Why in the World did you go to Siberia ?

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

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

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

Over-rated:Over-rated:

Big companies!Public companies! “Cool” industries!Stability (“Built to last”)!

Famous CEOs!

““Spend Spend lessless time with your time with your customers!”customers!”

Welcome to Tom Peters “PowerPoint World”!Welcome to Tom Peters “PowerPoint World”! Beyond the set of slides Beyond the set of slides here, you will find at here, you will find at tompeters.comtompeters.com the last eight years of the last eight years of presentations, a basketful of “Special Presentations,” and, above all, presentations, a basketful of “Special Presentations,” and, above all, Tom’s Tom’s constantly updatedconstantly updated Master PresentationMaster Presentation—from which most of the —from which most of the slides in this presentation are drawn. There are about 3,500 slides in slides in this presentation are drawn. There are about 3,500 slides in the 7-part “Master Presentation.” The first five “chapters” constitute the 7-part “Master Presentation.” The first five “chapters” constitute the main argument: the main argument: Part IPart I is context. is context. Part IIPart II is devoted entirely to innovation—the sine qua is devoted entirely to innovation—the sine qua non, as perhaps never before, of survival. In earlier incarnations of the non, as perhaps never before, of survival. In earlier incarnations of the “master,” “innovation” “stuff” was scattered throughout the “master,” “innovation” “stuff” was scattered throughout the presentation—now it is front and center and a stand-alone. presentation—now it is front and center and a stand-alone. Part IIIPart III is a is a variation on the innovation theme—but it is organized to examine the variation on the innovation theme—but it is organized to examine the imperative (for most everyone in the developed-emerging world) of an imperative (for most everyone in the developed-emerging world) of an ultra high value-added strategy. A “value-added ladder” (the “ladder” ultra high value-added strategy. A “value-added ladder” (the “ladder” configuration lifted with gratitude from Joe Pine and Jim Gilmore’s configuration lifted with gratitude from Joe Pine and Jim Gilmore’s Experience EconomyExperience Economy) lays out a specific logic for necessarily leaving ) lays out a specific logic for necessarily leaving commodity-like goods and services in the dust. commodity-like goods and services in the dust. Part IVPart IV argues that in argues that in this age of “micro-marketing” there are two this age of “micro-marketing” there are two macromacro-markets of -markets of astounding size that are dramatically under-attended by all but a few; astounding size that are dramatically under-attended by all but a few; namely women and boomers-geezers. namely women and boomers-geezers. Part VPart V underpins the overall underpins the overall argument with the necessary bedrock—Talent, with brief consideration argument with the necessary bedrock—Talent, with brief consideration of Education & Healthcare. of Education & Healthcare. Part VI Part VI examines Leadership for turbulent examines Leadership for turbulent times from several angles.times from several angles. Part VII Part VII is a collection of a dozen Lists— is a collection of a dozen Lists—such as Tom’s “Irreducible 209,” 209 “things I’ve learned along the such as Tom’s “Irreducible 209,” 209 “things I’ve learned along the way.”way.”

Enjoy! Download! “Steal”—that’s the whole point!Enjoy! Download! “Steal”—that’s the whole point!

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”

Tom Peters’ Tom Peters’

EXCELLENCEXCELLENCE. ALWAYS.E. ALWAYS.15 Notions.15 Notions.

London/28 April 2008London/28 April 2008

Slides at tompeters.comSlides at tompeters.com

Dedicated to David O. Dedicated to David O. Stewart, author of Stewart, author of The The

Summer of 1787, Summer of 1787, and the and the late Governor Ann Richards—late Governor Ann Richards—thanks for the “blinding flash thanks for the “blinding flash

of the obvious”of the obvious”

““Excellence can be obtained if you:Excellence can be obtained if you:

... care more than others think... care more than others think is wise;is wise; ... risk more than others think ... risk more than others think is safe;is safe; ... dream more than others think ... dream more than others think is practical;is practical; ... expect more than others think ... expect more 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)

#1/15#1/15

““We Have …We Have …

ThankThank you, you,

Starbucks!Starbucks!

InternalInternal organizational organizational excellenceexcellence** = = Deepest “Blue Deepest “Blue

Ocean”Ocean”

**Internal Internal organizational organizational excellence = excellence =

““BrandBrand insideinside””

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

#14#14

The Common CEO Lament:The Common CEO Lament:

“If everything had been “If everything had been good, then everything good, then everything

would have been fine.”*would have been fine.”*

**Annual Reports:Annual Reports: Good, “Our strategy … Good, “Our strategy … Bad, “Unexpected …”Bad, “Unexpected …”

Black Swans:Black Swans: This This is how you earn is how you earn

your pay!* **your pay!* **

*See: *See: The Black Swan: The Impact of the Highly The Black Swan: The Impact of the Highly ImprobableImprobable, Nassim Nicholas Taleb, Nassim Nicholas Taleb

*WSC: *WSC: “When the seas are calm all ships alike “When the seas are calm all ships alike show mastership in sailing.”show mastership in sailing.”

***500 cell phones vibrate at once***500 cell phones vibrate at once***We have been “Estonia-ed”***We have been “Estonia-ed”

Notes to myself …Notes to myself …

Resilience Resilience (??)(??)

Attributes of resilient people:Attributes of resilient people:

Inner calm (Buddhist?) Inner calm (Buddhist?) High self-knowledge (“comfortable in own skin”)High self-knowledge (“comfortable in own skin”)Breadth of experience—drove a cab, worked construction, ran Alaska tours …Breadth of experience—drove a cab, worked construction, ran Alaska tours … as well as more traditional stuff as well as more traditional stuffSense of, “Ah, my moment” (Giuliani)Sense of, “Ah, my moment” (Giuliani)Lover of modestly controlled chaos (bored amidst calm—FDR)Lover of modestly controlled chaos (bored amidst calm—FDR)Reach out effortlesslyReach out effortlesslyReach out effortlessly to a wide variety of peopleReach out effortlessly to a wide variety of peopleBizarrely energeticBizarrely energeticKnown for integrity, in the sense of “straight shooter”Known for integrity, in the sense of “straight shooter”Hires resilient people in key positions! (All senior leadership roles?)Hires resilient people in key positions! (All senior leadership roles?)Maintains sense of humorMaintains sense of humorEmpathy (“I feel your pain”)Empathy (“I feel your pain”)“Cruelty” (Must make tough decisions instantaneously, without looking back; not“Cruelty” (Must make tough decisions instantaneously, without looking back; not “confident,” but overwhelming sense of urgency to press ahead) “confident,” but overwhelming sense of urgency to press ahead)Decisive but not rigidDecisive but not rigidStrong individual, strong team playerStrong individual, strong team playerUnderstands the chain of command—and is flexibleUnderstands the chain of command—and is flexibleComfortable being challenged by thinkers, but a strong “doer” bias overallComfortable being challenged by thinkers, but a strong “doer” bias overallA person of Hope (religious?)A person of Hope (religious?)

Not necessarily:Not necessarily: ex-college QB, comeback rep (Why: All within the rules, with in ex-college QB, comeback rep (Why: All within the rules, with in the context of that which has been practiced) the context of that which has been practiced)Better:Better: Ocean sailboat racer; ER doc; public health doc astronaut; combat Ocean sailboat racer; ER doc; public health doc astronaut; combat experience as NCO; hostage negotiator; survived in hopeless circumstances experience as NCO; hostage negotiator; survived in hopeless circumstances through guile and grit; seeks “independent duty” through guile and grit; seeks “independent duty”

TestsTests: lights go out during interview, followed by fire alarm, etc; focus on in: lights go out during interview, followed by fire alarm, etc; focus on in reference checks reference checks

Attributes of resilient organizations:Attributes of resilient organizations:

Hire resilient folks at all levels and in all functions—explicit aboutHire resilient folks at all levels and in all functions—explicit about so doing so doingPromote resiliencePromote resilienceDecentralization (organization structure, physical, systems)Decentralization (organization structure, physical, systems)RedundancyRedundancyFinancial paddingFinancial paddingExcellent equipmentExcellent equipmentAbility to get by without IS-IT!!Ability to get by without IS-IT!!Test in uncomfortable situationsTest in uncomfortable situationsPromote an unusually high share of mavericksPromote an unusually high share of mavericksDiversity per seDiversity per se

ThankThank you, Mark you, Mark and Rich!and Rich!

MBWA:MBWA:5K/5M5K/5M

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

face-toface-to-face meeting -face meeting

The The “Have “Have you …”you …”

50*50**See Appendix One*See Appendix One

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

or …or …

*Rich D’Aveni/*Rich D’Aveni/HBRHBR

1. Have you in the1. Have you in the last last 1010 daysdays … … visitedvisited a a customer?customer?2. Have you called a 2. Have you called a customer … customer … TODAYTODAY?? * * * * * *

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

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

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

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

““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

““I am a … I am a … Dispenser of Dispenser of EnthusiasmEnthusiasm!”!”

—Ben Zander—Ben Zander

Conrad Conrad says …says …

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

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

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

shower curtain shower curtain inside the inside the bathtubbathtub””

TGTGWW++

TGTGRR

2-cent 2-cent candycandy

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

—— Magician of Magical Moments! Magician of Magical Moments!—— Maestro of Moments of Truth! Maestro of Moments of Truth!—— Recruiter of Raving Fans! Recruiter of Raving Fans!—— Impresario of First Impressions! Impresario of First Impressions!—— Wizard of WOW! Wizard of WOW!—— Captain of Brilliant Comebacks! Captain of Brilliant Comebacks!—— Director of Electronic Customer Experiences! Director of Electronic Customer Experiences!—— Conductor of Customer Intimacy! Conductor of Customer Intimacy!—— King of Customer Community! King of Customer Community!—— Queen of Customer Retention! Queen of Customer Retention!—— CEO of Ownership Experience! CEO of Ownership Experience!—— Managing Director of After-sales Experience! Managing Director of After-sales Experience!

Quandary?!Quandary?!

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

SmotheredSmothered Its Idea Culture Its Idea Culture

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

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

TomTom says … says …

1/401/40

““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

“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

““Fail .Fail . Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

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

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

““You miss You miss

100100%%

of the shots of the shots you never you never

take.”take.” —Wayne—Wayne GretzkyGretzky

Joe J. Jones Joe J. Jones 1942 – 2008 1942 – 2008

HE WOULDA DONE SOME HE WOULDA DONE SOME

REALLY COOL STUFF REALLY COOL STUFF

BUT …BUT …

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

We We areare the the companycompany we keepwe keep

The “Are What You Eat The “Are What You Eat Axiom”:Axiom”: At its core, At its core, evereveryy

(!!!) relationship-(!!!) relationship-partnership decision partnership decision (employee, vendor, (employee, vendor,

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

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

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

StaffStaffConsultantsConsultants

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

Innovation Alliance PartnersInnovation Alliance PartnersCustomersCustomers

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

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

IS/IT ProjectsIS/IT ProjectsHQ LocationHQ LocationLunch MatesLunch Mates

LanguageLanguageBoardBoard

““Do one Do one thing every thing every

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

—Eleanor Roosevelt

Kevin Roberts’ CredoKevin Roberts’ Credo

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

10. Avoid moderationAvoid moderation!!

““Normal” Normal”

= = “o “o forfor 800”800”

X X =XFX*=XFX*

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

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

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

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

*See Appendix Two*See Appendix Two

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 petty 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 the (big) Client bickering. An all-star team has little time for anything other than delivering on the (big) Client promise.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 watchword—12. All functions are “PSFs,” Professional Service Firms. “Professionalism” is the watchword—and true Professionalism rise above turf wars. You are your projects, your legacy is your 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, with flying colors, the “works projects—and the legacy will be skimpy indeed unless you pass, with flying colors, the “works well with others” exam!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 salespeople 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 are “quarterbacks” don’t blame others for screw-ups—the Clint doesn’t care. Good salespeople are “quarterbacks” who make the system work-deliver.who make the system work-deliver.

14. 14. We all invest in “wirinWe all invest in “wiringg” the Client ” the Client ororgganization—we develop comanization—we develop compprehensive rehensive relationshirelationshipps in evers in everyy ppart (function, level) of art (function, level) of the Client’s orthe Client’s orgganization. anization. We We ppaayy s sppecial ecial attention to the so-called “lower levels,” short attention to the so-called “lower levels,” short on on gglamour, lonlamour, longg on the abilit on the abilityy to make thin to make thinggs s hahappppen at the “coalfaceen at the “coalface.”.”15. We all “live the Brand”—which is Delivery of Matchless Integrated Solutions which transform 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 fan of XF co-operation.the Client’s organization. To “live the brand” is to become a raving 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.

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

????????

% XF % XF luncheslunches

““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(PMLC)CHRO(PMLC) //Chief Human Resources Officer Chief Human Resources Officer (Project Managers, Love and Care of)(Project 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!)

CXFBPDOCXFBPDO//Chief Cross-functional Brownie-points Chief Cross-functional Brownie-points Dispensing OfficerDispensing Officer

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

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

in ICU. in ICU.

50%50% stays result stays result

in “serious complication”in “serious complication”

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

****Peter PronovostPeter Pronovost, Johns Hopkins,, Johns Hopkins, 2001 2001**Checklist, line infections**Checklist, line infections**1/3**1/3rdrd at least one error when he started at least one error when he started**Nurses/permission to stop procedure**Nurses/permission to stop procedure if doc, other not following checklist if doc, other not following checklist**In 1 year, 10-day line-infection rate:**In 1 year, 10-day line-infection rate:

11% to … 11% to … 0%0%

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

4 4 DaysDays (U.S. Hospitals+) (U.S. Hospitals+)

== 5 5 YearsYears (Iraq) (Iraq)**

*Think: Compression hose-socks*Think: Compression hose-socks

TP: TP: “How to flush

$500,000 down

the toilet in one easy

lesson!!”

< CAPEX< CAPEX> People!> People!

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

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

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

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

Entrepreneurial flairEntrepreneurial flair of of diverse individualsdiverse individuals is is

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

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

??????

% of people % of people with …with …

… … DreamsDreams

The Dream The Dream ManagerManager —Matthew Kelly—Matthew Kelly

E.g.: “An organization can only become the-best-version-of-itself to the E.g.: “An organization can only become the-best-version-of-itself to the extent that the people who drive that organization are striving to extent that the people who drive that organization are striving to

become better-versions-of-themselves.” “A company’s purpose is to become better-versions-of-themselves.” “A company’s purpose is to become the-best-version-of-itself. The question is: What is an become the-best-version-of-itself. The question is: What is an

employee’s purpose? Most would say, ‘to help the company achieve its employee’s purpose? Most would say, ‘to help the company achieve its purpose’—but they would be wrong. That is certainly part of the purpose’—but they would be wrong. That is certainly part of the

employee’s role, but an employee’s primary purpose is to become the-employee’s role, but an employee’s primary purpose is to become the-best-version-of-himself or –herself. … When a company forgets that it best-version-of-himself or –herself. … When a company forgets that it

exists to serve customers, it quickly goes out of business. Our exists to serve customers, it quickly goes out of business. Our

employees are our first customers, and our most important customers.”employees are our first customers, and our most important customers.”

The Dream ManagerThe Dream Manager —Matthew Kelly—Matthew Kelly

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

of-themselves.”of-themselves.” “A company’s purpose is to become “A company’s purpose is to become the-best-version-of-itself. The question is: What is an the-best-version-of-itself. The question is: What is an

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

certainly part of the employee’s role, but an employee’s certainly part of the employee’s role, but an employee’s primary purpose is to become the-best-version-of-himself or –primary purpose is to become the-best-version-of-himself or –

herself. …herself. … When a company forgets that it When a company forgets that it exists to serve customers, it quickly exists to serve customers, it quickly

goes out of business. goes out of business. Our emploOur employyees are ees are our first customers, and our most our first customers, and our most

imimpportant customersortant customers.”.”

The Dream ManagerThe Dream Manager —Matthew Kelly —Matthew Kelly

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

become better-versions-of-themselves.” “A company’s purpose is to become better-versions-of-themselves.” “A company’s purpose is to become the-best-version-of-itself. The question is: What is an become the-best-version-of-itself. The question is: What is an

employee’s purpose? Most would say, ‘to help the company achieve its employee’s purpose? Most would say, ‘to help the company achieve its purpose’—but they would be wrong. That is certainly part of the purpose’—but they would be wrong. That is certainly part of the

employee’s role, but an employee’s primary purpose is to become the-employee’s role, but an employee’s primary purpose is to become the-best-version-of-himself or –herself. … When a company forgets that it best-version-of-himself or –herself. … When a company forgets that it

exists to serve customers, it quickly goes out of business.exists to serve customers, it quickly goes out of business. Our Our emploemployyees are our first ees are our first

customers, and our customers, and our most immost impportant ortant

customerscustomers.”.”

53 53 == 5353

#1#1 cause cause

ofofDis-satisfaction?Dis-satisfaction?

11stst line line supervisor!supervisor!

The “Big Three”The “Big Three”

MarriageMarriageParenthoodParenthood

11stst Line Supervisor Line Supervisor**

*Accomplishment through others*Accomplishment through others

Promotions …Promotions …

2/year 2/year = =

legacy.legacy.

Hiring …Hiring …

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

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

EMPHASIZEMPHASIZE THE E THE “SOFT “SOFT

SKILLS.”SKILLS.”

““Leaders Leaders

‘‘SERVESERVE’’ people. people.

Period.”Period.” —inspired by Robert Greenleaf

“In the end, management doesn’t

change culture. Management

invitesinvites the workforce itself to change the culture.”

—Lou Gerstner

““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.

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

manager’s]manager’s] first response is first response is always to think about the always to think about the individual concerned and individual concerned and

how things can be arranged how things can be arranged to help that individual to help that individual experience success.”experience success.”

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

““We are a We are a ‘Life ‘Life

Success’ Success’ Company.”Company.”

Dave Liniger, founder, RE/MAX

““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

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

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

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

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

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

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

are entrepreneurs.”are entrepreneurs.”

Source: Muhammad Yunus/2006 Nobel Peace prize winner,

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

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

1. A Bias for 1. A Bias for ActionAction2. Close to the 2. Close to the CustomerCustomer3. 3. AutonomAutonomyy and and EntreEntreppreneurshireneurshipp4. Productivity Through 4. Productivity Through PeoPeopplele5. 5. Hands OnHands On, , Value-DrivenValue-Driven6. 6. Stick toStick to the Knitting the Knitting7. 7. SimSimpplele Form, Form, LeanLean Staff Staff8. Simultaneous 8. Simultaneous Loose-TightLoose-Tight Properties” Properties”

““Breakthrough” 82*Breakthrough” 82*

People! People! CustomersCustomers

! ! Action! Action! Values! Values!

**In Search of ExcellenceIn Search of Excellence

CauseCause (worthy of commitment)(worthy of commitment)

SpaceSpace (room for/encouragement(room for/encouragement

for initiative) for initiative)

DecencyDecency (respect, (respect,

humane)humane)

Some Resources: RelationshipsSome Resources: Relationships

The Manager’s Book of DecenciesThe Manager’s Book of Decencies:: How Small Gestures How Small Gestures Build Great CompaniesBuild Great Companies—Steve Harrison—Steve HarrisonRespectRespect—Sara Lawrence-Lightfoot—Sara Lawrence-LightfootHostmanship:Hostmanship: The Art of Making People Feel Welcome The Art of Making People Feel Welcome—— Jan Gunnarsson & Olle Blohm (leader as host to his-Jan Gunnarsson & Olle Blohm (leader as host to his- her employees)her employees)The SPEED of Trust:The SPEED of Trust: The One Thing that Changes The One Thing that Changes EverythingEverything—Stephen M.R. Covey—Stephen M.R. CoveyThe Dream ManagerThe Dream Manager —Matthew Kelly—Matthew KellyThe Customer Comes Second:The Customer Comes Second: Put Your People First and Put Your People First and Watch ’Em Kick ButtWatch ’Em Kick Butt—Hal Rosenbluth and Diane—Hal Rosenbluth and Diane McFerrin Peters (no relation—be delighted if she was)McFerrin Peters (no relation—be delighted if she was)Crucial ConversationsCrucial Conversations—Kerry Patterson, Joseph Grenny,—Kerry Patterson, Joseph Grenny, Ron McMillan, Al SwitzlerRon McMillan, Al Switzler Crucial ConfrontationsCrucial Confrontations —Kerry Patterson, Joseph —Kerry Patterson, Joseph Grenny, Ron McMillan, Al SwitzlerGrenny, Ron McMillan, Al SwitzlerInfluence:Influence: Science and Practice Science and Practice—Robert Cialdini—Robert CialdiniEmotional IntelligenceEmotional Intelligence: Why It Can Matter More: Why It Can Matter More Than IQThan IQ—Daniel Goleman—Daniel Goleman

““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

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

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

AlexandriaAlexandria


SpaceSpace (room for/encouragement(room for/encouragement

for initiative-adventures) for initiative-adventures)

DecencyDecency (respect, grace,(respect, grace,

integrity, humane) integrity, humane)

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

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

excellenceexcellence (period) (period)


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

adventures) adventures)

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

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

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

excellenceexcellence (period) (period)

servant servant leadership leadership

CauseCause

SpaceSpace

DecencyDecency

serviceserviceexcellenceexcellence

servant leadership servant leadership

Hard Is Hard Is SoftSoft

Soft Is Soft Is HardHard

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

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

relationships))relationships))

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

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

isn’t just one aspect of the

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

Who Says Elephants Can’t Dance

9595%%

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

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

less important.”less important.”

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

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

RReturn eturn OOn n

IInvestment In nvestment In

RRelationshipselationships

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

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

FYI:FYI: “Relationship “Relationship power” = power” =

““MonopolyMonopoly power”power”

FYI:FYI: ““SustainableSustainable competitive competitive

advantage” = advantage” = “Relationship-based “Relationship-based

advantage” advantage” (period.)(period.)

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

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

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

COMPLETE RUPTURE.COMPLETE RUPTURE.

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

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

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

REAL PROBLEMREAL PROBLEM.

““I screwed I screwed up.”*up.”*

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

““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

““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

So, tell meSo, tell me why you’re why you’re

here …here …

18 18 secondsseconds

#10#10

For the For the engineers engineers

in the family in the family ……

SF50:SF50: 50 “Equations” on 50 “Equations” on achieving success achieving success … at pretty much … at pretty much

anything*anything**See Appendix Three*See Appendix Three

S = ƒS = ƒ ( ___ )( ___ )Success Is aSuccess Is a

Function of …Function of …

S =ƒ(#PK“S =ƒ(#PK“WW”P)”P)S = ƒ(#PK“S = ƒ(#PK“LL”P)”P) # of people you know in the “wrong” places# of people you know in the “wrong” places# people you know in “low” places# people you know in “low” places

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

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

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

oror


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

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

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

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

S = ƒ(#XFL/m)S = ƒ(#XFL/m)Number of lunches with colleagues in otherNumber of lunches with colleagues in otherfunctions per monthfunctions per month

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

S= ƒ(TSHRO)S= ƒ(TSHRO)Time spent ... Hurdle Removing for OthersTime spent ... Hurdle Removing for Others

C.H.R.O.*C.H.R.O.*C.I.E.O.**C.I.E.O.**

*Chief Hurdle Removal Officer*Chief Hurdle Removal Officer**Chief Impediment Elimination Officer**Chief Impediment Elimination Officer

””Ninety percent of what Ninety percent of what we call management we call management consists of making it consists of making it difficult to get things difficult to get things

done.”done.” —Peter Drucker—Peter Drucker

FFLLOOWWEERRPPOOWWEERR

S = ƒ(Thank you notesS = ƒ(Thank you notes per per DayDay, , fflloowweerrss given per Month,given per Month, Acts of Appreciation Acts of Appreciation per Week)per Week)

S = ƒS = ƒ

(%T(%TMM“TSS,” “TSS,” PM“TSS,” PM“TSS,”

D“TD”“TSS”)D“TD”“TSS”)% of time, measured, on This % of time, measured, on This Soft StuffSoft Stuff, ,

purposeful management of this purposeful management of this Soft StuffSoft Stuff, , daily “to do” concerning “this daily “to do” concerning “this Soft StuffSoft Stuff””

O(B) = O(B) = ƒƒ(XX)(XX)O(B), the “blueness” of one’s “ocean” [think O(B), the “blueness” of one’s “ocean” [think Blue Ocean Blue Ocean StrategyStrategy, the popular book], is directly proportional to , the popular book], is directly proportional to

one’s one’s eXcellence in eXecution/XXeXcellence in eXecution/XX, per , per me. [If one finds a “strategic” “blue ocean,” one will, me. [If one finds a “strategic” “blue ocean,” one will,

especially in today’s world, copied immediately; the only especially in today’s world, copied immediately; the only “defense”—possibility of sustaining success—is “defense”—possibility of sustaining success—is

XX/eXcellence in eXecution. Think EXXON MOBIL; they and XX/eXcellence in eXecution. Think EXXON MOBIL; they and their rivals know where the hydrocarbons are—but EXXON their rivals know where the hydrocarbons are—but EXXON

MOBIL handily out-executes the competition.]MOBIL handily out-executes the competition.]

S(O) =S(O) = ƒ ƒ(XXFX)(XXFX)The single most important cause of failure to execute The single most important cause of failure to execute

effectively is the lack of effective cross-functional effectively is the lack of effective cross-functional communication-execution. Hence, Organizational Success is a communication-execution. Hence, Organizational Success is a

function of function of eXcellence (X) in cross-eXcellence (X) in cross-functional (XF) eXecution (X).functional (XF) eXecution (X). Attached Attached as Appendix II is my: as Appendix II is my: The “XF-50”: 50 Ways to Enhance Cross-The “XF-50”: 50 Ways to Enhance Cross-

Functional Effectiveness and Deliver Speed, “Service Functional Effectiveness and Deliver Speed, “Service Excellence” and “Value-added Customer ‘Solutions.’”Excellence” and “Value-added Customer ‘Solutions.’”

S(O) =S(O) = ƒ ƒ(X“SIT”)(X“SIT”)In 1982 in In 1982 in In Search of ExcellenceIn Search of Excellence, Bob Waterman and I , Bob Waterman and I

wrote about the idea of “MBWA,” or Managing By wrote about the idea of “MBWA,” or Managing By Wandering Around; we came across “MBWA” at Hewlett-Wandering Around; we came across “MBWA” at Hewlett-

Packard, then a much smaller company, and it was love at Packard, then a much smaller company, and it was love at first sight! For reasons described in Appendix III, I recently first sight! For reasons described in Appendix III, I recently returned to the centrality of that notion—and created a list returned to the centrality of that notion—and created a list of 50 “Have Yous.” That is, instead of worrying ceaselessly of 50 “Have Yous.” That is, instead of worrying ceaselessly about “strategy” and “blue oceans,” how good a job have about “strategy” and “blue oceans,” how good a job have you done at Staying In Touch with your extended internal you done at Staying In Touch with your extended internal

and external “organizational family”? That is: S(O), and external “organizational family”? That is: S(O),

Organizational Success, is a function of Organizational Success, is a function of X “SIT,” X “SIT,” eXcellence at Staying In Touch.eXcellence at Staying In Touch.

MBWA:MBWA:20M20M

#11#11

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

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

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

Little GoodLittle Good

““The West spent … The West spent … $$2.32.3 trilliontrillion on foreign aid over on foreign aid over

the last five decades and still has the last five decades and still has not not managed to get twelve-cent medicines to managed to get twelve-cent medicines to

children to prevent half of all malaria children to prevent half of all malaria deaths. The West spent $2.3 trillion and still deaths. The West spent $2.3 trillion and still

notnot managed to get three dollars to each managed to get three dollars to each new mother to prevent five million child new mother to prevent five million child

deaths. …deaths. … But I and many other like-minded But I and many other like-minded people keep trying, not to abandon aid to people keep trying, not to abandon aid to

the poor, but to the poor, but to makemake suresure it reachesit reaches

themthem.”.”

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

““Ninety Ninety percent of percent of success is success is

showing up.” showing up.” —Woody Allen

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

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



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

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

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

Talk.Talk.Listen.Listen.Hear.Hear.

Respect.Respect.

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

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

**

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

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

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

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

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

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

Champion = Champion = OneOne LineLine ofof CodeCode!!

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

Lesson: Lesson: Never forget the atmospherics, such as numerousNever forget the atmospherics, such as numerous celebrations for tiny milestones reached, showering praisecelebrations for tiny milestones reached, showering praise on the local leader and your local cohorts, while youon the local leader and your local cohorts, while you assiduously stand at the back of the crowd—etc.assiduously stand at the back of the crowd—etc.Lesson: Lesson: The experiment has failed until the systems and The experiment has failed until the systems and politicalpolitical rewards, often small, are in place, with Beta tests rewards, often small, are in place, with Beta tests completed, completed, to up the odds of repetition.to up the odds of repetition.Lesson: Lesson: Most of your on-the-ground staff must consist of Most of your on-the-ground staff must consist of respected locals—the de facto or de jure Chairman or CEOrespected locals—the de facto or de jure Chairman or CEO must be a local; you must be virtually invisible.must be a local; you must be virtually invisible.

Lesson: Lesson: Spend enormous “pointless” social time Spend enormous “pointless” social time with the local political leaders—in Gulfwith the local political leaders—in Gulf War I, Norm Schwarzkopf spent hisWar I, Norm Schwarzkopf spent his evenings, nearly all of them, drinking teaevenings, nearly all of them, drinking tea until 2AM or 3AMuntil 2AM or 3AM with the Saudi crown prince; he called itwith the Saudi crown prince; he called it his greatest contribution!his greatest contribution!

GiveGive good good tea!* tea!*

*Norm, Ben*Norm, Ben

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

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

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

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

womenwomen are by far the are by far the

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

chauvinist settings. chauvinist settings.

94%94%

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

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

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

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

#12#12

““Women Women areare thethe

majority majority market”market”

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

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

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

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

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

of 13%of 13%.”.” —Economist, April 15

““The The most most significant variablesignificant variable

inin everyevery sales situation is sales situation is

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

the salesperson the salesperson communicates to the communicates to the

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

““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

““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

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”

““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

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??

7/17/133

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

today have today have more more thanthan halfhalf of of their adult life their adult life

ahead of them.”ahead of them.” —Bill

Novelli, 50+: Igniting a Revolution to Reinvent America

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

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

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

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

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

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

#13#13


Big companies!

Public companies! “Cool” industries!Stability (“Built to last”)!

Famous CEOs!

“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The

answer seems obvious: Buy a Buy a very large one very large one and just waitand just wait.”.”

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

#4 Japan#4 Japan#2T china#2T china#2t USA#2t USA

#1 #1 GermanyGermany

Reason!!!Reason!!!

MittelstandMittelstand


Big companies!

Public companies!

“Cool” industries!Stability (“Built to last”)!

Famous CEOs!

Family BusinessesFamily Businesses

Two-thirds of total #sTwo-thirds of total #s of companies of companiesOne-half of biggest companiesOne-half of biggest companies>One-half GDP>One-half GDP>One-half employment>One-half employment6% more profitable6% more profitable7% better ROA7% better ROAHigher income growthHigher income growthHigher revenue growthHigher revenue growthSource: John Davis, HBSSource: John Davis, HBS


Big companies!Public companies! “Cool” industries!

Stability (“Built to

last”)!Famous CEOs!

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

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

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

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

The Cobra EventThe Cobra Event

7,700,000 – 7,700,000 – 7,200,000 = 7,200,000 =

500,000500,000


Big companies!Public companies!

“Cool” industries!

Stability (“Built to last”)!Famous CEOs!

Jim’s Jim’s GroupGroup

Jim’s Mowing CanadaJim’s Mowing CanadaJim’s Mowing UKJim’s Mowing UKJim’s AntennasJim’s Antennas

Jim’s BookkeepingJim’s BookkeepingJim’s Building MaintenanceJim’s Building Maintenance

Jim’s Carpet CleaningJim’s Carpet CleaningJim’s Car CleaningJim’s Car Cleaning

Jim’s Computer ServicesJim’s Computer Services

Jim’s Dog WashJim’s Dog WashJim’s Driving SchoolJim’s Driving School

Jim’s FencingJim’s FencingJim’s FloorsJim’s Floors

Jim’s PaintingJim’s PaintingJim’s PavingJim’s Paving

Jim’s Pergolas [gazebos]Jim’s Pergolas [gazebos]Jim’s Pool CareJim’s Pool Care

Jim’s Pressure CleaningJim’s Pressure CleaningJim’s RoofingJim’s Roofing

Jim’s Security DoorsJim’s Security DoorsJim’s TreesJim’s Trees

Jim’s Window CleaningJim’s Window CleaningJim’s WindscreensJim’s Windscreens

Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group

Basement Basement Systems Inc.Systems Inc.

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

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

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


Big companies!Public companies! “Cool” industries!Stability (“Built to last”)!

Famous CEOs!

Mission impossible?Mission impossible?

$36B/’98$36B/’98

minus minus $675M/‘$675M/‘

0707

Market capitalization lost per day, 1998-

2007: $10,000,00

0/Day

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

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

#14#14

Black Swans:Black Swans: This This is how you earn is how you earn

your pay!* **your pay!* **

*See: *See: The Black Swan: The Impact of the Highly The Black Swan: The Impact of the Highly ImprobableImprobable, Nassim Nicholas Taleb, Nassim Nicholas Taleb

*WSC: *WSC: “When the seas are calm all ships alike “When the seas are calm all ships alike show mastership in sailing.”show mastership in sailing.”

#15/15#15/15

The “9 Ps of LeadershipThe “9 Ps of Leadership

PURPOSE PURPOSE..PASSIONPASSION..PotentialPotential..PresencePresence..PersonalPersonal..

PERSISTENCEPERSISTENCE..PEOPLEPEOPLE. . PotentPotent..

PositivePositive..

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

anxious to win”anxious to win”

Joe J. Jones Joe J. Jones 1942 – 2008 1942 – 2008

HE WOULDA DONE SOME HE WOULDA DONE SOME

REALLY COOL STUFF REALLY COOL STUFF

BUT …BUT …

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

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

appendix appendix oneone

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 airport to While waiting last week [early December 2007] in the Albany airport to board a Southwest Airlines flight to Reagan, I happened across the board a Southwest Airlines flight to Reagan, I happened across the latest latest Harvard Business ReviewHarvard Business Review, on the cover of which was a yellow , on the cover of which was a yellow sticker. The sticker had on it the words “Mapping your competitive sticker. The sticker had on it the words “Mapping your competitive

position.” It referred to a feature article by my friend Rich D’Aveni. His position.” It referred to a feature article by my friend Rich D’Aveni. His work is uniformly good—and I have said as much publicly on several work is uniformly good—and I have said as much publicly on several

occasions dating back 15 years. I’m sure this article is good, too—occasions 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 though 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 worry reaction” as my wife calls it. Of course I believe you should worry

about your “competitive position.”about your “competitive position.” But instead of obsessing But instead of obsessing on competitive position and other abstractions, as on competitive position and other abstractions, as the B-schools and consultants would always have the B-schools and consultants would always have us do, I instead wondered about some “practical us do, I instead wondered about some “practical

stuff” which I believe is more important to the short- stuff” which I believe is more important to the short- and long-term health of the enterprise, tiny or and long-term health of the enterprise, tiny or

enormous.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 and strategy, organization and organization processes—organization processes—remaining aloof from the remaining aloof from the people doing the work.”people doing the work.”

——George Kohlrieser, George Kohlrieser, Hostage at the Table Hostage at the Table (GK is, among other (GK is, among other things, a hostage negotiator with a 95% success rate)things, 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 the 1. Have you in the last 10 days … last 10 days … visited a visited a customecustomer?r?2. Have you called 2. Have you called a customer … 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 specific deadlines 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?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 specific deadlines 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 concerning a project’s next steps … and what specifically you can do to remove a hurdleyou can do to remove a hurdle? (“Ninety percent of ? (“Ninety percent of what we call management consists of making it difficult for people to get things done.”—Peter “His eminence” what we call management consists of making it difficult for people to get things done.”—Peter “His eminence” Drucker.)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 milestone reached? (I.e., are you a milestone fanatic?)fanatic?)14. Have you in the last week or month revised some estimate in the “wrong” direction and apologized for making 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 a lousy estimate? (Somehow you must publicly reward the telling of difficult truthsreward the telling of difficult truths.).)

15. 15. Have you installed in your tenure a very Have you installed in your tenure a very comprehensive customer satisfaction scheme for all comprehensive customer satisfaction scheme for all internalinternal customers? customers? (With major consequences for hitting or missing the mark.) (With major consequences for hitting or 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 external customers? of external customers?17. Have you in the last 60 days called an abrupt halt to a meeting and “ordered” everyone to get out of the office, 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 and “into the field” and in the next eight hoursnext eight hours, after asking those involved, fixed (f-i-x-e-d!) a nagging “small” , after asking those involved, fixed (f-i-x-e-d!) a nagging “small” problem through practical action?problem through practical action?18. Have you in the last week had a rather thorough discussion of a “cool design thing” someone has come 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 packaging? across—away from your industry or function—at a Web site, in a product or its packaging? 19. Have you in the last two weeks had an informal meeting—at least an hour long—with a frontline employee to 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 your mid- to long-term aspirations?discuss things we do right, things we do wrong, what it would take to meet 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” … that we can fix in 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 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 at the giant The director of staff services at the giant financial services firm, UniCredit Group, financial services firm, UniCredit Group,

installed the most thorough internal installed the most thorough internal customer satisfaction measures scheme I customer satisfaction measures scheme I have seen—with exceptional rewards for have seen—with exceptional rewards for

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

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

RReturn eturn OOn n



Job Job One.One.

““You You must must

care.”care.” —General Melvin —General Melvin

ZaisZais




—Henry Clay

appendix appendix twotwo

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*


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 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

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*


““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(PMLC)CHRO(PMLC) //Chief Human Resources Officer Chief Human Resources Officer (Project Managers, Love and Care of)(Project 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!)

CXFBPDOCXFBPDO//Chief Cross-functional Brownie-points Chief Cross-functional Brownie-points Dispensing OfficerDispensing Officer

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 threethree

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

New “Management New “Management Science,” or “Hard” Science,” or “Hard”

Is “Soft,” “Soft”Is “Soft,” “Soft” Is “Hard”Is “Hard”

Tom Peters/17 April 2008Tom Peters/17 April 2008

Alternate title …Alternate title …

Attending to Attending to the “Last the “Last

98%”: 98%”: fflloowweerr power!power!

Tom Peters/17 April 2008Tom Peters/17 April 2008

FFLLOOWWEERRPPOOWWEERRFFLLOOWWEERRPPOOWWEERR

Hold in your mind the idea of “flower power”Hold in your mind the idea of “flower power”—more to come!—more to come!

S = ƒS = ƒ ( ___ )( ___ )Success Is aSuccess Is a

Function of …Function of …

SF50: SF50: SuccessSuccess

Is a Function Is a Function of* ...of* ...

*What follows are not in fact true mathematical formulae—*What follows are not in fact true mathematical formulae—obviously. Nonetheless, in tribute to my own scientific obviously. Nonetheless, in tribute to my own scientific

background, and, more important, that of many seminar background, and, more important, that of many seminar participants, I have chosen this format—which seems to work participants, I have chosen this format—which seems to work

for those of “my ilk” to whom it has been exposedfor those of “my ilk” to whom it has been exposed

SF50:SF50: 50 “Equations” 50 “Equations”

on achieving on achieving success … at success … at pretty much pretty much

anythinganything

S = ƒ(#&DR; -2L, -3L, 4L, I&E)S = ƒ(#&DR; -2L, -3L, 4L, I&E)Success is a function of: Number and depth of relationships Success is a function of: Number and depth of relationships 2, 3, and 4 levels down inside and outside the organization2, 3, and 4 levels down inside and outside the organization

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

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

S = ƒ(#XFL/m)S = ƒ(#XFL/m)Number of lunches with colleagues in otherNumber of lunches with colleagues in otherfunctions per monthfunctions per month

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

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.”

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

*More or less*More or less

S =ƒ(#PK“S =ƒ(#PK“WW”P)”P)S = ƒ(#PK“S = ƒ(#PK“LL”P)”P) # of people you know in the “wrong” places# of people you know in the “wrong” places# people you know in “low” places# people you know in “low” places

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


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

oror


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

It helps to know people in …It helps to know people in …

highhigh places!”places!”

It helps It helps moremore to know people in … to know people in …

lowlow places!”places!”

Gust Avarkotos’ “boiler room” CIA palsGust Avarkotos’ “boiler room” CIA palsWalter’s “enabler” P.M. Thank You notesWalter’s “enabler” P.M. Thank You notesFlexirent’s XSec’s Customer PA lunchesFlexirent’s XSec’s Customer PA lunches

Anybody’sAnybody’s XSec XSecAnybody’s Anybody’s PAPA

AllAll customer Purchasing Dept receptionists customer Purchasing Dept receptionistsSecy Chaffee’s letter writerSecy Chaffee’s letter writerMcKinsey report prep staffMcKinsey report prep staff

McKinsey research staffMcKinsey research staffAdmiral’s AideAdmiral’s Aide

Congressional Committee staff drafterCongressional Committee staff drafterCongressman’s appropriate LACongressman’s appropriate LA

Anybody Anybody in Financein Finance

The previous entries are shorthand for stories about “low level” The previous entries are shorthand for stories about “low level” relationships determining “high level” decisions—or at least relationships determining “high level” decisions—or at least having surprising impact. Flexirent is an Australian consumer having surprising impact. Flexirent is an Australian consumer

financial services company. Its offerings are mostly made financial services company. Its offerings are mostly made through retailers—and following the “80-20 rule,” a small # of through retailers—and following the “80-20 rule,” a small # of

retailers control a large share of Flexirent’s business. The retailers control a large share of Flexirent’s business. The Executive Secretary-“PA” (Personal Assistant) to Flexirent’s CEO Executive Secretary-“PA” (Personal Assistant) to Flexirent’s CEO is a bright, energetic, outgoing person. Along the way, and not is a bright, energetic, outgoing person. Along the way, and not accidentally, she has developed very close relationships to the accidentally, she has developed very close relationships to the Pas of most of the CEOs of Flexirent’s major customers. Among Pas of most of the CEOs of Flexirent’s major customers. Among

other things, she more or less regularly (quarterly, roughly) other things, she more or less regularly (quarterly, roughly) takes her PA pals out for lunch. The goal on both sides is clear, takes her PA pals out for lunch. The goal on both sides is clear,

understood and shameless—to enhance unvarnished understood and shameless—to enhance unvarnished communications among these true “power players.” One can communications among these true “power players.” One can

only imagine the number of times, over, say, five years, that this only imagine the number of times, over, say, five years, that this “back channel” (“front Channel,” in reality) has paved the way “back channel” (“front Channel,” in reality) has paved the way for success and staved off disasters. The rest of the entries on for success and staved off disasters. The rest of the entries on

the slide are of the same ilk.the slide are of the same ilk.

S = ƒ(OF)S = ƒ(OF)Number of oddball friendsNumber of oddball friends

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

S = ƒ(“DSTM,” EH, TTAGFG)S = ƒ(“DSTM,” EH, TTAGFG)Don’t shoot the messenger—embrace him! Truth-tellers are Don’t shoot the messenger—embrace him! Truth-tellers are gifts from God!gifts from God!

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

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

18’18’ Source: Source: How Doctors ThinkHow Doctors Think, Jerome Groopman, Jerome Groopman

S= ƒ(TSHRO)S= ƒ(TSHRO)Time spent ... Hurdle Removing for OthersTime spent ... Hurdle Removing for Others

Peter Drucker once famously said, Peter Drucker once famously said, “Ninety-percent of “Ninety-percent of what we call ‘management’ consists of making it difficult what we call ‘management’ consists of making it difficult

for people to get things done.”for people to get things done.” There is more than a There is more than a grain of truth to that. On the other side, and there grain of truth to that. On the other side, and there can can be be

an “other side,” I see the manager’s principal role as an “other side,” I see the manager’s principal role as identifying things that get in people’s way (by asking identifying things that get in people’s way (by asking

them!) and meticulously getting those things out of their them!) and meticulously getting those things out of their way. Thence, you could cal the boss the CIRO, or way. Thence, you could cal the boss the CIRO, or Chief Chief Impedance Reduction OfficerImpedance Reduction Officer, or my choice, CHR, , or my choice, CHR, Chief Chief

Hurdle RemoverHurdle Remover. In any event the idea is that this is a/the . In any event the idea is that this is a/the primary task the boss performs—and that it is a primary task the boss performs—and that it is a

systematic, pro-active affair (e.g., on the daily agenda).systematic, pro-active affair (e.g., on the daily agenda).

S = ƒ(A#C, PTS/“OLC”, SAPA)S = ƒ(A#C, PTS/“OLC”, SAPA)Absolute # of consultations, perception of being taken seriously Absolute # of consultations, perception of being taken seriously (Responsible for “one line of code”), small acts of public (Responsible for “one line of code”), small acts of public appreciationappreciation

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

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

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

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

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

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

Champion = Champion = OneOne LineLine ofof CodeCode!!

““It works this way, Tom. You’re talking to a guy who’s It works this way, Tom. You’re talking to a guy who’s important to implementation down where the rubber important to implementation down where the rubber

meets the road. He’s skeptical—he either really is, or it’s meets the road. He’s skeptical—he either really is, or it’s the act he chooses to play. You go over the thing with him the act he chooses to play. You go over the thing with him

and he has a thousand objections. You nod your head a and he has a thousand objections. You nod your head a lot, and take copious notes. Then you go back to your lot, and take copious notes. Then you go back to your guys, and you find a few places where you can very guys, and you find a few places where you can very

specifically accommodate him. You make the changes, specifically accommodate him. You make the changes, even if they are pretty ugly. Then you go back to him,even if they are pretty ugly. Then you go back to him, and show him exactly what you’ve done. You have a and show him exactly what you’ve done. You have a ‘born again’ supporter. You took him seriously—and ‘born again’ supporter. You took him seriously—and

through the changes, he’s now your co-inventor, your through the changes, he’s now your co-inventor, your savior. Now he’s doing the selling for you. Hey, the whole savior. Now he’s doing the selling for you. Hey, the whole

damn thing wouldn’t have worked were it not for his damn thing wouldn’t have worked were it not for his interjections—that’s the way he frames it to his folks. I interjections—that’s the way he frames it to his folks. I

tell you, it never fails.”tell you, it never fails.”

Source: Australian IS-IT chief, mid-sized company in financial servicesSource: Australian IS-IT chief, mid-sized company in financial services

S = ƒ(SU)S = ƒ(SU)Showing upShowing up (Woody Allen, Delaware’s ridiculous influence on the (Woody Allen, Delaware’s ridiculous influence on the Constitution of the USA)Constitution of the USA)

S = ƒ(KSU, R)S = ƒ(KSU, R)Keep showing upKeep showing up; relentlessness (U.S. Grant!!); relentlessness (U.S. Grant!!)

S = ƒ(DW, TMSTTOG)S = ƒ(DW, TMSTTOG)Drill wells, try more stuffDrill wells, try more stuff than the other guy (John Masters, Mike than the other guy (John Masters, Mike Bloomberg)Bloomberg)

““Ninety Ninety percent of percent of success is success is

showing up.” showing up.” —Woody Allen

“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 are ready with wires and screws, By the time our rivals are ready with wires and screws,

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

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

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

S= ƒ(CM)S= ƒ(CM)Conscious calendar managementConscious calendar management

(the calendar never lies)(the calendar never lies)

You = Your You = Your calendarcalendar**

*Calendars *Calendars nevernever lie!lie!

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

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

Gandhi

S = ƒS = ƒ(CPRM, TS)(CPRM, TS)Conscious-planned Relationship management, Conscious-planned Relationship management,

time spent thereontime spent thereon

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

Far more important than “ROI”!Far more important than “ROI”!

RReturn eturn OOn n



FYI:FYI: “Relationship “Relationship power” = power” =

“Monopoly “Monopoly power”power”

The goal is clear—an “unfair” share of attention The goal is clear—an “unfair” share of attention from an internal staffer, a vendor, a customer. from an internal staffer, a vendor, a customer. We unabashedly pursue through good-better-We unabashedly pursue through good-better-

best relationships de facto monopoly—the best relationships de facto monopoly—the monopolization of other important folks’ love monopolization of other important folks’ love

and affection, as it were.and affection, as it were.

FYI:FYI: “Sustainable “Sustainable competitive competitive

advantage” = advantage” = “Relationship-based “Relationship-based

advantage” advantage” (period.)(period.)

Some Resources: RelationshipsSome Resources: Relationships

The Manager’s Book of DecenciesThe Manager’s Book of Decencies:: How Small Gestures How Small Gestures Build Great CompaniesBuild Great Companies—Steve Harrison—Steve HarrisonRespectRespect—Sara Lawrence-Lightfoot—Sara Lawrence-LightfootHostmanship:Hostmanship: The Art of Making People Feel Welcome The Art of Making People Feel Welcome—— Jan Gunnarsson & Olle Blohm (leader as host to his-Jan Gunnarsson & Olle Blohm (leader as host to his- her employees)her employees)The SPEED of Trust:The SPEED of Trust: The One Thing that Changes The One Thing that Changes EverythingEverything—Stephen M.R. Covey—Stephen M.R. CoveyThe Dream ManagerThe Dream Manager —Matthew Kelly—Matthew KellyThe Customer Comes Second:The Customer Comes Second: Put Your People First and Put Your People First and Watch ’Em Kick ButtWatch ’Em Kick Butt—Hal Rosenbluth and Diane—Hal Rosenbluth and Diane McFerrin Peters (no relation—be delighted if she was)McFerrin Peters (no relation—be delighted if she was)Crucial ConversationsCrucial Conversations—Kerry Patterson, Joseph Grenny,—Kerry Patterson, Joseph Grenny, Ron McMillan, Al SwitzlerRon McMillan, Al Switzler Crucial ConfrontationsCrucial Confrontations —Kerry Patterson, Joseph —Kerry Patterson, Joseph Grenny, Ron McMillan, Al SwitzlerGrenny, Ron McMillan, Al SwitzlerInfluence:Influence: Science and Practice Science and Practice—Robert Cialdini—Robert CialdiniEmotional IntelligenceEmotional Intelligence: Why It Can Matter More: Why It Can Matter More Than IQThan IQ—Daniel Goleman—Daniel Goleman

A few of my favorite “reads” on this topic—A few of my favorite “reads” on this topic—especially #1. The idea of “competitive-especially #1. The idea of “competitive-

advantage-through-decency” is extraordinary. advantage-through-decency” is extraordinary. Of course, “we know this”—but to see it spelled Of course, “we know this”—but to see it spelled

out this way may change the course of your out this way may change the course of your professional life.professional life.

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

S = ƒ(WLHAO)S = ƒ(WLHAO)Willingness to laugh heartily at oneselfWillingness to laugh heartily at oneself

S = ƒ(PTA100%A“T”S, E“NMF, TTT)S = ƒ(PTA100%A“T”S, E“NMF, TTT)Proactive, timely, 100% apologies for “tiny” screw-ups, even if not Proactive, timely, 100% apologies for “tiny” screw-ups, even if not my fault (it always takes two to tango)my fault (it always takes two to tango)

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

S = ƒ(RP, PRP>>P)S = ƒ(RP, PRP>>P)Never forget, and act accordingly: Response to the screwup-Never forget, and act accordingly: Response to the screwup-problem and problem and perceptionperception thereof is (far, far) more important thereof is (far, far) more important than the problem itself! than the problem itself!

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

S= ƒ(RCV)S= ƒ(RCV)Reduced customer visits (& more time on internal “customer” Reduced customer visits (& more time on internal “customer” relationships—that allow us to deliver on customer promises)relationships—that allow us to deliver on customer promises)

S= ƒ(U“PIATI”)S= ƒ(U“PIATI”)Understanding … “Perception is all there is!”Understanding … “Perception is all there is!”

S= ƒ(“EM”/NSTLT; “F”ITU, -80%)S= ƒ(“EM”/NSTLT; “F”ITU, -80%)““Everything matters”/No such thing as a “little thing”—etching of fly Everything matters”/No such thing as a “little thing”—etching of fly in the urinal in Amsterdam airport reduces “spillage” by 80%in the urinal in Amsterdam airport reduces “spillage” by 80%

S= ƒ(A“L”IOE)S= ƒ(A“L”IOE)Attention to “little” Indicators Of Excellence—e.g. fresh flowersAttention to “little” Indicators Of Excellence—e.g. fresh flowersat the reception deskat the reception desk

S= ƒ(“GGT”)S= ƒ(“GGT”)““Give good tea”—Ben Franklin in Paris in 1777, Norm Schwarzkopf Give good tea”—Ben Franklin in Paris in 1777, Norm Schwarzkopf with the Saudi Crown Prince during Gulf War I; effectiveness at with the Saudi Crown Prince during Gulf War I; effectiveness at

socializing with the “power behind the throne”socializing with the “power behind the throne”

GiveGive good good tea!* tea!*

*Norm S, Ben F*Norm S, Ben F

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

S = ƒ(WLHAO)S = ƒ(WLHAO)Willingness to laugh heartily at oneselfWillingness to laugh heartily at oneself

S = ƒ(RP, PRP>>P)S = ƒ(RP, PRP>>P)Never forget, and act accordingly: Response to the screwup-Never forget, and act accordingly: Response to the screwup-problem and problem and perceptionperception thereof is (far, far) more important thereof is (far, far) more important than the problem itself! than the problem itself!

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

S= ƒ(3X“O”C)S= ƒ(3X“O”C)““Over”-communicate (status, problems)Over”-communicate (status, problems)

by a factor of threeby a factor of three

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

THE RESPONSE TO THE RESPONSE TO THE PROBLEM THE PROBLEM

INVARIABLY ENDS INVARIABLY ENDS UP BEING THE REAL UP BEING THE REAL

PROBLEMPROBLEM.

FFLLOOWWEERRPPOOWWEERR

S = ƒ(Thank you notesS = ƒ(Thank you notes per per DayDay, , fflloowweerrss given per Month,given per Month, Acts of Appreciation Acts of Appreciation per Week)per Week)

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

William JamesWilliam James




—Henry Clay

S = ƒ(PTA100%A“T”S, E“NMF, TTT)S = ƒ(PTA100%A“T”S, E“NMF, TTT)Proactive, timely, 100% apologies for “tiny” screw-ups, even if not Proactive, timely, 100% apologies for “tiny” screw-ups, even if not my fault (it always takes two to tango)my fault (it always takes two to tango)

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

Power phrase:Power phrase: “I’m “I’m really really sorry.”sorry.”

Amazing how rare this is—which of courseAmazing how rare this is—which of course is why it’s so powerful. is why it’s so powerful.

Power phrase:Power phrase: “I “I screwed screwed

up.”up.”

S = ƒ(G)S = ƒ(G)GraceGrace

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

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

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

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

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

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

““What I learned from my What I learned from my years as a hostage negotiator years as a hostage negotiator is that we do not have to feel is that we do not have to feel

powerless—and that powerless—and that

bondinbondingg is the is the antidote to the hostage antidote to the hostage

situation.”situation.”

—George Kohlrieser, —George Kohlrieser, Hostage at the Table Hostage at the Table (GK’s (GK’s

negotiation success rate is negotiation success rate is >95%>95%))

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

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

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

S = ƒ(%WLP)S = ƒ(%WLP)% women in leadership positions% women in leadership positions

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

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

““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

This “relationship stuff” comes naturally to This “relationship stuff” comes naturally to women (for starters, from the genes); and is women (for starters, from the genes); and is

painfully difficult for many-most men.painfully difficult for many-most men.

S = ƒS = ƒ

(%TM“TSS,” (%TM“TSS,” PM“TSS,” PM“TSS,”

D“TD”“TSS”)D“TD”“TSS”)% of time, measured, on This % of time, measured, on This Soft StuffSoft Stuff, ,

purposeful management of this purposeful management of this Soft StuffSoft Stuff, , daily “to do” concerning “this daily “to do” concerning “this Soft StuffSoft Stuff””

Q: Q: But where’sBut where’s the beef?the beef?

A: A: This This isis the beef!the beef!

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

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

less important.”less important.”

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

O(B) = O(B) = ƒƒ(XX)(XX)O(B), the “blueness” of one’s “ocean” [think O(B), the “blueness” of one’s “ocean” [think Blue Ocean Blue Ocean StrategyStrategy, the popular book], is directly proportional to , the popular book], is directly proportional to

one’s one’s eXcellence in eXecution/XXeXcellence in eXecution/XX, per , per me. [If one finds a “strategic” “blue ocean,” one will, me. [If one finds a “strategic” “blue ocean,” one will,

especially in today’s world, copied immediately; the only especially in today’s world, copied immediately; the only “defense”—possibility of sustaining success—is “defense”—possibility of sustaining success—is

XX/eXcellence in eXecution. Think EXXON MOBIL; they and XX/eXcellence in eXecution. Think EXXON MOBIL; they and their rivals know where the hydrocarbons are—but EXXON their rivals know where the hydrocarbons are—but EXXON

MOBIL handily out-executes the competition.]MOBIL handily out-executes the competition.]

““Equations” #48, #49 and #50 are more Equations” #48, #49 and #50 are more about organizational effectiveness than about organizational effectiveness than

individual effectiveness—and thus round out individual effectiveness—and thus round out this brief presentation.this brief presentation.

S(O) =S(O) = ƒ ƒ(XXFX)(XXFX)The single most important cause of failure to execute The single most important cause of failure to execute

effectively is the lack of effective cross-functional effectively is the lack of effective cross-functional communication-execution. Hence, Organizational Success is a communication-execution. Hence, Organizational Success is a

function of function of eXcellence (X) in cross-eXcellence (X) in cross-functional (XF) eXecution (X).functional (XF) eXecution (X). Attached Attached as Appendix II is my: as Appendix II is my: The “XF-50”: 50 Ways to Enhance Cross-The “XF-50”: 50 Ways to Enhance Cross-

Functional Effectiveness and Deliver Speed, “Service Functional Effectiveness and Deliver Speed, “Service Excellence” and “Value-added Customer ‘Solutions.’”Excellence” and “Value-added Customer ‘Solutions.’”

S(O) =S(O) = ƒ ƒ(X“SIT”)(X“SIT”)In 1982 in In 1982 in In Search of ExcellenceIn Search of Excellence, Bob Waterman and I , Bob Waterman and I

wrote about the idea of “MBWA,” or Managing By wrote about the idea of “MBWA,” or Managing By Wandering Around; we came across “MBWA” at Hewlett-Wandering Around; we came across “MBWA” at Hewlett-

Packard, then a much smaller company, and it was love at Packard, then a much smaller company, and it was love at first sight! For reasons described in Appendix III, I recently first sight! For reasons described in Appendix III, I recently returned to the centrality of that notion—and created a list returned to the centrality of that notion—and created a list of 50 “Have Yous.” That is, instead of worrying ceaselessly of 50 “Have Yous.” That is, instead of worrying ceaselessly about “strategy” and “blue oceans,” how good a job have about “strategy” and “blue oceans,” how good a job have you done at Staying In Touch with your extended internal you done at Staying In Touch with your extended internal

and external “organizational family”? That is: S(O), and external “organizational family”? That is: S(O),

Organizational Success, is a function of Organizational Success, is a function of X “SIT,” X “SIT,” eXcellence at Staying In Touch.eXcellence at Staying In Touch.

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

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

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

relationships))relationships))

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

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

isn’t just one aspect of the

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

Who Says Elephants Can’t Dance

The tough-minded Mr Gerstner becameThe tough-minded Mr Gerstner became a reluctant convert to the power of a reluctant convert to the power of

this “soft stuff.”this “soft stuff.”

FFLLOOWWEERRPPOOWWEERRFFLLOOWWEERRPPOOWWEERR

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