The Challenge: To Create More Value in All Negotiations

1
LONG Tom Peters Sustaining EXCELLENCE!
Jabil Circuit/Officers Meeting 2013 TradeWinds
Resort/St. Pete Beach/02 May 2013 (slides _at_
tompeters.com/excellencenow.com)
2
I am often asked
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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
4
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 Buy a very
large one and just wait. Paul Ormerod, Why
Most Things Fail Evolution, Extinction and
Economics
5
Mr. Foster and his McKinsey colleagues collected
detailed performance data stretching back 40
years for 1,000 U.S. companies. They found that
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
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Its just a fact Survivors underperform.
Dick Foster
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Data drawn from the real world attest to a fact
that is beyond our control Everything in
existence tends to deteriorate. Norberto
Odebrecht, Education Through Work
8
Dick Kovacevich You dont get better by being
bigger. You get worse.
9
Conrad Hilton, at a gala celebrating his career
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Conrad Hilton, at a gala celebrating his career,
was called to the podium and asked, What were
the most important lessons you learned in your
long and distinguished career? His answer
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Remember to tuck the shower curtain inside the
bathtub.
12
Sports You beat yourself!
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Execution is strategy. Fred Malek
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Execution is the job of the business
leader.Larry Bossidy Ram Charan/ Execution
The Discipline of Getting Things Done
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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
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(1) Sum of Projects Goal (Vision)
(2) Sum of Milestones Project(3)
Rapid Review Truth-telling
Accountability/ Adjustment
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REALISM is the heart of execution. Larry
Bossidy Ram Charan/Execution The Discipline
of Getting Things Done
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Costco figured out the big, simple things and
executed with total fanaticism. Charles
Munger, Berkshire Hathaway
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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
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EXCELLENCE IN EXECUTION DEEPEST BLUE OCEAN
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Really First Things Before First Things
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If the regimental commander lost most of his 2nd
lieutenants and 1st lieutenants and captains and
majors, it would be a tragedy. If he lost his
sergeants it would be a catastrophe. The Army and
the Navy are fully aware that success on the
battlefield is dependent to an extraordinary
degree on its Sergeants and Chief Petty Officers.
Does industry have the same awareness?
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People leave managers not companies. Dave
Wheeler
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Suggested addition to your statement of Core
Values We are obsessed with developing a cadre
of 1st line managers that is second to nonewe
understand that this cadre per se is arguably one
of our top two or three most important Strategic
Assets.
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Really First Things Before First Things
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XFX 1 Cross-Functional eXcellence
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Never waste a lunch!
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XF lunches Measure! Monthly! Part of
evaluation! The PAs Club.
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XFX/Typical Social
Accelerators 1. EVERYONEs more or less JOB
1 Make friends in other functions!
(Purposefully. Consistently. Measurably.) 2. Do
lunch with people in other functions!!
Frequently!! (Minimum 10 to 25 for everyone?
Measured.) 3. Ask peers in other functions for
references so you can become conversant in their
world. (Its one helluva sign of ...
GIVE-A-DAMN-ism.) 4. Religiously invite
counterparts in other functions to your team
meetings. Ask them to present cool stuff from
their world to your group. (Useful. Mark of
respect.) 5. PROACTIVELY SEEK EXAMPLES OF TINY
ACTS OF XFX TO ACKNOWLEDGEPRIVATELY AND
PUBLICALLY. (Bosses ONCE A DAY make a
short call or visit or send an email of Thanks
for some sort of XFX gesture by your folks and
some other functions folks.) 6. Present
counterparts in other functions awards for
service to your group. Tiny awards at least
weekly and an Annual All-Star Supporters from
other groups Banquet modeled after superstar
salesperson banquets.
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Present counterparts in other functions
recognition/awards for service to your group
Tiny awards at least weekly. An Annual All-Star
Supporters from other groups Banquet modeled
after and equivalent to! superstar salesperson
banquets.
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XFX/ Typical Social
Accelerators 16. Formal evaluations. Everyone,
starting with the receptionist, should have a
significant XF rating component in their
evaluation. (The XFX Performance should be
among the Top 3 items in all managers
evaluations.) 17. Every functional unit should
have strict and extensive measures of customer
satisfaction based on evaluations from other
functions of its usefulness and effectiveness and
value-added to the enterprise as a whole. 18.
Demand XF experience for, especially, senior
jobs. For example, the U.S. military requires all
would-be generals and admirals to have served a
full tour in a job whose only goals were
cross-functional achievements. 19. Deep dip.
Dive three levels down in the organization to
fill a senior role with some one who has been
noticeably pro-active on adding value via
excellent cross-functional integration. 20. XFX
is PERSONAL as well as about organizational
effectiveness. PXFX Personal XFX is arguably
the 1 Accelerant to personal successin terms of
organizational career, freelancer/Brand You, or
as entrepreneur. 21. Excellence! There is a
State of XF Excellence per se. Talk it up
constantly. Pursue it. Aspire to nothing less.
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Formal evaluations. Everyone, starting with the
receptionist, should have a significant XFX
rating component in their evaluation. (The XFX
Performance should be among the Top 3 items in
all managers evaluations.)
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ALL HAIL THOSE WHO HELP!
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THEY ALL GOTTA SEE THE ONE WHO SACRIFICED TO
HELP SOMEONE GET IMMEDIATE FEEDBACK-KUDOS.
(PERHAPS MORE RECOGNITION THAN THE PRINCIPAL
DOER.)
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Suggested addition to your statement of Core
Values We will not rest until seamless
cross-functional integration/communication has
become our primary source of value-added.
EXCELLENCE in cross-functional integration shall
become a daily operational passion for 100 of
us.
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ONE Act of XFX Enhancement every day!
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Case
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hundreds of times better here
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William Mayo, 1910, on the Clinics Two Core
Values Patient-centered care Team medicine
(medicine as a co-operative science) Source
Leonard Berry Kent Seltman, Orchestrating the
Clues of Quality, Chapter 7 from Management
Lessons From Mayo Clinic
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I am hundreds of times better here than in
my prior hospital assignment because of the
support system. Its like you are 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,
from Management Lessons From Mayo Clinic
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WOW!!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
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Really First Things Before First Things
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The doctor interrupts after Source
Jerome Groopman, How Doctors Think
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18
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18 seconds!
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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. (Though women
are far better at it
than men.) 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.) cont.
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Listening is ... the engine of superior
EXECUTION. Listening is ... the key to making the
Sale. Listening is ... the key to Keeping the
Customers 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
Networkings 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!
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If you agree with the above, shouldnt listening
be ... a Core Value? If you agree with the above,
shouldnt listening be ... perhaps Core Value
1? (We are Effective Listenerswe treat
Listening EXCELLENCE as the Centerpiece of our
Commitment to Respect and Engagement and
Community and Growth.) If you agree, shouldnt
listening be ... a Core Competence? If you agree,
shouldnt listening be ... Core Competence 1? If
you agree, shouldnt listening be ... an explicit
agenda item at every Meeting? If you agree,
shouldnt listening be ... our Strategyper se?
(Listening Strategy.) If you agree, shouldnt
listening be ... the 1 skill we look for in
Hiring (for every job)?
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Listen Profession Study practice
evaluation Enterprise value
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Really First Things Before First Things
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Whine all you want, but meetings are what you
boss do!
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Meetings 1 leadership opportunity
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Meeting Every meeting that does not stir the
imagination and curiosity of attendees and
increase bonding and co-operation and engagement
and sense of worth and motivate rapid action and
enhance enthusiasm is a permanently lost
opportunity.
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Tom Peters Sustaining EXCELLENCE!
Jabil Circuit/Officers Meeting 2013 TradeWinds
Resort/St. Pete Beach/02 May 2013 (slides _at_
tompeters.com/excellencenow.com)
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1.
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Business has to give people enriching, rewarding
lives or it's simply not worth doing.
Richard Branson
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You have to treat your employees like
customers. Herb Kelleher, upon being asked his
secret to successSource Joe Nocera, NYT,
Parting Words of an Airline Pioneer, on the
occasion of Herb Kellehers retirement after 37
years at Southwest Airlines (SWAs 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 AAs
Annual Meeting)
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"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"
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Employees who don't feel significant rarely make
significant contributions. Mark Sanborn
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I didnt 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. Thats what were
talking about, nothing less. Barry Gibbons
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Amen!What creates trust, in the end, is the
leaders manifest respect for the followers.
Jim OToole, Leading Change
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"If you want staff to give great service, give
great service to staff." Ari Weinzweig,
Zingerman's
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EMPLOYEES FIRST, CUSTOMERS SECOND Turning
Conventional Management Upside Down Vineet
Nayar/CEO/HCL Technologies
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No matter what the situation, the great
managers first response is always to think
about the individual concerned and how things can
be arranged to help that individual experience
success. Marcus Buckingham, The One Thing You
Need to Know
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Brand Talent.
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Our MissionTo develop and manage talentto
apply that talent,throughout the world, for the
benefit of clientsto do so in partnership to
do so with profit.WPP
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Leaders do people. Period. Anon.
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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
leadersthe alpha and the omega and everything
in betweenis 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. Weleaders of every
stripeare 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.
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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.)
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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.)
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3 People
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The ONE Question In the last year 3 years,
current job, name the three people whose
growth youve most contributed to. Please explain
where they were at the beginning of the year,
where they are today, and where they are heading
in the next 12 months. Please explain in
painstaking detail your development strategy
in each case. Please tell me your biggest
development disappointmentlooking back, could
you or would you have done anything differently?
Please tell me about your greatest development
triumphand disasterin the last five years. What
are the three big things youve learned about
helping people grow along the way?
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2/year legacy.
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Promotion Decisionslife and death
decisionsSource Peter Drucker, The Practice
of Management
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A man should never be promoted to a
managerial position if his vision focuses on
peoples weaknesses rather than on their
strengths. Peter Drucker, The Practice of
Management
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Andrew Carnegies Tombstone Inscription Here
lies a manWho knew how to enlistIn his
serviceBetter men than himself.Source Peter
Drucker, The Practice of Management
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The leaders of Great Groups love talent
and know where to find it. They revel in the
talent of others. Warren Bennis Patricia
Ward Biederman, Organizing Genius
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Les Wexner From sweaters to people! Limited
Brands founder Les Wexner queried on astounding
long-term successsaid, in effect, it happened
because he got as excited about developing
people as he had been about predicting fashion
trends in his early years
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Unremarkable except for RESULTS Superb people
developer (her/his folks invariably amazed at
what theyve accomplished!)
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70 Cents
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In short, hiring is the most important aspect
of business and yet remains woefully
misunderstood. Source Wall Street Journal,
10.29.08, review of Who The A Method for
Hiring, Geoff Smart and Randy Street
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Development can help great people be even
betterbut if I had a dollar to spend, Id spend
70 cents getting the right person in the door.
Paul Russell, Director, Leadership and
Development, Google
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When assessing candidates, the first thing I
looked for was energy and enthusiasm for
execution Does she talk about the thrill of
getting things done, the obstacles overcome, the
role her people played or does she keep
wandering back to strategy or philosophy?
Larry Bossidy, Execution
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C-level?
85
In the Army, 3-star generals worry about
training. In most businesses, it's a ho hum
mid-level staff function.
86
Why is intensive-extensive training obvious for
the army navy sports teams performing arts
groupsbut not for the average business?
87
I would hazard a guess that most CEOs see IT
investments as a strategic necessity, but see
training expenses as a necessary evil.
88
(1) Training merits C-level status! (2)
Top trainers should be paid a kings
ransomand be of the same caliber as
top marketers or researchers.
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No company ever Expended too much thought/Effort/
on training! ESPECIALLY
small company
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training, TRAINING and M-O-R-E
T-R-A-I-N-I-N-G CINCPAC Nimitz to CNO
King/actual emphasis in written
communication /1943/on 1 need for U.S. Navy in
South Pacific
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Heroism Training gt Patriotism
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2X
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TP How to throw 500,000 into the sea in one
easy lesson!!
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lt CAPEXgt PEOPLE!
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2X Source Container Store/Goal increase
average sale per shopper
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The Memories That Matter.
97
The Memories
That Matter The people you developed who went on
to stellar accomplishments inside or outside
the company. The (no more than) two or three
people you developed who went on to create
stellar institutions of their own. The long shots
(people with a certain something) you bet on
who surprised themselvesand your peers. The
people of all stripes who 2/5/10/20 years
later say You made a difference in my life,
Your belief in me changed everything. The sort
of/character of people you hired in general. (And
the bad apples you chucked out despite some
stellar traits.) A handful of projects (a half
dozen at most) you doggedly pursued that
still make you smile and which fundamentally
changed the way things are done inside or
outside the company/industry. The supercharged
camaraderie of a handful of Great Teams aiming
to change the world.
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The Memories
That Matter Belly laughs at some of the
stupid-insane things you and your mates
tried. Less than a closet full of I should have
A frighteningly consistent record of having
invariably said, Go for it! Not intervening in
the face of considerable lossrecognizing that
to develop top talent means tolerating
failures and allowing the person who screwed
up to work their own way through and out of
their self-created mess. Dealing with one or more
crises with particular/memorable
aplomb. Demanding CIVILITY regardless of
circumstances. Turning around one or two or so
truly dreadful situationsand watching almost
everyone involved rise to the occasion (often to
their own surprise) and acquire a renewed
sense of purpose in the process. Leaving
something behind of demonstrable-lasting worth.
(On short as well as long assignments.)
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The Memories
That Matter Having almost always (99 of the
time) put Quality and Excellence ahead of
Quantity. (At times an unpopular approach.) A
few critical instances where you stopped short
and could have done morebut to have done
so would have compromised your and your
teams character and integrity. A sense of time
well and honorably spent. The expression of
simple human kindness and considerationno
matter how harried you may be/may have
been. Understood that your demeanor/expression of
character always set the toneespecially in
difficult situations. Never (rarely) let your
external expression of enthusiasm/
determination flagthe rougher the times, the
more your expressed energy and bedrock
optimism and sense of humor showed. The respect
of your peers. A stoic unwillingness to badmouth
otherseven in private.
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The Memories
That Matter An invariant creed When something
goes amiss, The buck stops with me when
something goes right, it was their doing, not
yours. A Mandela-like naïve belief that others
will rise to the occasion if given the
opportunity. A reputation for eschewing the
trappings of power. (Strong self-
management of tendencies toward arrogance or
dismissiveness.) Intense, even driven but not
to the point of being careless of others in
the process of forging ahead. Willing time and
again to be surprised by ways of doing things
that are inconsistent with your certain
hypotheses. Humility in the face of others, at
every level, who know more than you about
the way things really are. Bit your tongue
on a thousand occasionsand listened, really
really listened. (And been constantly delighted
when, as a result, you invariably learned
something new and invariably increased your
connection with the speaker.)
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The Memories
That Matter Unalloyed pleasure in being informed
of the fallaciousness of your beliefs by
someone 15 years your junior and several rungs
below you on the hierarchical ladder.
Selflessness. (A sterling reputation as a guy
always willing to help out with alacrity
despite personal cost.) As thoughtful and
respectful, or more so, toward thine enemies
as toward friends and supporters. Always and
relentlessly put at the top of your list/any
list being first and foremost of service to
your internal and external constituents.
(Employees/Peers/ Customers/Vendors/Community.)
Treated the term servant leadership as holy
writ. (And preached servant leadership to
othersnew non-managerial hire or old pro,
age 18 or 48.)
102
The Memories
That Matter Created the sort of workplaces youd
like your kids to inhabit. (Explicitly
conscious of this Would I want my kids to
work here? litmus test.) A certifiable nut
about quality and safety and integrity. (More or
less regardless of any costs.) A notable few
circumstances where you resigned rather than
compromise your bedrock beliefs. Perfectionism
just short of the paralyzing variety. A self- and
relentlessly enforced group standard of
EXCELLENCE-in-all-we-do/EXCELLENCE in our
behavior toward one another.
103
Joe J. Jones 1942 2010 Net
Worth21,543,672.48
104
Not.
105
2.
106
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
107
Breakthrough 82 People! Customers! Action!
Values! In Search of Excellence
108
Hard is Soft. Soft is Hard.
109
Hard numbers, plans is Soft. Soft
people/relationships is Hard.
110
Why in the World did you go to Siberia?
111
Enterprise (at its best) An emotional, vital,
innovative, joyful, creative, entrepreneurial
endeavor that elicits maximum
concerted human
potential in the
wholehearted pursuit of EXCELLENCE in service
of others.Employees, Customers, Suppliers,
Communities, Owners, Temporary partners
112
Excellence
113
At a party
114
At a party given by a billionaire on Shelter
Island, Kurt Vonnegut informs his pal, Joseph
Heller, that their host, a hedge fund manager,
had made more money in a single day than Heller
had earned from his wildly popular novel Catch-22
over its whole history. Heller responds
115
At a party given by a billionaire on Shelter
Island, Kurt Vonnegut informs his pal, Joseph
Heller that their host, a hedge fund manager,
had made more money in a single day than Heller
had earned from his wildly popular novel Catch-22
over its whole history. Heller responds Yes,
but I have something he will never have
Source John Bogle, Enough. The Measures of
Money, Business, and Life (Bogle is founder of
the Vanguard Mutual Fund Group)
116
At a party given by a billionaire on Shelter
Island, Kurt Vonnegut informs his pal, Joseph
Heller that their host, a hedge fund manager,
had made more money in a single day than Heller
had earned from his wildly popular novel Catch-22
over its whole history. Heller responds Yes,
but I have something he will never have
enough. Source John Bogle, Enough. The
Measures of Money, Business, and Life (Bogle is
founder of the Vanguard Mutual Fund Group)
117
Too Much Cost, Not Enough Value Too Much
Speculation, Not Enough Investment Too Much
Complexity, Not Enough Simplicity Too Much
Counting, Not Enough Trust Too Much Business
Conduct, Not Enough Professional Conduct Too
Much Salesmanship, Not Enough Stewardship Too
Much Focus on Things, Not Enough Focus on
Commitment Too Many Twenty-first Century
Values, Not Enough Eighteenth-Century
Values Too Much Success, Not Enough
Character Source Chapter titles from Jack
Bogle, Enough.
118
(No Transcript)
119
3.
120
In Search of Excellence /1982 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
121
READY.FIRE!AIM.H. Ross Perot (vs Aim! Aim!
Aim! /EDS vs GM/1985)
122
Burt Rutan wasnt a fighter jock he was an
engineer who had been asked to figure out why the
F-4 Phantom was flying pilots into the ground in
Vietnam. While his fellow engineers attacked such
tasks with calculators, Rutan insisted on
considering the problem in the air. A near-fatal
flight not only led to a critical F-4
modification, it also confirmed for Rutan a
notion he had held ever since he had built model
airplanes as a child. The way to make a better
aircraft wasnt to sit around perfecting a
design, it was to get something up in the air and
see what happens, then try to fix whatever goes
wrong. Eric Abrahamson David Freedman,
Chapter 8, Messy Leadership, from A Perfect
Mess The Hidden Benefits of Disorder
123
1/45
124
Lesson45 WTTMSW
125
WHOEVER TRIES THE MOST STUFF WINS
126
Better yet WTTMSTFW
127
WHOEVER TRIES THE MOST STUFF THE FASTEST WINS
128
Better yet WTTMS(ASTMSU)TFW
129
WHOEVER TRIES THE MOST STUFF (AND SCREWS THE
MOST STUFF UP) THE FASTEST WINS
130
TRY IT .TRY IT.TRY IT.
131
Try It.Try It.Try It.Try It.Try It.Try
It.Try It.Try It.Try It.Try It.Try It.Try
It.Try It.Try It.Try It.Try It.Try It.Try
It.Try It.Try It.Try It.Try It.Try It.Try
It.Try It.
132
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
133
Culture of PrototypingEffective prototyping
may be THE MOST VALUABLE CORE COMPETENCE an
innovative organization can hope to have.
Michael Schrage

134
DEMO OR DIE! Source This was the approach
championed by Nicholas Negroponte which vaulted
his MIT Media Lab to the forefront of
IT-multimedia innovation. It was his successful
alternative to the traditional MIT-academic
publish or perish. Negropontes
rapid-prototyping version was emblematic of the
times and the pace and the enormity of the
opportunity. (NYTimes/0426.11)
135
DEMO. NOW. OR. DIE.
136
mean-time-to-prototypeSource Sony, via
Michael Schrage
137
Whoever Creates The Quickest Prototypes Wins
138
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
139
EXPERIMENT FEARLESSLYSource BusinessWeek,
Type A Organization Strategies How to Hit a
Moving TargetTactic 1RELENTLESS 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)
140
FAIL. FORWARD. FAST.High Tech CEO,
Pennsylvania
141
No matter. Try again. Fail again. Fail
better.Samuel Beckett
142
Read ItRichard Farson Ralph Keyes Whoever
Makes the Most Mistakes Wins The Paradox of
Innovation
143
The secret of fast progress is inefficiency,
fast and furious and numerous failures.Kevin
Kelly
144
FAIL FASTER. SUCCEED SOONER.David
Kelley/IDEO
145
REWARD excellent failures. PUNISH mediocre
successes.Phil Daniels, Sydney exec
146
It is not enough to tolerate failureyou must
celebrate failure. Richard Farson (Whoever
Makes the Most Mistakes Wins)
147
I used to play pretty serious chess. Its very
easy for methough I find it is difficult for a
lot of peopleto recognize that a lot of the
things you do are mistakes. One of the things
very important to becoming a good chess player
was losing a lot of games. You get to the point
that when you lose a game, you dont beat
yourself up. You try to learn from it. We try to
encourage that attitude. Alan Trefler, CEO,
Pegasystems (in Corner Office, New York Times)
148
In business, you reward people for taking risks.
When it doesnt work out you promote thembecause
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)
149
YOU MISS 100 OF THE SHOTS YOU NEVER TAKE.
Wayne Gretzky
150
Iron Innovation Equality Law The Quality and
Quantity and Imaginativeness of Innovation and
R D per se shall be the same in all
functions e.g., in HR and purchasing as much as
in marketing or product development.
151
3A.
152
Skunkworks Skunk Camps SkunksSkunking
Skunkworks (my preference) or Skunk
Works (Lockheed)
153
Skunkworks 1 person for 3 months
154
Never doubt that a small group of committed
people can change the world. Indeed it is the
only thing that ever has. Margaret Mead
155
the 1 solutionInnovation grants,
etc.Source Scott Bedbury
156
THE PARALLEL UNIVERSE AXIOM
157
Venture fund Gerstner/Amex, Dow/Marriott,
Grove/Intel, DuPont/AI, Bedbury/ Starbucks, etc.
158
Somewhere in your organization, groups of people
are already doing things differently and
better. To create lasting change, find these
areas of positive deviance and fan the flames.
Richard Pascale Jerry Sternin, Your
Companys Secret Change Agents, HBR (The late
Mr. Sternin was an incredibly successful change
agent in developing countries)
159
3B.
160
The Ultimate Try It Strategy The Case for
Decentralization
161
Decentralization vs Centralization Thats ALL
There Is (from childrearing 101 to the
Federalist Papers to Org.2012)
162
Rose gardeners face a choice every spring. The
long-term fate of a rose garden depends on this
decision. If you want to have the largest and
most glorious roses of the neighborhood, you will
prune hard. This represents a policy of low
tolerance and tight control. You force the plant
to make the maximum use of its available
resources, by putting them into the the roses
core business. Pruning hard is a dangerous
policy in an unpredictable environment. Thus, if
you are in a spot where you know nature may play
tricks on you, you may opt for a policy of high
tolerance. You will never have the biggest roses,
but you have a much-enhanced chance of having
roses every year. You will achieve a gradual
renewal of the plant. In short, tolerant pruning
achieves two ends (1) It makes it easier to cope
with unexpected environmental changes. (2) It
leads to a continuous restructuring of the plant.
The policy of tolerance admittedly wastes
resourcesthe extra buds drain away nutrients
from the main stem. But in an unpredictable
environment, this policy of tolerance makes the
rose healthier in the long run. Arie De Geus,
The Living Company
163
In short, tolerant pruning achieves two ends
(1) It makes it easier to cope with unexpected
environmental changes. (2) It leads to a
continuous restructuring of the plant. The policy
of tolerance admittedly wastes resourcesthe
extra buds drain away nutrients from the main
stem. But in an unpredictable environment, this
policy of tolerance makes the rose healthier in
the long run.
164
Resilience per se should/must become a corporate
value and explicit part of business strategy!
165
Lessons from the Bees!Since merger mania is
now the rage, what lessons can the bees teach us?
A simple one Merging is not in nature.
Natures process is the exact opposite one of
growth, fragmentation and dispersal. There is no
megalomania, no merging for mergings sake. The
point is that unlike corporations, which just get
bigger, bee colonies know when the time has come
to split up into smaller colonies which can grow
value faster. What the bees are telling us is
that the corporate world has got it all wrong.
David Lascelles, Co-director of The Centre for
the Study of Financial Innovation UK
166
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
167
Decentralization is not a piece of paper. Its
not me. Its either in your heart, or not.
Brian Joffe/BIDvest
168
Innovation Enemy 1I.C.D.Note 1
Inherent/Inevitable/Immutable Centralist
DriftNote 2 Jim Burkes 1-word vocabulary No.
169
Public Enemy 1 I.C.D. Immutable Centralist
Drift Once a system grows sufficiently complex
and centralized, it doesnt matter how badly our
best and brightest foul things up. Every crisis
increases their authority, because they seem to
be the only ones who understand the system well
enough to fix it. But their fixes tend to make
the system even more complex and centralized, and
more vulnerable to the next national-security
surprise, the next natural disaster, the next
economic crisis. Ross Douthat/NYTimes
170
I do not rule Russia. Ten-thousand clerks do.
Czar Nicholas I
171
"Every great cause begins as a movement, becomes
a business, eventually degenerates into a
racket." Eric Hoffer
172
Help wanted I.C.D. COPS
173
Best practice ZERO Standard Deviation
174
4.
175
MITTELSTAND agile creatures darting
between the legs of the multinational monsters
(Bloomberg BusinessWeek, 10.10) E.g. Goldmann
Produktion
176
THE RED CARPET STORE (Joel Resnick/Flemington NJ)
177
Motueka, New Zealand Coppins Sea
Anchors PSA/Para-sea anchors Source Kia
Ora/Air New Zealand magazine
178
Basement Systems Inc.
179
Jims Mowing Canada Jims Mowing UK Jims
Antennas Jims Bookkeeping Jims Building
Maintenance Jims Carpet Cleaning Jims Car
Cleaning Jims Computer Services Jims Dog
Wash Jims Driving School Jims Fencing Jims
Floors Jims Painting Jims Paving Jims Pergolas
gazebos Jims Pool Care Jims Pressure
Cleaning Jims Roofing Jims Security Doors Jims
Trees Jims Window Cleaning Jims
Windscreens Note Download, free, Jim Penmans
book What Will They Franchise Next? The Story
of Jims Group
180
Retail Superstars Inside the 25 Best Independent
Stores in America by George Whalin
181
Jungle Jims International Market, Fairfield,
Ohio An adventure in shoppertainment, as
Jungle Jims calls it, begins in the parking lot
and goes on to 1,600 cheeses and, yes, 1,400
varieties of hot sauce not to mention 12,000
wines priced from 8 to 8,000 a bottle all this
is brought to you by 4,000 vendors. Customers
come from every corner of the globe. Bronners
Christmas Wonderland, Frankenmuth, Michigan, pop
5,000 98,000-square-foot shop features the
likes of 6,000 Christmas ornaments, 50,000 trims,
and anything else you can name if it pertains to
Christmas. Source George Whalin, Retail
Superstars
182
Be the best. Its the only market thats not
crowded. From Retail Superstars Inside the 25
Best Independent Stores in America, George Whalin
183
5.
184
You will become like the five people you
associate with the mostthis can be either a
blessing or a curse. Billy Cox
185
The Bottleneck
186
The Bottleneck is at the Where are you
likely to find people with the least diversity of
experience, the largest investment in the past,
and the greatest reverence for industry dogma
Top of the Bottle Gary Hamel/Harvard
Business Review
187
The Hang Out Axiom I WE ARE WHAT WE EAT/WE ARE
THE COMPANY WE KEEP
188
The We are what we eat/ We are who we hang
out with Axiom At its core, every (!!!)
relationship-partnership decision (employee,
vendor, customer, etc., etc.) is a strategic
decision about Innovate, Yes or No
189

• Measure/Manage Portfolio Strangeness/
  Quality
• 1. Customers
• 2. Vendors
• 3. Out-sourcing Partners
• 4. Acquisitions
• 5. Purposeful Theft
• 6. Diversity/diversity
• 7. Diversity/Crowd-sourcing
• Diversity/Weird
• Diversity/Curiosity
• 10. Benchmarks
• 11. Calendar
• 12. MBWA
• 13. Lunch/General
• 14. Lunch/Other functions
• 15. Location/Internal
• 16. Location/HQ
• 17. Top team

190
DONT BENCHMARK, FUTUREMARK! Impetus The
future is already here its just not evenly
distributed William Gibson
191
DONT BENCHMARK, OTHER MARK!
192
The short road to ruin is to emulate the
methods of your adversary. Winston Churchill
193
EMPLOYEES Are there enough weird people in the
lab these days?Source V. Chmn.,
pharmaceutical house, to a lab director
194
CEO A.G. Lafley has shifted PGs focus on
inventing all its own products to developing
OTHERS INVENTIONS AT LEAST HALF THE TIME. One
successful example, Mr. Clean Magic Eraser, is
based on a product found in an Osaka market.
Fortune
195
Diverse groups of problem solversgroups of
people with diverse toolsconsistently
outperformed groups of the best and the
brightest. If I formed two groups, one random
(and therefore diverse) and one consisting of the
best individual performers, the first group
almost always did better. DIVERSITY TRUMPED
ABILITY. Scott Page, The Difference How the
Power of Diversity Creates Better Groups, Firms,
Schools, and Societies
196
Diversity per se is a key maybe the key
to effective and innovative decision making.
197
Whos the most interesting person youve met in
the last 90 days? How do I get in touch with
them? Fred Smith
198
Once a month on, say, a Friday, invite somebody
intriguing, in any field, to have lunch with
your gang. Call it Freak Fridays
199
Vanity Fair What is your most marked
characteristic? Mike Bloomberg Curiosity.
200
CQ/Curiosity QuotientHire for it in more or
less 100 slots/Promote for it
201
Do one thing every day that scares you.
Eleanor Roosevelt
202
Normal 0 for 800
203
Alas Education almost invariably kills
creativity
204
Every child is born an artist. The trick is to
remain an artist. Picasso
205
It is nothing short of a miracle that modern
methods of instruction have not yet entirely
strangled the holy curiosity of inquiry.
Albert Einstein
206
Human creativity is the ultimate economic
resource. Richard Florida, The Rise of the
Creative Class
207
Co-creation Gamechanger!
208
(No Transcript)
209
The Billion-man Research Team Companies
offering work to online communities are reaping
the benefits of crowdsourcing. Headline, FT
210
Rob McEwen/CEO/Goldcorp Inc./Red Lake
GOLDSource Wikinomics How Mass Collaboration
Changes Everything, Don Tapscott Anthony
Williams
211
6.
212
ForgetgtLearnThe problem is never how to get
new, innovative thoughts into your mind, but how
to get the old ones out. Dee Hock
213
Forgetting gtgt Learning
214
We need a FORMAL Forgetting Strategy.
215
7.
216
MORE MOORE
217
From SatisfactionTo Success
218
Results are measured by the success of all
those who have purchased your product or service
Jan Gunnarsson Olle Blohm, The Welcoming Leader
219
IBM
220
Lou, with all the money Ive spent with you
guys, why in the hell hasnt my business been
transformed?
221
IBMtoIBM
222
55BIBM Global Services/Systems integrator
of choice
223
Planetary Rainmaker-in-Chief!CEO Sam
Palmisanos strategy is to expand techs borders
by pushing usersand entire industriestoward
radically different business models. The payoff
for IBM would be access to an ocean of
revenuePalmisano estimates it at 500 billion a
year that technology companies have never been
able to touch. Fortune
224
You are headed for commodity hell if you dont
have services.Lou Gerstner, on IBMs coming
revolution (1997)
225
UPS
226
What Can Brown Do for You?Source ubiquitous
UPS ad campaign
227
Big Browns 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)
228
WHAT CAN BROWN DO FOR YOU?Its 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
229
THE GIANT STALKING BIG OIL HOW SCHLUMBERGER IS
REWRITING THE RULES OF THE ENERGY GAME. IPM
Integrated Project Management strays from
Schlumbergers traditional role as a service
provider and moves deeper into areas once
dominated by the majors. Source BusinessWeek
cover story
230
IPMs Chief Well do just about anything an
oilfield owner would want, from drilling to
production.
231
A 2008 BusinessWeek cover story informed us that
Schlumberger may well take over the world THE
GIANT STALKING BIG OIL How Schlumberger Is
Rewriting the Rules of the Energy Game. In
short, Schlumberger knows how to create and run
oilfields, anywhere, from drilling to fullscale
production to distribution. And the nugget is
hardcore, relatively small, technically
accomplished, highly autonomous teams. As China
and Russia, among others, make their move in
energy, state run companies are eclipsing the
major independents. (Chinas state oil company
just surpassed Exxon in market value.) At the
center of it all, abetting these new players who
are edging out the Exxons and BPs, the Kings of
Large-scale, Long-term Project Management wear
Schlumberger overalls. At the center of the
center of the Schlumberger empire is a
relatively newly configured outfit, reminiscent
of IBMs Global Services and UPS integrated
logistics experts and even Best Buys now
ubiquitous Geek Squads. The Schlumberger
version of IBM Global Services is simply called
IPM, for Integrated Project Management. It lives
in a nondescript building near Gatwick Airport,
and its chief says it will do just about
anything an oilfield owner would want, from
drilling to production. That is, as BusinessWeek
put it, IPM strays from Schlumbergers
traditional role as a service provider and moves
deeper into areas once dominated by the majors.
(My old pal was solo on remote offshore
platforms interpreting geophysical logs and the
like.)
232
GE Enterprise Solutions GE Enterprise
Solutions delivers high-impact, integrated
solutions that improve customers productivity
and profitability. Enterprise Solutions helps
customers compete and win in a changing global
environment by combining the power of GEs
intelligent technologies with its multi-industry
experience and expertise. Enterprise Solutions
comprises high-tech, high-growth businesses
including Sensing Inspection Technologies,
Security, GE Fanuc Intelligent Platforms, and
Digital Energy. The business has 17,000
customer-focused associates in more than 60
countries around the world. from GE.com
233
Instant Infrastructure GE Becomes a General
Store for Developing Countries headline/ NYT
234
UTC/Otis UTC/Carrier boxes to integrated
building systemselevators, air conditioners
235
MasterCard Advisors
236
LEAVE IT TO BEAVER.
237
Trapper lt20 per beaver pelt.Source WSJ
238
WDCP/WILDLIFE DAMAGE-CONTROL PROFESSIONAL
150 to remove problem beaver 750-1,000
for flood-control piping so that beavers can
stay. Source WSJ
239
Trapper RedneckWDCP PSF/ Professional
Services Provider
240
7X to 40Xfor Solution rather than
service transaction
241
8.
242
LITTLE BIG
243
1
244
7X. 730A-800P. F12A.730AM 715AM.800PM
815PM.
245
2
246
Dont like it? Dont pay. Source Granite Rock
Co.
247
3
248
Red light flashes -10
249
4
250
It BEGINS (and ENDS) in the
251
Parking lotDisney
252
5
253
National Brand/ 2-CENT candy
254
6
255
Big carts 1.5X Source WalMart
256
7
257
Bag sizes New markets B Source
PepsiCo
258
ltTGWand gtTGRThings Gone WRONG-Things
Gone RIGHT
259
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
260
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?
261
Acquire vs maintain 5X Recession goal Higher
market share current customers
262
CXOChief eXperience Officer
263
(1) Amenable to rapid experimentation/
failure free (PR, ) (2) Quick to
implement/ Quick to Roll out (3)
Inexpensive to implement/Roll out (4) Huge
multiplier (5) An Attitude
264

• Half-day/25 ideas
• One week/5 experiments
• (3) One month/Select best 2
• (4) 60-90 days/Roll out

265
9.
266
25
267
Im always stopping by our stores at least 25
a week. Im 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
SchultzSource Fortune, Secrets of Greatness
268
MBWAManaging By Wandering Around/HP
269
50Un-scheduled
270
MBWA 4
271
The four most important words in any
organization are
272
MBWA 8 Change the World With Four Words WHAT
DO YOU THINK? Source courtesy Dave Wheeler,
posted at tompeters.com
273
MBWA 8
274
MBWA 8 Change the World With EIGHT WordsWhat
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

275
MBWA 12
276
MBWA 12 Change the World With TWELVE
WordsWhat 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 Wha
t new thing have you learned in the last 24
hours?
277
MBWA 16
278
MBWA 16 Change the World With SIXTEEN
WordsWhat do you think?How can I help?What
have you learned?Thank you!Im
sorry.Dave Wheeler What are the four
most important words in the boss
lexicon?Boss as CHRO/Chief Hurdle Removal
Officer Wha
t new thing have you learned in the last 24
hours? Recognition-Ap
preciation POWER!
Accept responsibilities for
your blooperslarge or small

279
Tomorrow How many times will you ask the WDYT
question? Count em!! Practice makes better!
This is a STRATEGIC skill!
280
You Your Calendar
281
You Your calendarThe calendar NEVER lies.
282
YOUR CALENDAR KNOWS PRECISELY WHAT YOUREALLY
CARE ABOUT. DO YOU????
283
Dont gt Do Donting must be systematic gt
WILLPOWER
284
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
285
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
286
Its always showtime.David DAlessandro,
Career Warfare
287
I am a dispenser of enthusiasm. Ben Zander
288
Nothing is so contagious as enthusiasm.
Samuel Taylor Coleridge
289
A man without a smiling face must not open a
shop. Chinese Proverb
290
Me first!
291
To develop others, start with yourself.
Marshall Goldsmith
292
Being aware of yourself and how you affect
everyone around you is what distinguishes a
superior leader. Edie Seashore (Strategy
Business 45)
293
How can a high-level leader like _____ be so out
of touch with the truth about himself? Its more
common than you would imagine. 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 feedback especially
on people issues. Daniel Goleman (et al.),
The New Leaders
294
"Everyone thinks of changing the world, but no
one thinks of changing himself" Leo Tolstoy
295
"You will never change your life until you change
something you do daily. The secret of your
success is found in your daily routine." John C.
Maxwell
296
EXCELLENCE is not an "aspiration. EXCELLENCE
is THE NEXT FIVE MINUTES.
297
EXCELLENCE is not an "aspiration." EXCELLENCE is
THE NEXT FIVE MINUTES. EXCELLENCE is your next
conversation. Or not. EXCELLENCE is your next
meeting. Or not. EXCELLENCE is shutting up and
listeningreally listening. Or not. EXCELLENCE is
your next customer contact. Or not. EXCELLENCE is
saying Thank you for something small. Or
not. EXCELLENCE is the next time you shoulder
responsibility and apologize. Or not. EXCELLENCE
is waaay over-reacting to a screw-up. Or
not. EXCELLENCE is the flowers you brought to
work today. Or not. EXCELLENCE is lending a hand
to an outsider whos fallen behind schedule. Or
not. EXCELLENCE is bothering to learn the way
folks in finance or IS or HR think. Or
not. EXCELLENCE is waaay over-preparing for a
3-minute presentation. Or not. EXCELLENCE is
turning insignificant tasks into models of