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

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

fonts:fonts:

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

andand “Verdana”“Verdana”

Before we Before we begin …begin …

If the regimental commander lost most If the regimental commander lost most of his 2nd lieutenants and 1st of his 2nd lieutenants and 1st

lieutenants and captains and majors, it lieutenants and captains and majors, it

would be a tragedy. would be a tragedy. If he If he lost his lost his

serserggeants it eants it would be a would be a

catastrocatastropphehe..

#1#1 cause of cause of

employee employee Dis-satisfaction?Dis-satisfaction?

Employee retention & satisfaction:Employee retention & satisfaction:

OverwhelminOverwhelminggllyybased on the based on the

first-line first-line manamanagger!er!

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

Capital Asset Capital Asset

**Selecting and training and**Selecting and training and mentoring one’s pool of front- mentoring one’s pool of front- line managers can be a “Core line managers can be a “Core Competence” of surpassing Competence” of surpassing strategic importance. strategic importance.**Put under a microscope every**Put under a microscope every attribute of the cradle-to- attribute of the cradle-to- grave process of building the grave process of building the capability of our cadre of capability of our cadre of front-line managers. front-line managers.

Capital Asset Capital Asset

I am sure you “spend time” onI am sure you “spend time” on this. My question: Is it an this. My question: Is it an

OBSESSIONOBSESSION

worthy of the impact it has on worthy of the impact it has on enterprise performance?enterprise performance?

Tom Peters’Tom Peters’

Excellence.Excellence.Always.Always.

Riyadh/23 October 2010Riyadh/23 October 2010(Slides/Slides LONG at (Slides/Slides LONG at tompeters.comtompeters.com))

Part One Part One

The “3H The “3H Theory of Theory of

Everything”Everything”

All you need to know …All you need to know …

HiltonHiltonHowardHowardHerbHerb

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

was asked, was asked, “What was the most important lesson you’ve learned in your long and distinguished

career?” His immediate His immediate answer …answer …

““remember remember to tuck the to tuck the

shower curtain shower curtain inside the inside the bathtubbathtub””

““Execution Execution isis strategy.”strategy.”

—Fred Malek—Fred Malek

““In real life, strategyIn real life, strategy is actually very is actually very

straightforward. Pickstraightforward. Pick a general direction a general direction

and implementand implement like hell” like hell” —Jack Welch—Jack Welch

All you need to know …All you need to know …

HiltonHiltonHowardHowardHerbHerb

2255

19771977

MBWMBWAA

Managing By Wandering Around/Managing By Wandering Around/HPHP

19821982

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

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

““Breakthrough” 82*Breakthrough” 82*

People! People! CustomersCustomers

! ! Action! Action! Values! Values!

**In Search of ExcellenceIn Search of Excellence

Hard Is SoftHard Is SoftSoft Is HardSoft Is Hard

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

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

relationships)relationships)

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

or …or …

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

1. Have you in the1. Have you in the last 10 days … last 10 days … visited a visited a customecustomer?r?2. Have you called a2. 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.)

All you need to know …All you need to know …

HiltonHiltonHowardHowardHerbHerb

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

employees like employees like customers.”customers.” —Herb —Herb

Kelleher, upon being asked his “secret to success”Kelleher, upon being asked his “secret to success”

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

Meeting)Meeting)

"If you want staff to "If you want staff to give great service, give great service, give great service to give great service to staff."staff." —Ari Weinzweig, Zingerman's

““The path to a The path to a hostmanshihostmanshipp culture paradoxically culture paradoxically

does not go through the guest. In fact it wouldn’t be totally wrong to say does not go through the guest. In fact it wouldn’t be totally wrong to say that the guest has nothing to do with it.that the guest has nothing to do with it. True hostmanship leaders focus True hostmanship leaders focus

on their employees. What drives exceptionalism is finding the right on their employees. What drives exceptionalism is finding the right people and getting them to love their work and see it as a passion. ... people and getting them to love their work and see it as a passion. ...

The guest comes into the picture only when you are ready to ask, ‘The guest comes into the picture only when you are ready to ask, ‘Would Would you prefer to stay at a hotel where the staff love their work or where you prefer to stay at a hotel where the staff love their work or where

management has made customers its highest priority?’”management has made customers its highest priority?’”

““We went through the hotel and made We went through the hotel and made

a ... a ... ‘‘consideration consideration renovationrenovation.’.’ Instead of redoing Instead of redoing bathrooms, dining rooms, and guest bathrooms, dining rooms, and guest

rooms, we gave employees new uniforms, rooms, we gave employees new uniforms, bought flowers and fruit, and changed bought flowers and fruit, and changed

colors.colors. Our focus was totally on the staff. They were the ones we Our focus was totally on the staff. They were the ones we wanted to make happy. We wanted them to wake up every morning wanted to make happy. We wanted them to wake up every morning

excited about a new day at work.”excited about a new day at work.”

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

Brand Brand = =

Talent.Talent.

Our Mission

To develop and manage To develop and manage talent;talent;

to apply that talent,to apply that talent,throughout the world, throughout the world,

for the benefit of clients;for the benefit of clients;to do so in partnership; to do so in partnership;

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

WPP

Luiza Helena, Luiza Helena, Magazine Luiza*Magazine Luiza*

*Wegmans*Wegmans

All you need to know …All you need to know …

HiltonHiltonHowardHowardHerbHerb

3H3H: : HHilton, ilton, HHoward, oward, HHerberb

****Sweat the details!Sweat the details!****Stay in touch!Stay in touch!****It’s all about theIt’s all about the people! people!

Part Two Part Two

Tom Peters’Tom Peters’

Excellence.Excellence.Always.Always.

InnovateInnovate..OrOr. . DieDie..

Paul Ormerod: “I am often I am often asked by would-be asked by would-be

entrepreneurs seeking entrepreneurs seeking escape from life within escape from life within

huge corporate huge corporate structures, ‘How do I structures, ‘How do I build a small firm for build a small firm for myself?’ The answer myself?’ The answer

seems obviousseems obvious … …

“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 very Buy a very largelarge

one and just one and just waitwait.”.” —Paul Ormerod, Why Most Things

Fail: Evolution, Extinction and Economics

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

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

TheTheyy found that found that nonenone ofof

the lon 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

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

our control:our control: Everything in existence tends to deteriorate.”

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

Dick Kovacevich: You don’t get better by

being bigger. You get worse.”

“When asked to name just one big merger that had lived up to

expectations, Leon Cooperman, former cochairman of Goldman Sachs’

Investment Policy Committee,

answered: I’m sure there are success stories out

there, but at this moment I draw a

blank.” —Mark Sirower, The Synergy Trap

“Not a single company that qualified as having made a sustained transformation ignited its leap with a big

acquisition or merger. Moreover, Moreover, comparison companies—those that failed to make a comparison companies—those that failed to make a leap or, if they did, failed to sustain it—often tried to leap or, if they did, failed to sustain it—often tried to

make themselves great with amake themselves great with a big acquisition or merger. They failed to grasp the big acquisition or merger. They failed to grasp the

simple truth that while you can buysimple truth that while you can buy your way to growth, you cannot buy your way to your way to growth, you cannot buy your way to

greatness.”greatness.” —Jim Collins/—Jim Collins/TimeTime/2004/2004

“Acquisitions are about buying market share.

Our challenge is Our challenge is to create to create

marketsmarkets.. There is a big difference.”

—Peter Job, former CEO, Reuters

The The InnovateInnovate

or Die or Die 2020

#1#1

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

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

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

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

1/41/455

““ExperimenExperiment t

fearlessly”fearlessly”Source: BusinessWeek, Type A Organization Strategies/

“How to Hit a Moving Target”—Tactic #1Tactic #1

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

““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, We fixed them by doing it over and over, again and again.again and again. We do the same today. While our We do the same today. While our competitors are still sucking their thumbs trying to competitors are still sucking their thumbs trying to

make the design perfect, we’re already on prototype make the design perfect, we’re already on prototype

versionversion ##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

READY.READY.FIRE!FIRE!AIM.AIM.

Ross Perot (vs Ross Perot (vs “Aim! Aim! Aim!”“Aim! Aim! Aim!” /EDS vs GM/1985 /EDS vs GM/1985)

Korea!Korea!

Culture of PrototypingCulture of Prototyping

“Effective prototyping may “Effective prototyping may

be be thethe most most valuablevaluable core core competencecompetence an an

innovative organization can innovative organization can hope to have.”hope to have.” —Michael Schrage—Michael Schrage

Think about It!?Think about It!?

Innovation Innovation = = Reaction to the Reaction to the

PrototypePrototype

Source: Michael SchrageSource: Michael Schrage

#1A#1A

““Fail.Fail. Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

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

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

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

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

““RewardReward excellent failures.

PunishPunish mediocre successes.”

Phil Daniels, Sydney exec

“The secret of fast progress is

inefficiency, fast and furious and

numerous failures.”

—Kevin Kelly

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

Success 101:Success 101: “Whoever “Whoever tries the most stuff and tries the most stuff and screws the most stuff up screws the most stuff up

and most rapidly and most rapidly launches the next try launches the next try

wins. Failures are not to wins. Failures are not to be ‘tolerated,’ they are be ‘tolerated,’ they are

to be celebrated.”to be celebrated.”

#1B#1B

1/4,0001/4,000

““You miss You miss

100100%%

of the shots of the shots you never you never

take.”take.” —Wayne—Wayne GretzkyGretzky

Excellence1982: The Bedrock “Eight Basics”

1. A Bias for ActionA Bias for Action2. Close to the Customer3. Autonomy and Entrepreneurship4. Productivity Through People5. Hands On, Value-Driven6. Stick to the Knitting7. Simple Form, Lean Staff8. Simultaneous Loose-Tight Properties

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

anxious to win”anxious to win”

#1C#1C

He who has the He who has the quickest quickest

“O.O.D.A. “O.O.D.A. Loops”Loops”** wins! wins!

**OObserve. bserve. OOrient. rient. DDecide. ecide. AAct. /Col. John Boydct. /Col. John Boyd

OODA Loop/Boyd CycleOODA Loop/Boyd Cycle

“Unraveling the competition”“Unraveling the competition” / Quick / Quick Transients/ Quick Tempo (NOT JUST Transients/ Quick Tempo (NOT JUST

SPEED!)/ Agility/ SPEED!)/ Agility/ “So quick it is “So quick it is disconcerting”disconcerting” (adversary over-reacts (adversary over-reacts

or under-reacts)/ “Winners used or under-reacts)/ “Winners used tactics that caused the enemy to tactics that caused the enemy to unravel before the fight” (NEVER unravel before the fight” (NEVER

HEAD TO HEAD)HEAD TO HEAD)

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

#2#2

The “Parallel The “Parallel Universe” Universe”

AxiomAxiom

““Venture” Venture” fund:fund: Gerstner/Amex, Dow/Marriott, Grove/Intel,

Bedbury/Starbucks

SkunkWorks/ SkunkWorks/ “Skunks” (!!!)“Skunks” (!!!)

“SkunkWorks”/ “ParallelUniverse”

“the 1%1%

solution”Source: Scott Bedbury (Others: 3M, Google, Shell, NAVFAC)

Playmate!*Playmate!*Playpen!Playpen!

Prototype!Prototype!

*Can be Client, supplier … as well as Insider*Can be Client, supplier … as well as Insider

Demos!Demos! Heroes! Heroes! Stories!Stories!

#2A#2A

““Somewhere in your Somewhere in your organization, groups of organization, groups of

people are people are alreadalreadyy doin doingg thinthinggs differentls differentlyy and and

better. To create lasting better. To create lasting change, find these areas of change, find these areas of positive deviance and fan positive deviance and fan the flamesthe flames.”.” —Richard Pascale & Jerry —Richard Pascale & Jerry

Sternin, Sternin, “Your Company’s Secret Change Agents,” “Your Company’s Secret Change Agents,” HBRHBR

#3#3

Little =Little =

BIGBIG***Thank you, Mr. Prime Minister*Thank you, Mr. Prime Minister

Big carts =Big carts =

1.5X1.5XSource: WalmartSource: Walmart

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

$B$BSource: PepsiCoSource: PepsiCo

Socks = Socks = 10,00010,000

see see greengreen = recover = recover

20% 20% fasterfaster

#4#4

XFX = XFX = #1*#1*

*Cross-Functional Excellence*Cross-Functional Excellence

XFXXFX = #1= #1

Never Never waste a waste a lunch!lunch!

????????

% XF % XF lunches*lunches*

*Measure! Monthly! Part of evaluation! [The PA’s *Measure! Monthly! Part of evaluation! [The PA’s Club.]Club.]

““XFXXFX Social Social Accelerators.” Accelerators.”

1. EVERYONE’s [more or less] JOB #1: Make friends in other 1. EVERYONE’s [more or less] JOB #1: Make friends in other functions! functions! (Purposefully. Consistently. Measurably.)(Purposefully. Consistently. Measurably.)2. “Do lunch” with people in other functions!! Frequently!! 2. “Do lunch” with people in other functions!! Frequently!! (Minimum 10% to 25% for everyone? (Minimum 10% to 25% for everyone? Measured.)Measured.)3. Ask peers in other functions for references so you can become 3. Ask peers in other functions for references so you can become conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-conversant in their world. (It’s one helluva sign of ... GIVE-A-DAMN-ism.)ism.)4. Invite counterparts in other functions to your team meetings. 4. Invite counterparts in other functions to your team meetings. Religiously. Ask them to present “cool stuff” from “their world” to Religiously. Ask them to present “cool stuff” from “their world” to your group. (B-I-G deal; useful and respectful.)your group. (B-I-G deal; useful and respectful.)5.5. PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ACKNOWLEDGE—PRIVATELY AND PUBLICALLY. (Bosses: ONCE A DAYONCE A DAY … make a short call or visit or send an email of “Thanks” for some … make a short call or visit or send an email of “Thanks” for some sort of XFX gesture by your folks and some other function’s folks.)sort of XFX gesture by your folks and some other function’s folks.)6. Present counterparts in other functions awards for service to 6. Present counterparts in other functions awards for service to your group. Tiny awards at least weekly; and an your group. Tiny awards at least weekly; and an “Annual All-Star “Annual All-Star Supporters [from other groups] Banquet” modeled after superstar Supporters [from other groups] Banquet” modeled after superstar salesperson banquets.salesperson banquets.7. Discuss—A SEPARATE AGENDA ITEM—good and problematic acts 7. Discuss—A SEPARATE AGENDA ITEM—good and problematic acts of cross-functional co-operation at every Team Meeting.of cross-functional co-operation at every Team Meeting.

““XFX XFX SocialSocial Accelerators.” Accelerators.”

8. When someone in another function asks for assistance, respond 8. When someone in another function asks for assistance, respond with … with … more … alacrity than you would if it were the person in the more … alacrity than you would if it were the person in the cubicle next to yours—or even more than you would for a key cubicle next to yours—or even more than you would for a key external customer. (Remember, XFX is the key to Customer external customer. (Remember, XFX is the key to Customer Retention which is in turn the key to “all good things.”)Retention which is in turn the key to “all good things.”)9.9. Do not bad mouth ... “the damned accountants,” “the bloody HR Do not bad mouth ... “the damned accountants,” “the bloody HR guy.” Ever.guy.” Ever. (Bosses: Severe penalties for this—including (Bosses: Severe penalties for this—including public public tongue-lashings.)tongue-lashings.)10. Get physical!! 10. Get physical!! “Co-location” may well be the most powerful “Co-location” may well be the most powerful “culture change lever.” “culture change lever.” Physical X-functional proximity is almost a Physical X-functional proximity is almost a … … guarantee … of remarkably improved co-operation—to aid this guarantee … of remarkably improved co-operation—to aid this one needs flexible workspaces that can be mobilized for a team in a one needs flexible workspaces that can be mobilized for a team in a flash.flash.11. Formal evaluations. 11. Formal evaluations. Everyone, starting with the receptionist, Everyone, starting with the receptionist, should have a significant XF rating component in their evaluation.should have a significant XF rating component in their evaluation. (The “XFX Performance” should be among the Top 3 items in all (The “XFX Performance” should be among the Top 3 items in all managers’ evaluations.)managers’ evaluations.)12. Demand XF experience for, especially, senior jobs. For example, 12. Demand XF experience for, especially, senior jobs. For example, the U.S. military requires all would-be generals and admirals to the U.S. military requires all would-be generals and admirals to have served a full tour in a job whose only goals were cross-have served a full tour in a job whose only goals were cross-functional achievements.functional achievements.13. XFX is … PERSONAL … as well as about organizational 13. XFX is … PERSONAL … as well as about organizational effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to personal success—in terms of organizational career, personal success—in terms of organizational career, freelancer/Brand You, or as entrepreneur. freelancer/Brand You, or as entrepreneur.

Lunch Lunch > SAP/> SAP/OracleOracle

THE WHOLE POINT HERE IS THAT “XFX” IS THE WHOLE POINT HERE IS THAT “XFX” IS ALMOST CERTAINALY THE #1 OPPORTUNITY ALMOST CERTAINALY THE #1 OPPORTUNITY FOR STRATEGIC DIFFERENTIATION. WHILE FOR STRATEGIC DIFFERENTIATION. WHILE

MANY WOULD LIKELY AGREE, IN OUR MANY WOULD LIKELY AGREE, IN OUR MOMENT-TO-MOMENT AFFAIRS, XFX MOMENT-TO-MOMENT AFFAIRS, XFX PER SE PER SE

IS NOT SO OFTEN VISIBLY & PERPETUALLY AT IS NOT SO OFTEN VISIBLY & PERPETUALLY AT THE TOP OF EVERY AGENDA. I ARGUE HERE THE TOP OF EVERY AGENDA. I ARGUE HERE

FOR NO LESS THAN …FOR NO LESS THAN …

VISIBLE.VISIBLE.CONSTANT.CONSTANT.OBSESSION.OBSESSION.

#5#5

1980:1980: “Strategic “Strategic Thrust Thrust

Overlay”Overlay”

GEGE

InflationInflationR&D/BusinessR&D/Business Development DevelopmentRisk managementRisk managementWorkoutWorkoutVA/ServiceVA/ServiceSix SigmaSix Sigma

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

Excellence for Excellence for Drug DiscoveryDrug Discovery

GG[B][B]TD: TacticsTD: Tactics

*Very small [but powerful] Central*Very small [but powerful] Central “Staff”* “Staff”* (*Line-like)(*Line-like)

*Senior “Homegrown” Boss [& Staff]*Senior “Homegrown” Boss [& Staff]*Enormous Incentives *Enormous Incentives ($/Eval)($/Eval)

*Line Accountability *Line Accountability ((Not “Matrix”Not “Matrix” ) )

*Demo-led *Demo-led (Emergent Methodology)(Emergent Methodology)

*“Tour of [External] Excellence”*“Tour of [External] Excellence”*“Blitz” Training*“Blitz” Training*Central Unit/Finite Life*Central Unit/Finite Life*Speed!* *Speed!* (*Change takes as long as you think it will.)(*Change takes as long as you think it will.)

*Goal: “Culture Change”!*Goal: “Culture Change”!

#6#6

The True Logic* of Decentralization:

6 divisions = 6 “tries”6 divisions = 6 “tries”

6 divisions = 6 6 divisions = 6 DIFFERENTDIFFERENT leaders = 6 leaders = 6 INDEPENDENTINDEPENDENT

“tries” = Max probability of “tries” = Max probability of “win”“win”

6 divisions = 6 6 divisions = 6 veryvery DIFFERENT DIFFERENT leaders = 6 leaders = 6 veryvery INDEPENDENT INDEPENDENT

“tries” = Max probability of “tries” = Max probability of ““far outfar out”/””/”3-sigma3-sigma”” “win” “win”

*“Driver”: Law of Large #s

“‘“‘Decentralization’ Decentralization’ is is notnot a piece of a piece of

paper. It’s paper. It’s notnot me. me. It’s either in your It’s either in your heartheart, or not.”, or not.”

——Brian Joffe/BIDvestBrian Joffe/BIDvest

Enemy Enemy #1#1

I.C.D.I.C.D.Note 1:Note 1: Inherent/Inevitable/Inherent/Inevitable/Immutable Centralist DriftImmutable Centralist Drift

Note 2: Jim Burke’s 1-word vocabulary: “No.”Note 2: Jim Burke’s 1-word vocabulary: “No.”

#7#7

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

#2 China#2 China

#1 #1 GermanyGermany

Reason:Reason:

Mittelstand!Mittelstand!**

**“agile creatures“agile creatures darting betweendarting between the legs of thethe legs of the multinationalmultinational monsters"monsters" Source:Source: Bloomberg BusinessWeek Bloomberg BusinessWeek on the German …on the German … MITTELSTANDMITTELSTAND

““Be the best. Be the best. It’s the only It’s the only

market that’s market that’s not crowded.”not crowded.”

From: From: Retail Superstars: Inside the 25 BestRetail Superstars: Inside the 25 Best Independent Stores in America,Independent Stores in America, George Whalin George Whalin

#8#8

We We areare the the companycompany we keepwe keep

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’ ” ”

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

““[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 least halfhalf the 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

Axiom: Never use a vendor who is not in the

top quartiletop quartile (decile?) in their industry on R&D

spending!*

*Inspired by Hummingbird

CUSTOMERS:CUSTOMERS: ““Future-defining Future-defining customers may account customers may account

for only for only 2%2% to to 3%3% of of your total, your total, but they but they represent a crucial represent a crucial

window on the future.”window on the future.”Adrian Slywotzky, Mercer ConsultantsAdrian Slywotzky, Mercer Consultants

““Don’t Don’t benchmark, benchmark,

futuremark!”futuremark!” Impetus: “The future is already here; it’s just

not evenly distributed” —William Gibson

“To grow, companies need to break out of a

vicious cycle of competitive

benchmarking and imitation.” —W. Chan Kim & Renée

Mauborgne, “Think for Yourself —Stop Copying a Rival,” Financial Times

“How do dominant companies

lose their position? Two-Two-thirds of the time, thirds of the time,

thethey py pick the wronick the wrongg competitor to worrcompetitor to worryy

aboutabout.”.” —Don Listwin, CEO,

Openwave Systems/WSJ

#8A#8A

““Who’s the most Who’s the most interesting person interesting person you’ve met in the you’ve met in the last 90 days? How last 90 days? How do I get in touch do I get in touch

with them?”with them?” —Fred Smith—Fred Smith

Vanity Fair:Vanity Fair: “What is your most “What is your most marked characteristic?”marked characteristic?”

Mike Bloomberg:Mike Bloomberg:

““Curiosity.”Curiosity.”

““Do one Do one thing every thing every

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

—Eleanor Roosevelt

““Freak Freak Fridays”Fridays” —once a —once a

month invite somebody interesting, in any field, to have month invite somebody interesting, in any field, to have lunch with your ganglunch with your gang

#8B#8B

“The The Bottleneck Bottleneck

……

“The The Bottleneck Bottleneck

Is at the Top Is at the Top of the of the

Bottle”Bottle”“Where are you likely to find people with the least diversity of

experience, the largest investment in the past, and the greatest reverence for industry dogma:

AtAt thethe totop!”p!” — Gary Hamel/Harvard Business Review

#8C#8C

““d”iversityd”iversity

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

brightest. If I formed two groups, one brightest. If I formed two groups, 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

#9#9

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

Companies offering Companies offering work to online work to online

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

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

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

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

Collaboration Changes Everything, Don Tapscott & Anthony Williams

““Cisco, [CEO John] Chambers Cisco, [CEO John] Chambers argues, is the best possible model argues, is the best possible model

for how a global business can for how a global business can

operate: operate: as a as a distributed idea distributed idea enenggine where leadershiine where leadershipp

emerges organicallemerges organically, y, unfettered by a central unfettered by a central

command.”command.” —”Revolution in San Jose,” —”Revolution in San Jose,” Fast Fast

CompanyCompany, Dec-Jan 08-09, Dec-Jan 08-09 (Chambers: “We now have a (Chambers: “We now have a whole pool of talent who can lead these whole pool of talent who can lead these

working groups—like mini CEOs and COOs.”) working groups—like mini CEOs and COOs.”) (Top blog: engineering director 5 levels down)(Top blog: engineering director 5 levels down)

#10#10

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

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

1818 secondsseconds

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

[cont.][cont.]

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 that from any other single activity.)that from any other single activity.)

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

ENTERPRISE CORE VALUE:ENTERPRISE CORE VALUE: “We are “We are Effective Listeners—we treat Effective Listeners—we treat

Listening EXCELLENCE as Listening EXCELLENCE as the Centerpiece of our the Centerpiece of our

Commitment to Respect and Commitment to Respect and Engagement and Partnering Engagement and Partnering

and Growth.”and Growth.”

*Listening is of the*Listening is of the

utmost … utmost … strategic importance! importance!

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

core value ! !

*Listening is … *Listening is … trainable !!

*Listening is a … *Listening is a … profession ! !

#11#11

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

organization are …organization are …

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

What do managers do for a living?What do managers do for a living?

Help!Help!Right?Right?

How many of us could call ourselves How many of us could call ourselves “professional helpers,”“professional helpers,” meaning that we meaning that we have studied—like a professional mastering her craft—helping?have studied—like a professional mastering her craft—helping?(Not many, I’d judge.)(Not many, I’d judge.)

Ed Schein:Ed Schein: HelHelppiningg: How to Offer,: How to Offer,Give, and Receive HelGive, and Receive Helpp

Last chapter: 7 “principles.” E.g.:Last chapter: 7 “principles.” E.g.:

PRINCIPLE 2:PRINCIPLE 2: “Effective Help Occurs When the Helping Relationship Is “Effective Help Occurs When the Helping Relationship Is Perceived to Be Equitable.Perceived to Be Equitable.PRINCIPLE 4:PRINCIPLE 4: “Everything You Say or Do Is an Intervention that “Everything You Say or Do Is an Intervention that Determines the Future of the Relationship..Determines the Future of the Relationship..PRINCIPLE 5:PRINCIPLE 5: “Effective Helping Begins with Pure Inquiry. “Effective Helping Begins with Pure Inquiry.PRINCIPLE 6:PRINCIPLE 6: “It Is the Client Who Owns the Problem.”* “It Is the Client Who Owns the Problem.”*

(*Love the idea that the employee is a (*Love the idea that the employee is a “Client”!“Client”! Words matter!! Read a quote from NFL Words matter!! Read a quote from NFL player-turned lawyer-turned NFL coach, calling his players “my clients.”)player-turned lawyer-turned NFL coach, calling his players “my clients.”)

Employee as Client! Employee as Client! ““Helping” is what we [leaders] “do” for a living!Helping” is what we [leaders] “do” for a living!STUDY/PRACTICE “helping” as you would neurosurgery!STUDY/PRACTICE “helping” as you would neurosurgery!(“Helping” (“Helping” isis your neurosurgery!) your neurosurgery!)

#11#11AA

… … no less than no less than CathedralsCathedrals

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

Imagination and Spirit and Imagination and Spirit and native Entrepreneurial flairnative Entrepreneurial flair

of diverse individualsof diverse individuals is is unleashed in passionate unleashed in passionate pursuit of … pursuit of … ExcellenceExcellence..

Oath of Office:Oath of Office: Managers/Servant Leaders Managers/Servant Leaders

Our goal is to serve our customers brilliantly and profitably Our goal is to serve our customers brilliantly and profitably overover the long haul.the long haul.Serving our customers brilliantly and profitably over the longServing our customers brilliantly and profitably over the long haul is a product of brilliantly serving, over the long haul, haul is a product of brilliantly serving, over the long haul, thethe people who serve the customer.people who serve the customer.

Hence, our job as leaders—the alpha and the omega andHence, 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 andand success and engagement and enthusiasm and commitment success and engagement and enthusiasm and commitment toto Excellence of those, one at a time, who directly or indirectlyExcellence of those, one at a time, who directly or indirectly serve the ultimate customer.serve the ultimate customer.

We—leaders of every stripe—are in the “Human Growth andWe—leaders of every stripe—are in the “Human Growth and Development and Success and Aspiration to ExcellenceDevelopment and Success and Aspiration to Excellence business.”business.”““We” We” [leaders][leaders] only grow when “they” only grow when “they” [each and every one of our colleagues][each and every one of our colleagues] areare growing.growing.““We” We” [leaders][leaders] only succeed when “they” only succeed when “they” [each and every one of our [each and every one of our colleagues]colleagues]

are succeeding.are succeeding.““We” We” [leaders][leaders] only energetically march toward Excellence when only energetically march toward Excellence when “ “they” they” [each and every one of our colleagues][each and every one of our colleagues] are energetically marching are energetically marching toward Excellence.toward Excellence.Period.Period.

““We are a We are a ‘Life ‘Life

Success’ Success’ Company.”Company.”

Dave Liniger, founder, RE/MAX

““Managing winds up being Managing winds up being the management of the the management of the allocation of resources allocation of resources

against tasks. Leadership against tasks. Leadership

focuses on people. focuses on people. MMyy definition of a leader definition of a leader

is someone who is someone who helhelpps s ppeoeopple le

succeedsucceed.”.” —Carol Bartz, Yahoo!—Carol Bartz, Yahoo!

#11#11BB

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

the … the … need to be need to be aappppreciatedreciated.”.”

—William James—William James

11/80*/80*

*Post-interview “Thank you” notes*Post-interview “Thank you” notes

““One kind word can One kind word can warm three winter warm three winter

months.”months.” – Japanese Proverb– Japanese Proverb

#11#11CC

““I regard I regard aappoloologgizinizing as the g as the most magical, healing, most magical, healing,

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

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

Here Won’t Get You There: How Successful People BecomeHere Won’t Get You There: How Successful People Become Even More Successful. Even More Successful.

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.

#12#12

Iron Innovation Equality Law:Iron Innovation Equality Law: The quality and The quality and

quantity and quantity and imaginativenessimaginativeness

of innovation shall be of innovation shall be the same in all the same in all

functionsfunctions —e.g., in HR and —e.g., in HR and purchasing as much as in marketing or purchasing as much as in marketing or

product development.*product development.*

#13#13

Conveyance: Kingfisher Air Conveyance: Kingfisher Air Location: Approach to New DelhiLocation: Approach to New Delhi

““May I clean May I clean your your

glasses, glasses, sir?”*sir?”*

*Kingfisher Air*Kingfisher Air

2-cent 2-cent candycandy

2,000,0002,000,000

7X.7X. 7:30A-8:00P. 7:30A-8:00P.

F12A.F12A.7:30AM = 7:30AM = 7:15AM.7:15AM.

8:00PM = 8:00PM = 8:15PM.8:15PM.

<TG<TGWWand …and …

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

““Experiences Experiences are as distinct are as distinct

from services as from services as services are from services are from goods.”goods.” —Joe Pine & Jim Gilmore, The

Experience Economy: Work Is Theatre & Every Business a Stage

Up,Up, Up,Up, Up, Up,

UpUp

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

The Value-added Ladder

Scintillating Scintillating EXPERIENCESEXPERIENCES

ServicesServicesGoodsGoods

Raw Materials Raw Materials

StarbucksStarbucks = = ShaShapperer ofof CultureCulture:: “At our core, “At our core,

we’re a coffee company, we’re a coffee company, but the opportunity we but the opportunity we

have to extend the brand is have to extend the brand is

beyond coffee; beyond coffee; it’s it’s entertainmententertainment.”.”

—Howard Schultz (“The Starbucks Aesthetic,” NYT, 10.22.06)

And in And in Milwaukee …Milwaukee …

Experience: “Rebel Lifestyle!”

“What we sell is the “What we sell is the ability for a 43-year-old ability for a 43-year-old accountant to dress in accountant to dress in

black leather, ride black leather, ride through small towns and through small towns and

have people be afraidhave people be afraid of him.” of him.”

HarleyHarley exec, quoted in Results-Based Leadership

CCXXOO**Chief eXperience Officer

#14#14

All EAll Eqqual ual ExceExcepptt … …

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

and features.and features. DesiDesiggn is the n is the onlonlyy thin thingg that that

differentiates one differentiates one pproduct from another in roduct from another in the marketthe marketpplacelace.”.” —Norio—Norio OhgaOhga

““Design is Design is

treated like treated like a religiona religion at at

BMW.”BMW.” —Fortune—Fortune

““We don’t have a good language to We don’t have a good language to talk about this kind of thing. In talk about this kind of thing. In

most people’s vocabularies, design most people’s vocabularies, design means veneer. … But to me, nothing means veneer. … But to me, nothing could be further from the meaning could be further from the meaning

of design.of design. Design is the Design is the fundamentalfundamental soulsoul

of a man-made of a man-made creation.”creation.” —Steve Jobs—Steve Jobs

““With its carefully conceived mix of colors and textures, With its carefully conceived mix of colors and textures,

aromas and music,aromas and music, StarbucksStarbucks is more is more indicative of our era than the iMac. It is to the Age of indicative of our era than the iMac. It is to the Age of

Aesthetics what McDonald’s was to the Age of Aesthetics what McDonald’s was to the Age of Convenience or Ford was to the Age of Mass ProductionConvenience or Ford was to the Age of Mass Production—the touchstone success story, the exemplar of … the —the touchstone success story, the exemplar of … the

aesthetic imperative. …aesthetic imperative. … ‘Every Starbucks ‘Every Starbucks store is carefully designed to store is carefully designed to

enhance the quality of enhance the quality of everything the customers see, everything the customers see, touch, hear, smell or taste,’touch, hear, smell or taste,’ writes writes

CEO Howard Schultz.”CEO Howard Schultz.” -—Virginia Postrel, The Substance of Style: How the Rise of Aesthetic

Value Is Remaking Commerce, Culture and Consciousness

Hypothesis:Hypothesis: DESIGNDESIGN is is the pthe principalrincipal

differencedifference between love between love

and hate! and hate!

““Design is Design is evereveryythinthing. g. Everything is Everything is desidesiggnn.”.”

““We are We are allall designers.” designers.”

Inspiration:Inspiration: The Power of Design: A Force for The Power of Design: A Force for Transforming Everything, Transforming Everything, Richard FarsonRichard Farson

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

designers better.’ designers better.’ Businesspeople need to Businesspeople need to

be designers.”be designers.” —Roger Martin/ —Roger Martin/

Dean/Rotman Management School/University of TorontoDean/Rotman Management School/University of Toronto

CCDDOO**Chief DesignDesign Officer

National Strategy!National Strategy!

New ZealandNew ZealandKoreaKorea

SingaporeSingaporeVermontVermont

#15#15

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

Economic Growth Is Economic Growth Is Driven by Driven by

WomenWomen.”.”

Source: Headline, Economist

W W > > 2X2X (C + (C + I)*I)*

**“Women now drive the global economy. Globally, they control “Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could about $20 trillion in consumer spending, and that figure could climb as high as $28 trillion in the next five years. Their $13 climb as high as $28 trillion in the next five years. Their $13 trillion in total yearly earnings could reach $18 trillion in the trillion in total yearly earnings could reach $18 trillion in the same period.same period. In aggregate, women represent a growth market bigger than China and In aggregate, women represent a growth market bigger than China and India combined—more than twice as big in fact. Given those numbers, it would be foolish to India combined—more than twice as big in fact. Given those numbers, it would be foolish to

ignore or underestimate the female consumer. And yet many companies do just that—even ones ignore or underestimate the female consumer. And yet many companies do just that—even ones that are confidant that they have a winning strategy when it comes to women. Consider Dell’s that are confidant that they have a winning strategy when it comes to women. Consider Dell’s

…”…”

•Source: Michael Silverstein and Kate Sayre, “The Female Economy,” Source: Michael Silverstein and Kate Sayre, “The Female Economy,” HBRHBR, 09.09, 09.09

““One thing is certain: women’s rise in power, which is linked to the increase in wealth One thing is certain: women’s rise in power, which is linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no per capita, is happening in all domains and at all levels of society. Women are no longer content to provide efficient labour or to be consumers with rising budgets and longer content to provide efficient labour or to be consumers with rising budgets and more autonomy to spend. They are increasingly becoming directors, managers and more autonomy to spend. They are increasingly becoming directors, managers and entrepreneurs. Some studies have shown a correlation between the presence of entrepreneurs. Some studies have shown a correlation between the presence of women in managerial positions and a company’s financial results.women in managerial positions and a company’s financial results. ““This is just the beginning. The phenomenon will only grow as girls prove to be more This is just the beginning. The phenomenon will only grow as girls prove to be more successful than boys in the school system and enrol in higher numbers in successful than boys in the school system and enrol in higher numbers in

universities. universities. For a number of For a number of observers, we have alreadobservers, we have alreadyy entered the aentered the agge of e of ‘WOMENOMICS,’ the ‘WOMENOMICS,’ the economeconomy y as thouas thougght out and ht out and ppracticed bracticed byy women women.. Those Chinese who Those Chinese who

desire that their only child be male may soon realise that a daughter could be a desire that their only child be male may soon realise that a daughter could be a better investment. Bosses know full well that a team of both men and women is more better investment. Bosses know full well that a team of both men and women is more creative and efficient than one comprised of only men.creative and efficient than one comprised of only men.

Source: “Women Are Drivers of Global Growth,” Aude Zieseniss de Thuin, founder and president of the Source: “Women Are Drivers of Global Growth,” Aude Zieseniss de Thuin, founder and president of the Women’s Forum for the Economy and Society (FT)Women’s Forum for the Economy and Society (FT)

9494%% of loans to of loans to

……

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

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

#16#16

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

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

ahead of them.”ahead of them.” —Bill

Novelli, 50+: Igniting a Revolution to Reinvent America

7/17/133

44-6544-65:: “New “New Customer Customer Majority”Majority” * *

*45% larger than 18-43; 60% larger by 2010*45% larger than 18-43; 60% larger by 2010

Source: Source: Ageless MarketingAgeless Marketing, David Wolfe & Robert Snyder, David Wolfe & Robert Snyder

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

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

needs are so needs are so poorlpoorlyy

understoodunderstood.”.” ——Peter Francese, founding publisher, Peter Francese, founding publisher, American DemographicsAmerican Demographics

55+ > 55-55+ > 55-**

*“[55-plus] are more active in online finance,*“[55-plus] are more active in online finance, shopping and entertainment than those under 55?”shopping and entertainment than those under 55?” — —Forrester Research.(Forrester Research.(USA TodayUSA Today, 8 January 2009), 8 January 2009)

#17#17

Up,Up, Up,Up, Up, Up,

UpUp

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

Tweet 10.05.10:Tweet 10.05.10: Word Word "commodity" "commodity" obscene! ! "Commodity" state of "Commodity" state of

mind! mind! ANYTHINGANYTHING ... can be ... can be differentiated numerous differentiated numerous

ways—logistics, quality of ways—logistics, quality of relationship, co-relationship, co-

development of new use ...development of new use ...

$50B+*$50B+**IBM Global Services/*IBM Global Services/

“Systems integrator of choice”“Systems integrator of choice”

““We want to be We want to be the air traffic the air traffic controllers of controllers of

electrons.”electrons.”—Bob Nardelli, —Bob Nardelli, GE Power SystemsGE Power Systems

(7 years, (7 years, 5% to to 55%))

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

AmericaAmerica”” —Headline/—Headline/BWBW

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

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

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

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

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

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

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

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

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

MasterCard MasterCard AdvisorsAdvisors

““The business of selling is not just about matching viable The business of selling is not just about matching viable

solutions to the customers that require them. solutions to the customers that require them. It’s It’s equally about managing the equally about managing the

change process the customer change process the customer will need to go through to will need to go through to

implement the solution and implement the solution and achieve the value promised achieve the value promised

by the solutionby the solution.. One of the key One of the key

differentiators of our position in the market is our attention to differentiators of our position in the market is our attention to managing change and making change stick in our customers’ managing change and making change stick in our customers’

organization.”organization.”* (*E.g.: CRM failure rate/Gartner: * (*E.g.: CRM failure rate/Gartner: 7070%)%) —Jeff Thull, —Jeff Thull, The Prime Solution: Close the Value Gap, The Prime Solution: Close the Value Gap,

Increase Margins, and Win the Complex SaleIncrease Margins, and Win the Complex Sale

The Value-added Ladder/ OPPORTUNITY-SEEKINGOPPORTUNITY-SEEKING

Customer Success/ Customer Success/ Gamechanging Gamechanging

SolutionsSolutionsScintillating ExperiencesScintillating Experiences

ServicesServicesGoodsGoods

Raw Materials Raw Materials

#18#18

Zappos 10 Corporate ValuesZappos 10 Corporate Values

Deliver Deliver “WOW!”“WOW!” through service. through service.

Embrace and drive change.Embrace and drive change.Create fun and a little weirdness.Create fun and a little weirdness.Be adventurous, creative, and open-minded.Be adventurous, creative, and open-minded.Pursue growth and learning.Pursue growth and learning.Build open and honest relationships withBuild open and honest relationships with communication.communication.Build a positive team and family spirit.Build a positive team and family spirit.Do more with less.Do more with less.Be passionate and determined.Be passionate and determined.Be humble.Be humble.

Source: Source: Delivering HappinessDelivering Happiness, Tony Hsieh, CEO, Zappos.com, Tony Hsieh, CEO, Zappos.com

14,00014,00020,00020,000

3030

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

3030/Craigslist/Craigslist

““Insanely Insanely Great”Great”

Steve JobsSteve Jobs

““Radically Radically thrilling”thrilling”

BMW

““We are crazy. We should do We are crazy. We should do something when people say it is something when people say it is

‘crazy.’‘crazy.’ If people say If people say something is ‘good’, it something is ‘good’, it means someone else means someone else is already doing it.”is already doing it.”

—Hajime Mitarai, Canon—Hajime Mitarai, Canon

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!!

#19#19

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

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

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

Organizing Genius / Warren Bennis and Patricia Ward Biederman

“Groups become great only when everyone in them, leaders and members alike, is free to is free to

do his or her absolute do his or her absolute bestbest.”.”

“The best thing a leader can do for a Great Group is to allow allow its members to discover its members to discover

their their ggreatnessreatness.”.”

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/1122.2006Source: Muhammad Yunus/1122.2006

#20#20

Innovation IndexInnovation Index:: How many of your Top 5Top 5 Strategic

Initiatives/Key Projects score 88 or higher or higher [out of 10] on a

“Weird”“Weird”/ / “Profound”“Profound”/ / “Wow”“Wow”//“Game-changer”“Game-changer”

Scale?

Part THREE Part THREE

The Small The Small Courtesies.Courtesies.

#1#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

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

““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

K = R = K = R = PP

Kindness = Repeat business = Profit.Kindness = Repeat business = Profit.

K = R = P/Kindness = Repeat business = Profit/K = R = P/Kindness = Repeat business = Profit/Kindness:Kindness:

Kind.Kind.Thoughtful.Thoughtful.Decent. Decent. Caring. Caring. Attentive.Attentive.Engaged.Engaged.Listens well/obsessively.Listens well/obsessively.Appreciative.Appreciative.Open.Open.Visible.Visible.Honest.Honest.Responsive.Responsive.On time all the time.On time all the time.Apologizes with dispatch for screwups.Apologizes with dispatch for screwups.““Over”-reacts to screwups of any magnitude.Over”-reacts to screwups of any magnitude.““Professional” in all dealings.Professional” in all dealings.Optimistic.Optimistic.Understand that kindness to staff breeds kindness to others/outsiders.Understand that kindness to staff breeds kindness to others/outsiders.Applies throughout the “supply chain.”Applies throughout the “supply chain.”Applies to 100% of customer’s staff.Applies to 100% of customer’s staff.Explicit part of values statement.Explicit part of values statement.Basis for evaluation of 100% of our staff.Basis for evaluation of 100% of our staff.

#2#2

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

the … the … need to be need to be aappppreciatedreciated.”.”

—William James—William James

11/80*/80*

*Post-interview “Thank you” notes*Post-interview “Thank you” notes

““One kind word can One kind word can warm three winter warm three winter

months.”months.” – Japanese Proverb– Japanese Proverb

#3#3

““I regard I regard aappoloologgizinizing as the g as the most magical, healing, most magical, healing,

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

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

Here Won’t Get You There: How Successful People BecomeHere Won’t Get You There: How Successful People Become Even More Successful. Even More Successful.

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.

#4#4

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

>>>>PerfectionPerfection

Acquire vs maintain*:Acquire vs maintain*:

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

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

PROBLEM. THEPROBLEM. THE

RESPONSERESPONSE TO THE TO THE PROBLEM INVARIABLY PROBLEM INVARIABLY ENDS UP BEING THE ENDS UP BEING THE

REAL PROBLEMREAL PROBLEM.**PERCEPTION IS ALL THERE IS!*PERCEPTION IS ALL THERE IS!

Potlatch.Potlatch.

““Perception Perception is allis all

there is”there is”

Part Four Part Four

#1#1

#1 Truthteller …#1 Truthteller …

You = You = Your Your

calendarcalendar***Calendars *Calendars nevernever lielie

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

ThreeThree..

Not two. Not two. Not four. Not four. Not five.Not five.Not ten.Not ten.Three.”Three.”

— Richard Haass, — Richard Haass, The Power to PersuadeThe Power to Persuade

#2#2

““Dennis, you need a … Dennis, you need a …

‘To-don’t ’‘To-don’t ’

List !”List !”

Don’t > Don’t > Do*Do*

* “Don’ting,” systematic, > WILLPOWER* “Don’ting,” systematic, > WILLPOWER

#3#3

““If there is any one If there is any one ‘secret’ to effectiveness, ‘secret’ to effectiveness,

it isit is concentrationconcentration. . Effective executives doEffective executives do

firstfirst thingsthings firstfirst and they and they

dodo oneone thingthing atat aa timetime.”.” —Peter Drucker—Peter Drucker

John Sawhill/Major StrategicJohn Sawhill/Major Strategic

Initiative: Initiative: “What areas should “What areas should the Conservancy focus on the Conservancy focus on

and more important— and more important—

what activities what activities should we stoshould we stopp

doindoing?”g?”Source: Bill Birchard, Source: Bill Birchard, Nature’s Keepers: The Remarkable Story of How The Nature Nature’s Keepers: The Remarkable Story of How The Nature

Conservancy Became the Largest Environmental Organization in the WorldConservancy Became the Largest Environmental Organization in the World

#4#4

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

name the … name 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 in painstaking detail heading in the next 12 months. Please explain in painstaking detail your development strategy in each case. Please tell me your biggest your development strategy in each case. Please tell me your biggest development disappointment—looking back, could you or would you development disappointment—looking back, could you or would you have done anything differently? Please tell me about your greatest have done anything differently? Please tell me about your greatest

development triumph—and disaster—in the last five years. Whatdevelopment triumph—and disaster—in the last five 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.”

#5#5

““Being aware of Being aware of yourself and how you yourself and how you

affect everyone around affect everyone around you is what you is what

distinguishes a superior distinguishes a superior leader.”leader.” —Edie Seashore —Edie Seashore

((Strategy + BusinessStrategy + Business #45) #45)

““How can a high-level How can a high-level leader like _____ be so out leader like _____ be so out

of touch with the truth of touch with the truth about himself? It’s more about himself? It’s more common than you would common than you would

imagine. In fact, the imagine. In fact, the higher up the ladder a higher up the ladder a leader climbs, the less leader climbs, the less

accurate his self-accurate his self-assessment is likely to assessment is likely to be. be. The The pproblem is an roblem is an acute lack of feedbackacute lack of feedback [especially on people [especially on people

issues].”issues].” —Daniel Goleman (et al.), —Daniel Goleman (et al.), The New LeadersThe New Leaders

#6#6

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

—Samuel Taylor Coleridge

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

enthusiasm.”enthusiasm.”

—Ben Zander

““You must You must bebe

the change you the change you wish to see in the wish to see in the

world.”world.”GandhiGandhi

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

—David D’Alessandro, Career Warfare

““In the election in 1994, his In the election in 1994, his

smilesmile was the campaign. That was the campaign. That

smiling iconic campaign poster—on billboards, smiling iconic campaign poster—on billboards, on highways, on street lamps, at tea shops on highways, on street lamps, at tea shops and fruit stalls. It told black voters that he and fruit stalls. It told black voters that he

would be their champion and white voters that would be their champion and white voters that he would be their protector. It was the smile of he would be their protector. It was the smile of

the proverb ‘tout comprendre, c’est tout the proverb ‘tout comprendre, c’est tout pardoner’—to understand is to forgive all. It pardoner’—to understand is to forgive all. It

was political Prozac for a nervous electorate.”was political Prozac for a nervous electorate.”

From “See the Good in Others,”From “See the Good in Others,” Mandela’s Way: Mandela’s Way: Fifteen Lessons on Life, Love, and Courage, Fifteen Lessons on Life, Love, and Courage, by Richard Stengelby Richard Stengel

Part Five Part Five

TheThe Memories Memories

ThatThat Matter.Matter.

The Memories That MatterThe Memories That Matter

The people you developed who went on to stellar accomplishmentsThe people you developed who went on to stellar accomplishments inside or outside the company. (A reputation as “a peerless inside or outside the company. (A reputation as “a peerless peoplepeople developer.”)developer.”)The (no more than) two or three people you developed who went on The (no more than) two or three people you developed who went on toto create create stellar institutions of their own.stellar institutions of their own.The long shots (people with “a certain something”) you bet on whoThe long shots (people with “a certain something”) you bet on who surprised themselves—surprised themselves—andand your peers. your peers.The people of all stripes who 2/5/10/20 years later say The people of all stripes who 2/5/10/20 years later say “You made a “You made a difference in my life,” “Your belief in me changed everything.”difference in my life,” “Your belief in me changed everything.”The sort of/character of people you hired in general. (The sort of/character of people you hired in general. (And And the bad the bad apples you chucked out despite some stellar traits.)apples you chucked out despite some stellar traits.)A handful of projects (a half dozen at most) you doggedly pursued A handful of projects (a half dozen at most) you doggedly pursued thatthat still make you smile and which fundamentally changed the waystill make you smile and which fundamentally changed the way things are done inside or outside the company/industry.things are done inside or outside the company/industry. The supercharged camaraderie of a handful of Great Teams aiming The supercharged camaraderie of a handful of Great Teams aiming toto “ “change the world.”change the world.”

The Memories That MatterThe Memories That Matter

Belly laughs at some of the stupid-insane things you and your Belly laughs at some of the stupid-insane things you and your matesmates tried.tried.Less than a closet full of “I should have …”Less than a closet full of “I should have …”A frighteningly consistent record of having invariably said, A frighteningly consistent record of having invariably said, “Go for “Go for it!”it!”Not intervening in the face of considerable loss—recognizing that toNot intervening in the face of considerable loss—recognizing that to develop top talent means tolerating failures and allowing thedevelop top talent means tolerating failures and allowing the person who screwed up to work their own way through and out ofperson who screwed up to work their own way through and out of their self-created mess.their self-created mess.Dealing with one or more crises with particular/memorable aplomb.Dealing with one or more crises with particular/memorable aplomb.Demanding … Demanding … CIVILITYCIVILITY … regardless of circumstances. … regardless of circumstances.Turning around one or two or so truly dreadful situations—andTurning around one or two or so truly dreadful situations—and watching almost everyone involved rise to the occasion (often towatching almost everyone involved rise to the occasion (often to their own surprise) and acquire a renewed sense of purpose in their own surprise) and acquire a renewed sense of purpose in thethe process.process.Leaving something behind of demonstrable-lasting worth. (On short Leaving something behind of demonstrable-lasting worth. (On short asas well as long assignments.)well as long assignments.)

The Memories That MatterThe Memories That Matter

Having almost always (99% of the time) put “Quality” and Having almost always (99% of the time) put “Quality” and “Excellence”“Excellence” ahead of “Quantity.” (At times an unpopular approach.)ahead of “Quantity.” (At times an unpopular approach.)A few “critical” instances where you stopped short and could haveA few “critical” instances where you stopped short and could have “ “done more”—but to have done so would have compromised your done more”—but to have done so would have compromised your andand your team’s character and integrity.your team’s character and integrity.A sense of time well and honorably spent.A sense of time well and honorably spent.The expression of “simple” human kindness and consideration—noThe expression of “simple” human kindness and consideration—no matter how harried you may be/may have been.matter how harried you may be/may have been.Understood that your demeanor/expression of character always setUnderstood that your demeanor/expression of character always set the tone—especially in difficult situations. the tone—especially in difficult situations. Never (rarely) let your external expression of enthusiasm/ Never (rarely) let your external expression of enthusiasm/ determination flag—the rougher the times, the more your determination flag—the rougher the times, the more your expressedexpressed energy and bedrock optimism and sense of humor showed.energy and bedrock optimism and sense of humor showed.The respect of your peers.The respect of your peers.A stoic unwillingness to badmouth others—even in private.A stoic unwillingness to badmouth others—even in private.

The Memories That MatterThe Memories That Matter

An invariant creed: When something goes amiss, An invariant creed: When something goes amiss, “The buck stops with“The buck stops with meme”; when something goes right, it was ”; when something goes right, it was their their doing, not yours.doing, not yours.A Mandela-like “naïve” belief that others will rise to the occasion if A Mandela-like “naïve” belief that others will rise to the occasion if givengiven the opportunity.the opportunity.A reputation for eschewing the “trappings of power.” (Strong self-A reputation for eschewing the “trappings of power.” (Strong self- management of tendencies toward arrogance or dismissiveness.)management of tendencies toward arrogance or dismissiveness.)Intense, even “driven” … but not to the point of being careless of Intense, even “driven” … but not to the point of being careless of othersothers in the process of forging ahead.in the process of forging ahead.Willing time and again to be surprised by ways of doing things that Willing time and again to be surprised by ways of doing things that areare inconsistent with your “certain hypotheses.”inconsistent with your “certain hypotheses.”Humility in the face of others, at every level, who know more than youHumility in the face of others, at every level, who know more than you about “the way things really are.”about “the way things really are.”Having bitten your tongue on a thousand occasions—and Having bitten your tongue on a thousand occasions—and listened, listened, reallyreally really really listened. (And listened. (And been constantly delighted when, as a result, been constantly delighted when, as a result, youyou invariablyinvariably learned something new and learned something new and invariablyinvariably increased your increased your connection with the speaker.)connection with the speaker.)

The Memories That MatterThe Memories That Matter

Unalloyed pleasure in being informed of the fallaciousness of yourUnalloyed pleasure in being informed of the fallaciousness of your beliefs by someone 15 years your junior and several rungs below beliefs by someone 15 years your junior and several rungs below youyou on the hierarchical ladder. on the hierarchical ladder. Selflessness. (A sterling reputation as “a guy always willing to help Selflessness. (A sterling reputation as “a guy always willing to help outout with alacrity despite personal cost.”)with alacrity despite personal cost.”)As thoughtful and respectful, or more so, toward thine “enemies” asAs thoughtful and respectful, or more so, toward thine “enemies” as toward friends and supporters.toward friends and supporters.Always and relentlessly put at the top of your list/any list being firstAlways and relentlessly put at the top of your list/any list being first and foremost and foremost “of service”“of service” to your internal and external to your internal and external constituents. (Employees/Peers/Customers/Vendors/Community.)constituents. (Employees/Peers/Customers/Vendors/Community.)Treated the term “servant leadership” as holy writ. (And Treated the term “servant leadership” as holy writ. (And “preached”“preached” “ “servant leadership” to others—new “non-managerial” hire or oldservant leadership” to others—new “non-managerial” hire or old pro, age 18 or 48.)pro, age 18 or 48.)

The Memories That MatterThe Memories That Matter

Created the sort of workplaces you’d like your kids to inhabit.Created the sort of workplaces you’d like your kids to inhabit. (Explicitly conscious of this “Would I want my kids to work here?”(Explicitly conscious of this “Would I want my kids to work here?” litmus test.)litmus test.)A “certifiable” “nut” about quality and safety and integrity. (More A “certifiable” “nut” about quality and safety and integrity. (More oror less regardless of any costs.)less regardless of any costs.)A notable few circumstances where you resigned rather thanA notable few circumstances where you resigned rather than compromise your bedrock beliefs.compromise your bedrock beliefs.Perfectionism just short of the paralyzing variety.Perfectionism just short of the paralyzing variety.

A self- and relentlessly enforced group standard of “EXCELLENCE-in-A self- and relentlessly enforced group standard of “EXCELLENCE-in- all-we-do”/“EXCELLENCE in our behavior toward one another.”all-we-do”/“EXCELLENCE in our behavior toward one another.”

EXCELLENCE. Always.If Not EXCELLENCE, What?If not EXCELLENCE Now,

When?