Tom Peters Excellence Always Shanghai 25 -27 April 2009

Tom Peters’ Excellence. Always. Shanghai/25 -27 April 2009

NOTE: To appreciate this presentation [and ensure that it is not a mess], you need Microsoft fonts: “Showcard Gothic, ” “Ravie, ” “Chiller” and “Verdana”

AGENDA Part ONE … EXCELLENCE. ALWAYS. /25. 04 Part TWO … INNOVATION IMPERATIVE, the NEXT STEP/26. 04 Part THREE … PEOPLE-PEOPLE. PERIOD. /26 -7. 04 Part FOUR … LEADERSHIP for EXCELLENCE & INNOVATION/27. 04

AGENDA Part ONE … EXCELLENCE. ALWAYS. /25. 04 Part TWO … INNOVATION IMPERATIVE, the NEXT STEP/26. 04 Part THREE … PEOPLE-PEOPLE. PERIOD. /26 -7. 04 Part FOUR … LEADERSHIP for EXCELLENCE & INNOVATION/27. 04

Part TWO

Tom Peters’ Excellence. Always. Innovation. Shanghai/24 -26 April 2009

Slides at … tompeters. com

#1

1/40

Try it. Try it. Screw up. Try it. Try Tr. Try it. Screw it up. it Try it. try it

“We made mistakes, of course. Most of them were omissions we didn’t think of when we initially wrote the software. We fixed them by doing it over and over, again and again. We do the same today. While our 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

“We have a ‘strategic plan. ’ It’s called doing things. ” — Herb Kelleher

“Experiment fearlessly” Source: BW 0821. 06, Type A Organization Strategies/ “How to Hit a Moving Target”— Tactic #1

Culture of Prototyping “Effective prototyping may be the most valuable core competence an innovative organization can hope to have. ” —Michael Schrage

“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

“Skunk. Works”/ “Parallel. Universe” “the 1% solution” Source: Scott Bedbury (Others: 3 M, Google, Shell, NAVFAC)

“Fail. Forward. Fast. ” High Tech CEO, Pennsylvania

“FAIL, FAIL AGAIN. FAIL BETTER. ” —Samuel Beckett

“Reward excellent failures. Punish mediocre successes. ” Phil Daniels, Sydney exec

“The secret of fast progress is inefficiency, fast and furious and numerous failures. ” —Kevin Kelly

“You miss 100% of the shots you never take. ” —Wayne Gretzky

Try it. Try it. Screw up. Try it. Try Tr. Try it. Screw it up. it Try it. try it

Excellence 1982: 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”

#2

Little = BIG

Big carts = 1. 5 X Source: Wal*Mart

Bag sizes = New markets: $B Source: Pepsi. Co

Socks = 10, 000

Round = 2 X/allx

“Paint it white!” — On Hashem Akbari’s [Lawrence Livermore labs] powerful program to significantly reduce greenhouse gas emissions; using conservative reduce 44 billion tons of CO 2 assumptions, it could emissions by cooling buildings, roads, entire cities (The Guardian, 0116. 09)

“Design is everything. Everything is design. ” “We are all designers. ” Inspiration: The Power of Design: A Force for Transforming Everything, Richard Farson

#3

4/40

De-central-iza-tion!

“‘Decentralization’ is not a piece of paper. It’s not me. It’s either in your heart, or not. ” —Brian Joffe/BIDvest

Enemy #1 I. C. D. Inherent/Inevitable/ Immutable Centralist Drift Note 1: Note 2: Jim Burke’s 1 -word vocabulary: “No. ”

NEW DECENTRALIZATION: “Cisco, [CEO John] Chambers argues, is the best possible model for how a global business can operate: as a distributed idea engine where leadership emerges organically, unfettered by a central command. ” —”Revolution in San (Chambers: “We now have a whole pool of talent who can lead these working groups —like mini CEOs and COOs. ”) (Top blog: engineering director 5 levels down) Jose, ” Fast Company, Dec-Jan 08 -09

Ex-ecu-tion!

“Execution is strategy. ” —Fred Malek

“Execution is the job of the business leader. ” —Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done

“Costco figured out the big, simple things and executed with total fanaticism. ” —Charles Munger, Berkshire Hathaway

Ac-counta-bil-ity!

30% MH: 80% CF: (no salesfolk) (salesfolk)

6: 15 A. M.

DECENTRALIZATION. EXECUTION. ACCOUTABILITY. 6: 15 A. M.

Base Case

BIG?

You don’t get better by being bigger. You Dick Kovacevich:

“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 40 years for 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

Forget > “Learn” “The problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out. ” —Dee Hock

“Data drawn from the real world attest to a fact that is beyond Everything in existence tends to deteriorate. ” our control: —Norberto Odebrecht, Education Through Work

#4 Japan #2 T USA #2 T China

#4 Japan #3 USA #2 China #1 Germany

Reason!!! Mittelstand

Or … Goldmann Produktions (11/50%/$5 M/”dip and coat, ” expensive pigments vs “through coloring, ” fades Bekro Chemie)

Jim Penman/ Jim’s Group

Jim’s Mowing Canada Jim’s Mowing UK Jim’s Antennas Jim’s Bookkeeping Jim’s Building Maintenance Jim’s Carpet Cleaning Jim’s Car Cleaning Jim’s Computer Services Jim’s Dog Wash Jim’s Driving School Jim’s Fencing Jim’s Floors Jim’s Painting Jim’s Paving Jim’s Pergolas [gazebos] Jim’s Pool Care Jim’s Pressure Cleaning Jim’s Roofing Jim’s Security Doors Jim’s Trees Jim’s Window Cleaning Jim’s Windscreens Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group

#4

We are the company we keep

“You will become like the five people you associate with the most … this can be either a blessing or a curse. ” —Billy Cox

The “We are what we eat” axiom: At its core, every (!!!) relationship-partnership decision (employee, vendor, customer, etc) is a strategic decision about: “Innovate, ‘Yes’ or ‘No’ ”

Measure “Strangeness”/Portfolio Quality Staff Consultants Vendors Out-sourcing Partners (#, Quality) Innovation Alliance Partners Customers Competitors (who we “benchmark” against) Strategic Initiatives Product Portfolio (Line. Ex v. Leap) IS/IT Projects HQ Location Lunch Mates Language Board

“Don’t benchmark, futuremark!” Impetus: “The future is already here; it’s just not evenly distributed” —William Gibson

CUSTOMERS: “Future-defining customers may account for only 2% to 3% of your total, but they represent a crucial window on the future. ” Adrian Slywotzky, Mercer Consultants

“[CEO A. G. ] Lafley has shifted P&G’s focus on inventing all its own products to others’ inventions at least half the time. developing One successful example, Mr. Clean Magic Eraser, based on a product found in an Osaka market. ” —Fortune

Axiom: Never use a vendor who is not in the top quartile (decile? ) in their industry on R&D spending!* *Inspired by Hummingbird

“The Billion-man Research Team: Companies offering work to online communities are reaping the benefits of ‘crowdsourcing. ’” —Headline, FT, 0110. 07

Rob Mc. Ewen/CEO/ Goldcorp Inc. / Red Lake gold Wikinomics: How Mass Collaboration Changes Everything, Don Tapscott & Anthony Williams Source:

“Diverse groups of problem solvers—groups of people with diverse tools—consistently outperformed groups of the best and the brightest. If I formed two groups, one random (and therefore diverse) and one consisting of the best individual performers, the first group almost always did better. … Diversity trumped ability. ” —Scott Page, The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies Diversity

CM Prof Richard Florida on “Creative “You cannot get a technologically innovative place … unless it’s open to weirdness, eccentricity and difference. ” Capital”: Source: New York Times/06. 01. 2002

“The Creative Age is wide open game. ” a —Richard Florida, The Rise of the Creative Class

94% of loans to … women* *Microlending; “Banker to the poor”; Grameen Bank; Muhammad Yunus; 2006 Nobel Peace Prize winner

10. 6

“The Bottleneck Is at the Top of the Bottle” “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: At the top!” — Gary Hamel/Harvard Business Review

#5

X =XFX* *Excellence = Cross-functional Excellence

Never waste a lunch!

? ? % XF lunches* *Measure!

(Way) Underutilized Lever Space!

Geologists + Geophysicists + A little bit of love = Oil

>100 feet = 100 miles

The “XF-50”: 50 Ways to Enhance Cross-Functional Effectiveness and Deliver Speed, “Service Excellence” and “Value-added Customer ‘Solutions’”* *Entire “XF-50” List is at Appendix ONE

#6

Up, Up the Value-added Ladder.

EXCELLENCE. VALUE-ADDED LADDER. NO LESS THAN “BUSINESS ADVANTAGE. ”

“M” = $0

IB : $55 B* M *Also HP-EDS

Planetary Rainmaker-in-Chief! “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

“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

“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 (E. g. , UPS Logistics manages the logistics of 4. 5 M Ford vehicles, from 21 mfg. sites to 6, 000 NA dealers)

Huge: Customer Satisfaction versus Customer Success

The Value-added Ladder Services Goods Raw Materials (USA, EU) (China, Germany, Japan)

The Value-added Ladder/TRANSFORMATION Customer Success/ Gamechanging Solutions Services Goods Raw Materials

Era #1/Obvious Value: “Our ‘it’ works, is delivered on time” (“Close”) Era #2/Augmented Value: “How our ‘it’ can add value—a ‘useful it’ ” (“Solve”) Era #3/Complex Value Networks: “How our ‘system’ can change you and deliver ‘business advantage’ ” (“Culture. Strategic change”) Source: Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale

Centerpiece: PSF* *Professional Services Firm

Are you the … “Principal Engine of Value Added”

PSF/Professional Service Firm/Beliefs Profession: Calling/Passion to make a difference/Excellence (always) 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”

The quality and quantity and imaginativeness of innovation shall be the same in all functions —e. g. , in HR and Iron Innovation Equality Law: purchasing as much as in marketing or product development.

EXCELLENCE. VALUE-ADDED LADDER. SPELLBINDING EXPERIENCES POWERED BY “SOULFUL” DESIGN.

“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

BEGINS (and ENDS) It in the …

parking lot* *Disney

The case of the 2 -cent candy

TGR [Things Gone WRONG-Things Gone RIGHT]

X O* C *Chief e Xperience Officer

Acquire vs maintain*: 5 X Higher “market share” current customers *Recession goal:

The Value-added Ladder/ MEMORABLE CONNECTIONS Spellbinding Experiences Powered By “Soulful” Design* * Customer Success/ Implemented Gamechanging Solutions Services Goods Raw Materials *Blending Beauty, Usability, Theatricality (Degree: MFA/ Master of Fine Arts, “D-school, ” Cultural Anthropology)

“Design is treated like a religion at BMW. ” —Fortune

All Equal Except … “At Sony we assume that all products of our competitors have basically the same technology, price, performance and features. Design is the only thing that differentiates one product from another in the marketplace. ” —Norio Ohga

“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 meaning of design. Design is the fundamental soul of a man-made creation. ” —Steve Jobs

“With its carefully conceived mix of colors and textures, Starbucks aromas and music, is more indicative of our era than the i. Mac. It is to the Age of Aesthetics what Mc. Donald’s was to the Age of Convenience or Ford was to the Age of Mass Production—the touchstone success story, the exemplar of … the aesthetic imperative. … ‘Every Starbucks store is carefully designed to enhance the quality of everything the customers see, touch, hear, smell or taste, ’ writes CEO Howard Schultz. ” -—Virginia Postrel, The Substance of Style: How the Rise of Aesthetic Value Is Remaking Commerce, Culture and Consciousness

DESIGN is the PRINCIPAL DIFFERENTIATOR between “LOVE” and Axiom: “HATE”!

Message: Men cannot design for women’s needs.

#7

“Forget China, India and the Internet: Economic Growth Is Driven by Women. ” Source: Headline, Economist

“Since 1970, women have held two out of every three new jobs created. ” —FT, 10. 03. 2006

“Women are the majority market” —Fara Warner/The Power of the Purse

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

The Perfect Answer Jill and Jack buy slacks in black…

Cases! Mc. Donald’s (“mom-centered” to “majority consumer”; not via kids) Home Depot (“Do it [everything!] Herself”) P&G (more than “house cleaner”) De. Beers (“right-hand rings”/$4 B) AXA Financial Kodak (women = “emotional centers of the household”) Nike (> jock endorsements; new def sports; majority consumer) Avon Bratz (young girls want “friends, ” not a blond stereotype) Source: Fara Warner/The Power of the Purse

“Women don’t buy They join them. ” brands. EVEolution

2. 6 vs. 21

Age 3 days, baby girls 2 X eye contact. “People powered”: Source: Martha Barletta, Marketing to Women

“Women speak and hear a language of connection and intimacy, and men speak and hear a language of status and independence. Men communicate to obtain information, establish their status, and show independence. Women communicate to create relationships, encourage interaction, and exchange feelings. ” —Judy Rosener, America’s Competitive Secret

“Goldman Sachs in Tokyo has developed an index of 115 companies poised to benefit from women’s increased purchasing power; over the past decade the value of shares in Goldman’s basket has risen by 96%, against Tokyo the stockmarket’s rise of 13%. ” —Economist, April 15

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

10 UNASSAILABLE REASONS WOMEN RULE Women make [all] the financial decisions. Women control [all] the wealth. Women [substantially] outlive men. Women start most of the new businesses. Women’s work force participation rates have soared worldwide. Women are closing in on “same pay for same job. ” Women are penetrating senior ranks rapidly [even if the pace is slow for the corner office per se]. Women’s leadership strengths are exceptionally well aligned with new organizational effectiveness imperatives. Women are better salespersons than men. Women buy [almost] everything—commercial as well as consumer goods. So what exactly is the point of men?

“One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to spend. … This is just the beginning. The phenomenon will only grow as girls prove to be more successful than For a number of observers, we have already entered the age of ‘womenomics, ’ the economy as thought out and practiced by a woman. ” —Aude Zieseniss de Thuin, Financial boys in the school system. Times, 10. 03. 2006

“ ‘Womenomics, ’ the economy as thought out and practiced by a woman. ” —Aude Zieseniss de Thuin, Financial Times, 10. 03. 2006

#8

!!!!!!!!! “People turning 50 today have more than half of their adult life ahead of them. ” —Bill Novelli, 50+: Igniting a Revolution to Reinvent America

7/13

“New Customer Majority” * 44 -65: *45% larger than 18 -43; 60% larger by 2010 Source: Ageless Marketing, David Wolfe & Robert Snyder

“Marketers attempts at reaching those over 50 have been miserably No market’s motivations and needs are so poorly understood. ” unsuccessful. —Peter Francese, founding publisher, American Demographics

“Baby-boomer Women: The Sweetest of Sweet Spots for Marketers” —David Wolfe and Robert Snyder, Ageless Marketing

We are the Aussies & Kiwis & Americans & Canadians. We are the Western Europeans & Japanese. We are the fastest growing, the biggest, the wealthiest, the boldest, the most (yes) ambitious, the most experimental & exploratory , the most different, the most indulgent, the most difficult & demanding, the most service & experience obsessed, the most vigorous, (the least vigorous, ) the most health conscious, the most female, the most profoundly important commercial market in the history of the world we will be the Center of your universe for the next twenty-five years. We —and have arrived!

#9

The Venturesome Economy: How Innovation Sustains Prosperity in a More Connected World By Amar Bhidé

Sustainable Innovation: Systemic. Very complex. The NECESSARY COMBINATION (very dense network) of EVERYTHING from the development of the Basic Science to numerous INTERMEDIATE Stages to Sales Recruiting and Training and Ads. Essential: Clever and numerous AGGRESSIVE CONSUMERS* (“venturesome consumption”). Path to success or failure … UNPREDICTABLE. FYI: The World is NOT FLAT. *From Transistor at Bell Labs to on-line gamers. Source: Amar Bhidé, The Venturesome Economy: How Innovation Sustains Prosperity in a More Connected World

Sustainable Innovation: Systemic. Very complex. The COMBINATION (very dense network) of EVERYTHING Basic Science* from the to Sales Recruiting and Training PIONEER CONSUMERS (“venturesome consumption”). Path to success or failure … UNPREDICTABLE. and Ads. Essential: Clever and numerous *Of modest value [& origin mostly ENTIRE INNOVATION CHAIN is in irrelevant] unless the place and aggressively interacting-competing. Source: Amar Bhidé, The Venturesome Economy: How Innovation Sustains Prosperity in a More Connected World

Sustainable Innovation /“Breakthrough Ideas”: (1) High # of Stages/Stageswithin Stages (1) Importance of Intermediate Stages (3) Engaged Mega-scrum of Users/Consumers as Participative/Decisive “Pull” Mechanism (e. g. , UPS vs. Fed. Ex) Source: Amar Bhidé, The Venturesome Economy: How Innovation Sustains Prosperity in a More Connected World

1913: 32%* 1960: 26% 1980: 22% 2000: 27% 2007: 26% Source: “The Future of American Power, ” Fareed Zakaria, Foreign Affairs, vol 87, no. 3 *U. S. share of world output

#10

Innovation Index: How many of your Top 5 Strategic Initiatives/Key Projects score 8 or higher [out of 10] on a “Weird”/ “Profound”/ “Wow”/“Game- changer” Scale?

Appendix ONE The “XF-50”: 50 Ways to Enhance Cross-Functional Effectiveness and Deliver Speed, “Service Excellence” and “Value-added Customer ‘Solutions’”

1. It’s our organization to make work—or not. It’s not “them, ” the outside world that’s the problem. The enemy is us. Period. 2. Friction-free! Dump 90% of “middle managers”—most are advertent or inadvertent “power freaks. ” We are all—every one of us—in the Friction Removal Business, one moment at a time, now and forevermore. 3. No “stovepipes”! “Stove-piping, ” “Silo-ing” is an Automatic Firing Offense. Period. No appeals. (Within the limits of civility, somewhat “public” firings are not out of the question—that is, make one and all aware why the axe fell. ) 4. Everything on the Web. This helps. A lot. (“Everything” = Big word. ) 5. Open access. All available to all. Transparency, beyond a level that’s “sensible, ” is a de facto imperative in a Burn-the-Silos strategy. 6. Project managers rule!! Project managers running XF (cross-functional) projects are the Elite of the organization, and seen as such and treated as such. (The likes of construction companies have practiced this more or less forever. ) 7. “Value-added Proposition” = Application of integrated resources. (From the entire supply-chain. ) To deliver on our emergent business raison d’etre, and compete with the likes of our Chinese and Indian brethren, we must co-operate with anybody and everybody “ 24/7. ” IBM, UPS and many, many others are selling far more than a product or service that works— the new “it” is pure and simple a product of XF co-operation; “the product is the co-operation” is not much of a stretch.

8. “XF work” is the direct work of leaders! 9. “Integrated solutions” = Our “Culture. ” (Therefore: XF = Our culture. ) 10. Partner with “best-in-class” only. Their pursuit of Excellence helps us get beyond petty bickering. An all-star team has little time for anything other than delivering on the (big) Client promise. 11. All functions are created equal! All functions contribute equally! All = All. 12. All functions are “PSFs, ” Professional Service Firms. “Professionalism” is the watchword—and true Professionalism rise above turf wars. You are your projects, your legacy is your projects—and the legacy will be skimpy indeed unless you pass, with flying colors, the “works well with others” exam! 13. We are all in sales! We all (a-l-l) “sell” those Integrated Client Solutions. Good salespeople don’t blame others for screw-ups—the Client doesn’t care. Good salespeople are “quarterbacks” who make the system workdeliver. 14. We all invest in “wiring” the Client organization—we develop comprehensive relationships in every part (function, level) of the Client’s organization. We pay special attention to the so-called “lower levels, ” short on glamour, long on the ability to make things happen at the “coalface. ” 15. We all “live the Brand”—which is Delivery of Matchless Integrated Solutions which transform the Client’s organization. To “live the brand” is to become a raving fan of XF co-operation.

16. We use the word “partner” until we want to barf! (Words matter! A lot!) 17. We use the word “team” until we want to barf. (Words matter! A lot!) 18. We use the word “us” until we want to barf. (Words matter! A lot!) 19. We obsessively seek Inclusion—and abhor exclusion. We want more people from more places (internal, external—the whole “supply chain”) aboard in order to maximize systemic benefits. 20. Buttons & Badges matter—we work relentlessly at team (XF team) identity and solidarity. (“Corny”? Get over it. ) 21. All (almost all) rewards are team rewards. 22. We keep base pay rather low—and give whopping bonuses for excellent team delivery of “seriously cool” cross-functional Client benefits. 23. WE NEVER BLAME OTHER PARTS OF THE ORGANIZATION FOR SCREWUPS. 24. WE TAKE THE HEAT—THE WHOLE TEAM. (For anything and everything. ) (Losing, like winning, is a team affair. ) 25. “BLAMING” IS AN AUTOMATIC FIRING OFFENSE. 26. “Women rule. ” Women are simply better at the XF communications stuff —less power obsessed, less hierarchically inclined, more group-team oriented.

27. Every member of our team is an honored contributor. “XF project Excellence” is an “all hands” affair. 28. We are our XF Teams! XF project teams are how we get things done. 29. “Wow Projects” rule, large or small—Wow projects demand by definition XF Excellence. 30. We routinely attempt to unearth and then reward “small gestures” of XF co-operation. 31. We invite Functional Bigwigs to our XF project team reviews. 32. We insist on Client team participation—from all functions of the Client organization. 33. An “Open talent market” helps make the projects “silo-free. ” People want in on the project because of the opportunity to do something memorable—no one will tolerate delays based on traditional functional squabbling. 34. Flat! Flat = Flattened Silos. Flat = Excellence based on XF project outcomes, not power-hoarding within functional boundaries. 35. New “C-level”? We more or less need a “C-level” job titled Chief Bullshit Removal Officer. That is, some kind of formal watchdog whose role in life is to make cross-functionality work, and I. D. those who don’t get with the program. 36. Huge (H-U-G-E) co-operation bonuses. Senior team members who conspicuously shine in the “working together” bit are rewarded Big Time. (A million bucks in one case I know—and a non-cooperating very senior was sacked. )

37. Get physical!! “Co-location” is the most powerful “culture changer. Physical X-functional proximity is almost a guarantee (yup!) of remarkably improved co-operation—to aid this one needs flexible workspaces that can be mobilized for a team in a flash. 38. Ad hoc. To improve the new “X-functional Culture, ” little XF teams should be formed on the spot to deal with an urgent issue—they may live for but ten days, but it helps the XF habit, making it normal to be “working the XF way. ” 39. “Deep dip. ” Dive three levels down in the organization to fill a senior role with some one who has been pro-active on the XF dimension. 40. Formal evaluations. Everyone, starting with the receptionist, should have an important XF rating component in their evaluation. 41. Demand XF experience for, especially, senior jobs. The military requires all would-be generals and admirals to have served a full tour in a job whose only goals were cross-functional. Great idea! 42. Early project “management” experience. Within days, literally, of coming aboard folks should be “running” some bit of a project, working with folks from other functions—hence, “all this” becomes as natural as breathing. 43. “Get ’em out with the customer. ” Rarely does the accountant or bench scientist call one the customer. Reverse that. Give everyone more or less regular “customer-facing experiences. ” One learns quickly that the customer is not interested in our in-house turf battles!

44. Put “it” on the–every agenda. XF “issues to be resolved” should be on every agenda—morning project team review, weekly exec team meeting, etc. A “next step” within 24 hours (4? ) ought to be part of the resolution. 45. XF “honest broker” or ombudsman. The ombudsman examines XF “friction events” and acts as Conflict Resolution Counselor. (Perhaps a formal conflict resolution agreement? ) 46. Lock it in! XF co-operation, central to any value-added mission, should be an explicit part of the “Vision Statement. ” 47. Promotions. Every promotion, no exceptions, should put XF Excellence in the top 5 (3? ) evaluation criteria. 48. Pick partners based on their “co-operation proclivity. ” Everyone must be on board if “this thing” is going to work; hence every vendor, among others, should be formally evaluated on their commitment to XF transparency—e. g. , can we access anyone at any level in any function of their organization without bureaucratic barriers? 49. Fire vendors who don’t “get it”—more than “get it, ” welcome “it” with open arms. ” 50. Jaw. Talk XF cooperation-value-added at every opportunity. Become a relentless bore! 51. Excellence! There is a state of XF Excellence per se. Talk about it. Pursue it. Aspire to nothing less.