LONG Tom Peters’ ! RE-IMAGINE EXCELLENCE/2017 Seoul/07 December 2016 (This presentation/10+ years of presentation slides at tompeters. com; also see our annotated 17 -part Master/THE WORKS at excellencenow. com)
China/Foxconn: 1, 000 robots/next 3 years Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew Mc. Afee
“Since 1996, manufacturing employment in China itself has actually fallen 25 percent 30, 000 by an estimated That’s over fewer . Chinese workers in that sector, even while output soared by 70 percent. It’s not that American workers are being replaced by Chinese workers. It’s that both American and Chinese workers are being made more efficient [replaced] by automation. ” —Erik Brynjolfsson and Andrew Mc. Afee, The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies
“Ten Million Jobs at Risk from Advancing Technology: Up to 35 percent of Britain's jobs will be eliminated by new computing and robotics technology over the next 20 years, say Deloitte experts. ” —Headline, Telegraph (UK), 11 November 2014 “Almost half of U. S. jobs are at high risk of computerization over the next 20 years, according to Oxford academics Carl Benedikt Frey and Michael A. Osborne. ” —Harriet Taylor, CNBC, 9 March 2016
“The root of our problem is not that we’re in a Great Recession or a Great Stagnation, but rather that we are in the early Great Restructuring throes of a . Our technologies are racing ahead, but our skills and organizations are lagging behind. ” Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew Mc. Afee
“The median worker is losing the race against the machine. ” * —Erik Brynjolfsson and Andrew Mc. Afee, Race AGAINST the Machine *“Occupations intensive in tasks that can easily be computerized are usually in the middle class. ” (MIT’s David Autor)
“If you think being a ‘professional’ makes your job safe, think again. ” —Robert Reich “The intellectual talents of highly trained professionals are no more protected from automation than is the driver’s left turn. ” — Nicholas Carr, The Glass Cage: Automation and Us
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 bonus: This is also the #1 mid- to long-term … profit maximization strategy! CORPORATE MANDATE #1 2016:
#3: Provide a prideworthy job. * #2: Help people be successful at their current job. ** #1: Help people grow/ prepare for an uncertain future. *** *“Provide a secure job. ”—NOT POSSIBLE IN 2015. **Success is NOT enough, circa 2015. ***Society—and profitability—demands this. (Or should!)
In Good Business, Mihaly Csikszentmihalyi argues persuasively that business has become the center of society. As such, an obligation to community is front & center. Business as societal bedrock, per Csikszentmihalyi, has the RESPONSIBILITY to “SUM OF HUMAN WELL-BEING. ” Business is NOT increase the … “part of the community. ” In terms of how adults IS collectively spend their waking hours: Business the community. And should act accordingly. The (REALLY) good news: Community mindedness is a great way (the BEST way? ) to have spirited/committed/customer-centric work force— and, ultimately, increase (maximize? ) growth and profitability.
TRAINING = INVESTMENT #1: In the Army, 3 -star generals worry about training. In most businesses, it's a “ho-hum” mid-level staff function.
1/4, 096: excellencenow. com “Business has to give people enriching, or it's simply not worth doing. ” rewarding lives … —Richard Branson
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 CORPORATE MANDATE #1 2016: THIS IS ALSO THE #1 MID- TO LONG-TERM … PROFIT MAXIMIZATION STRATEGY! your abilities. The bonus:
BE THE BEST
AND THE WINNERS AREN’T/ARE
“I don’t believe in economies of scale. You don’t get better by being bigger. You get worse. ” —Dick Kovacevich
“Mr. Foster and his Mc. Kinsey colleagues collected detailed performance data stretching back years for 1, 000 found that U. S. companies. 40 They 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
“When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs’ Investment Policy I’M SURE THERE ARE SUCCESS STORIES OUT THERE, BUT AT THIS MOMENT I DRAW A BLANK. ” Committee, answered: M & A success rate as measured by adding value to the acquirer: 15% Source: Mark Sirower, The Synergy Trap
AND THE WINNERS AREN’T/ARE
Retail Superstars: Inside the 25 Best Independent Stores in America —by George Whalin
JUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OHIO: ‘shoppertainment, ’ 1, 600 1, 400 12, 000 $8 -$8, 000 4, 000 “An adventure in begins in the parking lot and goes on to varieties of hot sauce—not to mention from cheeses and wines priced a bottle; all this is brought to you by vendors. Customers from every corner of the globe. ” Retail Superstars: Inside the 25 Best Independent Stores in America Source: George Whalin,
“AMERICA’S BEST RESTROOM” —Sixth Annual competition sponsored by Cintas Corporation, a supplier of restroom cleaning and hygiene products
“BE THE BEST. IT’S THE ONLY MARKET THAT’S NOT CROWDED. ” From: Retail Superstars: Inside the 25 Best Independent Stores in America, George Whalin
Commerce Bank*/Metro Bank: Get ‘Em Away From the ATM and Into the Branches: 7 X. 7: 30 A-8: 00 P. Fri/12 A. 7: 30 AM = 7: 15 AM. 8: 00 PM = 8: 15 PM. (2, 000+++ dog biscuits) *to TD Bank fpr $8. 5 B Source: Vernon Hill, Fans, Not Customers, How to Create Growth Companies in a No Growth World
The Commerce/Metro Bank Model “COST CUTTING IS A DEATH SPIRAL. ” Source: Vernon Hill, Fans! Not customers. How to Create Growth companies in a No Growth World
The Commerce/Metro Bank Model “Are you going to cost cut your way to prosperity? Or … Are you going to spend your way to prosperity? ” Source: Vernon Hill, Fans! Not customers. How to Create Growth companies in a No Growth World
The Commerce/Metro Bank Model “OVER-INVEST IN OUR PEOPLE, OVER-INVEST IN OUR FACILITIES. ” Source: Vernon Hill, Fans! Not customers. How to Create Growth companies in a No Growth World
MITTELSTAND* *“agile creatures darting between the legs of the multinational monsters” Bloomberg Business. Week ( )
Hidden Champions* of the 21 st Century: Success Secrets of Unknown World Market Leaders/ Hermann Simon (*1, 2, or 3 in world market; <$4 B; low public awareness) Baader (Iceland/80% fishprocessing systems) Gallagher (NZ/electric fences) W. E. T. (heated car seat tech) Gerriets (theater curtains and stage equipment) Electro-Nite (sensors for the steel industry) Essel Propack (India/tooth paste tubes) SGS (product auditing and certification) DELO (speciality adhesives) Amorim (Portugal/cork products) EOS (laser sintering) Beluga (heavy-lift shipping) Omicron (tunnel-grid microscopy) Universo (wristwatch hands) Dickson Constant (technical textiles) O. C. Tanner (employee recognition/$400 M) Hoeganaes (powder metallurgy supplies)
Michael Raynor and Mumtaz Ahmed: THE THREE RULES: How Exceptional Companies Think*: 1. Better before cheaper. 2. Revenue before cost. 3. There are no other rules. (*From a database of over 25, 000 companies from hundreds of industries covering 45 years, they uncovered 344 companies that qualified as statistically “exceptional. ”) Jeff Colvin, Fortune: “The Economy Is Scary … But Smart Companies Can Dominate”: They manage for value—not for EPS. They get radically customer-centric. THEY KEEP DEVELOPING HUMAN CAPITAL.
“Wicked problems”
VALUE-ADDED
TGRs & the “ 8/80” Fiasco
Customers describing their service experience as “superior”: 8% Companies describing the service experience they provide as “superior”: 80% Bain & Company survey of 362 companies —Source: , reported in John Di. Julius, What's the Secret to Providing a World-class Customer Experience?
<TGW <TG and … >TGR (Things Gone WRONG-Things Gone RIGHT)
“May I clean your glasses, sir? ” “May I help you down the jetway, ma’am. ”
“Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart. ” —Henry Clay "Let's not forget that small emotions are the great captains of our lives. " –—van Gogh
TGRs+ V)BTs L( (Little VERY Big Things)
Big carts = 1. 5 X Source: Walmart
Las Vegas Casino/2 X: slightly curved “When Friedman the right angle of an entrance corridor to one property, he was ‘amazed at the magnitude of change in pedestrian behavior’—the percentage who one-third to nearly two-thirds. ” entered increased from —Natasha Dow Schull, Addiction By Design: Machine Gambling in Las Vegas
! 10 August 2011
Design RULES! APPLE market cap > Exxon Mobil* *10 August 2011
“We don’t have a good language to talk about this kind of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the DESIGN IS THE FUNDAMENTAL SOUL OF A MANMADE CREATION. ” meaning of design. —Steve Jobs
“He said for him the craft of building a boat was like a religion. It wasn’t enough to master the technical details of it. You had to give yourself up to it spiritually; you had to surrender yourself absolutely to it. When you were done and walked away, you had to feel that you had left a piece of yourself behind in you forever, a bit of your heart. ” —On the world’s premier racing shell builder, George Yeoman Pocock, in Daniel Brown, THE BOYS IN THE BOAT: Nine Americans and Their Epic Quest for Gold at the 1936 Berlin Olympics
Hypothesis: Men cannot design for women’s !!? ? needs
Women BUY (Everything) !
W > 2 X (C + I) = $28 TRILLION “Forget CHINA, INDIA and the INTERNET: Economic Growth Is Driven by WOMEN. ” Source: Headline, Economist
“Women are THE majority market” —Fara Warner/The Power of the Purse
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
MOST SIGNIFICANT VARIABLE in EVERY “The sales situation is the GENDER of the buyer, and more importantly, how the salesperson communicates to the buyer’s gender. ” —Jeffery Tobias Halter, Selling to Men, Selling to Women
2. 6 vs. 21 “Women don’t ‘buy’ brands. They ‘join’ them. ” —Faith Popcorn, EVEolution
Can you pass the … “Squint test” ?
We (old folks) Have the (all) $$$$$$
44 -65: “NEW CUSTOMER MAJORITY” Source: Ageless Marketing, David Wolfe & Robert Snyder
50@50: “PEOPLE TURNING 50 TODAY HAVE MORE THAN HALF OF THEIR ADULT LIFE AHEAD OF THEM. ” —Bill Novelli, 50+: IGNITING A REVOLUTION TO REINVENT AMERICA
>50 50% spending 10% marketing budgets
Value-Added on Steroids: The (ENORMOUS) (UBIQUITOUS) “Services Added” Opportunity
“Rolls-Royce now earns MORE from tasks such as managing clients’ overall procurement strategies and maintaining aerospace engines it sells than it does from making them. ” —Economist
PS U to
UPS = United Problem Solvers
Training Inc. , a 14 -person “business unit”* in a 50 -person HR department in a $200 M division in a $3 B corporation—aiming for Excellence & WOW & Transformational Client Support! *PSF/ Professional Service Firm (See my … Professional Service Firm 50: Fifty Ways to Transform Your “Department” Into A Professional Service Firm Whose Trademarks Are Passion and Innovation. )
The Professional Service Firm 50: Fifty Ways to Transform Your “Department” into a Professional Service Firm Whose Trademarks are Passion and Innovation!
Social Business/ Customer Engagement/ Customer Control/
Welcome to the Age of Social Media “The customer is in complete control of communication. ” “What used to be “word of mouth” is now “word of mouse. ” You are either creating brand ambassadors or brand terrorists doing brand assassination. ” “It takes 20 years to build a reputation and 5 minutes to ruin it. ” Source: John Di. Julius, The Customer Service Revolution
“I would rather engage in a Twitter conversation with a single customer than see our company attempt to attract the attention of millions in a coveted Super Bowl commercial. Why? Because having people discuss your brand directly with you, actually connecting one-to-one, is far more valuable—not to mention far cheaper!. … “Consumers want to discuss what they like, the companies they support, and the organizations and leaders they resent. They want a community. They want to be heard. “[I]f we engage employees, customers, and prospective customers in meaningful dialogue about their lives, challenges, interests, and concerns, we can build a community of trust, loyalty, and—possibly over time—help them become advocates and champions for the brand. ” Tangerine —Peter Aceto, CEO, (from the Foreword to A World Gone Social, by Ted Coine & Mark Babbit) (FYI: See Peter Aceto’s book Weology. )
“Amy Howell [social marketer extraordinaire, ignites epidemics. In a good way, of course. Epidemics of excitement. Epidemics of business connections. Epidemics of influence. ” founder of Howell Marketing] —Mark Schaeffer, ROI/Return on Influence: The Revolutionary Power of Klout, Social Scoring, and Influence Marketing
Going “Social”: Location and Size Independent “Today, despite the fact that we’re just a little swimming pool company in Virginia, we have the most trafficked swimming pool website in the world. Five years ago, if you’d asked me and my business partners what we do, the answer would have been simple, ‘We build in-ground ‘We are the best teachers … in the world … on the fiberglass swimming pools. ’ Now we say, subject of fiberglass swimming pools, and we also happen to build them. ’” —Jay Baer, Youtility: Why Smart Marketing Is About Help, Not Hype
(BIG) Data = ! (BIG) $$$
“Caesars’ Entertainment have bet their future on harvesting personal data rather than developing the fanciest properties. ” —Adam Tanner, What Stays in Vegas: The World of Personal Data—Lifeblood of Big Business—and the End of Privacy as We Know it
Persado (vs. copywriter): emotion words, product characteristics, “call to action, ” position of text, images Up To $250 To Spend On All Ships In All Destinations. 2 Days Left (1. 3%) vs. No kidding! You Qualify to Experience An Incredible Vacation With Us : -) (4. 1) “A creative person is good but random. We’ve taken the randomness out by building an ontology of language” —Lawrence Whittle, head of sales Source: Wall Street Journal/ 0825. 14/ “It’s Finally Time to Take AI Seriously”
Io. E / Internet of Everything
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!)
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 safel y 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 verif y 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
2016: GE goes ! to Boston
INNOVATION
50: INNOVATION/Lesson WTTMTW
WHOEVER TRIES THE MOST THINGS WINS
1. A Bias for Action 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
“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
“FAIL. FORWARD. FAST. ” —High Tech CEO, Pennsylvania “FAIL FASTER. SUCCEED SOONER. ” —David Kelley/IDEO “MOVE FAST. BREAK THINGS. ” —Facebook “REWARD EXCELLENT FAILURES. PUNISH MEDIOCRE SUCCESSES. ” —Phil Daniels, Sydney exec “IF THINGS SEEM UNDER CONTROL, YOU’RE JUST NOT GOING FAST ENOUGH. ” —Mario Andretti, race driver “I’M NOT COMFORTABLE UNLESS I’M UNCOMFORTABLE. ” —Jay Chiat “IF IT WORKS, IT’S OBSOLETE. ” —Marshall Mc. Luhan
WTTMTAMTMMTFW
WHOEVER TRIES THE MOST THINGS AND MAKES THE MOST MISTAKES THE FASTEST WINS
“What really matters is that companies that don’t continue to COMPANIES THAT DON’T experiment— EMBRACE FAILURE — eventually get in a desperate position, where the only thing they can do is make a ‘Hail Mary’ bet at the end. ” —Jeff Bezos
“The Silicon Valley of today is built less atop the spires of earlier triumphs than upon the RUBBLE OF EARLIER DEBACLES. ” —Paul Saffo “The secret of fast progress is INEFFICIENCY, FAST AND FURIOUS AND NUMEROUS FAILURES. ” —Kevin Kelly “The essence of capitalism is ENCOURAGING FAILURE, not rewarding success. ” —Nassim Nicholas Taleb
Bach “The difference between and his forgotten peers isn’t necessarily that he had a better ratio of hits to misses. The difference is that the mediocre might have a dozen ideas, while Bach, in his lifetime, created more than a thousand fullfledged musical compositions. A genius is a genius, psychologist Paul Simonton maintains, because he can put together such a staggering number of insights, ideas, theories, random observations, and unexpected connections that he almost inevitably ends ‘Quality, ’ ‘is a probabilistic function of quantity. ’” up with something great. Simonton writes, —Malcolm Gladwell, “Creation Myth, ” New Yorker
Case Study #1: Burt Rutan
“What are Rutan’s management rules? He insists he doesn’t have any. ‘I don’t like rules, ’ he says. ‘Things are so easy to change if you don’t write them down. ’ Rutan feels good management works in much the same way Instead of trying to figure out the best way to do something and sticking to it, just try out an approach and keep fixing it. ” good aircraft design does: —Eric Abrahamson & David Freedman, A Perfect Mess: The Hidden Benefits of Disorder “Scaled Composites has rolled out 26 new types of aircraft in 30 years, at a time when giant aerospace companies struggle to get a single new aircraft out in a decade. ”
“One Rutan principle is not to worry so much about the formal background of the engineers he hires or to look for the sorts of specialties normally sought after by aerospace companies. Instead, he looks for people who share his passion for aircraft design and who can work on anything from a fuselage to a door handle or are willing to learn how. He then gives those people free rein. ” —Eric Abrahamson & David Freedman, Chapter 8, “Messy Leadership, ” A Perfect Mess: The Hidden Benefits of Disorder
“A Rutan principle is that it’s useful to have everyone questioning everything the company does all the time, and especially have people questioning their own work. Rutan makes sure that when employees point out their mistakes, they’re applauded rather than reprimanded. ” —Eric Abrahamson & David Freedman, Chapter 8, “Messy Leadership, ” A Perfect Mess: The Hidden Benefits of Disorder
Bert Rutan’s No Rules “Rules” *Get going, now; fix it after you’ve gotten started. *Forget “best, ” forget rules—just run like mad and adjust fast. *People with passion and breadth—given freedom from Day #1 to try any-damnthing. (Specialism secondary. ) *Everyone questions everything (and everyone) all the time. *Applaud mistakes—AND the person who made them.
Case Study #2: Soichiro Honda/ Honda
![Rule of 99: “ ‘Success, ’ [Soichiro] Honda said, ‘can only be achieved through](https://present5.com/presentation/728a584fe4901be5883fd63542cd1d46/image-92.jpg "Rule of 99: “ ‘Success, ’ [Soichiro] Honda said, ‘can only be achieved through")
Rule of 99: “ ‘Success, ’ [Soichiro] Honda said, ‘can only be achieved through repeated failure and introspection. Success represents one percent of your work, which results only from the ninety-nine percent that is called failure. ’ ” —Jeffrey Rothfeder, Driving Honda: Inside the World’s Most Innovative Car Company
“Asked for the most important attribute that an ideal Honda applicant should have, [Soichiro Honda] noted that ‘people who had been in trouble. ’ ” he preferred “Honda believed genius arose from idiosyncrasy, ‘Non-conformity is essential, ’ he told his workers. ’” Source: Jeffrey Rothfeder, Driving Honda: Inside the World’s Most Innovative Car Company
![“[Mr. Honda] encouraged the board to authorize spinning off the R&D division into an](https://present5.com/presentation/728a584fe4901be5883fd63542cd1d46/image-94.jpg "“[Mr. Honda] encouraged the board to authorize spinning off the R&D division into an")
“[Mr. Honda] encouraged the board to authorize spinning off the R&D division into an entirely separate and independent he gave the new unit total autonomy to develop its own research agenda and strategic direction. ” To further ensure that R&D had few constraints, he eliminated rank among the engineers, assuming that a mostly flat organization would encourage engineers to try out new ideas without fear of being rebuffed. ‘Within Honda R&D, we have an expression that subsidiary of Honda Motor, and all engineers are equal in the presence of technology. ’” Source: Jeffrey Rothfeder, Driving Honda: Inside the World’s Most Innovative Car Company
![“ ‘I [Soichiro Irimajiri, head of Honda USA] will now imitate Toyota Man, ’](https://present5.com/presentation/728a584fe4901be5883fd63542cd1d46/image-95.jpg "“ ‘I [Soichiro Irimajiri, head of Honda USA] will now imitate Toyota Man, ’")
“ ‘I [Soichiro Irimajiri, head of Honda USA] will now imitate Toyota Man, ’ at which point Irimajiri puts on blinders and then proceeds to walk straight into a wall and fall down, ‘very good at straight line, no peripheral vision. … Now Honda Man, a guerilla fighter, Honda Man loves chaos. Toyota Man hates, hates chaos. ’ ” Source: Jeffrey Rothfeder, Driving Honda: Inside the World’s Most Innovative Car Company
The Honda Way *Individual responsibility over corporate mandates *A flat organization *Autonomous and ad hoc design, development and manufacturing teams that are nonetheless continuously accountable to one another *Perpetual change as working medium *Unyielding cynicism about what is believed to be truth Source: Jeffrey Rothfeder, Driving Honda: Inside the World’s Most Innovative Car Company
CREATING A “TRY IT” “CULTURE”: “ 100% MAD SCIENTISTS AROUND HERE”
“Try It” Culture “Experiment fearlessly” (Bus. Week/Innovators’ #1 attribute) It’s all about attitude! One Big Innovation Lab! Accessible micro-experiment budget! Hyper-quick approval process! Hyper-quick prototyping! (Measure “mean time to prototype”) Mini-project teams born in a flash! Do “everything at once” (“Let 1, 000 flowers bloom”) (Boss as Gardener-in-Chief? )
“Try it” Culture No “bad ideas” except inaction Transparency/Publish everything “Get it right the 79 th time” Reward clever/excellent failures Celebrate constantly!/ Wee rewards!/Recognition!!!/ “Mad scientist club”! Master “nudgery” (Little BIG Things) Encourage/Reward cross-functional excellence (A special category!)
“You can’t be a serious innovator unless and until you are ready, willing and able to seriously play. ‘Serious play’ is not an oxymoron; it is the essence of innovation. ” —Michael Schrage, Serious Play
Mc. Kinsey: Culture > Strategy “What matters most to a company over time? Strategy or culture? ” Wall Street Journal, 0910. 13, interview: Dominic Barton, Managing Director, Mc. Kinsey & Co. : “Culture. ”
We Are What We Eat. We Are Who We Spend Time With.
Diversity: “IT IS HARDLY POSSIBLE TO OVERRATE THE VALUE OF PLACING HUMAN BEINGS IN CONTACT WITH PERSONS DIS-SIMILAR TO THEMSELVES, AND WITH MODES OF THOUGHT AND ACTION UNLIKE THOSE WITH WHICH THEY ARE FAMILIAR. SUCH COMMUNICATION HAS ALWAYS BEEN, AND IS PECULIARLY IN THE PRESENT AGE, ONE OF THE PRIMARY SOURCES OF PROGRESS. ” —John Stuart Mill (1806 -1873)
The “We are what we eat”/ “We are who we hang out with” every !!! Axiom: At its core, ( ) relationship-partnership decision (employee, vendor, customer, etc. , strategic etc. ) is a decision about: “Innovate, ‘Yes’ or ‘No’ ”
Board Fit for the Times
Your “spend time with” “portfolio” can/should be as carefully concocted/ managed/measured as your IS strategic plan—it your de facto strategic plan!
“The Bottleneck is at the … “Where are you likely to find people with the least diversity of experience, the largest investment in the past, and the greatest reverence for industry dogma … Top of the Bottle” — Gary Hamel/Harvard Business Review
10 -Person Board of Directors Fit for the Age/2017 **At least two members under age 30. (Youth must be served/guide us at-the-top circa 2017—this is rare!!) **At least three women. (Boards with F-M balance lead to very high relative performance. ) **One IT/Data Analytics Superstar. (Not an “IT representative, ” but a Certified Goddess or God from the likes of Google. ) **One or two entrepreneurs—and perhaps a VC. (The entrepreneurial bent must directly infiltrate the board. ) **One person of stature with a “weird” background—artist, musician, shaman, etc. (We need regular uncomfortable oddball challenges. ) **A certified “design guru. ” (Design presence at Board level is simply a must in my scheme of things. ) **No more than one-two over 60. (Too many Oldie Boards! Stop. NOW. ) **No more than three with MBAs. (Why? The necessity of moving beyond the emphases of the MBA-standard-predictable-linearanalytic-certified-vanilla model. ) (Partial inspiration for this: Cybernetics pioneer W. Ross Ashby’s “Law of Requisite Variety. ” The diversity of the Board should more or less match [be consistent with] the diversity [madness/2017] of the context/environment. )
Cx. Q
Cx. Q /Connectional Intelligence: “Connectional Intelligence is the ability to combine the world’s diversity of people, networks, disciplines and resources, forging connections that create value, meaning, and breakthrough results. ” Source: Erica Dhawan and Saj-Nicole Joni, Get BIG Things Done: The Power of Connectional Intelligence* (*Superb book!)
“The Billion-man Research Team: Companies offering work to online communities are reaping the benefits of crowdsourcing. ” —Headline, FT
“Skunkworks”
“Skunkworks”* “Skunk Camps” “Skunking” *“Skunkworks” (my preference) or “Skunk Works” (Lockheed)
“Venture” fund/1% “Magic”: Gerstner/Amex, Dow/Marriott, Grove/Intel, Du. Pont/AI, Bedbury/Starbucks, etc.
XFX = #1* *Cross-Functional e. Xcellence
NEVER WASTE A LUNCH!
% XF lunches* *Measure! Monthly! Part of evaluation!
“Allied commands depend on mutual confidence and this confidence is gained, above all development of friendships. ” through the —General D. D. Eisenhower, Armchair General* *“Perhaps his most outstanding ability [at West Point] he made friends and earned the trust of fellow cadets who came from widely varied backgrounds; it was a quality that would pay was the ease with which great dividends during his future coalition command. ”
XFX/Typical Social Accelerators 1. EVERYONE’s (more or less) JOB #1: Make friends in other functions! (Purposefully. Consistently. Measurably. ) 2. “Do lunch” with people in other functions!! Frequently!! (Minimum 10% to 25% for everyone? Measured. ) 3. Ask peers in other functions for references so you can become conversant in their world. (It’s one helluva sign of. . . GIVE-A-DAMNism. ) 4. Religiously invite counterparts in other functions to your team meetings. Ask them to present “cool stuff” from “their world” to your group. (Useful. Mark of respect. ) 5. PROACTIVELY SEEK EXAMPLES OF “TINY” ACTS OF “XFX” TO ACKNOWLEDGE— PRIVATELY AND PUBLICALLY. (Bosses: ONCE A DAY … make a short call or visit or send an email of “Thanks” for some sort of XFX gesture by your folks and some other function’s folks. ) 6. Present counterparts in other functions awards for service to your group. Tiny awards at least weekly; and an “Annual All-Star Supporters (from other groups) Banquet” modeled after superstar salesperson banquets.
PEOPLE
Putting People (REALLY) First
“PEOPLE BEFORE STRATEGY” —Lead article, Harvard Business Review. July-August 2015, by Ram Charan, Dominic Barton, and Dennis Carey
“You have to treat your employees like customers. ” —Herb Kelleher “What employees experience, Customers will. The best YOUR CUSTOMERS WILL NEVER BE ANY HAPPIER THAN YOUR EMPLOYEES. ” marketing is happy, engaged employees. —John Di. Julius, The Customer Service Revolution: If you want staff to give great service, give great service to staff. ” —Ari Weinzweig, Zingerman’s
1996 -2014/Twelve companies have been among the “ 100 best to work for” in the USA every year, for all 16 years of the list’s existence; along the way, they’ve added/ 341, 567 new jobs, or job growth of +172%: Publix Whole Foods Wegmans Nordstrom Cisco Systems Marriott REI Goldman Sachs Four Seasons SAS Institute W. L. Gore TDIndustries Source: Fortune/ “The 100 Best Companies to Work For”/0315. 15
“In a world where customers wake up every morning asking, ‘What’s new, what’s different, what’s amazing? ’ success depends on a company’s ability to unleash initiative, imagination and passion of employees at all levels —and this can only happen if all those folks are connected heart and soul to their work [their ‘calling’], their company and their mission. ” —John Mackey and Raj Sisodia, Conscious Capitalism: Liberating the Heroic Spirit of Business
Training = Investment 1! #
Container Store 270/<10 2 X
st-Line 1 Leaders
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 majors, it would be a tragedy. the 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?
Employee retention & satisfaction: “Overwhelmingly based on the first-line manager!” —Marcus Buckingham/Curt Coffman, First, Break All the Rules “People leave managers not companies. ” —Dave Wheeler
! Women Rule
For One (BIG) Thing … “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 … 56% higher. ” Source: Nicholas Kristof, “Twitter, Women, and Power, ” NYTimes, 1024. 13
“Women are rated higher in fully 12 of the 16 competencies that go into outstanding leadership. And two of the traits where women outscored men to the highest degree — taking initiative and driving for results — have long been thought of as particularly male strengths. ” —Harvard Business Review/2014
“In my experience, women make much better executives than men. ” —Kip Tindell, CEO, Container Store (#1 “Best Companies to Work For in America”) “Research suggests that to succeed, start by promoting women. ” [by Mc. Kinsey & Co. ] —Nicholas Kristof, NYTimes
LEADERSHIP: SOME TACTICS
MBWA 25* *Managing by Wandering Around
MBWA (Managing By Wandering Around)
“I’m always stopping by our at least a week. stores— 25 I’m also in other places: Home Depot, Whole Foods, Crate & Barrel. I try to be a sponge to pick up as much as I can. ” —Howard Schultz Source: Fortune, “Secrets of Greatness”
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. )
Part ONE: LISTEN* (pp 11 -116, of 364) *“The key to every one of our [eight] leadership attributes was the vital importance of a leader’s ability to listen. ” (One of Branson’s personal keys to listening is notetaking—he has hundreds of notebooks. ) Source: Richard Branson, The Virgin Way: How to Listen, Learn, Laugh, and Lead
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. ”
“The best way to persuade someone is with your ears. ” —Dean Rusk, former U. S. Secretary of State
“If I had to #1 pick the failing of CEOs, it’s that …
“If I had to pick one failing of they don’t read enough. ” CEOs, it’s that …
! Acknowledgement
“The deepest urge in human nature is the desire to be important. ” —John Dewey “The deepest principle in human nature is the craving to be appreciated. ” —William James
“Employees who don't feel significant rarely make significant contributions. ” —Mark Sanborn
ACKNOWLEDGEMENT: THE FOUR MOST IMPORTANT WORDS IN ANY ORGANIZATION ARE … “WHAT DO YOU THINK? ” Source: courtesy Dave Wheeler, posted at tompeters. com
30, 000
“THANK YOU”
CEO Doug Conant 30, 000 handwritten ‘Thank sent you’ notes to employees during the 10 years he ran Campbell Soup. [approx 10/day] Source: Bloomberg Business. Week
“Little” >> “Big”
$115, 000 to $35, 000
“I’M SORRY” **********
“I regard apologizing as the most magical, healing, restorative gesture human beings can make. It is the centerpiece of my work with executives who want to get better. ” —Marshall Goldsmith, What Got You Here Won’t Get You There: How Successful People Become Even More Successful.
THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM. * PROBLEM *PERCEPTION IS ALL THERE IS!
Relationships (of all varieties): THERE ONCE THREE -MINUTE PHONE CALL WOULD HAVE AVOIDED WAS A TIME WHEN A SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE. * *Divorce, loss of a BILLION $$$ aircraft sale, etc.
Toro, the lawn mower folks, reduced the average cost of settling a claim from With a new and forthcoming policy on apologies … $115, 000 in 1991 to $35, 000 in 2008— and the company hasn’t been to trial in the last 15 years! The VA hospital in Lexington, Massachusetts, developed an approach, totally uncharacteristic In 2000, the systemic mean VA hospital malpractice settlement in healthcare, to apologizing for errors—even when no patient request or claim was made. $413, 000; the throughout the United States was Lexington VA hospital settlement number was $36, 000 Source: John Kador, —and there were far fewer patient claims to begin with. ) Effective Apology
CULTURE: IT IS THE GAME
“What matters most to a company over time? Strategy or culture? WSJ/0910. 13: Dominic Barton, Managing Director, Mc. Kinsey & Co. : “Culture. ”
“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 Yet I came to see in my time at IBM that culture isn’t just one aspect of the is very, very hard. game —IT IS THE GAME. ” —Lou Gerstner, Who Says Elephants Can’t Dance
Hard Soft (numbers/plans) is Soft. is Hard. (people/relationships/culture)
RULE 2016: AVOID MODERATION
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!
“INSANELY GREAT” STEVE JOBS “RADICALLY THRILLING” BMW “ASTONISH ME” SERGEI DIAGHLEV, TO A LEAD DANCER “BUILD SOMETHING GREAT” HIROSHI YAMAUCHI, NINTENDO, TO A SENIOR GAME DESIGNER “MAKE IT IMMORTAL” DAVID OGILVY, TO A COPYWRITER.
Execution
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. ”
“BE THE BEST. IT’S THE ONLY MARKET THAT’S NOT CROWDED. ”
!
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