Tom Peters

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Tom Peters Re-Imagine EXCELLENCE!
MASTER/23 October 2013 (also see
excellencenow.com)
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Conrad Hilton
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CONRAD HILTON, at a gala celebrating his career,
was called to the podium and asked, What were
the most important lessons you learned in your
long and distinguished career? His answer
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Remember to tuck the shower curtain inside the
bathtub.
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You get em in the door with location,
location, locationand a terrific architect. You
keep em coming back with the tucked in shower
curtain! Profit rarely comes from transaction
1 it is a byproduct of transaction 2, 3, 4
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EXECUTION IS STRATEGY. Fred Malek
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Sports YOU BEAT YOURSELF!
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EXECUTION IS THE JOB OF THE BUSINESS
LEADER.Larry Bossidy Ram Charan/ Execution
The Discipline of Getting Things Done
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Execution is a SYSTEMATIC PROCESS of
rigorously discussing hows and whats,
tenaciously following through, and ensuring
accountability. Larry Bossidy Ram Charan/
Execution The Discipline of Getting Things Done
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OPERATIONALIZING ITS GOTTA ADD UP!(1)
SUM OF PROJECTS GOAL (VISION) (2)
SUM OF MILESTONES ON-TIME PROJECT(3)
RAPID REVIEW TRUTH-TELLING
ACCOUNTABILITY
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Does/will the next presentation you give/
review allot more time to the process/
details/politics of implementing than to the
analysis of the problem/opportunity?
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I saw that leaders placed too much emphasis on
what some call high-level strategy, on
intellectualizing and philosophizing, and not
enough on implementation. People would agree on a
project or initiative, and then nothing would
come of it. Larry Bossidy Ram
Charan/Execution The Discipline of Getting
Things Done
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COSTCO FIGURED OUT THE BIG, SIMPLE THINGS AND
EXECUTED WITH TOTAL FANATICISM. Charles
Munger, Berkshire Hathaway
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In real life, strategy is actually very
straightforward. Pick a general direction and
implement like hell. Jack Welch
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The art of war does not require complicated
maneuvers the simplest are the best and common
sense is fundamental. From which one might wonder
how it is generals make blunders it is because
they try to be clever. Napoleon
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EXCELLENCE IN EXECUTION DEEPEST BLUE OCEAN
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Execution!
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The score takes care of itself. Bill Walsh
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I dont think I was a fine game coach. I think I
was a good practice coach. John Wooden
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When assessing candidates, the first thing I
looked for was energy and enthusiasm for
execution. Does she talk about the thrill of
getting things done, the obstacles overcome, the
role her people played or does she keep
wandering back to strategy or philosophy?
Larry Bossidy, Execution
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I cant tell you how many times we passed up
hotshots for guys we thought were better people
and watched our guys do a lot better than the big
names, not just in the classroom, but on the
fieldand, naturally, after they graduated, too.
Again and again, the blue chips faded out, and
our little up-and-comers clawed their way to
all-conference and All-America teams. Bo
Schembechler (and John Bacon), Recruit for
Character, Bos Lasting Lessons
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WOW!!Observed closely The use of I or we
during a job interview. Source Leonard Berry
Kent Seltman, chapter 6, Hiring for Values,
Management Lessons From Mayo Clinic
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The head of one of the large management
consulting firms asks members of a client
organization, And what do you do that justifies
your being on the payroll? The great majority
answer, I run the accounting department, or I
am in charge of the sales force Only a few
say, Its my job to give our managers the
information they need to make the right
decisions, or I am responsible for finding out
what products the customer will want tomorrow.
The man who focuses on efforts and stresses his
downward authority is a subordinate no matter how
exalted his rank or title. But the man who
focuses on contributions and who takes
responsibility for results, no matter how junior,
is in the most literal sense of the phrase, top
management. He holds himself responsible for the
performance of the whole. Peter Drucker
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A man approached JP Morgan, held up an envelope,
and said, Sir, in my hand I hold a guaranteed
formula for success, which I will gladly sell you
for 25,000.Sir, JP Morgan replied, I do
not know what is in the envelope, however if you
show me, and I like it, I give you my word as a
gentleman that I will pay you what you ask.The
man agreed to the terms, and handed over the
envelope. JP Morgan opened it, and extracted a
single sheet of paper. He gave it one look, a
mere glance, then handed the piece of paper back
to the gent.And paid him the agreed upon
25,000.The paper
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1. Every morning, write a list of
the things that need to be done that
day. 2. Do them. Source Hugh
MacLeod/tompeters.com/NPR
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GRIN
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GeneticsRoboticsInformaticsNanotechnology
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GeneticsRoboticsInformaticsNanotechnologyD
ecision 1 GRIN and BEAR it? GRIN and SAVOR it?
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Train Passengers Too Distracted By Phones to
Notice Gunman Headline, HuffingtonPost,
1009.13
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RACE AGAINST THE MACHINE
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1,000,000 5001
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The root of our problem is not that were in a
Great Recession or a Great Stagnation, but
rather that we are in the early throes of a
Great Restructuring. Our technologies are racing
ahead, but our skills and organizations are
lagging behind. Source Race AGAINST the
Machine, Erik Brynjolfsson and Andrew McAfee
33
The median worker is losing the race against the
machine. Erik Brynjolfsson and Andrew McAfee,
The Race Against the Machine A bureaucrat is
an expensive microchip. Dan Sullivan,
consultant and executive coach
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China too/Foxconn 1,000,000 robots in next 3
years Source Race AGAINST the Machine, Erik
Brynjolfsson and Andrew McAfee
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Meet Your Next Surgeon Dr. Robot Source
Feature/Fortune/15 JAN 2013/on Intuitive
Surgicals da Vinci /multiple bypass
heart-surgery robot
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Post-Great Recession Equipment expenditures
26 payrolls flat Source Race AGAINST the
Machine, Erik Brynjolfsson and Andrew McAfee
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Robot Wars!The combination of new market rules
and new technology was turning the stock market
into, in effect, a war of robots. Michael
Lewis, Golmans Geek Tragedy, Vanity Fair, 09.13
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Toms TIB 1 Your principal moral obligation as
a leader is to develop the skillset, soft and
hard, of every one of the people in your charge
(temporary as well as semi-permanent) to the
maximum extent of your abilities. The good news
This is also the 1 mid- to long-term profit
maximization strategy! This I Believe
(courtesy Bill Caudill)
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Now!
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No Surprise!Train Passengers Too Distracted By
Phones to Notice Gunman Headline,
HuffingtonPost, 1009.13The 2-year-olds sit in
their moms laps, fully absorbed, in command of
the action on the screen Hair salon owner,
Dartmouth MA, 1010.13
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Breakout!Headline/WSJ/1010.13 Mobile Ads
Take Big Leap As Marketers Rev Spending2X
1st half 2012 1.2B1st half 2013 3.0BE.g.,
Unilever 2013 3X 2012
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Rush Is On To Develop Smart Specs Headline,
New York Times, 1007.13 (Google Glass will have
lots of specialized company!)
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The combination of new market rules and new
technology was turning the stock market into, in
effect, a war of robots. Michael Lewis,
Goldmans Geek Tragedy, Vanity Fair, 09.13
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Human level capability has not turned out to be
a special stopping point from an engineering
perspective. . Source Illah Reza
Nourbakhsh, Professor of Robotics, Carnegie
Mellon, Robot Futures
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AUTOMATE THIS HOW ALGORITHMS CAME TO RULE THE
WORLD
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Algorithms have already written symphonies as
moving as those composed by Beethoven, picked
through legalese with the deftness of a senior
law partner, diagnosed patients with more
accuracy than a doctor, written news articles
with the smooth hand of a seasoned reporter, and
driven vehicles on urban highways with far better
control than a human driver. Christopher
Steiner, Automate This How Algorithms Came to
Rule the World
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Shades of Ned Ludd When Emmy algorithm
produced orchestral pieces so impressive that
some music scholars failed to identify them as
the work of a machine, Prof. David Cope
instantly created legions of enemies. At an
academic conference in Germany, one of his peers
walked up to him and whacked him on the nose.
Christopher Steiner, Automate This How
Algorithms Came to Rule the World
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Legal industry/Pattern Recognition/ Discovery
(e-discovery algorithms) 500 lawyers to
ONE Source Race AGAINST the Machine, Erik
Brynjolfsson and Andrew McAfee
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Michael Vassar/MetaMed founder is creating a
better information system and new class of people
to manage it. Almost all health care people get
is going to be donehopefullyby algorithms
within a decade or two. We used to rely on
doctors to be experts, and weve crowded them
into being something like factory workers, where
their job is to see one patient every 8 to 11
minutes and implement a by-the-book solution. Im
talking about creating a new expert
professionmedical quants, almost like hedgefund
managers, who could do the high-level analytical
work of directing all the information that flows
into the worlds hard drives. Doctors would now
be aided by Vassars new information experts who
would be aided by advanced artificial
intelligence.New York /0624.13
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Social Business Customer Engagement
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Customer engagement is moving from relatively
isolated market transactions to deeply connected
and sustained social relationships. This basic
change in how we do business will make an impact
on just about everything we do. Social Business
By Design Transformative Social Media
Strategies For the Connected Company Dion
Hinchcliffe Peter Kim
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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 percent 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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• Social Survival Manifesto
• Hiding is not an option.
• Face it, you are outnumbered. (level playing
  field, arrogance denied)
• You no longer control the message.
• Try acting like a human being.
• Learn to listen, or else. (REALLY listening to
  others a must)
• Admit that you dont have all the answers.
• Speak plainly and seek to inform.
• Quit being a monolith. (Your employees, speaking
  online as individuals, are a crucial resource
  can be managed through frameworks that ENCOURAGE
  participation)
• Try being less evil.
• Pay it forward, now. (Internet culture largely
  built on the principal of the Gift Economy give
  value away to your online communities)
• Tom Liacas socialdisruptions.com

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Robotics will drive this very innovation.
Landing page tuning will bust out of the Internet
and become interaction tuning. Companies will
apply their analytics engines to all interaction
opportunities with people everywhere online, in
the car, in a supermarket isle, on the sidewalk,
and of course in your home. Illah Reza
Nourbakhsh, Professor of Robotics, Carnegie
Mellon, Robot Futures
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SB gt SMSocial Business/Social Media
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Gamification
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Gamification Gamification presents the best
tools humanity has ever had to create and sustain
engagement in people. Source Gabe
Zichermann Joselin Linder, Gamification How
Leaders Leverage Game Mechanics to Crush the
Competition
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For the Win How Game Thinking Can Revolutionize
Your Business Kevin Werbach Dan HunterThe
Gamification Revolution How Leaders Leverage
Game Mechanics to Crush the Competition Gabe
Zichermann Joselin Linder
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FeedbackFriendsFunSource The Gamification
Revolution How Leaders Leverage Game Mechanics
to Crush the Competition Gabe Zichermann
Joselin Linder
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Work.com/Salesforce.com suite of mobile apps
that enabled people inside the organization to
provide instant feedback to their co-workers for
a job well done Facebook-style newsfeed
badges, leaderboards, point systems turned the
review process into something people actually
want to doSource The Gamification Revolution
How Leaders Leverage Game Mechanics to Crush the
Competition Gabe Zichermann Joselin Linder
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Idea Street/UK Department of Work and
Pensions (28 UK budget) staff provide
innovative ideas and vote for the best ones
first nine months 16 million in savings
meaning was within the game itself, not the
external rewardSource The Gamification
Revolution How Leaders Leverage Game Mechanics
to Crush the Competition Gabe Zichermann
Joselin Linder
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MMORPG/Massively Multiplayer Online Role-Playing
Game Source Jane McGonigal, Reality Is Broken
Why Games Make Us Better and How They Can Change
the World
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Why exactly are we competing with each other to
do the dirty work? Were playing a free online
game called Chore Wars and it just so happens
that ridding our real-world kingdom of toilet
stains is worth more experience points, or XP,
than any other chore in our apartment. A mom in
Texas describes a typical Chore Wars experience
We have three kids, ages 9, 8, and 7. I sat down
with the kids, showed them their characters and
the adventures, and they literally jumped up and
ran off to complete their chosen task. Ive never
seen my 8-year-old son make his bed. I nearly
fainted when my husband cleaned out the toaster
oven. Jane McGonigal, Reality Is
Broken Why Games Make Us Better and How They
Can Change the World
64
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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The popularity of an unwinnable game like Tetris
completely upends the stereotype that gamers are
highly competitive people who care more about
winning than anything else. Competition and
winning are not defining traits of gamesnor are
they defining interests of the people who love to
play them. Many gamers would rather keep playing
than win. In high-feedback games, the state of
being intensely engaged may ultimately be more
pleasurable than the satisfaction of winning.
Jane McGonigal, Reality Is Broken Why Games
Make Us Better and How They Can Change the World
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Flash When I work with experimental digital
gadgets, I am always reminded of how small
changes in the details of a digital design can
have profound unforeseen effects on the
experiences of the people who are playing with
it. The slightest change in something as
seemingly trivial as the ease of use of a button
can sometimes alter behavior patterns. For
instance, Stanford University researcher Jeremy
Bailinson has demonstrated that changing the
height of ones avatars in immersive virtual
reality transforms self-esteem and social
self-perception. Technologies are extensions of
ourselves, and, like the avatars in Jeremys lab,
our identities can be shifted by the quirks of
gadgets. It is impossible to work with
information technology without also engaging in
social engineering. Jaron Lanier, You Are Not
a Gadget
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BIG DATA
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Michael Vassar/MetaMed founder is creating a
better information system and new class of people
to manage it. Almost all healthcare people get
is going to be donehopefullyby algorithms
within a decade or two. We used to rely on
doctors to be experts, and weve crowded them
into being something like factory workers, where
their job is to see one patient every 8 to 11
minutes and implement a by-the-book solution. Im
talking about creating a new expert
professionmedical quants, almost like hedgefund
managers, who could do the high-level analytical
work of directing all the information that flows
into the worlds hard drives. Doctors would now
be aided by Vassars new information experts who
would be aided by advanced artificial
intelligence.New York /0624.13
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These HP pioneers may not realize just how big
a shift this practice is from a cultural
standpoint. The computer is doing more than
obeying the usual mechanical orders to retain
facts and figures. Its producing new information
thats so powerful, it must be handled with a new
kind of care. Were in a new world in which
systems not only divine new, important
information, but must carefully manage it as
well. Eric Siegel, Predictive Analytics The
Power to Predict Who Will Click, Buy, Lie, or Die
(based on a real case, an HP Flight risk PA
model developed by HR, with astronomical savings
potential)
70
Analytics can yield literally hundreds of
millions of data pointsfar too many for human
intuition to make any sense of the data. So in
conjunction with the ability to store very big
data about online behavior, researchers have
developed strong tools for data mining,
statistically evaluating correlations between
many types and sources of data to expose hidden
patterns and connections. The patterns predict
human behaviorand even hidden human
motivations. Illah Reza Nourbakhsh, Professor
of Robotics, Carnegie Mellon, Robot Futures
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Predictions based on correlations lie at the
heart of big data. Source Big Data A
Revolution That Will Transform How We Live, Work,
and Think, by Viktor Mayer-Schonberger and
Kenneth Cukier
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Flash forward to dystopia. You work in a chic
cubicle, sucking chicken-flavor sustenance from
a tube. Youre furiously maneuvering with a
joystick Your boss stops by and gives you a
look. We need to talk about your loyalty to this
company. The organization you work for has
deduced that you are considering quitting. It
predicts your plans and intentions, possibly
before you have even conceived them. Eric
Siegel, Predictive Analytics The Power to
Predict Who Will Click, Buy, Lie, or Die (based
on a real case, an HP Flight risk PA model
developed by HR, with astronomical savings
potential)
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Power!
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Flash When I work with experimental digital
gadgets, I am always reminded of how small
changes in the details of a digital design can
have profound unforeseen effects on the
experiences of the people who are playing with
it. The slightest change in something as
seemingly trivial as the ease of use of a button
can sometimes alter behavior patterns. For
instance, Stanford University researcher Jeremy
Bailinson has demonstrated that changing the
height of ones avatars in immersive virtual
reality transforms self-esteem and social
self-perception. Technologies are extensions of
ourselves, and, like the avatars in Jeremys lab,
our identities can be shifted by the quirks of
gadgets. It is impossible to work with
information technology without also engaging in
social engineering. Jaron Lanier, You Are Not
a Gadget
75
Human level capability has not turned out to be
a special stopping point from an engineering
perspective. . Source Illah Reza
Nourbakhsh, Professor of Robotics, Carnegie
Mellon, Robot Futures
76
I told my board that if they want to get the
share price up 50 in 12-18 months, I can do it
without raising a sweat. But it will destroy the
longterm prospects of the companyand theyll
have to do it without me. CEO, large (10B)
electronic components company
77
On the face of it, shareholder value is the
dumbest idea in the world. Shareholder value is a
result, not a strategy. Your main
constituencies are your employees, your
customers and your products. Jack Welch, FT,
0313.09, page 1
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Excellence!
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(No Transcript)
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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
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Breakthrough 82 People! Customers! Action!
Values! In Search of Excellence
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ExIn 1982-2002/Forbes.comDJIA 10,000
yields 85,000 ExIn 10,000 yields 140,050
Forbes/1004.02/Excellence Index /Basket of
32 publicly traded stocks
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Why in the World did you go to Siberia?
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Enterprise (at its best) An emotional, vital,
innovative, joyful, creative, entrepreneurial
endeavor that elicits maximum
concerted human
potential in the
wholehearted pursuit of EXCELLENCE in service
of others.Employees, Customers, Suppliers,
Communities, Owners, Temporary partners
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the joy of work John Mackey and Raj
Sisoda, Conscious Capitalism Liberating the
Heroic Spirit of Business See also, Joy Inc.
How We Built a Workplace People Love Richard
Sheridan (Menlo Innovations)
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In a world where customers wake up every morning
asking, Whats new, whats different, whats
amazing? success depends on a companys ability
to unleash initiative, imagination and passion of
employees at all levels and this can only happen
if all those folks are connected heart and soul
to their work their calling, their company
and their mission. John Mackey and Raj Sisoda,
Conscious Capitalism Liberating the Heroic
Spirit of Business
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The Economy Is Scary, But Smart Companies Can
Dominate They manage for valuenot for
EPS. They keep developing human capital. They
get radically customer-centric. Source Geoff
Colvin, Fortune
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Hard is Soft. Soft is hard.
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Hard is Soft. Soft is Hard.
90
Hard numbers, plans is Soft. Soft
people/relationships is Hard.
91
7 Steps to Sustaining Success You take care of
the people. The people take care of the service.
The service takes care of the customer. The
customer takes care of the profit. The profit
takes care of the re-investment. The
re-investment takes care of the re-invention.
The re-invention takes care of the future. (And
at every step the only measure is EXCELLENCE.)
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7 Steps to Sustaining Success Excellence You
take care of the people. The people take care of
the service. The service takes care of the
customer. The customer takes care of the profit.
The profit takes care of the re-investment. The
re-investment takes care of the re-invention.
The re-invention takes care of the future. (And
at every step the only measure is EXCELLENCE.)
93
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
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WSJ/0910.13 What matters most to a company over
time? Strategy or culture? Dominic Barton, MD,
McKinsey Co. Culture.
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Excellence NOT an Aspiration
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EXCELLENCE is not an "aspiration. EXCELLENCE
is THE NEXT FIVE MINUTES.
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EXCELLENCE is not an "aspiration." EXCELLENCE is
THE NEXT FIVE MINUTES. EXCELLENCE is your next
conversation. Or not. EXCELLENCE is your next
meeting. Or not. EXCELLENCE is shutting up and
listeningreally listening. Or not. EXCELLENCE is
your next customer contact. Or not. EXCELLENCE is
saying Thank you for something small. Or
not. EXCELLENCE is the next time you shoulder
responsibility and apologize. Or not. EXCELLENCE
is waaay over-reacting to a screw-up. Or
not. EXCELLENCE is the flowers you brought to
work today. Or not. EXCELLENCE is lending a hand
to an outsider whos fallen behind schedule. Or
not. EXCELLENCE is bothering to learn the way
folks in finance or IS or HR think. Or
not. EXCELLENCE is waaay over-preparing for a
3-minute presentation. Or not. EXCELLENCE is
turning insignificant tasks into models of
EXCELLENCE. Or not.
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BLD
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EXCELLENCE is not an institutional choice.
EXCELLENCE is A PERSONAL CHOICE.
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BLD Fact is, you CAN take ANY damned attitude
YOU choose to work today! In fact, it's your
BLD/Biggest Life Decision!
101
Everything can be taken from a man but one
thing the last of the human freedomsto choose
ones attitude in any given set of circumstances,
to choose ones own way. Victor Frankl
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Excellence!
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EXCELLENCE. Always. If not EXCELLENCE,
what?If not EXCELLENCE now, when?
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HighlightsEXCELLENCE. Now. EXCELLENCE. Always.
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• EXCELLENCE. Now. EXCELLENCE. Always.
• People first, second, third, fourth /The
  business of leaders is people to
  inspire/engage/provide a trajectory of
  opportunityenterprise of every size and type as
  cathedral for human development. "When I hire
  someone, that's when I go to work for them.
  John DiJulius
• 1A. Customer comes 2nd/ If you want to best
  Wow! customers then you must first Wow! those
  who serve the customers./"If you want staff to
  give great service, give great service to
  staff.Ari Weinzweig, Zingerman's/ You have to
  treat your employees like customers. Herb
  Kelleher, on his 1 secret to success.
• 1B. Managers sole raison detre Make each of my
  team
• members successful!
• 1C. Effective organizations No bit players!

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EXCELLENCE. Now. EXCELLENCE.
Always. 1D. Appreciation. Acknowledgement.
The deepest human need is the need to be
appreciated. Believe it! A few kind
words are often remembered for years! 1E.
1st line supervisors. Every organizations most
important leadership cadre. Productivity
is largely determined by the caliber of the
1st line boss. Selection and development of
your sergeants must become an
obsessionalmost all do a half-assed job.
1F. Weird/ There are no normals in the
history books!/Insure a healthy supply of
oddballs/Diversity of every flavor Fresh
perspectives! Better decisions! 1G. Memories That
Matter. And dont./ People stuff sticks
with you Youll look back on the handful of
people you developed who proceeded to change
the worldand the multitude (if youve
earned it) who say, I grew most when I
worked with you. Ever seen a tombstone
engraved with the deceaseds net worth?
107
EXCELLENCE. Now. EXCELLENCE.
Always. 2. You/me Businesses no longer coddle.
Youre in charge!/ Brand you stand out for
something valuable, or else learn something
new every day, or else!/Distinct or
Extinct! 3. Organizations Exist to Serve.
PERIOD. 4. EXECUTION/ Dont forget to tuck the
shower curtain into the bath tub. Conrad
Hilton on his sweat the details obsession
and 1 success secret/ Execution is
strategy. Fred Malek/ Execution is the
leaders job 1.Larry Bossidy 4A. They do
ONE BIG THING at a time. Drucker on
successful managers 1 trait. 4B. Resilience
circa 2011 Understand it. Hire for it.
Promote for it. Obsess on it.
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EXCELLENCE. Now. EXCELLENCE.
Always. 5. MBWA/Managing By Wandering Around/
Starbucks Schultz visits 25 stores a week/
In touch is not optional/You Your
calendar/Calendars never lie! 5A. Listening per
se Candidate for Core Value 1/ Listening
per se is a profession./If you dont listen,
you dont sell anything./Docs interrupt
patients after 18 seconds. And you?
5B. What do you think? How can I help?
MBWA 8/Eight words, repeated like a mantra
while wandering around, that unlock
engagement/ success for multitudes. 5C.
Innovate by Hanging out /You are what you
eat./ You will become like the five people
you associate with the most a blessing or
a curse./ Want cool? Expose yourself to
cool! /Manage hanging out
zealously-formally with customers,
interesting outsiders, etc.
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EXCELLENCE. Now. EXCELLENCE.
Always. 5D. K R P (Kindness Repeat
business Profit.) Hard is soft. Soft is
hard. 1 finding In Search of Excellence.
Kindness is hardand pay off in . 5E.
Apology PowerAwesome power 3-minute Im
sorry call heals anythingdo it
religiously!/Over- the-top response to
even small booboo strengthens customer
relationships!
110

• EXCELLENCE. Now. EXCELLENCE.
  Always.
• Little BIG Things/Focus on multipliers
  WalMart
• goes to big shopping cart 50 big
  stuff sales boost!/Wash your Hands save
  thousands of lives P.A. in hospitals!
• 6A. Little BIG Things SMEs bedrock of all
  economies. Nurture them. SMEs battle cry
• per George Whalin Be the best. Its the
  only market thats not crowded.
• 7. Apple gt Exxon in market cap courtesy
  DESIGN! /The big Duh Cool beats un-
  cool!/Design candidate for best way to
  differentiate goods-services in competitive
  markets.
• 7A. TGRs/Things Gone Right. Wagon Wheel
  restaurant, Gill MAclean restroom with fresh
  flowers.we remember such touches more or less
  forever/
• Manage-measure TGRs.
• 7B. Scintillating Experiences. Howard Schultz on
• Starbucks At our core, were a coffee
• company, but the opportunity we have to
  extend the brand is beyond coffee its
  entertainment.

111
EXCELLENCE. Now. EXCELLENCE.
Always. 8. WOMEN Buy! WOMEN Rule! WOMENs World!
Women buy 80 of everything28T world
market/Why Warren Buffett Invests Like a
Girle.g., studies harder-holds longer-less
frenzied buying and selling/Womens
leadership style fits 21st century
less-hierarchical enterprise./Evidence clear
Women well on the way to 21st century
economic domination! Brazils President
Dilma Rousseff at UN the century of women. 9.
Web-Social Media/ Everyone becomes our valued
partner, a member of our communityand
watchdog/The Power of Co-creation my Top Biz
Book for 2010/SM can be lynchpin of
transformative strategyfor organizations of
every shape and size! 10. Value added via
transformation from Customer satisfaction
to customer success huge difference-
opportunity! /E.g., IBM Global Services, from
afterthought to 60B/UPS Logistics/MasterCard
Advisors/ IDEO, help clients create culture
of innovation/The Geek SquadBest Buy's
1 strategic point of differentiation.
112
EXCELLENCE. Now. EXCELLENCE. Always. 11.
Innovation secret 1 Most tries wins. / A
Bias for Actionexcellence trait 1, In
Search of Excellence /Ready. Fire! Aim.
Ross Perot//Instead of trying to figure
out the best way to do something and sticking
to it, just try out an approach and keep
fixing it. Bert Rutan 11A. Try a lot
Fail a lot /Fail. Forward. Fast./ Fail
faster, succeed soonerDavid Kelley /Reward
excellent failures, punish mediocre
successes/ Whoever Makes the Most
Mistakes Wins Richard Farson 11B. You
miss 100 of the shots you never take.
Wayne Gretzky
113
EXCELLENCE. Now. EXCELLENCE. Always.
12. Live WOW!/Zappos creed WOW Customers/
eBay 14,000 employees, Amazon 20,000
employees, Craigs List 30 employees regardless
of issue, Wheres your Wild and Wooly
Craigs List Option?/ Final point in
superstar adman Kevin Roberts Credo
Avoid moderation! 13. EXCELLENCE is a personal
choice not an institutional choice!
EXCELLENCE is not an aspiration its the next
five minutes! 13A. EXCELLENCE. Always. If not
EXCELLENCE, What? If not EXCELLENCE Now,
When?
114
EXCELLENCE is a personal choice not an
institutional choice! EXCELLENCE is not
an aspiration its the next five minutes!
115
Enough.
116
At a party
117
At a party given by a billionaire on Shelter
Island, Kurt Vonnegut informs his pal, Joseph
Heller, that their host, a hedge fund manager,
had made more money in a single day than Heller
had earned from his wildly popular novel Catch-22
over its whole history. Heller responds
118
At a party given by a billionaire on Shelter
Island, Kurt Vonnegut informs his pal, Joseph
Heller that their host, a hedge fund manager,
had made more money in a single day than Heller
had earned from his wildly popular novel Catch-22
over its whole history. Heller responds Yes,
but I have something he will never have
Source John Bogle, Enough. The Measures of
Money, Business, and Life (Bogle is founder of
the Vanguard Mutual Fund Group)
119
At a party given by a billionaire on Shelter
Island, Kurt Vonnegut informs his pal, Joseph
Heller that their host, a hedge fund manager,
had made more money in a single day than Heller
had earned from his wildly popular novel Catch-22
over its whole history. Heller responds Yes,
but I have something he will never have
enough. Source John Bogle, Enough. The
Measures of Money, Business, and Life (Bogle is
founder of the Vanguard Mutual Fund Group)
120
Too Much Cost, Not Enough Value Too Much
Speculation, Not Enough Investment Too Much
Complexity, Not Enough Simplicity Too Much
Counting, Not Enough Trust Too Much Business
Conduct, Not Enough Professional Conduct Too
Much Salesmanship, Not Enough Stewardship Too
Much Focus on Things, Not Enough Focus on
Commitment Too Many Twenty-first Century
Values, Not Enough Eighteenth-Century
Values Too Much Success, Not Enough
Character Source Chapter titles from Jack
Bogle, Enough.
121
(No Transcript)
122
THE SHAREHOLDER VALUE MYTH
123
The notion that corporate law requires
directors, executives, and employees to maximize
shareholder wealth simply isnt true. There is no
solid legal support for the claim that directors
and executives in U.S. public corporations have
an enforceable legal duty to maximize shareholder
wealth. The idea is fable. Lynn Stout,
professor of corporate and business law, Cornell
Law school, in The Shareholder Value Myth How
Putting Shareholders First Harms Investors,
Corporations, and the Public
124
a corporation can be formed to conduct or
promote any lawful business or purpose from
Delaware corporate code (no mandate for
shareholder primacy), per Lynn Stout, professor
of corporate and business law, Cornell Law
school, in The Shareholder Value Myth How
Putting Shareholders First Harms Investors,
Corporations, and the Public
125
On the face of it, shareholder value is the
dumbest idea in the world. Shareholder value is a
result, not a strategy. Your main
constituencies are your employees, your
customers and your products. Jack Welch, FT,
0313.09, page 1
126
MBWA
127
MBWA
128
ManagingBy WanderingAround
129
25
130
Im always stopping by our stores at least 25
a week. Im also in other places Home Depot,
Whole Foods, Crate Barrel. I try to be a
sponge to pick up as much as I can. Howard
SchultzSource Fortune, Secrets of Greatness
131
3K/5MSource Mark McCormack
132
3,000 miles for a 5-minute face-to-face
meeting
133
Decisions are made by those who show up.
Aaron Sorkin
134
Even when times are tight dont short change
travel!
135
MIA Origins of Our Financial Chaos The CEO of
a very successful mid-sized bank, in the Midwest,
attended a seminar of mine in northern California
in the mid-80sbut I remember the following,
pretty much word for word, as if it were
yesterday
136
MIA Origins of Our Financial Chaos 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.
137
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 only when
there is an immediate or visible problem.
Managers typical response to my argument about
free time is, Thats all well and good, but
there are things I have to do. Yet we waste so
much time in unproductive activityit takes an
enormous effort on the part of the leader to keep
free time for the truly important things.
Dov Frohman ( Robert Howard), Leadership The
Hard Way Why Leadership Cant Be Taught And How
You Can Learn It Anyway (Chapter 5, The Soft
Skills Of Hard Leadership)
138
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 only when
there is an immediate or visible problem.
Managers typical response to my argument about
free time is, Thats all well and good, but
there are things I have to do. Yet we waste so
much time in unproductive activityit takes an
enormous effort on the part of the leader to keep
free time for the truly important things. 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)
139
The Discipline Of Daydreaming Nearly every
major decision of my business career was, to some
degree, the result of daydreaming. To be sure,
in every case I had to collect a lot of data, do
detailed analysis, and make a data-based argument
to convince superiors, colleagues and business
partners. But that all came later. In the
beginning, there was the daydream. By
daydreaming, I mean loose, unstructured thinking
with no particular goal in mind. In fact, I
think daydreaming is a distinctive mode of
cognition especially well suited to the complex,
fuzzy problems that characterize a more
turbulent business environment. Daydreaming is
an effective way of coping with complexity. When
a problem has a high degree of complexity, the
level of detail can be overwhelming. The more one
focuses on the details, the more one risks being
lost in them. Every child knows how to
daydream. But many, perhaps most, lose the
capacity as they grow up. 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)
140
Its always showtime.
141
You must be the change you wish to see in the
world.Gandhi
142
Its always showtime.
143
Nothing is so contagious as enthusiasm.
Samuel Taylor Coleridge
144
The leader must have infectious optimism. The
final test of a leader is the feeling you have
when you leave his presence after a conference.
Have you a feeling of uplift and confidence?
Field Marshall Bernard Montgomery
145
A leader is a dealer in hope. Napoleon
146
BE EXPLICIT HIRE FOR IT!PROMOTE FOR IT!
147
We look for ... listening, caring, smiling,
saying Thank you, being warm. Colleen
Barrett, former President, Southwest Airlines
148
Make it fun to work at your agency. Encourage
exuberance. Get rid of sad dogs who spread doom.
David Ogilvy
149
A man without a smiling face must not open a
shop. Chinese Proverb
150
Monday Morning
151
Monday/Tomorrow/Courtesy NFL Script your
first 5-10 plays. (I.e., carefully launch the
day/week in a purposeful fashion.)
152
You Your calendar/ Your calendar NEVER lies.
153
You Your calendarThe calendar NEVER lies.
154
Dennis, you need a To-dont List !
155
Dont gt Do Dont-ing must be systematic gt
WILLPOWER
156
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
157
1 Failing
158
If I had to pick one failing of CEOs, its that
they dont read enough. Co-founder of one of
the largest investment services firms in the
USA/world
159
Addiction By Design Machine Gambling in Las
Vegas Anti-fragile Things That Gain From
DisorderAutomate This How Algorithms Came to
Rule Our WorldBig Data A Revolution That Will
Transform How We Live, Work, and ThinkConscious
Capitalism Liberating the Heroic Spirit of
BusinessCreating Innovators The Making of Young
People Who Will Change the WorldCreation How
Science Is Reinventing Life ItselfCyber War The
Next Threat to National Security and What to Do
About ItEmployees First, Customers
SecondEverything Bad Is Good For You How
Todays Popular Culture Is Actually Making Us
SmarterExtra Lives Why Video Games MatterFab
The Coming Revolution on Your DesktopFrom
Personal Computers to Personal FabricationFast
Future How the Millennial Generation Is Shaping
the WorldThe Filter Bubble What the Internet Is
Hiding From YouFooled By Randomness The Hidden
Role of Chance in Life and in the MarketsFor the
Win How Game Thinking Can Revolutionize Your
BusinessThe Future Arrived YesterdayThe
Gamification Revolution How Leaders Leverage
Game Mechanics to Crush the CompetitionHow to
Create The Secret of Human Thought
RevealedKnowledge and Power The Information
Theory of Capitalism and How It Is
Revolutionizing Our WorldThe Lean Startup How
Todays Entrepreneurs Use Continuous Innovation
to Create Radically Successful BusinessesLords
of StrategyLoyalty 3.0 How Big Data and
Gamification Are Revolutionizing Customer and
Employee EngagementMakers The New Industrial
RevolutionModels Behaving Badly Why Confusing
Illusion with Reality Can Lead to Disaster on
Wall Street and in Life The Myth of American
Decline and the Growth of a New
EconomyNanotechnology for DummiesOpen Services
Innovation Rethinking Your Business to Grow and
Compete in a New EraThe Org The Underlying
Logic of the OfficeThe Power of Co-Creation
Build It With Them to Boost Growth, Productivity
and ProfitsPredictive Analytics The Power to
Predict Who Will Click, Buy, Lie or DiePresent
Shock When Everything Happens NowQuiet The
Power of Introverts in a World That Cant Stop
TalkingRace Against The Machine How the Digital
Revolution Is Accelerating Innovation, Driving
Productivity, and Irreversibly Transforming
Employment and the Economy Reality Is Broken
Why Games Make Us Better and How They Can Change
the WorldRewire Digital Cosmopolitans in the
Age of ConnectionRobot FuturesThe Rise of the
Creative ClassThe Shareholder Value Myth How
Putting Shareholders First Harms Investors,
Corporations and the PublicThe Signal and the
Noise Why So Many Predictions FailBut Some
DontThe Singularity Is Near When Humans
Transcend BiologySmarter Than You Think How
Technology Is Changing Our Minds for the
BetterSocial Business By Design Transformative
Social Media Strategies for the Connected
CompanyThe Startup of You Adapt to the Future,
Invest in Yourself and Transform Your
CareerTaming the Big Data Tidal Wave Finding
Opportunities in Huge Data Streams With Advanced
AnalyticsThinking, Fast and SlowTo Save
Everything, Click Here The Folly of
Technological SolutionismTubes A Journey to the
Center of the InternetWait The Art and Science
of DelayWhat You Can Change and What You
CantWired For War The Robotics Revolution and
Conflict in the Twenty-first CenturyYou Are Not
a Gadget
160
Questionable Judgment Skills
161
Thinking, Fast and SlowWhy are experts
inferior to algorithms? One reason is that
experts try to be clever, think outside the box
This may work in the odd case, but more often
than not it reduces validity. The
important conclusion from this research is that
an algorithm that is constructed on the back of
an envelope is often good enough to compete with
an optimally weighted formula and certainly
good enough to outdo expert judgment. It is
wrong to blame anyone for failing to forecast
accurately in an unpredictable world. However, it
seems fair to blame professionals for believing
they can succeed at an impossible task.
Source Daniel Kahneman, Thinking, Fast and
Slow (Chapter intuitions Vs. Formulas)
162
Clinical versus Statistical Prediction 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. Source Paul
Meehl, Clinical versus Statistical Prediction
(1954)
163
Clinical versus Statistical Prediction Schiedt
showed that 15 of Burgess factors (e.g., age,
marital status, sobriety), when combined by a
simple unweighted addition were about as
successful in predicting criminal recidivism in
500 Bavarian ex-prisoners during a four- to
six-year followup period as was the judgment of
a prison physician. the clinician,
utilizing all this additional information, is no
better at forecasting than the statistical clerk
Source Paul Meehl, Clinical versus
Statistical Prediction (1954)
164
Unfortunately, Kahneman argues Nobel laureate
Daniel Kahnemans masterpiece Thinking, Fast and
Slow, very often our brain is to lazy to think
slowly and methodically. Instead, we let the fast
way of thinking take over. As a consequence, we
often see imaginary causalities, and thus
fundamentally misunderstand the world. Source
Big Data A Revolution That Will Transform How We
Live, Work, and Think, by Viktor
Mayer-Schonberger and Kenneth Cukier
165
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
166
ONE at a Time
167
If there is any one secret to effectiveness,
it is concentration. Effective executives do
first things first and they do one thing at a
time. Peter Drucker
168
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
169
The Have you 50
170
Mapping your competitive position or
171
1. Have you in the last 10 days
VISITED a customer? 2. Have you called a
customer TODAY ?
172
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 front-line 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.)
173
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 front-line
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?
174
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 front-line 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.)
175
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 front-line
employee to discuss things we do right, things we
do wrong,