” must be ceaselessly worked on—and depends particularly on openness.depends particularly on openness.

““What creates What creates trust, in the end, trust, in the end,

is the leader’s is the leader’s manifest resmanifest resppectect

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

Leading Change

““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

““Ladies and Ladies and gentlemen gentlemen

serving ladies serving ladies and gentlemen”and gentlemen”

Ritz Carlton Credo, from Horst SchulteRitz Carlton Credo, from Horst Schulte

Simple.Simple.Beautiful.Beautiful.Powerful.Powerful.Profound.Profound.Aspirational.Aspirational.

““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

I’ve used this slide a dozen dozen times—I tear up every time I’ve used this slide a dozen dozen times—I tear up every time I read it aloud.I read it aloud.

““Don’t Don’t belittle!”belittle!”

—OD Consultant—OD Consultant

A renown organization development consultant was to give a A renown organization development consultant was to give a lecture. He apparently walked into the classroom, wrote lecture. He apparently walked into the classroom, wrote “Don’t belittle” on the board—and left.“Don’t belittle” on the board—and left.

I hope that’s true. Few ideas are more important. (And, in I hope that’s true. Few ideas are more important. (And, in fact, oh so tough, in a busy environment, to stay true to.)fact, oh so tough, in a busy environment, to stay true to.)

4343.. Talent Talent Excellence! Excellence!

Leaders who Leaders who askask! Leaders ! Leaders who who listenlisten!!

““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)

Wow.Wow.Amen.Amen.

1818””

Harvard Med doc Jerome Groopman wrote a fine book called, Harvard Med doc Jerome Groopman wrote a fine book called, How Doctors Think. He tells us that the best source of How Doctors Think. He tells us that the best source of information on a patient’s troubles is … the patient. And yet information on a patient’s troubles is … the patient. And yet some research shows that docs on average interrupt the some research shows that docs on average interrupt the

patient after … patient after … 18 seconds18 seconds..

I use this story and stat, because I don’t think it’s a “doctor I use this story and stat, because I don’t think it’s a “doctor story.” I think it’s a “you and me story.” story.” I think it’s a “you and me story.”

If “What do you thin?” are the four most important words in If “What do you thin?” are the four most important words in the organization then the interruption factor is the #1 killer the organization then the interruption factor is the #1 killer of employee growth and engagement.of employee growth and engagement.

The answer: Hard work!The answer: Hard work!Asking good questions is hard work—a fully developable skill.Asking good questions is hard work—a fully developable skill.Listening is hard work—a fully developable skill. Listening is hard work—a fully developable skill.

4444.. “Thoughtful” “Thoughtful” works!works!

“Thoughtful” “Thoughtful” Wins! !Wins! !

KindnesKindness s

is freeis free

There is no hospital which deserves the title of “patient There is no hospital which deserves the title of “patient focused” than Griffin Hospital in Derby CT. Home to the focused” than Griffin Hospital in Derby CT. Home to the extraordinary Planetree Alliance, it thrives on, yes, extraordinary Planetree Alliance, it thrives on, yes,

KindnessKindness. Kindness is a definable virtue, it . Kindness is a definable virtue, it

turns out.turns out.

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

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

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

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

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

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

Press GanePress Ganeyy Assoc Assoc:: 139,380139,380 former former patients from patients from 225225 hospitals: hospitals:

nonenone of THE top 15 factors of THE top 15 factors

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

PSPS directldirectly related to y related to StaffStaff InteractionInteraction

PSPS directldirectly correlated with y correlated with Employee Employee SatisfactionSatisfaction

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

Press Ganey is the Gold Standard when it comes to Press Ganey is the Gold Standard when it comes to measuring patient satisfaction. And what’s presented here measuring patient satisfaction. And what’s presented here is, well as Bizarre as it is Powerful. I repeat what’s on the is, well as Bizarre as it is Powerful. I repeat what’s on the slide: Of 15 factors that effect Patient Satisfaction, none—slide: Of 15 factors that effect Patient Satisfaction, none—

NONENONE—are related to health —are related to health

outcomes. All have to do with the Quality of Interactions. The outcomes. All have to do with the Quality of Interactions. The same is more or less true, according to my reading, is arena same is more or less true, according to my reading, is arena after arena.after arena.

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

There I’m hooked on this idea. My attention rose as the There I’m hooked on this idea. My attention rose as the current economic crisis deepened. We are forced to take current economic crisis deepened. We are forced to take some dramatic actions concerning people. While they must some dramatic actions concerning people. While they must be taken, they can be taken thoughtfully—or not. It then be taken, they can be taken thoughtfully—or not. It then occurred, consistent with everything in this presentation, occurred, consistent with everything in this presentation, that “Thoughtful in All we Do” should be a Core Value of any that “Thoughtful in All we Do” should be a Core Value of any enterprise. A Core Value that is the equal of “people first” or enterprise. A Core Value that is the equal of “people first” or “integrity” or “customer obsession.” It amounts to “the way “integrity” or “customer obsession.” It amounts to “the way we live together” with every member of our so-called value we live together” with every member of our so-called value chain, from vendor to employee to distributor to customer to chain, from vendor to employee to distributor to customer to community.community.

Think about it.Think about it.

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

I think the consequences of “thoughtful in all we do” are I think the consequences of “thoughtful in all we do” are profound.profound.

100 Ways to Succeed #142:100 Ways to Succeed #142:““We Are Thoughtful In All We Do.”We Are Thoughtful In All We Do.”

Consider the idea of: “We are thoughtful in all we Consider the idea of: “We are thoughtful in all we do.”do.”What does it mean?What does it mean?How does one practice it?How does one practice it?Talk about it with peers, pals, vendors, customers, Talk about it with peers, pals, vendors, customers, etc, etc.etc, etc.Talk about thoughtfulness—“dogmatic Talk about thoughtfulness—“dogmatic thoughtfulness”?—as a powerful and pragmatic thoughtfulness”?—as a powerful and pragmatic business value. (And especially in traumatic times.)business value. (And especially in traumatic times.)Keep debating.Keep debating.Consider adding “thoughtfulness in all we do,” maybe Consider adding “thoughtfulness in all we do,” maybe “dogmatic thoughtfulness in all we do,” to your “dogmatic thoughtfulness in all we do,” to your formal values proclamation—or otherwise vigorously formal values proclamation—or otherwise vigorously promoting the idea.promoting the idea.

(NB: You must come to agreement on the “bottom line” pragmatism (NB: You must come to agreement on the “bottom line” pragmatism of this idea before formally proceeding—it may well make you of this idea before formally proceeding—it may well make you better persons, but it is not in any way a “mushy” idea.) better persons, but it is not in any way a “mushy” idea.)

““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

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

4545.. Thank Thank

YouYou!!

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

William JamesWilliam James

4646.. MBWA: MBWA: Visible Visible

Leadership!Leadership!

MBWMBWAA

4747.. Promote for Promote for “people skills.”“people skills.” (THE REST IS (THE REST IS

DETAILS.)DETAILS.)

““When assessing candidates, the first When assessing candidates, the first thing I looked for was energy and thing I looked for was energy and

enthusiasm for execution. enthusiasm for execution. Does Does she talk about the thrill she talk about the thrill of of ggettinettingg thin thinggs done, s done,

the obstacles overcome, the obstacles overcome, the role her the role her ppeoeopple le pplalayyeded —or does she keep —or does she keep wandering back to strategy or wandering back to strategy or

philosophy?”philosophy?”

—Larry Bossidy, Honeywell/AlliedSignal, in —Larry Bossidy, Honeywell/AlliedSignal, in ExecutionExecution

4848.. Honor Honor Youth.Youth.

““Why focus on these late teens and twenty-Why focus on these late teens and twenty-

somethings? somethings? Because theBecause theyy are the are the first first yyounoungg who are both in a who are both in a

pposition to chanosition to changge the world, and e the world, and are actuallare actuallyy doin doingg so so.. … For the first … For the first

time in history, children are more comfortable, time in history, children are more comfortable, knowledgeable and literate than their parents knowledgeable and literate than their parents about an innovation central to society. … The about an innovation central to society. … The

Internet has triggered the first industrial Internet has triggered the first industrial revolution in history to be led by the young.”revolution in history to be led by the young.”

The EconomistThe Economist

4949.. Provide Provide Early Early

Leadership Leadership Assignments.Assignments.

TheThe

WOW!WOW!

ProjectProject

To develop leaders from the outset, we must put them in To develop leaders from the outset, we must put them in charge of bits of projects from the outset. At McKinsey, I was charge of bits of projects from the outset. At McKinsey, I was off to work on my first micro-project within a project within 4 off to work on my first micro-project within a project within 4 hours of arriving at the San Francisco office. I flew to Calgary hours of arriving at the San Francisco office. I flew to Calgary to get going on Canadian fertilizer demand. to get going on Canadian fertilizer demand.

5050.. Create a Create a FORMAL FORMAL

System of System of Mentoring.Mentoring.

W. L. GoreW. L. GoreQuad/GraphicsQuad/Graphics

As in the prior slides, mentoring starts virtually onAs in the prior slides, mentoring starts virtually on

Day #1Day #1 at Quad/Graphics and W.L. Gore. Again, at Quad/Graphics and W.L. Gore. Again,

it’s about attaining leadership skills and people excellence it’s about attaining leadership skills and people excellence from the outset.from the outset.

5151.. Diversity of Diversity of everyevery sort sort!!

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

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

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

almost always did better. … almost always did better. …

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

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

This is one of those “shockers.” Diversity for diversity’s sake This is one of those “shockers.” Diversity for diversity’s sake is Very Powerful medicine in any problem-solving situation. is Very Powerful medicine in any problem-solving situation.

Diversity on every—Diversity on every—EVERYEVERY—dimension. Tall. Short. —dimension. Tall. Short. Fat. Thin. African American Hispanic origin. Vegetarian. Fat. Thin. African American Hispanic origin. Vegetarian. Meat maven. Ivy Leaguer. Community college. Engineer. Lit Meat maven. Ivy Leaguer. Community college. Engineer. Lit

major. major. The power of Diversity The power of Diversity of every flavor is no less of every flavor is no less than stunning. And … the than stunning. And … the weakness imposed by the weakness imposed by the lack of diversity is equally lack of diversity is equally stunning.stunning.

5252.. Hire Hire (& (&

Protect!)Protect!) Weird!Weird!

““Are thereAre there

enouenougghh weirdweird

ppeoeopplele in the in the lab these days?”lab these days?” —V.

Chmn., pharmaceutical house, to a lab director

CM Prof Richard Florida on “Creative CM Prof Richard Florida on “Creative

CapitalCapital”: ”: “You cannot get a “You cannot get a technologically technologically

innovative place … innovative place … unless it’s open to unless it’s open to

weirdness, eccentricity weirdness, eccentricity and difference.”and difference.”

Source: Source: New York TimesNew York Times/06.01.2002/06.01.2002

A weird world calls for weird people.A weird world calls for weird people.

Why Do I love Freaks?

(1) Because when Anything Interesting happens … it was (1) Because when Anything Interesting happens … it was a a freakfreak who did it. (Period.) who did it. (Period.) (2) (2) FreaksFreaks are fun. (Freaks are also a pain.) (Freaks are are fun. (Freaks are also a pain.) (Freaks are never boring.) never boring.) (3) We need (3) We need freaksfreaks. Especially in freaky times. (Hint: . Especially in freaky times. (Hint: These are freaky times, for you & me & the CIA & the These are freaky times, for you & me & the CIA & the Army & Avon.) Army & Avon.) (4) A critical mass of (4) A critical mass of freaks-in-our-midstfreaks-in-our-midst automatically make us-who-are-not-so-freaky at least automatically make us-who-are-not-so-freaky at least somewhat more freaky. (Which is a Good Thing in freaky somewhat more freaky. (Which is a Good Thing in freaky times—see immediately above.) times—see immediately above.) (5)(5) FreaksFreaks are the only (ONLY) ones who succeed—as are the only (ONLY) ones who succeed—as in, make it into the history books. in, make it into the history books. (6) (6) FreaksFreaks keep us from falling into ruts. (If we listen to keep us from falling into ruts. (If we listen to them.) (We seldom listen to them.) (Which is why most them.) (We seldom listen to them.) (Which is why most organizations are in ruts. Make that chasms.)organizations are in ruts. Make that chasms.)

5353.. WOMEN WOMEN [should][should] RULE RULE!!

This is one of I’ve worked on this tirelessly since 1996. I shall This is one of I’ve worked on this tirelessly since 1996. I shall keep going without rest. I do it because of the market keep going without rest. I do it because of the market consequences rather than for reasons of social justice. consequences rather than for reasons of social justice. (Though as a private citizen I think said consequences are of (Though as a private citizen I think said consequences are of the utmost importance.) You’ll find more on this at the utmost importance.) You’ll find more on this at

Appendix SIX.Appendix SIX.

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

InternetInternet: Economic : Economic Growth Is Driven Growth Is Driven

by by WomenWomen.”.” —Headline,

Economist, April 15, 2006, Leader, page 14

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE**:: New Studies find

that female managers outshine their male counterparts in almost every measure”

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

*See more at *See more at Appendix Appendix SIXSIX

Women’s Strengths Match New Women’s Strengths Match New Economy ImperativesEconomy Imperatives:: Link [rather than rank] Link [rather than rank]

workers; workers; favor interactive-collaborative leadership favor interactive-collaborative leadership style [empowerment beats top-down decision style [empowerment beats top-down decision

making];making]; sustain fruitful collaborations; comfortable sustain fruitful collaborations; comfortable with sharing information; with sharing information; see redistribution of power see redistribution of power

as victory, not surrenderas victory, not surrender; favor multi-dimensional ; favor multi-dimensional feedback; feedback; value technical & interpersonal skills, value technical & interpersonal skills, individual & group contributions equally;individual & group contributions equally; readily readily

accept ambiguity; accept ambiguity; honor intuition as well ashonor intuition as well as pure “rationality”; pure “rationality”; inherently flexible; inherently flexible; appreciate appreciate

cultural diversitycultural diversity. —Judy B. Rosener, America’s Competitive Secret: Women Managers

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

Start:Start: 3 0f 11 3 0f 11

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

*AIM/September 2007*AIM/September 2007

I was trapped in a corner, in Sydney, by the CEO (woman) of I was trapped in a corner, in Sydney, by the CEO (woman) of a sizeable financial services firm. Given my beliefs, she said, a sizeable financial services firm. Given my beliefs, she said, What would I do if I was given the reins of a sizeable What would I do if I was given the reins of a sizeable company like hers. I far exceeded my 18 seconds (see company like hers. I far exceeded my 18 seconds (see above), and was finally was forced to admit that the only above), and was finally was forced to admit that the only thing I could conclude was a numeric conclusion. My goal thing I could conclude was a numeric conclusion. My goal was to attack the woman’s market opportunity. Yet the Exec was to attack the woman’s market opportunity. Yet the Exec Team I inherited had had 8 men and 3 women. I wouldn’t Team I inherited had had 8 men and 3 women. I wouldn’t dump any of the men, but my 18-month goal would be an dump any of the men, but my 18-month goal would be an exec team expanded to 18, of which 10 would be women. In a exec team expanded to 18, of which 10 would be women. In a nutshell, though eschewing quotas, I’d want my team to nutshell, though eschewing quotas, I’d want my team to more or less (mostly “more”) “look like” the market I was more or less (mostly “more”) “look like” the market I was planning to serve.planning to serve.

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??

Not a joke. Not a joke.

5454.. We Are All We Are All Unique. Unique.

53 = 53 = 5353

Beware Standardized EvalsBeware Standardized Evals:: One One size size NEVERNEVER fits fits all. One size fits all. One size fits

one.one. PeriodPeriod..

I am a public and noisy enemy of standardized employee I am a public and noisy enemy of standardized employee evaluation schemes, from the executive suite to the evaluation schemes, from the executive suite to the housekeeping department. In short, in business, as in the housekeeping department. In short, in business, as in the arts and sport and education, I think every member of the arts and sport and education, I think every member of the finance “company,” as on the football team or in the ballet finance “company,” as on the football team or in the ballet

company, is on a company, is on a Unique Learning Unique Learning TrajectoryTrajectory—and should be treated accordingly. That —and should be treated accordingly. That is 53 players (the # on an NFL roster) represent 53 is 53 players (the # on an NFL roster) represent 53 “projects,” with little in common from a development “projects,” with little in common from a development standpoint.standpoint.

53 Players =53 Players = 53 Projects = 53 Projects = 53 53 differentdifferent

success measures.success measures.

Promise #1:Promise #1: “Never, ever “Never, ever again will I evaluate again will I evaluate

anyone using a anyone using a standardized instrument standardized instrument

devised bydevised by a “professional” in a “professional” in inhuman Resources.”inhuman Resources.”

5555.. Capitalize Capitalize

on Strengths. on Strengths.

““The key difference between The key difference between checkers and chess is that in checkers and chess is that in checkers the pieces all move checkers the pieces all move

the same way, whereas in the same way, whereas in chess all the pieces move chess all the pieces move

differently. … differently. … Discover Discover what is uniwhat is uniqque about ue about

each each pperson and erson and cacappitalize on ititalize on it.”.” —Marcus —Marcus

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

“The mediocre manager believes The mediocre manager believes that most things are learnable and that most things are learnable and

therefore that the essence of therefore that the essence of management is to identify each management is to identify each

person’s weaker areas and eradicate person’s weaker areas and eradicate them. The great manager believes them. The great manager believes the opposite. the opposite. He believes that the He believes that the

most influential qualities of a person most influential qualities of a person are innate and therefore that the are innate and therefore that the

essence of management is to deploy essence of management is to deploy these innate qualities as effectively these innate qualities as effectively

as possible and so drive as possible and so drive performance.”performance.” —Marcus Buckingham, —Marcus Buckingham, The One The One

Thing You Need to KnowThing You Need to Know

5656.. Talent Talent = Brand.= Brand.

The Top Five “Revelations”The Top Five “Revelations”

Better talent wins.Better talent wins.

Talent management Talent management isis my job as leader. my job as leader.

Talented leaders are looking for the Talented leaders are looking for the moon and stars.moon and stars.

Over-deliver on people’s dreams – they Over-deliver on people’s dreams – they are are volunteersvolunteers..

Pump talent in at all levels, from all Pump talent in at all levels, from all conceivable sources, all the time.conceivable sources, all the time.

Source: Ed Michaels et al., Source: Ed Michaels et al., The War for TalentThe War for Talent

McKinsey Director Ed Michaels’ principal conclusions after McKinsey Director Ed Michaels’ principal conclusions after three years of study.three years of study.

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

Amen.Amen.

Brand Brand = =

Talent.Talent.

Amen.Amen.

BONUSBONUS

((5757.. Surviving Surviving a “black a “black swan.”)swan.”)

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

A “black swan,” courtesy Nassim Nicholas Taleb’s book, A “black swan,” courtesy Nassim Nicholas Taleb’s book, The The Black SwanBlack Swan, is an extreme and unpredictable event. (More or , is an extreme and unpredictable event. (More or less.) The 2008 financial and economic crisis fills that bill. In less.) The 2008 financial and economic crisis fills that bill. In my presentations I present a list of ideas about dealing with my presentations I present a list of ideas about dealing with the Black Swan The Black Swan 44 follows.the Black Swan The Black Swan 44 follows.

Black Swan Tactical RulesBlack Swan Tactical Rules

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

Black Swan Tactical RulesBlack Swan Tactical Rules

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

Black Swan Tactical RulesBlack Swan Tactical Rules

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

Black Swan Tactical RulesBlack Swan Tactical Rules

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

Black Swan Tactical RulesBlack Swan Tactical Rules

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

Black Swan Tactical RulesBlack Swan Tactical Rules

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

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

AppendicesAppendices..

EXCELLENCE. EXCELLENCE. ALWAYS.ALWAYS.Talent.Talent.

Leadership.Leadership.AppendicesAppendices..

Appendix Appendix ONEONE

Organizations exist Organizations exist to serve. to serve. Period.Period.Leaders live toLeaders live to serve. serve. Period.Period.Tom Peters/10 September 2007Tom Peters/10 September 2007

Australian Institute of Management:Australian Institute of Management:A Tribute to the Work of Peter DruckerA Tribute to the Work of Peter Drucker

““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.

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 Passionate servant leaders, determined to create a legacy of earthshaking transformation create a legacy of earthshaking transformation in their domainin their domain (a 600SF retail space, a 4-person training (a 600SF retail space, a 4-person training department, an urban school, a rural school, a city, a nation),department, an urban school, a rural school, a city, a nation),

create/ must create/ must necessarilynecessarily create organizations create organizations which are which are no less than Cathedrals in which the no less than Cathedrals in which the full and awesome power of the Imagination and full and awesome power of the Imagination and Spirit and native Entrepreneurial flairSpirit and native Entrepreneurial flair (We are (We are allall

entrepreneurs—Muhammad Yunus)entrepreneurs—Muhammad Yunus) of diverse individualsof diverse individuals ((100%100% creative Talent—from checkout to lab, from Apple to creative Talent—from checkout to lab, from Apple to

Wegmans to Jane’s one-person accountancy in Invercargill NZ)Wegmans to Jane’s one-person accountancy in Invercargill NZ)

is unleashed in passionate pursuit of jointly is unleashed in passionate pursuit of jointly perceived soaring purposeperceived soaring purpose (= win a Nobel peace prize (= win a Nobel peace prize like Yunus, or at least do something worthy of bragging about like Yunus, or at least do something worthy of bragging about

25 years from now to your grandkids)25 years from now to your grandkids) and personal and and personal and community and client service Excellence. community and client service Excellence.

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

organizations which are … organizations which are … no less than no less than Cathedrals in which the full and Cathedrals 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 of diverse individualsdiverse individuals is unleashedis unleashed

… In passionate pursuit of jointly perceived … In passionate pursuit of jointly perceived soaring purposesoaring purpose and personal and community and personal and community

and client service Excellence. and client service Excellence.

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

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

Entrepreneurial flairEntrepreneurial flair of of diverse individualsdiverse individuals is is

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

Such Talent unbound pursue QuestsSuch Talent unbound pursue Quests (rapidly (rapidly and relentlessly experimenting and failing and trying and relentlessly experimenting and failing and trying

again)again) which surprise and surpass and which surprise and surpass and redefine the expectations of the individual redefine the expectations of the individual and the servant leader alike. The collective and the servant leader alike. The collective “products” of these Quests offer the best “products” of these Quests offer the best chance of achieving rapid organizational chance of achieving rapid organizational

and individual adaptation to fast-and individual adaptation to fast-transforming environments, and provide transforming environments, and provide

the nutrition for continuing (and sometimes the nutrition for continuing (and sometimes dramatic) re-imaginings which re-draw the dramatic) re-imaginings which re-draw the

boundariesboundaries of industries and communities and human of industries and communities and human

achievement and the very conception ofachievement and the very conception of what is possible.what is possible.

In turn, such organizations, bent upon In turn, such organizations, bent upon excellence and re-imaginings based on excellence and re-imaginings based on

maximizing human creativity and achievement, maximizing human creativity and achievement, will will automaticallyautomatically create cadres of imaginative create cadres of imaginative and inspiring and determined servant leaders and inspiring and determined servant leaders who stick around to take the organization to who stick around to take the organization to

another level, and then another—or, equally or another level, and then another—or, equally or moremore important, leave to spread the virus of important, leave to spread the virus of Freedom-Creativity-Excellence-Transforming Freedom-Creativity-Excellence-Transforming

Purpose by pathfinding new streets, highways Purpose by pathfinding new streets, highways and alleyways which vitalize and revitalize, and alleyways which vitalize and revitalize,

through creative destruction, Entrepreneurial through creative destruction, Entrepreneurial Capitalism, which is the best hope for Capitalism, which is the best hope for maximizing collective human Freedom, maximizing collective human Freedom,

Happiness, Prosperity, Wellbeing—and, one Happiness, Prosperity, Wellbeing—and, one prays, some measure of Peace on earth.prays, some measure of Peace on earth.

… … such organizations, bent upon such organizations, bent upon excellence and re-imaginings based excellence and re-imaginings based

on maximizing human creativity on maximizing human creativity and achievement … vitalize and and achievement … vitalize and

revitalize, through creative revitalize, through creative destruction, Entrepreneurial destruction, Entrepreneurial

Capitalism, which is the best hope Capitalism, which is the best hope for maximizing collective human for maximizing collective human Freedom, Happiness, Prosperity, Freedom, Happiness, Prosperity, Wellbeing—and, one prays, some Wellbeing—and, one prays, some

measure of Peace on earth.measure of Peace on earth.

Excellence Is a Excellence Is a Universal Universal Striving.Striving.

If Not Excellence, If Not Excellence, What? What?

““ExcellenceExcellence can be obtained if you: can be obtained if you:

... ... care care moremore than others think than others think is wise;is wise; ...... risk risk moremore than others think than others think is safe;is safe; ...... dream dream moremore than others think than others think is practical;is practical; ...... expect expect moremore than others think than others think is possible.”is possible.”

Source: Anon.Source: Anon. (Posted @ tompeters.com by (Posted @ tompeters.com by K.Sriram, November 27, 2006 1:17 AM)K.Sriram, November 27, 2006 1:17 AM)

Appendix Appendix TWOTWO

The magic number The magic number 25.25.

Mbwa.Mbwa.Calendars Calendars nevernever lie. lie.

Excellence.Excellence.Always.Always.

MBWAMBWA**5,000 miles for a 5-minute face-to*5,000 miles for a 5-minute face-to

-face meeting (courtesy super--face meeting (courtesy super-agent Mark McCormick)agent Mark McCormick)

When Bob Waterman and I wrote When Bob Waterman and I wrote In Search of In Search of ExcellenceExcellence in 1982, business was “by the in 1982, business was “by the

numbers”—and the Americans were struggling (to numbers”—and the Americans were struggling (to put it mildly) with hands on, tactile stuff, like put it mildly) with hands on, tactile stuff, like

Japanese quality. Then, at Hewlett Packard, we were Japanese quality. Then, at Hewlett Packard, we were introduced to the famed “HP Way,” the centerpiece introduced to the famed “HP Way,” the centerpiece of which was in-touch management. HP had a term of which was in-touch management. HP had a term

for this … MBWA. for this … MBWA. (Managing By (Managing By Wandering Around.)Wandering Around.) Bob Bob

and I fell in immediate love. Not only was the idea and I fell in immediate love. Not only was the idea per se important and cool, but it symbolized per se important and cool, but it symbolized

everything we were coming to cherish—enterprises everything we were coming to cherish—enterprises where bosses-leaders were in immediate touch with where bosses-leaders were in immediate touch with

and emotionally attached to workers, customers,and emotionally attached to workers, customers, the product. The idea is as important or more the product. The idea is as important or more important in fast-paced 2007 as it was in 1982.important in fast-paced 2007 as it was in 1982.

““20-20-minute minute

rule”rule” —Craig Johnson/30 yrs

Craig Johnson, a famed Venture Craig Johnson, a famed Venture Capitalist for three decades … Capitalist for three decades …

refuses to invest in refuses to invest in companies that are more companies that are more than a 20-minute drive than a 20-minute drive

from his office.from his office. To guide them To guide them through the serpentine path ahead, he through the serpentine path ahead, he

insists that he must be in constant insists that he must be in constant touch as banker, advisor, friend. touch as banker, advisor, friend.

>70>70*

*Hank Paulson, China visits, Fortune 1127.06

China is clearly our most important China is clearly our most important economic partner. Our dialog with economic partner. Our dialog with

China was not what it might have been China was not what it might have been when Hank Paulson took over as when Hank Paulson took over as

Secretary of the Treasury. Immediate Secretary of the Treasury. Immediate improvement occurred for numerous improvement occurred for numerous

reasons, not least of which were reasons, not least of which were

Paulson’s Paulson’s SEVENTY TRIPSSEVENTY TRIPS to to China while at Goldman Sachs. China while at Goldman Sachs.

““I call 60 CEOs I call 60 CEOs [in [in

the first week of the year]the first week of the year] to to wish them happy wish them happy

New Year. …”New Year. …”

—Hank Paulson, former CEO, Goldman —Hank Paulson, former CEO, Goldman SachsSachs

Source: Fortune, “Secrets of Greatness,” 0320.05

MBWA, Grameen Style!MBWA, Grameen Style!“Conventional banks ask their clients to come to their “Conventional banks ask their clients to come to their

office. It’s a terrifying place for the poor and illiterate. … office. It’s a terrifying place for the poor and illiterate. …

The entire Grameen Bank The entire Grameen Bank system runs on the principle system runs on the principle

that people should not come to that people should not come to the bank, the bank should go the bank, the bank should go

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

rules of the Grameen Bank. … It is essential that [those rules of the Grameen Bank. … It is essential that [those setting up a new village Branch] have no office and no setting up a new village Branch] have no office and no place to stay. The reason is to make us as different as place to stay. The reason is to make us as different as

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

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

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

Gandhi

““It’s It’s alwaalwayyss showtime.”showtime.”

—David D’Alessandro, Career Warfare

“… “… a blinding a blinding flash of the flash of the

obvious”obvious” —Manny Garcia—Manny Garcia

“All this” [this little riff] is indeed, as seminar participant and leading Burger King franchisee Many Garcia once said to me,

“obvious.”* But observation over four decades** suggests that amidst the hubbub and travails of a typical day’s work, the so-

called obvious is often-usually left unattended. For perfectly good reasons, another week passes without a visit to our equivalent of

the Starbucks shops or HP R&D labs, without the equivalent to Hank Paulsen’s “How ya doin’?” call to a key customer. My [Tom

Peters] Job One in life? Remind busy folks of the obvious!

*Manny Garcia/1983: “Tom, I hope you won’t be insulted when I say this was the best seminar I’ve ever been to—and it was

a blinding flash of the obvious.”

**I had two commanding officers during my two Vietnam tours in U.S. Naval Mobile Construction Battalion NINE (1966-1968). One was a Howard Shultz look-alike—instinctively in the field. The

other was an in the office “leader.” The one produced. The other didn’t. At age 24 I learned an incredible life lesson, though I

couldn’t describe it well until tripping over HP’s MBWA/Managing By Wandering Around.

Appendix Appendix THREETHREE

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

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

or …or …

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

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

feature article by my friend Rich D’Aveni. His work is uniformly feature article by my friend Rich D’Aveni. His work is uniformly good—and I have said as much publicly on several occasions good—and I have said as much publicly on several occasions dating back 15 years. I’m sure this article is good, too—though dating back 15 years. I’m sure this article is good, too—though

I didn’t read it. In fact it triggered a furious negative “Tom I didn’t read it. In fact it triggered a furious negative “Tom reaction” as my wife calls it. Of course I believe you should reaction” as my wife calls it. Of course I believe you should

worry about your “competitive position.”worry about your “competitive position.” But instead of But instead of obsessing on competitive position and other obsessing on competitive position and other

abstractions, as the B-schools and abstractions, as the B-schools and consultants would always have us do, I consultants would always have us do, I

instead wondered about some “practical instead wondered about some “practical stuff” which I believe is more important to stuff” which I believe is more important to

the short- and long-term health of the the short- and long-term health of the enterprise, tiny or enormous.enterprise, tiny or enormous.

““Unfortunately many Unfortunately many leaders of major leaders of major

companies believe their companies believe their job is to create the job is to create the

strategy, organization strategy, organization and organization and organization

processes—remaining processes—remaining aloof from the people aloof from the people doing the work.”doing the work.” —George —George

Kohlrieser, Kohlrieser, Hostage at the Table Hostage at the Table (GK is, among other things, (GK is, among other things, a hostage negotiator with a 95% success rate)a hostage negotiator with a 95% success rate)

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

3. Have you in the last 60-90 days … had a seminar in which several folks from the 3. Have you in the last 60-90 days … had a seminar in which several folks from the customer’s operation (different levels, different functions, different divisions) interacted, customer’s operation (different levels, different functions, different divisions) interacted, via facilitator, with various of your folks?via facilitator, with various of your folks?

4. 4. Have you thanked a front-line employee for a Have you thanked a front-line employee for a small act of helpfulness … in the last three days?small act of helpfulness … in the last three days?5. Have you thanked a front-line employee for a small act of helpfulness … in the 5. Have you thanked a front-line employee for a small act of helpfulness … in the last three last three hourshours??6. Have you thanked a frontline employee for carrying around a great 6. Have you thanked a frontline employee for carrying around a great attitude attitude … today?… today?7. Have you in the last week recognized—publicly—one of your folks for a small act of 7. Have you in the last week recognized—publicly—one of your folks for a small act of cross-functional co-operationcross-functional co-operation??8. Have you in the last week recognized—publicly—one of “their” folks (another 8. Have you in the last week recognized—publicly—one of “their” folks (another function) for a small act of cross-functional co-operation?function) for a small act of cross-functional co-operation?9. Have you invited in the last month a leader of 9. Have you invited in the last month a leader of another functionanother function to your weekly team to your weekly team priorities meeting?priorities meeting?10. Have you personally in the last week-month called-visited an internal or external 10. Have you personally in the last week-month called-visited an internal or external customer to customer to sort out, inquire, or apologizesort out, inquire, or apologize for some little or big thing that went awry? for some little or big thing that went awry? (No reason for doing so? If true—in your mind—then you’re more out of touch than I (No reason for doing so? If true—in your mind—then you’re more out of touch than I dared imagine.)dared imagine.)

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

Blog1231.07

FLASH!FLASH!FLASH!FLASH!FLASH!FLASH!FOR IMMEDIATE ACTION!FOR IMMEDIATE ACTION!FOR IMMEDIATE ACTION!FOR IMMEDIATE ACTION!FOR IMMEDIATE ACTION!FOR IMMEDIATE ACTION!OLD YEAR’S RESOLUTION!OLD YEAR’S RESOLUTION!Call (C-A-L-L!) (NOT E-MAIL!) 25-50 (NO LESS THAN 25) Call (C-A-L-L!) (NOT E-MAIL!) 25-50 (NO LESS THAN 25) people … TODAY people … TODAY ** …to thank them for their support this …to thank them for their support this year (2007) …year (2007) …and wish them and their families and colleagues a and wish them and their families and colleagues a Happy 2008!Happy 2008! ** *** **** ***** ******

*Today = TODAY = N-O-W (not “within the hour”)**Remember: ROIR > ROI. ROIR = Return On Investment in Relationships. Success = ƒ(Relationships).***This is the most important piece of advice I have provided this year.****This is … Not Optional.*****Trust me: This is fun!!!!******Trust me: This “works.”

Happy 2008!!!Happy 2008!!!

I posted this at I posted this at tompeters.comtompeters.com on New on New

Year’s Eve 2007.Year’s Eve 2007.

11. Have you in the last two days had a chat with someone (a couple of levels down?) about 11. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines concerning a project’s next steps?specific deadlines concerning a project’s next steps?12. Have you in the last two days had a chat with someone (a couple of levels down?) about 12. Have you in the last two days had a chat with someone (a couple of levels down?) about specific deadlines concerning a project’s next steps … and what specifically specific deadlines concerning a project’s next steps … and what specifically you can do to you can do to remove a hurdleremove a hurdle? (“Ninety percent of what we call management consists of making it difficult for ? (“Ninety percent of what we call management consists of making it difficult for people to get things done.”—Peter “His eminence” Drucker.)people to get things done.”—Peter “His eminence” Drucker.)13. Have you celebrated in the last week a “small” (or large!) 13. Have you celebrated in the last week a “small” (or large!) milestone milestone reached? (I.e., are you a reached? (I.e., are you a milestone fanatic?)milestone fanatic?)14. Have you in the last week or month revised some estimate in the “wrong” direction and 14. Have you in the last week or month revised some estimate in the “wrong” direction and apologized for making a lousy estimate? (Somehow you must publicly apologized for making a lousy estimate? (Somehow you must publicly reward the telling of reward the telling of difficult truthsdifficult truths.).)

15. 15. Have you installed in your tenure a very Have you installed in your tenure a very comprehensive customer satisfaction scheme comprehensive customer satisfaction scheme for all for all internalinternal customers? customers? (With major consequences for hitting or (With major consequences for hitting or

missing the mark.)missing the mark.)

16. Have you in the last six months had a week-long, visible, very intensive 16. Have you in the last six months had a week-long, visible, very intensive visit-“tour”visit-“tour” of of external customers?external customers?17. Have you in the last 60 days called an abrupt halt to a meeting and “ordered” everyone to get 17. Have you in the last 60 days called an abrupt halt to a meeting and “ordered” everyone to get out of the office, and “into the field” and in the out of the office, and “into the field” and in the next eight hoursnext eight hours, after asking those involved, fixed , after asking those involved, fixed (f-i-x-e-d!) a nagging “small” problem through practical action?(f-i-x-e-d!) a nagging “small” problem through practical action?18. Have you in the last week had a rather thorough discussion of a “cool design thing” someone 18. Have you in the last week had a rather thorough discussion of a “cool design thing” someone has come across—away from your industry or function—at a Web site, in a product or its has come across—away from your industry or function—at a Web site, in a product or its packaging? packaging? 19. Have you in the last two weeks had an informal meeting—at least an hour long—with a 19. Have you in the last two weeks had an informal meeting—at least an hour long—with a frontline employee to discuss things we do right, things we do wrong, what it would take to meet frontline employee to discuss things we do right, things we do wrong, what it would take to meet your mid- to long-term aspirations?your mid- to long-term aspirations?20. Have you had in the last 60 days had a general meeting to discuss “things we do wrong” … 20. Have you had in the last 60 days had a general meeting to discuss “things we do wrong” … that we can fix in the next that we can fix in the next fourteen daysfourteen days??

UniCredit Group/UniCredit Group/ UniCredito Italiano* ** UniCredito Italiano* **

—3—3rdrd party measurement party measurement—Customer-initiated—Customer-initiated measurement measurement—Primary $$$$ incentives—Primary $$$$ incentives—“Factories”—“Factories”—Primary Corporate Initiative—Primary Corporate Initiative—Etc—Etc*#13*#13**TP/#1**TP/#1

The director of staff services The director of staff services at the giant financial services at the giant financial services

firm, UniCredit Group, firm, UniCredit Group, installed the most thorough installed the most thorough

internal customer satisfaction internal customer satisfaction measures scheme I have seenmeasures scheme I have seen—with exceptional rewards for —with exceptional rewards for

those who make the grade those who make the grade with their internal customers. with their internal customers.

21. Have you had in the last year a one-day, intense offsite with each (?) of your 21. Have you had in the last year a one-day, intense offsite with each (?) of your internal customers—followed by a big celebration of “things gone right”?internal customers—followed by a big celebration of “things gone right”?22. Have you in the last week pushed someone to do some family thing that you fear 22. Have you in the last week pushed someone to do some family thing that you fear might be overwhelmed by deadline pressure?might be overwhelmed by deadline pressure?23. 23. Have you learned the names of the children of everyone who reports to you?Have you learned the names of the children of everyone who reports to you? (If (If not, you have six months to fix it.)not, you have six months to fix it.)24. Have you taken in the last month an interesting-24. Have you taken in the last month an interesting-weirdweird outsider to lunch? outsider to lunch?25. Have you in the last month invited an interesting-weird outsider to sit in on an25. Have you in the last month invited an interesting-weird outsider to sit in on animportant meeting?important meeting?26. Have you in the last three days discussed something interesting, beyond your 26. Have you in the last three days discussed something interesting, beyond your industry, that you ran across in a meeting, reading, etc?industry, that you ran across in a meeting, reading, etc?27. Have you in the last 24 hours injected into a meeting “I ran across this interesting 27. Have you in the last 24 hours injected into a meeting “I ran across this interesting idea in [strange place]”?idea in [strange place]”?28. Have you in the last two weeks asked someone to report on something, anything 28. Have you in the last two weeks asked someone to report on something, anything that constitutes an act of brilliant service rendered in a “trivial” situation—restaurant, that constitutes an act of brilliant service rendered in a “trivial” situation—restaurant, car wash, etc? (And then discussed the relevance to your work.)car wash, etc? (And then discussed the relevance to your work.)

29. 29. Have you in the last 30 days examined in detail (hour Have you in the last 30 days examined in detail (hour by hour) your calendar to evaluate the degree “time by hour) your calendar to evaluate the degree “time actually spent” mirrors your “espoused priorities”? actually spent” mirrors your “espoused priorities”? (And repeated this exercise with everyone on team.)(And repeated this exercise with everyone on team.)

30. Have you in the last two months had a presentation to the group by a “weird” 30. Have you in the last two months had a presentation to the group by a “weird” outsider? outsider?

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

All we have is our time. The All we have is our time. The

way we spend our time way we spend our time isis

our priorities, our priorities, isis our our “strategy.”“strategy.” Your calendar Your calendar knows what you really knows what you really care about. Do you?care about. Do you?

31. Have you in the last two months had a presentation to the group by a customer, 31. Have you in the last two months had a presentation to the group by a customer, internal customer, vendor featuring “working folks” 3 or 4 levels down in the vendor internal customer, vendor featuring “working folks” 3 or 4 levels down in the vendor organization? organization? 32. Have you in the last two months had a presentation to the group of a cool, 32. Have you in the last two months had a presentation to the group of a cool, beyond-our-industry ideas by two of your folks?beyond-our-industry ideas by two of your folks?33. Have you at every meeting today (and forever more) re-directed the conversation 33. Have you at every meeting today (and forever more) re-directed the conversation to the practicalities of implementation concerning some issue before the group?to the practicalities of implementation concerning some issue before the group?34. Have you at every meeting today (and forever more) had an end-of-meeting 34. Have you at every meeting today (and forever more) had an end-of-meeting discussion on “action items to be dealt with in the next 4, 48 hours? (And then made discussion on “action items to be dealt with in the next 4, 48 hours? (And then made this list public—and followed up in 48 hours.) And made sure everyone has at least this list public—and followed up in 48 hours.) And made sure everyone has at least one such item.)one such item.)35. Have you had a discussion in the last six months about what it would take to get 35. Have you had a discussion in the last six months about what it would take to get recognition in local-national poll of recognition in local-national poll of “best places to work”?“best places to work”?36. Have you in the last month approved a 36. Have you in the last month approved a cool-different training coursecool-different training course for one for one of your folks?of your folks?

37. 37. Have you in the last month Have you in the last month taught taught a front-line a front-line training course?training course?38. Have you in the last week discussed the idea of 38. Have you in the last week discussed the idea of ExcellenceExcellence? (What it means, how? (What it means, howto get there.)to get there.)39. Have you in the last week discussed the idea of 39. Have you in the last week discussed the idea of “Wow”?“Wow”? (What it means, how (What it means, howto inject it into an ongoing “routine” project.)to inject it into an ongoing “routine” project.)40. Have you in the last 45 days assessed some major process in terms of the details 40. Have you in the last 45 days assessed some major process in terms of the details of the “experience,” as well as results, it provides to its external or internal of the “experience,” as well as results, it provides to its external or internal customers?customers?

41. Have you in the last month had one of your folks attend a meeting you were supposed to go 41. Have you in the last month had one of your folks attend a meeting you were supposed to go to which gives them unusual exposure to senior folks?to which gives them unusual exposure to senior folks?42. Have you in the last 60 (30?) days sat with a trusted friend or “coach” to discuss your 42. Have you in the last 60 (30?) days sat with a trusted friend or “coach” to discuss your “management style”—and its long- and short-term impact on the group?“management style”—and its long- and short-term impact on the group?

43. 43. Have you in the Have you in the last three dayslast three days considered a professional considered a professional relationship that was a little rocky and made a call to the person relationship that was a little rocky and made a call to the person involved to discuss issues and smooth the waters? (Taking the involved to discuss issues and smooth the waters? (Taking the “blame,” fully deserved or not, for letting the thing-issue fester.)“blame,” fully deserved or not, for letting the thing-issue fester.)

44. Have you in the last … 44. Have you in the last … two hourstwo hours … stopped by someone’s (two-levels “down") office- … stopped by someone’s (two-levels “down") office-workspace for 5 minutes to ask “What do you think?” about an issue that arose at a more or workspace for 5 minutes to ask “What do you think?” about an issue that arose at a more or less just completed meeting? (And then stuck around for 10 or so minutes to listen—and less just completed meeting? (And then stuck around for 10 or so minutes to listen—and visibly taken notes.)visibly taken notes.)45. Have you … in the last day … looked around you to assess whether the diversity pretty 45. Have you … in the last day … looked around you to assess whether the diversity pretty accurately maps the diversity of the market being served? (And …) accurately maps the diversity of the market being served? (And …) 46. Have you in the last day at some meeting gone out of your way to make sure that a 46. Have you in the last day at some meeting gone out of your way to make sure that a normally reticent person was engaged in a conversation—and then thanked him or her, normally reticent person was engaged in a conversation—and then thanked him or her, perhaps privately, for their contribution?perhaps privately, for their contribution?47. Have you during your tenure instituted very public (visible) presentations of performance?47. Have you during your tenure instituted very public (visible) presentations of performance?48. Have you in the last four months had a session specifically aimed at checking on the 48. Have you in the last four months had a session specifically aimed at checking on the “corporate culture” and the degree we are true to it—with all presentations by relatively junior “corporate culture” and the degree we are true to it—with all presentations by relatively junior folks, including front-line folks? (And with a determined effort to keep the conversation folks, including front-line folks? (And with a determined effort to keep the conversation restricted to “real world” “small” cases—not theory.) restricted to “real world” “small” cases—not theory.) 49. Have you in the last six months talked about the 49. Have you in the last six months talked about the Internal Brand PromiseInternal Brand Promise??50. Have you in the last year had a full-day off site to talk about individual (and group) 50. Have you in the last year had a full-day off site to talk about individual (and group) aspirations?aspirations?

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.

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

RReturn eturn OOn n

IInvestment In nvestment In

RRelationshipselationships

Job Job One.One.

““You You must must

care.”care.” —General —General

Melvin ZaisMelvin Zais

““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

Appendix Appendix FOURFOUR

TheThe ““PSF35PSF35””:: Thirty-FiveThirty-Five

Professional Service Professional Service Firm Marks of ExcellenceFirm Marks of Excellence

The PSF35: The Work & The Legacy

1.1. CRYSTAL CLEAR POINT OF VIEWCRYSTAL CLEAR POINT OF VIEW

(E very Practice Group: “If you can’t explain your position in eight(E very Practice Group: “If you can’t explain your position in eight words or less, you don’t have a position”—Seth Godin)words or less, you don’t have a position”—Seth Godin)2. 2. DRAMATIC DIFFERENCEDRAMATIC DIFFERENCE (“We are the only ones who do what (“We are the only ones who do what we do”—Jerry Garcia)we do”—Jerry Garcia)3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)4. Eye-Appetite for Game-changer Projects (Excellence at Assembling4. Eye-Appetite for Game-changer Projects (Excellence at Assembling “ “Best Team”—Fast) Best Team”—Fast) 5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change the World)the World)6. Small “Uneconomic” Clients with Big Aims6. Small “Uneconomic” Clients with Big Aims7. Life Is Too Short to Work with Jerks (Fire lousy clients)7. Life Is Too Short to Work with Jerks (Fire lousy clients)8. 8. OBSESSED WITH LEGACYOBSESSED WITH LEGACY (Practice Group and Individual: “Dent the (Practice Group and Individual: “Dent the Universe”—Steve Jobs)Universe”—Steve Jobs)9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/ I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ”I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ”10. Consistent with #9 above … 10. Consistent with #9 above … DO NOT SHY AWAY FROM THEDO NOT SHY AWAY FROM THE WORD (IDEA) “RADICAL”WORD (IDEA) “RADICAL”

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

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

Pointed Pointed Point of Point of View!View!

R.POV8R.POV8**Remarkable Point Of View/8 Words or less/“If you can’t state your

position in eight words or less you don’t have a position.”—SG

“If you can’t write your movie idea on

the back of a back of a business cardbusiness card,,

you ain’t got a movie.” —Samuel Goldwyn

The PSF35: The Client Experience11. Always team with client: “full partners in 11. Always team with client: “full partners in achieving memorable results” achieving memorable results” (Wanted: “Chimeras(Wanted: “Chimeras of Moonstruck Minds”!) of Moonstruck Minds”!)12. We will seek assistance Anywhere to assemble the Best-in-12. We will seek assistance Anywhere to assemble the Best-in- Planet Team for the Project Planet Team for the Project13. Client Team Members routinely declare that working with us13. Client Team Members routinely declare that working with us was “the Peak Experience of my Career” was “the Peak Experience of my Career”14. The job’s not done until implementation is14. The job’s not done until implementation is “100.00% complete” (Those who don’t “get it” must go) “100.00% complete” (Those who don’t “get it” must go)

15.15. IMPLEMENTATION IS IMPLEMENTATION IS NOTNOT COMPLETECOMPLETE UNTIL UNTIL THE CLIENT HAS EXPERIENCED “CULTURE THE CLIENT HAS EXPERIENCED “CULTURE CHANGE” CHANGE”16.16. IMPLEMENTATION IS IMPLEMENTATION IS NOTNOT COMPLETECOMPLETE UNTIL UNTIL SIGNIFICANT “TECHNOLOGY TRANSFER HAS SIGNIFICANT “TECHNOLOGY TRANSFER HAS TAKEN PLACE-ROOT TAKEN PLACE-ROOT (“Teach a man to fish …”)(“Teach a man to fish …”)

17.17. The Final Exam: The Final Exam: DID WE MAKE A DRAMATIC,DID WE MAKE A DRAMATIC, LASTING, GAME-CHANGING DIFFERENCE? LASTING, GAME-CHANGING DIFFERENCE?

“The business of selling is not just about matching viable solutions to the customers that require

them. It’s eIt’s eqqualluallyy about mana about managginingg the chanthe changge e pprocess the customer rocess the customer

will need to will need to ggo through to o through to imimpplement the solution and lement the solution and

achieve the value achieve the value ppromised byromised by the solutionthe solution.”*

(*E.g.: CRM failure rate/Gartner: 70%) —Jeff Thull, The Prime Solution: Close the Value Gap,

Increase Margins, and Win the Complex Sale

UniCredit Group/UniCredit Group/ UniCredito Italiano* ** UniCredito Italiano* **

—3—3rdrd party measurement party measurement—Customer-initiated—Customer-initiated measurement measurement—Primary $$$$ incentives—Primary $$$$ incentives—“Factories”—“Factories”—Primary Corporate Initiative—Primary Corporate Initiative—Etc—Etc*#13*#13**TP/#1**TP/#1

The PSF35: The People & The Leadership

18. 18. TALENT FANATICSTALENT FANATICS (“Best-Coolest place to work”) (PERIOD) (“Best-Coolest place to work”) (PERIOD)19. 19. EYE FOR THE PECULIAREYE FOR THE PECULIAR (Hiring: Go beyond “same old, (Hiring: Go beyond “same old, same old”) same old”) 20. Early Opportunities (vs. “Wait your turn”) 20. Early Opportunities (vs. “Wait your turn”) 21. Up or Out (Based on “Legacy”/Mentoring as much as21. Up or Out (Based on “Legacy”/Mentoring as much as “ “Billings”/“Rainmaking”)Billings”/“Rainmaking”)22. Slide the Old Aside/Make Room for Youth (Find oldsters22. Slide the Old Aside/Make Room for Youth (Find oldsters new roles?)new roles?)23. 23. TALENT IS OBSESSED WITH RENEWAL FROM DAY #1 TO TALENT IS OBSESSED WITH RENEWAL FROM DAY #1 TO DAY #“R” DAY #“R” [R = Retirement][R = Retirement]24. Office/Practice Leaders Evaluated Primarily on 24. Office/Practice Leaders Evaluated Primarily on Mentoring-Team Building SkillsMentoring-Team Building Skills25. 25. A “PROPRIETARY” TALENT DEVELOPMENT PROCESS (GE)A “PROPRIETARY” TALENT DEVELOPMENT PROCESS (GE)26. Team Leadership Skills Valued Early26. Team Leadership Skills Valued Early27. Partner with B.I.W. [Best In World] Outsiders as Needed27. Partner with B.I.W. [Best In World] Outsiders as Needed and to Infuse Different Viewsand to Infuse Different Views

The PSF35: The Firm & The Brand

28. 28. EAT-SLEEP-BREATHE-OOZE INTEGRITYEAT-SLEEP-BREATHE-OOZE INTEGRITY (“My life (“My life is my message”—Gandhi)is my message”—Gandhi)

29. Excellence+ in 29. Excellence+ in EXECUTIONEXECUTION … 100.00% of the Time… 100.00% of the Time30. “Drop everything”/“Swarm” to Support a Harried-On30. “Drop everything”/“Swarm” to Support a Harried-On The Verge TeamThe Verge Team

31. 31. SPEND ON R&D LIKE A TECH FIRM.SPEND ON R&D LIKE A TECH FIRM.32. 32. A PROPRIETARY METHODOLOGYA PROPRIETARY METHODOLOGY (FBR, McKinsey, (FBR, McKinsey, Chiat Day, IDEO, old EDS)Chiat Day, IDEO, old EDS)

33. 33. BRAND MANIACSBRAND MANIACS (Organize Around a Point of View Worth(Organize Around a Point of View Worth BROADCASTING)BROADCASTING)

3434. . PASSION! ENTHUSIASM!PASSION! ENTHUSIASM!

35.35. EXCELLENCE. ALWAYS.EXCELLENCE. ALWAYS.

““P.S.F.”: SummaryP.S.F.”: Summary

H.V.A. Projects (100%)H.V.A. Projects (100%)Pioneer ClientsPioneer Clients

WOW Work (see below)WOW Work (see below)Hot “Talent” (see below)Hot “Talent” (see below)“Adventurous” “culture”“Adventurous” “culture”Proprietary Point of View Proprietary Point of View

(Methodology)(Methodology)W.W.P.F./Work Worth Paying For W.W.P.F./Work Worth Paying For (100%)/Outside Clients (25%+) (100%)/Outside Clients (25%+)

When: Now!When: Now!

(1) Translate ALL departmental(1) Translate ALL departmental activities into activities into discretediscrete W.W.P.F. “Products.” W.W.P.F. “Products.”(2) (2) 100% go on the Web.100% go on the Web.

(3)(3) Non-awesome areNon-awesome are outsourced outsourced (75%??). (75%??).

(4)(4) Remaining Remaining “Centers of “Centers of Excellence” are retained & Excellence” are retained & leveraged to the hilt! leveraged to the hilt!

BMW’s BMW’s Designworks/USA: Designworks/USA:

>50%>50% from from

outside workoutside work

Static/Imitative

Integrity.Integrity.Quality.Quality.

Continuous Improvement.Continuous Improvement.Superior Service Superior Service (Exceeds Expectations.)(Exceeds Expectations.)

Completely Satisfactory Transaction.Completely Satisfactory Transaction.Smooth Evolution.Smooth Evolution.

Market Share.Market Share.

Dynamic/Different

Dramatic Difference!Dramatic Difference!Disruptive!Disruptive!

Insanely Great! Insanely Great! (Quality++++)(Quality++++)

Life-(Industry-)changing Experience!Life-(Industry-)changing Experience!Game-changing!Game-changing!

WOW!WOW!Surprise!Surprise!Delight!Delight!

Breathtaking!Breathtaking!Punctuated Equilibrium!Punctuated Equilibrium!

Market Creation!Market Creation!

G.M.G.M. = The Recruitment and = The Recruitment and Development of Top Talent. Development of Top Talent.

[Period!][Period!]

V.C.V.C. = Bets on “Talent.” Bets = Bets on “Talent.” Bets on Projects. [Period!]on Projects. [Period!]

Dept. Head I = Dept. Head I = Sports G.M.Sports G.M.

Dept. Head II = Dept. Head II = V.C.V.C.

EXCELLENCEEXCELLENCE = =

Flawless Flawless EXECUTIONEXECUTION + Continuous + Continuous IMPROVEMENTIMPROVEMENT

+ Brilliantly Trained + Brilliantly Trained PEOPLEPEOPLE

+Gamechanging Gamechanging QUESTSQUESTS + +

WEIRD WEIRD Rosters +Rosters + GASPWORTHYGASPWORTHY Results Results

EXCELLENCEEXCELLENCE = =

Flawless Flawless EXECUTIONEXECUTION + Continuous + Continuous IMPROVEMENTIMPROVEMENT

+ Brilliantly Trained + Brilliantly Trained PEOPLEPEOPLE

+Gamechanging Gamechanging QUESTSQUESTS + +

WEIRD WEIRD Rosters +Rosters + GASPWORTHYGASPWORTHY Results Results

Psf.Psf.Bedrock.Bedrock.

PSFPSF/Professional Service Firm/Beliefs/Professional Service Firm/Beliefs

ProfessionProfession: : Calling/Passion to make aCalling/Passion to make a difference/Excellence difference/Excellence (always)(always)

point of viewpoint of view: : know exactly what weknow exactly what we stand for/ stand for/ “Dramatic “Dramatic Difference”Difference”

ClientClient: : enduring, test-the-limits enduring, test-the-limits relationship/Trusted advisor relationship/Trusted advisor

SolutionSolution: : Rock His-her World/ Rock His-her World/ “wow”“wow”// implemented “Culture implemented “Culture change”/change”/ >>>>>> “satisfaction” >>>>>> “satisfaction”

“Purchasing Officer” Thrust #1: Cost (at All Costs*) Minimization

Professional? Or/to: FullFull Partner-Partner-Leader in Lifetime Leader in Lifetime

Value-added Value-added MaximizationMaximization?

(*Lopez: “Arguably ‘Villain #1’ in GM tragedy”/Anon VSE-Spain)

Fleet Manager

Rolling Stock Cost Minimization Officer

vs/or

Chief of Fleet LifetimeChief of Fleet Lifetime Value Value MaximizationMaximization

StrategicStrategic Supply-chain Executive Supply-chain Executive

Customer Customer ExperienceExperience Director Director (via drivers)

22mm3838ss

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

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

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

PSF Transformation: Credit Department/Trek

Was Is

Credit Dept Financial ServicesFinancial Services

Hammer on dealers until Make dealers successful so theyMake dealers successful so theythey pay CAN payCAN pay

AR sold to 3rd party Trek is the commercial financialTrek is the commercial financialcommercial co. CompanyCompany

23 employees 12 employees12 employees

Oversee peak AR of $70M Oversee peak AR of $160MOversee peak AR of $160M

Identify risky dealers Identify opportunitiesIdentify opportunities

Cost Center Profit CenterProfit Center

No products Products: Consulting, MC/Visa,Products: Consulting, MC/Visa, Stored value of gift cards, Gift cardStored value of gift cards, Gift card peripherals, Online paymentsperipherals, Online payments

Source: John Burke/0330.06

Photographer: Louise Roach

Big Idea:

“Corporation” as “Corporation” as

Mega-“PSFMega-“PSF”” (Professional (Professional Service Firm*)Service Firm*)

* “Virtual” Collection of Entrepreneurially-minded Professionals (“Talent”/“Roster”)

Creating/Applying Intellectual Capital (“Work Product”)

Are you the …

““PrinciPrincippal al EnEnggineine of of

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

Core Mechanism:“Game-changing Solutions”

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

+

Wow! Project(s)Wow! Project(s) (“Different” vs “Better”/The Work)

==

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

=

“Corporation” as“Corporation” as

“Mega-“Mega-PSF”PSF”

Photographer: Mike Brake

The FEVP/Fundamental EnterThe FEVP/Fundamental Enterpprise Value-Added rise Value-Added Proposition-EProposition-Eqquation/Mark2007uation/Mark2007

(1) 100% (1) 100% “WOW PROJECTS”“WOW PROJECTS” (New Org “DNA”/“The Work”)(New Org “DNA”/“The Work”)

++ (2) Incredible (2) Incredible “TALENT”“TALENT” Transformed intoTransformed into (3) Entrepreneurial (3) Entrepreneurial “BRAND YOUs”“BRAND YOUs” and and

(4) Given Room-to-Roam & Launched on(4) Given Room-to-Roam & Launched on Awesome Awesome “QUESTS”“QUESTS”

== (5) Internal (5) Internal ““Rockin’ PSFs”Rockin’ PSFs” (Staff Depts. Morphed into (Staff Depts. Morphed into

Wildly Innovative Wildly Innovative PProfessional rofessional SService ervice FFirms) … irms) … (6) Which Coalesce to Transform the FEVP/Fundamental Enterprise (6) Which Coalesce to Transform the FEVP/Fundamental Enterprise

Value Proposition from “Superior Products & Services” to Value Proposition from “Superior Products & Services” to “ENCOMPASSING SOLUTIONS” “ENCOMPASSING SOLUTIONS” &&

“GAME-CHANGING CLIENT“GAME-CHANGING CLIENT SUCCESS” SUCCESS”

Big Idea/“Meta”-Idea/Premier “Engine of Value Added”

(1) (1) The TalentThe Talent: “Best Roster” of Entrepreneurial-: “Best Roster” of Entrepreneurial-minded minded Brand Yous.Brand Yous.

(2) (2) The (Virtual) OrganizationThe (Virtual) Organization: Internal or : Internal or External External “PSF”/Professional Service Firm“PSF”/Professional Service Firm

working with “Best Anywhere” = Engine of working with “Best Anywhere” = Engine of Value Added through the Application of Creative Value Added through the Application of Creative

“Intellectual Capital”“Intellectual Capital”

(3) (3) The Work ProductThe Work Product: “Game Changer”/ : “Game Changer”/ “Gaspworthy” “Gaspworthy” WOW ProjectsWOW Projects

“… “… but I'm having a hard timebut I'm having a hard time imagining 300 million Brand Yous.”imagining 300 million Brand Yous.”

““Would you call a clerk in a purchasing Would you call a clerk in a purchasing department at a big insurance company department at a big insurance company

"brand you"? Probably not. But what "brand you"? Probably not. But what about a single Hispanic Mom, age 32, about a single Hispanic Mom, age 32,

raising 3 kids in the LA area and holding raising 3 kids in the LA area and holding 2.5 jobs to do so? I'd call her a hero, self-2.5 jobs to do so? I'd call her a hero, self-

reliant, resilient--and a Brand You!”reliant, resilient--and a Brand You!”

Posted by tom peters at November 20, 2006 10:16 PM

AppendixAppendix FIVEFIVE

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

Functional Functional EffectivenessEffectiveness and and

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

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

X X =XFX*=XFX*

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

A 2007 letter from John Hennessy, president ofA 2007 letter from John Hennessy, president of (1) (1) StanfordStanford University, to alumni laid out his long-term “vision” University, to alumni laid out his long-term “vision”

for that esteemed institution. The core of the vision’s promise for that esteemed institution. The core of the vision’s promise was more was more multi-disciplinary researchmulti-disciplinary research, aimed at solving some of , aimed at solving some of

the world’s complex systemic problems. (2) The chief of the world’s complex systemic problems. (2) The chief of GlaxoSmithKlineGlaxoSmithKline, a few years ago, announced a “revolutionary” , a few years ago, announced a “revolutionary”

new drug discovery process—human-scale new drug discovery process—human-scale centers of centers of interdisciplinary excellence, called Centers of Excellence in interdisciplinary excellence, called Centers of Excellence in Drug DiscoveryDrug Discovery. (It worked.) (3) Likewise, amidst a study of . (It worked.) (3) Likewise, amidst a study of organization effectiveness in the organization effectiveness in the oil industry’soil industry’s exploration exploration

sector, I came across a particularly successful firm—one key to sector, I came across a particularly successful firm—one key to that success was their that success was their physical and organizationphysical and organizationalal mingling of mingling of

formerly warring (two sets of prima donnas) geologists and formerly warring (two sets of prima donnas) geologists and geophysicistsgeophysicists. .

(4) The cover story in (4) The cover story in Dartmouth MedicineDartmouth Medicine, the , the Dartmouth med school magazine, featured a Dartmouth med school magazine, featured a

“revolutionary” approach, “revolutionary” approach, “microsystems,”“microsystems,” as “the big as “the big idea that [might] save U.S. healthcare.” The nub is idea that [might] save U.S. healthcare.” The nub is

providing successful patient outcomes in hospitals by providing successful patient outcomes in hospitals by formingforming multi-function patient-care teams multi-function patient-care teams, including , including

docs, nurses, labtechs and others. (“Co-operating doc” docs, nurses, labtechs and others. (“Co-operating doc” may top the oxymoron scale.) (5) One of the central may top the oxymoron scale.) (5) One of the central

responses to 911 is an effort to get responses to 911 is an effort to get intelligence intelligence servicesservices, home to some of the world’s most viscous turf , home to some of the world’s most viscous turf wars, talking to one another—we may have seen some wars, talking to one another—we may have seen some

of the fruits of that effort in the recently released of the fruits of that effort in the recently released National Intelligence EstimateNational Intelligence Estimate. And in the. And in the military, military,

inter-service co-operation has increased by an order of inter-service co-operation has increased by an order of magnitude since Gulf War Onemagnitude since Gulf War One—some of the services’ —some of the services’

communication systems can actually be linked to those communication systems can actually be linked to those of other services, a miracle almost the equal of the of other services, a miracle almost the equal of the

Christmas miracle in my book! Christmas miracle in my book!

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.

““We have met We have met the enemy the enemy

and he is us.”and he is us.” —Walt Kelly/“Pogo”—Walt Kelly/“Pogo”

Schlumberger!Schlumberger!

A January 2008 A January 2008 BusinessWeekBusinessWeek cover story informed us that Schlumberger may cover story informed us that Schlumberger may well take over the world: well take over the world: “THE GIANT STALKING BIG OIL: How “THE GIANT STALKING BIG OIL: How

Schlumberger Is Rewriting the Rules of the Energy Game.”Schlumberger Is Rewriting the Rules of the Energy Game.” In short, In short, Schlumberger knows how to create and run oilfields, anywhere, from drilling to Schlumberger knows how to create and run oilfields, anywhere, from drilling to fullscale production to distribution. And the nugget is hardcore, relatively small, fullscale production to distribution. And the nugget is hardcore, relatively small,

technically accomplished, highly autonomous teams. As China and Russia, among technically accomplished, highly autonomous teams. As China and Russia, among others, make their move in energy, state run companies are eclipsing the major others, make their move in energy, state run companies are eclipsing the major

independents. (China’s state oil company just surpassed Exxon in market value.) independents. (China’s state oil company just surpassed Exxon in market value.) At the center of it all, abetting these new players who are edging out the Exxons At the center of it all, abetting these new players who are edging out the Exxons

and BPs, the Kings of Large-scale, Long-term Project Management wear and BPs, the Kings of Large-scale, Long-term Project Management wear Schlumberger overalls. (The pictures in the article from Siberia alone are worth the Schlumberger overalls. (The pictures in the article from Siberia alone are worth the

cover price.) At the center of the center of the Schlumberger “empire” is a cover price.) At the center of the center of the Schlumberger “empire” is a relatively newly configured outfit, reminiscent of IBM’s Global Services and UPS’ relatively newly configured outfit, reminiscent of IBM’s Global Services and UPS’ integrated logistics’ experts and even Best Buy’s now ubiquitous “Geek Squads.” integrated logistics’ experts and even Best Buy’s now ubiquitous “Geek Squads.”

The Schlumberger version is simply called IPM, for Integrated Project The Schlumberger version is simply called IPM, for Integrated Project Management. It lives in a nondescript building near Gatwick Airport, and its chief Management. It lives in a nondescript building near Gatwick Airport, and its chief says it will do “just about anything an oilfield owner would want, from drilling to says it will do “just about anything an oilfield owner would want, from drilling to

production”—that is, as production”—that is, as BusinessWeekBusinessWeek put it, “[IPM] strays from [Schlumberger’s] put it, “[IPM] strays from [Schlumberger’s] traditional role as a service provider* and moves deeper into areas once dominated traditional role as a service provider* and moves deeper into areas once dominated

by the majors.” (*My old pal was solo on remote offshore platforms interpreting by the majors.” (*My old pal was solo on remote offshore platforms interpreting geophysical logs and the like.)geophysical logs and the like.)

8.8. “XF work” is the direct work of leaders! “XF work” is the direct work of leaders!9.9. “Integrated solutions” = Our “Culture.” “Integrated solutions” = Our “Culture.” (Therefore: XF = Our culture.) (Therefore: XF = Our culture.)10. Partner with “best-in-class” only. Their pursuit of Excellence helps us get beyond 10. Partner with “best-in-class” only. Their pursuit of Excellence helps us get beyond petty bickering. An all-star team has little time for anything other than delivering on petty bickering. An all-star team has little time for anything other than delivering on the (big) Client promise.the (big) Client promise.11.11. All functions are created equal! All functions are created equal! All functions contribute equally! All = All. All functions contribute equally! All = All.12. All functions are “PSFs,” Professional Service Firms. “Professionalism” is the 12. All functions are “PSFs,” Professional Service Firms. “Professionalism” is the watchword—and true Professionalism rise above turf wars. You are your projects, watchword—and true Professionalism rise above turf wars. You are your projects, your legacy is your projects—and the legacy will be skimpy indeed unless you pass, your legacy is your projects—and the legacy will be skimpy indeed unless you pass, with flying colors, the “works well with others” exam!with flying colors, the “works well with others” exam!13.13. We are all in sales! We are all in sales! We all (a-l-l) “sell” those Integrated Client Solutions. Good We all (a-l-l) “sell” those Integrated Client Solutions. Good salespeople don’t blame others for screw-ups—the Clint doesn’t care. Good salespeople don’t blame others for screw-ups—the Clint doesn’t care. Good salespeople are “quarterbacks” who make the system work-deliver.salespeople are “quarterbacks” who make the system work-deliver.

14. 14. We all invest in “wiring” the Client organization—we We all invest in “wiring” the Client organization—we develop comprehensive relationships in every part develop comprehensive relationships in every part (function, level) of the Client’s organization. (function, level) of the Client’s organization. We pay We pay special attention to the so-called “lower levels,” short special attention to the so-called “lower levels,” short on glamour, long on the ability to make things happen at on glamour, long on the ability to make things happen at the “coalface.”the “coalface.”

15. We all “live the Brand”—which is Delivery of Matchless Integrated Solutions 15. We all “live the Brand”—which is Delivery of Matchless Integrated Solutions which transform the Client’s organization. To “live the brand” is to become a raving which transform the Client’s organization. To “live the brand” is to become a raving fan of XF co-operation.fan of XF co-operation.

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

**InternalInternal customer relations [C(I)] are perhaps-often more important than customer relations [C(I)] are perhaps-often more important than externalexternal relationships [C(E)]. That is, if you Internal Relationships are excellent, you’ll have yourrelationships [C(E)]. That is, if you Internal Relationships are excellent, you’ll have your

whole company working for you to get your jobs to the head of the queue. whole company working for you to get your jobs to the head of the queue.

16. We use the word 16. We use the word “partner”“partner” until we want to barf! (Words matter! A lot!) until we want to barf! (Words matter! A lot!)17. We use the word 17. We use the word “team”“team” until we want to barf. (Words matter! A lot!) until we want to barf. (Words matter! A lot!)18. We use the word 18. We use the word “us”“us” until we want to barf. (Words matter! A lot!) until we want to barf. (Words matter! A lot!)19. We obsessively seek Inclusion—and abhor exclusion. We want more 19. We obsessively seek Inclusion—and abhor exclusion. We want more people from more places (internal, external—the whole “supply chain”) people from more places (internal, external—the whole “supply chain”) aboard in order to maximize systemic benefits.aboard in order to maximize systemic benefits.20. Buttons & Badges matter—we work relentlessly at team (XF team) 20. Buttons & Badges matter—we work relentlessly at team (XF team) identity and solidarity. (“Corny”? Get over it.)identity and solidarity. (“Corny”? Get over it.)21.21. All (almost all) rewards are team rewards. All (almost all) rewards are team rewards.22. We keep base pay rather low—and give whopping bonuses for 22. We keep base pay rather low—and give whopping bonuses for excellent team delivery of “seriously cool” cross-functional Client benefits.excellent team delivery of “seriously cool” cross-functional Client benefits.

23.23. WE NEVER BLAME OTHER PARTS OF THE WE NEVER BLAME OTHER PARTS OF THE ORGANIZATION FOR SCREWUPSORGANIZATION FOR SCREWUPS..24.24. WE TAKE THE HEAT—THE WHOLE TEAM. (For WE TAKE THE HEAT—THE WHOLE TEAM. (For anything and everything.) (Losing, like winning, is a anything and everything.) (Losing, like winning, is a team affair.)team affair.)25.25. “BLAMING” IS AN AUTOMATIC FIRING OFFENSE. “BLAMING” IS AN AUTOMATIC FIRING OFFENSE.

26.26. “Women rule.” “Women rule.” Women are simply better at the XF communications Women are simply better at the XF communications stuff—less power obsessed, less hierarchically inclined, more group-team stuff—less power obsessed, less hierarchically inclined, more group-team oriented.oriented.

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’s Strengths Match New Women’s Strengths Match New Economy ImperativesEconomy Imperatives:: Link [rather than rank] Link [rather than rank]

workers; workers; favor interactive-collaborative leadership favor interactive-collaborative leadership style [empowerment beats top-down decision style [empowerment beats top-down decision

making];making]; sustain fruitful collaborations; comfortable sustain fruitful collaborations; comfortable with sharing information; with sharing information; see redistribution of power see redistribution of power

as victory, not surrenderas victory, not surrender; favor multi-dimensional ; favor multi-dimensional feedback; feedback; value technical & interpersonal skills, value technical & interpersonal skills, individual & group contributions equally;individual & group contributions equally; readily readily

accept ambiguity; accept ambiguity; honor intuition as well ashonor intuition as well as pure “rationality”; pure “rationality”; inherently flexible; inherently flexible; appreciate appreciate

cultural diversitycultural diversity. —Judy B. Rosener, America’s Competitive Secret: Women Managers

““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

27. Every member of our team is an honored contributor. “XF project Excellence” 27. Every member of our team is an honored contributor. “XF project Excellence” is an “all hands” affair.is an “all hands” affair.28. We 28. We are are our XF Teams! XF project teams are how we get things done.our XF Teams! XF project teams are how we get things done.29. “Wow Projects” rule, large or small—Wow projects demand by definition XF 29. “Wow Projects” rule, large or small—Wow projects demand by definition XF Excellence.Excellence.30. We routinely attempt to unearth and then reward “small gestures” of XF co-30. We routinely attempt to unearth and then reward “small gestures” of XF co-operation.operation.31. We invite Functional Bigwigs to our XF project team reviews.31. We invite Functional Bigwigs to our XF project team reviews.32. We 32. We insist insist on Client team participation—from all functions of the Client on Client team participation—from all functions of the Client organization.organization.33. An “Open talent market” helps make the projects “silo-free.” People want in on 33. An “Open talent market” helps make the projects “silo-free.” People want in on the project because of the opportunity to do something memorable—no one will the project because of the opportunity to do something memorable—no one will tolerate delays based on traditional functional squabbling. tolerate delays based on traditional functional squabbling. 34. Flat! Flat = Flattened Silos. Flat = Excellence based on XF project outcomes, 34. Flat! Flat = Flattened Silos. Flat = Excellence based on XF project outcomes, not power-hoarding within functional boundaries. not power-hoarding within functional boundaries. 35. New “C-level”? 35. New “C-level”? We more or less need a “C-level” job titled Chief Bullshit We more or less need a “C-level” job titled Chief Bullshit Removal Officer.Removal Officer. That is, some kind of formal watchdog whose role in life is to That is, some kind of formal watchdog whose role in life is to make cross-functionality work, and I.D. those who don’t get with the program.make cross-functionality work, and I.D. those who don’t get with the program.

36.36. Huge (H-U-G-E) co-operation bonuses.Huge (H-U-G-E) co-operation bonuses. Senior team Senior team members who conspicuously shine in the “working members who conspicuously shine in the “working together” bit are rewarded or punished Big Time. (A together” bit are rewarded or punished Big Time. (A million bucks in one case I know—and a non-million bucks in one case I know—and a non-cooperating very senior was sacked.)cooperating very senior was sacked.)

James Robinson III:James Robinson III:

$500K$500K (on the spot, (on the spot,

collaboration)collaboration)

Alan Puckett:Alan Puckett: FireFire the the

best! (failure to collaborate)best! (failure to collaborate)

37.37. Get physical!! “Co-location” is the most powerful “culture changer. Get physical!! “Co-location” is the most powerful “culture changer. Physical Physical X-functional proximity is almost a guarantee (yup!) of remarkably improved co-X-functional proximity is almost a guarantee (yup!) of remarkably improved co-operation—to aid this one needs flexible workspaces that can be mobilized for a operation—to aid this one needs flexible workspaces that can be mobilized for a team in a flash.team in a flash.38.38. Ad hoc. Ad hoc. To improve the new “X-functional Culture,” little XF teams should be To improve the new “X-functional Culture,” little XF teams should be formed on the spot to deal with an urgent issue—they may live for but ten days, formed on the spot to deal with an urgent issue—they may live for but ten days, but it helps the XF habit, making it normal to be “working the XF way.”but it helps the XF habit, making it normal to be “working the XF way.”39. “Deep dip.” Dive three levels down in the organization to fill a senior role with 39. “Deep dip.” Dive three levels down in the organization to fill a senior role with some one who has been pro-active on the XF dimension.some one who has been pro-active on the XF dimension.

40. 40. Formal evaluations. Everyone, starting with the receptionist, Formal evaluations. Everyone, starting with the receptionist, should have an important XF rating component in their should have an important XF rating component in their evaluation.evaluation.41. Demand XF experience for, especially, senior jobs. The military requires all 41. Demand XF experience for, especially, senior jobs. The military requires all would-be generals and admirals to have served a full tour in a job whose only would-be generals and admirals to have served a full tour in a job whose only goals were cross-functional. Great idea! goals were cross-functional. Great idea! 42. Early project “management” experience. Within days, literally, of coming 42. Early project “management” experience. Within days, literally, of coming aboard folks should be “running” some bit of a project, working with folks from aboard folks should be “running” some bit of a project, working with folks from other functions—hence, “all this” becomes as natural as breathing.other functions—hence, “all this” becomes as natural as breathing.43. “Get ’em out with the customer.” Rarely does the accountant or bench 43. “Get ’em out with the customer.” Rarely does the accountant or bench scientist call one the customer. Reverse that. Give everyone more or less regular scientist call one the customer. Reverse that. Give everyone more or less regular “customer-facing experiences.” One learns quickly that the customer is not “customer-facing experiences.” One learns quickly that the customer is not interested in our in-house turf battles!interested in our in-house turf battles!

44. Put “it” on the–every agenda. XF “issues to be resolved” should be on every 44. Put “it” on the–every agenda. XF “issues to be resolved” should be on every agenda—morning project team review, weekly exec team meeting, etc. A “next agenda—morning project team review, weekly exec team meeting, etc. A “next step” within 24 hours (4?) ought to be part of the resolution.step” within 24 hours (4?) ought to be part of the resolution.45. XF “honest broker” or ombudsman. The ombudsman examines XF “friction 45. XF “honest broker” or ombudsman. The ombudsman examines XF “friction events” and acts as Conflict Resolution Counselor. (Perhaps a formal conflict events” and acts as Conflict Resolution Counselor. (Perhaps a formal conflict resolution agreement?)resolution agreement?)46. Lock it in! XF co-operation, central to any value-added mission, should be an 46. Lock it in! XF co-operation, central to any value-added mission, should be an explicit part of the “Vision Statement.”explicit part of the “Vision Statement.”47. Promotions. 47. Promotions. Every promotion, no exceptions, should put XF Excellence in the Every promotion, no exceptions, should put XF Excellence in the top 5 (3?) evaluation criteria.top 5 (3?) evaluation criteria.48. Pick partners based on their “co-operation proclivity.” Everyone must be on 48. Pick partners based on their “co-operation proclivity.” Everyone must be on board if “this thing” is going to work; hence every vendor, among others, should board if “this thing” is going to work; hence every vendor, among others, should be formally evaluated on their commitment to XF transparency—e.g., can we be formally evaluated on their commitment to XF transparency—e.g., can we access anyone at any level in any function of their organization without access anyone at any level in any function of their organization without bureaucratic barriers?bureaucratic barriers?49. Fire vendors who don’t “get it”—more than “get it,” welcome “it” with49. Fire vendors who don’t “get it”—more than “get it,” welcome “it” withopen arms.”open arms.”50.50. Jaw. Jaw. Jaw. Jaw. Jaw. Jaw. Talk XF cooperation-value-added at every opportunity. Become Talk XF cooperation-value-added at every opportunity. Become a relentless bore!a relentless bore!

51.51. Excellence!Excellence! There is a state of XF There is a state of XF Excellence per se. Talk about it. Pursue Excellence per se. Talk about it. Pursue it. Aspire to nothing less.it. Aspire to nothing less.

X X =XFX*=XFX*

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

““C-levels” to Abet Cross-functional ExcellenceC-levels” to Abet Cross-functional Excellence

CGROCGRO//Chief Grunge Removal OfficerChief Grunge Removal Officer

CXFCOCXFCO//Chief Cross-functional Communication Chief Cross-functional Communication OfficerOfficer

CIS-CDOCIS-CDO//Chief Information Sharing & CommonChief Information Sharing & Common Database Officer Database Officer

CHRO(PL)CHRO(PL) //Chief Human resources Officer (Project Chief Human resources Officer (Project Managers, Love and Care of)Managers, Love and Care of)

CPMFOCPMFO//Chief Project Management Finance OfficerChief Project Management Finance Officer

CTAOCTAO//Chief Team-space Assignments OfficerChief Team-space Assignments Officer

CE(XFNC)CE(XFNC) / /Chief Executioner (Cross-functionalChief Executioner (Cross-functional Non-cooperation!) Non-cooperation!)

CXFBPOCXFBPO//Chief Cross-functional Brownie-points Chief Cross-functional Brownie-points OfficerOfficer

In We have “C-level” officers for any damn In We have “C-level” officers for any damn thing you can mention. So I thought I’d add thing you can mention. So I thought I’d add my voice to the fray. If XF (Cross-functional) my voice to the fray. If XF (Cross-functional)

performance is a/the paramount issue for performance is a/the paramount issue for modern enterprise effectiveness (where one modern enterprise effectiveness (where one

is bringing to bear the wherewithal of the is bringing to bear the wherewithal of the entire enterprise to provide high-value, entire enterprise to provide high-value,

systemic “solutions” for customers), then systemic “solutions” for customers), then XFX/Cross-functional excellence is XFX/Cross-functional excellence is

necessarily priority #1. And we need an necessarily priority #1. And we need an exec to lead the charge—try these job titles exec to lead the charge—try these job titles

on for size!on for size!

The “XF Bible”The “XF Bible”

Building a Knowledge-driven Building a Knowledge-driven Organization: Overcome Organization: Overcome

Resistance to the Free Flow of Resistance to the Free Flow of Ideas. Turn Knowledge into Ideas. Turn Knowledge into New Products and Services. New Products and Services. Move to a Knowledge-based Move to a Knowledge-based

Strategy Strategy —Robert Buckman—Robert Buckman

The 180-degree “Middle Manager Flip” The 180-degree “Middle Manager Flip” @ Buckman Labs …@ Buckman Labs …

From:From: “information choke points”“information choke points”

To:To: “knowledge transfer “knowledge transfer

facilitators,” with facilitators,” with 100% (!!!)100% (!!!) of their rewards based on of their rewards based on

spurring co-operation across spurring co-operation across former barriers.former barriers.

Bob Buckman runs Buckman Labs, a half-billion dollar, Memphis-based specialty Bob Buckman runs Buckman Labs, a half-billion dollar, Memphis-based specialty chemicals company. You might well roll your eyes at the overused “customer chemicals company. You might well roll your eyes at the overused “customer solutions” moniker—but Buckman does just that with panache and for profit, solutions” moniker—but Buckman does just that with panache and for profit, creating and applying chemical compounds in customized ways to deal with creating and applying chemical compounds in customized ways to deal with

production and cleanup issues for specific customer facilities in the likes of the production and cleanup issues for specific customer facilities in the likes of the paper and leather-making industries. The devotion to paper and leather-making industries. The devotion to customcustom “solutions” is the “solutions” is the

bedrock, the alpha to omega, of the firm’s extraordinary new-product and financial bedrock, the alpha to omega, of the firm’s extraordinary new-product and financial record. Those closer to the intellectual fray than me claim that Bob gets “inventor” record. Those closer to the intellectual fray than me claim that Bob gets “inventor”

rights in the now ubiquitous “knowledge management” arena.rights in the now ubiquitous “knowledge management” arena. In any event, In any event, this book is the Buckman Labs saga in extraordinary detail—it is this book is the Buckman Labs saga in extraordinary detail—it is

particularly valuable because it moves so far beyond the relatively particularly valuable because it moves so far beyond the relatively easy software-technology bit and emphasizes the way in which a easy software-technology bit and emphasizes the way in which a company’s culture must be jerked around 180-degrees to destroy company’s culture must be jerked around 180-degrees to destroy former functional barriers.former functional barriers. E.g., E.g., middle manamiddle managgers, typicallers, typicallyy choke choke ppoints oints gguardinuardingg information and access to their domain, became information and access to their domain, became “knowled“knowledgge transfer facilitators,” with 100%e transfer facilitators,” with 100% (!!!) (!!!) of their rewards of their rewards

based on spurrinbased on spurringg co-operation across former barriers co-operation across former barriers..

Appendix Appendix SIXSIX

WOMEN. WOMEN. DOMINATE. DOMINATE. ECONOMIC. ECONOMIC. GROWTH.GROWTH.

““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

““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

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

Girls education #1:Girls education #1: Yields Yields highest return on investment highest return on investment

in developing world*in developing world*

*better nutrition for family. Better kids’ *better nutrition for family. Better kids’ education. Better health. Highereducation. Better health. Higher

family income. Lower birth rate. Etc. family income. Lower birth rate. Etc.

Source: Larry Summers, as reported in “The Payoff From Source: Larry Summers, as reported in “The Payoff From Women’s Rights,” Isobel Coleman, Women’s Rights,” Isobel Coleman,

Foreign Affairs, Foreign Affairs, May-June 2004May-June 2004

10 UNASSAILABLE REASONS WOMEN RULE10 UNASSAILABLE REASONS WOMEN RULE

WomenWomen make [all] the financial decisions. make [all] the financial decisions.WomenWomen control [all] the wealth. control [all] the wealth.WomenWomen [substantially] outlive men. [substantially] outlive men.WomenWomen start most of the new businesses. start most of the new businesses.Women’sWomen’s work force participation rates have work force participation rates have soared worldwide.soared worldwide.WomenWomen are closing in on “same pay for same are closing in on “same pay for same job.”job.”WomenWomen are penetrating senior ranks rapidly are penetrating senior ranks rapidly [even if the pace is slow for the corner [even if the pace is slow for the corner office per se].office per se].Women’s Women’s leadership strengths are exceptionally wellleadership strengths are exceptionally well aligned with new organizational effectiveness &aligned with new organizational effectiveness & value-added imperatives.value-added imperatives.WomenWomen are better salespersons than men. are better salespersons than men.WomenWomen buy [almost] everything—commercial buy [almost] everything—commercial as well as consumer goods.as well as consumer goods.

SoSo whatwhat exactlyexactly isis … … thethe pointpoint ofof menmen??

“One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening in all domains and at all

levels of society. Women are no longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to spend. … This is just the beginning. The

phenomenon will only grow as girls prove to be more successful than boys in the school

system. For a number of observers, For a number of observers, we have already entered the age we have already entered the age of ‘womenomics,’ the economy as of ‘womenomics,’ the economy as

thought out and practiced by a thought out and practiced by a womanwoman.”.” —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,

Financial Times, 10.03.2006

10.6M10.6M94%94%

EXCELLENCE. EXCELLENCE. OPPORTUNITY.OPPORTUNITY.

WOMEN.WOMEN. BUSINESS. BUSINESS. OWNERS. OWNERS.

10.610.6

NOTE: There are over 10 NOTE: There are over 10 million women-owned million women-owned

businesses in the United businesses in the United States.States.

““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

Not a Morality Play

“It is critical that we all understand “It is critical that we all understand that IBM is not marketing to that IBM is not marketing to

women entrepreneurs because it women entrepreneurs because it is the thing to do, or even the right is the thing to do, or even the right

thing to do. We’re marketing to thing to do. We’re marketing to women entrepreneurs because it women entrepreneurs because it is a huge opportunity.”is a huge opportunity.” — Cherie Piebes— Cherie Piebes

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.

PrimeTime Women: How to PrimeTime Women: How to Win the Hearts, Minds and Win the Hearts, Minds and

Business of Boomer Big Business of Boomer Big Spenders Spenders —Marti Barletta—Marti Barletta

How She Does It: How How She Does It: How Women Entrepreneurs Are Women Entrepreneurs Are

Changing the Rules of Changing the Rules of Business SuccessBusiness Success. . —Margaret —Margaret

HeffernanHeffernan

EXCELLENCE. EXCELLENCE. WOMEN.WOMEN.

RULE.RULE.

““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

Lawrence A. Pfaff & Assoc.Lawrence A. Pfaff & Assoc.

— 2 Years, 941 mgrs (672M, 269F);— 2 Years, 941 mgrs (672M, 269F); 360º feedback 360º feedback

— Women: better in 20 of 20 — Women: better in 20 of 20 categories; 15 of 20 with statistical categories; 15 of 20 with statistical

significance, incl. decisiveness, significance, incl. decisiveness, planning, setting stds.)planning, setting stds.)

— “Men are not rated significantly — “Men are not rated significantly higher by any of the raters in anyhigher by any of the raters in any

of the areas measured.” (LP) of the areas measured.” (LP)

““On average, women and men On average, women and men possess a number of different possess a number of different

innate skills. innate skills. And current And current trends suggest that many trends suggest that many sectors of the twenty-first-sectors of the twenty-first-

century economic century economic community are going to community are going to

need the natural talents of need the natural talents of women.”women.” —Helen Fisher, —Helen Fisher, The First Sex: The The First Sex: The

Natural Talents of Women and How They Are Changing Natural Talents of Women and How They Are Changing the Worldthe World

Women’s Strengths Match New Women’s Strengths Match New Economy ImperativesEconomy Imperatives:: Link [rather than rank] Link [rather than rank]

workers; workers; favor interactive-collaborative leadership favor interactive-collaborative leadership style [empowerment beats top-down decision style [empowerment beats top-down decision

making];making]; sustain fruitful collaborations; comfortable sustain fruitful collaborations; comfortable with sharing information; with sharing information; see redistribution of power see redistribution of power

as victory, not surrenderas victory, not surrender; favor multi-dimensional ; favor multi-dimensional feedback; feedback; value technical & interpersonal skills, value technical & interpersonal skills, individual & group contributions equally;individual & group contributions equally; readily readily

accept ambiguity; accept ambiguity; honor intuition as well ashonor intuition as well as pure “rationality”; pure “rationality”; inherently flexible; inherently flexible; appreciate appreciate

cultural diversitycultural diversity. —Judy B. Rosener, America’s Competitive Secret: Women Managers

““Investors are looking more and Investors are looking more and more for a relationship with their more for a relationship with their

financial advisers. financial advisers. They want They want someone they can trust, someone they can trust,

someone who listenssomeone who listens.. In my In my experience, in general, women may experience, in general, women may

be better at these relationship-be better at these relationship-building skills than are men.”building skills than are men.” ——

Hardwick Simmons, CEO, Prudential SecuritiesHardwick Simmons, CEO, Prudential Securities

Work’s RewardsWork’s Rewards

FF: : Relationships, respect, self-Relationships, respect, self-realization.realization.

MM: : Title, salary, power. Title, salary, power. (“In all my (“In all my research with men, I’ve never once research with men, I’ve never once

heard a mention about the heard a mention about the importance of relationships.”)importance of relationships.”)

Source: Susan Rice, former Director of Communications, Source: Susan Rice, former Director of Communications, BBDO Europe (from “A Dignified Woman”)BBDO Europe (from “A Dignified Woman”)

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

not rank.”not rank.” ——FortuneFortune

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

“A Bedtime Story, for $20,000”/CNN

Int’l Sleep Products Assn: 20% of mattresses sold in 2003 >$1,000 vs.

15% in 2000. Fastest growing segment: $5,000 to $20,000.

ISPA exec: “The Baby Boomers are getting older, and more affluent. As

you get older, your body changes and those aches and pains develop. So

they have the money and the inclination to upgrade.”

““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

NOTE: The authors argue that NOTE: The authors argue that women are superior to men as women are superior to men as salespeople. Years ago a very salespeople. Years ago a very senior exec told me about the senior exec told me about the

“secret” (the word he used) to his “secret” (the word he used) to his success in sales. “The women are success in sales. “The women are

not obsessed by rank. They’ll spend not obsessed by rank. They’ll spend scads of time developing scads of time developing

relationships from the bottom of relationships from the bottom of the client organization to the top—the client organization to the top—

while the guys refuse to talk to while the guys refuse to talk to anyone other than Mr Big.” His anyone other than Mr Big.” His

remark was my introduction to this remark was my introduction to this issue.issue.

““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]

Work’s RewardsWork’s Rewards

FF: : Relationships, respect, self-Relationships, respect, self-realization.realization.

MM: : Title, salary, power. Title, salary, power. (“In all my (“In all my research with men, I’ve never once research with men, I’ve never once

heard a mention about the heard a mention about the importance of relationships.”)importance of relationships.”)

Source: Susan Rice, former Director of Source: Susan Rice, former Director of Communications, BBDO Europe Communications, BBDO Europe

(from “A Dignified Woman”)(from “A Dignified Woman”)

““Thank you”Thank you”

17 Men: 17 Men: 884 Women: 4 Women: 1919

NOTE: I performed a little half-NOTE: I performed a little half-baked experiment on a flight I took. baked experiment on a flight I took. I observed for a while the behavior I observed for a while the behavior of the 17 men and four women—my of the 17 men and four women—my

goal was simply to count the goal was simply to count the number of time that, following number of time that, following

some small service act, men and some small service act, men and women said “Thank you.” women said “Thank you.”

““THE NEW GENDER THE NEW GENDER GAP: From kinder-GAP: From kinder-

garten to grad garten to grad school, boys are school, boys are

becoming the becoming the second sex”second sex” —Cover story,

BusinessWeek

New World, New “Girl Power”?New World, New “Girl Power”?“Not long ago I was talking with a group of girls at

Greenfield High, in northern New Jersey, about Mary Pipher’s bestselling book, Reviving Ophelia. … The girls’ reaction to Ophelia was one of confusion. They disagreed with the book’s premise—that girls are robbed of vitality and self-esteem as they enter adolescence. According to

Pipher, our sexist society causes girls ‘to stifle their creative spirit and natural impulses, which ultimately destroys their self-esteem.’ ‘Who are the girls in this

book?’ asked Sarah, a Greenfield sophomore. ‘I mean, I feel sorry for them, but they’re pretty much losers. We’re

not at all like them.’ From what I could see, she was right. The girls I met were vital. They appeared They appeared moremore confident than many of the boys. They had not confident than many of the boys. They had not

‘lost their voice.’ … They neither feared ‘lost their voice.’ … They neither feared competition from boys nor the consequences of competition from boys nor the consequences of out-performing them.”out-performing them.” —Dan Kindlon, Alpha Girls

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”

Degree Gap*Degree Gap*

Women/Bachelor’s … Women/Bachelor’s … 2000:2000: 133% of men’s; 2010: 142% 133% of men’s; 2010: 142%

Women/Master’s … Women/Master’s … 2000:2000: 138%; 2010: 151% 138%; 2010: 151%

* Whites, Blacks, Hispanics, Asians, Native Americans* Whites, Blacks, Hispanics, Asians, Native Americans

Source: The New Gender Gap/Source: The New Gender Gap/BusWeekBusWeek/05.26.2003/05.26.2003

Girls leadGirls lead: : Student gov’t, music & Student gov’t, music & performing arts, yearbook & performing arts, yearbook & newspaper, academic clubs.newspaper, academic clubs.

Boys leadBoys lead: : Sports, learning Sports, learning disabilities, diagnosed with disabilities, diagnosed with

emotional disturbancesemotional disturbances

Source: The New Gender Gap, BusWeek/05.26.03

““Are men Are men obsolete?obsolete?

””

—Headline, —Headline, USN&WRUSN&WR

New (4 of 7) Value-added “Ladder”:New (4 of 7) Value-added “Ladder”: Plays to Women’s Inherent Strengths! Plays to Women’s Inherent Strengths!

Lovemark/Lovemark/FF Dreams Come True/Dreams Come True/FF

Spellbinding Experiences/ Spellbinding Experiences/FFGamechanging Solutions/Gamechanging Solutions/FF

Services/FGoods/M

Raw Materials/M

NOTE: In Part Three of this Master NOTE: In Part Three of this Master Presentation I discuss what I call Presentation I discuss what I call

the “Value-added Ladder.” Success the “Value-added Ladder.” Success in today’s world mostly means in today’s world mostly means

climbing that ladder as quickly as climbing that ladder as quickly as possible. There are seven rungs on possible. There are seven rungs on the ladder, three “old economy,” the ladder, three “old economy,”

four “new economy.” As suggested four “new economy.” As suggested here, women are more instinctively here, women are more instinctively suited to achieving success in these suited to achieving success in these

new areas of emphasis.new areas of emphasis.

““Society is based Society is based on male standards on male standards with women seen with women seen

as anomalies as anomalies deviating from the deviating from the male norm.”male norm.” — — Bi Puvaneu, Bi Puvaneu,

Institute for Future Studies (Stockholm)Institute for Future Studies (Stockholm)

The Core Argument: Women [Ought to] Rule!The Core Argument: Women [Ought to] Rule!

1. We are in a War for Talent.1. We are in a War for Talent.2. The war will intensify.2. The war will intensify.3. There is a severe shortage of effective leaders3. There is a severe shortage of effective leaders at all levels. at all levels.4. Women are under-represented in our4. Women are under-represented in our leadership ranks at or near the top. leadership ranks at or near the top.5. Women and men are different; “new science”5. Women and men are different; “new science” reinforces this view. reinforces this view.6. Women’s strengths match the New Economy’s6. Women’s strengths match the New Economy’s leadership needs—to a striking degree. leadership needs—to a striking degree.7. Women are also the principal purchasers of7. Women are also the principal purchasers of goods and services—retail and commercial. goods and services—retail and commercial.8. 8. Ergo, women are a large part of “the answer” Ergo, women are a large part of “the answer”

to the War for Talent/leadership shortage to the War for Talent/leadership shortage issue/opportunity. issue/opportunity.

““Company formed in Company formed in KSAKSA [Kingdom of Saudi Arabia][Kingdom of Saudi Arabia] to to

boost women’s role boost women’s role in corporate world”in corporate world”

—headline, —headline, Khaleej Times Khaleej Times (UAE), 0526.07 (formed by Prince Khalid (UAE), 0526.07 (formed by Prince Khalid bin Alwaleed—50% women in leadership roles in his company)bin Alwaleed—50% women in leadership roles in his company)

NOTE: Wow.NOTE: Wow.

““Winning the Talent Winning the Talent War for Women: War for Women:

Sometimes It Takes a Sometimes It Takes a Revolution” Revolution” —Douglas McCracken, —Douglas McCracken,

HBR, Article titleHBR, Article title

NOTE: In my estimation, NOTE: In my estimation, Deloitte & Touche have done a Deloitte & Touche have done a

remarkable job in taking remarkable job in taking advantage of woman power. advantage of woman power.

““Deloitte was doing a great job of hiring high-Deloitte was doing a great job of hiring high-performing women; in fact, women often performing women; in fact, women often

earned higher performance ratings than men in earned higher performance ratings than men in their first years with the firm. Yet the their first years with the firm. Yet the

percentage of women decreased with step up percentage of women decreased with step up

the career ladder. … the career ladder. … Most women weren’t Most women weren’t leaving to raise families; they had leaving to raise families; they had

weighed their options in Deloitte’s male-weighed their options in Deloitte’s male-dominated culture and found them dominated culture and found them

wanting.wanting. Many, dissatisfied with a culture they Many, dissatisfied with a culture they perceived as endemic to professional service perceived as endemic to professional service

firms, firms, switched professions.”switched professions.”

—Douglas McCracken, “Winning the Talent War for Women” [—Douglas McCracken, “Winning the Talent War for Women” [HBRHBR]]

““The process of assigning plum The process of assigning plum accounts was largely unexamined. accounts was largely unexamined.

… Male partners made … Male partners made assumptions: assumptions: ‘I wouldn’t put her ‘I wouldn’t put her on that kind of company because on that kind of company because

it’s a tough manufacturing it’s a tough manufacturing environment.’ ‘That client is environment.’ ‘That client is

difficult to deal with.’ ‘Travel puts difficult to deal with.’ ‘Travel puts too much pressure on women.’too much pressure on women.’ ” ”Source: Douglas McCracken, “Winning the Talent War for Women” Source: Douglas McCracken, “Winning the Talent War for Women”

[[HBRHBR]]

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

14 14 toto 168168**

*Leadership Positions/D&T/1992-2002/*Leadership Positions/D&T/1992-2002/WIAR WIAR (Women’s Initiative Annual Report)(Women’s Initiative Annual Report)

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

““Catalyst just completed a study Catalyst just completed a study showing that companies with showing that companies with at at

least three women directorsleast three women directors performed significantly better performed significantly better

than average in terms of return on than average in terms of return on equity (16.7% better), return on equity (16.7% better), return on

sales (16.8%), and return on sales (16.8%), and return on invested capital (10%)invested capital (10%)

Source: Source: Newsweek2007Newsweek2007 /16% of S&P500 board /16% of S&P500 board members are women; 9% (45) members are women; 9% (45) nono women women