WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTTHINGSTHINGS

AND AND MAKES MAKES THETHEMOSTMOSTMISTAKESMISTAKES

THETHEFASTESTFASTEST

WINSWINS

WHOEVERWHOEVERTRIESTRIESTHETHEMOSTMOSTTHINGSTHINGS

AND AND MAKES = CULTURE MAKES = CULTURE (NOT “STRATEGY’) (NOT “STRATEGY’)

THETHEMOSTMOSTMISTAKESMISTAKES

THETHEFASTESTFASTEST

WINSWINS

““Since Since 19961996, manufacturing , manufacturing employment in China itself employment in China itself

has actuallyhas actually fallenfallen by an by an

estimatedestimated 2525 p percentercent. . That’s That’s

overover 30,000,00030,000,000 fewerfewer Chinese workers in that sector, Chinese workers in that sector, even while output soared by even while output soared by 70 percent.70 percent. It’s not that American workers It’s not that American workers

[AND Japanese workers][AND Japanese workers] are being replaced by Chinese are being replaced by Chinese workers. It’s that both American workers. It’s that both American andand Chinese workers are Chinese workers are

being made more efficient [replaced] by automation.”being made more efficient [replaced] by automation.”

——Erik Brynjolfsson and Andrew McAfee, Erik Brynjolfsson and Andrew McAfee, The Second Machine Age: The Second Machine Age: Work, Progress, and Prosperity in a time of Brilliant TechnologiesWork, Progress, and Prosperity in a time of Brilliant Technologies

Life BEFORE “Disruption”:Life BEFORE “Disruption”: My mom My mom (1909-2005)(1909-2005) lived through lived through the advent of the advent of mass market cars, commercial radio, routine long-mass market cars, commercial radio, routine long-

distance phone calls, portable phones, cell phones, satellites, satellite distance phone calls, portable phones, cell phones, satellites, satellite phone call transmission, movies with sound, color movies, TV,phone call transmission, movies with sound, color movies, TV, TV TV

dinners, dinners, microwave ovens, commercial use of aircraft, jets, extensive microwave ovens, commercial use of aircraft, jets, extensive electrification, the Great Depressionelectrification, the Great Depression, Ty Cobb, Babe Ruth, Walter , Ty Cobb, Babe Ruth, Walter

Johnson, Bob Feller, Barry Bonds, Derek Jeter, the West Coast Johnson, Bob Feller, Barry Bonds, Derek Jeter, the West Coast Offense, the Civil Rights Movement, an African-American Chairman of Offense, the Civil Rights Movement, an African-American Chairman of the Joint Chiefs of Staff/Secretary of State, Gay Pride, women win the the Joint Chiefs of Staff/Secretary of State, Gay Pride, women win the

right to vote, Gandhi, Churchill, right to vote, Gandhi, Churchill, WWI, WWII,WWI, WWII, the EEC, the EU, the the EEC, the EU, the Euro, the Korean War, the Vietnam War, the Iraq War, 9/11, the Cold Euro, the Korean War, the Vietnam War, the Iraq War, 9/11, the Cold

War, the disintegration of the USSR, the resurgence of ChinaWar, the disintegration of the USSR, the resurgence of China, the rise , the rise and eclipse and resurrection of Germany and Japan, Oklahoma & New and eclipse and resurrection of Germany and Japan, Oklahoma & New Mexico & Arizona & Hawaii & Alaska become states, William Howard Mexico & Arizona & Hawaii & Alaska become states, William Howard Taft* (*just missed Teddy Roosevelt), FDR, Ronald Reagan, Father Taft* (*just missed Teddy Roosevelt), FDR, Ronald Reagan, Father

Coughlin, Jim and Tammy Bakker, Coughlin, Jim and Tammy Bakker, mainframe computers, PCs, mainframe computers, PCs, hyperlinks, the iPod, the Internet, air conditioning,hyperlinks, the iPod, the Internet, air conditioning, weed whackers, weed whackers,

Mickey Mouse, Frank Sinatra, Elvis, the Beatles, Madonna, the Model Mickey Mouse, Frank Sinatra, Elvis, the Beatles, Madonna, the Model T, the Cadillac Escalade, Nancy Drew, the first four Harry Potter T, the Cadillac Escalade, Nancy Drew, the first four Harry Potter books, books, antibiotics, MRIs, polio vaccine, genetic mapping,antibiotics, MRIs, polio vaccine, genetic mapping, WWII WWII

rockets, space flight, man-to-the-moon, rockets, space flight, man-to-the-moon, more or less permanent space station.” more or less permanent space station.”

““We are in no danger We are in no danger of running out of new of running out of new combinations try.combinations try. Even Even if technology froze today, we have if technology froze today, we have

more possible ways of configuring the more possible ways of configuring the different applications, machines, tasks, different applications, machines, tasks,

and distribution channels to create and distribution channels to create new processes and products than we new processes and products than we could ever exhaust.”could ever exhaust.” ——Erik Brynjolfsson and Andrew Erik Brynjolfsson and Andrew

McAfeeMcAfee, Race Against the Machine: How the Digital Revolution Is Accelerating , Race Against the Machine: How the Digital Revolution Is Accelerating Innovation, Driving Productivity and Irreversibly Transforming Employment Innovation, Driving Productivity and Irreversibly Transforming Employment

and the Economy and the Economy

iPad/$4 billioniPad/$4 billion negative USA trade balance negative USA trade balance

with China (2011)with China (2011)

Actual Cost/Profit Components:Actual Cost/Profit Components:

Total labor 7%Total labor 7%

(Chinese labor: 2%)(Chinese labor: 2%)Materials 31%Materials 31%

Distribution: 15%Distribution: 15%Profit: 47%Profit: 47%

Landed (USA) iPad cost: Landed (USA) iPad cost: $275 = $275 = OfficialOfficial

USA negative trade balance with ChinaUSA negative trade balance with China

((ActualActual China cost/True China cost/True negative trade balance: $10)negative trade balance: $10)

Source: Personal Computing Industry Centre (Source: Personal Computing Industry Centre (EconomistEconomist))

Tom Peters’Tom Peters’

RE-IMAGINERE-IMAGINEEXCELLENCE.EXCELLENCE.

TALENT, VALUE-TALENT, VALUE-ADDED AND MOREADDED AND MORE

17 NOVEMBER 201417 NOVEMBER 2014

The Search for The Search for EXCELLENCE.EXCELLENCE.

““Why in the Why in the World did youWorld did you

go to go to SiberiaSiberia?”?”

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

concerted humanconcerted human potential in thepotential in the wholehearted pursuit of wholehearted pursuit of EXCELLENCE inEXCELLENCE in serviceservice of others of others.**

**Employees, Customers, Suppliers, Communities, Owners, Temporary partners**Employees, Customers, Suppliers, Communities, Owners, Temporary partners

““It may sound radical, unconventional, and It may sound radical, unconventional, and bordering on being a crazy business idea. bordering on being a crazy business idea.

However—as ridiculous as it sounds—joy is the However—as ridiculous as it sounds—joy is the core belief of our workplace. core belief of our workplace.

JoyJoy is the reason my company, is the reason my company,

Menlo Innovations, a customer software Menlo Innovations, a customer software design and development firm in Ann Arbor, design and development firm in Ann Arbor, Michigan, exists. It defines what we do and Michigan, exists. It defines what we do and

how we do it. It is the single shared belief of how we do it. It is the single shared belief of our entire team.”our entire team.”

——Richard Sheridan, Richard Sheridan, Joy, Inc.: Joy, Inc.: How We Built a Workplace People LoveHow We Built a Workplace People Love

EXCELLENCE is EXCELLENCE is

notnot a “long- a “long-

term” “aspiration.”term” “aspiration.”

EXCELLENCE is EXCELLENCE is notnot a “long- a “long-term” "aspiration.”term” "aspiration.”

EXCELLENCE is the ultimate EXCELLENCE is the ultimate short-term strategy. short-term strategy.

EXCELLENCE is … THEEXCELLENCE is … THE

NEXTNEXT 55 MINUTESMINUTES..**

(*Or (*Or NOTNOT.).)

EXCELLENCE is not an "aspiration." EXCELLENCE is not an "aspiration." EXCELLENCE is … THE NEXT FIVE MINUTES.EXCELLENCE is … THE NEXT FIVE MINUTES.

EXCELLENCE is your next conversation.EXCELLENCE is your next conversation.Or not.EXCELLENCE is your next meeting.EXCELLENCE is your next meeting.Or not.EXCELLENCE is shutting up and listening—really listening.EXCELLENCE is shutting up and listening—really listening.Or not.EXCELLENCE is your next customer contact.EXCELLENCE is your next customer contact.Or not.EXCELLENCE is saying “Thank you” for something “small.”EXCELLENCE is saying “Thank you” for something “small.”Or not.EXCELLENCE is the next time you shoulder responsibility and apologize.EXCELLENCE is the next time you shoulder responsibility and apologize.Or not.EXCELLENCE is waaay over-reacting to a screw-up.EXCELLENCE is waaay over-reacting to a screw-up.Or not.EXCELLENCE is the flowers you brought to work today.EXCELLENCE is the flowers you brought to work today.Or not.EXCELLENCE is lending a hand to an “outsider” who’s fallen behind EXCELLENCE is lending a hand to an “outsider” who’s fallen behind schedule.schedule.Or not.EXCELLENCE is bothering to learn the way folks in finance (or IS or HR) EXCELLENCE is bothering to learn the way folks in finance (or IS or HR) think.think.Or not.EXCELLENCE is waaay “over”-preparing for a 3-minute presentation.EXCELLENCE is waaay “over”-preparing for a 3-minute presentation.Or not.EXCELLENCE is turning “insignificant” tasks into models of … EXCELLENCE. EXCELLENCE is turning “insignificant” tasks into models of … EXCELLENCE. Or not.

INNOVATION’s INNOVATION’s BEDROCK: BEDROCK:

MATCHLESS/MATCHLESS/IMAGINATIVEIMAGINATIVE

TALENT.TALENT.

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

rewarding lives …rewarding lives …

1/4,096: excellencenow.com1/4,096: excellencenow.com

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

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

worth worth doindoing.”g.”

——Richard BransonRichard Branson

““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 (SWA’s pilots union took out a full-page ad in USA USA TodayToday

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)

"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

““In a world where customers wake up In a world where customers wake up every morning asking, ‘What’s new, every morning asking, ‘What’s new, what’s different, what’s amazing?’ what’s different, what’s amazing?’

success desuccess deppends on a ends on a comcomppananyy’s abilit’s abilityy to unleash to unleash initiative, imainitiative, imaggination and ination and ppassion of emassion of empploloyyees at all ees at all levelslevels—and this can only happen if all —and this can only happen if all those folks are connected heart and soul those folks are connected heart and soul

to their work [their ‘calling’], their to their work [their ‘calling’], their company and their mission.”company and their mission.” —John Mackey and —John Mackey and

Raj Sisoda,Raj Sisoda, Conscious Capitalism: Conscious Capitalism: Liberating the Heroic Spirit of BusinessLiberating the Heroic Spirit of Business

““When I hire When I hire someone, that's someone, that's

when when I I ggo to o to work for work for

themthem.”.” —John DiJulius,—John DiJulius, What's the Secret to What's the Secret to

Providing a World-class Customer ExperienceProviding a World-class Customer Experience

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.

CORPORATE MANDATE #1 2014:CORPORATE MANDATE #1 2014: Your Your principal moral obligation as a principal moral obligation as a

leader is to develop the skillset, leader is to develop the skillset, “soft” and “hard,” of every one “soft” and “hard,” of every one

of the people in your charge of the people in your charge (temporary as well as semi-(temporary as well as semi-permanent) to the maximum permanent) to the maximum

extent of your abilities. The good extent of your abilities. The good news: news: This is also theThis is also the

#1 mid- to lon#1 mid- to longg-term-term … … p profit maximization straterofit maximization strategy!gy!

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

actors and actresses canactors and actresses can become more than become more than thetheyy’ve ever been ’ve ever been

before,before, more than themore than they’y’ve ve dreamed of beindreamed of being.”g.”

——Robert Altman, Oscar acceptance speechRobert Altman, Oscar acceptance speech

In In Good BusinessGood Business, Mihaly Csikszentmihalyi argues , Mihaly Csikszentmihalyi argues persuasively that business has become the center of society. persuasively that business has become the center of society.

As such, an obligation to community is front & center. As such, an obligation to community is front & center. Business as societal bedrock, has theBusiness as societal bedrock, has the

RESPONSIBILITYRESPONSIBILITY to increase theto increase the

““SUMSUM OF HUMANOF HUMAN WELLWELL--BEINGBEING.”.” Business is NOT "part of the community."Business is NOT "part of the community."

In terms of how adults collectively spend their waking In terms of how adults collectively spend their waking

hours …hours … BUSINESSBUSINESS ISIS THETHE COMMUNITYCOMMUNITY.. And should act accordingly. The And should act accordingly. The

(REALLY) good news:(REALLY) good news: Community mindednessCommunity mindedness is a great way (THE best way?) to have is a great way (THE best way?) to have

spirited/committed/ customer-centric work force—and, spirited/committed/ customer-centric work force—and, ultimately, increase (maximize?) profitability!ultimately, increase (maximize?) profitability!

Training = Training = InvestmentInvestment

#1#1!!

Training = InvestmentTraining = Investment

#1#1: : In the Army, In the Army,

33--star star ggeneralsenerals worry about worry about training. In most training. In most

businesses, the top training businesses, the top training post is a “ho hum” mid-post is a “ho hum” mid-

level staff slot.level staff slot.

Is your Is your CTOCTO/Chief /Chief Training Officer your top Training Officer your top paid “C-level” job (other paid “C-level” job (other

than CEO/COO)?than CEO/COO)?

Are your top trainers Are your top trainers paid/cherished as much paid/cherished as much as your top marketers/ as your top marketers/

engineers?engineers?

Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?If not, why not?If not, why not?Are your top trainers paid as much as your top marketers and engineers?Are your top trainers paid as much as your top marketers and engineers?If not, why not?If not, why not?

Are your training Are your training courses so good courses so good they make you they make you “jump with joy”?“jump with joy”?If not, why not?If not, why not?Randomly stop an employee in the hall: Can she/he meticulously describe her/his development plan for the next Randomly stop an employee in the hall: Can she/he meticulously describe her/his development plan for the next 12 months?12 months?If not, why not?If not, why not?Why is your world of business any different than the (competitive) world of rugby, football, opera, theater, Why is your world of business any different than the (competitive) world of rugby, football, opera, theater, the military?the military?If “people/talent first” and hyper-intense continuous training are laughably obviously for them, why not you? If “people/talent first” and hyper-intense continuous training are laughably obviously for them, why not you?

Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?If not, why not?If not, why not?

Are your top trainers paid as much as your top marketers and engineers?Are your top trainers paid as much as your top marketers and engineers?If not, why not?If not, why not?

Are your training courses so good they make you giggle and tingle?Are your training courses so good they make you giggle and tingle?If not, why not?If not, why not?

Randomly stop an employee Randomly stop an employee in the hall: Can she/he in the hall: Can she/he meticulously describe meticulously describe her/his development plan her/his development plan for the next 12 months?for the next 12 months?If not, why not?If not, why not?

Why is your world of business any different than the (competitive) world of rugby, football, Why is your world of business any different than the (competitive) world of rugby, football, opera, theater, opera, theater, the military?the military?If “people/talent first” and hyper-intense continuous training are laughably obviously for If “people/talent first” and hyper-intense continuous training are laughably obviously for them, why not you? them, why not you?

Boss & RPD:Boss & RPD: Your (boss) job is Your (boss) job is safer if every one of your safer if every one of your

team members is team members is committed to committed to

RPDRPD/Radical /Radical Personal Personal

DevelopmentDevelopment. Actively . Actively support one support one

and all!and all!

Gambling ManGambling Man

Bet #1: Bet #1: >> 5 of 10 CEOs see >> 5 of 10 CEOs see training as expense rather training as expense rather than investment.than investment.Bet #2: Bet #2: >> 5 of 10 CEOs see >> 5 of 10 CEOs see training as defense rather training as defense rather than offense.than offense.Bet #3: Bet #3: >> 5 of 10 CEOs see >> 5 of 10 CEOs see training as “necessary evil” training as “necessary evil” rather than “strategic rather than “strategic opportunity.”opportunity.”

Bet #4:Bet #4: >> 8 of 10 >> 8 of 10 CEOs, in 45-min CEOs, in 45-min “tour d’horizon” “tour d’horizon” of their biz, would of their biz, would NOTNOT mention mention training.training.

Training #1: Bottom LineTraining #1: Bottom Line

NOBODYNOBODY gets off the gets off the

hook! hook! “Training & Development Maniac”“Training & Development Maniac” applies as much to the leader of the applies as much to the leader of the

44--PERSONPERSON BUSINESSBUSINESS as to the chief as to the chief

of the 44,444-person business.of the 44,444-person business.

#3: Provide a pride-#3: Provide a pride- worthy job.*worthy job.*#2: Help people be#2: Help people be successful at theirsuccessful at their current job.current job.#1: Help people grow/#1: Help people grow/ prepare for anprepare for an uncertain future.uncertain future.*****“Provide a secure job.”—*“Provide a secure job.”—NOT POSSIBLE IN 2014NOT POSSIBLE IN 2014..**Society—and profitability—demands this. (Or should!)**Society—and profitability—demands this. (Or should!)

HiringHiring

““In short, hiring is In short, hiring is the the most immost impportant ortant

asasppect of businessect of business

and yet remainsand yet remains woefully woefully misunderstoodmisunderstood..””

Source: Source: Wall Street JournalWall Street Journal, 10.29.08,, 10.29.08,

review of review of Who: The A Method for Hiring, Who: The A Method for Hiring, Geoff Smart and Randy StreetGeoff Smart and Randy Street

““Development can help great Development can help great

people be even people be even better—better—but if but if I had a dollar to spend, I’d I had a dollar to spend, I’d

spendspend 7070 cents cents getting the right person getting the right person

in the door.”in the door.” ——Paul Russell, Director, Leadership and Paul Russell, Director, Leadership and

Development, GoogleDevelopment, Google

2/Year = 2/Year = LegacyLegacy

Promotion DecisionsPromotion Decisions

“life and “life and death death

decisions”decisions”Source: Peter Drucker, Source: Peter Drucker, The Practice of ManagementThe Practice of Management

EvaluationEvaluation

EVALUATING EVALUATING

PEOPLE = PEOPLE = #1#1

DIFFERENTIATORDIFFERENTIATORSource: Jack Welch, now Jeff Immelt onSource: Jack Welch, now Jeff Immelt on

GE’s top strategic skill ( GE’s top strategic skill (!!!!!!!!))

11stst-Line Bosses -Line Bosses (Cadre of) = (Cadre of) =

Productivity Asset Productivity Asset

#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?

Employee retention Employee retention && satisfaction satisfaction && productivity: productivity: 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 the First, Break All the Rules: What the World’s Greatest Managers Do DifferentlyRules: What the World’s Greatest Managers Do Differently

Is there Is there ONEONE “secret” “secret” to productivity and to productivity and

employee satisfaction?employee satisfaction?

YESYES!!

The Quality of your The Quality of your FULLFULL CADRECADRE of … of …1st-line Leaders.1st-line Leaders.

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.’”

PEOPLE MATTERS: PEOPLE MATTERS: CRADLE TO GRAVE, CRADLE TO GRAVE,

THE EMPHASIS THE EMPHASIS SHIFTS TO SHIFTS TO CREATIVITYCREATIVITY

““Right now, labor Right now, labor markets and jobs are markets and jobs are changing faster than changing faster than

schools, and that means schools, and that means graduates are being left graduates are being left

behind.”behind.” —Tyler Cowen, author —Tyler Cowen, author Average Is OverAverage Is Over, in , in TimeTime (10.25.13) (10.25.13)

““All human beings are entrepreneurs.”All human beings are entrepreneurs.” ——

Muhammad YunusMuhammad Yunus

““Human creativity is the ultimate Human creativity is the ultimate economic resource.”economic resource.” —Richard Florida—Richard Florida

““Every child is born an Every child is born an artist. The trick is to artist. The trick is to remain an artist.”remain an artist.” —Picasso—Picasso

"Creativity can no longer be treated as "Creativity can no longer be treated as an elective.”an elective.” —John Maeda—John Maeda

““How many artists are there in the room? Would you please How many artists are there in the room? Would you please raise your hands. raise your hands. FIRST GRADEFIRST GRADE: En mass the children leapt from : En mass the children leapt from

their seats, arms waving. Every child was an artist. their seats, arms waving. Every child was an artist. SECOND SECOND GRADEGRADE: About half the kids raised their hands, shoulder high, no : About half the kids raised their hands, shoulder high, no higher. The hands were still. higher. The hands were still. THIRD GRADETHIRD GRADE: At best, 10 kids out : At best, 10 kids out of 30 would raise a hand, tentatively, self-consciously. By the of 30 would raise a hand, tentatively, self-consciously. By the time I reached time I reached SIXTH GRADESIXTH GRADE, no more than one or two kids , no more than one or two kids

raised their hands, and then ever so slightly, betraying a fear of raised their hands, and then ever so slightly, betraying a fear of being identified by the group as a ‘secret artist.’ The point is:being identified by the group as a ‘secret artist.’ The point is:

EVERY SCHOOL I VISITEDEVERY SCHOOL I VISITED WAS PARTICIPATING INWAS PARTICIPATING IN

THE SYSTEMATIC SUPPRESSIONTHE SYSTEMATIC SUPPRESSION OF CREATIVE GENIUS.”OF CREATIVE GENIUS.”

—Gordon MacKenzie, retired creative director, Hallmark, from —Gordon MacKenzie, retired creative director, Hallmark, from Orbiting the Giant HairballOrbiting the Giant Hairball

RADICALRADICAL curricular revision curricular revision imperative. imperative. RADICALRADICAL digital digital

strategy.strategy.REVOLUTIONARYREVOLUTIONARY new approach to new approach to teacher recruitment/development.teacher recruitment/development.RADICALRADICAL re-assessment of tertiary re-assessment of tertiary education education RADICALRADICAL re-assessment re-assessment

business ed. business ed. RADICALRADICAL role re- role re-assessment by corporations assessment by corporations (busineses-as-educators).(busineses-as-educators).

Context:Context:1,000,0001,000,000

China/Foxconn:China/Foxconn:

1,000,000

robots/next robots/next 3 years years

Source:Source: Race AGAINST the Machine, Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfeeErik Brynjolfsson and Andrew McAfee

““Automation has become so Automation has become so sophisticated that on a typical sophisticated that on a typical passenger flight, a human pilot passenger flight, a human pilot

holds the controls for a grand total holds the controls for a grand total

of …of …33 minutesminutes. .

[Pilots] have become, it’s not[Pilots] have become, it’s not much of an exaggeration to say, much of an exaggeration to say,

computer operators.”computer operators.” Source: Nicholas Carr, “The Great Forgetting,” Source: Nicholas Carr, “The Great Forgetting,” The AtlanticThe Atlantic, 11.13, 11.13

““Meet Your Meet Your Next Surgeon: Next Surgeon:

Dr. Robot”Dr. Robot”Source: Feature/Source: Feature/FortuneFortune/15 JAN 2013/on Intuitive Surgical’s/15 JAN 2013/on Intuitive Surgical’s

da Vincida Vinci /multiple bypass heart-surgery /multiple bypass heart-surgery

robotrobot

Robot Wars!Robot Wars!

“The combination of new “The combination of new market rules and new market rules and new

technology was turningtechnology was turning the stock market into, in the stock market into, in

effect,effect, aa warwar of of robotsrobots.”.” —Michael Lewis, “Goldman’s —Michael Lewis, “Goldman’s

Geek Tragedy,” Geek Tragedy,” Vanity FairVanity Fair, 09.13, 09.13

Let’s Welcome Our Newest Board Member: “Just like “Just like

other members of the other members of the board, board, the algorithm the algorithm ggets to ets to

vote on whether the firm vote on whether the firm makes an investment in a makes an investment in a ssppecific comecific comppananyy or not or not. . The program will be the The program will be the sixth member of DKV's sixth member of DKV's

board.” board.” —B usiness Insider, —B usiness Insider, 13 May 2014:13 May 2014:

““A Hong Kong VC fund has just appointed an algorithm to its board.” A Hong Kong VC fund has just appointed an algorithm to its board.”

IoT/The Internet of ThingsIoT/The Internet of Things IoE/The Internet of IoE/The Internet of EverythingEverything M2M/Machine-to-MachineM2M/Machine-to-Machine Ubiquitous computingUbiquitous computing Embedded computingEmbedded computing Pervasive computingPervasive computing Industrial InternetIndustrial Internet Etc.* Etc.* ** ** ******

*“*“More Than More Than 50 BILLION50 BILLION connected devices by 2020” —Ericsson connected devices by 2020” —Ericsson

**Estimated **Estimated 212 BILLION212 BILLION connected devices by 2020—IDC connected devices by 2020—IDC

***“By 2025 IoT could be applicable to ***“By 2025 IoT could be applicable to $82 TRILLION$82 TRILLION of output or of output or approximately one half the global economy”—GE (The WAGs to end all WAGs!)approximately one half the global economy”—GE (The WAGs to end all WAGs!)

““The root of our problem is notThe root of our problem is not that we’re in a Great Recessionthat we’re in a Great Recession

or a Great Stagnation, but ratheror a Great Stagnation, but rather that we are in the early that we are in the early

throes of a throes of a Great Restructuring. .

Our technologies are racing ahead,Our technologies are racing ahead, but our skills and organizationsbut our skills and organizations

are lagging behind.”are lagging behind.”

Source:Source: Race AGAINST the Machine, Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfeeErik Brynjolfsson and Andrew McAfee

““SOFTWARESOFTWARE ISIS EATINGEATING

THETHE WORLDWORLD.”.”

——Marc Andreessen/2014Marc Andreessen/2014

COUNTER-ATTACK:COUNTER-ATTACK:ADDING A ADDING A STRATEGIC STRATEGIC SERVICESSERVICES

COMPONENT TO COMPONENT TO OUR PRODUCTSOUR PRODUCTS

““Rolls-RoyceRolls-Royce now earns now earns

moremore from tasks such from tasks such as managing clients’ as managing clients’ overall procurement overall procurement

strategies and maintaining strategies and maintaining aerospace engines it sells aerospace engines it sells than it does from making than it does from making

them.”them.”——EconomistEconomist

““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—Lou Gerstner

IBIBMMtoto

IIBBMM

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

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

PlanetarPlanetary y RainmakerRainmaker--inin--ChiefChief!!

“[CEO Sam] Palmisano’s “[CEO Sam] Palmisano’s strategy is to expand tech’s strategy is to expand tech’s borders by pushing users—borders by pushing users—

and entire industries—and entire industries—towardtoward radicallradically y differentdifferent businessbusiness modelsmodels.. The payoff for IBM would be The payoff for IBM would be

access to an ocean of revenue—Palmisano access to an ocean of revenue—Palmisano

estimates it atestimates it at $$500500 billionbillion aa y yearear ——that technology companies have never been that technology companies have never been

able to touch.”able to touch.” ——FortuneFortune

UUPPSS toto

UPUPSS

““UPS used to be a trucking UPS used to be a trucking company with technology. Now company with technology. Now it’s a technology company with it’s a technology company with trucks.”trucks.” ——ForbesForbes

“It’s all about “It’s all about solutionssolutions. We . We work with customers on work with customers on creating and running better, creating and running better, stronger, cheaper supply stronger, cheaper supply chains.”chains.” —Bob Stoffel, UPS senior exec —Bob Stoffel, UPS senior exec

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

How How SchlumberSchlumberggerer 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

IPM’s Chief:IPM’s Chief: “We’ll do “We’ll do just about anything just about anything

an oilfield owner an oilfield owner would want, from would want, from

drilling to drilling to production.”production.”

Era #1/Obvious ValueEra #1/Obvious Value: “Our ‘it’ works, : “Our ‘it’ works, is delivered on time” (“Close”)is delivered on time” (“Close”)

Era #2/Augmented ValueEra #2/Augmented Value: : “How our “How our ‘it’ can add value—a ‘useful it’ ” ‘it’ can add value—a ‘useful it’ ” (“Solve”)(“Solve”)

Era #3/Complex Value NetworksEra #3/Complex Value Networks: : “How “How our ‘system’ can change you and our ‘system’ can change you and deliver deliver ‘BUSINESS ADVANTAGE’‘BUSINESS ADVANTAGE’” ” (“Culture-Strategic change”)(“Culture-Strategic change”)

Source: Jeff Thull, Source: Jeff Thull, The Prime Solution: Close the Value Gap,The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale Increase Margins, and Win the Complex Sale

““The business of selling is not just about matching The business of selling is not just about matching viable solutions to the customers that require them.viable solutions to the customers that require them.

It’s equally about managing It’s equally about managing the change process the the change process the

customer will need to go customer will need to go through to implement the through to implement the solution and achieve the solution and achieve the value promised by the value promised by the

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

organization.”organization.”—Jeff Thull, —Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale

Universal Value Added:Universal Value Added:

“The PSF“The PSF(Professional Service Firm)(Professional Service Firm)

Solution”Solution”

Small (Small (EntrepreneurialEntrepreneurial) BUSINESS:) BUSINESS:

Training Inc.Training Inc. , a 14- , a 14-person unit* in a 50-person person unit* in a 50-person HR department in a $200M HR department in a $200M

business unit in a $3B business unit in a $3B corporation—aiming for corporation—aiming for

Excellence & WOW!Excellence & WOW!

**PSFPSF// Professional Service Firm (See my … Professional Service Firm (See my …

Professional Service Firm 50: Fifty Ways to Transform Your Professional Service Firm 50: Fifty Ways to Transform Your “Department” Into A Professional Service Firm Whose “Department” Into A Professional Service Firm Whose

Trademarks Are Passion and Innovation.Trademarks Are Passion and Innovation.))

Big Idea:Big Idea: “Corporation” “Corporation” as as

MEGA-“PSF”MEGA-“PSF”**

I.e., a de facto collection of professional service firms aligned and integrated to create

value for customers and their ecosystems.

Iron Innovation Equality Law:Iron Innovation Equality Law: The The Quality and Quantity and Quality and Quantity and

ImaginativenessImaginativeness of Innovation (and “R & D” of Innovation (and “R & D” per se) … per se) … shall be the same shall be the same in all functionsin all functions—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.

DESIGN DESIGN PRIMACYPRIMACY

Design Design #1#1

APPLEAPPLE market market capitalizationcapitalization

>> ExxonExxon MobilMobil**

*August 2011*August 2011

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

vocabularies, design means veneer. … vocabularies, design means veneer. … But to me, nothing could be further from But to me, nothing could be further from

the meaning of design.the meaning of design. DESIGN DESIGN IS THE IS THE

FUNDAMENTALFUNDAMENTAL SOULSOUL OF A MAN-MADE OF A MAN-MADE

CREATION.”CREATION.”

—Steve Jobs—Steve Jobs

““Design is Design is

TREATED TREATED LIKE A LIKE A

RELIGIONRELIGION at BMW.”at BMW.” —Fortune—Fortune

““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 indicative of our era than the iMac. It is to the AAggee ofof

AestheticsAesthetics what McDonald’s was to the what McDonald’s was to the AAggee ofof ConvenienceConvenience or Ford was to the Age of Mass Production— 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 everything enhance the quality of everything the customers see, touch, hear, the customers see, touch, hear,

smell or taste,’smell or taste,’ writes CEO Howard Schultz.”writes CEO Howard Schultz.” —Virginia Postrel, —Virginia Postrel, The Substance of Style: How the Rise of AestheticThe Substance of Style: How the Rise of Aesthetic

Value Is Remaking Commerce, Culture and ConsciousnessValue Is Remaking Commerce, Culture and Consciousness

““Only one company Only one company can be the cheapest. can be the cheapest. All others must use All others must use design.”design.” —Rodney Fitch, Fitch & Co.—Rodney Fitch, Fitch & Co.

Source: Source: InsightsInsights, definitions of design, the Design Council (UK), definitions of design, the Design Council (UK)

Hypothesis:Hypothesis: DESIGNDESIGN is the is the pprincirincippalal

differencedifference

between between lovelove

and and hate!*hate!**Not “like” and “dislike”

Design is …

NEVER … Neutral.

CCDDO*O**Chief *Chief DDesign Officeresign Officer

HHypypothesisothesis: Men : Men

CANNOTCANNOT design for women’s design for women’s

needsneeds!!??!!??

Women BUY Women BUY (Everything)(Everything)!!

““Forget CHINA, Forget CHINA, INDIA and the INDIA and the

INTERNET: Economic INTERNET: Economic Growth Is Driven by Growth Is Driven by

WOMENWOMEN.”.”

Source: Headline, Economist

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

**“Women now drive the global economy. Globally, they control about “Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could climb as high as $20 trillion in consumer spending, and that figure could climb as high as

$28 trillion$28 trillion in the next five years. in the next five years.

Their $13 trillion in total yearly earnings could reach $18 trillion in the Their $13 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 India combined—more 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 ignore or underestimate the female consumer. 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 that are confidant that they have a winning strategy when it 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 …”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

““Women areWomen are THETHE majority majority

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

Women as Decision Makers/Various SourcesWomen as Decision Makers/Various Sources

Home Furnishings … Home Furnishings … 94%94%Vacations … Vacations … 92%92% (Adventure Travel … 70%/ $55B travel equipment)(Adventure Travel … 70%/ $55B travel equipment)

Houses … Houses … 91%91%D.I.Y. D.I.Y. (major “home projects”)(major “home projects”) … … 80%80%

Consumer Electronics … Consumer Electronics … 51%51% (66% home computers)(66% home computers)

Cars … Cars … 68%68% (influence (influence 90%90%))

AllAll consumerconsumer p purchasesurchases … … 83%83% **

Bank Account … Bank Account … 89%89%Household investment decisions … Household investment decisions … 67%67%Small business loans/biz starts … Small business loans/biz starts … 70%70%

Health Care … Health Care … 80%80%

““The The MOST MOST SIGNIFICANT SIGNIFICANT

VARIABLEVARIABLE inin EVERYEVERY sales situation is thesales situation is the

GENDERGENDER of the buyer, and of the buyer, and more importantly, how the more importantly, how the

salesperson communicates to salesperson communicates to the buyer’s gender.”the buyer’s gender.”

—Jeffery Tobias Halter, Selling to Men, Selling to Women

The Perfect Answer

Jill and Jack buy slacks in black…

Sales/After-sales ProcessSales/After-sales Process

1.    Initiation  – 1.    Initiation  – WomenWomen2.    Research – 2.    Research – WomenWomen3.    Purchase  – 3.    Purchase  – Men4.    Ownership – 4.    Ownership – WomenWomen5.    Word-of-mouth – 5.    Word-of-mouth – WomenWomen

Source: Martha Barletta, Source: Martha Barletta, Marketing to Women: How to Increase Your Share of the World’s Largest MarketMarketing to Women: How to Increase Your Share of the World’s Largest Market

1/8/201/8/20

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!““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

44-6544-65:: “NEW “NEW CUSTOMER CUSTOMER MAJORITY”MAJORITY”

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

““The New Customer The New Customer Majority is the … Majority is the …

ONLYONLY … adult market … adult market with realistic prospects with realistic prospects

for significant sales for significant sales growth in dozens of growth in dozens of

product lines for product lines for thousands of thousands of companies.”companies.”

—David Wolfe & Robert Snyder, —David Wolfe & Robert Snyder, Ageless MarketingAgeless Marketing

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

unsuccessful.unsuccessful. No No market’s market’s

motivations andmotivations and needs are so needs are so

poorlpoorlyy understoodunderstood.”.”

——Peter Francese, founding publisher, Peter Francese, founding publisher, American DemographicsAmerican Demographics

EXPERIENCE DESIGN: EXPERIENCE DESIGN:

THE THE “AGE OF “AGE OF TGRs”*TGRs”*

*Things Gone RIGHT*Things Gone RIGHT

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?”

It It BEGINSBEGINS (and (and ENDSENDS) )

in the …in the …

PARKINGPARKING LOTLOT**

*Disney*Disney

<TG<TGWWandand … …

>TG>TGRR(Things Gone (Things Gone WRONGWRONG-Things Gone -Things Gone RIGHTRIGHT))

TGRTGRSS..MANAGEMANAGE ’EM. ’EM.

MEASUREMEASURE ’EM. ’EM.***I use “manage-measure” a lot. Translation: These are*I use “manage-measure” a lot. Translation: These are

not “soft” ideas; they are exceedingly important things not “soft” ideas; they are exceedingly important things that can be managed—AND measured. that can be managed—AND measured.

““ExExpperienceseriences are as distinct are as distinct from servicesfrom services

as services are as services are from goods.”from goods.”

—Joe Pine & Jim Gilmore, —Joe Pine & Jim Gilmore, The Experience Economy: The Experience Economy: Work Is Theatre & Every Business a StageWork Is Theatre & Every Business a Stage

CCXXO*O**Chief e*Chief eXXperience Officerperience Officer

LBTsLBTs

Little =Little =

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

Big carts =Big carts =

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

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

$B$BSource: PepsiCoSource: PepsiCo

2X:2X: “When Friedman“When Friedman

slisligghtlhtly y curvedcurved the right angle of the right angle of

an entrance corridor to one property, an entrance corridor to one property, he was ‘amazed at the magnitude of he was ‘amazed at the magnitude of

change in pedestrians’ behavior’—the change in pedestrians’ behavior’—the percentage who entered increased percentage who entered increased

from from oneone--thirdthird to nearly to nearly twotwo--thirdsthirds.”.”

——Natasha Dow Schull, Natasha Dow Schull, Addiction By Design: Machine Gambling in Las VegasAddiction By Design: Machine Gambling in Las Vegas

Machine GamblingMachine Gambling

““Pleasing” odor #1 vs. Pleasing” odor #1 vs. “pleasing” odor #2: “pleasing” odor #2:

+45%+45% revenue revenue Source:Source: “Effects of Ambient Odors on Slot-Machine Useage in Las Vegas “Effects of Ambient Odors on Slot-Machine Useage in Las Vegas

Casinos,” reported inCasinos,” reported in Natasha Dow Schull, Natasha Dow Schull, Addiction By Design: Addiction By Design: Machine Gambling in Las Vegas Machine Gambling in Las Vegas (66% revenue, 85% profit)(66% revenue, 85% profit)

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

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

““Social Business”Social Business”

““Customer engagement is Customer engagement is moving from relatively isolated moving from relatively isolated market transactions to deeply market transactions to deeply connected and sustained social connected and sustained social relationships. relationships. This basic chanThis basic changge e in how we do business will make in how we do business will make

an iman imppact on act on jjust about ust about evereveryythinthingg we do we do.”.”

Social Business By Design: Transformative Social Media StrategiesSocial Business By Design: Transformative Social Media Strategies For the Connected CompanyFor the Connected Company —Dion Hinchcliffe & Peter Kim —Dion Hinchcliffe & Peter Kim

Winning in Marketplace2013: An Ethos of Winning in Marketplace2013: An Ethos of

HelpingHelping!!““Today, despite the fact that we’re jToday, despite the fact that we’re just a little ust a little

swimminswimmingg ppool companool companyy in Vir in Virgginiainia, we have the , we have the most trafficked swimming pool website in the most trafficked swimming pool website in the

world. Five years ago, if you’d asked me and my world. Five years ago, if you’d asked me and my business partners what we do, the answer would business partners what we do, the answer would have been simple, ‘We build in-ground fiberglass have been simple, ‘We build in-ground fiberglass

swimming pools’ Now we say,swimming pools’ Now we say, ‘We are the ‘We are the best teachers in the world on best teachers in the world on

the subject of fiberglass the subject of fiberglass swimming pools, and we happen swimming pools, and we happen

to build them as well.’”to build them as well.’” —Jay Baer, —Jay Baer,

Youtility: Why Smart Marketing Is About Help, Not HypeYoutility: Why Smart Marketing Is About Help, Not Hype

““Branding” is about:Branding” is about: Everything Everything ANDAND Everyone = Everyone =

Social Media/Social Media/Social Executives/ Social Executives/ Social Employees/Social Employees/

Social Organization/ Social Organization/ Social Business =Social Business =

Seven Characteristics of the Social EmployeeSeven Characteristics of the Social Employee

1. 1. Engaged Engaged 2. 2. Expects Integration of the Expects Integration of the

Personal and ProfessionalPersonal and Professional3. 3. Buys Into the Brand’s StoryBuys Into the Brand’s Story4. 4. Born CollaboratorBorn Collaborator5. 5. ListensListens6. 6. Customer-CentricCustomer-Centric7. 7. Empowered Change AgentEmpowered Change Agent

Source: Cheryl Burgess & Mark Burgess, Source: Cheryl Burgess & Mark Burgess, The Social EmployeeThe Social Employee

REVIEW:REVIEW:INNOVATION INNOVATION

BEDROCKBEDROCK

““MOVE FAST. MOVE FAST. BREAK THINGS.”BREAK THINGS.”

—Facebook—Facebook

““EXPERIMENT EXPERIMENT FEARLESSLY”FEARLESSLY”

Source: BusinessWeek, “Type A Organization Strategies: How to Hit a Moving Target”—Tactic #1Tactic #1

“RELENTLESS TRIAL“RELENTLESS TRIAL AND ERROR” AND ERROR”

Source: Source: Wall Street JournalWall Street Journal, cornerstone of effective approach to “rebalancing” company, cornerstone of effective approach to “rebalancing” company portfolios in the face of changing and uncertain global economic conditions (11.08.10) portfolios in the face of changing and uncertain global economic conditions (11.08.10)

““You can’t be a serious You can’t be a serious innovator unless and until innovator unless and until you are ready, willing and you are ready, willing and

able to seriously play.able to seriously play.

‘‘Serious Serious plplaay’y’ isis not an oxymoron; it is not an oxymoron; it is

the the essenceessence of of innovationinnovation.”.”

—Michael Schrage,—Michael Schrage, Serious PlaySerious Play

““Learn not Learn not to be to be

careful.”careful.”

—Photographer Diane Arbus—Photographer Diane Arbus to her students (Careful = Stay on the sidelines, to her students (Careful = Stay on the sidelines,

from Harriet Rubin in from Harriet Rubin in The Princessa The Princessa ))

““FAIL.FAIL. FORWARD. FORWARD.

FAST.”FAST.”High Tech CEO, Pennsylvania

““REWARDREWARD excellent failures. excellent failures. PUNISHPUNISH mediocre mediocre

successes.”successes.”—Phil Daniels, Sydney exec—Phil Daniels, Sydney exec

““Ideas Economy: Ideas Economy: CAN YOUR CAN YOUR

BUSINESS FAIL BUSINESS FAIL FAST ENOUGH TO FAST ENOUGH TO

SUCCEEDSUCCEED?”?”Source: ad for Economist Source: ad for Economist ConferenceConference/0328.13/Berkeley CA (caps are /0328.13/Berkeley CA (caps are

EconomistEconomist))

““In business, youIn business, you REWARDREWARD people people

for taking for taking RISKS.RISKS. WHEN IT WHEN IT DOESN’T WORK DOESN’T WORK

OUT YOU OUT YOU PROMOTE THEMPROMOTE THEM - -

BECAUSE THEY WERE WILLING BECAUSE THEY WERE WILLING TO TRY NEW THINGSTO TRY NEW THINGS.. If people If people

tell me they skied all day and never tell me they skied all day and never fell down, I tell them to try a fell down, I tell them to try a

different mountain.”different mountain.” —Michael Bloomberg —Michael Bloomberg

((BWBW/0625.07)/0625.07)

““THE ESSENCETHE ESSENCE OF CAPITALISM IS OF CAPITALISM IS

ENCOURAGING ENCOURAGING FAILUREFAILURE, NOT , NOT REWARDING REWARDING

SUCCESS.”SUCCESS.” —Nassim Nicholas Taleb/—Nassim Nicholas Taleb/AntifragileAntifragile

Bert Rutan’s No Rules “Rules”Bert Rutan’s No Rules “Rules”

1. Get going, now; fix it after you’ve1. Get going, now; fix it after you’ve gotten started. gotten started.2. Forget “best,” forget rules—just play2. Forget “best,” forget rules—just play hard and adjust fast. hard and adjust fast.3. People with passion and breadth—3. People with passion and breadth—givengiven freedom from Day #1 to try any-damn- freedom from Day #1 to try any-damn- thing. (Specialism secondary.) thing. (Specialism secondary.)4. Everyone questions everything all the4. Everyone questions everything all the time. No sacred cows (principles). time. No sacred cows (principles). No sacred cows (people). No sacred cows (people).5. Applaud mistakes—and the person 5. Applaud mistakes—and the person whowho made them. made them.(6. It works—product and profit!)(6. It works—product and profit!)

The Honda WayThe Honda Way

**Individual responsibility over Individual responsibility over corporatecorporate mandatesmandates*Simplicity over complexity*Simplicity over complexity*A flat organization*A flat organization*Autonomous and ad hoc design,*Autonomous and ad hoc design, development and manufacturing development and manufacturing teamsteams that are nonetheless continuouslythat are nonetheless continuously accountable to one anotheraccountable to one another**Perpetual changePerpetual change**Unyielding cynicism about what isUnyielding cynicism about what is believed to be truthbelieved to be truth

——Jeffrey Rothfeder, Jeffrey Rothfeder, Driving Honda: Inside the World’s Most Innovative Car CompanyDriving Honda: Inside the World’s Most Innovative Car Company

Diversity: Diversity: ““IT IS HARDLY POSSIBLE TO IT IS HARDLY POSSIBLE TO OVERRATE THE VALUE OF PLACING OVERRATE THE VALUE OF PLACING HUMAN BEINGS IN CONTACT WITH HUMAN BEINGS IN CONTACT WITH PERSONS DIS-SIMILAR TO THEMSELVES, PERSONS DIS-SIMILAR TO THEMSELVES, AND WITH MODES OF THOUGHT AND AND WITH MODES OF THOUGHT AND ACTION UNLIKE THOSE WITH WHICH ACTION UNLIKE THOSE WITH WHICH THEY ARE FAMILIAR. SUCH THEY ARE FAMILIAR. SUCH COMMUNICATION HAS ALWAYS BEEN, COMMUNICATION HAS ALWAYS BEEN, AND IS PECULIARLY IN THE PRESENT AND IS PECULIARLY IN THE PRESENT AGE, ONE OF THE PRIMARY SOURCES AGE, ONE OF THE PRIMARY SOURCES OF PROGRESSOF PROGRESS.”.” —John Stuart Mill—John Stuart Mill

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’””

“The Bottleneck is at the …The Bottleneck is at the … “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 … …

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

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

““I speak to you with a feminine voice.I speak to you with a feminine voice. It’s the voice of democracy, of equality. It’s the voice of democracy, of equality.

I am certain, ladies and gentlemen,I am certain, ladies and gentlemen, that that this will be this will be

the woman’s the woman’s centurcentury.y. In the Portuguese language, In the Portuguese language,

words such as life, soul, and hope are of the feminine words such as life, soul, and hope are of the feminine

gender, as are other words like courage and sincerity.”gender, as are other words like courage and sincerity.”

——President Dilma Rousseff of BrazilPresident Dilma Rousseff of Brazil, 1st woman to, 1st woman to keynote the United Nations General Assembly (2011)keynote the United Nations General Assembly (2011)

S&P 500S&P 500

-1/+1*-1/+1*

*Every …*Every … 22 weeksweeks!!Source: Richard Foster (via Rita McGrath/Source: Richard Foster (via Rita McGrath/HBRHBR/12.26.13/12.26.13

MITTELSTANDMITTELSTAND**

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

I loveI love Middle-sized Middle-sized Niche- Niche-

Micro-niche Micro-niche Dominators!* Dominators!*

*"Own" a niche through *"Own" a niche through EXCELLENCEEXCELLENCE!!

Aizen Kobo Aizen Kobo Indigo Indigo

WorkshopWorkshop

The Magicians of Motueka & the Mittelstand TrifectaThe Magicians of Motueka & the Mittelstand Trifecta

W.A. Coppins Ltd.*W.A. Coppins Ltd.*(Coppins Sea Anchors/(Coppins Sea Anchors/PSA/para sea anchors)PSA/para sea anchors)

*Textiles, 1898; thrive on *Textiles, 1898; thrive on “wicked problems”“wicked problems”——e.g., U.S. Navy STLVAST (Small To Large Vehicle At Sea Transfer); e.g., U.S. Navy STLVAST (Small To Large Vehicle At Sea Transfer);

custom fabric from custom fabric from W. WiW. Wiggggins Ltdins Ltd./Wellington ./Wellington

(specialty nylon, “Dyneema,” from (specialty nylon, “Dyneema,” from DSMDSM/Netherlands)/Netherlands)

““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

LEADING:LEADING: MBWAMBWA

MBWAMBWA

MManaginganaging

BBy y

WWanderingandering

AAroundround

““I’m always stopping by our I’m always stopping by our

stores— stores— at least at least 2525

a weeka week.. I’m also in other I’m also in other

places: Home Depot, Whole Foods, places: Home Depot, Whole Foods, Crate & Barrel. I try to beCrate & Barrel. I try to be

a sponge to pick up as much a sponge to pick up as much as I can.”as I can.” —Howard Schultz—Howard Schultz

Source: Source: FortuneFortune, “Secrets of Greatness”, “Secrets of Greatness”

““Most managers spend a great deal of time thinking about what they plan to do, but relatively little time thinking about Most managers spend a great deal of time thinking about what they plan to do, but relatively little time thinking about what they plan not to do. As a result, they become so caught up … in fighting the fires of the moment that they cannot what they plan not to do. As a result, they become so caught up … in fighting the fires of the moment that they cannot

really attend to the long-term threats and risks facing the organization. So the first soft skill of leadership the hard way is really attend to the long-term threats and risks facing the organization. So the first soft skill of leadership the hard way is

to cultivate the perspective of Marcus Aurelius: avoid busyness, free up your time, stay focused on what really matters.to cultivate the perspective of Marcus Aurelius: avoid busyness, free up your time, stay focused on what really matters.

Let me put it bluntly: every leader Let me put it bluntly: every leader should routinely keep a substantial should routinely keep a substantial

portion of his or her time—I would say portion of his or her time—I would say

as much asas much as 5050 percent—percent—

unscheduledunscheduled.. … Only when you have substantial ‘slop’ in your schedule—unscheduled time—will … Only when you have substantial ‘slop’ in your schedule—unscheduled time—will

you have the space to reflect on what you are doing, learn from experience, and recover from your inevitable mistakes. you have the space to reflect on what you are doing, learn from experience, and recover from your inevitable mistakes. Leaders without such free time end up tackling issues only when there is an immediate or visible problem. Managers’ Leaders without such free time end up tackling issues only when there is an immediate or visible problem. Managers’

typical response to my argument about free time is, ‘That’s all well and good, but there are things I have to do.’typical response to my argument about free time is, ‘That’s all well and good, but there are things I have to do.’ Yet Yet we waste so much time in unwe waste so much time in unpproductive activitroductive activity—y—it takes an it takes an

enormous effort on the enormous effort on the ppart of the leader to keeart of the leader to keepp free time for the free time for the trultrulyy im impportant thinortant thinggss.”.”

——Dov FrohmanDov Frohman (& Robert Howard (& Robert Howard), Leadership The Hard Way: Why Leadership Can’t Be Taught—), Leadership The Hard Way: Why Leadership Can’t Be Taught—

And How You Can Learn It Anyway (Chapter 5, “The Soft Skills Of Hard Leadership”)And How You Can Learn It Anyway (Chapter 5, “The Soft Skills Of Hard Leadership”)

You = Your You = Your calendarcalendar**

*The calendar *The calendar NEVERNEVER lies.lies.

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

‘To-don’t’‘To-don’t’

List !”List !”

““Nothing is Nothing is so contagious so contagious

as as enthusiasm.”enthusiasm.”

—Samuel Taylor Coleridge—Samuel Taylor Coleridge

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

enthusiasm.”enthusiasm.”

—Ben Zander, symphony conductor and management guru—Ben Zander, symphony conductor and management guru

Meetings Meetings

MATTERMATTER!!

Meetings are the Meetings are the #1#1 thing thing

bosses bosses dodo. Therefore, . Therefore, 100%100%

of those meetings:of those meetings: EXCELLENCE. EXCELLENCE. ENTHUSIASM. ENTHUSIASM. ENGAGEMENT. ENGAGEMENT.

LEARNING. TEMPO. LEARNING. TEMPO. WORK-OF-ARTWORK-OF-ART.. DAMNDAMN ITIT..

#1#1 CEOCEO Failing?Failing?

““If I had toIf I had to pick one failing pick one failing

of CEOs, it’sof CEOs, it’s that …that …

——Co-founder of one of the largest investment services firms in the USA/worldCo-founder of one of the largest investment services firms in the USA/world

“If I had to pick one failing of

CEOs, it’s that … they don’t read enough.”

4, 8, 124, 8, 12

““The The 44 most most

important important 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 “WHAT DO DO YOUYOU THINK?”THINK?”

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

88: :

Change the World With EIGHT WordsChange the World With EIGHT Words

What do you think?*What do you think?*How can I help?**How can I help?**

*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”**Boss as CHRO/Chief Hurdle Removal Officer **Boss as CHRO/Chief Hurdle Removal Officer ********************************************************************

1212: :

Change the WorldChange the World With TWELVE Words With TWELVE Words

What do you think?*What do you think?*How can I help?**How can I help?**

What have you learned?***What have you learned?***

*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”**Boss as CHRO/Chief Hurdle Removal Officer **Boss as CHRO/Chief Hurdle Removal Officer ********************************************************************

***What (new thing) have you learned (in the last 24 hours)? ***What (new thing) have you learned (in the last 24 hours)? ********************* * ********************* *

AcknowledgementAcknowledgement!!

““The deepest principle The deepest principle in human nature is the in human nature is the

cravingcraving** to be to be appreciated.”appreciated.”

—William James—William James

**“Craving,” not “wish” or “desire” or “Craving,” not “wish” or “desire” or “longing”/Distinction per Dale Carnegie in “longing”/Distinction per Dale Carnegie in How to Win How to Win Friends and Influence People, Friends and Influence People, chapter titled “The BIG chapter titled “The BIG

Secret of Dealing With People”Secret of Dealing With People”

““The deepest The deepest urgeurge

in human nature in human nature is the desire to is the desire to

be important.”be important.” —John —John

DeweyDewey(In Dale Carnegie, (In Dale Carnegie, How to Win Friends and Influence How to Win Friends and Influence

People People (“The BIG Secret of Dealing With People”)(“The BIG Secret of Dealing With People”)

““Employees who Employees who don't feel significant don't feel significant

rarely make rarely make significant significant

contributions.”contributions.” —Mark Sanborn—Mark Sanborn

DRIVING DRIVING INNOVATION:INNOVATION:

11 Mouth, Mouth,

22 Ears Ears

“The doctor interrupts after …*

*Source: Jerome Groopman, How Doctors Think

18 …

18 … seconds!

(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 organization effectiveness.)organization effectiveness.)

(cont.)(cont.)

Suggested Suggested Core Value Core Value #1:#1: “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.”

LISTEN = “PROFESSION” =

STUDY = PRACTICE = EVALUATION =

ENTERPRISE VALUE

InnovateInnovate or Perish: or Perish:The RULESThe RULES

16 RULES/2014: INNOVATE (16 RULES/2014: INNOVATE (RADICALRADICAL) OR PERISH) OR PERISH

1.1. Giants (Inevitably) STUMBLE. Giants (Inevitably) STUMBLE.2.2. “MITTELSTAND” “Dominators” MATTER MOST/ “MITTELSTAND” “Dominators” MATTER MOST/3.3. NUMBERS Game/ NUMBERS Game/

MOST TRIES WINSMOST TRIES WINS..

4.4. FAILURE “Encouraged”/CELEBRATED/ FAILURE “Encouraged”/CELEBRATED/ “ “MOST Mistakes (the FASTEST) Wins.”MOST Mistakes (the FASTEST) Wins.”5.5. Shout “NO” to Normal/DIVERSITY (On Any-All Dimensions) Shout “NO” to Normal/DIVERSITY (On Any-All Dimensions) Triumphs. Triumphs. 6.6. Diversity/INTERNATIONALIZATION. Diversity/INTERNATIONALIZATION.7.7. Diversity/WOMEN. Diversity/WOMEN.8.8. MORAL Imperative/PEOPLE DEVELOPMENT (Radical). MORAL Imperative/PEOPLE DEVELOPMENT (Radical). (E.g., CREATIVITY & Implacable “Human Capital” GROWTH = (E.g., CREATIVITY & Implacable “Human Capital” GROWTH = Success. Lack Thereof = IMPEACHABLE Offense.)Success. Lack Thereof = IMPEACHABLE Offense.)9.9. SURVIVAL Imperative/ “Discontinuous” INNOVATION. SURVIVAL Imperative/ “Discontinuous” INNOVATION.10.10. Innovation: DESIGN Driven (Radical). Innovation: DESIGN Driven (Radical).11.11. Innovation: Expanding (Radical) the “EXPERIENCE Innovation: Expanding (Radical) the “EXPERIENCE ENVELOPE.”ENVELOPE.”12.12. Innovation: Expanding (Radical) the “SERVICES ENVELOPE.” Innovation: Expanding (Radical) the “SERVICES ENVELOPE.”13.13. Innovation: WOMEN and the 50+ markets. Innovation: WOMEN and the 50+ markets.14.14. SURVIVAL Imperative/THRIVE ON CHAOS (“Antifragile”). SURVIVAL Imperative/THRIVE ON CHAOS (“Antifragile”).15.15. SURVIVAL Imperative/“In Touch” LEADERSHIP/MBWA SURVIVAL Imperative/“In Touch” LEADERSHIP/MBWA16.16. The ONLY Standard/EXCELLENCE. The ONLY Standard/EXCELLENCE.

““INSANELY GREAT”INSANELY GREAT”STEVE JOBSSTEVE JOBS

“RADICALLY THRILLING” “RADICALLY THRILLING” BMW

“ASTONISH ME”“ASTONISH ME” SERGEI DIAGHLEV, TO A LEAD DANCER

“BUILD SOMETHING GREAT”“BUILD SOMETHING GREAT” HIROSHI YAMAUCHI, NINTENDO, TO A SENIOR GAME DESIGNER

“MAKE IT IMMORTAL”“MAKE IT IMMORTAL” DAVID OGILVY, TO A COPYWRITER.