Transcript The Challenge: To Create More Value in All Negotiations

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,
First Things
BEFORE First
Things
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.”
IS
“EXECUTION
STRATEGY.”
—Fred Malek
READY.
FIRE!
AIM.
H. Ross Perot (vs “Aim! Aim! Aim!” /EDS vs GM/1985)
“We made mistakes, of course. Most of them were omissions
We
fixed them by doing it over and over,
again and again. We do the same today. While our
we didn’t think of when we initially wrote the software.
competitors are still sucking their thumbs trying to make the
design perfect, we’re already on prototype version
#5.
By the time our rivals are ready with wires and
screws, we are on version
#10.
It gets
back to planning versus acting: We act
from day one; others plan how to plan—
for months.” —Bloomberg by Bloomberg
“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)
“Metabolic
Management”
Leader:
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
Lesson47:
WTTMSW
WHOEVER
TRIES
THE
MOST
STUFF
WINS
LONG
Tom Peters’
!
EXCELLENCE
Medtronic EMEAC FY-15
Annual Kickoff Meeting/Frankfurt/03 June 2014
(Slides++ at tompeters.com; also see our 23-part Master Compendium at excellencenow.com)
“The greatest
shortcoming of the
human race is our
inability to
understand the
exponential
function.”
1/721:
—Albert A. Bartlett
“Human level
capability has not
turned out to be a
special stopping point
from an engineering
perspective. ….”
Source: Illah Reza Nourbakhsh, Professor of Robotics, Carnegie Mellon, Robot Futures
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!]
“Automation has become so
sophisticated that on a typical
passenger flight, a human pilot holds
the controls for a grand total of …
3 minutes
.
[Pilots] have become, it’s not much of
an exaggeration to say, computer
operators.”
Source: Nicholas Carr, “The Great Forgetting,” The Atlantic, 11.2013
“Internet of Things”: “The algorithms created by Nest’s machine-learning
experts—and the troves of data generated by those algorithms—are just as
important as the sleek materials carefully selected by its industrial designers. By
tracking its users and subtly influencing their behaviors, Nest Learning
Thermostat transcends its pedestrian product category. Nest has similar hopes for
what has always been a prosaic device, the smoke alarm. Yes, the Nest Protect
does what every similar device does—goes off when smoke or CO reaches
dangerous levels—but it does much more, by using sensors to distinguish between
smoke and steam, Internet connectivity to tell you where the danger is, a
calculated tone of voice to convey a personality, and warm lighting to guide you in
the darkness.
In other words, Nest isn’t only about beautifying the thermostat or adding features
‘We’re about
creating the
conscious home,’
to the lowly smoke detector.
said Nest
CEO Fadell. Left unsaid is a grander vision, with even bigger implications,
many devices sensing the environment, talking to one another, and doing
our bidding unprompted.”
Source: “Where There’s Smoke …”, Steven Levy, Wired, NOV 2013
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
“Steve, you’re costing
me a hundred
nanoseconds.
Can you at least cross
it diagonally?”
[$100B/Millisecond]
“Who’s the most
interesting person
you’ve met in the last
90 days? How do I
get in touch with
them?”
—Fred Smith
“Just like other members of
the board, the algorithm gets
to vote on whether the firm
makes an investment in a
specific company or not. The
program will be the sixth
member of DKV's board.”
Walmart SV =
1,500
60 IS THE NEW 40!
70 IS THE NEW 50!
?
35 IS THE NEW 65
Bon Chance …
“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
“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
S&P 500
+1/-1*
*Every …
!
2 weeks
Source: Richard Foster (via Rita McGrath/HBR/12.26.13
NO OPTION:
Avoiding
“Commodity
Hell”: Service
on Steroids
“You are headed
for commodity
hell if you don’t
have services.”
)
“While everything may be
it is also
increasingly the
same.”
better,
Paul Goldberger, “The Sameness of Things,”
The New York Times
“The ‘surplus society’ has a
surplus of similar companies,
employing similar people, with
similar educational
backgrounds, coming up with
similar ideas, producing
similar things, with similar
prices and similar quality.”
—Kjell Nordström and Jonas Ridderstråle, Funky Business
More @
Moore
“Lou, Your mission is
to break the
company up and
release hidden
value!”
“Lou, with all the money
I’ve spent with you guys
on ‘the best,’ this or that,
this AND that, why in the
hell hasn’t my business
been transformed?”
M
IB
to
B
I
M
$50B+*
*IBM Global Services/
“Systems integrator of choice”
Planetary Rainmaker-in-Chief!
“[CEO Sam] Palmisano’s
strategy is to expand tech’s
borders by pushing users—
and entire industries—toward
radically different business
models. The payoff for IBM would be
access to an ocean of revenue—Palmisano
estimates it at $500 billion a year—
that technology companies have never been
able to touch.”—Fortune
“You are headed
for commodity
hell if you don’t
have services.”
—Lou Gerstner, on IBM’s coming revolution (1997)
“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 is very, very hard.
Yet I came to see in my
time at IBM that culture
isn’t just one aspect of the
IT IS THE
GAME.”
game—
—Lou Gerstner, Who Says Elephants Can’t Dance
PS
UPS
U
to
“Big Brown’s New Bag: UPS
Aims to Be the Traffic Manager
for Corporate America” —Headline/BW
“UPS wants to take over the
sweet spot in the endless loop
of goods, information and
capital that all the packages [it
moves] represent.” —ecompany.com
(E.g.,
UPS Logistics
manages the logistics of
4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)
“WHAT CAN BROWN DO FOR YOU?”
“It’s all about solutions.
We talk with customers
about how to run better,
stronger, cheaper supply
chains. We have 1,000
engineers who work with
customers …”
—Bob Stoffel, UPS senior exec
“THE GIANT STALKING BIG OIL: How
Schlumberger Is
Rewriting the Rules of the Energy
Game.”: “IPM [Integrated Project
Management] strays from
[Schlumberger’s] traditional role
as a service provider and moves
deeper into areas once dominated
by the majors.”
Source: BusinessWeek cover story, January 2008
“We’ll do
just about anything
an oilfield owner
would want, from
drilling to
production.”
IPM’s Chief:
“Rolls-Royce now
earns more from tasks
such as managing clients’
procurement strategies
and maintaining
aerospace engines it
sells than it does from
making them.”
—Economist
“We want to be
the air traffic
controllers of
electrons.”
—Bob Nardelli, then CEO, GE Power Systems
(GE core business that has been making products
such as transformers for decades and decades)
“Customer Satisfaction” to “Customer
“We’re getting better at
[Six Sigma] every day. But we
really need to think about the
customer’s profitability: Are
Success”:
customers’ bottom
lines really benefiting
from what we provide
them?”
—Bob Nardelli, then chief of
GE Power Systems
UTC/Otis + UTC/Carrier:
boxes* to
“integrated building
systems”
*elevators, air conditioners
Service-Systems Paradox: Cut & Grow
Automate 75% of “commodity”
service activities/Cut staff
and/but
Add value via people-intensive
“strategic/systems-integration
activities” (Est: Sun’s service/sysint
business could be 60% of revenues.)
(Hiring from
PWC, etc.)
Date: September 2013
Location: Chicago
Client: 500 law-firm partners
Complaint: “Legal practice
becoming commoditized”/
“big clients cutting costs,
bringing the work inside,”
“more and more competitive
bid situations”
MasterCard
Advisors
IDEO’s Progression
Product Design
to
Product Design Training
to
Corporate Innovation/
Culture Training/Consulting
Omnicom:
57%
from marketing services
“No longer are we only an
insurance provider. Today, we
also offer our customers the
products and services that
help them achieve their
dreams, whether it’s financial
security, buying a car, paying
for home repairs, or even
taking a dream vacation.”
—Martin Feinstein, CEO, Farmers Group
“The business of selling is not just about matching
viable solutions to the customers that require them.
It’s equally about managing
the change process the
customer will need to go
through to implement the
solution and achieve the value
promised by the solution. One of
the key differentiators of our position in the market is
our attention to managing change and making change
stick in our customers’ organization.”* (*E.g.: CRM
failure rate/Gartner: 70%)
—Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale
“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 is very, very hard.
Yet I came to see in my
time at IBM that culture
isn’t just one aspect of the
IT IS THE
GAME.”
game—
—Lou Gerstner, Who Says Elephants Can’t Dance
90K in U.S.A. ICUs on any given day;
178 discrete steps/day/patient in ICU.
50%
ICU stays result
in “serious complication.”
Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07)
**Dr. Peter Pronovost, Johns Hopkins
**
Checklist
/dealing with
line infections
**1/3rd lines, at least one procedural error
when he started checklist program
**Nurses/permission-requirement to stop
procedure if doc, other not following checklist
(BIG DEAL)
**In 1 year, ICU’s 10-day line-infection rate:
11% to …
0%
Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07)
hundreds of
times better
here
“I am
[than in my prior hospital assignment]
because of the support system. It’s
like you were working in an
organism; you are not a single cell
when you are out there practicing.’”
—quote from Dr. Nina Schwenk, in Chapter 3, “Practicing Team Medicine,”
from Leonard Berry & Kent Seltman, Management Lessons From Mayo Clinic
“When I was in medical school, I spent
hundreds of hours looking into a
microscope—a skill I never needed to
Yet I didn’t
have a single class that
taught me communication
or teamwork skills—
something I need every day
I walk into the hospital.”
know or ever use.
—Peter Pronovost, Safe Patients, Smart Hospitals
“[Pronovost] is focused on work that is not normally
considered a significant contribution in academic medicine.
As a result, few others are venturing to extend his
YET HIS WORK HAS
ALREADY SAVED MORE
LIVES THAN THAT OF ANY
LABORATORY SCIENTIST
IN THE LAST DECADE.”
achievements.
—Atul
Gawande,
“The Checklist” (New Yorker, 1210.07)
The (RELENTLESS) Pursuit of Effective Sub-optimality
Never “best system”; always “best IMPLEMENTED system.”
Rarely is significant change implemented without
CULTURE CHANGE.
“It” happens three levels down. (“I hired women.”)
All invention must be co-invention.
POLITICS: The all important “last 95%.”
Compromise is endemic.
“We” power.
Bigger than desirable teams are likely requisite.
Need to recruit-nurture a core group of a dozen allies.
80% OF YOUR TIME SHOULD BE SPENT ON ALLY
RECRUITMENT-DEVELOPMENT.
(Keep tellin’ ’em you love ’em; never take ’em for granted.)
Allies 3 levels down more important than “top guys.”
Bust your back finding a few docs who get it.
Sub-optimization is the watchword.
Compromise is thy name.
The more women the better—the masters of indirection.
Your team must match gender composition of client team.
The (RELENTLESS) Pursuit of Effective Sub-optimality
Lotsa “social stuff.”
WTTMSW.
Small wins >> Big wins.
MBWA!
Make friends/ROIR.
Never waste a lunch.
Never take credit for anything.
Culture change: F2F, not E2E.
Tell the truth.
Apologize for even the tiniest screw-ups.
Say “Thank YOU” ’til you’re blue in the face.
Norm did tea.
Visible. (Woody’s 80%.)
Meeting protocol: Respectful.
YOUR PROFESSION IS LISTENING.
“Meeting excellence” is not an oxymoron.
Remove “sad dogs who spread gloom.” (D.O.)
Ls >> Ws; your role is realistic encouragement.
The goal should be “Wow,” not “good” or even “Very good.”
Thinking In
Terms of the
Overall
“Experience”
“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
“The [Starbucks] Fix” Is on …
“We have identified a ‘third
place.’ And I really believe
that sets us apart. The third
place is that place that’s
not work or home. It’s the
place our customers
come for refuge.”
—Nancy Orsolini, District Manager
“Club Med
is more
than just a ‘resort’; it’s a
means of rediscovering
oneself, of inventing an
entirely new ‘me.’ ”
Source: Jean-Marie Dru, Disruption
1.
2.
3.
4.
5.
6.
7.
8.
9.
The 9 Planetree Practices
The Importance of Human Interaction
Informing and Empowering Diverse Populations: Consumer
Health Libraries and Patient Information
Healing Partnerships: The importance of Including Friends
and Family
Nutrition: The Nurturing Aspect of Food
Spirituality: Inner Resources for Healing
Human Touch: The Essentials of Communicating
Caring Through Massage
Healing Arts: Nutrition for the Soul
Integrating Complementary and Alternative Practices
into Conventional Care
Healing Environments: Architecture and Design Conducive
to Health
Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel
Experience: “Rebel Lifestyle!”
“What we sell is the ability
for a 43-year-old
accountant to dress in
black leather, ride through
small towns and have
people be afraid
of him.”
Source:
Harley exec, quoted in Results-Based
Leadership
<TGW
and …
>TGR
[Things Gone
WRONG-Things Gone RIGHT]
Design =
Functionality + Aesthetics + Psychology
“Most whiz-bang technologies don’t sell themselves on function
alone; they’ve got to offer pleasure, too. My favorite recent
example is the ride-sharing service Uber. Sure, hailing a cab on
your phone is more convenient than waiting for one on a street
corner. But that’s not the main reason people love Uber. They
love it because Uber lets you feel like the boss: A car rushes to
pick you up, and when it drops you off, you jump out without
ever reaching for your wallet, as if you own the town.
Uber
isn’t using technology to sell
convenience. It’s selling addictive thrills.
It’s selling joy.”
—Farhad Manjoo, “Personal Tech,” New York Times, 0528.14
Big carts =
Source: Walmart
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
onethird to nearly two-thirds.”
who entered increased from
—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)
“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 is very, very hard.
Yet I came to see in my
time at IBM that culture
isn’t just one aspect of the
IT IS THE
GAME.”
game—
—Lou Gerstner, Who Says Elephants Can’t Dance
“… this will be
the woman’s
century …”
“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.”
—Nicholas Kristof, “Twitter, Women, and
Power,” NYTimes, 1024.13
“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
higher.”
56%
—Nicholas Kristof, “Twitter, Women, and Power,” NYTimes, 1024.13
“AS
LEADERS,
WOMEN
RULE:
New Studies find that
female managers outshine their male
counterparts in almost every measure”
TITLE/ Special Report/ BusinessWeek
Women’s Strengths Match New
Economy Imperatives: Link [rather than
rank] workers; favor interactivecollaborative leadership style
[empowerment beats top-down decision
making]; sustain fruitful collaborations;
comfortable with sharing information; see
redistribution of power as victory, not
surrender; favor multi-dimensional feedback;
value technical & interpersonal skills,
individual & group contributions equally;
readily accept ambiguity; honor intuition as
well as pure “rationality”; inherently
flexible; appreciate cultural diversity.
Source: Judy B. Rosener, America’s Competitive Secret: Women Managers
Women’s Negotiating Strengths
*Ability to put themselves in their
counterparties’ shoes
*Comprehensive, attentive and detailed
communication style
*Empathy that facilitates trust-building
*Curious and attentive listening
*Less competitive attitude
*Strong sense of fairness and ability to persuade
*Proactive risk manager
*Collaborative decision-making
Source: Horacio Falcao, Cover story/May 2006, World Business, “Say It
Like a Woman: Why the 21st-century negotiator will need the female touch”
“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
The Perfect Answer
Jill and Jack buy
slacks in black…
Warren Buffett
Invests Like a Girl:
And Why You
Should Too
—Louann Lofton
Portrait of a Female Investor
1. Trade less than men do
2. Exhibit less overconfidence—more likely to know
what they don’t know
3. Shun risk more than male investors do
4. Less optimistic, more realistic than their male
counterparts
5. Put in more time and effort researching possible
investments—consider details and alternate points
of view
6. More immune to peer pressure—tend to make
decisions the same way regardless of who’s watching
7. Learn from their mistakes
8. Have less testosterone than men do, making them
less willing to take extreme risks, which, in turn,
could lead to less extreme market cycles
Warren Buffett Invests Like a Girl: And Why You
Should Too, Louann Lofton, Chapter 2, “The Science Behind the Girl”
Source:
Sarah:
“ Mom, what
do you do?”
Sarah:
Mom:
“ Mom, what
do you do?”
“I’m ‘overhead’—the
‘bureaucrat’ who runs the
‘cost center’ called
‘Human Resources.”
Anne:
“ Mom, what
do you do?”
“Anne, my
human resources
team and I are the
Mom:
‘Rock Stars of the Age
of Talent.’ We drive our
division’s strategic
success.”
Department Head/“Cost center”/“Overhead” to …
MANAGING
PARTNER,
HR
INC.
[IS, R&D, ETC.]
“Technology
Executive” (workin’ in a hospital)
HCare CIO:
Full-scale,
Accountable (life or death)
Member-Partner of
XYZ Hospital’s Senior
Healing-Services
Team
Or/to:
(who happens to be a techie)
Fleet Manager
Rolling Stock Cost
Minimization Officer
vs/or
Chief of Fleet Lifetime
Value Maximization
Strategic Supply-chain Executive
Customer Experience Director
(via drivers, etc.)
Are you the …
“Principal
Engine of
Value Added”
Big Idea:
“CORPORATION” AS
MEGA“PSF”
PSF/Professional Service Firm/Beliefs
PROFESSION: CALLING/PASSION TO MAKE A
DIFFERENCE/EXCELLENCE
POINT OF VIEW: KNOW EXACTLY WHAT WE
STAND FOR/
“DRAMATIC DIFFERENCE”
CLIENT: ENDURING, TEST-THE-LIMITS
RELATIONSHIP/“TRUSTED ADVISOR”
SOLUTION: ROCK HIS-HER WORLD/ “WOW”/
IMPLEMENTED “CULTURE CHANGE”/
>>>>>> “SATISFACTION”
Every “PSF”
must have a
formal &
formidable R&D
budget. PERIOD.
The Professional Service Firm50: Fifty Ways to Transform
Your “Department” into a Professional Service Firm Whose
Trademarks are Passion and Innovation!
Attributes of
Professional Service
Firms in Pursuit of
Excellence
The PSF35: The Work & The Legacy
1.
CRYSTAL CLEAR POINT OF VIEW
(E very Practice Group: “If you can’t explain your position in eight
words or less, you don’t have a position”—Seth Godin)
2. DRAMATIC DIFFERENCE (“We are the only ones who do what
we do”—Jerry Garcia)
3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)
4. Eye-Appetite for Game-changer Projects (Excellence at Assembling
“Best Team”—Fast)
5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change
the World)
6. Small “Uneconomic” Clients with Big Aims
7. Life Is Too Short to Work with Jerks (Fire lousy clients)
8. OBSESSED WITH LEGACY (Practice Group and Individual:
“Dent the Universe”—Steve Jobs)
9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/
I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ”
10. Consistent with #9 above … DO NOT SHY AWAY FROM THE
WORD (IDEA) “RADICAL”
The PSF35: The Client Experience
11. Always team with client: “full partners in
achieving memorable results” (Wanted: “Chimeras
of Moonstruck Minds”!)
12. We will seek assistance Anywhere to assemble the Best-inPlanet Team for the Project
13. Client Team Members routinely declare that working with us
was “the Peak Experience of my Career”
14. The job’s not done until implementation is
“100.00% complete” (Those who don’t “get it” must go)
IMPLEMENTATION IS NOT COMPLETE
UNTIL THE CLIENT HAS EXPERIENCED
“CULTURE CHANGE”
16. IMPLEMENTATION IS NOT COMPLETE
UNTIL SIGNIFICANT “TECHNOLOGY
TRANSFER” HAS TAKEN PLACE-ROOT
15.
(“Teach a man to fish …”)
17.
The Final Exam: DID WE MAKE A DRAMATIC,
LASTING, GAME-CHANGING DIFFERENCE?
The PSF35: The People & The Leadership
18. TALENT FANATICS (“Best-Coolest place to work”) (PERIOD)
19. EYE FOR THE PECULIAR (Hiring: Go beyond “same old,
same old”)
20. Early Opportunities (vs. “Wait your turn”)
21. Up or Out (Based on “Legacy”/Mentoring as much as
“Billings”/“Rainmaking”)
22. Slide the Old Aside/Make Room for Youth (Find oldsters
new roles?)
23. TALENT IS OBSESSED WITH RENEWAL FROM DAY #1 TO
DAY #“R” [R = Retirement]
24. Office/Practice Leaders Evaluated Primarily on
Mentoring-Team Building Skills
25. A “PROPRIETARY” TALENT DEVELOPMENT
PROCESS (GE)
26. Team Leadership Skills Valued Early
27. Partner with B.I.W. [Best In World] Outsiders as Needed
and to Infuse Different Views
The PSF35: The Firm & The Brand
28.
EAT-SLEEP-BREATHE-OOZE INTEGRITY
(“My life is my message”—Gandhi)
29. Excellence+ in EXECUTION … 100.00% of the Time
30. “Drop everything”/“Swarm” to Support a Harried-On
-the-Verge Team
SPEND ON R&D LIKE A TECH FIRM.
32. A PROPRIETARY METHODOLOGY (McKinsey,
31.
Chiat Day, IDEO, old EDS)
33.
BRAND MANIACS (Organize Around a Point of View Worth
BROADCASTING)
34.
35.
PASSION! ENTHUSIASM!
EXCELLENCE. ALWAYS.
Photographer: Louise Roach
MBWA
25*/50**
*Howard’s religion
**Dov’s Big 2
Managing
By
Wandering
Around
“If there is any
one
‘secret’
to effectiveness, it is concentration.
Effective executives do first things
first …
and they do
one thing at a
time.”
—Peter Drucker
#1
Meetings =
leadership
opportunity
Meetings are
#1
do. Therefore,
thing bosses
100% of
those meetings:
EXCELLENCE.
ENTHUSIASM.
ENGAGEMENT.
LEARNING. TEMPO.
“If I had to
pick one failing
of CEOs, it’s
that …
—Co-founder of one of the largest investment services firms in the USA/world
“If I had to pick one failing of
they
don’t read
enough.”
CEOs, it’s that …
PLEASE CONSIDER: Multi-month/
continuing Study Group to assess
[at a snail’s pace] the impact on day-today affairs of the limitations of
judgment implied by …
Daniel Kahneman’s
Thinking, Fast
and Slow
Actor-observer Bias, Ambiguity Effect, Anchoring or Focalism, Attentional Bias, Availability
Cascade, Availability Heuristic, Backfire Effect, Bandwagon Effect, Base Rate Fallacy or Base Rate
Neglect, Belief Bias, Bias Blind Spot, Bizarreness Effect, Change Bias, Cheerleader Effect,
Childhood Amnesia, Choice-supportive Bias, Clustering Illusion, Confirmation Bias, Congruence
Bias, Conjunction Fallacy, Conservatism (Bayesian), Conservatism or Regressive Bias, Consistency
Bias, Context Effect, Contrast Effect, Cross-race Effect, Cryptomnesia, Curse of Knowledge, Decoy
Effect, Defensive Attribution Hypothesis, Denomination Effect, Distinction Bias, Dunning-Kruger
Effect, Duration Neglect, Egocentric Bias, Egocentric Memory Bias, Empathy Gap, Endowment
Effect, Essentialism, Exaggerated Expectation, Experimenter’s or Expectation Bias, Extrinsic
Incentives Bias, Fading Affect Bias, False Consensus Effect, False Memory, Focusing Effect, Forer
Effect or Barnum Effect, Framing Effect, Frequency Illusion, Functional Fixedness, Fundamental
Attribution Error, Gambler’s Fallacy, Generation or Self-generation Effect, Google Effect, Group
Attribution Error, Halo Effect, Hard-easy Effect, Hindsight Bias, Hostile Media Effect, Hot-hand
Fallacy, Humor Effect, Hyperbolic Discounting, Identifiable Victim Effect, IKEA Effect, Illusion of
Asymmetric Insight, Illusion of Control, Illusion of External Agency, Illusion of Transparency,
Illusion of Truth Effect, Illusion of Validity, Illusory Correlation, Illusory Superiority, Impact Bias,
Information Bias, In-group Bias, Insensitivity to Sample Size, Irrational Escalation, Just-world
Hypothesis or Phenomenon, Lag or Spacing Effect, Less-is-better Effect, Leveling and Sharpening,
Levels-of-processing Effect, List-length Effect, Loss Aversion, Ludic Fallacy, Mere Exposure Effect,
Misinformation Effect, Modality Effect, Money Illusion, Mood-congruent Memory Bias, Moral
Credential Effect, Moral Luck, Naive Cynicism, Negativity Bias, Negativity Effect, Neglect of
Probability, Next-in-line Effect, Normalcy Bias, Observation Selection Bias, Observer-expectancy
Effect, Omission Bias, Optimism Bias, Ostrich Effect, Outcome Bias, Out-group Homogeneity Bias,
Overconfidence Effect, Pareidolia, Part-list Cueing Effect, Peak-end Rule, Persistence, Pessimism
Bias, Picture Superiority Effect, Planning Fallacy, Positivity Effect, Post-purchase Rationalization,
Primacy, Recency & Serial Position Effects, Processing Difficulty Effect, Pro-innovation Bias,
Projection Bias, Pseudocertainty Effect, Reactance, Reactive Devaluation, Recency Illusion,
Reminiscence Bump, Restraint Bias, Rhyme as Reason Effect, Risk Compensation or Peltzman
Effect, Rosy Retrospection, Selective Perception, Self-relevance Effect, Self-serving Bias,
Semmelweis Reflex, Shared Information Bias, Social Comparison Bias, Social Desirability Bias,
Source Confusion, Status Quo Bias, Stereotypical Bias, Stereotyping, Subadditivity Effect,
Subjective Validation, Suffix Effect, Suggestibility, Survivorship Bias, System Justification,
Telescoping Effect, Testing Effect, Time-saving Bias, Tip of the Tongue Phenomenon, Trait
Ascription Bias, Ultimate Attribution Error, Unit Bias, Verbatim Effect, Von Restorff Effect,
Well-traveled Road Effect, Worse-than-average Effect, Zeigarnik Effect, Zero-risk Bias,
Zero-sum Heuristic
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
...
...
...
...
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
.
[An obsession with] Listening is ... the ultimate mark of RESPECT.
Listening is ... the heart and soul of Engagement.
Listening is ... the heart and soul of Kindness.
Listening is ... the heart and soul of Thoughtfulness.
Listening is ... the basis for true Collaboration.
Listening is ... the basis for true Partnership.
Listening is ... a Team Sport.
Listening is ... a Developable Individual Skill.
Listening is ... the basis for Community.
Listening is ... the bedrock of Joint Ventures that work.
Listening is ... the bedrock of Joint Ventures that grow.
Listening is ... the core of effective Cross-functional Communication*
(*Which is in turn Attribute #1 of organization effectiveness.)
Listening is ... the engine of superior EXECUTION.
Listening is ... the key to making the Sale.
Listening is ... the key to Keeping the Customer’s Business.
Listening is ... Service.
Listening is ... the engine of Network development.
Listening is ... the engine of Network maintenance.
Listening is ... the engine of Network expansion.
Listening is ... Social Networking’s “secret weapon.”
Listening is ... Learning.
Listening is ... the sine qua non of Renewal.
Listening is ... the sine qua non of Creativity.
Listening is ... the sine qua non of Innovation.
Listening is ... the core of taking diverse opinions aboard.
Listening is ... Strategy.
Listening is ... Source #1 of “Value-added.”
Listening is ... Differentiator #1.
Listening is ... Profitable.*
(*The “R.O.I.” from listening is higher than from any other single activity.)
Listening is … the bedrock which underpins a Commitment to
EXCELLENCE!
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.”
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)
Oath of Office: Managers/Servant Leaders
Our goal is to serve our customers brilliantly and profitably over
the long haul.
Serving our customers brilliantly and profitably over the long
haul is a product of brilliantly serving, over the long haul, the
people who serve the customer.
Hence, our job as leaders—the alpha and the omega and
everything in between—is abetting the sustained growth
and success and engagement and enthusiasm and
commitment to Excellence of those, one at a time, who
directly or indirectly serve the ultimate customer.
We—leaders of every stripe—are in the “Human Growth and
Development and Success and Aspiration to Excellence
business.”
“We” [leaders] only grow when “they” [each and every one of our colleagues] are
growing.
“We” [leaders] only succeed when “they” [each and every one of our colleagues]
are succeeding.
“We” [leaders] only energetically march toward Excellence when
“they” [each and every one of our colleagues] are energetically marching
toward Excellence.
Period.
“the joy*
of work”
—John Mackey and Raj Sisoda, Conscious Capitalism: Liberating the Heroic Spirit of Business
*See also,
Joy Inc.: How We Built a Workplace People Love
—Richard Sheridan (Menlo Innovations)
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:
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?
“People leave
managers not
companies.”
—Dave Wheeler
Hiring.
“development can help great people
be even better— but
if
I had a dollar to spend, I’d
70 cents
spend
getting the right person in
the door.”
—Paul Russell, Director, Leadership and
Development, Google
Training =
Investment
#1
In the Army, 3-star
generals worry about
training. In most
businesses, it's a
“ho hum” mid-level
staff function.
Gamblin’ Man
Bet: >> 5 of 10 CEOs see training
as expense rather than investment.
Bet: >> 5 of 10 CEOs see training
as defense rather than offense.
Bet: >> 5 of 10 CEOs see training
as “necessary evil” rather than
“strategic opportunity.”
Bet: >> 8 of 10 CEOs, in 45-min
“tour d’horizon” of their business,
would not mention training.
Evaluating.
EVALUATING
#1
PEOPLE =
DIFFERENTIATOR
Source: Jack Welch, now Jeff Immelt on
GE’s top strategic skill (
!!!!)
Promoting:
2/year =
Legacy.
Promotion Decisions
“life and
death
decisions”
Source: Peter Drucker, The Practice of Management
Social Business/
Tech++
Biz 2014: Get Aboard the “S-Train”
SM/Social Media.
SX/Social eXecutives.
SE/Social Employees.
SO/Social Organization.
SB/Social Business.
IBM Social Business Markers/2005-2012
*433,000 employees on IBM Connection
*26,000 individual blogs
*91,000 communities
*62,000 wikis
*50,000,000 IMs/day
*200,000 employees on Facebook
*295, 000 employees/800,000 followers
of the brand
*35,000 on Twitter
Source: IBM case, in Cheryl Burgess & Mark Burgess, The Social Employee
Marbles, a Ball and Social Employees ay IBM
“Picture a ball and a bag of marbles side by side. The
two items might have the same volume—that is, if you
dropped them into a bucket, they would displace the
same amount of water. The difference, however, lies in
the surface area, Because a bag of marbles is
comprised of several individual pieces, the
combined surface area of all the marbles far
outstrips the surface area of a single ball. The
expanded surface area represents a social brand’s
increased diversity. These surfaces connect and
interact with each other in unique ways, offering
customers and employees alike a variety of paths
toward a myriad of solutions. If none of the paths prove
to be suitable, social employees can carve out new
paths on their own.” —Ethan McCarty, Director of Enterprise Social Strategy,
IBM (from Cheryl Burgess & Mark Burgess,
The Social Employee
Seven Characteristics of the Social Employee
1. Engaged
2. Expects Integration of the
Personal and Professional
3. Buys Into the Brand’s Story
4. Born Collaborator
5. Listens
6. Customer-Centric
7. Empowered Change Agent
Source: Cheryl Burgess & Mark Burgess,
The Social Employee
!
Excellence
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!
“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.”
Source: Geoff Colvin, Fortune
SEGEW 2014: SERVICE!-ENGAGEMENT!-GROWTH!-EXCELLENCE!-WOW!
Employees as 1st customers
Acknowledgement & Respect
Commitment to Personal Growth & Training-to-Die-For
Engagement
Work Worth Doing
Peerless 1st-line Leadership Cadre Committed to Employee Growth
MBWA Obsession
Seamless Cross-functional Excellence
360-degree “Social” Engagement Inside & Outside the Firm
Co-creation of Everything
A Moral Service Ethos
(Each other/Vendors/Customers/Customers’ Customers/Communities)
An Ethos of Helping (“On the Bus” or “Off the Bus”)
Scintillating Design—Aesthetics & Functionality—Pervades Every
Aspect of the Business (Inside & Outside)
Provision of Extraordinary Customer (& Employee) Experiences
Obsession With TGRs/Things Gone Right
Matchless Quality
“Services Added”/Extended-Integrated-Partnered Solutions
to Broad Customer Needs
Relentless Experimentation (“Bias for Action”/Instant Prototyping/
Celebration of “Excellent Failures”/Transparency/
Pursuit of “Multipliers”)
JOY! (In All We Do)
GROWTH! (In All We Do)
WOW! (In All We Do)
EXCELLENCE! (In All We Do)
Antifragile*:
Things That Gain
From Disorder
—Nassim Nicholas Taleb
*Not to be confused with … RESILIENCE
“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)