11. 21 In Search of … In Search of … Excellence? Excellence? Tom? Tom? Food? Food?

11

21

In Search of …In Search of …

Excellence?Excellence? Tom?Tom? Food?Food?

31

PreludePrelude

41

“I am often asked by would-be entrepreneurs seeking escape from life within huge corporate

structures, ‘How do I build a small firm for

myself?’ The answer seems obvious: Buy Buy a very large one a very large one and just waitand just wait.”.”

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

1

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

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

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

outoutpperform the market. Worse, the erform the market. Worse, the lonlongger comer comppanies had been in the anies had been in the

database, the worse thedatabase, the worse theyy did did.” .” —Financial Times—Financial Times

61

““Data drawn from the real world Data drawn from the real world attest to a fact that is beyond our attest to a fact that is beyond our

control:control: Everything in existence tends to

deteriorate.” —Norberto Odebrecht, —Norberto Odebrecht, Education Through WorkEducation Through Work

71

PreludePrelude

14,00014,00020,00020,000

14,00014,00020,00020,000

3030

14,000/14,000/eeBayBay20,000/Amazon20,000/Amazon

3030/Craigslist/Craigslist

111

PreludePrelude

1

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

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

1

18”18”

141

[An obsession with] Listening is ... the ultimate mark[An obsession with] Listening is ... the ultimate mark of of RespectRespect..Listening is ... the heart and soul of Listening is ... the heart and soul of EngagementEngagement..Listening is ... the heart and soul of Listening is ... the heart and soul of KindnessKindness..Listening is ... the heart and soul of Listening is ... the heart and soul of ThoughtfulnessThoughtfulness..Listening is ... the basis for true Listening is ... the basis for true Collaboration.Collaboration.Listening is ... the basis for true Listening is ... the basis for true PartnershipPartnership..Listening is ... a Listening is ... a Team SportTeam Sport..Listening is ... a Listening is ... a Developable Individual SkillDevelopable Individual Skill.* .* (*Though women (*Though women are are farfar better at it than men.) better at it than men.)

Listening is ... the basis for Listening is ... the basis for CommunityCommunity..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures that workJoint Ventures that work..Listening is ... the bedrock of Listening is ... the bedrock of Joint Ventures thatJoint Ventures that lastlast..Listening is ... the core of Listening is ... the core of effective Cross-functional effective Cross-functional Communication* Communication* (*Which is in turn Attribute #1 of (*Which is in turn Attribute #1 of organizational effectiveness.)organizational effectiveness.)

[cont.][cont.]

151

Listening is ... the engine of Listening is ... the engine of superior EXECUTION.superior EXECUTION.Listening is ... the key to Listening is ... the key to making the Sale.making the Sale.Listening is ... the key to Listening is ... the key to Keeping the Customer’s BusinessKeeping the Customer’s Business..Listening is ... the engine of Listening is ... the engine of Network development.Network development.Listening is ... the engine of Listening is ... the engine of Network maintenanceNetwork maintenance..Listening is ... the engine of Listening is ... the engine of Network expansionNetwork expansion..Listening is ... Social Networking’s Listening is ... Social Networking’s “secret weapon.”“secret weapon.”Listening is ... Listening is ... Learning.Learning.Listening is ... the Listening is ... the sine qua non of Renewalsine qua non of Renewal..Listening is ... the Listening is ... the sine qua non of Creativitysine qua non of Creativity..Listening is ... the Listening is ... the sine qua non of Innovationsine qua non of Innovation..Listening is ... the core of Listening is ... the core of taking Diverse opinions aboardtaking Diverse opinions aboard..Listening is ... Listening is ... StrategyStrategy..Listening is ... Listening is ... Source #1 of “Value-added.”Source #1 of “Value-added.”Listening is ... Listening is ... Differentiator #1.Differentiator #1.Listening is ... Listening is ... Profitable.*Profitable.* (*The “R.O.I.” from listening is higher than(*The “R.O.I.” from listening is higher than from any other single activity.)from any other single activity.)

Listening is … the bedrock which underpins a Listening is … the bedrock which underpins a Commitment toCommitment to EXCELLENCEEXCELLENCE

1

*Listening is of the*Listening is of the

utmost … utmost … strategicstrategic importance! importance!

*Listening is a proper … *Listening is a proper …

core core valuevalue ! !

*Listening is … *Listening is … trainabletrainable !!

*Listening is a … *Listening is a … professionprofession ! !

171

PreludePrelude

181

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

healing, restorative gesture healing, restorative gesture human beings can make. It is human beings can make. It is the centerpiece of my work the centerpiece of my work with executives who want to with executives who want to

get better.”get better.” —Marshall Goldsmith—Marshall Goldsmith, What , What

Got You Here Won’t Get You There: How Successful People Got You Here Won’t Get You There: How Successful People BecomeBecome

Even More Successful Even More Successful

191

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

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

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

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

1

Potlatch.Potlatch.

1

*effective “Repair’ is of the*effective “Repair’ is of the


*effective repair is a proper …*effective repair is a proper …


*effective repair is …*effective repair is …

trainabletrainable !!

*effective repair is a …*effective repair is a …

professionprofession ! !

221

““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

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

Economic Growth Is Economic Growth Is Driven by Driven by

WomenWomen.”.”

Source: Headline, Economist

1

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

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

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

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

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

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

Zieseniss de Thuin, Women’s Forum for the Economy and Society Zieseniss de Thuin, Women’s Forum for the Economy and Society

251

PreludePrelude

1

““The The fourfour most most importantimportant wordswords in in any organization any organization

are …are …

1

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

are …are … “What do “What do youyou

think?”think?”

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

1

““The deepest human The deepest human

need is the …need is the … need to be need to be

appreciated.”appreciated.”—William James—William James

1

*appreciation is of the*appreciation is of the


*appreciation is a proper … *appreciation is a proper …


*appreciation is … *appreciation is … trainabletrainable !!

*appreciation is a … *appreciation is a … professionprofession ! !

1

And the answer is ….And the answer is ….

otisotis

311

PreludePrelude

1

nonenone!!

1

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

nonenone of THE top 15 of THE top 15

factors determining factors determining PPatient atient

SSatisfaction referred to patient’s atisfaction referred to patient’s health health outcomeoutcome

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

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

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

1

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

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

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

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

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

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

1

““KindnesKindness is s is

free.”free.”

361

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

371

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

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

1

*Thoughtfulness is of the*Thoughtfulness is of the


*thoughtfulness is a proper … *thoughtfulness is a proper …


*Thoughtfulness is … *Thoughtfulness is … trainabletrainable !!

*Thoughtfulness is a … *Thoughtfulness is a …

professionprofession !!

1

““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

401

PreludePrelude

1

problem #1.Opportunity

#1.Period.

1

X X =XFX*=XFX*

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

1

Never Never waste a waste a lunch!lunch!

1

????????

% XF % XF lunches*lunches*

*Measure!*Measure!

1

(Way) Underutilized Lever(Way) Underutilized Lever

Space!Space!Space!Space!Space!Space!Space!Space!

461

Geologists + Geologists + Geophysicists + Geophysicists +

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

OilOil

1

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

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

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

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

481

PreludePrelude

491

Little =Little =

BIBIGG

501

Big carts =Big carts =

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

511

Bag sizes = New markets:Bag sizes = New markets:

$B$BSource: PepsiCoSource: PepsiCo

1

Socks = Socks = 10,00010,000

1

<TG<TGWWand …and …

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

541

““May I clean May I clean your your

glasses, glasses, sir?”sir?”

551

(1)(1) Amenable to rapid Amenable to rapid experimentation/experimentation/ failure “free” (PR, $failure “free” (PR, $

$)$)(2)(2) Quick to implement/ Quick to implement/ Quick to Roll outQuick to Roll out(3)(3) Inexpensive to Inexpensive to implement/Roll outimplement/Roll out(4)(4) Huge multiplier Huge multiplier(5)(5) An “Attitude” An “Attitude”

561

PreludePrelude

1

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

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

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

His immediate answer …His immediate answer …

1

““remember remember to tuck the to tuck the

shower curtain shower curtain inside the inside the bathtubbathtub””

1

““Execution Execution isis strategy.”strategy.”

—Fred Malek—Fred Malek

1

““The art of war does not The art of war does not require complicated require complicated

maneuvers; the simplest maneuvers; the simplest are the best and common are the best and common

sense is fundamental. From sense is fundamental. From which one might wonder which one might wonder how it is generals make how it is generals make

blunders; blunders; it is because theit is because theyy trtryy to be clever to be clever.”.” —Napoleon—Napoleon

611

PreludePrelude

621

Read This!

Richard Farson & Ralph Keyes:

Whoever Makes Whoever Makes the Most Mistakes the Most Mistakes Wins: The Paradox Wins: The Paradox

of Innovationof Innovation

631

““Fail .Fail . Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

1

“The secret of fast progress is

inefficiency, fast and furious and

numerous failures.”

—Kevin Kelly

651

““RewardReward excellent failures.

PunishPunish mediocre

successes.”Phil Daniels, Sydney exec

1

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

failure—you must failure—you must ‘celebrate’ ‘celebrate’

failure.”failure.” —Richard Farson (—Richard Farson (Whoever Whoever

Makes the Most Mistakes WinsMakes the Most Mistakes Wins))

671

LONGLONG

Tom Peters’Tom Peters’

ExcellenceExcellence..

Always.Always.Toronto/16 October 2009Toronto/16 October 2009

681

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

tompeters.comtompeters.com

69

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”

701

#1#1

711

19771977

721

MBWAMBWA

731

Message from a banker, circa 1988:Message from a banker, circa 1988: “Tom let “Tom let me tell you the definition of a me tell you the definition of a

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

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

takes a look.”takes a look.”

1

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

751

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

761

2255

771

#2#2

781

19821982

791

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”

1

““Breakthrough” 82*Breakthrough” 82*

People! People! Customers! Customers!

Action! Action!

Values!Values! **In Search of ExcellenceIn Search of Excellence

1

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

1

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

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

relationships))relationships))

831

#3#3

841

20072007SiberiaSiberia

851

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

861

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

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

871

#4#4

881

20072007SydneySydney

1

… … no less than no less than CathedralsCathedrals

in which the full and awesome in 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 diverse of diverse

individualsindividuals is unleashed in is unleashed in passionate pursuit of … passionate pursuit of …

ExcellenceExcellence..

901

““Leaders Leaders

‘‘SERVESERVE’’ people. people.

Period.”Period.” —inspired by Robert Greenleaf

1

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

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

921

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

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

worth worth doingdoing.”.”

——Richard BransonRichard Branson

931

Good News 2009:Good News 2009: Leadership*Leadership* is a sacred is a sacred

trust.trust.*President, classroom teacher, CEO, shop foreman*President, classroom teacher, CEO, shop foreman

941

#5#5

951

20092009DallasDallas

961

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

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

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

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

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

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

971

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

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

981

The Dream ManagerThe Dream Manager —Matthew Kelly—Matthew Kelly

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

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

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

achieve its achieve its ppururppose’—but theose’—but theyy would be would be wronwrong. g. That is certainlThat is certainlyy part of the part of the emploemployyee’s role, but an emploee’s role, but an employyee’s ee’s

pprimarrimaryy ppururppose is to become the-best-ose is to become the-best-version-of-himself or –herselfversion-of-himself or –herself.. … When a … When a

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

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

customers.”customers.”

991

Our goal is to serve our customers brilliantly and Our goal is to serve our customers brilliantly and profitably over the long haul.profitably over the long haul.

Serving our customers brilliantly and profitably over the Serving our customers brilliantly and profitably over the long haul is a product of brilliantly serving over the long long haul is a product of brilliantly serving over the long

haul the people who serve the customer.haul the people who serve the customer.Hence, our job as leaders—the alpha and the omega and Hence, our job as leaders—the alpha and the omega and everything in between—is abetting the sustained growth everything in between—is abetting the sustained growth

and success and engagement and enthusiasm and and success and engagement and enthusiasm and commitment to Excellence of those, one at a time, who commitment to Excellence of those, one at a time, who

directly or indirectly serve the ultimate customer.directly or indirectly serve the ultimate customer.We—leaders of every stripe—are in the “Human Growth We—leaders of every stripe—are in the “Human Growth

and Development and Success and Aspiration to and Development and Success and Aspiration to Excellence business.”Excellence business.”

““We” [leaders] only grow when “they” [each and every We” [leaders] only grow when “they” [each and every one of our colleagues] are growing.one of our colleagues] are growing.

““We” [leaders] only succeed when “they” [each and We” [leaders] only succeed when “they” [each and every one of our colleagues] are succeeding.every one of our colleagues] are succeeding.

““We” [leaders] only energetically march toward We” [leaders] only energetically march toward Excellence when “they” [each and every one of our Excellence when “they” [each and every one of our

colleagues] are energetically marching toward colleagues] are energetically marching toward Excellence.Excellence.

Period.Period.Source:Source: The Little BIG Things: 163 Ways to Pursue EXCELLENCE The Little BIG Things: 163 Ways to Pursue EXCELLENCE

1001

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

actors and actresses canactors and actresses can become more than become more than they’ve ever been they’ve ever been before, more than before, more than

they’ve dreamed of they’ve dreamed of beingbeing.”.” —Robert Altman, Oscar acceptance —Robert Altman, Oscar acceptance

speechspeech

1011

#6#6

1021

20092009New DelhiNew Delhi

1

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

the … the … three three peoplepeople … whose growth you’ve … whose growth you’ve

most contributed to. Please explain where they were at the most contributed to. Please explain where they were at the beginning of the year, where they are today, and where they are beginning of the year, where they are today, and where they are heading in the next 12 months. Please explain your development heading in the next 12 months. Please explain your development strategy in each case. Please tell me your biggest development strategy in each case. Please tell me your biggest development disappointment—looking back, could you or would you have done disappointment—looking back, could you or would you have done

anything differently? Please tell me about your greatest anything differently? Please tell me about your greatest development triumph—and disaster—in the last ten years. Whatdevelopment triumph—and disaster—in the last ten years. What are the ‘three big things’ you’ve learned about helping people are the ‘three big things’ you’ve learned about helping people

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

1041

#7#7

1051

““d”iversity:d”iversity: “ “Diverse groups of Diverse groups of problem solvers—groups of people with diverse problem solvers—groups of people with diverse tools—consistently outperformed groups of the tools—consistently outperformed groups of the best and the brightest. If I formed two groups, best and the brightest. If I formed two groups, one one randomrandom (and therefore diverse) and one (and therefore diverse) and one consisting of the consisting of the bestbest individual performers, individual performers, the first group almost always did better. …the first group almost always did better. …

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

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

1

We We areare the the companycompany we keepwe keep

1071

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

1

The “We are what we eat”The “We are what we eat”

axiom: axiom: At its core, At its core, evereveryy (!!!) (!!!) relationship-partnership decision relationship-partnership decision

(employee, vendor, customer, etc) is (employee, vendor, customer, etc) is a a stratestrateggicic decision about: decision about:

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

1

““[CEO A.G.] Lafley has shifted [CEO A.G.] Lafley has shifted P&G’sP&G’s focus on inventing focus on inventing

all its own products to developingall its own products to developing

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

timetime.. One successfulOne successful

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

1101

““You will become like You will become like the five people you the five people you associate with the associate with the most—this can be most—this can be

either a blessing or a either a blessing or a curse.”curse.”

——Billy CoxBilly Cox

1111

#8#8

1

Innovation’s “Fourteen Imperatives”Innovation’s “Fourteen Imperatives”

(1)(1) Try it. Repeat. (“1/40.”) (“R.F.A.”/ Try it. Repeat. (“1/40.”) (“R.F.A.”/ Ready. Fire. Aim.) (Non-Linear!)Ready. Fire. Aim.) (Non-Linear!)

Prototype it./MTTP (Mean Time To Prototype.)/(Inno. = Prototype it./MTTP (Mean Time To Prototype.)/(Inno. = Reaction Reaction to Proto.)to Proto.)

(2)(2) Celebrate Celebrate failure. failure. ““Whoever makes the most mistakes wins.”Whoever makes the most mistakes wins.” “ “Fail. Fail again. Fail better.”Fail. Fail again. Fail better.” “ “Reward excellent failures. Punish mediocre successes.”Reward excellent failures. Punish mediocre successes.”

(3) Decentralize.Decentralize.(4)(4) Parallel Universe. Parallel Universe. (5)(5) “Hang Out” Axiom. (Hang “cool” = More “Hang Out” Axiom. (Hang “cool” = More

cool. Dull = Dull.)cool. Dull = Dull.)(6)(6) “d”iversity. ( “d”iversity. (EveryEvery dimension.) dimension.)(7)(7) Co-invent with outsiders./ Co-invent with outsiders./EntwinedEntwined with with

outsiders. outsiders. (Including “Crowdsourcing.”)(Including “Crowdsourcing.”)

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Innovation’s “Fourteen Imperatives”Innovation’s “Fourteen Imperatives”

(8)(8) “Strategic”“Strategic” Listening = Core competence. Listening = Core competence. (9)(9) Hire and promote 100% innovators. Hire and promote 100% innovators. Innovator’s characteristic = Innovator.Innovator’s characteristic = Innovator. Innovator’s characteristic = Angry. (Anger > Blowback.)Innovator’s characteristic = Angry. (Anger > Blowback.) CEO=Innovation “bias.”CEO=Innovation “bias.”

(10)(10) XFX/Cross-functional Excellence!! (#1??) XFX/Cross-functional Excellence!! (#1??)(11)(11) Chief Complexity & Systems Destruction Chief Complexity & Systems Destruction

Officer.Officer.(12)(12) R&D Equality. R&D Equality. All functions equal. (VA centerpiece./All functions equal. (VA centerpiece./AllAll staff VA- staff VA-

meisters.) meisters.)

(13)(13) Fun! Self-deprecating! Fun! Self-deprecating!(14)(14) Good luck! (Entropy rules.) (Major Good luck! (Entropy rules.) (Major

acquisition = Dumb.) acquisition = Dumb.) (All these things work except when they don’t.)(All these things work except when they don’t.)

Documents

11. 21 In Search of … In Search of … Excellence? Excellence? Tom? Tom? Food? Food?