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

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

fonts:fonts:

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

“Chiller”“Chiller” andand “Verdana”“Verdana”

Excellence.Excellence.Always.Always.

PMMI/Turnberry Isle Resort & ClubPMMI/Turnberry Isle Resort & ClubTom Peters/04 April 2011Tom Peters/04 April 2011(Slides at tompeters.com)(Slides at tompeters.com)

Three [really] Three [really] First things First things Before First Before First

Things …Things …

#1#1

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

captains and majors, it would be a tragedy. captains and majors, it would be a tragedy.

If he lost his If he lost his serserggeants it would eants it would be a catastrobe a catastropphehe. . The The

Army and the Navy are fully aware that Army and the Navy are fully aware that success on the battlefield is dependent to an success on the battlefield is dependent to an extraordinary degree on its Sergeants and extraordinary degree on its Sergeants and Chief Petty Officers. Does industry have the Chief Petty Officers. Does industry have the

same awareness?same awareness?

#1#1 cause of cause of

employee employee Dis-satisfaction?Dis-satisfaction?

Employee retention & satisfaction:Employee retention & satisfaction: OverwhelminOverwhelminggllyy

based 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

Suggested addition to your statement of Core Suggested addition to your statement of Core

Values: Values: “We are obsessed with “We are obsessed with developing a cadre of 1st line developing a cadre of 1st line managers that is second to managers that is second to

none—we understand that this none—we understand that this cadre per se is arguably one of cadre per se is arguably one of

our top two or three most our top two or three most important ‘Strategic Assets.’”important ‘Strategic Assets.’”

#2#2

XFX = XFX = #1#1**

*Cross-Functional *Cross-Functional eXcellence eXcellence

Never Never waste a waste a lunch!lunch!

““Allied commands depend Allied commands depend on mutual confidence on mutual confidence and this confidence is and this confidence is

gained, above all gained, above all through the through the develodeveloppmentment

ofof friendshifriendshippss.”.”

——General D.D. Eisenhower, General D.D. Eisenhower, Armchair GeneralArmchair General* *

*“Perhaps his most outstanding ability [at West Point]*“Perhaps his most outstanding ability [at West Point]

was the ease with which was the ease with which he made friends and earned he made friends and earned the trust of fellow cadets who came from the trust of fellow cadets who came from

widelwidelyy varied back varied backggroundsrounds; it was a quality that would pay ; it was a quality that would pay great dividends during his future coalition command.”great dividends during his future coalition command.”

% XF % XF

lunches*lunches***MeasureMeasure!! Monthly! Part of Monthly! Part of

evaluation! [The PAs Club.]evaluation! [The PAs Club.]

MeasureMeasure

!!

““XFXXFX SocialSocial 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.

Present counterparts in other Present counterparts in other functions recognition/awards for functions recognition/awards for

service to your group:service to your group: Tiny Tiny awards at least weekly. An awards at least weekly. An

“Annual All-Star “Annual All-Star Supporters Supporters [from other groups][from other groups] Banquet” modeled after Banquet” modeled after

[and equivalent to[and equivalent to!!]] superstar superstar salesperson banquets.salesperson banquets.

““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.

Formal evaluations. Formal evaluations. EverEveryyoneone, , starting with the starting with the

receptionist, should have a receptionist, should have a sisiggnificantnificant XFX rating XFX rating

component in their component in their evaluation. (The “XFX evaluation. (The “XFX

Performance” should be Performance” should be among the Top 3 items in among the Top 3 items in

allall managers’ evaluations.) managers’ evaluations.)

#3#3

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

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

18 18 ……

18 … 18 … secondsseconds!!

[An [An obsessionobsession with] Listening is ... the ultimate mark 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 CollaborationCollaboration..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 forListening 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 growgrow..Listening is ... the core of Listening is ... 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 superior EXECUTIONEXECUTION..Listening is ... the key to Listening is ... the key to making the making the SaleSale..Listening is ... the key to Listening is ... the key to Keeping the Customer’s BusinessKeeping the Customer’s Business..Listening is ... Listening is ... ServiceService..Listening is ... the engine of Listening is ... the engine of Network developmentNetwork 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 ... Listening is ... Social Networking’s “secret weapon.”Social Networking’s “secret weapon.”Listening is ... Listening is ... LearningLearning..Listening is ... the Listening is ... the sine qua non of sine qua non of RenewalRenewal..Listening is ... the Listening is ... the sine qua non of sine qua non of CreativityCreativity..Listening is ... the Listening is ... the sine qua non of sine qua non of InnovationInnovation..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-addedSource #1 of “Value-added.”.”Listening is ... Listening is ... Differentiator #1Differentiator #1..Listening is ... Listening is ... ProfitableProfitable.*.* (*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

Suggested addition to your statement of Core Suggested addition to your statement of Core

Values: Values: “We are Effective “We are Effective Listeners—we treat Listening Listeners—we treat Listening

EXCELLENCEEXCELLENCE as the as the Centerpiece of our Centerpiece of our

Commitment to Respect and Commitment to Respect and Engagement and Community Engagement and Community

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 ! !

Mittelstand Mittelstand Magic Magic

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

seems obviousseems obvious … …

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

“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 ed to outto outpperform the market. Worse, erform the market. Worse, the lonthe longger comer comppanies had been in anies had been in

the database, the worse thethe database, 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

Where the +201,000 new private-sectorWhere the +201,000 new private-sector jobs came from* … jobs came from* …

51%51% Small firms Small firms

41%41% Medium- Medium-sizedsized

8%8% BigBig*ADP National Employment Report/*ADP National Employment Report/MarchMarch 20112011

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

#2 China#2 China

#1 #1 GermanyGermany

MittELstandMittELstand* * ****

**“agile creatures darting between the legs of“agile creatures darting between the legs of the multinational monsters"the multinational monsters" ((Bloomberg BusinessWeek, Bloomberg BusinessWeek, 10.10)10.10)

**E.g. Goldmann Produktion**E.g. Goldmann Produktion

*Basement Systems Inc.*Basement Systems Inc.

(Seymour CT) (Seymour CT)

**Dry Basement ScienceDry Basement Science (115,000 copies!) (115,000 copies!)

*1990: $0; 2003: $13M; *1990: $0; 2003: $13M; 2008: 2008:

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

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

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

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

Jim’s Computer ServicesJim’s Computer Services

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

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

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

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

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

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

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

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

““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

Retail Superstars: Retail Superstars: Inside the 25 Best Inside the 25 Best

Independent Independent Stores in Stores in

AmericaAmerica —by George Whalin—by George Whalin

Jungle Jim’s International Market, Fairfield, Ohio:Jungle Jim’s International Market, Fairfield, Ohio: “An “An

adventure in adventure in ‘‘shoshoppppertainmentertainment,’,’ as as

Jungle Jim’s call it, begins in the parking lot Jungle Jim’s call it, begins in the parking lot and goes and goes on to on to 1,600 cheeses1,600 cheeses and, yes, and, yes, 1,400 varieties of hot 1,400 varieties of hot saucesauce —not to mention —not to mention 12,000 wines priced from $8 to 12,000 wines priced from $8 to $8,000$8,000 a bottle; all this is brought to you by a bottle; all this is brought to you by 4,000 4,000 vendors.vendors. Customers come from every corner of the Customers come from every corner of the globe.” globe.”

Bronner’s Christmas Wonderland, Frankenmuth, Bronner’s Christmas Wonderland, Frankenmuth, Michigan, pop 5,000:Michigan, pop 5,000: 98,000-square-foot98,000-square-foot “shop” “shop” features the likes of features the likes of 6,000 Christmas ornaments, 6,000 Christmas ornaments, 50,000 trims50,000 trims, and anything else you can name if it , and anything else you can name if it pertains to Christmas.pertains to Christmas.

Source: George Whalin, Source: George Whalin, Retail SuperstarsRetail Superstars

Billboard …Billboard …

ONLY 262 MILES TO ONLY 262 MILES TO BUC-EE’SBUC-EE’S

YOU CAN HOLD IT.*YOU CAN HOLD IT.*

*“If I weren’t already married, I’d have my wedding*“If I weren’t already married, I’d have my wedding there.” there.” —Dallas Morning News Metro—Dallas Morning News Metro blogger blogger

YOU YOU CAN CAN

HOLD HOLD IT.IT.

Beyond Beyond SatisfactionSatisfaction

““HPHP to acquire to acquire EDSEDS* for * for

$13.9 billion” billion”

Source: Hewlett-Packard press release/05.13.2008Source: Hewlett-Packard press release/05.13.2008

*EDS was the first large computer services.*EDS was the first large computer services.

Huge:Huge: Customer Customer

““SatisfactionSatisfaction with with product”product” versus versus

CustomerCustomer

““SuccessSuccess””

IBMIBM

““Lou, Your mission Lou, Your mission is to break the is to break the

company up and company up and release hidden release hidden

value!”value!”

““Lou, with all the Lou, with all the money I’ve spentmoney I’ve spent

with you guys, why in with you guys, why in the hell hasn’t my the hell hasn’t my

business been business been transformed?”transformed?”

$55B*$55B**IBM Global Services/*IBM Global Services/

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

IBIBMMtoto

IIBBMM

““Never mind computers Never mind computers and tech services. and tech services.

IBM’s radical new focus IBM’s radical new focus is on revamping is on revamping

customers’ operationscustomers’ operations—and running them.”—and running them.”

—Headline/ BW—Headline/ BW

““You are headed You are headed for commodity for commodity

hell if you don’t hell if you don’t have services.”have services.”—Lou Gerstner, on IBM’s coming revolution (1997)—Lou Gerstner, on IBM’s coming revolution (1997)

From “product satisfaction” toFrom “product satisfaction” to “profitable solutions”/“business success”: “profitable solutions”/“business success”:

Larry Larry solvessolves problems. problems.Jim Jim solvessolves problems. Lou problems. Lou

solvessolves problems. problems.

““The leading Indian The leading Indian outsourcers reckon that the outsourcers reckon that the

key to their long-term key to their long-term prosperity is bagging ever prosperity is bagging ever

larger deals larger deals …… and moving ever higher

up the value chain.” ——

The EconomistThe Economist//

UPSUPS

What Can What Can Brown DoBrown Do for You? for You?

Source: ubiquitous Ad campaignSource: ubiquitous Ad campaign

““It’s all about It’s all about solutionssolutions. . We talk with customers We talk with customers about how to run better, about how to run better, stronger, cheaper supply stronger, cheaper supply

chains. We have 1,000 chains. We have 1,000 engineers who work with engineers who work with

customers …”customers …” —Bob Stoffel, UPS senior exec—Bob Stoffel, UPS senior exec

““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

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

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

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

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

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

*from GE.com*from GE.com

MasterCard MasterCard AdvisorsAdvisors

I. LAN Installation Co. (3%)

II. Geek Squad. (30%.)

III. Acquired by BestBuy.

IV. Flagship of BestBuyFlagship of BestBuy Wholesale “Solutions” Wholesale “Solutions” Strategy Makeover. Strategy Makeover.

Huge:Huge: Customer Customer

““SatisfactionSatisfaction with with product”product” versus versus

CustomerCustomer

““SuccessSuccess””

““Look at what we did with Look at what we did with that new lathe …”*that new lathe …”*

“This is how the bed will “This is how the bed will look in your bedroom. …”**look in your bedroom. …”**

*“*“PRODUCTPRODUCT sell” sell”**“**“SOLUTIONSOLUTION sell” sell”

Little Things Little Things MatterMatter

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

““May I clean May I clean your glasses, your glasses,

sir?”sir?”

Carl’sCarl’s Street- Street-

Sweeper Sweeper

<TG<TGWWandand … …

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

TGRTGRss..Manage ’em.Manage ’em.

Measure Measure ’em. ’em.

Little =Little =

BIBIGG

Socks = Socks = 10,00010,000

Big carts =Big carts =

1.5X1.5XSource: WalmartSource: Walmart

Design Is a Design Is a participative participative

sport sport

All EAll Eqqual ual ExceExcepptt … …

“At Sony we assume that all “At Sony we assume that all products of our competitors products of our competitors

have basically the same have basically the same technology, price, performance 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 roduct from another in the marketin the marketpplacelace.”.” ——

NorioNorio OhgaOhga

““Design is Design is

treated like treated like a religiona religion at at

BMW.”BMW.” —Fortune—Fortune

““PackagesPackages … … are are

about containing and labeling and about containing and labeling and informing and celebrating. Theyinforming and celebrating. They

are about power and flattery and are about power and flattery and trying to win people’s trust. They trying to win people’s trust. They

are about beauty and are about beauty and craftsmanship and comfort. They craftsmanship and comfort. They

are about color, protection, are about color, protection,

survival.”survival.” –Thomas Hine, –Thomas Hine, The Total PackageThe Total Package

Packaging, Power of …Packaging, Power of …

18701870:: animal feed. animal feed.

18901890:: “A delicacy for the “A delicacy for the epicure, a nutritious epicure, a nutritious

dainty for the invalid, a dainty for the invalid, a delight to the children”delight to the children”

Source: Thomas Hine, Source: Thomas Hine, The Total Package: The Evolution and Secret The Total Package: The Evolution and Secret Meanings of Bottles, Boxes, Cans and TubesMeanings of Bottles, Boxes, Cans and Tubes (on Quaker Oats)(on Quaker Oats)

PackaPackagginingg Power Power:: From Quaker Oats to From Quaker Oats to

……

Listerine Listerine PocketPaksPocketPaks

““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

Harry Harry Quadracci/Quadracci/

QuadGraphics …QuadGraphics …

invents blow-in invents blow-in adsads

((Not the magazine the magazine industry)industry)

Just Do it Just Do it

11/45/45

““We have a We have a strategic plan. strategic plan. It’s called … It’s called …

doindoing tg thinhinggss.”.” —Herb Kelleher—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 are ready By the time our rivals are ready

with wires and screws, we are on version 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 BloombergBloomberg by Bloomberg

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

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

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

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

“Re-arrange the mind of the

enemy” —T.E. Lawrence

““ExperimenExperiment t

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

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

““relentless relentless trial and trial and error”error”**

*Cornerstone of effective approach to “rebalancing” company *Cornerstone of effective approach to “rebalancing” company portfolios in the face of changing and uncertain globalportfolios in the face of changing and uncertain global economic conditionseconomic conditions ((Wall Street Journal, Wall Street Journal, 11.08.10)11.08.10)

““Fail.Fail. Forward. Forward.

Fast.”Fast.”High Tech CEO, Pennsylvania

Sam’s Sam’s Secret Secret

#1!#1!

““RewardReward excellent failures.

PunishPunish mediocre successes.”

—Phil Daniels, Sydney exec

““You miss You miss

100100%%

of the shots of the shots you never you never

take.”take.” —Wayne—Wayne GretzkyGretzky

Excellence1982: The Bedrock “EiExcellence1982: The Bedrock “Eigght Basics”ht 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”

““Execution Execution isis strategy.”strategy.”

—Fred Malek—Fred Malek

We are whatWe are what we eat/ we eat/

Who we hang out Who we hang out withwith

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

be either a blessing be either a blessing or a curse.”or a curse.” —Billy Cox—Billy Cox

“The The Bottleneck Bottleneck

……

“The Bottleneck The Bottleneck … Is at … Is at

the Top of the the Top of the Bottle”Bottle”

“Where are you likely to find people “Where are you likely to find people with the with the least diversitleast diversityy of ex of expperienceerience, ,

the the larlarggest investment in the est investment in the ppastast,, and the g and the greatest reverence for reatest reverence for

industrindustryy do doggmama … …

AtAt thethe totop!”p!”

— Gary Hamel/— Gary Hamel/Harvard Business ReviewHarvard Business Review

The “We are what we eat”/ The “We are what we eat”/ “We are who we hang out with”“We are who we hang out with”

Axiom: Axiom: At its core, At its core, evereveryy (!!!) (!!!) relationship-partnership decision relationship-partnership decision (employee, vendor, customer, etc, (employee, vendor, customer, etc, etc) is a etc) is a stratestrateggicic decision about: decision about:

“Innovate,“Innovate, ‘ ‘YesYes’ ’ oror ‘No’ ” ”

CUSTOMERS:CUSTOMERS: “Future-“Future-defining customers may defining customers may account for only account for only 2%2% to to 3%3% of your total, of your total, but but

thetheyy re reppresent a resent a crucial window on the crucial window on the futurefuture.”.” —Adrian Slywotzky, Mercer Consultants—Adrian Slywotzky, Mercer Consultants

People powerPeople power

““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,” , “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at on the occasion of Herb Kelleher’s retirement after 37 years at

Southwest Airlines Southwest Airlines (SWA’s pilots union took out a full-page ad in USA (SWA’s pilots union took out a full-page ad in USA Today Today

thanking HK for all he had done) thanking HK for all he had done) ; across the way in Dallas, American ; across the way in Dallas, American Airlines’ pilots were Airlines’ pilots were picketingpicketing AA’s Annual Meeting)AA’s Annual Meeting)

““We are a We are a ‘‘LiLiffee

SuccessSuccess’ ’ Company.”Company.”

Dave Liniger, founder, RE/MAX

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

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.

TP: TP: “How to throw

$500,000 into

the sea in one easy

lesson!!”

< CAPEX< CAPEX> People!> People!

Heroism: Heroism: TrainingTraining > Patriotism> Patriotism

No company ever No company ever Expended too Expended too

much much thoughtthought//EffortEffort/ / $$$$$$$$ on training! on training!**

**ESPECIALLYESPECIALLY … small company … small company

7 Steps to Sustaining Success7 Steps to Sustaining Success

You take care of the people. You take care of the people. The people take care of the service. The people take care of the service. The service takes care of the customer.The service takes care of the customer.The customer takes care of the profit. The customer takes care of the profit. The profit takes care of the re-investment.The profit takes care of the re-investment.The re-investment takes care of the re-invention. The re-investment takes care of the re-invention. The re-invention takes care of the future.The re-invention takes care of the future.(And at every step the only measure is EXCELLENCE.)(And at every step the only measure is EXCELLENCE.)

7 Steps to Sustaining Success7 Steps to Sustaining Success

You take care of the people. You take care of the people. The people take care of the service. The people take care of the service. The service takes care of the customer.The service takes care of the customer.The customer takes care of the profit. The customer takes care of the profit. The profit takes care of the re-investment.The profit takes care of the re-investment.The re-investment takes care of the re-invention. The re-investment takes care of the re-invention. The re-invention takes care of the future.The re-invention takes care of the future.(And at every step the only measure is EXCELLENCE.)(And at every step the only measure is EXCELLENCE.)

7 Steps to Sustaining Success: And it starts with …7 Steps to Sustaining Success: And it starts with …

YouYou take take care of the care of the people. people.

The Pursuit of The Pursuit of monopoly powermonopoly power

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

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

Excellence.Excellence. Always. Always.

If notIf not Excellence,Excellence, what?what?

If notIf not ExcellenceExcellence now, when?now, when?