Transcript The Challenge: To Create More Value in All Negotiations

LONG
Tom Peters’
Re-Imagine
EXCELLENCE
!
Firebirds Annual Managers Awards Meeting
Marriott Harbor Beach Resort & Spa/30 March 2015
(For more see tompeters.com and our fully annotated 23-part
Master Compendium [“Mother of All Presentations”] at excellencenow.com)
“YOUR
CUSTOMERS
WILL NEVER BE
ANY HAPPIER
THAN YOUR
EMPLOYEES.”
Conveyance: Kingfisher Air
Location: Approach to New Delhi
“May I clean
your glasses,
sir?”
“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
“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,
“Every year, for 25 years, is a
startup. For that matter, every event
is a start up. No customers.
Not
one single
satisfied
customer! I take nothing
for granted.”
—Jose Salibi Neto*
*Only person to push Peter Drucker around! Radio City Music Hall!
“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
Master or Mauled in the Age of Social Media:
“What used to be “word of
mouth” is now “word of
mouse.” You are either
creating brand
ambassadors or brand
terrorists doing brand
assassination.”
—John DiJulius, The Customer Service Revolution: Overthrow
Conventional Business, Inspire Employees, and Change the World
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.”
“Amateurs talk
about strategy.
Professionals talk
about logistics.”
—Omar Bradley, commander of American troops/D-Day
“COSTCO FIGURED OUT
BIG,
SIMPLE THINGS
THE
AND
EXECUTED
WITH TOTAL
FANATICISM.”
—Charles Munger, Berkshire Hathaway
!
People
Customers
!
Values!
Action
!
Excellence1982: 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
In Search of Excellence/twitterized/127 characters
including quotation marks and spaces:
“Cherish your people.
Cuddle your customers.
Wander around. ‘Try it’
beats ‘talk about it.’
Pursue EXCELLENCE.
Tell the truth.”
EXCELLENCE is not a “longterm” "aspiration.”
EXCELLENCE is the ultimate
short-term strategy.
EXCELLENCE is … THE
NEXT
5
MINUTES.*
(*Or NOT.)
People:
1/4,096
“Business has to
give people
enriching,
rewarding lives …
1/4,096: excellencenow.com
“Business has to give people enriching,
or it's
simply not
worth doing.”
rewarding lives …
—Richard Branson
“You have to
treat your
employees like
customers.”
—Herb Kelleher,
upon being asked his “secret to success”
Source: Joe Nocera, NYT, “Parting Words of an Airline Pioneer,”
on the occasion of Herb Kelleher’s retirement after 37 years at Southwest
Airlines (SWA’s pilots union took out a full-page ad in USA Today
thanking HK for all he had done) ; across the way in Dallas, American
Airlines’ pilots were picketing AA’s Annual Meeting)
“May I help
you down the
jetway.”
“We look for ...
listening, caring,
smiling, saying
‘Thank you,’ being
warm.”
— Colleen Barrett, former President, Southwest Airlines
“It’s simple, really,
Tom. Hire for s,
and, above all,
promote for
s.”
—Starbucks regional manager,
on why so many smiles at Starbucks shops
“hostmanship”/
“consideration
renovation”
“The path to a
hostmanship
culture paradoxically does not go through
the guest. In fact it wouldn’t be totally wrong to say that the guest has nothing to do
with it. True hostmanship leaders focus on their employees. What drives
exceptionalism is finding the right people and getting them to love their work and see
it as a passion. ... The guest comes into the picture only when you are ready to ask,
‘Would you prefer to stay at a hotel where the staff love their work or where
“We went
through the hotel and made a ...
‘consideration renovation.’ Instead of
redoing bathrooms, dining rooms, and
guest rooms, we gave employees new
uniforms, bought flowers and fruit, and
changed colors. Our focus was totally on
the staff. They were the ones we wanted
to make happy. We wanted them to wake up every morning excited
management has made customers its highest priority?’”
about a new day at work.” —Jan Gunnarsson and Olle Blohm, Hostmanship:
The Art of Making People Feel Welcome.
“ … The guest comes into
the picture only when you
are ready to ask, ‘Would you
prefer to stay at a hotel
where the staff love their
work or where management
has made customers its
highest priority?’”
Rocket Science.
NOT.
“If you want staff to
give great service,
give great service
to staff.”
—Ari Weinzweig, Zingerman’s
Source: Small Giants: Companies That Choose to Be Great
Instead of Big, Bo Burlingham
EXCELLENT
customer experience
depends … entirely …
on EXCELLENT
employee experience!
If you want to WOW your
FIRST
customers,
you
must WOW those who
WOW the customers!
“G-E-N-I-U-S”
Getting more and more cantankerous (short tempered!)
about this:
Job #1 (& #2 & #3)
is to abet peoples' personal
growth. All other good things
flow there from.
My idea of a gen-u-ine "genius“
If you work your
heart out to help people grow,
they'll work their hearts out
to give customers a great
experience.
"breakthrough" idea:
“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
“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 Sisoda, Conscious Capitalism:
Liberating the Heroic Spirit of Business
Wegmans
(was #1/Best Company to Work For in USA)
Container Store
(was #1/Best Company to Work For in USA)
Whole Foods
Costco
Publix
Darden Restaurants
Build-A-Bear
Workshops
Starbucks
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
100 Best Companies to Work for,
Plus 3.5%
per annum risk
adjusted returns
1984-2009:
Source: Fortune/“The 100 Best Companies to Work
For”/0315.15/Alex Edmunds, Wharton
“Contrary to conventional
corporate thinking, treating
retail workers much better
may make everyone
(including their employers)
much richer.” * **
*Duh!
**Cited in particular, The Good Jobs Strategy,
by M.I.T. professor Zeynep Ton.
The Good Jobs Strategy:
How the Smartest
Companies Invest in
Employees to Lower Costs
& Boost Profits
—Zeynep Ton, MIT Sloan School
Notes: Cases all retail, including Costco and Trader Joe’s.
E.g., Costco: Average hourly pay $20.89—40% greater
than #1 competitor, Sam’s Club.
Profit Through Putting People First Business Book Club
Nice Companies Finish First: Why Cutthroat Management Is Over—and
Collaboration Is In, by Peter Shankman with Karen Kelly
Uncontainable: How Passion, Commitment, and Conscious Capitalism Built a
Business Where Everyone Thrives, by Kip Tindell, CEO Container Store
Conscious Capitalism: Liberating the Heroic Spirit of Business, by John Mackey,
CEO Whole Foods, and Raj Sisodia
Firms of Endearment: How World-Class Companies Profit from Passion and
Purpose, by Raj Sisodia, Jag Sheth, and David Wolfe
The Good Jobs Strategy: How the Smartest Companies Invest in Employees to
Lower Costs and Boost Profits, by Zeynep Ton, MIT
Joy, Inc.: How We Built a Workplace People Love, by Richard Sheridan, CEO
Menlo Innovations
Employees First, Customers Second: Turning Conventional Management Upside
Down, by Vineet Nayar, CEO, HCL Technologies
The Customer Comes Second: Put Your People First and Watch ’Em Kick Butt,
by Hal Rosenbluth, former CEO, Rosenbluth International
It’s Your Ship: Management Techniques from the Best Damn Ship in the Navy,
by Mike Abrashoff, former commander, USS Benfold
Turn This Ship Around; How to Create Leadership at Every Level,
by L. David Marquet, former commander, SSN Santa Fe
Small Giants: Companies That Choose to Be Great Instead of Big,
by Bo Burlingham
Joy at Work: A Revolutionary Approach to Fun on the Job, by Dennis Bakke,
former CEO, AES Corporation
The Dream Manager, by Matthew Kelly
The Soft Edge: Where Great Companies Find Lasting Success, by Rich Karlgaard,
publisher, Forbes
Brand =
Talent.
Our Mission
TO DEVELOP AND MANAGE TALENT;
TO APPLY THAT TALENT,
THROUGHOUT THE WORLD,
FOR THE BENEFIT OF CLIENTS;
TO DO SO IN PARTNERSHIP;
TO DO SO WITH PROFIT.
WPP
"When I hire
someone, that's
when I go to
work for
them.”
—John DiJulius, "What's the Secret
to Providing a World-class Customer Experience"
“I start with the
premise that the
function of
leadership is to
produce more
leaders, not more
followers.”
—Ralph Nader
“I didn’t have a ‘mission statement’ at
Burger King. I had a dream.
Very simple. It was something like,
‘Burger King is 250,000
people, every one of
whom gives a shit.’ Every
one. Accounting. Systems. Not just
the drive through. Everyone is ‘in the
brand.’ That’s what we’re talking
about, nothing less.”
— Barry Gibbons, former CEO, Burger King
THE DREAM MANAGER
— by Matthew Kelly
“AN ORGANIZATION CAN ONLY BECOME THE-
BEST-VERSION-OF-ITSELF TO THE EXTENT THAT
THE PEOPLE WHO DRIVE THAT ORGANIZATION
ARE STRIVING TO BECOME BETTER-VERSIONSOF-THEMSELVES.” “A company’s purpose is to become
the-best-version-of-itself. The question is: What is an employee’s
purpose? Most would say, ‘to help the company achieve its
purpose’—BUT THEY WOULD BE WRONG. That is
certainly part of the employee’s role, but an employee’s primary
purpose is to become the-best-version-of-himself or –herself. …
When a company forgets that it exists to serve customers, it
OUR EMPLOYEES ARE
OUR FIRST CUSTOMERS, AND OUR MOST
IMPORTANT CUSTOMERS.”
quickly goes out of business.
The
7-Step
Method
7 Steps to Sustaining Success
You take care of the people.
The people take care of the service.
The service takes care of the customer.
The customer takes care of the profit.
The profit takes care of the re-investment.
The re-investment takes care of the re-invention.
The re-invention takes care of the future.
(And at every step the only measure is EXCELLENCE.)
7 Steps to Sustaining Success: And it starts with …
You take
care of the
people.
Training =
Investment
#1
6/2/3*
SIX MONTHS to develop
THREE MINUTES of new material
*It takes Jerry Seinfeld
TWO
or
(documentary: Comedian)
Basketball coach John Wooden, perhaps the best coach of
“I was never much
of a game coach, but I
was a pretty good
practice coach.”
anything, ever:
Hall of fame football coach Bill Walsh on preparation:
“The score takes care
of itself.”
In the Army, 3-star
generals worry about
training. In most
businesses, it's a
“ho-hum” mid-level
staff function.
Why
(why why why why why why why why why why
is intensiveextensive training obvious
for the army & navy &
sports teams & performing
why why why)
not
arts groups—but
for the average business?
Is your CTO/Chief
Training Officer your top
paid “C-level” job (other
than CEO/COO)?
Are your top trainers
paid/cherished as much as
your top marketers/
engineers?
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?
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?
Your (boss) job is
safer if every one of your
team members is
committed to
Boss & RPD:
RPD/Radical
Personal Development.
Actively support one
and all!
Gamblin’ Man
>> 5 of 10 CEOs see
training as expense rather than
investment.
Bet #2: >> 5 of 10 CEOs see
training as defense rather than
offense.
Bet #3: >> 5 of 10 CEOs see
training as “necessary evil”
rather than “strategic
opportunity.”
Bet #1:
>> 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
bananas over training?
GREED. (It pays off.)
(NB: Training should be an official part of
the
R&D budget and a capital expense.)
“training,
TRAINING and
M-O-R-E
T-R-A-I-N-I-N-G”
—CINCPAC/Commander-In-Chief Pacific Chester Nimitz to
CNO/Chief of Naval Operations Ernest King/1943
(punctuation Nimitz’s, NOT mine); when Pearl Harbor occurred,
U.S. Navy preparation was found wanting—the crews’ training,
Nimitz firmly believed, was more important than the number
of available war ships.
“The topic is probably the oldest and biggest debate in
Customer service. What is more important:
How well you hire, or the training and
culture you bring your employees into?
75
While both are very important,
percent is the Customer service training
and the service culture of your company.
Do you really think that Disney has found 50,000 amazing
service-minded people? There probably aren’t 50,000
people on earth who were born to serve. Companies like
Ritz-Carlton and Disney find good people and put them in
such a strong service and training environment that
doesn’t allow for accept anything less than excellence.”
—John DiJulius, The Customer Service Revolution: Overthrow
Conventional Business, Inspire Employees, and Change the World
“Only businesses built on the premise that
employee and Customer loyalty are their
strongest assets are the ones that thrive
and emerge as market leaders for the
These businesses
realize that Customer
service training is an
investment, not an
expense.”
long term.
—John DiJulius,
The Customer Service Revolution: Overthrow Conventional
Business, Inspire Employees, and Change the World
Hiring
Observed closely: The use of
“I”
or
“We”
during a
job interview.
Source: Leonard Berry & Kent Seltman, chapter 6, “Hiring for Values,”
Management Lessons From Mayo Clinic
2/Year =
Legacy
Promotion Decisions
“life and
death
decisions”
Source: Peter Drucker, The Practice of Management
“A man should never
be promoted to a
managerial position if his
vision focuses on people’s
weaknesses rather than
on their
strengths.”
—Peter Drucker, The Practice of Management
Self-
Evaluation
“To develop
others, start
with yourself.”
—Marshall Goldsmith
“Being aware of yourself
and how you affect
everyone around you is
what distinguishes a
superior leader.”
—Edie Seashore (strategy + business #45)
“How can a high-level leader like _____ be
so out of touch with the truth about
himself? It’s more common than you
In fact, the higher
up the ladder a leader
climbs, the less accurate his
self-assessment is likely to
be. The problem is an acute lack of
would imagine.
feedback [especially on people issues].”
—Daniel Goleman (et al.), The New Leaders
"Everyone thinks
of changing the
world, but no one
thinks of changing
himself."
—Leo Tolstoy
st
1 -Line
Bosses
(Cadre of) =
Productivity Asset
#1!
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 the
and majors, it would be a tragedy.
Navy are fully aware that success on the
battlefield is dependent to an extraordinary
degree on its Sergeants and Chief Petty
Officers. Does industry have the same
awareness?
Employee retention
& satisfaction & productivity:
Overwhelmingly
based on the
first-line
manager!
Source: Marcus Buckingham & Curt Coffman, First, Break All the
Rules: What the World’s Greatest Managers Do Differently
“People leave
managers not
companies.”
—Dave Wheeler
Is there ONE “secret” to
productivity and
employee satisfaction?
YES!
The Quality of your
FULL CADRE of …
1st-line Leaders.
E.g.: Do you have the ...
ABSOLUTE BEST
TRAINING &
DEVELOPMENT
PROGRAMS
IN THE INDUSTRY ...
(or some subset thereof)
for first-line supervisors?
!
WOMEN RULE
“I speak to you with a feminine voice.
It’s the voice of democracy, of equality.
that
this will be
the woman’s
century.
I am certain, ladies and gentlemen,
In the Portuguese language,
words such as life, soul, and hope are of the feminine
gender, as are other words like courage and sincerity.”
—President Dilma Rousseff of Brazil, 1st woman to
keynote the United Nations General Assembly (2011)
“Research
suggests that to
succeed, start
by promoting
women.”
Source: Nicholas Kristof, “Twitter, Women, and Power,” NYTimes, 1024.13
“In my experience,
women make much
better executives
than men.”
—Kip Tindell, CEO,
Container Store, from UNCONTAINABLE
“AS
LEADERS,
WOMEN
RULE:
New Studies find that
female managers outshine their male
counterparts in almost every measure”
TITLE/ Special Report/ BusinessWeek
“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 (Courtesy: Dan
Rockwell/Leadership Freak)
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
THE MORAL
IMPERATIVE:
PEOPLE
DEVELOPMENT
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:
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
RESPONSIBILITY to
increase the “SUM OF HUMAN
WELL-BEING.” Business is NOT "part of the
bedrock, has the
community." In terms of how adults collectively spend their
BUSINESS IS THE
COMMUNITY. And should act accordingly. The
waking hours …
(REALLY) good news: Community mindedness
is a great way (THE best way?) to have
spirited/committed/ customer-centric work force—and,
ultimately, increase (maximize?) profitability!
“The role of the Director is to
create a space where the actors
become
more than they’ve ever
been before,
more than they’ve
dreamed of being.”
and actresses can
—Robert Altman, Oscar acceptance speech
#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 2014.
**Society—and profitability—demands this. (Or should!)
/48
Lesson48:
WTTMSW
WHOEVER
TRIES
THE
MOST
STUFF
WINS
Excellence82: 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
“WE HAVE A
STRATEGIC PLAN.
IT’S CALLED ‘DOING
THINGS.’ ”
—Herb Kelleher
“DON’T ‘PLAN.’
DO STUFF.”
—David Kelley/IDEO
READY.
FIRE!
AIM.
H. Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)
“FAIL. FORWARD. FAST.”
—High Tech CEO, Pennsylvania
“FAIL FASTER.
SUCCEED SOONER.”
—David Kelley/IDEO
“MOVE FAST.
BREAK THINGS.”
—Facebook
“I What really matters is that
companies that don’t continue to
companies
that don’t embrace
failure —they eventually get in
experiment—
a desperate position, where the
only thing they can do is make a
‘Hail Mary’ bet at the end.”
—Jeff Bezos at Business Insider “Ignition” conference, 1202.14
WTTMSASTMSUTFW
WHOEVER
TRIES
THE
MOST
STUFF
AND
SCREWS
THE
MOST
STUFF
UP
THE
FASTEST
WINS
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?
“May I clean
your glasses,
sir?”
BEGINS
(and ENDS)
It
in the …
PARKING
LOT*
*Disney
<TGW
and …
>TGR
(Things Gone
WRONG-Things Gone RIGHT)
“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
“IT’S ALWAYS
SHOWTIME.”
—David D’Alessandro, Career Warfare
TGRs:
K=R=P
“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
“The deepest principle in human nature
is the craving to be appreciated.”
—William James
“The deepest urge in human nature is
the desire to be important.” —John Dewey
“When dealing with people,
remember you are not dealing
with creatures of logic, but
with creatures of emotion,
creatures bristling with
prejudice and motivated by
pride and vanity.” —Dale Carnegie
(from Timeless Wisdom, compiled by Gary Fenchuk)
139,380 former
patients from 225 hospitals:
Press Ganey Assoc:
NONE
of THE top 15
factors determining Patient Satisfaction
referred to patient’s health outcome.
Instead: directly related to Staff
Interaction; directly correlated with
Employee Satisfaction
Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel
“There is a misconception that supportive interactions
require more staff or more time and are therefore more
costly. Although labor costs are a substantial part of any
hospital budget, the interactions themselves add nothing to
KINDNESS
IS FREE.
the budget.
Listening to patients
or answering their questions costs nothing. It can be argued
that negative interactions—alienating patients, being nonresponsive to their needs or limiting their sense of control—
can be very costly. … Angry, frustrated or frightened
patients may be combative, withdrawn and less
cooperative—requiring far more time than it would have
taken to interact with them initially in a positive way.”
—Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel
(Griffin Hospital/Derby CT; Planetree Alliance)
K=R=P
Kindness =
Repeat Business =
Profit.
TGRs:
3 Minutes
“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.
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).
3K/5M
Source: Mark McCormack
TGRs:
LBTs*
*Little BIG Things
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
Machine Gambling
“Pleasing” odor #1 vs.
“pleasing” odor #2:
+45% revenue
Source: “Effects of Ambient Odors on Slot-Machine Useage in Las Vegas
Casinos,” reported in Natasha Dow Schull, Addiction By Design:
Machine Gambling in Las Vegas (66% revenue, 85% profit)
Social Business/
Customer
Engagement
“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
“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
“What
used to be “word of mouth” is
now “word of mouse.” You
Welcome to the Age of Social Media:
are either creating
brand ambassadors or
brand terrorists doing
brand assassination.”
—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 I 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)
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
“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
“We’re moving toward an age of nearly perfect
information. Review sites, shopping apps on
smartphones, an extended network of acquaintances
available through social media, and unprecedented
access to experts mean that consumers operate in a
radically different, socially interactive information
environment.* … Consumers tend to make better
decisions and become less susceptible to context or
framing manipulations. For businesses, it means
marketing is changing forever.”
—Itamar Simonson and Emanuel Rosen,
Value:
Absolute
What Really Influences Customers in the
Age of (Nearly) Perfect Information
*Google:
ZMOT
(ZERO Moment Of Truth)
ZMOT
: ZERO Moment Of Truth/Google*
“You know what a ‘moment of truth’ is. It’s when a prospective
customer decides either to take the next step in the purchase
funnel, or to exit and seek other options. … But what is a ‘zero
moment of truth’? Many behaviors can serve as a zero moment of
truth, but what binds them together is that the purchase is being
researched and considered before the prospect even enters the
classic sales funnel … In its research, Google found that
84%
of shoppers said the new mental model,
ZMOT, shapes their decisions. …”
—Jay Baer, Youtility: Why Smart Marketing Is About Help, Not Hype
*See www.zeromomentoftruth.com for ZMOT in booklength format
“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
Walmart SV =
1,500
“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
“Software is
eating the
world.”
—Marc Andreessen
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 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 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
“Since 1996, manufacturing
employment in China itself
fallen by an
estimated 25 percent. That’s
over 30,000,000 fewer
has actually
Chinese workers in that sector,
even while output soared by
70 percent. It’s not that American workers
[AND Japanese 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
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.
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…
Sales/After-sales Process
1.
2.
3.
4.
5.
Kick-off – Women
Research – Women
Purchase – Men
Ownership – Women
Word-of-mouth – Women
Source: Martha Barletta, Marketing to Women: How to Increase Your Share of the World’s Largest Market
We
(old farts like me]
Got the
$$$$$$
1/8/20
!!!!!!!!!!!!!!!!!
“PEOPLE TURNING 50
MORE
THAN HALF OF
TODAY HAVE
THEIR ADULT LIFE
AHEAD OF THEM.”
—BILL NOVELLI,
50+: IGNITING A REVOLUTION TO REINVENT AMERICA
“In 2009, households headed by
adults ages 65 and older ... had
47 times
as much
net wealth as the typical
household headed by someone
under 35 years of age. In 1984,
this had been a less lopsided
10-to-1 ratio.”
Source: Pew Research/10.11
“NEW
CUSTOMER
MAJORITY”
44-65:
Source: Ageless Marketing, David Wolfe & Robert Snyder
“Baby-boomer
Women: The
Sweetest of
Sweet Spots for
Marketers”
—David Wolfe and Robert Snyder, Ageless Marketing
“Fifty-four years of age has been
the highest cutoff point for any
marketing initiative I’ve ever been
involved in. Which is pretty weird
when you consider age 50 is right
about when people who have
worked all their lives start to have
some money to spend.”
—Martha Barletta, PrimeTime Women
The (ENORMOUS]
“Services Added”
Opportunity
M
IBM
IB
to
PS
UPS
U
to
“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
“How the NFL
Stole March
Madness”
Source: Headline, Wall Street Journal, 0325.15
Roll Out the
Red Carpet!
S&P 500
+1/-1*
*Every …
!
2 weeks
Source: Richard Foster (via Rita McGrath/HBR/12.26.13
“I am often asked by
would-be entrepreneurs
seeking escape from life
within huge corporate
structures, ‘How do I build
a small firm for myself?’
The answer seems
obvious …
Source: Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics
“I am often asked by would-be entrepreneurs seeking escape from
life within huge corporate structures, ‘How do I build a small firm for
Buy a
very large
one and just
wait.”
myself?’ The answer seems obvious:
—Paul Ormerod, Why Most Things Fail:
Evolution, Extinction and Economics
“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
THE RED
CARPET
STORE
(Joel Resnick/Flemington NJ)
*Basement Systems Inc.
(Larry Janesky/Seymour CT)
*Dry Basement Science
(100,000++ copies!)
*1990: $0; 2003: $13M;
2010:
$80,000,000
“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
Retail Superstars:
Inside the 25 Best
Independent Stores
in America
—by George Whalin
1,600 cheeses
1,400 varieties of hot sauce
12,000 wines priced from
$8 to $8,000 a bottle
6,000 Christmas ornaments
50,000 trims
PASSION
JUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OH:
“An adventure in
‘shoppertainment,’ begins in the parking lot
and goes on to
1,600
cheeses and
1,400
varieties of hot sauce—not to mention 12,000 wines priced from
$8-$8,000
4,000
a bottle; all this is brought to you by
vendors. Customers from every corner of the globe.”
BRONNER’S CHRISTMAS WONDERLAND, FRANKENMUTH, MI, POP
5,000: 98,000-square-foot “shop” features
ornaments,
50,000
6,000
Christmas
trims, and anything else you can
name pertaining to Christmas. …”
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 keep developing human capital.
They get radically customer-centric.
“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”
MBWA
3,000 miles for
a 5-minute
face-toface meeting
Monday
Morning
—
Monday/Tomorrow/Courtesy NFL:
“Script” your
first 5-10
“plays.”
(I.e., carefully
launch the day/week in a purposeful
fashion.)
4, 8, 12
“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
8
MBWA
:
Change the World With EIGHT Words
What do you think?*
How can I help?**
*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”
**Boss as CHRO/Chief Hurdle Removal Officer **********************************
Are you a full-fledged
“professional” when it
comes to helping?
12
MBWA
:
Change the World
With TWELVE Words
What do you think?*
How can I help?**
What have you learned?***
*Dave Wheeler: “What are the four most important words in the boss’ lexicon?”
**Boss as CHRO/Chief Hurdle Removal Officer **********************************
***What (new thing] have you learned (in the last 24 hours]? ********************* *
Acknowledgement
!
Acknowledgement
"Appreciative words are the
most powerful force
for good on earth.”
—George W. Crane, physician, columnist
“The two most powerful
things in existence: a
kind word and a
thoughtful gesture.”
—Ken Langone, co-founder, Home Depot
“Acknowledge” …
perhaps the most
powerful word (and
idea) in the English
language—and
manager’s tool kit!
“Employees who
don't feel significant
rarely make
significant
contributions.”
—Mark Sanborn
“People want to be part
of something larger than
themselves. They want
to be part of something
they’re really proud of, that
they’ll fight for, sacrifice
for, trust.” —Howard Schultz, Starbucks
“You can make more
friends in two months
by becoming interested
in other people than
you can in two years
by trying to get other
people interested in
you.”
—Dale Carnegie
“Leadership is about how
you make people feel—
about you, about the
project or work you’re
doing together, and
especially about
themselves.” —Betsy Myers,
Take the Lead: Motivate, Inspire, and Bring Out
the Best in Yourself and Everyone Around You
!
Meetings ROCK
(Make that: SHOULD Rock]
Bitch 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!
(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
...
...
...
...
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 basis for Community.
the bedrock of Joint Ventures that work.
the bedrock of Joint Ventures that grow.
the core of effective Cross-functional
Communication* (*Which is in turn Attribute #1 of
organization effectiveness.)
(cont.]
Respect
.
*8 of 10 sales presentations fail
*50% failed sales
talking
“at” before
listening!
presentations …
—Susan Scott, “Let Silence Do the Heavy Lifting,” chapter title,
Fierce Conversations: Achieving Success at Work and in Life,
One Conversation at a Time
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.”
LISTEN =
“PROFESSION” =
STUDY = PRACTICE =
EVALUATION =
ENTERPRISE VALUE
“I always write
‘LISTEN’ on
the back of my hand
before a meeting.”
Source: Tweet viewed @tom_peters
100%
Leaders:
Communications
failure …
100%*
*Your fault!
0/800
“Normal” =
“0
*There are …
for
ZERO
800”
… “normal people” in the history books.
“INSANELY GREAT”
STEVE JOBS
“RADICALLY THRILLING”
BMW
“Astonish me!”
(Sergei Diaghilev, to a lead dancer)
“Build something great!”
(Hiroshi Yamauchi, Nintendo, to a senior game designer)
“Make it immortal!”
(David Ogilvy, to a copywriter).
“You can’t behave in
a calm, rational
manner. You’ve got
to be out there on
the lunatic fringe.”
— Jack Welch
“All human
beings are
entrepreneurs. When
Muhammad Yunus:
we were in the caves we were all
self-employed, finding our food, feeding
ourselves. That’s where human history
began . . . As civilization came we
suppressed it. We became labor
because they stamped us, ‘You
are labor.’ We forgot that we
are entrepreneurs.”
Source: The News Hour/PBS/1122.2006