Transcript to long-term

LONG
Tom Peters’
!
RE-IMAGINE
EXCELLENCE/2017
Seoul/07 December 2016
tompeters.com;
also see our annotated 17-part Master/THE WORKS at excellencenow.com)
(This presentation/10+ years of presentation slides at
China/Foxconn:
1,000,000
robots/next 3 years
Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfee
“Since 1996, manufacturing employment in
China itself has actually
fallen
25 percent.
That’s over 30,000,000
fewer Chinese workers in that sector,
by an estimated
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 McAfee,
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 McAfee
“The median
worker is losing
the race against
the machine.” *
—Erik Brynjolfsson and Andrew McAfee,
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 McKinsey 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:
7X.
7:30A-8:00P. Fri/12A.
7:30AM = 7:15AM.
8:00PM = 8:15PM.
(2,000,000+++ dog biscuits)
*to TD Bank fpr $8.5B
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: Source: 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: 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 BusinessWeek
(
)
Hidden Champions* of the 21st Century: Success
Secrets of Unknown World Market Leaders/
Hermann Simon
(*1, 2, or 3 in world market; <$4B; 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/$400M)
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 DiJulius, What's the Secret to Providing a World-class Customer Experience?
<TGW
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+
L(
)BTs
(Little VERY Big Things)
Big carts =
Source: Walmart
Las Vegas Casino/2X:
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 > 2X (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>
2X (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)
$$$$$$
“NEW
CUSTOMER
MAJORITY”
44-65:
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
UPS
U
to
UPS = United
Problem Solvers
Training Inc. , a 14-person
“business unit”* in a 50-person HR
department in a $200M division in
a $3B 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 Firm50: 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 DiJulius, 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”
/
Internet of Everything
IoT/The Internet of Things
IoE/The Internet of
Everything
M2M/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 IoT could be applicable to
$82 TRILLION
of output
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
2016:
GE goes
to Boston
!
INNOVATION
50:
INNOVATION/Lesson
WTTMTW
WHOEVER
TRIES
THE
MOST
THINGS
WINS
1.
2.
3.
4.
5.
6.
7.
8.
A Bias for Action
Close to the Customer
Autonomy and Entrepreneurship
Productivity Through People
Hands On, Value-Driven
Stick to the Knitting
Simple Form, Lean Staff
Simultaneous Loose-Tight Properties
“EXPERIMENT
FEARLESSLY”
TACTIC #1
Source: BusinessWeek, “Type A Organization Strategies: How to Hit a Moving Target”—
“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 McLuhan
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
“The difference between
Bach
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 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 entirely separate and independent
he gave the new
unit total autonomy to develop its own
research agenda and strategic
direction.”
subsidiary of Honda Motor, and
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
To further ensure that R&D had few constraints,
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,’ 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
Now Honda Man, a
guerilla fighter, Honda Man
loves loves chaos. Toyota Man
hates, hates chaos.’ ”
vision. …
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”
(BusWeek/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 79th 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
McKinsey: Culture > Strategy
“What
matters most to a company over
time? Strategy or culture?”
Wall Street Journal, 0910.13, interview:
Dominic Barton, Managing Director, McKinsey & Co.:
“Culture.”
We Are What
We Eat.
We Are Who We
Spend Time With.
“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)
Diversity:
The “We are what we eat”/
“We are who we hang out with”
Axiom: At its core,
every (!!!)
relationship-partnership decision
(employee, vendor, customer, etc.,
etc.) is a
strategic
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.)
x
CxQ
/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”
“Skunks”
“Skunking”
*“Skunkworks” (my preference) or “Skunk Works” (Lockheed)
“Venture”
fund/1%
“Magic”:
Gerstner/Amex, Dow/Marriott,
Grove/Intel, DuPont/AI,
Bedbury/Starbucks, etc.
XFX =
#1*
*Cross-Functional
eXcellence
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.)
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.)
5.
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 DiJulius, 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
success
depends on a company’s
ability to unleash initiative,
imagination and passion of
employees at all levels —and this
different, what’s amazing?’
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
2X
st
1 -Line
Leaders
If the regimental commander lost most of his
2nd lieutenants and 1st lieutenants and captains
IF HE
LOST HIS SERGEANTS
IT WOULD BE A
CATASTROPHE. The Army and
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 …
“McKinsey & 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 McKinsey & 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,
Ears
“The doctor
interrupts
after …*
*Source: Jerome Groopman, How Doctors Think
18 …
18 …
seconds!
(An obsession with) Listening is ... the ultimate mark
of
Listening
Listening
Listening
Listening
Listening
Listening
Listening
is
is
is
is
is
is
is
...
...
...
...
...
...
...
Listening
Listening
Listening
Listening
is
is
is
is
...
...
...
...
Respect
.
the heart and soul of Engagement.
the heart and soul of Kindness.
the heart and soul of Thoughtfulness.
the basis for true Collaboration.
the basis for true Partnership.
a Team Sport.
a Developable Individual Skill.* (*Though women
are far better at it than men.)
the
the
the
the
basis for Community.
bedrock of Joint Ventures that work.
bedrock of Joint Ventures that grow.
core of effective Cross-functional
Communication.*
(*Which is in turn Attribute #1 of
organization effectiveness.)
Part ONE:
LISTEN*
(pp11-116, 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 BusinessWeek
“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.*
*PERCEPTION IS ALL THERE IS!
THERE ONCE
WAS A TIME WHEN A
Relationships
(of all varieties):
THREE-MINUTE
PHONE CALL WOULD
HAVE AVOIDED SETTING OFF THE
DOWNWARD SPIRAL THAT
RESULTED IN A COMPLETE
RUPTURE.*
*Divorce, loss of a BILLION $$$ aircraft sale, etc., 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.
throughout the United States was
$413,000; the
Lexington VA hospital settlement number was
$36,000
Source: John Kador,
—and there were far fewer per 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, McKinsey & 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.
3.
4.
5.
6.
7.
8.
9.
If it ain’t broke ... Break it!
Hire crazies.
Ask dumb questions.
Pursue failure.
Lead, follow ... or get out of the way!
Spread confusion.
Ditch your office.
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
“What were the
most important
lessons you learned
in your long and
distinguished
career?” His answer …
asked,
“Remember
to tuck the
shower curtain
inside the
bathtub.”
“BE THE BEST. IT’S THE
ONLY MARKET THAT’S
NOT CROWDED.”