CONRAD HILTON at a gala celebrating his career

CONRAD HILTON, at a gala celebrating his career, was called to the podium and asked, “What were the most important lessons you learned in your long and distinguished career? ” His answer …

First Things BEFORE First Things

1

CONRAD HILTON, at a gala celebrating his career, was called to the podium and asked, “What were the most important lessons you learned in your long and distinguished career? ” His answer …

“Remember to tuck the shower curtain inside the bathtub. ”

IS “EXECUTION STRATEGY. ” —Fred Malek

2

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

“We made mistakes, of course. Most of them were omissions We fixed them by doing it over and over, again and again. We do the same today. While our we didn’t think of when we initially wrote the software. competitors are still sucking their thumbs trying to make the design perfect, we’re already on prototype version #5. By the time our rivals are ready with wires and screws, we are on version #10. It gets back to planning versus acting: We act from day one; others plan how to plan— for months. ” —Bloomberg by Bloomberg

“EXPERIMENT FEARLESSLY” Source: Business. Week, “Type A Organization Strategies: How to Hit a Moving Target”— Tactic #1 “RELENTLESS TRIAL AND ERROR” Source: Wall Street Journal, cornerstone of effective approach to “rebalancing” company portfolios in the face of changing and uncertain global economic conditions (11. 08. 10)

“Metabolic Management” Leader:

Excellence 82: The Bedrock “Eight Basics” A Bias for Action 1. 2. Close to the Customer 3. Autonomy and Entrepreneurship 4. Productivity Through People 5. Hands On, Value-Driven 6. Stick to the Knitting 7. Simple Form, Lean Staff 8. Simultaneous Loose-Tight Properties

Lesson 47: WTTMSW

WHOEVER TRIES THE MOST STUFF WINS

LONG Tom Peters’ ! EXCELLENCE Medtronic EMEAC FY-15 Annual Kickoff Meeting/Frankfurt/03 June 2014 (Slides++ at tompeters. com; also see our 23 -part Master Compendium at excellencenow. com)

“The greatest shortcoming of the human race is our inability to understand the exponential function. ” 1/721: —Albert A. Bartlett

“Human level capability has not turned out to be a special stopping point from an engineering perspective. …. ” Source: Illah Reza Nourbakhsh, Professor of Robotics, Carnegie Mellon, Robot Futures

Io. T/The Internet of Things Io. E/The Internet of Everything M 2 M/Machine-to-Machine Ubiquitous computing Embedded computing Pervasive computing Industrial Internet Etc. * ** *“More Than 50 BILLION connected devices by 2020” —Ericsson **Estimated 212 BILLION connected devices by 2020—IDC ***“By 2025 Io. T could be applicable to $82 TRILLION of output or approximately one half the global economy”—GE [The WAGs to end all WAGs!]

“Automation has become so sophisticated that on a typical passenger flight, a human pilot holds the controls for a grand total of … 3 minutes . [Pilots] have become, it’s not much of an exaggeration to say, computer operators. ” Source: Nicholas Carr, “The Great Forgetting, ” The Atlantic, 11. 2013

“Internet of Things”: “The algorithms created by Nest’s machine-learning experts—and the troves of data generated by those algorithms—are just as important as the sleek materials carefully selected by its industrial designers. By tracking its users and subtly influencing their behaviors, Nest Learning Thermostat transcends its pedestrian product category. Nest has similar hopes for what has always been a prosaic device, the smoke alarm. Yes, the Nest Protect does what every similar device does—goes off when smoke or CO reaches dangerous levels— but it does much more, by using sensors to distinguish between smoke and steam, Internet connectivity to tell you where the danger is, a calculated tone of voice to convey a personality, and warm lighting to guide you in the darkness. In other words, Nest isn’t only about beautifying thermostat or adding features ‘We’re about creating the conscious home, ’ to the lowly smoke detector. said Nest CEO Fadell. Left unsaid is a grander vision, with even bigger implications, many devices sensing the environment, talking to one another, and doing our bidding unprompted. ” Source: “Where There’s Smoke …”, Steven Levy, Wired, NOV 2013

SENSOR PILLS: “… Proteus Digital Health is one of several pioneers in sensor-based health technology. They make a silicon chip the size of a grain of sand that is embedded into a safely digested pill that is swallowed. When the chip mixes with stomach acids, the processor is powered by the body’s electricity and transmits data to a patch worn on the skin. That patch, in turn, transmits data via Bluetooth to a mobile app, which then transmits the data to a central database where a health technician can verify if a patient has taken her or his medications. “This is a bigger deal than it may seem. In 2012, it was estimated that people not taking their prescribed medications cost $258 BILLION in emergency room visits, hospitalization, and doctor visits. An average of 130, 000 Americans die each year because they don’t follow their prescription regimens closely enough. . ” [The FDA approved placebo testing in April 2012; sensor pills are ticketed to come to market in 2015 or 2016. ] Source: Robert Scoble and Shel Israel, Age of Context: Mobile, Sensors, Data and the Future of Privacy

“Steve, you’re costing me a hundred nanoseconds. Can you at least cross it diagonally? ” [$100 B/Millisecond]

“Who’s the most interesting person you’ve met in the last 90 days? How do I get in touch with them? ” —Fred Smith

“Just like other members of the board, the algorithm gets to vote on whether the firm makes an investment in a specific company or not. The program will be the sixth member of DKV's board. ”

Walmart SV = 1, 500

60 IS THE NEW 40! 70 IS THE NEW 50! ? 35 IS THE NEW 65

Bon Chance …

“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 … 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 Buy a very large one and just wait. ” myself? ’ The answer seems obvious: —Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics

“Mr. Foster and his Mc. Kinsey colleagues collected detailed performance data stretching back years for 40 1, 000 U. S. companies. They found that NONE of the long-term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did. ” —Financial Times

S&P 500 +1/-1* *Every … ! 2 weeks Source: Richard Foster (via Rita Mc. Grath/HBR/12. 26. 13

NO OPTION: Avoiding “Commodity Hell”: Service on Steroids

“You are headed for commodity hell if you don’t have services. ” )

“While everything may be it is also increasingly the same. ” better, Paul Goldberger, “The Sameness of Things, ” The New York Times

“The ‘surplus society’ has a surplus of similar companies, employing similar people, with similar educational backgrounds, coming up with similar ideas, producing similar things, with similar prices and similar quality. ” —Kjell Nordström and Jonas Ridderstråle, Funky Business

More @ Moore

“Lou, Your mission is to break the company up and release hidden value!”

“Lou, with all the money I’ve spent with you guys on ‘the best, ’ this or that, this AND that, why in the hell hasn’t my business been transformed? ”

M IB to B I M

$50 B+* *IBM Global Services/ “Systems integrator of choice”

Planetary Rainmaker-in-Chief! “[CEO Sam] Palmisano’s strategy is to expand tech’s borders by pushing users— and entire industries—toward radically different business models. The payoff for IBM would be access to an ocean of revenue—Palmisano estimates it at $500 billion a year— that technology companies have never been able to touch. ”—Fortune

“You are headed for commodity hell if you don’t have services. ” —Lou Gerstner, on IBM’s coming revolution (1997)

“If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of people is very, very hard. Yet I came to see in my time at IBM that culture isn’t just one aspect of the IT IS THE GAME. ” game— —Lou Gerstner, Who Says Elephants Can’t Dance

PS U to

“Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Corporate America” —Headline/BW “UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent. ” —ecompany. com UPS Logistics (E. g. , manages the logistics of 4. 5 M Ford vehicles, from 21 mfg. sites to 6, 000 NA dealers)

“WHAT CAN BROWN DO FOR YOU? ” “It’s all about solutions. We talk with customers about how to run better, stronger, cheaper supply chains. We have 1, 000 engineers who work with customers …” —Bob Stoffel, UPS senior exec

“THE GIANT STALKING BIG OIL: How Schlumberger Is Rewriting the Rules of the Energy Game. ”: “IPM [Integrated Project Management] strays from [Schlumberger’s] traditional role as a service provider and moves deeper into areas once dominated by the majors. ” Source: Business. Week cover story, January 2008

“We’ll do just about anything an oilfield owner would want, from drilling to production. ” IPM’s Chief:

“Rolls-Royce now earns more from tasks such as managing clients’ procurement strategies and maintaining aerospace engines it sells than it does from making them. ” —Economist

“We want to be the air traffic controllers of electrons. ” —Bob Nardelli, then CEO, GE Power Systems (GE core business that has been making products such as transformers for decades and decades)

“Customer Satisfaction” to “Customer Success”: “We’re getting better at [Six Sigma] every day. But we really need to think about the customer’s profitability: Are customers’ bottom lines really benefiting from what we provide them? ” —Bob Nardelli, then chief of GE Power Systems

UTC/Otis + UTC/Carrier: boxes* to “integrated building systems” *elevators, air conditioners

Service-Systems Paradox: Cut & Grow Automate 75% of “commodity” service activities/Cut staff and/but Add value via people-intensive “strategic/systems-integration activities” (Est: Sun’s service/sysint business could be 60% of revenues. ) (Hiring from PWC, etc. )

Date: September 2013 Location: Chicago Client: 500 law-firm partners Complaint: “Legal practice becoming commoditized”/ “big clients cutting costs, bringing the work inside, ” “more and more competitive bid situations”

Master. Card Advisors

IDEO’s Progression Product Design to Product Design Training to Corporate Innovation/ Culture Training/Consulting

Omnicom: 57% from marketing services

“No longer are we only an insurance provider. Today, we also offer our customers the products and services that help them achieve their dreams, whether it’s financial security, buying a car, paying for home repairs, or even taking a dream vacation. ” —Martin Feinstein, CEO, Farmers Group

“The business of selling is not just about matching viable solutions to the customers that require them. It’s equally about managing the change process the customer will need to go through to implement the solution and achieve the value promised by the solution. One of the key differentiators of our position in the market is our attention to managing change and making change stick in our customers’ organization. ”* (*E. g. : CRM failure rate/Gartner: 70%) —Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale

“If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of people is very, very hard. Yet I came to see in my time at IBM that culture isn’t just one aspect of the IT IS THE GAME. ” game— —Lou Gerstner, Who Says Elephants Can’t Dance

90 K in U. S. A. ICUs on any given day; 178 discrete steps/day/patient in ICU. 50% ICU stays result in “serious complication. ” Source: Atul Gawande, “The Checklist” (New Yorker, 1210. 07)

**Dr. Peter Pronovost, Johns Hopkins ** Checklist /dealing with line infections **1/3 rd lines, at least one procedural error when he started checklist program **Nurses/permission-requirement to stop procedure if doc, other not following checklist (BIG DEAL) **In 1 year, ICU’s 10 -day line-infection rate: 11% to … 0% Source: Atul Gawande, “The Checklist” (New Yorker, 1210. 07)

hundreds of times better here “I am [than in my prior hospital assignment] because of the support system. It’s like you were working in an organism; you are not a single cell when you are out there practicing. ’” —quote from Dr. Nina Schwenk, in Chapter 3, “Practicing Team Medicine, ” from Leonard Berry & Kent Seltman, Management Lessons From Mayo Clinic

“When I was in medical school, I spent hundreds of hours looking into a microscope—a skill I never needed to know or ever use. Yet I didn’t have a single class that taught me communication or teamwork skills—something I need every day I walk into the hospital. ” —Peter Pronovost, Safe Patients, Smart Hospitals

“[Pronovost] is focused on work that is not normally considered a significant contribution in academic medicine. As a result, few others are venturing to extend his YET HIS WORK HAS ALREADY SAVED MORE LIVES THAN THAT OF ANY LABORATORY SCIENTIST IN THE LAST DECADE. ” achievements. —Atul Gawande, “The Checklist” (New Yorker, 1210. 07)

The (RELENTLESS) Pursuit of Effective Sub-optimality Never “best system”; always “best IMPLEMENTED system. ” Rarely is significant change implemented without CULTURE CHANGE. “It” happens three levels down. (“I hired women. ”) All invention must be co-invention. POLITICS: The all important “last 95%. ” Compromise is endemic. “We” power. Bigger than desirable teams are likely requisite. Need to recruit-nurture a core group of a dozen allies. 80% OF YOUR TIME SHOULD BE SPENT ON ALLY RECRUITMENT-DEVELOPMENT. (Keep tellin’ ’em you love ’em; never take ’em for granted. ) Allies 3 levels down more important than “top guys. ” Bust your back finding a few docs who get it. Sub-optimization is the watchword. Compromise is thy name. The more women the better—the masters of indirection. Your team must match gender composition of client team.

The (RELENTLESS) Pursuit of Effective Sub-optimality Lotsa “social stuff. ” WTTMSW. Small wins >> Big wins. MBWA! Make friends/ROIR. Never waste a lunch. Never take credit for anything. Culture change: F 2 F, not E 2 E. Tell the truth. Apologize for even the tiniest screw-ups. Say “Thank YOU” ’til you’re blue in the face. Norm did tea. Visible. (Woody’s 80%. ) Meeting protocol: Respectful. YOUR PROFESSION IS LISTENING. “Meeting excellence” is not an oxymoron. Remove “sad dogs who spread gloom. ” (D. O. ) Ls >> Ws; your role is realistic encouragement. The goal should be “Wow, ” not “good” or even “Very good. ”

Thinking In Terms of the Overall “Experience”

“Experiences are as distinct from services as services are from goods. ” —Joe Pine & Jim Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

“The [Starbucks] Fix” Is on … “We have identified a ‘third place. ’ And I really believe that sets us apart. The third place is that place that’s not work or home. It’s the place our customers come for refuge. ” —Nancy Orsolini, District Manager

“Club Med is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an entirely new ‘me. ’ ” Source: Jean-Marie Dru, Disruption

The 9 Planetree Practices 1. The Importance of Human Interaction 2. Informing and Empowering Diverse Populations: Consumer Health Libraries and Patient Information 3. Healing Partnerships: The importance of Including Friends and Family 4. Nutrition: The Nurturing Aspect of Food 5. Spirituality: Inner Resources for Healing 6. Human Touch: The Essentials of Communicating Caring Through Massage 7. Healing Arts: Nutrition for the Soul 8. Integrating Complementary and Alternative Practices into Conventional Care 9. Healing Environments: Architecture and Design Conducive to Health Source: Putting Patients First , Susan Frampton, Laura Gilpin, Patrick Charmel

Experience: “Rebel Lifestyle!” “What we sell is the ability for a 43 -year-old accountant to dress in black leather, ride through small towns and have people be afraid of him. ” Source: Harley exec, quoted in Results-Based Leadership

<TGW <TG and … >TGR [Things Gone WRONG-Things Gone RIGHT]

Design = Functionality + Aesthetics + Psychology “Most whiz-bang technologies don’t sell themselves on function alone; they’ve got to offer pleasure, too. My favorite recent example is the ride-sharing service Uber. Sure, hailing a cab on your phone is more convenient than waiting for one on a street corner. But that’s not the main reason people love Uber. They love it because Uber lets you feel like the boss: A car rushes to pick you up, and when it drops you off, you jump out without ever reaching for your wallet, as if you own the town. Uber isn’t using technology to sell convenience. It’s selling addictive thrills. It’s selling joy. ” —Farhad Manjoo, “Personal Tech, ” New York Times, 0528. 14

Big carts = 1. 5 X Source: Walmart

2 X: “When Friedman slightly curved the right angle of an entrance corridor to one property, he was ‘amazed at the magnitude of change in pedestrians’ behavior’—the percentage onethird to nearly two-thirds. ” who entered increased from —Natasha Dow Schull, Addiction By Design: Machine Gambling in Las Vegas

Machine Gambling “Pleasing” odor #1 vs. “pleasing” odor #2: +45% revenue Source: “Effects of Ambient Odors on Slot-Machine Useage in Las Vegas Casinos, ” reported in Natasha Dow Schull, Addiction By Design: Machine Gambling in Las Vegas (66% revenue, 85% profit)

“If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of thousands of people is very, very hard. Yet I came to see in my time at IBM that culture isn’t just one aspect of the IT IS THE GAME. ” game— —Lou Gerstner, Who Says Elephants Can’t Dance

“… this will be the woman’s century …”

“I speak to you with a feminine voice. It’s the voice of democracy, of equality. that this will be the woman’s century. I am certain, ladies and gentlemen, In the Portuguese language, words such as life, soul, and hope are of the feminine gender, as are other words like courage and sincerity. ” —President Dilma Rousseff of Brazil, 1 st woman to keynote the United Nations General Assembly (2011)

“Research suggests that to succeed, start by promoting women. ” —Nicholas Kristof, “Twitter, Women, and Power, ” NYTimes, 1024. 13

“Mc. Kinsey & Company found that the international companies with more women on their corporate boards far outperformed the average company in return on equity and other measures. Operating profit was higher. ” 56% —Nicholas Kristof, “Twitter, Women, and Power, ” NYTimes, 1024. 13

“AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” TITLE/ Special Report/ Business. Week

Women’s Strengths Match New Economy Imperatives: Link [rather than rank] workers; favor interactivecollaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power as victory, not surrender; favor multidimensional feedback; value technical & interpersonal skills, individual & group contributions equally; readily accept ambiguity; honor intuition as well as pure “rationality”; inherently flexible; appreciate cultural diversity. Source: Judy B. Rosener, America’s Competitive Secret: Women Managers

Women’s Negotiating Strengths *Ability to put themselves in their counterparties’ shoes *Comprehensive, attentive and detailed communication style *Empathy that facilitates trust-building *Curious and attentive listening *Less competitive attitude *Strong sense of fairness and ability to persuade *Proactive risk manager *Collaborative decision-making Source: Horacio Falcao, Cover story/May 2006, World Business, “Say It Like a Woman: Why the 21 st-century negotiator will need the female touch”

“Forget CHINA, INDIA and the INTERNET: Economic Growth Is Driven by WOMEN. ” Source: Headline, Economist

W> 2 X (C + I)* *“Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could climb as high as $28 trillion in the next five years. Their $13 trillion in total yearly earnings could reach $18 trillion in the same period. 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. 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 …” Source: Michael Silverstein and Kate Sayre, “The Female Economy, ” HBR, 09. 09

The Perfect Answer Jill and Jack buy slacks in black…

Warren Buffett Invests Like a Girl: And Why You Should Too —Louann Lofton

Portrait of a Female Investor 1. Trade less than men do 2. Exhibit less overconfidence—more likely to know what they don’t know 3. Shun risk more than male investors do 4. Less optimistic, more realistic than their male counterparts 5. Put in more time and effort researching possible investments—consider details and alternate points of view 6. More immune to peer pressure—tend to make decisions the same way regardless of who’s watching 7. Learn from their mistakes 8. Have less testosterone than men do, making them less willing to take extreme risks, which, in turn, could lead to less extreme market cycles Source: Warren Should Too, Buffett Invests Like a Girl: And Why You Louann Lofton, Chapter 2, “The Science Behind the Girl”

PSF

Sarah: “ Mom, what do you do? ”

Sarah: Mom: “ Mom, what do you do? ” “I’m ‘overhead’—the ‘bureaucrat’ who runs the ‘cost center’ called ‘Human Resources. ”

Anne: “ Mom, what do you do? ”

“Anne, my human resources team and I are the Mom: ‘Rock Stars of the Age of Talent. ’ We drive our division’s strategic success. ”

Department Head/“Cost center”/“Overhead” to … MANAGING PARTNER, HR INC. [IS, R&D, ETC. ]

“Technology Executive” (workin’ in a hospital) HCare CIO: Full-scale, Accountable (life or death) Member-Partner of XYZ Hospital’s Senior Healing-Services Team Or/to: (who happens to be a techie)

Fleet Manager Rolling Stock Cost Minimization Officer vs/or Chief of Fleet Lifetime Value Maximization Strategic Supply-chain Executive Customer Experience Director (via drivers, etc. )

Are you the … “Principal Engine of Value Added”

Big Idea: “CORPORATION” AS MEGA“PSF”

PSF/Professional Service Firm/Beliefs PROFESSION: CALLING/PASSION TO MAKE A DIFFERENCE/EXCELLENCE POINT OF VIEW: KNOW EXACTLY WHAT WE STAND FOR/ “DRAMATIC DIFFERENCE” CLIENT: ENDURING, TEST-THE-LIMITS RELATIONSHIP/“TRUSTED ADVISOR” SOLUTION: ROCK HIS-HER WORLD/ “WOW”/ IMPLEMENTED “CULTURE CHANGE”/ >>>>>> “SATISFACTION”

Every “PSF” must have a formal & formidable R&D budget. PERIOD.

The Professional Service Firm 50: Fifty Ways to Transform Your “Department” into a Professional Service Firm Whose Trademarks are Passion and Innovation!

Attributes of Professional Service Firms in Pursuit of Excellence

The PSF 35: The Work & The Legacy 1. CRYSTAL CLEAR POINT OF VIEW (E very Practice Group: “If you can’t explain your position in eight words or less, you don’t have a position”—Seth Godin) 2. DRAMATIC DIFFERENCE (“We are the only ones who do what we do”—Jerry Garcia) 3. Stretch Is Routine (“Never bite off less than you can chew”—anon. ) 4. Eye-Appetite for Game-changer Projects (Excellence at Assembling “Best Team”—Fast) 5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change the World) 6. Small “Uneconomic” Clients with Big Aims 7. Life Is Too Short to Work with Jerks (Fire lousy clients) 8. OBSESSED WITH LEGACY (Practice Group and Individual: “Dent the Universe”—Steve Jobs) 9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/ I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ” 10. Consistent with #9 above … DO NOT SHY AWAY FROM THE WORD (IDEA) “RADICAL”

The PSF 35: The Client Experience 11. Always team with client: “full partners in achieving memorable results” (Wanted: “Chimeras of Moonstruck Minds”!) 12. We will seek assistance Anywhere to assemble the Best-in. Planet Team for the Project 13. Client Team Members routinely declare that working with us was “the Peak Experience of my Career” 14. The job’s not done until implementation is “ 100. 00% complete” (Those who don’t “get it” must go) IMPLEMENTATION IS NOT COMPLETE UNTIL THE CLIENT HAS EXPERIENCED “CULTURE CHANGE” 16. IMPLEMENTATION IS NOT COMPLETE UNTIL SIGNIFICANT “TECHNOLOGY TRANSFER” HAS TAKEN PLACE-ROOT 15. (“Teach a man to fish …”) 17. The Final Exam: DID WE MAKE A DRAMATIC, LASTING, GAME-CHANGING DIFFERENCE?

The PSF 35: The People & The Leadership 18. TALENT FANATICS (“Best-Coolest place to work”) (PERIOD) 19. EYE FOR THE PECULIAR (Hiring: Go beyond “same old, same old”) 20. Early Opportunities (vs. “Wait your turn”) 21. Up or Out (Based on “Legacy”/Mentoring as much as “Billings”/“Rainmaking”) 22. Slide the Old Aside/Make Room for Youth (Find oldsters new roles? ) 23. TALENT IS OBSESSED WITH RENEWAL FROM DAY #1 TO DAY #“R” [R = Retirement] 24. Office/Practice Leaders Evaluated Primarily on Mentoring-Team Building Skills 25. A “PROPRIETARY” TALENT DEVELOPMENT PROCESS (GE) 26. Team Leadership Skills Valued Early 27. Partner with B. I. W. [Best In World] Outsiders as Needed and to Infuse Different Views

The PSF 35: The Firm & The Brand 28. EAT-SLEEP-BREATHE-OOZE INTEGRITY (“My life is my message”—Gandhi) 29. Excellence+ in EXECUTION … 100. 00% of the Time 30. “Drop everything”/“Swarm” to Support a Harried-On -the-Verge Team 31. SPEND ON R&D LIKE A TECH FIRM. 32. A PROPRIETARY METHODOLOGY (Mc. Kinsey, Chiat Day, IDEO, old EDS) 33. BRAND MANIACS (Organize Around a Point of View Worth BROADCASTING) 34. PASSION! 35. ENTHUSIASM! EXCELLENCE. ALWAYS.

Photographer: Louise Roach

MBWA

25*/50** *Howard’s religion **Dov’s Big 2

Managing By Wandering Around

“If there is any one ‘secret’ to effectiveness, it is concentration. Effective executives do first things first … and they do one thing at a time. ” —Peter Drucker

#1 Meetings = leadership opportunity

Meetings are #1 do. Therefore, thing bosses 100% of those EXCELLENCE. ENTHUSIASM. ENGAGEMENT. LEARNING. TEMPO. WORK-OF-ART. DAMN IT. meetings:

“If I had to pick one failing of CEOs, it’s that … —Co-founder of one of the largest investment services firms in the USA/world

“If I had to pick one failing of they don’t read enough. ” CEOs, it’s that …

PLEASE CONSIDER: Multi-month/ continuing Study Group to assess [at a snail’s pace] the impact on day-today affairs of the limitations of judgment implied by … Daniel Kahneman’s Thinking, Fast and Slow

Actor-observer Bias, Ambiguity Effect, Anchoring or Focalism, Attentional Bias, Availability Cascade, Availability Heuristic, Backfire Effect, Bandwagon Effect, Base Rate Fallacy or Base Rate Neglect, Belief Bias, Bias Blind Spot, Bizarreness Effect, Change Bias, Cheerleader Effect, Childhood Amnesia, Choice-supportive Bias, Clustering Illusion, Confirmation Bias, Congruence Bias, Conjunction Fallacy, Conservatism (Bayesian), Conservatism or Regressive Bias, Consistency Bias, Context Effect, Contrast Effect, Cross-race Effect, Cryptomnesia, Curse of Knowledge, Decoy Effect, Defensive Attribution Hypothesis, Denomination Effect, Distinction Bias, Dunning-Kruger Effect, Duration Neglect, Egocentric Bias, Egocentric Memory Bias, Empathy Gap, Endowment Effect, Essentialism, Exaggerated Expectation, Experimenter’s or Expectation Bias, Extrinsic Incentives Bias, Fading Affect Bias, False Consensus Effect, False Memory, Focusing Effect, Forer Effect or Barnum Effect, Framing Effect, Frequency Illusion, Functional Fixedness, Fundamental Attribution Error , Gambler’s Fallacy, Generation or Self-generation Effect, Google Effect, Group Attribution Error, Halo Effect, Hard-easy Effect, Hindsight Bias, Hostile Media Effect, Hot-hand Fallacy, Humor Effect, Hyperbolic Discounting, Identifiable Victim Effect, IKEA Effect, Illusion of Asymmetric Insight, Illusion of Control, Illusion of External Agency, Illusion of Transparency, Illusion of Truth Effect, Illusion of Validity, Illusory Correlation, Illusory Superiority, Impact Bias, Information Bias, In-group Bias, Insensitivity to Sample Size, Irrational Escalation, Just-world Hypothesis or Phenomenon, Lag or Spacing Effect, Less-is-better Effect, Leveling and Sharpening, Levels-of-processing Effect, List-length Effect, Loss Aversion, Ludic Fallacy, Mere Exposure Effect, Misinformation Effect, Modality Effect, Money Illusion, Mood-congruent Memory Bias, Moral Credential Effect, Moral Luck, Naive Cynicism, Negativity Bias, Negativity Effect, Neglect of Probability, Next-in-line Effect, Normalcy Bias, Observation Selection Bias, Observer-expectancy Effect, Omission Bias, Optimism Bias, Ostrich Effect, Outcome Bias, Out-group Homogeneity Bias, Overconfidence Effect, Pareidolia, Part-list Cueing Effect, Peak-end Rule, Persistence, Pessimism Bias, Picture Superiority Effect, Planning Fallacy, Positivity Effect, Post-purchase Rationalization, Primacy, Recency & Serial Position Effects, Processing Difficulty Effect, Pro-innovation Bias, Projection Bias, Pseudocertainty Effect, Reactance, Reactive Devaluation, Recency Illusion, Reminiscence Bump, Restraint Bias, Rhyme as Reason Effect, Risk Compensation or Peltzman Effect, Rosy Retrospection, Selective Perception, Self-relevance Effect, Self-serving Bias, Semmelweis Reflex, Shared Information Bias, Social Comparison Bias, Social Desirability Bias, Source Confusion, Status Quo Bias, Stereotypical Bias, Stereotyping, Subadditivity Effect, Subjective Validation, Suffix Effect, Suggestibility, Survivorship Bias, System Justification, Telescoping Effect, Testing Effect, Time-saving Bias, Tip of the Tongue Phenomenon, Trait Ascription Bias, Ultimate Attribution Error, Unit Bias, Verbatim Effect, Von Restorff Effect, Well-traveled Road Effect, Worse-than-average Effect, Zeigarnik Effect, Zero-risk Bias, Zero-sum Heuristic

1 Mouth, 2 Ears

“The doctor interrupts after …* *Source: Jerome Groopman, How Doctors Think

18 …

18 … seconds!

[An obsession with] Listening is. . . the ultimate mark of Respect Listening is. . . the heart and soul of Engagement. Listening is. . . the heart and soul of Kindness. Listening is. . . the heart and soul of Thoughtfulness. Listening is. . . the basis for true Collaboration. Listening is. . . the basis for true Partnership. Listening is. . . a Team Sport. Listening is. . . a Developable Individual Skill. * (*Though women are far better at it than men. ) Listening is. . . the basis for Community. Listening is. . . the bedrock of Joint Ventures that work. Listening is. . . the bedrock of Joint Ventures that grow. Listening is. . . the core of effective Cross-functional Communication* (*Which is in turn Attribute #1 of organization effectiveness. ) [cont. ] .

[An obsession with] Listening is. . . the ultimate mark of RESPECT. Listening is. . . the heart and soul of Engagement. Listening is. . . the heart and soul of Kindness. Listening is. . . the heart and soul of Thoughtfulness. Listening is. . . the basis for true Collaboration. Listening is. . . the basis for true Partnership. Listening is. . . a Team Sport. Listening is. . . a Developable Individual Skill. Listening is. . . the basis for Community. Listening is. . . the bedrock of Joint Ventures that work. Listening is. . . the bedrock of Joint Ventures that grow. Listening is. . . the core of effective Cross-functional Communication* (*Which is in turn Attribute #1 of organization effectiveness. ) Listening is. . . the engine of superior EXECUTION. Listening is. . . the key to making the Sale. Listening is. . . the key to Keeping the Customer’s Business. Listening is. . . Service. Listening is. . . the engine of Network development. Listening is. . . the engine of Network maintenance. Listening is. . . the engine of Network expansion. Listening is. . . Social Networking’s “secret weapon. ” Listening is. . . Learning. Listening is. . . the sine qua non of Renewal. Listening is. . . the sine qua non of Creativity. Listening is. . . the sine qua non of Innovation. Listening is. . . the core of taking diverse opinions aboard. Listening is. . . Strategy. Listening is. . . Source #1 of “Value-added. ” Listening is. . . Differentiator #1. Listening is. . . Profitable. * (*The “R. O. I. ” from listening is higher than from any other single activity. ) Listening is … the bedrock which underpins a Commitment to EXCELLENCE!

Suggested Core Value #1: “We are Effective Listeners—we treat Listening EXCELLENCE as the Centerpiece of our Commitment to Respect and Engagement and Community and Growth. ”

Business Has to Give People Enriching, Rewarding Lives

1/4, 096: excellencenow. com “Business has to give people enriching, or it's simply not worth doing. ” rewarding lives … —Richard Branson

“You have to treat your employees like customers. ” —Herb Kelleher, upon being asked his “secret to success” Source: Joe Nocera, NYT, “Parting Words of an Airline Pioneer, ” on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots union took out a full-page ad in USA Today thanking HK for all he had done) ; across the way in Dallas, American Airlines’ pilots were picketing AA’s Annual Meeting)

Oath of Office: Managers/Servant Leaders Our goal is to serve our customers brilliantly and profitably over the long haul. Serving our customers brilliantly and profitably over the long haul is a product of brilliantly serving, over the long haul, the people who serve the customer. Hence, our job as leaders—the alpha and the omega and everything in between—is abetting the sustained growth and success and engagement and enthusiasm and commitment to Excellence of those, one at a time, who directly or indirectly serve the ultimate customer. We—leaders of every stripe—are in the “Human Growth and Development and Success and Aspiration to Excellence business. ” “We” [leaders] only grow when “they” [each and every one of our colleagues] are growing. “We” [leaders] only succeed when “they” [each and every one of our colleagues] are succeeding. “We” [leaders] only energetically march toward Excellence when “they” [each and every one of our colleagues] are energetically marching toward Excellence. Period.

“the joy* of work” —John Mackey and Raj Sisoda, Conscious Capitalism: Liberating the Heroic Spirit of Business *See also, Joy Inc. : How We Built a Workplace People Love —Richard Sheridan (Menlo Innovations)

Your principal moral obligation as a leader is to develop the skillset, “soft” and “hard, ” of every one of the people in your charge (temporary as well as semi-permanent) to the maximum extent of your abilities. The good news: This is also the #1 mid- to long-term … profit maximization strategy! CORPORATE MANDATE #1 2014:

st-Line 1 Bosses [Cadre of] = Productivity Asset #1!

If the regimental commander lost most of his 2 nd lieutenants and 1 st lieutenants and captains and If he lost his sergeants it would be a catastrophe. The Army and the majors, it would be a tragedy. Navy are fully aware that success on the battlefield is dependent to an extraordinary degree on its Sergeants and Chief Petty Officers. Does industry have the same awareness?

“People leave managers not companies. ” —Dave Wheeler

Hiring.

“development can help great people be even better— but if I had a dollar to spend, I’d 70 cents spend getting the right person in the door. ” —Paul Russell, Director, Leadership and Development, Google

Training = Investment #1!

In the Army, 3 -star generals worry about training. In most businesses, it's a “ho hum” mid-level staff function.

Gamblin’ Man Bet: >> 5 of 10 CEOs see training as expense rather than investment. Bet: >> 5 of 10 CEOs see training as defense rather than offense. Bet: >> 5 of 10 CEOs see training as “necessary evil” rather than “strategic opportunity. ” Bet: >> 8 of 10 CEOs, in 45 -min “tour d’horizon” of their business, would not mention training.

Evaluating.

EVALUATING #1 PEOPLE = DIFFERENTIATOR Source: Jack Welch, now Jeff Immelt on !!!!) GE’s top strategic skill (

Promoting: 2/year = Legacy.

Promotion Decisions “life and death decisions” Source: Peter Drucker, The Practice of Management

Social Business/ Tech++

Biz 2014: Get Aboard the “S-Train” SM/Social Media. SX/Social e. Xecutives. SE/Social Employees. SO/Social Organization. SB/Social Business.

IBM Social Business Markers/2005 -2012 *433, 000 employees on IBM Connection *26, 000 individual blogs *91, 000 communities *62, 000 wikis *50, 000 IMs/day *200, 000 employees on Facebook *295, 000 employees/800, 000 followers of the brand *35, 000 on Twitter Source: IBM case, in Cheryl Burgess & Mark Burgess, The Social Employee

Marbles, a Ball and Social Employees ay IBM “Picture a ball and a bag of marbles side by side. The two items might have the same volume—that is, if you dropped them into a bucket, they would displace the same amount of water. The difference, however, lies in the surface area, Because a bag of marbles is comprised of several individual pieces, the combined surface area of all the marbles far outstrips the surface area of a single ball. The expanded surface area represents a social brand’s increased diversity. These surfaces connect and interact with each other in unique ways, offering customers and employees alike a variety of paths toward a myriad of solutions. If none of the paths prove to be suitable, social employees can carve out new paths on their own. ” —Ethan Mc. Carty, Director of Enterprise Social Strategy, IBM (from Cheryl Burgess & Mark Burgess, The Social Employee

Seven Characteristics of the Social Employee 1. Engaged 2. Expects Integration of the Personal and Professional 3. Buys Into the Brand’s Story 4. Born Collaborator 5. Listens 6. Customer-Centric 7. Empowered Change Agent Source: Cheryl Burgess & Mark Burgess, The Social Employee

! Excellence

Kevin Roberts’ Credo 1. Ready. Fire! Aim. 2. If it ain’t broke. . . Break it! 3. Hire crazies. 4. Ask dumb questions. 5. Pursue failure. 6. Lead, follow. . . or get out of the way! 7. Spread confusion. 8. Ditch your office. 9. Read odd stuff. 10. AVOID MODERATION!

“The Economy Is Scary, But Smart Companies Can Dominate” “They manage for value—not for EPS. “They keep developing human capital. “They get radically customer-centric. ” Source: Geoff Colvin, Fortune

SEGEW 2014: SERVICE!-ENGAGEMENT!-GROWTH!-EXCELLENCE!-WOW! Employees as 1 st customers Acknowledgement & Respect Commitment to Personal Growth & Training-to-Die-For Engagement Work Worth Doing Peerless 1 st-line Leadership Cadre Committed to Employee Growth MBWA Obsession Seamless Cross-functional Excellence 360 -degree “Social” Engagement Inside & Outside the Firm Co-creation of Everything A Moral Service Ethos (Each other/Vendors/Customers’ Customers/Communities) An Ethos of Helping (“On the Bus” or “Off the Bus”) Scintillating Design—Aesthetics & Functionality—Pervades Every Aspect of the Business (Inside & Outside) Provision of Extraordinary Customer (& Employee) Experiences Obsession With TGRs/Things Gone Right Matchless Quality “Services Added”/Extended-Integrated-Partnered Solutions to Broad Customer Needs Relentless Experimentation (“Bias for Action”/Instant Prototyping/ Celebration of “Excellent Failures”/Transparency/ Pursuit of “Multipliers”) JOY! (In All We Do) GROWTH! (In All We Do) WOW! (In All We Do) EXCELLENCE! (In All We Do)

Antifragile*: Things That Gain From Disorder —Nassim Nicholas Taleb *Not to be confused with … RESILIENCE

“EXPERIMENT FEARLESSLY” Source: Business. Week, “Type A Organization Strategies: How to Hit a Moving Target”— Tactic #1 “RELENTLESS TRIAL AND ERROR” Source: Wall Street Journal, cornerstone of effective approach to “rebalancing” company portfolios in the face of changing and uncertain global economic conditions (11. 08. 10)