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Title: The%20Challenge:%20%20%20To%20Create%20More%20Value%20in%20All%20Negotiations


1
Why in the World did you go to Siberia?
2
Enterprise (at its best) An emotional,
vital, innovative, joyful, creative,
entrepreneurial endeavor that elicits maximum
concerted human
potential in the wholehearted service of
others.Employees, Customers, Suppliers,
Communities, Owners, Temporary partners
3
Over-ratedBig companies!Public companies!
Cool industries!Stability (Built to
last)!Famous CEOs!
4
Spend less time with your customers!
5
Welcome to Tom Peters
PowerPoint World! Beyond the set of slides
here, you will find at tompeters.com the last
eight years of presentations, a basketful of
Special Presentations, and, above all, Toms
constantly updated Master Presentationfrom which
most of the slides in this presentation are
drawn. There are about 3,500 slides in the 7-part
Master Presentation. The first five chapters
constitute the main argument Part I is context.
Part II is devoted entirely to innovationthe
sine qua non, as perhaps never before, of
survival. In earlier incarnations of the
master, innovation stuff was scattered
throughout the presentationnow it is front and
center and a stand-alone. Part III is a
variation on the innovation themebut it is
organized to examine the imperative (for most
everyone in the developed-emerging world) of an
ultra high value-added strategy. A value-added
ladder (the ladder configuration lifted with
gratitude from Joe Pine and Jim Gilmores
Experience Economy) lays out a specific logic for
necessarily leaving commodity-like goods and
services in the dust. Part IV argues that in
this age of micro-marketing there are two
macro-markets of astounding size that are
dramatically under-attended by all but a few
namely women and boomers-geezers. Part V
underpins the overall argument with the necessary
bedrockTalent, with brief consideration of
Education Healthcare. Part VI examines
Leadership for turbulent times from several
angles. Part VII is a collection of a dozen
Listssuch as Toms Irreducible 209, 209
things Ive learned along the way. Enjoy!
Download! Stealthats the whole point!
6
NOTE To appreciate this presentation and
ensure that it is not a mess, you need Microsoft
fonts Showcard Gothic, Ravie, Chiller
and Verdana
7
Tom Peters EXCELLENCE. ALWAYS.15
Notions.London/28 April 2008
8
Slides at tompeters.com
9
Dedicated to David O. Stewart, author of The
Summer of 1787, and the late Governor Ann
Richardsthanks for the blinding flash of the
obvious
10
Excellence can be obtained if you ... care
more than others think is wise ... risk
more than others think is safe ... dream
more than others think is practical ...
expect more than others think is
possible. Source Anon. (Posted _at_ tompeters.com
by K.Sriram, November 27, 2006 117 AM)
11
1/15
12
We Have Thank you, Starbucks!
13
Internal organizational excellence Deepest
Blue Ocean
14
Internal organizational excellence Brand
inside
15
B(I) gt B(O)
16
14
17
The Common CEO Lament If everything had been
good, then everything would have been
fine.Annual Reports Good, Our strategy
Bad, Unexpected
18
Black Swans This is how you earn your pay!
See The Black Swan The Impact of the
Highly Improbable, Nassim Nicholas TalebWSC
When the seas are calm all ships alike show
mastership in sailing.
19
500 cell phones vibrate at onceWe have
been Estonia-ed
20
Notes to myself Resilience (??)
21
Attributes of resilient peopleInner calm
(Buddhist?) High self-knowledge (comfortable in
own skin)Breadth of experiencedrove a cab,
worked construction, ran Alaska tours as
well as more traditional stuffSense of, Ah, my
moment (Giuliani)Lover of modestly controlled
chaos (bored amidst calmFDR)Reach out
effortlesslyReach out effortlessly to a wide
variety of peopleBizarrely energeticKnown for
integrity, in the sense of straight
shooterHires resilient people in key positions!
(All senior leadership roles?)Maintains sense of
humorEmpathy (I feel your pain)Cruelty
(Must make tough decisions instantaneously,
without looking back not confident, but
overwhelming sense of urgency to press
ahead)Decisive but not rigidStrong individual,
strong team playerUnderstands the chain of
commandand is flexibleComfortable being
challenged by thinkers, but a strong doer bias
overallA person of Hope (religious?)Not
necessarily ex-college QB, comeback rep (Why
All within the rules, with in the context of
that which has been practiced)Better Ocean
sailboat racer ER doc public health doc
astronaut combat experience as NCO hostage
negotiator survived in hopeless circumstances
through guile and grit seeks independent
dutyTests lights go out during interview,
followed by fire alarm, etc focus on in
reference checks
22
Attributes of resilient organizationsHire
resilient folks at all levels and in all
functionsexplicit about so doingPromote
resilienceDecentralization (organization
structure, physical, systems)RedundancyFinancial
paddingExcellent equipmentAbility to get by
without IS-IT!!Test in uncomfortable
situationsPromote an unusually high share of
mavericksDiversity per se
23
2
24
Thank you, Mark and Rich!
25
MBWA5K/5M
26
5,000 miles for a 5-minute face-to-face
meeting
27
The Have you 50See Appendix One
28
Mapping your competitive position or
Rich DAveni/HBR
29
1. Have you in the last 10 days
visited a customer?2. Have you called a
customer TODAY?


30
1. Have you in the last 10 days visited a
customer? 2. Have you called a customer
TODAY? 3. Have you in the last 60-90 days had
a seminar in which several folks from the
customers operation (different levels, different
functions, different divisions) interacted, via
facilitator, with various of your folks? 4. Have
you thanked a front-line employee for a small act
of helpfulness in the last three days? 5. Have
you thanked a front-line employee for a small act
of helpfulness in the last three hours? 6.
Have you thanked a frontline employee for
carrying around a great attitude today? 7. Have
you in the last week recognizedpubliclyone of
your folks for a small act of cross-functional
co-operation? 8. Have you in the last week
recognizedpubliclyone of their folks (another
function) for a small act of cross-functional
co-operation? 9. Have you invited in the last
month a leader of another function to your weekly
team priorities meeting? 10. Have you personally
in the last week-month called-visited an internal
or external customer to sort out, inquire, or
apologize for some little or big thing that went
awry? (No reason for doing so? If truein your
mindthen youre more out of touch than I dared
imagine.)
31
You Your calendarCalendars never lie
32
You must be the change you wish to see in the
world.Gandhi
33
Its always showtime. David DAlessandro,
Career Warfare
34
I am a Dispenser of Enthusiasm!Ben Zander
35
3
36
Conrad says
37
Conrad Hilton, at a gala celebrating his life,
was asked, What was the most important lesson
youve learned in you long and distinguished
career? His immediate answer remember to
tuck the shower curtain inside the bathtub
38
TGW TGR
39
2-cent candy
40
?????? Magician of Magical
Moments! Maestro of Moments of Truth!
Recruiter of Raving Fans! Impresario of First
Impressions! Wizard of WOW! Captain of
Brilliant Comebacks! Director of Electronic
Customer Experiences! Conductor of Customer
Intimacy! King of Customer Community! Queen
of Customer Retention! CEO of Ownership
Experience! Managing Director of After-sales
Experience!
41
Quandary?!3Ms Innovation Crisis How Six
Sigma Almost Smothered Its Idea CultureSource
Title/Cover Story, BW, 0611.07 (Whats
remarkable is how fast a culture can be torn
apart, 3M lead scientist In an innovation
economy, 6 Sigma is no longer a cure all/BW)
42
4
43
Tom says
44
1/40
45
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
46
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
47
Fail . Forward. Fast.High Tech CEO,
Pennsylvania
48
try it. Try it. Try it. 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. Screw it up. it. Try
it. Try it. try it. Try it. Screw it up. Try it.
Try it. Try it.
49
You miss 100 of the shots you never take.
Wayne Gretzky
50
Joe J. Jones 1942 2008 HE WOULDA DONE
SOME REALLY COOL STUFF BUT HIS BOSS
WOULDNT LET HIM!
51
We are the company we keep
52
The Are What You Eat Axiom At its core, every
(!!!) relationship-partnership decision
(employee, vendor, customer, etc) is a strategic
decision about Innovate, Yes or No
53
Measure Strangeness/Portfolio
QualityStaffConsultantsVendorsOut-sourcing
Partners (, Quality)Innovation Alliance
PartnersCustomersCompetitors (who we
benchmark against) Strategic Initiatives
Product Portfolio (LineEx v. Leap)IS/IT
ProjectsHQ LocationLunch MatesLanguageBoard
54
Do one thing every day that scares you.
Eleanor Roosevelt
55
Kevin Roberts Credo1. Ready.
Fire! Aim.2. If it aint broke ... Break it!3.
Hire crazies.4. Ask dumb questions.5. Pursue
failure.6. Lead, follow ... or get out of the
way!7. Spread confusion.8. Ditch your
office.9. Read odd stuff.10. Avoid moderation!
56
Normal o for 800
57
5
58
X XFXExcellence Cross-functional
Excellence
59
The XF-50 50 Ways to Enhance Cross-Functional
Effectiveness and Deliver Speed, Service
Excellence and Value-added Customer
SolutionsSee Appendix Two
60
8. XF work is the direct work of leaders! 9.
Integrated solutions Our Culture.
(Therefore XF Our culture.) 10. Partner with
best-in-class only. Their pursuit of Excellence
helps us get beyond petty bickering. An all-star
team has little time for anything other than
delivering on the (big) Client promise. 11. All
functions are created equal! All functions
contribute equally! All All. 12. All functions
are PSFs, Professional Service Firms.
Professionalism is the watchwordand true
Professionalism rise above turf wars. You are
your projects, your legacy is your projectsand
the legacy will be skimpy indeed unless you pass,
with flying colors, the works well with others
exam! 13. We are all in sales! We all (a-l-l)
sell those Integrated Client Solutions. Good
salespeople dont blame others for screw-upsthe
Clint doesnt care. Good salespeople are
quarterbacks who make the system
work-deliver. 14. We all invest in wiring the
Client organizationwe develop comprehensive
relationships in every part (function, level) of
the Clients organization. We pay special
attention to the so-called lower levels, short
on glamour, long on the ability to make things
happen at the coalface. 15. We all live the
Brandwhich is Delivery of Matchless Integrated
Solutions which transform the Clients
organization. To live the brand is to become a
raving fan of XF co-operation.
61
C(I)gtC(E)Internal customer relations C(I)
are perhaps-often more important than external
relationships C(E). That is, if you Internal
Relationships are excellent, youll have your
whole company working for you to get your jobs to
the head of the queue.
62
Never waste a lunch!
63
???? XF lunches
64
C-levels to Abet Cross-functional Excellence
CGRO/Chief Grunge Removal OfficerCXFCO/Chief
Cross-functional Communication OfficerCIS-CDO/Chi
ef Information Sharing Common Database
OfficerCHRO(PMLC) /Chief Human Resources Officer
(Project Managers, Love and Care of)CPMFO/Chief
Project Management Finance OfficerCTAO/Chief
Team-space Assignments OfficerCE(XFNC) /Chief
Executioner (Cross-functional Non-cooperation!)C
XFBPDO/Chief Cross-functional Brownie-points
Dispensing Officer
65
6
66
K.i.s.s.Keep It Simple, Stupid
67
90K in U.S.A. ICUs on any given day 178
steps/day in ICU.50 stays result in serious
complicationSource Atul Gawande, The
Checklist (New Yorker, 1210.07)
68
Peter Pronovost, Johns Hopkins,
2001Checklist, line infections1/3rd at
least one error when he startedNurses/permissio
n to stop procedure if doc, other not
following checklistIn 1 year, 10-day
line-infection rate 11 to 0 Source Atul
Gawande, The Checklist (New Yorker, 1210.07)
69
4 Days (U.S. Hospitals) 5 Years
(Iraq)Think Compression hose-socks
70
7
71
TP How to flush 500,000 down the toilet in
one easy lesson!!
72
lt CAPEXgt People!
73
Organizations exist to serve. Period. Leaders
live to serve. Period. Passionate servant
leaders, determined to create a legacy of
earthshaking transformation in their domain
create/must necessarily create organizations
which are no less than Cathedrals in which the
full and awesome power of the Imagination and
Spirit and native Entrepreneurial flair of
diverse individuals is unleashed In passionate
pursuit of jointly perceived soaring purpose and
personal and community and client service
Excellence.
74
??? of people with
75
Dreams
76
The Dream Manager Matthew KellyE.g. An
organization can only become the-best-version-of-i
tself to the extent that the people who drive
that organization are striving to become
better-versions-of-themselves. A companys
purpose is to become the-best-version-of-itself.
The question is What is an employees purpose?
Most would say, to help the company achieve its
purposebut they would be wrong. That is
certainly part of the employees role, but an
employees primary purpose is to become
the-best-version-of-himself or herself. When a
company forgets that it exists to serve
customers, it quickly goes out of business. Our
employees are our first customers, and our most
important customers.
77
The Dream Manager Matthew KellyAn
organization can only become the-best-version-of-i
tself to the extent that the people who drive
that organization are striving to become
better-versions-of-themselves. A companys
purpose is to become the-best-version-of-itself.
The question is What is an employees purpose?
Most would say, to help the company achieve its
purposebut they would be wrong. That is
certainly part of the employees role, but an
employees primary purpose is to become
the-best-version-of-himself or herself. When a
company forgets that it exists to serve
customers, it quickly goes out of business. Our
employees are our first customers, and our most
important customers.
78
The Dream Manager Matthew KellyAn
organization can only become the-best-version-of-i
tself to the extent that the people who drive
that organization are striving to become
better-versions-of-themselves. A companys
purpose is to become the-best-version-of-itself.
The question is What is an employees purpose?
Most would say, to help the company achieve its
purposebut they would be wrong. That is
certainly part of the employees role, but an
employees primary purpose is to become
the-best-version-of-himself or herself. When a
company forgets that it exists to serve
customers, it quickly goes out of business. Our
employees are our first customers, and our most
important customers.
79
53 53
80
1 cause ofDis-satisfaction?
81
1st line supervisor!
82
The Big Three Marriage Parenthood 1st Line
Supervisor Accomplishment through others
83
Promotions
84
2/year legacy.
85
Hiring
86
?
87
A man without a smiling face must not open a
shop. Chinese Proverb
88
EMPHASIZE THE SOFT SKILLS.
89
Leaders SERVE people. Period. inspired by
Robert Greenleaf
90
In the end, management doesnt change culture.
Management invites the workforce itself to
change the culture. Lou Gerstner
91
I have always believed that the purpose of the
corporation is to be a blessing to the
employees. Boyd Clarke TP An
organization is, in fact and after all is
said and done, a/the house in which most of us
live most of the time.
92
No matter what the situation, the excellent
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
93
We are a Life Success Company.Dave Liniger,
founder, RE/MAX
94
The role of the Director is to create a space
where the actors and actresses can become more
than theyve ever been before, more than theyve
dreamed of being. Robert Altman, Oscar
acceptance speech
95
Every child is born an artist. The trick is to
remain an artist. Picasso
96
Muhammad Yunus All human beings are
entrepreneurs. When we were in the caves we were
all self-employed . . . finding our food, feeding
ourselves. Thats where human history began . . .
As civilization came we suppressed it. We became
labor because they stamped us, You are labor.
We forgot that we are entrepreneurs. Source
Muhammad Yunus/2006 Nobel Peace prize winner,
father of micro-lending /The News
HourPBS/1122.2006
97
8
98
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
99
Breakthrough 82 People! Customers! Action!
Values! In Search of Excellence
100
Cause (worthy of commitment)Space (room
for/encouragement
for initiative) Decency (respect,
humane)
101
Some Resources
Relationships The Managers Book of Decencies
How Small Gestures Build Great CompaniesSteve
Harrison RespectSara Lawrence-Lightfoot Hostmansh
ip The Art of Making People Feel Welcome Jan
Gunnarsson Olle Blohm (leader as host to his-
her employees) The SPEED of Trust The One Thing
that Changes EverythingStephen M.R.
Covey The Dream Manager Matthew Kelly The
Customer Comes Second Put Your People First and
Watch Em Kick ButtHal Rosenbluth and Diane
McFerrin Peters (no relationbe delighted if she
was) Crucial ConversationsKerry Patterson,
Joseph Grenny, Ron McMillan, Al Switzler
Crucial Confrontations Kerry Patterson, Joseph
Grenny, Ron McMillan, Al Switzler Influence
Science and PracticeRobert Cialdini Emotional
Intelligence Why It Can Matter More Than
IQDaniel Goleman
102
Courtesies of a small and trivial character are
the ones which strike deepest in the grateful and
appreciating heart. Henry Clay
103
Be kind, for everyone you meet is fighting a
great battle. Philo of Alexandria
104
Cause (worthy of commitment)Space (room
for/encouragement
for initiative-adventures) Decency
(respect, grace,
integrity, humane)
service (worthy of our clients extended

familys continuing custom)excellence (period)
105
Cause (worthy of commitment)Space (room
for/encouragement for initiative-adventures)
Decency (respect, grace, integrity, humane)
service (worthy of our clients extended

familys continuing custom)excellence (period)
servant leadership
106
Cause Space Decency serviceexcellence
servant leadership
107
Hard Is Soft Soft Is Hard
108
Hard Is Soft (Plans, s)Soft Is Hard (people,
customers, values, relationships))
109
If I could have chosen not to tackle the IBM
culture head-on, I probably wouldnt have. My
bias coming in was toward strategy, analysis and
measurement. In comparison, changing the attitude
and behaviors of hundreds of thousands of people
is very, very hard. Yet I came to see in my
time at IBM that culture isnt just one aspect of
the game it is the game. Lou Gerstner, Who
Says Elephants Cant Dance
110
95
111
The terms hard facts, and the soft stuff
used in business imply that data are somehow real
and strong while emotions are weak and less
important. George Kohlrieser, Hostage at the
Table
112
9
113
R.O.I.R.
114
Return On Investment In Relationships
115
Q/Systems Salesperson I make the sale, and then
the company screws up the engineering or delivery
or one of a dozen things. Any suggestions?A/TP
Spend less time with your customers!
116
FYI Relationship power Monopoly power
117
FYI Sustainable competitive advantage
Relationship-based advantage (period.)
118
Relationships (of all varieties) THERE ONCE WAS
A TIME WHEN A THREE-MINUTE PHONE CALL WOULD HAVE
AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT
RESULTED IN A COMPLETE RUPTURE.

119
THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE
RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING
THE REAL PROBLEM.

120
I screwed up.The virtuous circle of
blame
121
You can make more friends in two months by
becoming interested in other people than you can
in two years by trying to get other people
interested in you. Dale Carnegie
122
  • It was much later that I realized Dads secret.
    He gained respect by giving it. He talked and
    listened to the fourth-grade kids in Spring
    Valley who shined shoes the same way he talked
    and listened to a bishop or a college president.
    He was seriously interested in who you were and
    what you had to say.
  • Sara Lawrence-Lightfoot, Respect

123
So, tell me why youre here
124
18 seconds
125
10
126
For the engineers in the family
127
SF50 50 Equations on achieving success at
pretty much anything See Appendix Three
128
S ƒ ( ___ ) Success Is a Function of
129
S ƒ(PKWP)S ƒ(PKLP) of people you
know in the wrong places people you know in
low places
130
???????Success doesnt depend on the number of
people you know it depends on the number of
people you know in high places!or Success
doesnt depend on the number of people you know
it depends on the number of people you know in
low places!
131
S ƒ(DR -2L, -3L, 4L, IE) Success is a
function of Number and depth of relationships 2,
3, and 4 levels down inside and outside the
organization S ƒ(SDgtSU) Sucking down is more
important than sucking upthe idea is to have the
your entire organization working for you. S
ƒ(non-FF, non-FL) Number of friends not in my
function S ƒ(XFL/m) Number of lunches with
colleagues in other functions per month S
ƒ(FF) Number of friends in the finance
organization
132
S ƒ(TSHRO) Time spent ... Hurdle Removing for
Others
133
C.H.R.O. C.I.E.O. Chief Hurdle Removal
Officer Chief Impediment Elimination Officer
134
Ninety percent of what we call management
consists of making it difficult to get things
done. Peter Drucker
135
FLOWERPOWER
S ƒ(Thank you notes per Day,
flowers given per Month,
Acts of Appreciation per Week)
136
S ƒ (TMTSS, PMTSS, DTDTSS) of time,
measured, on This Soft Stuff, purposeful
management of this Soft Stuff, daily to do
concerning this Soft Stuff
137
O(B) ƒ(XX) O(B), the blueness of ones
ocean think Blue Ocean Strategy, the popular
book, is directly proportional to ones
eXcellence in eXecution/XX, per me. If one finds
a strategic blue ocean, one will, especially
in todays world, copied immediately the only
defensepossibility of sustaining successis
XX/eXcellence in eXecution. Think EXXON MOBIL
they and their rivals know where the hydrocarbons
arebut EXXON MOBIL handily out-executes the
competition.
138
S(O) ƒ(XXFX) The single most important cause
of failure to execute effectively is the lack of
effective cross-functional communication-execution
. Hence, Organizational Success is a function of
eXcellence (X) in cross-functional (XF) eXecution
(X). Attached as Appendix II is my The XF-50
50 Ways to Enhance Cross-Functional Effectiveness
and Deliver Speed, Service Excellence and
Value-added Customer Solutions.
139
S(O) ƒ(XSIT) In 1982 in In Search of
Excellence, Bob Waterman and I wrote about the
idea of MBWA, or Managing By Wandering Around
we came across MBWA at Hewlett-Packard, then a
much smaller company, and it was love at first
sight! For reasons described in Appendix III, I
recently returned to the centrality of that
notionand created a list of 50 Have Yous. That
is, instead of worrying ceaselessly about
strategy and blue oceans, how good a job have
you done at Staying In Touch with your extended
internal and external organizational family?
That is S(O), Organizational Success, is a
function of X SIT, eXcellence at Staying In
Touch.
140
MBWA20M
141
11
142
Notes from William EasterlysThe White Mans
Burden Why the Wests Effort to Aid the Rest
Have Done So Much Ill and so Little Good
143
The West spent 2.3 trillion on foreign aid
over the last five decades and still has not
managed to get twelve-cent medicines to children
to prevent half of all malaria deaths. The West
spent 2.3 trillion and still not managed to get
three dollars to each new mother to prevent five
million child deaths. But I and many other
like-minded people keep trying, not to abandon
aid to the poor, but to make sure it reaches
them.
144
Easterly, maligned by many, is the arch-enemy of
the Big Plan his capital letters, not mine
sent from afar and the vociferous fan of
practical activities of those he calls
Searchers who learn the ins and outs of the
culture, politics and local conditions on the
ground in order to use local levers and local
players, and get those 12- cent medicines to
community members. Read on, Planners vs
Searchers
145
In foreign aid, Planners announce good
intentions but dont motivate anyone to carry
them out Searchers find things that work and get
some reward. Planners raise expectations but take
no responsibility for meeting them Searchers
accept responsibility for their actions Planners
determine what to supply Searchers find out what
is in demand. Planners apply global blueprints
Searchers adapt to local conditions. Planners at
the top lack knowledge of the bottom Searchers
find out what the reality is at the bottom.
Planners never hear whether the planned
recipients got what they needed Searchers find
out if the customer is satisfied. A Planner
thinks he already knows the answers he thinks of
poverty as a technical engineering problem that
his answers will solve. A Searcher admits he
doesnt know the answers in advance he believes
that poverty is a complicated tangle of
political, social, historical, institutional, and
technological factors he hopes to find answers
to individual problems only by trial and error
experimentation. A planner believes outsiders
know enough to impose solutions a Searcher
believes only insiders have enough knowledge to
find solutions, and that most solutions must be
homegrown.
146
Derived from the above and more, I have extracted
a series of lessons from the Easterly book.
These implementation lessons are, in fact,
universal Lesson (1 of sooooooo many) Show
up! (On the ground, where the actionand
possible implementationis.) Lesson Invest in
ceaseless study of conditions on the
groundsocial and political and historical
and systemic.
147
Ninety percent of success is showing up.
Woody Allen
148
Lesson Talk to the locals. Lesson Listen to
the locals. Lesson Hear the locals. Lesson
Listen to the locals. Lesson Hear the
locals. Lesson Listen to the
locals. Lesson Hear the locals. Lesson
Listen to the locals. Lesson Hear to the
locals. Lesson Listen to the
locals. Lesson Hear to the locals. Lesson
Respect the locals. Lesson Empathize with the
locals.
149
Talk.Listen.Hear.Respect.
150
Lesson Try to blend in, adopting local customs,
showing deference were necessaryalmost
everywhere and never interrupt the big
man in front of his folk, even, or
especially, if you think he is 180
degrees off. Lesson Seek out the local leaders
second cousins, etc, to gain indirect
assess over their uncle twice removed!
(Etc etc.) Lesson Have a truly crappy office,
and other un-trappings! Lesson
Remember, you do not in fact have the answers
despite your PhD with, naturally, honors,
from the University of Chicagowhere
you were mentored by not one, but two,
Nobel Laureates in economics. Lesson Regardless
of the enormity of the problem, proceed
by trial (manageable in size) and error,
error, error. (Failure motto Do it right the
first time! Success motto Do it
right the 37th time! And hustle
through those 37 triessee the next
slide.)
151
Noth-ing is scalable!
152
Nothing is scalable!Every replication must
exude the perception of uniquenesseven if it
means a half-step backwards. (It wouldnt have
worked if we hadnt done it our way.)
153
Buy in- Ownership-Authorial bragging
rights-Born again Champion One Line of Code!
154
Lesson Speed kills! Lesson Short-circuiting
political process kills! Lesson
Premature rollout kills! Lesson Too much
publicity-visibility kills! Lesson Too
much money kills! Lesson Too much technology
kills!
155
Lesson Never forget the atmospherics, such as
numerous celebrations for tiny milestones
reached, showering praise on the local
leader and your local cohorts, while you
assiduously stand at the back of the
crowdetc. Lesson The experiment has failed
until the systems and political rewards,
often small, are in place, with Beta tests
completed, to up the odds of
repetition. Lesson Most of your on-the-ground
staff must consist of respected localsthe
de facto or de jure Chairman or CEO must be
a local you must be virtually invisible. Lesson
Spend enormous pointless social time
with the local political leadersin Gulf
War I, Norm Schwarzkopf spent his
evenings, nearly all of them, drinking tea
until 2AM or 3AM with the Saudi
crown prince he called it his greatest
contribution!
156
Give good tea!Norm, Ben
157
Lesson For projects involving children or health
or education or community
development or sustainable small-business
growth (most projects), women are by far the
most reliable and most central and
most indirectly powerful local
players in even the most chauvinist
settingstheir characteristic
process of implementation by indirection
means life or death to sustainable project
success moreover, the expanding
concentric circles of womens
traditional networking processes is by far the
best way to scale up/expand a
program. (Men should not even try to
understand what is taking place. Among other
things, this networking
indirection-largely invisible process will
seemingly take forever by most mens
action now, skip steps S.O.P.and
then, from out of the blue,
following an eternity of rambling
discussions-on-top-of-
rambling-discussions, you will wake up one fine
morning and discover that the thing
is done that everything has fallen in
place overnight and that ownership is nearly
universal. Concomitant imperative
most of your (as an outsider) staff
should be women, alas, most likely not
visibly in charge.
158
For projects involving children or health or
education or community development or sustainable
small-business growth (most projects), women are
by far the most reliable and most central and
most indirectly powerful local players even in
the most chauvinist settings.
159
94
160
Lesson of Lessons Regardless of the
topicmundane or grandit is attending to the
same mundane human timeless basics that
shape the outcome and determine the degree of
implementation. The Master of GTD is the true
Master of the Universe.GTD/Getting Things Done
161
12
162
Women are the majority market Fara
Warner/The Power of the Purse
163
Goldman Sachs in Tokyo has developed an index of
115 companies poised to benefit from womens
increased purchasing power over the past decade
the value of shares in Goldmans basket has risen
by 96, against the Tokyo stockmarkets rise of
13. Economist, April 15
164
The most significant variable in every sales
situation is the gender of the buyer, and more
importantly, how the salesperson communicates to
the buyers gender. Jeffery Tobias Halter,
Selling to Men, Selling to Women
165
AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measure TITLE/ Special
Report/ BusinessWeek
166
TAKE THIS QUICK QUIZ Who manages more things
at once? Who puts more effort into their
appearance? Who usually takes care of the
details? Who finds it easier to meet new
people? Who asks more questions in a
conversation? Who is a better listener? Who
has more interest in communication skills? Who
is more inclined to get involved? Who
encourages harmony and agreement? Who has
better intuition? Who works with a longer to
do list? Who enjoys a recap to the days
events? Who is better at keeping in touch
with others?Source Selling Is a Womans Game
15 Powerful Reasons Why Women Can Outsell Men,
Nicki Joy Susan Kane-Benson
167
Womens Negotiating
StrengthsAbility to put themselves in their
counterparties shoesComprehensive, attentive
and detailed communication styleEmpathy that
facilitates trust-buildingCurious and attentive
listeningLess competitive attitudeStrong
sense of fairness and ability to
persuadeProactive risk managerCollaborative
decision-makingSource Horacio Falcao, Cover
story/May 2006, World Business, Say It Like a
Woman Why the 21st-century negotiator will need
the female touch
168
Forget China, India and the Internet Economic
Growth Is Driven by Women. Headline, Economist,
April 15, 2006, Leader, page 14
169
10 UNASSAILABLE REASONS WOMEN
RULE Women make all the financial
decisions.Women control all the wealth. Women
substantially outlive men. Women start most of
the new businesses. Womens work force
participation rates have soared
worldwide. Women are closing in on same pay for
same job. Women are penetrating senior
ranks rapidly even if the pace is slow for
the corner office per se. Womens
leadership strengths are exceptionally well
aligned with new organizational effectiveness
imperatives. Women are better salespersons than
men. Women buy almost everythingcommercial
as well as consumer goods. So what exactly is
the point of men?
170
7/13
171
!!!!!!!!!!!!!!!!! People turning 50 today have
more than half of their adult life ahead of
them. Bill Novelli, 50 Igniting a Revolution
to Reinvent America
172
We are the Aussies Kiwis Americans
Canadians. We are the Western Europeans
Japanese. We are the fastest growing, the
biggest, the wealthiest, the boldest, the most
(yes) ambitious, the most experimental
exploratory, the most different, the most
indulgent, the most difficult demanding, the
most service experience obsessed, the most
vigorous, (the least vigorous,) the most health
conscious, the most female, the most
profoundly important commercial market in the
history of the worldand we will be the Center of
your universe for the next twenty-five years.
We have arrived!
173
13
174
Over-ratedBig companies!Public companies!
Cool industries!Stability (Built to
last)!Famous CEOs!
175
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
176
4 Japan2T china2t USA1 Germany
177
Reason!!!Mittelstand
178
Over-ratedBig companies!Public companies!
Cool industries!Stability (Built to
last)!Famous CEOs!
179
Family BusinessesTwo-thirds of
total s of companiesOne-half of biggest
companiesgtOne-half GDPgtOne-half employment6
more profitable7 better ROAHigher income
growthHigher revenue growthSource John Davis,
HBS
180
Over-ratedBig companies!Public companies!
Cool industries!Stability (Built to
last)!Famous CEOs!
181
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
182
7,700,000 7,200,000 500,000
183
Over-ratedBig companies!Public companies!
Cool industries!Stability (Built to
last)!Famous CEOs!
184
Jims Group
185
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
186
Basement Systems Inc.
187
Basement Systems Inc.Larry JaneskyDry
Basement Science (115,000!)1990 0 2003
13M 2007 62,000,000
188
Over-ratedBig companies!Public companies!
Cool industries!Stability (Built to
last)!Famous CEOs!
189
Mission impossible?36B/98minus 675M/07
190
Market capitalization lost per day, 1998-2007
10,000,000/Day
191
Lived in same town all adult lifeFirst
generation thats wealthy/ no parental
supportDont look like millionaires, dont
dress like millionaires, dont eat like
millionaires, dont act like millionairesMany
of the types of businesses they are in could
be classified as dull-normal. They are
welding contractors, auctioneers, scrap-metal
dealers, lessors of portable toilets, dry
cleaners, re-builders of diesel engines, paving
contractors Source The Millionaire Next
Door, Thomas Stanley William Danko
192
14
193
Black Swans This is how you earn your pay!
See The Black Swan The Impact of the
Highly Improbable, Nassim Nicholas TalebWSC
When the seas are calm all ships alike show
mastership in sailing.
194
15/15
195
The 9 Ps of Leadership PURPOSE.PASSION.Potent
ial.Presence.Personal.PERSISTENCE.PEOPLE.
Potent.Positive.
196
On NELSON other admirals more frightened of
losing than anxious to win
197
Joe J. Jones 1942 2008 HE WOULDA DONE
SOME REALLY COOL STUFF BUT HIS BOSS
WOULDNT LET HIM!
198
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
199
appendix one
200
The Have you 50
201
Mapping your competitive position or
202
While waiting last week early December 2007 in
the Albany airport to board a Southwest Airlines
flight to Reagan, I happened across the latest
Harvard Business Review, on the cover of which
was a yellow sticker. The sticker had on it the
words Mapping your competitive position. It
referred to a feature article by my friend Rich
DAveni. His work is uniformly goodand I have
said as much publicly on several occasions dating
back 15 years. Im sure this article is good,
toothough I didnt read it. In fact it triggered
a furious negative Tom reaction as my wife
calls it. Of course I believe you should worry
about your competitive position. But instead of
obsessing on competitive position and other
abstractions, as the B-schools and consultants
would always have us do, I instead wondered about
some practical stuff which I believe is more
important to the short- and long-term health of
the enterprise, tiny or enormous.
203
Unfortunately many leaders of major companies
believe their job is to create the strategy,
organization and organization processesremaining
aloof from the people doing the work. George
Kohlrieser, Hostage at the Table (GK is, among
other things, a hostage negotiator with a 95
success rate)
204
1. Have you in the last 10 days visited a
customer? 2. Have you called a customer
TODAY? 3. Have you in the last 60-90 days had
a seminar in which several folks from the
customers operation (different levels, different
functions, different divisions) interacted, via
facilitator, with various of your folks? 4. Have
you thanked a front-line employee for a small act
of helpfulness in the last three days? 5. Have
you thanked a front-line employee for a small act
of helpfulness in the last three hours? 6.
Have you thanked a frontline employee for
carrying around a great attitude today? 7. Have
you in the last week recognizedpubliclyone of
your folks for a small act of cross-functional
co-operation? 8. Have you in the last week
recognizedpubliclyone of their folks (another
function) for a small act of cross-functional
co-operation? 9. Have you invited in the last
month a leader of another function to your weekly
team priorities meeting? 10. Have you personally
in the last week-month called-visited an internal
or external customer to sort out, inquire, or
apologize for some little or big thing that went
awry? (No reason for doing so? If truein your
mindthen youre more out of touch than I dared
imagine.)
205
1. Have you in the last 10 days visited a
customer?2. Have you called a customer TODAY?
206
Blog1231.07 FLASH! FLASH! FLASH! FOR IMMEDIATE
ACTION! FOR IMMEDIATE ACTION! FOR IMMEDIATE
ACTION! OLD YEARS RESOLUTION! Call (C-A-L-L!)
(NOT E-MAIL!) 25-50 (NO LESS THAN 25) people
TODAY to thank them for their support this
year (2007) and wish them and their families
and colleagues a Happy 2008!
Today TODAY N-O-W (not within the
hour) Remember ROIR gt ROI. ROIR Return On
Investment in Relationships. Success
ƒ(Relationships). This is the most important
piece of advice I have provided this
year. This is Not Optional. Trust me
This is fun!!!! Trust me This
works. Happy 2008!!!
207
I posted this at tompeters.com on New Years Eve
2007.
208
11. Have you in the last two days had a chat with
someone (a couple of levels down?) about specific
deadlines concerning a projects next steps? 12.
Have you in the last two days had a chat with
someone (a couple of levels down?) about specific
deadlines concerning a projects next steps and
what specifically you can do to remove a hurdle?
(Ninety percent of what we call management
consists of making it difficult for people to get
things done.Peter His eminence Drucker.) 13.
Have you celebrated in the last week a small
(or large!) milestone reached? (I.e., are you a
milestone fanatic?) 14. Have you in the last week
or month revised some estimate in the wrong
direction and apologized for making a lousy
estimate? (Somehow you must publicly reward the
telling of difficult truths.) 15. Have you
installed in your tenure a very comprehensive
customer satisfaction scheme for all internal
customers? (With major consequences for hitting
or missing the mark.) 16. Have you in the last
six months had a week-long, visible, very
intensive visit-tour of external customers? 17.
Have you in the last 60 days called an abrupt
halt to a meeting and ordered everyone to get
out of the office, and into the field and in
the next eight hours, after asking those
involved, fixed (f-i-x-e-d!) a nagging small
problem through practical action? 18. Have you in
the last week had a rather thorough discussion of
a cool design thing someone has come
acrossaway from your industry or functionat a
Web site, in a product or its packaging? 19.
Have you in the last two weeks had an informal
meetingat least an hour longwith a frontline
employee to discuss things we do right, things we
do wrong, what it would take to meet your mid- to
long-term aspirations? 20. Have you had in the
last 60 days had a general meeting to discuss
things we do wrong that we can fix in the
next fourteen days?
209
UniCredit Group/
UniCredito Italiano 3rd party
measurementCustomer-initiated
measurementPrimary incentivesFactories
Primary Corporate InitiativeEtc13TP/1
210
The director of staff services at the giant
financial services firm, UniCredit Group,
installed the most thorough internal customer
satisfaction measures scheme I have seenwith
exceptional rewards for those who make the grade
with their internal customers.
211
21. Have you had in the last year a one-day,
intense offsite with each (?) of your internal
customersfollowed by a big celebration of
things gone right? 22. Have you in the last
week pushed someone to do some family thing that
you fear might be overwhelmed by deadline
pressure? 23. Have you learned the names of the
children of everyone who reports to you? (If not,
you have six months to fix it.) 24. Have you
taken in the last month an interesting-weird
outsider to lunch? 25. Have you in the last month
invited an interesting-weird outsider to sit in
on an important meeting? 26. Have you in the last
three days discussed something interesting,
beyond your industry, that you ran across in a
meeting, reading, etc? 27. Have you in the last
24 hours injected into a meeting I ran across
this interesting idea in strange place? 28.
Have you in the last two weeks asked someone to
report on something, anything that constitutes an
act of brilliant service rendered in a trivial
situationrestaurant, car wash, etc? (And then
discussed the relevance to your work.) 29. Have
you in the last 30 days examined in detail (hour
by hour) your calendar to evaluate the degree
time actually spent mirrors your espoused
priorities? (And repeated this exercise with
everyone on team.) 30. Have you in the last two
months had a presentation to the group by a
weird outsider?
212
You Your calendarCalendars never lie
213
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?
214
31. Have you in the last two months had a
presentation to the group by a customer, internal
customer, vendor featuring working folks 3 or 4
levels down in the vendor organization? 32. Have
you in the last two months had a presentation to
the group of a cool, beyond-our-industry ideas by
two of your folks? 33. Have you at every meeting
today (and forever more) re-directed the
conversation to the practicalities of
implementation concerning some issue before the
group? 34. Have you at every meeting today (and
forever more) had an end-of-meeting discussion on
action items to be dealt with in the next 4, 48
hours? (And then made this list publicand
followed up in 48 hours.) And made sure everyone
has at least one such item.) 35. Have you had a
discussion in the last six months about what it
would take to get recognition in local-national
poll of best places to work? 36. Have you in
the last month approved a cool-different training
course for one of your folks? 37. Have you in
the last month taught a front-line training
course? 38. Have you in the last week discussed
the idea of Excellence? (What it means, how to
get there.) 39. Have you in the last week
discussed the idea of Wow? (What it means,
how to inject it into an ongoing routine
project.) 40. Have you in the last 45 days
assessed some major process in terms of the
details of the experience, as well as results,
it provides to its external or internal customers?
215
41. Have you in the last month had one of your
folks attend a meeting you were supposed to go to
which gives them unusual exposure to senior
folks? 42. Have you in the last 60 (30?) days sat
with a trusted friend or coach to discuss your
management styleand its long- and short-term
impact on the group? 43. Have you in the last
three days considered a professional relationship
that was a little rocky and made a call to the
person involved to discuss issues and smooth the
waters? (Taking the blame, fully deserved or
not, for letting the thing-issue fester.) 44.
Have you in the last two hours stopped by
someones (two-levels down") office-workspace
for 5 minutes to ask What do you think? about
an issue that arose at a more or less just
completed meeting? (And then stuck around for 10
or so minutes to listenand visibly taken
notes.) 45. Have you in the last day looked
around you to assess whether the diversity pretty
accurately maps the diversity of the market being
served? (And ) 46. Have you in the last day at
some meeting gone out of your way to make sure
that a normally reticent person was engaged in a
conversationand then thanked him or her, perhaps
privately, for their contribution? 47. Have you
during your tenure instituted very public
(visible) presentations of performance? 48. Have
you in the last four months had a session
specifically aimed at checking on the corporate
culture and the degree we are true to itwith
all presentations by relatively junior folks,
including front-line folks? (And with a
determined effort to keep the conversation
restricted to real world small casesnot
theory.) 49. Have you in the last six months
talked about the Internal Brand Promise? 50. Have
you in the last year had a full-day off site to
talk about individual (and group) aspirations?
216
Relationships (of all varieties) THERE ONCE WAS
A TIME WHEN A THREE-MINUTE PHONE CALL WOULD HAVE
AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT
RESULTED IN A COMPLETE RUPTURE.

217
R.O.I.R.
218
Return On Investment In Relationships
219
Job One.
220
You must care. General Melvin Zais
221
Courtesies of a small and trivial character are
the ones which strike deepest in the grateful and
appreciating heart. Henry Clay
222
appendix two
223
The XF-50 50 Ways to Enhance Cross-Functional
Effectiveness and Deliver Speed, Service
Excellence and Value-added Customer Solutions
224
X XFXExcellence Cross-functional
Excellence
225
A 2007 letter from John Hennessy, president of
(1) Stanford University, to alumni laid out his
long-term vision for that esteemed institution.
The core of the visions promise was more
multi-disciplinary research, aimed at solving
some of the worlds complex systemic problems.
(2) The chief of GlaxoSmithKline, a few years
ago, announced a revolutionary new drug
discovery processhuman-scale centers of
interdisciplinary excellence, called Centers of
Excellence in Drug Discovery. (It worked.) (3)
Likewise, amidst a study of organization
effectiveness in the oil industrys exploration
sector, I came across a particularly successful
firmone key to that success was their physical
and organizational mingling of formerly warring
(two sets of prima donnas) geologists and
geophysicists.
226
(4) The cover story in Dartmouth Medicine, the
Dartmouth med school magazine, featured a
revolutionary approach, microsystems, as the
big idea that might save U.S. healthcare. The
nub is providing successful patient outcomes in
hospitals by forming multi-function patient-care
teams, including docs, nurses, labtechs and
others. (Co-operating doc may top the oxymoron
scale.) (5) One of the central responses to 911
is an effort to get intelligence services, home
to some of the worlds most viscous turf wars,
talking to one anotherwe may have seen some of
the fruits of that effort in the recently
released National Intelligence Estimate. And in
the military, inter-service co-operation has
increased by an order of magnitude since Gulf War
Onesome of the services communication systems
can actually be linked to those of other
services, a miracle almost the equal of the
Christmas miracle in my book!
227
1. Its our organization to make workor not.
Its not them, the outside world thats the
problem. The enemy is us. Period. 2.
Friction-free! Dump 90 of middle managersmost
are advertent or inadvertent power freaks. We
are allevery one of usin the Friction Removal
Business, one moment at a time, now and
forevermore. 3. No stovepipes! Stove-piping,
Silo-ing is an Automatic Firing Offense.
Period. No ap
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