First Things First Things FirstFirst

Tom Peters/0913.10Tom Peters/0913.10

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

andand “Verdana”“Verdana”

I have discovered that sometimes the most I have discovered that sometimes the most important points I want to make are buried important points I want to make are buried somewhere in my presentation. Hence, of somewhere in my presentation. Hence, of

late I start presentations with “two things I late I start presentations with “two things I am determined to leave behind—which, if you am determined to leave behind—which, if you

attend obsessively, will cover my fees attend obsessively, will cover my fees X1000X1000.”.”

xfxxfx

X X =XFX*=XFX*

**eXcellenceeXcellence = Cross-functional eXcellence = Cross-functional eXcellence

The Strategic Importance of XFXThe Strategic Importance of XFX(Cross-functional eXcellence)(Cross-functional eXcellence)

I believe that in most any organization of, I believe that in most any organization of, say, more than a dozen people, the #1 issue say, more than a dozen people, the #1 issue

is “cross-functional communication-is “cross-functional communication-integration.” It is both “Problem #1” and integration.” It is both “Problem #1” and

“Opportunity #1.” From intelligent pattern “Opportunity #1.” From intelligent pattern recognition to order execution to innovation, recognition to order execution to innovation, our INTERNAL barriers, not our competitors’ our INTERNAL barriers, not our competitors’ cleverness, are the principal impediment to cleverness, are the principal impediment to effectiveness. I suspect we all agree with effectiveness. I suspect we all agree with that. But is it—that. But is it—AND IT RARELY ISAND IT RARELY IS—literally —literally

seen as seen as “SO1”“SO1” —Strategic —Strategic

Opportunity #1? (Please do me the honor of Opportunity #1? (Please do me the honor of thinking about this.) thinking about this.)

Never Never waste a waste a lunch!lunch!

Much more needs to be said, but the assumption that Much more needs to be said, but the assumption that XFX depends on great systems is fallacious. Great XFX depends on great systems is fallacious. Great

systems are important.systems are important.

But …But …

the #1 issue in achieving XFX is …the #1 issue in achieving XFX is …

SOCIAL!SOCIAL!

That is, XFX is dependent on the breadth and depth of That is, XFX is dependent on the breadth and depth of social relationships among members of various social relationships among members of various

functions. And such relationships in turn are 1functions. And such relationships in turn are 1stst and and foremost the provenance of …foremost the provenance of …

DOING LUNCH!DOING LUNCH!((I’m not kidding.)I’m not kidding.)

% XF % XF

lunches*lunches**Measure! Monthly! Part of everyone’s *Measure! Monthly! Part of everyone’s

evaluation! evaluation!

220 220

ABs/yearABs/year

The working year amounts to about 240 days. The working year amounts to about 240 days.

240 days = 240 lunch opportunities. 240 days = 240 lunch opportunities.

Or, in my lingo:Or, in my lingo:

240 At Bats.240 At Bats.

So …So …

Lunch Lunch > SAP/> SAP/OracleOracle

11stst-line -line managementmanagement

#1#1 cause of cause of

employee employee Dis-satisfaction?Dis-satisfaction?

Employee Retention & Satisfaction:Employee Retention & Satisfaction: OverwhelminOverwhelmingglly …y … based on the based on the first-first-

line manaline managger!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

If “people are everything”— If “people are everything”— AND THEY AND THEY SURELY ARESURELY ARE —then their effectiveness “is —then their effectiveness “is everything.” And without a shadow of doubt everything.” And without a shadow of doubt the #1 determinant of their effectiveness—the #1 determinant of their effectiveness—productivity, engagement, teamwork—is the productivity, engagement, teamwork—is the

quality of the 1quality of the 1stst-line manager.*-line manager.*

*I cite Marcus Buckingham’s excellent research in the prior slide. While his *I cite Marcus Buckingham’s excellent research in the prior slide. While his work is indeed seminal, there is in fact a ton of evidence that supports this work is indeed seminal, there is in fact a ton of evidence that supports this

point.point.

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.

I do not suggest for a second that organizations don’t I do not suggest for a second that organizations don’t take the 1take the 1stst-line manager’s job “seriously.” I do -line manager’s job “seriously.” I do

suggest that 9.7 out of 10 are less than …suggest that 9.7 out of 10 are less than …

OBSESSEDOBSESSED… with the selection and training and mentoring of … with the selection and training and mentoring of

these organizational lynchpins.these organizational lynchpins.

And fail to see the “portfolio of 1And fail to see the “portfolio of 1stst-line managers” as a -line managers” as a premier …premier …

STRATEGIC ASSET.STRATEGIC ASSET.