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


1
Tom Peters Excellence. Always. Baltic
Management Conference Vilnius/23 March 2009
2
NOTE To appreciate this presentation and
ensure that it is not a mess, you need Microsoft
fonts Showcard Gothic, Ravie, Chiller
and Verdana
3
1
4
Good times and especially bad
Ex-cell- ence.
5
Mr. Watson, how long does it take to achieve
Excellence?
6
1 minute
7
Excellence. Always. If not Excellence,
what??? If not Excellence now, when???
8
2
9
It suddenly occurred to me
10
It suddenly occurred to me that in the space of
two or three hours he never talked about cars.
Les Wexner            
11
Message from a banker, circa 1988 Tom let me
tell you the definition of a good lending
officer. After church on Sunday, on the way home
with his family, he takes a little detour to
drive by the factory he just lent money to.
Doesnt go in or any such thing, just drives by
and takes a look.
12
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
chapter titles from John Bogle, Enough. The
Measures of Money, Business, and Life (Bogle is
founder of the Vanguard Mutual Fund Group)
13
Managers have lost dignity over the past decade
in the face of wide spread institutional
breakdown of trust and self-policing in business.
To regain societys trust, we believe that
business leaders must embrace a way of looking at
their role that goes beyond their responsibility
to the shareholders to include a civic and
personal commitment to their duty as
institutional custodians. In other words, it is
time that management became a profession.
Rakesh Khurana Nitin Nohria, Its Time To
Make Management a True Profession, HBR/10.08
14
Response to most important
contribution I focused this discipline on
People and Power on Values, Structure, and
Constitution and above all, on responsibilities
that is, focused the Discipline of Management
on management as a truly liberal art.
15
3
16
When the seas are calm, all ships alike show
mastery in floating. WSC
17
On NELSON other admirals more frightened of
losing than anxious to win
18
Could Thoroughly Rotten Times Be The Ultimate
Opportunity For Greatness/Excellence? (Hint
The Answer May Be/Is Yes.) (Hint Whats the
Alternative?) XXXXXX/The Grove/15.01.09
19
4
20
BIG?
21
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
22
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
23
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
24
Dick Kovacevich You dont get better by being
bigger. You get worse.
25
5
26
4 Japan2T USA2T China
27
4 Japan3 USA2 China1 Germany
28
Reason!!!Mittelstand
29
6
30
Jim Penman/Jims Group
31
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
32
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
33
7
34
Conrad Hilton, at a gala celebrating his career,
was asked, What was the most important lesson
youve learned in your long and distinguished
career? His immediate answer
35
remember to tuck the shower curtain inside the
bathtub
36
Execution is strategy. Fred Malek
37
8
38
MBWA
39
1982
40
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
41
Breakthrough 82 People! Customers! Action!
Values! In Search of Excellence
42
Hard Is SoftSoft Is Hard
43
Hard Is Soft (Plans, s)Soft Is Hard (people,
customers, values, relationships))
44
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
45
9
46
2007Siberia
47
Why in the World did you go to Siberia?
48
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
49
10
50
2007Sydney
51
Organizations exist to serve. Period. Leaders
live to serve. Period.
52
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
Excellence.
53
11
54
We are a Life Success Company.Dave Liniger,
founder, RE/MAX
55
Managing winds up being the management of the
allocation of resources against tasks. Leadership
focuses on people. My definition of a leader is
someone who helps people succeed. Carol Bartz,
Yahoo!
56
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.
57
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
58
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
59
Leaders SERVE people. Period. inspired by
Robert Greenleaf
60
12
61
The four most important words in any
organization are
62
The four most important words in any
organization are What do you think?
Source courtesy Dave Wheeler, posted at
tompeters.com
63
The doctor interrupts after Source Jerome
Groupman, How Doctors Think
64
18
65
Listening is of the utmost strategic
importance!Listening is trainable !(
Strategic listening will be a core course in
TPs MBA/GTD curriculum!)
66
(Tricks of the trade Nod your head like a
deranged person)
67
The deepest human need is the need to be
appreciated.William James
68
  • 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

69
Buy in- Ownership-Authorial bragging
rights-Born again Champion One Line of Code!
70
"Trust the development expertsall seven
billion of them. headline, Financial Times,
0529.08, to an article by development guru
William Easterly, commenting negatively on the
World Bank Growth Commissions recent report that
concludes, in effect, trust the World Bank
experts
71
13
72
You have to treat your employees like
customers. Herb Kelleher, complete answer, upon
being asked his secrets to success Source
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 the Annual Meeting)
73
The Customer Comes Second Hal Rosenbluth and
Diane McFerrin Peters (no relation)
74
Business has to give people enriching, rewarding
lives, or it's simply not worth doing. Richard
Branson
75
1 Resource for Troubled Times Committed. Engag
ed. Growing. Respected. Trusted. Informed. People.
(Customers.) (Vendors.) (Communities.)
76
14
77
TP How to flush 500,000 down the toilet in
one easy lesson!!
78
lt CAPEXgt People!
79
1/Wegmans
80
15
81
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
82
Brand Talent.
83
Ben Changes His BHAG! Big Hairy Audacious
Goal/Jim Collins
84
16
85
Profitable
86
We are thoughtful in all we do.
87
Thoughtfulness is key to customer
retention. Thoughtfulness is key to employee
recruitment and satisfaction. Thoughtfulness
is key to brand perception. Thoughtfulness is key
to your ability to look in the mirror and tell
your kids about your job. Thoughtfulness is
free. Thoughtfulness is key to speeding things
up it reduces friction. Thoughtfulness is key
to transparency and even cost containmentit
abets rather than stifles truth-telling.
88
none!
89
Press Ganey Assoc 139,380 former patients from
225 hospitalsnone of THE top 15 factors
determining Patient Satisfaction referred to
patients health outcomeP.S. directly related
to Staff InteractionP.P.S. directly correlated
with Employee Satisfaction Source Putting
Patients First, Susan Frampton, Laura Gilpin,
Patrick Charmel
90
Kindness is free.
91
There is a misconception that supportive
interactions require more staff or more time and
are therefore more costly. Although labor costs
are a substantial part of any hospital budget,
the interactions themselves add nothing to the
budget. Kindness is free. Listening to patients
or answering their questions costs nothing. It
can be argued that negative interactionsalienatin
g patients, being non-responsive to their needs
or limiting their sense of controlcan be very
costly. Angry, frustrated or frightened
patients may be combative, withdrawn and less
cooperativerequiring far more time than it
would have taken to interact with them initially
in a positive way. Putting Patients First,
Susan Frampton, Laura Gilpin, Patrick Charmel
92
Perhaps the simplest and most profound of all
human interactions is KINDNESS. But if it is so
simple, it is surprising how frequently it is
absent from our healthcare environments. Many
staff members report verbal abuse by
physicians, managers and coworkers. Putting
Patients First, Susan Frampton, Laura Gilpin,
Patrick Charmel
93
Planetree is about human beings caring for other
human beings. Putting Patients First, Susan
Frampton, Laura Gilpin Patrick Charmel
(Ladies and gentlemen serving ladies and
gentlemen Ritz Carlton credo)
94
17
95
1
96
1.Strategic.Priority.Period.
97
Development can help great people be even
better but if I had a dollar to spend, Id spend
70 cents getting the right person in the door.
Paul Russell, Director, Leadership
Development, Google
98
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
99
CtaOChief talent acquisition Officer
100
18
101
1 cause ofDis-satisfaction?
102
Employee retention satisfaction
Overwhelmingly, based on the first-line
manager!Source Marcus Buckingham Curt
Coffman, First, Break All the Rules What the
Worlds Greatest Managers Do Differently
103
19
104
2/year legacy.
105
20
106
Leaders do people. Period. Anon.
107
21
108
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 Diversity
109
22
110
The Billion-man Research Team Companies
offering work to online communities are reaping
the benefits of crowdsourcing. Headline,
FT, 0110.07
111
Rob McEwen/CEO/Goldcorp Inc./Red Lake
goldSource Wikinomics How Mass Collaboration
Changes Everything, Don Tapscott Anthony
Williams
112
Focus Groups No!Continuing Conversations Yes!
113
23
114
In Blackburn, four-year-olds are making
podcasts. In Suffolk, the sometimes tedious and
impractical ritual of morning Assembly has been
replaced in one school by a news video compiled
by pupils posting it on YouTube means parents
can watch as welland they do. Learners at all
stages and ages, from all over the world, are
downloading free tutorials while they replenish
their iPods, courtesy of iTunes U. Source
The Guardian, 0113.09, Resource 2009, a preview
of BETT 2009
115
24
116
The Bottleneck Is at the Top of the
BottleWhere 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 At the top!
Gary Hamel/Harvard Business Review
117
25
118
Normal o for 800
119
All You Need to Know About Sources of
Innovation Angry people! angry with the
status quo
120
SkunkWorks/ Skunks (!!!)
121
SkunkWorks/ ParallelUniversethe 1
solutionSource Scott Bedbury (Others 3M,
Google, Shell, NAVFAC)
122
26
123
We are the company we keep
124
The We are what we eat axiom At its core,
every (!!!) relationship-partnership decision
(employee, vendor, customer, etc) is a strategic
decision about Innovate, Yes or No
125
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
126
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,
based on a product found in an Osaka market.
Fortune
127
Axiom Never use a vendor who is not in the top
quartile (decile?) in their industry on RD
spending!Inspired by Hummingbird
128
Whos the most interesting person youve met in
the last 90 days? How do I get in touch with
them? Fred Smith
129
You will become like the five people you
associate with the mostthis can be either a
blessing or a curse. Billy Cox
130
27
131
Innovation Index How many of your Top 5
Strategic Initiatives/Key Projects score 8 or
higher out of 10 on a Weird/ Profound/
Wow/Game- changer Scale?
132
Iron Innovation Equality Law The quality and
quantity and imaginativeness of innovation shall
be the same in all functions e.g., in HR and
purchasing as much as in marketing or product
development.
133
-C RD
134
The 8Ps of Innovation SuccessPissed off!
Determined to change the world Passion!!!!
Persist, take the heat, sell Prototypes. Fast
Furiouspow!! Knocks their socks offPals.
Buddies with different skills, recruiting
abilityProtector. Run cover, champion your
causePolitics. Political skillPersistence.
Can handle the bumps and U-turns
135
28
136
XFX
137
X XFXExcellence Cross-functional
Excellence
138
Never waste a lunch!
139
???? XF lunches Measure!
140
(Way) Underutilized LeverSpace!Space!Space!Sp
ace!
141
The XF-50 50 Ways to Enhance Cross-Functional
Effectiveness and Deliver Speed, Service
Excellence and Value-added Customer
SolutionsEntire XF-50 List is an
Appendix to the LONG version of this
presentation, posted at tompeters.com
142
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 appeals. (Within the limits of
civility, somewhat public firings are not out
of the questionthat is, make one and all aware
why the axe fell.) 4. Everything on the Web. This
helps. A lot. (Everything Big word.) 5. Open
access. All available to all. Transparency,
beyond a level thats sensible, is a de facto
imperative in a Burn-the-Silos strategy. 6.
Project managers rule!! Project managers running
XF (cross-functional) projects are the Elite of
the organization, and seen as such and treated as
such. (The likes of construction companies have
practiced this more or less forever.) 7.
Value-added Proposition Application of
integrated resources. (From the entire
supply-chain.) To deliver on our emergent
business raison detre, and compete with the
likes of our Chinese and Indian brethren, we must
co-operate with anybody and everybody 24/7.
IBM, UPS and many, many others are selling far
more than a product or service that worksthe new
it is pure and simple a product of XF
co-operation the product is the co-operation
is not much of a stretch.
143
29
144
Forget China, India and the Internet Economic
Growth Is Driven by Women. Source Headline,
Economist
145
Women are the majority market Fara
Warner/The Power of the Purse
146
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
147
The Perfect Answer
Jill and Jack buy slacks in black
148
(No Transcript)
149
Cases! Cases! Cases!McDonalds
(mom-centered to majority consumer not via
kids)Home Depot (Do it everything!
Herself)PG (more than house cleaner)
DeBeers (right-hand rings/4B)AXA
FinancialKodak (women emotional centers of
the household)Nike (gt jock endorsements new
def sports majority consumer)AvonBratz (young
girls want friends, not a blond
stereotype)Source Fara Warner/The Power of the
Purse
150
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
151
Big bank CEO, summarizing to his top-management
team his notes from TPs presentation Toms
made a great point he let us know that our
customer base will be different and more diverse
in the future. Tom With all due respect,
thats not what Tom said. Though I am an
unabashed supporter of diversity in general,
what I said was She is your customerand has
been for a long time and will be forever. And
she is notably AWOL in this meeting room full
of senior leaders.
152
AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measure TITLE/ Special
Report/ BusinessWeek
153
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?
154
94 of loans to womenMicrolending
Banker to the poor Grameen Bank Muhammad
Yunus 2006 Nobel Peace Prize winner
155
CEMEX realized that women are the key drivers of
savings in Mexican families. They are
entrepreneurial in nature, and they actively
participate in the tanda system neighborhood
groups who pool money and save any thats left
over. Regardless of whether they are homemakers
or outside-the-home workers, they are responsible
for any savings in the family. Patrimonio Hoy
Private Property Today, a CEMEX program to aid
the poor in building homes discovered that 70
of the women who saved were saving money in the
tanda system to construct homes for their
families. The men in the society consider their
job done if they bring in their paycheck at the
end of the day. C.K. Prahalad, from The
Fortune at the Bottom of the Pyramid, on
Lorenzo Zambrano and CEMEX, the Mexican company
thats the worlds 3 cement maker
156
10.6
157
One thing is certain Womens rise to power,
which is linked to the increase in wealth per
capita, is happening in all domains and at all
levels of society. Women are no longer content to
provide efficient labor or to be consumers with
rising budgets and more autonomy to spend.
This is just the beginning. The phenomenon will
only grow as girls prove to be more successful
than boys in the school system. For a number of
observers, we have already entered the age of
womenomics, the economy as thought out and
practiced by a woman. Aude Zieseniss de Thuin,
Financial Times, 10.03.2006
158
30
159
Where the Money is
160
!!!!!!!!!!!!!!!!! People turning 50 today have
more than half of their adult life ahead of
them. Bill Novelli, 50 Igniting a Revolution
to Reinvent America
161
7/13
162
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!
163
31
164
L(21) L(-21)

165
Leadership(21A.D.) Leadership(21B.C.)

166
32
167
Tea Power
168
Give good tea!
169
Allied commands depend on mutual confidence
and this confidence is gained, above all
through the development of friendships.
General D.D. Eisenhower, Armchair General
(05.08)Perhaps his most outstanding ability
at West Point was the ease with which he made
friends and earned the trust of fellow cadets who
came from widely varied backgrounds it was a
quality that would pay great dividends during
his future coalition command
170
eighty percent of success is showing up.
Woody Allen
171
?
172
R.O.I.R.
173
Return On Investment In Relationships
174
33
175
1 Trait
176
I am a dispenser of enthusiasm. Ben Zander
177
Nothing is so contagious as enthusiasm.
Samuel Taylor Coleridge
178
1A
179
Vanity Fair What is your most marked
characteristic? Mike Bloomberg Curiosity.
180
34
181
Courtesies of a small and trivial character are
the ones which strike deepest in the grateful and
appreciating heart. Henry Clay
182
I regard apologizing as the most magical,
healing, restorative gesture human beings can
make. It is the centerpiece of my work with
executives who want to get better. Marshall
Goldsmith, What Got You Here Wont Get You
There How Successful People Become Even More
Successful
183
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.

184
THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE
RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING
THE REAL PROBLEM. PERCEPTION IS ALL THERE IS!

185
35
186
1 Truthteller
187
You Your calendarCalendars never lie
188
I used to have a rule for myself that at any
point in time I wanted to have in mind as it so
happens, also in writing, on a little card I
carried around with me the three big things I
was trying to get done. Three. Not two. Not
four. Not five.Not ten.Three. Richard
Haass, The Power to Persuade
189
Dennis, you need a To-dont List !
190
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
191
You must be the change you wish to see in the
world.Gandhi
192
Walls of Yesterday vs Walls of Tomorrow
193
36
194
To develop others, start with yourself.
Marshall Goldsmith
195
Being aware of yourself and how you affect
everyone around you is what distinguishes a
superior leader. Edie Seashore (Strategy
Business 45)
196
37
197
Skip the map
198
Mapping your competitive position or
199
The Have you 50
200
1. Have you in the last 10 days
visited a customer?2. Have you called a
customer TODAY?
201
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.)
202
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.)
203
38
204
Do one thing every day that scares you.
Eleanor Roosevelt
205
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!
206
39
207
dubai
208
Single greatest act of pure imagination
209
Does your project portfolio have a dubai?
210
Insanely Great
211
Radically thrilling BMW
212
40
213
1/40
214
Dick n dan
215
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. Try it. Screw it up.
it. Try it. Try it. try it. Try it. Screw it up.
Try it. Try it. Try it.
216
We have a strategic plan. Its called doing
things. Herb Kelleher
217
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
218
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
219
Experiment fearlesslySource BW0821.06, Type
A Organization Strategies/ How to Hit a Moving
TargetTactic 1
220
Culture of PrototypingEffective prototyping
may be the most valuable core competence an
innovative organization can hope to have.
Michael Schrage

221
Fail . Forward. Fast.High Tech CEO,
Pennsylvania
222
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
223
You miss 100 of the shots you never take.
Wayne Gretzky
224
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
225
41
226
It is not the strongest of the species that
survives, nor the most intelligent, but the one
most responsive to change. Charles Darwin
227
42
228
4/40
229
DECENTRALIZATION.EXECUTION.ACCOUTABILITY.61
5A.M.
230
43
231
Socks 10K
232
Paint it white! On Hashem Akbaris
Lawrence Livermore labs powerful program to
significantly reduce greenhouse gas emissions
using conservative assumptions, it could
reduce 44 billion tons of CO2 emissions by
cooling buildings, roads, entire cities (The
Guardian, 0116.09)
233
Behavioral Primacy!E.g. plate size location
of platters, 6.5 feet Away -63 Seconds
Source Brian Wansink, Mindless Eating (20
lbs per year 200 decisions per day)
234
401(k) active opt-in 45 401(k) as default
86 Source New York Times, 1202.08 (research
by Richard Thaler, co-author Nudge)
235
Design is everything. Everything is
design. We are all designers. Inspiration
The Power of Design A Force for Transforming
Everything, Richard Farson. (And Judgment Under
Uncertainty Heuristics and Biases, Daniel
Kahneman Amos Tversky Why We Buy, Paco
Underhill. Also Sway-Nudge-Multipliers-Mundane
Tools-etc.)
236
No waste baskets/paper recycling Cases vs
charts Default/401(k)/45 vs 86 Designer next to
the CEO Opel plant away from factory Rickovers
chair/Sunlight in my eyes/LBJ on the edge of
the rug Thank you notes/10 years
237
Seating arrangement Table shape Physical
arrangements (distance, co-location, grand or
not/Apple) Geologists/Geophysicists XFX/Cross-func
tional Excellence (meetings, talks, etc) The
hang out axiom (We are what we eat.) See
greenery, recover faster (map, smell of
cookies, pianos/ Planetree) Vary road crossing
times/engage
238
Everything matters -80 Source Nudge,
Richard Thaler and Cass Sunstein ,
239
44
240
TGR
241
2-cent candy
242
745AM/800AM 615PM/600PM
243
Commerce Bank From Service to Experience7X.
730A-800P. F12A.
244
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
245
ltTGWvs. gtTGRThings Gone WRONG/Things Gone
RIGHT
246
Hypothesis DESIGN is the principal difference
between love and hate!Not like and
dislike
247
You know a design is good when you want to lick
it. Steve Jobs Source Design Intelligence
Made Visible, Stephen Bayley Terence Conran
248
45
249
IBM
250
M 0
251
IBM Global Services/60B
252
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, January 2008
253
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)
254
Huge(!) Customer Satisfaction versus
Customer Success
255
The Value-added Ladder/TRANSFORMATION Customer
Success/ Gamechanging SolutionsServicesGoods
Raw Materials
256
46
257
The Real Deal
258
The Heart of Business Strategy 48 Things
That Matter
259
We usually think of business strategy as some
sort of aspirational market positioning
statement. Doubtless thats part of it. But I
believe that the number one strategic strength
is excellence in execution and systemic
relationships (i.e., with everyone we come in
contact with). Hence I offer the following 48
pieces of advice in creating a winning strategy
that is inherently sustainable.
260
Thank you. Minimum several times a day.
Measure it. Thank you to everyone even
peripherally involved in some
activityespecially those deep in the
hierarchy. Smile. Work on it. Apologize. Even if
they are mostly to blame. Jump all over
those who play the blame game. Hire
enthusiasm. Low enthusiasm. No hire. Any
job. Hire optimists. Everywhere. (Positive
outlook on life, not mindless optimism.) Hiring
Would you like to go to lunch with him-her.
100 of jobs.
261
Hire for good manners. Do not reject trouble
makersthat is those who are uncomfortable
with the status quo. Expose all would-be hires to
something unexpected-weird. Observe their
reaction. Overwhelm response to even the
smallest screw-ups. Become a student of all
you will meet with. Big time. Hang out with
interesting new people. Measure it. Lunch
with folks in other functions. Measure
it. Listen. Hear. Become a serious student of
listening-hearing. Work on everyones listening
skills. Practice.
262
Become a student of information extraction-
interviewing. Become a student of presentation
giving. Formal. Short and spontaneous. Incredib
le care in 1st line supervisor selection. Worlds
best training for 1st line supervisors. Construct
small leadership opportunities for junior
people within days of starting on the
job. Insane care in all promotion
decisions. Promote people people for all
managerial jobs. Finance-logistics-RD as
much as, say, sales. Hire-promote for
demonstrated curiosity. Check their past
commitment to continuous learning.
263
Small d diversity. Rich mixes for any and
all teams. Hire women. Roughly 50 women on
exec team. Exec team looks like customer
population, actual and desired. Focus on
creating products for and selling to
women. Focus on creating products for and
selling to boomers-geezers. Work on first and
last impressions. Walls display tomorrows
aspirations, not yesterdays
accomplishments. Simplify systems. Constantly.
264
Insist that almost all material be covered by a
1-page summary. Absolutely no longer. Practice
decency. Add We are thoughtful in all we do to
corporate values list. Number 1 force for
customer loyalty, employee satisfaction. Make
some form of employee growth (for all) a
formal part of values set. Above customer
satisfaction. Steal from RE/MAX We are a life
success company. Flowers. Celebrate small
wins. Often. Perhaps a small win of the day.
265
Manage your calendar religiously Does it
accurately reflect your espoused priorities?
Use a calendar friend whos not very
friendly to help you with this. Review your
calendar Work assiduously and mercilessly on
your To donts.stuff that
distracts. Bosses, especially near the top
Formally cultivate one advisor whose role is
to tell you the truth. Commit to
Excellence. Talk up Excellence. Put Excellence
in all we do in the values set. Measure everyone
on demonstrated commitment to Excellence.
266
47
267
Difficult Times
268
Basics. ROIR X10 Execution X10 Values
X10 Quality X10 Empowerment (More
initiative) Transparency Decisiveness MBWA Com
municate X10 Keep It Simple Decency Truthfulnes
s
269
Energy! On guard/Constant attitude checks
Beware Training. RD. Sales. (Across the
board Insanity) Small wins/Positives Deep
recession/The best years of our professional
life Commitment to growth/All Deep
recession/Innovations finest hour No cut
corners EXCELLENCE.
270
-Costs RD Sales Marketing excellence
271
A leader is a dealer in hope. Napoleon
(TPs writing room pics)
272
On NELSON other admirals more frightened of
losing than anxious to win
273
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
274
48
275
30 minutes/-1
276
49
277
The 19 Es ofExcellence
278
If Not Excellence, What? If Not Excellence Now,
When? The 19 Es of Excellence Enthusiasm. (Be
an irresistible force of nature!) Energy. (Be
fire! Light fires!) Exuberance. (Vibratecause
earthquakes!) Execution. (Do it! Now! Get it
done! Barriers are baloney! Excuses are for
wimps! Accountability is gospel!
Adhere to the Bill Parcells
doctrine Blame nobody! Expect nothing! Do
something!) Empowerment. (Respect and
appreciation! Always ask, What do you think?
Then
Listen! Liberate! Celebrate! 100 innovators or
bust!) Edginess. (Perpetually dancing at the
frontier, and a little or a lot beyond.) Enraged.
(Determined to challenge change the status
quo!) Engaged. (Addicted to MBWA/Managing By
Wandering Around. In touch. Always.) Electronic.
(Partners with the world 60/60/24/7 via
electronic community building
and entanglement of every sort.
Crowdsourcing/doing power!) Encompassing.
(Relentlessly pursue diverse opinionsthe more
diversity the merrier! Diversity per se
works!) Emotion. (The alpha. The omega. The
essence of leadership. The essence of sales.
The essence of marketing.
The essence. Period. Acknowledge it.) Empathy.
(Connect, connect, connect with others reality
and aspirations! Walk
in the other persons shoesuntil the soles
have holes!) Experience. (Life is theater! Make
every activity-contact memorable! Standard
Insanely
Great/Steve Jobs Radically Thrilling/BMW.) Eli
minate. (Keep it simple!) Errorprone. (Ready!
Fire! Aim! Try a lot of stuff and make a lot of
booboos and then try some more stuff
and make some more
booboosall of it at the speed of
light!) Evenhanded. (Straight as an arrow!
Fair to a fault! Honest as Abe!) Expectations.
(Michelangelo The greatest danger for most of
us is not that our aim is too high and we miss
it, but
that it is too low and we reach it.
Amen!) Eudaimonia. (Pursue the highest of human
moral purposethe core of Aristotles philosophy.
Be of service. Always.) Excellence. (The only
standard! Never an exception! Start now! No
excuses! If not Excellence, what?
If not Excellence now, when?)
279
Excellence. Always.
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