Transcript Sydney, World Business Forum 2015

CONRAD
HILTON …
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.”
Tom Peters’
Re-Imagine
!
EXCELLENCE
2015 World Business Forum Sydney
28 May 2015
(Slides at tompeters.com; and our fully annotated 23-part
Master Compendium at excellencenow.com)
In Search of Excellence/1982:
The Bedrock “Eight Basics”
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
“Breakthrough” 82*
People!
Customers!
Action!
Values!
*In Search of Excellence
An emotional,
vital, innovative, joyful, creative,
entrepreneurial endeavor that elicits
maximum
ENTERPRISE* (*AT ITS BEST):
concerted human
potential in the
wholehearted pursuit of
EXCELLENCE in
service of others.**
**Employees, Customers, Suppliers, Communities, Owners, Temporary partners
“It may sound radical, unconventional, and
bordering on being a crazy business idea.
However— as ridiculous as it sounds—joy is the
core belief of our workplace.
Joy
is the reason my company,
Menlo Innovations, a customer software design
and development firm in Ann Arbor, exists. It
defines what we do and how we do it. It is the
single shared belief of our entire team.”
Joy, Inc.:
How We Built a Workplace People Love
—Richard Sheridan,
PUTTING PEOPLE
[REALLY] FIRST
1/4,096: excellencenow.com
“Business has to
give people
enriching,
rewarding lives …
1/4,096: excellencenow.com
“Business has to give people enriching,
or it's
simply not
worth doing.”
rewarding lives …
—Richard Branson
“You have to treat
your employees like
customers.”
—Herb Kelleher
“If you want staff to give
great service, give great
service to staff.”
—Ari Weinzweig
“What employees experience, Customers will. The best marketing is
YOUR
CUSTOMERS
WILL NEVER BE
ANY HAPPIER
THAN YOUR
EMPLOYEES.”
happy, engaged employees.
—John DiJulius,
The Customer Service Revolution: Overthrow Conventional
Business, Inspire Employees, and Change the World
1996-2014/12 companies every year/
341,567 new jobs/+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
Training =
Investment
#1
In the Army, 3-star
generals worry about
training. In most
businesses, it's a
“ho-hum” mid-level
staff function.
>> 8 of 10
CEOs, in 45-min
“tour d’horizon” of
their biz, would
NOT mention
training.
Bet #4:
What is the best
reason to go
berserk over
training?
What is the best reason to go
bananas over training?
GREED.
(It pays off.)
(Also: Training should be an official part of
the
R&D budget and a capital expense.)
Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?
If not, why not?
Are your top trainers paid as much as your top marketers and engineers?
If not, why not?
Are your training
courses so good they
make you … jump up
& down with glee?
If not, why not?
Randomly stop an employee in the hall: Can she/he meticulously describe her/his development plan for the next 12
months?
If not, why not?
Why is your world of business any different than the (competitive) world of rugby, football, opera, theater,
the military?
If “people/talent first” and hyper-intense continuous training are laughably obviously for them, why not you?
Is your CTO/Chief Training Officer your top paid “C-level” job (other than CEO/COO)?
If not, why not?
Are your top trainers paid as much as your top marketers and engineers?
If not, why not?
Are your training courses so good they make you giggle and tingle?
If not, why not?
Randomly stop an employee
in the hall: Can she/he
meticulously describe her/his
development plan for the
next 12 months?
If not, why not?
Why is your world of business any different than the (competitive) world of rugby, football, opera,
theater,
the military?
If “people/talent first” and hyper-intense continuous training are laughably obviously for them,
why not you?
st
1 -Line
Bosses
[Cadre of] =
Productivity Asset
#1!
Is there ONE “secret” to
productivity and
employee satisfaction?
YES!
The Quality of your
FULL CADRE of …
1st-line Leaders.
“People leave
managers not
companies.”
—Dave Wheeler
!
WOMEN RULE
“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
“Research
suggests
that to succeed, start by
promoting women.”
[by McKinsey & Co.]
—Nicholas Kristof, “Twitter, Women, and Power,” NYTimes
“In my experience, women
make much better
executives than men.”
—Kip Tindell,
CEO, Container Store
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
TECH TSUNAMI
AND THE MORAL
IMPERATIVE:
PEOPLE
DEVELOPMENT
China/Foxconn:
1,000,000
robots/next 3 years
Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfee
“Since 1996, manufacturing employment
fallen
by an estimated 25 percent.
That’s over 30,000,000
fewer Chinese workers in that
in China itself has actually
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 McAfee, The Second Machine Age:
Work, Progress, and Prosperity in a time of Brilliant Technologies
IoT/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
“Human level capability has not turned
out to be a special stopping point from
an engineering perspective.”
—Illah Reza Nourbakhsh, Robot Futures/2013
“SOFTWARE IS EATING THE WORLD.”
—Marc Andreessen/2014
“The computers are in control. We just
live in their world.” —Danny Hillis, Thinking Machines/2011
“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
The New Logic: Scale w/o Employment
145,000
Kodak: 1988/
employees; 2012/bankrupt
Instagram: 30,000,000 customers/
13 employees
(WhatsApp: 450,000,000 customers/
55 employees/
Valued @ $19,000,000,000)
Source: Robert Reich’s Blog/0317.15
Your principal
moral obligation as a leader is to
develop the skillset, “soft” and
“hard,” of every one of the people
in your charge (temporary as well
as semi-permanent) to the
maximum extent of your abilities.
The good news: This is also the
#1 mid- to long-term …
profit maximization strategy!
CORPORATE MANDATE #1 2014:
Lesson49:
WTTMSW
WHOEVER
TRIES
THE
MOST
STUFF
WINS
READY.
FIRE!
AIM.
H. Ross Perot (vs. “Aim! Aim! Aim!”/EDS vs. GM/1985)
“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 (11.08.10)
“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
LBTs***
*Little BIG Things
**A variation on WTTMSW
Big carts =
Source: Walmart
Bag sizes = New markets:
Source: PepsiCo
2X: “When Friedman
slightly
curved
the right angle of an
entrance corridor to one property, he
was ‘amazed at the magnitude of
change in pedestrians’ behavior’—the
percentage who entered increased from
one-third to nearly two-thirds.”
—Natasha Dow Schull, Addiction By Design: Machine Gambling in Las Vegas
(1) AMENABLE TO RAPID
EXPERIMENTATION/FAILURE “FREE”
(NO BAD “PR,” NO $$)
(2) QUICK TO IMPLEMENT/QUICK TO
ROLL OUT
(3) INEXPENSIVE TO IMPLEMENT/
ROLL OUT
(4) HUGE [POTENTIAL] MULTIPLIER
(5) AN “ATTITUDE” [WTTMSW/
“SERIOUS PLAY”]
(6) DOES NOT BY AND LARGE REQUIRE
A “POWER POSITION” FROM WHICH
TO LAUNCH EXPERIMENTS.
“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
“What matters most
to a company over time?
Strategy or culture?
WSJ/0910.13:
Dominic Barton, Managing Director, McKinsey & Co.:
“Culture.”
WTTMSASTMSUTFW
WHOEVER
TRIES
THE
MOST
STUFF
AND
SCREWS
THE
MOST
STUFF
UP
THE
FASTEST
WINS
We Are What
We Eat.
We Are Who We
Spend Time
With.
“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”/
“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’ ”
Innovate
or Die:
Measure It!
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? (At least 3???)
TGRs:
8/80
Customers describing their service
experience as “superior”:
8%
Companies describing
the service experience they provide as
“superior”:
80%
—Source: Bain & Company survey of 362 companies, reported in John DiJulius,
What's the Secret to Providing a World-class Customer Experience?
Conveyance: Kingfisher Air
Location: Approach to New Delhi
“May I clean
your glasses,
sir?”
<TGW
and …
>TGR
[Things Gone
WRONG-Things Gone RIGHT]
BTs > BBTS
L
“Courtesies of a small
and trivial character
are the ones which
strike deepest in the
grateful and
appreciating heart.”
—Henry Clay
Social Business/
Customer
Engagement
“Customer engagement is
moving from relatively
isolated market transactions
to deeply connected and
sustained social
relationships. This basic change in
how we do business will make an impact
on just about everything we do.”
Social Business By Design: Transformative Social Media Strategies
For the Connected Company —Dion Hinchcliffe & Peter Kim
“What used to be “word of mouth” is
You are
either creating brand
ambassadors or brand
terrorists doing brand
assassination.”
now “word of mouse.”
—John DiJulius, The Customer Service Revolution: Overthrow
Conventional Business, Inspire Employees, and Change the World
“It
takes 20 years to build
a reputation and five
minutes to ruin it. Also, the
Welcome to the Age of Social Media:
Internet and technology have made
customers more demanding., and
they expect information, answers,
products, responses, and resolutions
sooner than ASAP.” —John DiJulius,
The Customer Service Revolution: Overthrow Conventional
Business, Inspire Employees, and Change the World
“The
customer is in
complete control of
communication.”
Welcome to the Age of Social Media:
—John DiJulius, The Customer Service Revolution: Overthrow
Conventional Business, Inspire Employees, and Change the World
“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.”
—Peter Aceto, CEO,
Tangerine (from the Foreword to A World Gone Social:
How Companies Must Adapt to Survive, by Ted Coine & Mark Babbit)
BIG DATA BIG
$$$$$$
“Caesars’ Entertainment
have bet their future on
harvesting personal
data rather than
developing the fanciest
properties.”
—Adam Tanner,
What Stays in Vegas: The World of Personal Data—Lifeblood of Big
Business—and the End of Privacy as We Know it
Women BUY
[Everything]
!
Women BUY
[Everything]
!
“Forget CHINA,
INDIA and the
INTERNET: Economic
Growth Is Driven by
WOMEN.”
Source: Headline, Economist
W>
2X (C + I)*
*“Women now drive the global economy. Globally, they control about $20
trillion in consumer spending, and that figure could climb as high as
$28 trillion
in the next five years. Their
$13 trillion in total yearly earnings could reach $18 trillion in the same
period. In aggregate, women represent a growth market bigger than China and India combined—more than
twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer. And
yet many companies do just that—even ones that are confidant that they have a winning strategy when it comes to
women. Consider Dell’s …”
Source: Michael Silverstein and Kate Sayre, “The Female Economy,” HBR, 09.09
“Women are
THE majority
market”
—Fara Warner/The Power of the Purse
Women as Decision Makers/Various sources
Home Furnishings …
Vacations …
92%
94%
(Adventure Travel … 70%/ $55B travel equipment)
91%
D.I.Y.
… 80%
Consumer Electronics … 51%
Cars … 68% (influence 90%)
Houses …
(major “home projects”)
(66% home computers)
All consumer purchases …
Bank Account …
83% *
89%
67%
Small business loans/biz starts … 70%
Health Care … 80%
Household investment decisions …
*In the USA women hold >50% managerial positions including >50% purchasing officer positions;
hence women also make the majority of commercial purchasing decisions.
Can you pass the …
“Squint
test” ?
We
the
[Old Farts like me]
Got
$$$$$$
USA
1 BOOMER
AGE 65
8 SECONDS
20 YEARS
turns
Every
For the next
50@50: “PEOPLE
TURNING 50 TODAY HAVE
MORE THAN
HALF OF THEIR
ADULT LIFE AHEAD OF
THEM.”
—Bill Novelli, 50+: IGNITING A REVOLUTION TO REINVENT AMERICA
7/13
47X
55+ > 55[Cars >50]
[$$$ 65+, 35-]
[Web $$$]
“NEW
CUSTOMER
MAJORITY”
44-65:
Source: Ageless Marketing, David Wolfe & Robert Snyder
LEADERSHIP
“I ‘DO’ PEOPLE”
FROM FASHION
TRENDS GURU TO JOY
FROM PICKING/
DEVELOPING PEOPLE!*
Les Wexner:
*Limited Brands founder Les Wexner queried on astounding
longterm growth & profitability: It happened, he said,
“I got as excited about
developing people” as he had been about
because
predicting fashion trends in his early years.
MBWA/25
(Managing
By Wandering Around)
“I’m always stopping by our
at least
a week.
stores—
25
I’m also in other
places: Home Depot, Whole Foods, Crate &
Barrel. I try to be a sponge to pick up as
much as I can.” —Howard Schultz
Source: Fortune, “Secrets of Greatness”
Acknowledgement
!
“The deepest urge
in human nature
is the desire to be
important.”
—John Dewey
(In Dale Carnegie, How to Win Friends and Influence
People (“The BIG Secret of Dealing With People”)
“Employees who
don't feel significant
rarely make
significant
contributions.”
—Mark Sanborn
“The
4 most
important
words in any
organization are …
THE FOUR MOST IMPORTANT WORDS IN ANY ORGANIZATION
“WHAT
DO YOU
THINK?”
ARE …
Source: courtesy Dave Wheeler, posted at tompeters.com
THERE ONCE
WAS A TIME WHEN A
Relationships
(of all varieties):
THREE-MINUTE
PHONE CALL WOULD
HAVE AVOIDED SETTING OFF THE
DOWNWARD SPIRAL THAT
RESULTED IN A COMPLETE
RUPTURE.*
*Divorce, loss of a BILLION $$$ aircraft sale, etc., etc.
THE PROBLEM IS
RARELY/NEVER THE
PROBLEM. THE
RESPONSE TO THE
PROBLEM INVARIABLY
ENDS UP BEING THE
REAL PROBLEM.
[OPPORTUNITY].
!
Meetings ROCK
[Make that: SHOULD Rock]
Complain all
you want,
but meetings
are what you
[boss/leader] do!
Meetings are
#1
do. Therefore,
thing bosses
100% of
those meetings:
EXCELLENCE.
ENTHUSIASM.
ENGAGEMENT.
LEARNING. TEMPO.
“The doctor
interrupts
after …*
*Source: Jerome Groopman, How Doctors Think
18 …
18 …
seconds!
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.”
78
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!