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Title: Twenty-three-year-old Navy Seabee in Vietnam to 40-year-ol


1
NOTE To appreciate this presentation and
insure that it is not a mess, you need Microsoft
fonts Showcard Gothic, Ravie, Chiller
and Verdana
2
Tom PetersEXCELLENCE. ALWAYS. Action.
New Master/05 September 2008
3
Part 7.2
4
Ten PartsP1.1, P1.2, P1.3,
P1.4/GenericP2/LeadershipP3/TalentP4/Value-add
ed LadderP5/New Markets P6/The
EquationsP7.1/ImplementationP7.2/ActionP8/13
Guru GaffesP9/HealthcareP10/The Lists
5
Tom PetersEXCELLENCE. ALWAYS. Action.
New Master/06 September 2008
6
This presentation has taken me 40 years to
write. Twenty-three-year-old Navy Seabee in
Vietnam to 40-year-old co-author of In Search of
Excellence from Palo Alto-Silicon Valley
to65-year-old management guy/teller of tales
in Vermont
7
A year from now you may wish You had
started today. Karen Lamb
8
The secret of getting ahead is getting
started. Agatha Christie
9
Action is the foundational key of all success.
Picasso
10
BLAME NO one. EXPECT NOTHING. DO SOMETHING.
            Source Locker room sign posted by
football coach Bill Parcells
11
To Be somebody or to Do somethingBOYD The
Fighter Pilot Who Changed the Art of War (Robert
Coram)
12
The secret to having good ideas is to have a lot
of ideas, then throw the bad ones away. Linus
Pauling
13
Intelligent people can always come up with
intelligent reasons to do nothing. Scott Simon
14
Ninety percent of what we call management
consists of making it difficult for people to get
things done. Peter Drucker
15
EXCELLENCE.CIRCA 1982.A BIAS FOR ACTION.
16
We design intelligent strategiesbut they fail
or fall miles short of their apparent potential
for one reasonpoor organizational alignment
which in turn leads to a gaping implementation
deficit. Tom, I want you to get a handle on the
best thinking and best practices on organization
effectiveness from around the world. Ron
Daniel, Managing Director, McKinsey Co., 1977,
charge to the team (Tom Peters Jim Bennett)
that five years later produced In Search of
Excellence (Tom Peters Bob Waterman)
17
Daniel was McKinseys new Managing Director in
1977. Under competitive threat from the upstart
Boston Consulting Group, Daniel decided to
re-stock McKinseys intellectual capital (as we
call it today) inventory. He started the Big
Project in New York (headquarters) a fresh look
at business strategy. As an afterthought, more or
less, he started a little project on the way
organizations workand called on me, junior but
fresh from having just finished what Stanford
business school organizations guru Professor Gene
Webb called the first Ph.D. dissertation on
implementation per se. Guided by my designated
overseer, Jim Bennett, I began an
around-the-world tour searching for the most
innovative ideas on the subject. (Two decades
later, the spinoffs from that little project
had generated what became McKinseys biggest
practiceOrganization Effectiveness.)
18
Excellence1982 The Bedrock Eight Basics 1. A
Bias for Action 2. Close to the Customer 3.
Autonomy and Entrepreneurship 4. Productivity
Through People 5. Hands On, Value-Driven 6. Stick
to the Knitting 7. Simple Form, Lean Staff 8.
Simultaneous Loose-Tight Properties
19
After two years of research, I produced a
famous presentation with its title taken from
the world of football Two Yards and a Cloud of
Dust. The idea was a focus on the grubby
basics that underlie a winning obsession with
execution. The presentation eventually morphed
into In Search of Excellence. And, in turn, the
centerpiece of the book was our so-called eight
basics. The first of these was labeled a bias
for action.
20
TP/BW on BigCompany Sin 1 too much talk, too
little do
21
Operations is policy. Fred Malek
(1974)Execution is strategy. TP (1983)
22
Never forget implementation boys. In our work
its what I call the missing 98 percent of the
client puzzle. Al McDonald, former Managing
Director, McKinsey Co, to a project team that
included TP
23
EXCELLENCE.CIRCA 2008.A BIAS FOR ACTION.
24
1. A Bias for Action 2. Close to the Customer 3.
Autonomy and Entrepreneurship 4. Productivity
Through People 5. Hands On, Value-Driven 6. Stick
to the Knitting 7. Simple Form, Lean Staff 8.
Simultaneous Loose-Tight Properties
25
A quarter of a century has passed since In Search
of Excellence, but as the pace of change
accelerates madly, a bias for action is, if
possible, more important than everand as elusive
as ever in sizeable organizations. (For that
matter, the rest of the eight basics are still
just thatbasic and as about as relevant as ever.)
26
EXCELLENCE. INNOVATE. OR. DIE.
27
1/40
28
I have said in many settings that, alas, but
more or less seriously, I have only had one
idea in the forty years of my professional
career
29
Try it. Try it. Try it. Try it. Try it. Screw it
up. Try it. Try it. Try it. Try it. Try it. Try
it. Try it. Screw it up. Screw it up. Try it. Try
it. try it. Try it. Screw it up. Try it. Try it.
Try it.
30
and that one idea? He/she who has the most
tries wins. Are there caveats? Of course! But
more or less the person who proceeds by try it
adjust it try it again. And again again
again. (And do it all at flank speed.) (As youll
subsequently see, one wise commentator goes so
far as to say, Whoever makes the most mistakes
wins. I agree!)
31
Jane Jacobs Exuberant Variety vs. the Great
Blight of Dullness. F.A. Hayek Spontaneous
Discovery Process. Joseph Schumpeter the
Gales of Creative Destruction.
32
There are several grand philosophers who champion
my viewand in whose footprints I humbly walk.
Nobel prize winner F.A. Hayek, our foremost
philosopher of free markets. (His writing was
mostly done in the face of totalitarian planned
economies.) Hayek called progress via free
markets the spontaneous discovery process.
(Most tries Most innovation Longterm economic
excellence.) Urban philosopher Jane Jacobs flew
in the face of centralizing urban plannerswho
brought us the debacle of high-rise public
housing, among other things. She said the most
vital communities were marked by exuberant
varietyall sorts of uses mixed wildly together
was the winning formula for quality of life and
economic prowess.Economist Joseph championed
the gales of creative destruction as the key to
economic renewal.As I see it, each of these
says, more or less, most tries wins.
33
What makes God laugh?
34
People making plans!
35
"Life is what happens while you're busy making
other plans. John Lennon
36
The secret of fast progress is inefficiency,
fast and furious and numerous failures.Kevin
Kelly
37
Active mutators in placid times tend to die off.
They are selected against. Reluctant mutators in
quickly changing times are also selected
against.Carl Sagan Ann Druyan, Shadows of
Forgotten Ancestors
38
do things.
39
We have a strategic plan. Its called doing
things. Herb Kelleher
40
do what needs to be done.
41
A man approached JP Morgan, held up an envelope,
and said, Sir, in my hand I hold a guaranteed
formula for success, which I will gladly sell you
for 25,000.Sir, JP Morgan replied, I do
not know what is in the envelope, however if you
show me, and I like it, I give you my word as a
gentleman that I will pay you what you ask.The
man agreed to the terms, and handed over the
envelope. JP Morgan opened it, and extracted a
single sheet of paper. He gave it one look, a
mere glance, then handed the piece of paper back
to the gent.And paid him the agreed upon
25,000.
42
1. Every morning, write a list of
the things that need to be done that
day. 2. Do them. Source Hugh
MacLeod/tompeters.com/NPR
43
try things.
44
We made mistakes, of course. Most of them were
omissions we didnt think of when we initially
wrote the software. We fixed them by doing it
over and over, again and again. We do the same
today. While our competitors are still sucking
their thumbs trying to make the design perfect,
were 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 planfor months. Bloomberg by Bloomberg
45
Hizzonor and the GovernatorThe New Action
Heroes (Time/07.23.07)Bloomberg,
Schwarzenegger
46
drill.
47
This is so simple it sounds stupid, but it is
amazing how few oil people really understand that
you only find oil if you drill wells. You may
think youre finding it when youre drawing maps
and studying logs, but you have to drill.
Source The Hunters, by John Masters, Canadian
O G wildcatter
48
Build.
49
Dick (Just build the damn thing.) vs. Dan
(Dont you know the difference between
tangible and palpable?)
50
grind.
51
Experiment fearlesslySource BW0821.06, Type
A Organization Strategies/ How to Hit a Moving
TargetTactic 1
52
"I think it is very important for you to do two
things act on your temporary conviction as if it
was a real conviction and when you realize that
you are wrong, correct course very quickly.
Andy Grove
53
We ground up more pig brains!/ We did more
procedures
54
The True Logic of Decentralization6 divisions
6 tries6 divisions 6 DIFFERENT leaders
6 INDEPENDENT tries Max probability of
win6 divisions 6 very DIFFERENT leaders 6
very INDEPENDENT tries Max probability of
far out/3-sigma winDriver Law of
Large s
55
play.
56
SERIOUS PLAY
57
Culture of PrototypingEffective prototyping
may be the most valuable core competence an
innovative organization can hope to have.
Michael Schrage

58
Think about It!?Innovation Reaction to the
PrototypeSource Michael Schrage
59
You cant 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
60
Learn not to be careful. Photographer Diane
Arbus to her students (Careful The sidelines,
fromHarriet Rubin in The Princessa)
61
If its not fun youre not doing it
right.Fran Tarkenton
62
The key to a great painting is the nerve, after
weeks of effort, to bet the painting on the
next brush stroke, Master musician, San Francisco
63
Screw. things.Up.
64
Natural selection is death. ... Without huge
amounts of death, organisms do not change over
time. ... Death is the mother of structure. ...
It took four billion years of death ... to invent
the human mind ... The Cobra Event
65
The secret of fast progress is inefficiency,
fast and furious and numerous failures.Kevin
Kelly
66
The Silicon Valley of today is built less atop
the spires of earlier triumphs than upon the
rubble of earlier debacles.Newsweek/ Paul Saffo
67
FAIL, FAIL AGAIN. FAIL BETTER. Samuel Beckett
68
Fail . Forward. Fast.High Tech CEO,
Pennsylvania
69
Fail faster. Succeed Sooner.David
Kelley/IDEO
70
Sams Secret 1!
71
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
72
If people tell me they skied all day and never
fell down, I tell them to try a different
mountain. Michael Bloomberg (BW/0625.07)
73
In business, you reward people for taking risks.
When it doesnt work out you promote them-because
they were willing to try new things. If people
tell me they skied all day and never fell down,
I tell them to try a different mountain.
Michael Bloomberg (BW/0625.07)
74
Read This!Richard Farson Ralph Keyes Whoever
Makes the Most Mistakes Wins The Paradox of
Innovation
75
On NELSON other admirals more frightened of
losing than anxious to win
76
try.Miss.try.
77
READY.FIRE!AIM.Ross Perot (vs Aim! Aim!
Aim! /EDS vs GM/1985)
78
S.A.V.
79
Paul Allaire/Xerox We are in a brawl with no
rules.TP Theres literally only one
possible answer Screw Around Vigorously!
80
Ideas.Plans.Actions.
81
RAFRFARFFFA RFFFA FFFFARAAAAAAAAAAA
82
IID DSSINID DSSIf In Doubt Do Some S
(stuff)If Not In Doubt Do Some S
83
Life 101 A 40-year Reflection Go on offense.
Give everybody a shot. Decentralize. Try a
bunch of stuff. Make it up as you go along. Get
some stuff wrong. Laugh a lot. Get some stuff
right. Become a success. Extract lessons
learned or best practices. Thicken the Book of
Rules for Success. Become evermore
serious. Enforce the rules to increasingly tight
tolerances. Go on defense. Install walls.
Protect-at-all-costs todays franchise.
Centralize. Calcify. Install taller
walls. Write more rules. Become irrelevant and-or
die.
84
Just say no to no.
85
Intelligent people can always come up with
intelligent reasons to do nothing. Scott Simon
86
Andrew Higgins , who built landing craft in
WWII, refused to hire graduates of engineering
schools. He believed that they only teach you
what you cant do in engineering school. He
started off with 20 employees, and by the middle
of the war had 30,000 working for him. He turned
out 20,000 landing craft. D.D. Eisenhower told
me, Andrew Higgins won the war for us. He did it
without engineers. Stephen Ambrose/Fast
Company
87
No try. No deal.
88
You miss 100 of the shots you never take.
Wayne Gretzky
89
Try.Try.try.
90
Try.Try.try.Try.Try. Try.Try.try.Try.Try.
Try.Try.try.Try.Try. Try.Try.try.Try.Tr
y. Try.Try.try. Try.Try. Try.Try.try
Try.Try. Try.Try.try
91
Excellence1982 The Bedrock Eight Basics 1. A
Bias for Action 2. Close to the Customer 3.
Autonomy and Entrepreneurship 4. Productivity
Through People 5. Hands On, Value-Driven 6. Stick
to the Knitting 7. Simple Form, Lean Staff 8.
Simultaneous Loose-Tight Properties
92
InnovationGet mad. Start Doing something about
it. Now.
93
The Limits of Systems Thinking Surprise,
Transformation Excellence Through Spontaneous
Discovery
94
By indirections find directions out. Hamlet,
II. i
95
The Limits of Systems Thinking Surprise,
Transformation Excellence Through Spontaneous
Discovery (1 of 2) This summer was the summer
of brush clearing. And, it turned out, much
more. It started as simple exercise. After a day
or two, scratches from head to toe, and
enjoyment, I set myself a goal of clearing a
little space to get a better view of one of the
farm ponds. That revealed something else to my
surprise. At a casual dinner, I sat next to a
landscaper, and we got to talking about our farm
and my skills with clipper, saw, etc. In
particular, she suggested that I do some clearing
around a few of our big boulders. Intrigued, I
set about clearing, on our main trail, around a
couple of said boulders. I was again amazed at
the result. That in turn led to attacking some
dense brush and brambles around some barely
visible rocks that had always intrigued mewhich
led to finding, in effect, a great place for a
more or less Zen garden, as weve taken to
calling it. Which led to more and more. And
more. (Especially a rock wall, a hundred or so
yards long, that is a massive wondernext year
Ill move up the hill behind itI can already
begin to imagine what Ill discover, though my
hunch will be mostly wrong, and end up leading
me somewhere else.)
96
The Limits of Systems Thinking Surprise,
Transformation Excellence Through Spontaneous
Discovery (2 of 2) To make a long story
short I now have a new hobby, and maybe, ye
gads, my lifes work for years to come. This
winter Ill do a little, but I also plan to read
up on outdoor spaces, Zen gardens, etc visit
some rock gardensspaces close by or amidst my
travels and, indeed, concoct a more or less plan
(rough sketches) for next springs
activitiesthough Im sure that what I do will
move forward mostly by what I discover as I move
forward. (what discovers itself may actually be a
better way to put ittheres a hidden hand
here.) As Im beginning to see it, this is at
least a 10-year projectmaybe even a
multi-generation project. I proceeded by trial
and error and instinct, and each experiment led
to/suggested another experiment (or 2 or 10) and
to a greater understanding of potentialthe
plan, though there was none, made itself. And
it was far, far better (more ambitious, more
interesting, more satisfying) than I would have
imagined. In fact, the result to date bears
little or no relationship to what I was thinking
about at the starta trivial self-designed chore
may become the engine of my next decade the
brushcutting project is now leading Susan and
me to view our entire property, and what it might
represent, in a new light. I was able to do much
more than Id dreamedoverall, and project by
project. Systems thinking? It would have killed
the whole thing. Is everything connected to
every thin else? Well, duh. But I had no idea
how everything was connected to everything else
until I began (thank you, Michael Schrage)
serious play.
97
I proceeded by trial and error and instinct, and
each experiment led to/suggested another
experiment (or 2 or 10) and to a greater
understanding of potentialthe plan, though
there was none, made itself. And it was far, far
better (more ambitious, more interesting, more
satisfying) than I would have imagined. In fact,
the result to date bears little or no
relationship to what I was thinking about at the
starta trivial self-designed chore may become
the engine of my next decade the brushcutting
project is now leading Susan and I to view our
entire property, and what it might
become-represent, in a new light.
98
Note (more of the same) Last year I got a
pacemaker for Christmas (13 December, actually)
the 1 no-no is using a chain saw. (The magnetic
field is fearsome.) Taking that warning a step
farther, I decided to do this project entirely
with hand tools. Of course that means more
exercisea good thing. But the great wonder,
again unexpected, is that the resultant slowness
and quiet is the de facto engine of my entire
spontaneous discovery process.Note Some of you
will have discovered my implicit debt to the
economist-of-freedom, F.A. Hayek. His stunningly
clear view of market capitalism as a
spontaneous discovery process is my
intellectual bedrock, my context for three
decades in Silicon Valley, and now even for my
recreational pursuits (which are, as noted,
becoming so much more than that).
99
How do I know what I think until I see what I
say. C.K. Chesterton We made mistakes, of
course. Most of them were omissions we didnt
think of when we initially wrote the software. We
fixed them by doing it over and over, again and
again. We do the same today. While our
competitors are still sucking their thumbs trying
to make the design perfect, were 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 planfor
months. Bloomberg by Bloomberg This is so
simple it sounds stupid, but it is amazing how
few oil people really understand that you only
find oil if you drill wells. You may think
youre finding it when youre drawing maps and
studying logs, but you have to drill. The
Hunters, by John Masters, Canadian Oil Gas
wildcatter Experiment fearlessly
BusinessWeek, in a Special Report, on the
premier innovation strategy of the best
innovators The secret of fast progress is
inefficiency, fast and furious and numerous
failures. Kevin Kelly, founding editor, Wired
100
How do I know what I think until I see what I
say. C.K. Chesterton
101
My only goal is to have no goals. The goal,
every time, is that film, that very moment.
Bernardo Bertolucci
102
Speed/ Tempo/o.o.d.a. loops/ Metabolic
Management
103
Messin with their minds He who has the quickest
O.O.D.A. Loops wins!Observe. Orient.
Decide. Act. /Col. John Boyd
104
Blitzkrieg is far more than lightning thrusts
that most people think of when they hear the
term rather it was all about high operational
tempo and the rapid exploitation of opportunity.
Robert Coram, Boyd Re-arrange the mind of the
enemy T.E. Lawrence Float like a butterfly,
sting like a bee Ali BOYD The Fighter
Pilot Who Changed the Art of War (Robert Coram)
105
Active mutators in placid times tend to die off.
They are selected against. Reluctant mutators in
quickly changing times are also selected
against.Carl Sagan Ann Druyan, Shadows of
Forgotten Ancestors
106
If things seem under control, youre just not
going fast enough. Mario Andretti
107
the FedEx Economy headline/New York Times
108
Any3 Anything/ Anywhere/ Anytime
109
Try it. Try it. Try it. Try it. Try it. Screw it
up. Try it. Try it. Try it. Try it. Try it. Try
it. Try it. Screw it up. Screw it up. Try it. Try
it. try it. Try it. Screw it up. Try it. Try it.
Try it.
110
BLAME NOBODY. EXPECT NOTHING. DO SOMETHING.
            Source Locker room sign posted by
football coach Bill Parcells
111
Think!vs.do!
112
Never forget implementation , boys. In our work,
its what I call the last 98 percent of the
client puzzle. Al McDonald, former Managing
Director, McKinsey Co, to a project team that
included TP
113
The (Strange) Case of Peter Drucker Michael
Porter vs. The Non-linearistsHERBERT SIMON.
(Administrative Behavior.) JAMES MARCH. KARL
WEICK. (The Social Psychology of Organizing.)
EUGENE WEBB. Henry MINTZBERG. (The Rise and
Fall of Strategic Planning.) JAMES UTTERBACK.
THOMAS KUHN. (The Structure of Scientific
Revolutions.) CHARLES LINDBLOM. Daniel
goleman. INNOVATION BIOGRAPHERS.
(Transcontinental Railroad, Electrification,
Radio, Television, Containerization, DNA,
Computers, Military History, Etc.) MOST
POLITICAL SCIENTISTS. SILICON VALLEY. Etc.
114
Linearist think!Non-linearist do!
115
Linearist Plan it!Non-linearist Try it!
116
Linearist hypothesize!Non-linearist
experiment!
117
Linearist failure unnecessaryNon-linearist
failure life
118
Linearist agtbNon-linearist
bgtaAttitude shapes behaviorBehavior
shapes attitude
119
Linearist deliberate!Non-linearist
relentless! Do it right the first
time (Hero Phil Crosby) Never retreat (Hero
U.S. Grant)
120
Linearist logical!Non-linearist
passionate!
121
Linearist give me genius!Non-linearist
give me luck!
122
Linearist spotless academic record!Non-linear
ist a.d.d.
123
Linearist measured pace!Non-linearist
Tempo! Tempo! Tempo!
124
Linearist think! Plan! (r.a.f.)Non-linearist
Try it! Screw it up! Fix it! Try it again!
(r.f.a.) Ready. Aim. Fire.ready. Fire.
Aim. (Or, circa 2006 fire. Fire. Fire.)
125
Cheap ShotLinearist minimize
cost.Non-linearist maximize revenue.
126
Linearist marketing rules.Non-linearist
sales rules.
127
Linearist Background planning, marketing
finance.Non-linearist background sales
operations.
128
Linearist likes ideas.Non-linearist
likes people.
129
Linearist office walls.Non-linearist
office none.
130
Linearist style meetings.Non-linearist
style m.b.w.a. Managing by wandering around
131
Linearist reads michael porter. Peter
drucker.Non-linearist reads waterman
peters. Tom clancy. Michael peterBob
tom tom
132
Linearist reads michael porter. Peter
drucker.Non-linearist reads doesnt
133
Linearist preferred baseball score
1-0.Non-linearist preferred baseball score
11-9.
134
Linearist preferred football score
7-0.Non-linearist preferred football score
41-38.
135
Linearist criminal record none.Non-lineari
st criminal record disorderly
conduct.Chronic jaywalking.
136
Linearist drives lincoln town car. Ford
explorer (weekends).Non-linearistdrives
bmw. Harley-davidson (weekends).
137
The (Strange) Case of Peter Drucker Michael
Porter vs. The Non-linearistsHERBERT SIMON.
(Administrative Behavior.) JAMES MARCH. KARL
WEICK. (The Social Psychology of Organizing.)
EUGENE WEBB. Henry MINTZBERG. (The Rise and
Fall of Strategic Planning.) JAMES UTTERBACK.
THOMAS KUHN. (The Structure of Scientific
Revolutions.) CHARLES LINDBLOM. Daniel
goleman. INNOVATION BIOGRAPHERS.
(Transcontinental Railroad, Electrification,
Radio, Television, Containerization, DNA,
Computers, Military History, Etc.) MOST
POLITICAL SCIENTISTS. SILICON VALLEY. Etc.
138
METABOLIC MANAGEMENT
139
The Leadership111. Talent
Management2. Metabolic Management3. Technology
Management4. Barrier Management5. Forgetful
Management6. Metaphysical Management7.
Opportunity Management8. Portfolio Management9.
Failure Management10. Cause Management11.
Passion Management
140
The secret of fast progress is inefficiency,
fast and furious and numerous failures.Kevin
Kelly
141
Active mutators in placid times tend to die off.
They are selected against. Reluctant mutators in
quickly changing times are also selected
against.Carl Sagan Ann Druyan, Shadows of
Forgotten Ancestors
142
How we feel about the evolving future tells us
who we are as individuals and as a civilization
Do we search for stasisa regulated, engineered
world? Or do we embrace dynamisma world of
constant creation, discovery and competition?
Do we value stability and control or evolution
and learning? Do we think that progress requires
a central blueprint, or do we see it as a
decentralized, evolutionary process?? Do we see
mistakes as permanent disasters, or the
correctable byproducts of experimentation? Do we
crave predictability or relish surprise? These
two poles, stasis and dynamism, increasingly
define our political, intellectual and cultural
landscape. Virginia Postrel, The Future and
Its Enemies
143
If things seem under control, youre just not
going fast enough. Mario Andretti
144
The most successful people are those who are
good at plan B. James Yorke, mathematician,
on chaos theory in The New Scientist
145
Im not comfortable unless Im
uncomfortable.Jay Chiat
146
If it works, its obsolete. Marshall McLuhan
147
Mbwa
148
The magic number 25.Mbwa.Calendars never
lie.Excellence.Always.
149
MBWA
150
When Bob Waterman and I wrote In Search of
Excellence in 1982, business was by the
numbersand the Americans were struggling (to
put it mildly) with hands on, tactile stuff, like
Japanese quality. Then, at Hewlett Packard, we
were introduced to the famed HP Way, the
centerpiece of which was in-touch management. HP
had a term for this MBWA. (Managing By
Wandering Around.) Bob and I fell in immediate
love. Not only was the idea per se important and
cool, but it symbolized everything we were coming
to cherishenterprises where bosses-leaders were
in immediate touch with and emotionally attached
to workers, customers, the product. The idea is
as important or more important in fast-paced 2007
as it was in 1982.
151
CWVA to MBWA In these days of telegraph and
steam I can command while traveling and visiting
about. U.S. GrantManaging by wandering
around HP circa 1980
152
General Grant got there firstas usual!
153
25
154
Though his empire is enormous, and his executive
team strong, Starbucks founder Howard Schultz
still religiously visits at least 25 Sbucks
shops per week! Regardless of our size, he
told me, we still sell it one-cup-at-a-time, one
customer-at-a-time, one server-at-a-time. I need
to see it and touch it and feel it.
155
The first and greatest imperative of command is
to be present in person. Those who impose risk
must be seen to share it. John Keegan, The
Mask of Command
156
True for business as well as war.
157
20-minute rule Craig Johnson/30 yrs
158
Craig Johnson, a famed Venture Capitalist for
three decades refuses to invest in companies
that are more than a 20-minute drive from his
office. To guide them through the serpentine path
ahead, he insists that he must be in constant
touch as banker, advisor, friend.
159
gt70Hank Paulson, China visits, Fortune 1127.06
160
China is clearly our most important economic
partner. Our dialog with China was not what it
might have been when Hank Paulson took over as
Secretary of the Treasury. Immediate improvement
occurred for numerous reasons, not least of which
were Paulsons SEVENTY TRIPS to China while at
Goldman Sachs.
161
I call 60 CEOs in the first week of the year
to wish them happy New Year. Hank Paulson,
former CEO, Goldman SachsSource Fortune,
Secrets of Greatness, 0320.05
162
MBWA, Grameen Style!Conventional banks ask
their clients to come to their office. Its a
terrifying place for the poor and illiterate.
The entire Grameen Bank system runs on the
principle that people should not come to the
bank, the bank should go to the people. If any
staff member is seen in the office, it should be
taken as a violation of the rules of the Grameen
Bank. It is essential that those setting up a
new village Branch have no office and no place
to stay. The reason is to make us as different as
possible from government officials. Source
Muhammad Yunus, Banker to the Poor
163
You must be the change you wish to see in the
world.Gandhi
164
Its always showtime. David DAlessandro,
Career Warfare
165
You Your calendarCalendars never lie
166
All we have is our time. The way we spend our
time is our priorities, is our strategy.
Your calendar knows what you really care about.
Do you?
167
a blinding flash of the obvious Manny Garcia
168
All this this little riff is indeed, as
seminar participant and leading Burger King
franchisee Many Garcia once said to me,
obvious. But observation over four decades
suggests that amidst the hubbub and travails of a
typical days work, the so-called obvious is
often-usually left unattended. For perfectly good
reasons, another week passes without a visit to
our equivalent of the Starbucks shops or HP RD
labs, without the equivalent to Hank Paulsens
How ya doin? call to a key customer. My Tom
Peters Job One in life? Remind busy folks of the
obvious!Manny Garcia/1983 Tom, I hope you
wont be insulted when I say this was the best
seminar Ive ever been toand it was a blinding
flash of the obvious.I had two commanding
officers during my two Vietnam tours in U.S.
Naval Mobile Construction Battalion NINE. One was
a Shultz look-alikeinstinctively in the field.
The other was an in the office leader. The one
produced. The other didnt. At age 24 I learned
an incredible life lesson, though I couldnt
describe it well until tripping over HPs
MBWA/Managing By Wandering Around.
169
The older I get the less boring the basics
become!
170
The one thing you need to know about sustained
individual success Discover what you dont like
doing and stop doing it. Marcus
Buckingham, The One Thing You Need to Know
171
EXCELLENCE. 4/40.
172
4/40
173
De-cent-ral-iz-a-tion!
174
Decentralization is not a piece of paper. Its
not me. Its either in your heart, or not.
Brian Joffe/BIDvest
175
If if feels painful and scarythats real
delegation Caspian Woods, small biz owner
176
HOW THE COAST GUARD GETS IT RIGHT Headline,
Time, 10.31.2005 (on the USCG and hurricane
Katrina)AutonomyFlexibilityPerhaps the
most important distinction of the Coast Guard
is that it trusts itself
177
The True Logic of Decentralization6 divisions
6 tries6 divisions 6 DIFFERENT leaders
6 INDEPENDENT tries Max probability of
win6 divisions 6 very DIFFERENT leaders 6
very INDEPENDENT tries Max probability of
far out/3-sigma winDriver Law of
Large s
178
Ex-e-cu-tion!
179
Execution is the job of the business leader.
Larry Bossidy Ram Charan/ Execution The
Discipline of Getting Things Done
180
Execution is a systematic process of
rigorously discussing hows and whats,
tenaciously following through, and ensuring
accountability. Larry Bossidy Ram Charan/
Execution The Discipline of Getting Things Done
181
(1) sum of Projects Goal
(Vision) (2) sum of Milestones
project(3) rapid Review
Truth-telling accountability
182
I saw that leaders placed too much emphasis on
what some call high-level strategy, on
intellectualizing and philosophizing, and not
enough on implementation. People would agree on
a project or initiativeand then nothing would
come of it. Larry Bossidy Ram
Charan/Execution The Discipline of Getting
Things Done
183
The person who is a little less conceptual but
is absolutely determined to succeed will usually
find the right people and get them together to
achieve objectives. Im not knocking education or
looking for dumb people. But if you have to
choose between someone with a staggering IQ and
an elite education whos gliding along, and
someone with a lower IQ but who is absolutely
determined to succeed, youll always do better
with the second person. Larry
Bossidy/Execution The Discipline of Getting
Things Done
184
Never forget implementation boys. In our work
its what I call the missing 98 percent of the
client puzzle. Al McDonald
185
Ac-count-a-bil-ity!
186
Realism is the heart of execution. Larry
Bossidy Ram Charan/Execution The Discipline
of Getting Things Done
187
robust dialogue Larry Bossidy Ram Charan/
Execution The Discipline of Getting Things Done
188
GE has set a standard of candor. There is no
puffery. There isnt an ounce of denial in the
place. Kevin Sharer, CEO Amgen, on the GE
mystique (Fortune)
189
615A.M.
190
????????Work Hard gt Work Smart
191
A man approached JP Morgan, held up an envelope,
and said, Sir, in my hand I hold a guaranteed
formula for success, which I will gladly sell you
for 25,000.Sir, JP Morgan replied, I do
not know what is in the envelope, however if you
show me, and I like it, I give you my word as a
gentleman that I will pay you what you ask.The
man agreed to the terms, and handed over the
envelope.JP Morgan opened it, and extracted a
single sheet of paper. He gave it one look, a
mere glance, then handed the piece of paper back
to the gent.And paid him the agreed-upon
25,000
192
1. Every morning, write a list of
the things that need to be done that
day. 2. Do them. Source Hugh
MacLeod/tompeters.com/NPR
193
DECENTRALIZATION.EXECUTION.ACCOUTABILITY.61
5A.M.
194
Execution Is Strategy Howards Lesson
195
We Have Thank you, Howard (Starbucks)!
196
Starbucks, more or less for the first time, and
before the Recession, began to have some
significant problems. The good news, as it
were, is that Howard Schultzs Sbucks has no
new competition hence we are left with only one
possible cause for Starbucks slumpStarbucks!
197
Sports You beat yourself!
198
Sure, your opponent in sports can be having a
lucky daybut mostly, when one stinks up, say,
the presentation one beats oneself! Principal
diagnostic tool for Starbucks or you and me?
Spend 2.95, and buy a mirror.
199
Internal organizational excellence Deepest
Blue Ocean
200
A Blue ocean is by definition very profitable
and will be quickly copied. sustainable blue
(Internal organizational excellence) is far more
difficult to copy.
201
Internal organizational excellence Brand
inside
202
B(I) gt B(O)
203
Sure, I am well aware of internally focused
organizations. Nonetheless, I still (mostly) cast
my vote for XX eXcellence in eXecution.
204
When The Enemy Really Wins Lose Your
Nemesis Obsessing about your competitors,
trying to match or best their offerings, spending
time each day wanting to know what they are
doing, and/or measuring your company against
themthese activities have no great or winning
outcome. Instead you are simply prohibiting your
company from finding its own way to be truly
meaningful to its clients, staff and prospects.
You block your company from finding its own
identity and engaging with the people who pay the
bills. Your competitors have never paid your
bills and they never will. Howard Mann, Your
Business Brickyard Getting Back to the Basics to
Make Your Business More Fun to Run Mr Mann
also quotes Mike McCue, former VP/Technology at
Netscape At Netscape the competition with
Microsoft was so severe, wed wake up in the
morning thinking about how we were going to deal
with them instead of how we would build something
great for our customers. What I realize now is
that you can never, ever take your eye off the
customer. Even in the face of massive
competition, dont think about the competition.
Literally dont think about them.
205
K.I.S.S.
206
450/8
207
First Steps Beauty Contest!
  • 1. Select one form/document invoice, airbill,
    sick leave policy, customer returns claim form.
  • 2. Rate the selected doc on a scale of 1 to 10
    1 Bureaucratica Obscuranta/ Sucks 10 Work
    of Art on four dimensions Beauty. Grace.
    Clarity. Simplicity.
  • 3. Re-invent!
  • 4. Repeat, with a new selection, every 15
    working days.

208
BeautifulGracefulAesthetic
TriumphBreathtakingGame-changing
209
Rodales on Grace elegance charm
loveliness poetry in motion kindliness ..
benevolence benefaction compassion beauty
210
I wanted GE to operate with the speed,
informality, and open communication of a corner
store. Corner stores often have strategy right.
With their limited resources, they have to rely
on laser-like focus on doing one thing very
well. Jack Welch/Fortune
211
Lees Rule Run It off a Blackberry!
212
Really Important Stuff Rogers Rule of Three!
213
The art of war does not require complicated
maneuvers the simplest are the best, and common
sense is fundamental. From which one might wonder
how it is generals make blunders it is because
they try to be clever. Napoleon on Simplicity,
from Napoleon on Project Management by Jerry
Manas.
214
The Planning, Planning Systems, Intelligence
Measures50
215
The Planning, Planning Systems, Intelligence
Measures50 K.I.S.S. (!!) (450/8.) (500/50GB.)
(Lees Blackberry.) Complexity accretes one
day/person/item at a time! There must be a
Systems Measures Un- designer. (Rem
Koolhaas Often my job is to undo
things.) Focus!!!! 5 or fewer key indicators.
(Enricos Rule of Three.) Key indicators must
be backed up by unmistakable impact on evals
and compensation! (JW 6-sigma) Prune 50 of
your measures TODAY.
216
The Planning, Planning Systems, Intelligence
Measures50 Measurement Architecture (Real)
Corporate Strategy. (PERIOD.) CIOs CFOs
CROs will become Soulmates in effective
organizations! Can a fourth grader understand it
(Paul Sherlock, JW)? Overall systems
architecture should be in the heads of no more
than three people. (Fred Brooks
jr./360.) Nothing is easier than lying with
statistics. (Measurement is not Reality.) Hard
is Soft. Soft is Hard. (TP-RWjr.) (c.f. Enron.)
217
The Planning, Planning Systems, Intelligence
Measures50 Fanatically measure Customer
Satisfaction regarding systems/measures! If
the Customer says its confusing its
confusing. PERIOD. Systems Measures planning
must be Bottom Up! (Buy-in Rules in systems
world.) If, as a systems guy/gal, it turns
you on BEWARE! (Jeffersons Rule. Lessons
from Clio.)
218
The Planning, Planning Systems, Intelligence
Measures50 Systems Measures should be/can
be/ought to be Works of Art! Great systems are
about aesthetics! Is it beautiful? Is it
graceful? Is it Surprising? Use a great
Graphic Designer on all systems development
teams and a damn good Psychologist. (Steve
world.) Systems design is not innocent It is
the Ultimate Power Game! She/He who controls
the primary measures Rules the World!
219
The Planning, Planning Systems, Intelligence
Measures50 Budgets as weve known them are
more than a wretched waste They are Danger 1
in Turbulent Times! Budgets are exercises in
Negotiated Timidity. Managing to budget is
a/the Mortal Sin. Plan, then burn the plan!
(Koppers.) Continuous and rolling are superb
ideas but beware so much plasticity that one
forgets the starting point! Hard. Comparative
data is a very good thing.
220
The Planning, Planning Systems, Intelligence
Measures50 Intelligence is always obvious
after the fact. B.I. Remember HUMINT!! Great
BizIntelligence depends on Freaks Whackos,
from Langley to the Board Room. (I.e., Be
Incredibly Eclectic in terms of sources of
Intelligence.) All intelligence gathering is a
Political Activity. (C.f. CIA, FBI.) B.I. is
about outliers. (?? If you can measure it,
its not on the leading edge??)
221
The Planning, Planning Systems, Intelligence
Measures50 If a system/measure gives you a
stupid answer, its probably a stupid
system/measure. Measures should routinely
produce Surprises (if not, discard
them). Perform systems Measures post-mortems
after major fiascos (Why didnt this stick out
like a sore thumb?) The half-life of Measures
is 3 years. (Effective gaming begins in year
2, reaches a crescendo by year 4.)
222
The Planning, Planning Systems, Intelligence
Measures50 Intangibles rule! Measure
intangibles! (!!!!) Be(very)ware the tangibles
becoming Total Reality, thence crowding out Real
Reality. Constantly review whats not being
measured. (Ever tried to drive a car using only
the dashboard?) Models are incredibly Stupid
(very rough approximations of reality) Make sure
everyone understands that! Business is Art!
223
The Planning, Planning Systems, Intelligence
Measures50 Planning systems should support
execution! (PERT/CPM.) Uniformity of
measurement/presentation across units is
fantastic up to a point. Let a thousand
flowers bloom, let a hundred schools contend
Let a 100 flowers bloom, let a dozen schools
contend. Do it right the first time is as
stupid in systems world as in
TQM. Selection of measurements is one of the
Most Creative Acts in the Enterprise! Are
there Freaks aplenty in the Systems Measures
Intelligence activities?
224
EXCELLENCE. ACTION.ROOTS.
225
GRANTNELSONBOYDFISHERBOSSIDYPEROTMASTERSHER
BMcDONALDPETERS-WATERMANHAMLET
226
GRANT
227
The only way to whip an army is to go out and
fight it. GrantSource John Mosier, Grant
228
recognized the value of momentum throw
opponent off balance blitzkrieg traveling
light headquarters in the saddle Jean Edward
Smith/GRANT
229
almost inhuman disinterestedness in strategy
Josiah Bunting on U.S. Grant (from Ulysses S.
Grant)
230
He never credited the enemy with the capacity
to take the offensive./185 tenacity like
Wellington/187 I havent despaired of whipping
them yet at a very low point/195 Both sides
seemed defeated and whoever assumed the offensive
was sure to win./200 inchoate bond between
Grant and soldiers/201 The genius of Grants
command style lay in its simplicity. Grant never
burdened his division commanders with excessive
detail. no elaborate staff conferences, no
written orders prescribing deployment. Grant
recognized the battlefield was in flux. By not
specifying movements in detail, he left his
subordinate commanders free to exploit whatever
opportunities developed./202 If anyone other
than Grant had been in command, the Union army
certainly would have retreated./204 Lincoln
(urged to fire Grant) I cant spare this man
he fights./205 Grant turned defeat into Union
victory./206 moved on intuition, which he
often could not explain or justify./208
instinctive recognition that victory lay in
relentlessly hounding a defeated army into
surrender./213 Nathan Bedford Forrest,
successful Confederate commander amenable to no
known rules of procedure, was a law unto himself
for all military acts, and was constantly doing
the unexpected at all times and places./213
231
The genius of Grants command style lay in its
simplicity. Grant never burdened his division
commanders with excessive detail. no elaborate
staff conferences, no written orders prescribing
deployment. Grant recognized the battlefield
was in flux. By not specifying movements in
detail, he left his subordinate commanders free
to exploit whatever opportunities developed.
Jean Edward Smith/GRANT
232
A generation of American officers had been
schooled to believe the art of generalship
required rigid adherence to certain textbook
theorems./151 The nature of Grants greatness
has been a riddle to many observers. did not
hedge his bets disregarded explicit
instructions nothing to fall back on
violating every maxim held dear by the military
profession new dimension ability to learn from
the battlefield finished near the bottom of his
West Point class in tactics carried the fight
to the enemy maintain the momentum of the
attack military greatness is the ability to
recognize and respond to opportunities
presented./152-3 Grant had an aversion to
digging in./153 Grant had an intangible
advantage. He knew what he wanted./153 Grants
seven-mile dash changed the course of the
war./157 The one who attacks first will be
victorious./158 dogged/159 unconditional
surrender/162 simplicity and
determination/166 quickness of mind that
allowed him to make on the spot adjustments
his battles were not elegant set-piece
operations/166 other Union general preferred
preparation to execution became a friend of
detail suffered from the slows /170 Message
to Halleck from McClellan Do not hesitate to
arrest him following great victory/172
learned how to withstand attacks from the rear
Army politics/179
233
The commanding general would be in the
field/228 Lincoln What I want, and what the
people want, is generals who will fight battles
and win victories. Grant has done this and I
propose to stand by him./231 retains his hold
upon the affections of his men/232 Grants
moral couragehis willingness to choose a path
from which there could be no returnset him apart
from most commanders were Grant and Lee were
uniquely willing to take full responsibility for
their actions./233 modest honest
nothing could perturb never faltered /233
plan was breathtakingly simple but fraught with
peril/235 demonstrating the flexibility that
had become his hallmark/238 But like any West
Point trained general, he had difficulty
comprehending what Grant was up to /240
recognized the value of momentum throw off
balance blitzkrieg traveling light
headquarters in the saddle/243 acted as
quartermaster/243 rushed away so that he
couldnt receive Hallecks order like Lord
Nelson telescope to his blind eye pressing
ahead on his own/245 focus on the enemys
weakness rather than his own/250
234
recognized the value of momentum throw
opponent off balance blitzkrieg traveling
light headquarters in the saddle Jean Edward
Smith/GRANT
235
Above all the troops appreciated Grants
unassuming manner. Most generals went about
attended by a retinue of immaculately tailored
staff officers. Grant usually rode alone, except
for an orderly or two to carry messages if the
need arose. Another soldier said the soldiers
looked on Grant as a friendly partner, not an
arbitrary commander. Instead of cheering as he
rode by, they would greet him as they would
address one of their neighbors at home. Good
morning, General, Pleasant day, General
There was no nonsense, no sentiment only a plain
businessman of the republic, there for the one
single purpose of getting that command over the
river in the shortest time possible. Grant
5-feet 8-inches with a slouch/232 After the
victory at Chattanooga The Union senior
officers rode past the Confederates smugly
without any sign of recognition except by one.
When General Grant reached the line of ragged,
filthy, bloody, despairing prisoners strung out
on each side of the bridge, he lifted his hat and
held it over his head until he passed the last
man of that living funeral cortege. He was the
only officer in that whole train who recognized
us as being on the face of the earth./ 281
Grant was unhappy about going into winter
quarters. He saw no reason to keep the army idle,
and the pause would give the rebels time to
reorganize./282
236
The Union senior officers rode past the
Confederates smugly without any sign of
recognition except by one. When General Grant
reached the line of ragged, filthy, bloody,
despairing prisoners strung out on each side of
the bridge, he lifted his hat and held it over
his head until he passed the last man of that
living funeral cortege. He was the only officer
in that whole train who recognized us as being on
the face of the earth. quote within a quote
from diary of a Confederate soldier
237
From LEE KENNETTs SHERMAN Grant tended to be
a simple listener when these two strategies for
taking Vicksburg were being discussed. His own
preference may have been impelled as much by
natural inclination as by any arguments he heard.
He wrote afterward One of my superstitions had
always been when I started to go anywhere or to
do anything, not to turn back, or stop, until the
thing intended was accomplished./ 202
238
CWVA to MBWA In these days of telegraph and
steam I can command while traveling and visiting
about. U.S. GrantManaging by wandering
around HP circa 1980Source Ulysses S. Grant,
by Geoffrey Perret
239
"The art of war is simple enough. Find out where
your enemy is. Get at him as soon as you can.
Strike at him as hard as you can and as often as
you can, and keep moving on." Grant, courtesy
Richard Cauley at tompeters.com (original source
unknown)
240
The art of war does not require complicated
maneuvers the simplest are the best, and common
sense is fundamental. From which one might wonder
how it is generals make blunders it is because
they try to be clever. Napoleon on Simplicity,
from Napoleon on Project Management by Jerry
Manas.
241
This adolescent incident of getting from
point A to point B is notable not only because
it underlines Grants fearless horsemanship and
his determination, but also it is the first known
example of a very important peculiarity of his
character Grant had an extreme, almost phobic
dislike of turning back and retracing his steps.
If he set out for somewhere, he would get there
somehow, whatever the difficulties that lay in
his way. This idiosyncrasy would turn out to be
one the factors that made him such a formidable
general. Grant would always, always press
onturning back was not an option for him.
Michael Korda, Ulysses Grant
242
Relentless One of my superstitions had always
been when I started to go anywhere or to do
anything, not to turn back , or stop, until the
thing intended was accomplished. Grant
243
Relentless One of my superstitions had always
been when I started to go anywhere, or to do
anything, not to turn back, or stop, until the
thing intended was accomplished. I have
frequently started to go places where I had never
been and to which I did not know the way,
depending upon making inquiries along the road.
And if I got past the place without knowing it, I
would not turn back but instead go on until a
road was found turning in the right direction,
take that, and come in on the other side.
Grant
244
TPs take Intuition takes precedence (listen
attentively but act on intuition) Move today gt
perfect plan tomorrow subsequent Patton line
Great advantage When moving, you know what
youre up to and youre moving the one sitting
still is, thence, always reactive Boyd
quickest O.O.D.A. loops/Observe. Orient. Decide.
Act. Disorient enemy Action! ... Keep moving!
Engage! Offense! weakness-strength cant
even imagine enemy counter-attacking little
conception of defense Momentum! . Keep em
off balance Adjust Adapt Opportunism!
Constantly revise in accordance with conditions
and opportunities in the field life excellence
at Plan B Doggedness Relentless!! trait
shaped in early childhood Never retreat
Simplicity! Wide latitude for division
commanders minimum written orders, conferences,
etc keep his own council HQ is Grant his
horse no retinue! commune with soldiers/exude
quiet confidence/Approachable decent
Self-accountability! Evade orders (or ignore)
Share harm hardship total victory/ demand
unconditional surrenderGs first claim to fame
Nelson other Admirals avoid loss, friend and
foe as in Grants case vs Nelsons seek victory
Life 101 politics between the Generals
E.g., Grant Halleck
245
Insubordinate (when it comes to
delays)/NAction-oriented/Offense/Total
v
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