The Challenge: To Create More Value in All Negotiations

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Tom Peters EXCELLENCE 31 Numbers 15
October 2013
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The whole story? Far from it! Nonetheless,
herewith a small selection of NUMBERS from my
MASTER presentation. Actually, they tell a lot of
the story.
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1,000,000
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China, the low wage nation? Yet ONE Chinese
companyChinas Foxconnwill implant 1,000,000
robots in just the next three years.
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26/0
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What about the people part of the equation?
Post-Great Recession Equipment Expenditures
26 payrolls 0
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5001
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Portent of things to come? Algorithms are now
encroaching on high-wage jobs Legal
industry/ Pattern Recognition/Discovery. Use of
eDiscovery algorithms translates into a need for
500 lawyers being reduced a need for
ONE. Source Race AGAINST the Machine, Erik
Brynjolfsson and Andrew McAfee
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2,700
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Gamification of everything is touted by some
Gamification presents the best tools humanity
has ever had to create and sustain engagement in
people. Gabe Zichermann Joselin Linder,
Gamification How Leaders Leverage Game Mechanics
to Crush the Competition But gamification is
not easy. This is what it means in game-world
You get a sense of the scale and intricacy of
the task by considering the sound effects alone
The game contains 54,000 pieces of audio and
40,000 lines of dialogue. There are 2,700
different noises for footsteps alone depending on
whose foot is stepping on what. Sam Leith on
Halo 3, from Jane McGonigal, Reality Is Broken
Why Games Make Us Better and How They Can Change
the World
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25
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MBWA/Managing By Wandering Around, Big Time 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 Schultz
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3K/5M
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More MBWA Peerless sports agent Mark McCormack
said its not-infrequently essential to travel
3,000 miles for a 5 minute meeting.
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50
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Most managers spend a great deal of time
thinking about what they plan to do, but
relatively little time thinking about what they
plan not to do. As a result, they become so
caught up in fighting the fires of the moment
that they cannot really attend to the long-term
threats and risks facing the organization. So the
first soft skill of leadership the hard way is to
cultivate the perspective of Marcus Aurelius
avoid busyness, free up your time, stay focused
on what really matters. Let me put it bluntly
every leader should routinely keep a substantial
portion of his or her timeI would say as much as
50 percentunscheduled. Only when you have
substantial slop in your scheduleunscheduled
timewill you have the space to reflect on what
you are doing, learn from experience, and recover
from your inevitable mistakes. Leaders without
such free time end up tackling issues Dov
Frohman ( Robert Howard), Leadership The Hard
Way Why Leadership Cant Be TaughtAnd How You
Can Learn It Anyway (Chapter 5, The Soft Skills
Of Hard Leadership)
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4
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Not an exaggeration The 4 most important words
in any organization are WHAT DO YOU THINK?
Dave Wheeler,
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8
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Change the World With 8 Words What do you
think?How can I help?
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12
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Change the World With 12 Words What do you
think?How can I help? What have you
learned?
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7/38/55
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Albert Mehrabians directional 7-38-55
Rule Your words 7 Your tone of voice
38 Your body language 55 7 of message
pertaining to feelings and attitudes is in the
words that are spoken. 38 of message
pertaining to feelings and attitudes is
paralinguistic (the way that the words are said).
55 of message pertaining to feelings and
attitudes is in facial expression.
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5/136
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There is now 1996 a meta-analysis of studies
of the comparative efficacy of clinical judgment
and actuarial prediction methods. Of 136
research studies from a wide variety of
predictive domains, not more than 5 percent show
the clinicians predictive procedure to be more
accurate than a statistical one. Paul Meehl,
Clinical versus Statistical Prediction
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18
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Listening skills? The best information concerning
a patients malady is the patient says Dr.
Jerome Groopman in How Doctors Think. Yet
research shows that the average doctor interrupts
the patient after 18 SECONDS.
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0/15
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Press Ganey Associates study of 139,380 patients
from 225 hospitals 0 of the top 15 factors
determining Patient Satisfaction referred to
patients health outcome.Instead Satisfaction
is directly related to Staff Interaction
directly correlated with Employee Satisfaction
Source Putting Patients First, Susan
Frampton, Laura Gilpin, Patrick Charmel
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53 53
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There are 53 players on the active roster of a
professional foot ball team in the U.S. Needless
to say, each one has a different role. Coaches
and their general managers spend countless
(literally) hours evaluating those players in
terms of there immediate and longterm usefulness.
Message 53 53. Each player is different and
perceived so. My bottom line What holds for a
professional football team holds for the
players in any and every organization.
Standardized evaluations are an abomination.
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1
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That paragon of excellent management, GE, says
that skills at evaluating people is its 1
differentiator. This from the mouth of Jack
Welch and his successor, Jeff Immelt.
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1
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I contend that the 1 problem in almost every
organization is failures of XF/cross-functional
co-ordination. Pursuing XFX/cross-functional
eXcellence thence becomes the 1 enterprise
opportunity. The pursuit of XFX requires
conscious and visible management each and every
day.
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70
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Hiring is hardly overlooked, but is rarely
taken anywhere nearly as seriously as it ought to
be 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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270/lt10
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I often believe that CEOs see big spending on,
say, IT as a crucial strategic investment.
And see training, by contrast, as a necessary
evil. To my mind, thats ass backwards. Training
is our most important investmentand the
CTO/Chief Training Officer ought to sit next to
the, say, CFO on the executive floor. Thats
obviously the story for the military, sports, and
the arts to name a few.The Container Store,
invariably in the Top 10 best companies to work
for in the USA, believes. The average retail
employee gets 16 hours of training The at the
Container Store 270 hours. Among other things,
employee turnover is lt10 versus a retail average
of gt100.
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gt2X/28T
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• W gt 2X (C I)
• Women now drive the global economy. Globally,
  they control about 20 trillion in consumer
  spending, and that figure could climb as high as
  28 trillion in the next five years. Their 13
  trillion in total yearly earnings could reach 18
  trillion in the same period. In aggregate, women
  represent a growth market bigger than China and
  India combinedmore than twice as big in fact.
  Given those numbers, it would be foolish to
  ignore or underestimate the female consumer. And
  yet many companies do just thateven ones that
  are confidant that they have a winning strategy
  when it comes to women. Consider Dells
• Source Michael Silverstein and Kate Sayre, The
  Female Economy, HBR, 09.09

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2.6/21
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At a Manhattan event, I got into conversation
with a very successful financial planner. He told
me that, having sensed an enormous opportunity,
he had re-oriented his practice in directions
consistent with an assessment of the attributes
women sought in a financial advisor. He
offered this startling (and powerful)
observation The relationships orientation
among women, Tom, is very real. For instance, my
male clients on average recommend me to 2.6
others. The comparable number of recommendations
by my women clients is 21! 2.6. 21. Wow!
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80
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Headline 2020 Women Hold 80 Percent of
Management and Professional JobsSource The
Extreme Future The Top Trends That Will Reshape
the World in the Next 20 Years, James Canton
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30
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Social
Business MillerCoors Gender imbalance. Women
of Sales peer support. Private network, Attrition
plummeted. Teva Canada Supply chain excellence
achieved. Share-Point/troubleshooting/Strategy-Net
s/hooked to other functions Moxie social tools,
document editing, etc. IBM Social business
tools/ 30 drop in project completion time/300K
on LinkedIn, 200K on Facebook. Bloomberg Mobi
social media analytics prelude to stock
performance. Intuit struggling against HR
Block temp staffing/customers 1 asset/Live
Community, focused on help with transactions (not
general, embedded in TurboTax). Social Business
By Design Transformative Social Media
Strategies For the Connected Company Dion
Hinchcliffe Peter Kim
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1/47
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No Kidding There is only1 thing Ive come to
believe for sure in the 47 years between my
first real job (as a junior officer in a Seabee
battalion in Vietnam) and today. Sometimes I call
it WTTMSW Whoever Tries The Most Stuff Wins.
That is, life to a large extent is a numbers came
and a hustlers game. Try more stuff. Try it
fast. And perhaps the world will become your
oyster. Actually, my favorite formulation comes
not from myself, but from iconoclastic EDS
founder Ross Perot RFA. Or Ready. Fire. Aim.
Ross sold EDS to GM, went on the Board, and was
ultimately frustrated. He put it this way The
first EDSer to see a snake kills it. At GM, the
first thing you do is organize a committee on
snakes. Then you bring in a consultant who knows
a lot about snakes. Third thing you do is talk
about it for a year. Amen.
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100
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My favorite slide in my set of gt4,000 YOU MISS
100 OF THE SHOTS YOU NEVER TAKE. Wayne
Gretzky
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50
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I call it the all-important Hangout Factor. We
are what we eat/We are who we hang out with
CEO A.G. Lafley has shifted PGs focus on
inventing all its own products to developing
OTHERS INVENTIONS AT LEAST 50 OF THE TIME.
One successful example, Mr. Clean Magic Eraser,
based on a product found in an Osaka market.
Fortune
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1.5X
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I call them the Little BIG Things.
Seemingly small changes with E-N-O-R-M-O-U-S
LEVERAGE. (And little capital required. For
instance Walmart sells a lot of big
itemse.g. microwave ovens, TVs, etc. Some time
back, Walmart testedsignificantly
increasedshopping cart size. Big item sales
jumped . 50! (With a smaller cart, you pick
up the big item and head for the checkout. With a
big cart you are likely to keep on truckin or
shoppin.) Little BIG BIG in a BIG BIG system.

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45/86
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Signing upor notfor a 401(k) program is a
major life planning decision. Nonetheless In
one test, if a prospective participant went
through the on-line registration process and in
order to get in he needed to click on, in effect,
OPT IN, the share of those proactively
clicking to join was 45. (Opt in Click 45
join) In the alternative version of the process,
the user was effectively automatically in (it
was the default position), and he/she had to
proactively click on no, dont want to join in
order to opt out. In that case fully 86 ended up
joining. (In Default 86 join.) Which is to
sayconcerning a decision of the utmost
importance to oneself and ones familythe mere
change of the single-click OPT IN-OPT OUT process
led to an almost 21 difference in
outcome! Talk about Little BIG.
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2X
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Little BIG Billions 2X When designer
Friedman slightly curved the right angle of an
entrance corridor to one property, he was amazed
at the magnitude of change in pedestrians
behaviorthe percentage who entered increased
from one-third to nearly two-thirds. Natasha
Dow Schull, Addiction By Design Machine
Gambling in Las Vegas
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8/80
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TALK ABOUT A MISMATCH 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?
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14,00020,00030
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eBay 14,000 employees Amazon 20,000
employees Craigslist 30 employees While
Craigslist is different from Amazon and eBay, it
has many similarities, is wildly successful (for
one thing, more visitors than the other two), has
changed the worldand has an imputed market cap
in the billion. And all that with 30
people! My message in using this example is
simply that there is indeed more than one way to
skin a cat! And differences among the three
companies cited notwithstanding, I believe that
in todays whacky world, any consideration of
options, when determining how to tackle a
project, any and every project, ought to include
what I call the Craigslist option that is,
something completely different. You may not
choose that extreme option, but the odds are
pretty high that its presence per se will exert
significant influence on the option you do choose.