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Title: NOTE: To appreciate this presentation [and insure that it is not a mess], you need Microsoft fonts:


1
NOTE To appreciate this presentation and
insure that it is not a mess, you need Microsoft
fonts Showcard Gothic, Ravie, Chiller
and Verdana
2
Why in the World did you go to Siberia?
3
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
4
Tom Peters EXCELLENCE. ALWAYS.15
Notions.30 April 2008
5
slides at tompeters.com
6
Dedicated to David O. Stewart, author of The
Summer of 1787
7
eighty percent of success is showing up.
Woody Allen
8
1/16
9
Over-ratedBig companies!Public companies!
Cool industries!Stability (Built to
last)!Famous CEOs!
10
Basement Systems Inc.Larry JaneskyDry
Basement Science (100,000
copies!)1990 0 2003 13M 2007
62,000,000
11
16
12
Black Swan This is how you earn your pay!
See The Black Swan The Impact of the Highly
Improbable, Nassim Nicholas TalebWSC When
the seas are calm all ships alike show mastership
in sailing.
13
Notes to myself Resilience (??)
14
2
15
We Have Thank you, Starbucks!
16
Internal organizational excellence Deepest
Blue Ocean
17
B(I) gt B(O)
18
3
19
Thank you, Mark and Rich!
20
Mapping your competitive position or
Rich DAveni/HBR
21
The Have you 50See Appendix One
22
1. Have you in the last 10 days
visited a customer?2. Have you called a
customer TODAY?


23
You Your calendarCalendars never lie
24
You must be the change you wish to see in the
world.Gandhi
25
Its always showtime. David DAlessandro,
Career Warfare
26
4
27
Conrad says
28
Conrad Hilton, at a gala celebrating his life,
was asked, What was the most important lesson
youve learned in your long and distinguished
career? His immediate answer remember to
tuck the shower curtain inside the bathtub.
29
2-cent candy
30
5
31
Women are the majority market Fara
Warner/The Power of the Purse
32
!!!!!!!!!!!!!!!!! People turning 50 today have
more than half of their adult life ahead of
them. Bill Novelli, 50 Igniting a Revolution
to Reinvent America
33
7/13
34
6
35
Tom says
36
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
37
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
38
You miss 100 of the shots you never take.
Wayne Gretzky
39
7
40
We are the company we keep
41
The Are What You Eat Axiom At its core, every
(!!!) relationship-partnership decision
(employee, vendor, customer, etc) is a strategic
decision about Innovate, Yes or No
42
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
43
Normal o for 800
44
Every child is born an artist. The trick is to
remain an artist. Picasso
45
8
46
X XFXExcellence Cross-functional
Excellence
47
The XF-50 50 Ways to Enhance Cross-Functional
Effectiveness and Deliver Speed, Service
Excellence and Value-added Customer
SolutionsSee Appendix Two
48
13. We are all in sales! We all (a-l-l) sell
those Integrated Client Solutions. Good
salespeople dont blame others for screw-upsthe
Clint doesnt care. Good salespeople are
quarterbacks who make the system
work-deliver. 14. We all invest in wiring the
Client organizationwe develop comprehensive
relationships in every part (function, level) of
the Clients organization. We pay special
attention to the so-called lower levels, short
on glamour, long on the ability to make things
happen at the coalface. 15. We all live the
Brandwhich is Delivery of Matchless Integrated
Solutions which transform the Clients
organization. To live the brand is to become a
raving fan of XF co-operation.
49
C(I)gtC(E)Internal customer relations C(I)
are perhaps-often more important than external
relationships C(E). That is, if you Internal
Relationships are excellent, youll have your
whole company working for you to get your jobs to
the head of the queue.
50
Never waste a lunch!
51
???? XF lunches Measure!
52
Q/Systems Salesperson I make the sale, and then
the company screws up the engineering or delivery
or one of a dozen things. Any suggestions?A/TP
Spend less time with your customers!
53
9
54
K.i.s.s.Keep It Simple, Stupid
55
90K in U.S.A. ICUs on any given day 178
steps/day in ICU.50 stays result in serious
complicationSource Atul Gawande, The
Checklist (New Yorker, 1210.07)
56
Peter Pronovost, Johns Hopkins,
2001Checklist, line infections1/3rd at
least one error when he startedNurses/permissio
n to stop procedure if doc, other not
following checklistIn 1 year, 10-day
line-infection rate 11 to 0 Source Atul
Gawande, The Checklist (New Yorker, 1210.07)
57
10
58
TP How to flush 500,000 down the toilet in
one easy lesson!!
59
lt CAPEXgt People!
60
Organizations exist to serve. Period. Leaders
live to serve. Period. Passionate servant
leaders, determined to create a legacy of
earthshaking transformation in their domain
create/must necessarily create organizations
which are no less than Cathedrals in which the
full and awesome power of the Imagination and
Spirit and native Entrepreneurial flair of
diverse individuals is unleashed In passionate
pursuit of jointly perceived soaring purpose and
personal and community and client service
Excellence.
61
??? of people with
62
Dreams
63
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.
64
53 53
65
1 cause ofDis-satisfaction?
66
1st line supervisor!
67
Promotions
68
2/year legacy.
69
Hiring
70
?
71
Leaders SERVE people. Period. inspired by
Robert Greenleaf
72
In the end, management doesnt change culture.
Management invites the workforce itself to
change the culture. Lou Gerstner
73
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
74
We are a Life Success Company.Dave Liniger,
founder, RE/MAX
75
No matter what the situation, the excellent
managers first response is always to think
about the individual concerned and how things can
be arranged to help that individual experience
success. Marcus Buckingham, The One Thing You
Need to Know
76
11
77
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
78
Breakthrough 82 People! Customers! Action!
Values! In Search of Excellence
79
12
80
Hard Is Soft Soft Is Hard
81
Hard Is Soft (Plans, s)Soft Is Hard (people,
customers, values, relationships))
82
R.O.I.R.
83
Return On Investment In Relationships
84
FYI Relationship power Monopoly power
85
FYI Sustainable competitive advantage
Relationship-based advantage (period.)
86
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.

87
THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE
RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING
THE REAL PROBLEM.

88
13
89
For the engineers in the family
90
SF50 50 Equations on achieving success at
pretty much anything See Appendix Three
91
S ƒ ( ___ ) Success Is a Function of
92
S ƒ(PKWP)S ƒ(PKLP) of people you
know in the wrong places people you know in
low places
93
???????Success doesnt depend on the number of
people you know it depends on the number of
people you know in high places!or Success
doesnt depend on the number of people you know
it depends on the number of people you know in
low places!
94
S ƒ(TSHRO) Time spent ... Hurdle Removing for
Others
95
C.H.R.O. C.I.D.O. Chief Hurdle Removal
Officer Chief Impediment Destruction Officer
96
Ninety percent of what we call management
consists of making it difficult to get things
done. Peter Drucker
97
S ƒ(Thank you notes per Day,
flowers given per Month,
Acts of Appreciation per Week)
98
14
99
Notes from William EasterlysThe White Mans
Burden Why the Wests Effort to Aid the Rest
Have Done So Much Ill and so Little Good See
Appendix Four (three cases Development
assistance, Charlie Wilsons War, Drafting of the
U.S. Constitution)
100
The West spent 2.3 trillion on foreign aid
over the last five decades and still has not
managed to get twelve-cent medicines to children
to prevent half of all malaria deaths.
101
Planners apply global blueprints Searchers
adapt to local conditions. Planners at the top
lack knowledge of the bottom Searchers find out
what the reality is at the bottom. A planner
believes outsiders know enough to impose
solutions a Searcher believes only insiders have
enough knowledge to find solutions, and that most
solutions must be homegrown.
102
Ninety percent of success is showing up.
Woody Allen
103
Derived from the above and more, I have extracted
a series of lessons from the Easterly book.
These implementation lessons are, in fact,
universal Lesson (1 of sooooooo many) Show
up! (On the ground, where the actionand
possible implementationis.) Lesson Invest in
ceaseless study of conditions on the
groundsocial and political and historical
and systemic.
104
Lesson Talk to the locals. Lesson Listen to
the locals. Lesson Hear the locals. Lesson
Listen to the locals. Lesson Hear the
locals. Lesson Listen to the
locals. Lesson Hear the locals. Lesson
Listen to the locals. Lesson Hear to the
locals. Lesson Listen to the
locals. Lesson Hear to the locals. Lesson
Respect the locals. Lesson Empathize with the
locals.
105
Talk.Listen.Hear.Respect.
106
Noth-ing is scalable!
107
Nothing is scalable!Every replication must
exude the perception of uniquenesseven if it
means a half-step backwards. (It wouldnt have
worked if we hadnt done it our way.)
108
Buy in- Ownership-Authorial bragging
rights-Born again Champion One Line of Code!
109
Lesson Never forget the atmospherics, such as
numerous celebrations for tiny milestones
reached, showering praise on the local
leader and your local cohorts, while you
assiduously stand at the back of the
crowdetc. Lesson The experiment has failed
until the systems and political rewards,
often small, are in place, with Beta tests
completed, to up the odds of
repetition. Lesson Most of your on-the-ground
staff must consist of respected localsthe
de facto or de jure Chairman or CEO must be
a local you must be virtually invisible. Lesson
Spend enormous pointless social time with
the local political leadersin Gulf War I,
Norm Schwarzkopf spent his evenings, nearly
all of them, drinking tea until 2AM or 3AM
with the Saudi crown prince he called it his
greatest contribution!
110
Give good tea!Norm, Ben
111
Lesson For projects involving children or health
or education or community development or
sustainable small-business growth (most
projects), women are by far the most reliable
and most central and most indirectly powerful
local players even in the most chauvinist
settings.
112
94
113
15
114
Forget China, India and the Internet Economic
Growth Is Driven by Women. Headline, Economist,
April 15, 2006, Leader, page 14
115
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?
116
17/17
117
The greatest dangerfor most of usis not that
our aim istoo highand we miss it,but that it
istoo lowand we reach it.Michelangelo
118
appendix one
119
The Have you 50
120
Mapping your competitive position or
121
While waiting last week early December 2007 in
the Albany airport to board a Southwest Airlines
flight to Reagan, I happened across the latest
Harvard Business Review, on the cover of which
was a yellow sticker. The sticker had on it the
words Mapping your competitive position. It
referred to a feature article by my friend Rich
DAveni. His work is uniformly goodand I have
said as much publicly on several occasions dating
back 15 years. Im sure this article is good,
toothough I didnt read it. In fact it triggered
a furious negative Tom reaction as my wife
calls it. Of course I believe you should worry
about your competitive position. But instead of
obsessing on competitive position and other
abstractions, as the B-schools and consultants
would always have us do, I instead wondered about
some practical stuff which I believe is more
important to the short- and long-term health of
the enterprise, tiny or enormous.
122
Unfortunately many leaders of major companies
believe their job is to create the strategy,
organization and organization processesremaining
aloof from the people doing the work. George
Kohlrieser, Hostage at the Table (GK is, among
other things, a hostage negotiator with a 95
success rate)
123
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.)
124
1. Have you in the last 10 days visited a
customer?2. Have you called a customer TODAY?
125
Blog1231.07 FLASH! FLASH! FLASH! FOR IMMEDIATE
ACTION! FOR IMMEDIATE ACTION! FOR IMMEDIATE
ACTION! OLD YEARS RESOLUTION! Call (C-A-L-L!)
(NOT E-MAIL!) 25-50 (NO LESS THAN 25) people
TODAY to thank them for their support this
year (2007) and wish them and their families
and colleagues a Happy 2008!
Today TODAY N-O-W (not within the
hour) Remember ROIR gt ROI. ROIR Return On
Investment in Relationships. Success
ƒ(Relationships). This is the most important
piece of advice I have provided this
year. This is Not Optional. Trust me
This is fun!!!! Trust me This
works. Happy 2008!!!
126
I posted this at tompeters.com on New Years Eve
2007.
127
11. Have you in the last two days had a chat with
someone (a couple of levels down?) about specific
deadlines concerning a projects next steps? 12.
Have you in the last two days had a chat with
someone (a couple of levels down?) about specific
deadlines concerning a projects next steps and
what specifically you can do to remove a hurdle?
(Ninety percent of what we call management
consists of making it difficult for people to get
things done.Peter His eminence Drucker.) 13.
Have you celebrated in the last week a small
(or large!) milestone reached? (I.e., are you a
milestone fanatic?) 14. Have you in the last week
or month revised some estimate in the wrong
direction and apologized for making a lousy
estimate? (Somehow you must publicly reward the
telling of difficult truths.) 15. Have you
installed in your tenure a very comprehensive
customer satisfaction scheme for all internal
customers? (With major consequences for hitting
or missing the mark.) 16. Have you in the last
six months had a week-long, visible, very
intensive visit-tour of external customers? 17.
Have you in the last 60 days called an abrupt
halt to a meeting and ordered everyone to get
out of the office, and into the field and in
the next eight hours, after asking those
involved, fixed (f-i-x-e-d!) a nagging small
problem through practical action? 18. Have you in
the last week had a rather thorough discussion of
a cool design thing someone has come
acrossaway from your industry or functionat a
Web site, in a product or its packaging? 19.
Have you in the last two weeks had an informal
meetingat least an hour longwith a frontline
employee to discuss things we do right, things we
do wrong, what it would take to meet your mid- to
long-term aspirations? 20. Have you had in the
last 60 days had a general meeting to discuss
things we do wrong that we can fix in the
next fourteen days?
128
UniCredit Group/
UniCredito Italiano 3rd party
measurementCustomer-initiated
measurementPrimary incentivesFactories
Primary Corporate InitiativeEtc13TP/1
129
The director of staff services at the giant
financial services firm, UniCredit Group,
installed the most thorough internal customer
satisfaction measures scheme I have seenwith
exceptional rewards for those who make the grade
with their internal customers.
130
21. Have you had in the last year a one-day,
intense offsite with each (?) of your internal
customersfollowed by a big celebration of
things gone right? 22. Have you in the last
week pushed someone to do some family thing that
you fear might be overwhelmed by deadline
pressure? 23. Have you learned the names of the
children of everyone who reports to you? (If not,
you have six months to fix it.) 24. Have you
taken in the last month an interesting-weird
outsider to lunch? 25. Have you in the last month
invited an interesting-weird outsider to sit in
on an important meeting? 26. Have you in the last
three days discussed something interesting,
beyond your industry, that you ran across in a
meeting, reading, etc? 27. Have you in the last
24 hours injected into a meeting I ran across
this interesting idea in strange place? 28.
Have you in the last two weeks asked someone to
report on something, anything that constitutes an
act of brilliant service rendered in a trivial
situationrestaurant, car wash, etc? (And then
discussed the relevance to your work.) 29. Have
you in the last 30 days examined in detail (hour
by hour) your calendar to evaluate the degree
time actually spent mirrors your espoused
priorities? (And repeated this exercise with
everyone on team.) 30. Have you in the last two
months had a presentation to the group by a
weird outsider?
131
You Your calendarCalendars never lie
132
All we have is our time. The way we spend our
time is our priorities, is our strategy.
Your calendar knows what you really care about.
Do you?
133
31. Have you in the last two months had a
presentation to the group by a customer, internal
customer, vendor featuring working folks 3 or 4
levels down in the vendor organization? 32. Have
you in the last two months had a presentation to
the group of a cool, beyond-our-industry ideas by
two of your folks? 33. Have you at every meeting
today (and forever more) re-directed the
conversation to the practicalities of
implementation concerning some issue before the
group? 34. Have you at every meeting today (and
forever more) had an end-of-meeting discussion on
action items to be dealt with in the next 4, 48
hours? (And then made this list publicand
followed up in 48 hours.) And made sure everyone
has at least one such item.) 35. Have you had a
discussion in the last six months about what it
would take to get recognition in local-national
poll of best places to work? 36. Have you in
the last month approved a cool-different training
course for one of your folks? 37. Have you in
the last month taught a front-line training
course? 38. Have you in the last week discussed
the idea of Excellence? (What it means, how to
get there.) 39. Have you in the last week
discussed the idea of Wow? (What it means,
how to inject it into an ongoing routine
project.) 40. Have you in the last 45 days
assessed some major process in terms of the
details of the experience, as well as results,
it provides to its external or internal customers?
134
41. Have you in the last month had one of your
folks attend a meeting you were supposed to go to
which gives them unusual exposure to senior
folks? 42. Have you in the last 60 (30?) days sat
with a trusted friend or coach to discuss your
management styleand its long- and short-term
impact on the group? 43. Have you in the last
three days considered a professional relationship
that was a little rocky and made a call to the
person involved to discuss issues and smooth the
waters? (Taking the blame, fully deserved or
not, for letting the thing-issue fester.) 44.
Have you in the last two hours stopped by
someones (two-levels down") office-workspace
for 5 minutes to ask What do you think? about
an issue that arose at a more or less just
completed meeting? (And then stuck around for 10
or so minutes to listenand visibly taken
notes.) 45. Have you in the last day looked
around you to assess whether the diversity pretty
accurately maps the diversity of the market being
served? (And ) 46. Have you in the last day at
some meeting gone out of your way to make sure
that a normally reticent person was engaged in a
conversationand then thanked him or her, perhaps
privately, for their contribution? 47. Have you
during your tenure instituted very public
(visible) presentations of performance? 48. Have
you in the last four months had a session
specifically aimed at checking on the corporate
culture and the degree we are true to itwith
all presentations by relatively junior folks,
including front-line folks? (And with a
determined effort to keep the conversation
restricted to real world small casesnot
theory.) 49. Have you in the last six months
talked about the Internal Brand Promise? 50. Have
you in the last year had a full-day off site to
talk about individual (and group) aspirations?
135
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.

136
R.O.I.R.
137
Return On Investment In Relationships
138
Job One.
139
You must care. General Melvin Zais
140
Courtesies of a small and trivial character are
the ones which strike deepest in the grateful and
appreciating heart. Henry Clay
141
appendix two
142
The XF-50 50 Ways to Enhance Cross-Functional
Effectiveness and Deliver Speed, Service
Excellence and Value-added Customer Solutions
143
X XFXExcellence Cross-functional
Excellence
144
A 2007 letter from John Hennessy, president of
(1) Stanford University, to alumni laid out his
long-term vision for that esteemed institution.
The core of the visions promise was more
multi-disciplinary research, aimed at solving
some of the worlds complex systemic problems.
(2) The chief of GlaxoSmithKline, a few years
ago, announced a revolutionary new drug
discovery processhuman-scale centers of
interdisciplinary excellence, called Centers of
Excellence in Drug Discovery. (It worked.) (3)
Likewise, amidst a study of organization
effectiveness in the oil industrys exploration
sector, I came across a particularly successful
firmone key to that success was their physical
and organizational mingling of formerly warring
(two sets of prima donnas) geologists and
geophysicists.
145
(4) The cover story in Dartmouth Medicine, the
Dartmouth med school magazine, featured a
revolutionary approach, microsystems, as the
big idea that might save U.S. healthcare. The
nub is providing successful patient outcomes in
hospitals by forming multi-function patient-care
teams, including docs, nurses, labtechs and
others. (Co-operating doc may top the oxymoron
scale.) (5) One of the central responses to 911
is an effort to get intelligence services, home
to some of the worlds most viscous turf wars,
talking to one anotherwe may have seen some of
the fruits of that effort in the recently
released National Intelligence Estimate. And in
the military, inter-service co-operation has
increased by an order of magnitude since Gulf War
Onesome of the services communication systems
can actually be linked to those of other
services, a miracle almost the equal of the
Christmas miracle in my book!
146
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.
147
We have met the enemy and he is us. Walt
Kelly/Pogo
148
Schlumberger!
149
A January 2008 BusinessWeek cover story informed
us that Schlumberger may well take over the
world THE GIANT STALKING BIG OIL How
Schlumberger Is Rewriting the Rules of the Energy
Game. In short, Schlumberger knows how to
create and run oilfields, anywhere, from drilling
to fullscale production to distribution. And the
nugget is hardcore, relatively small, technically
accomplished, highly autonomous teams. As China
and Russia, among others, make their move in
energy, state run companies are eclipsing the
major independents. (Chinas state oil company
just surpassed Exxon in market value.) At the
center of it all, abetting these new players who
are edging out the Exxons and BPs, the Kings of
Large-scale, Long-term Project Management wear
Schlumberger overalls. (The pictures in the
article from Siberia alone are worth the cover
price.) At the center of the center of the
Schlumberger empire is a relatively newly
configured outfit, reminiscent of IBMs Global
Services and UPS integrated logistics experts
and even Best Buys now ubiquitous Geek Squads.
The Schlumberger version is simply called IPM,
for Integrated Project Management. It lives in a
nondescript building near Gatwick Airport, and
its chief says it will do just about anything an
oilfield owner would want, from drilling to
productionthat is, as BusinessWeek put it,
IPM strays from Schlumbergers traditional
role as a service provider and moves deeper into
areas once dominated by the majors. (My old pal
was solo on remote offshore platforms
interpreting geophysical logs and the like.)
150
8. XF work is the direct work of leaders! 9.
Integrated solutions Our Culture.
(Therefore XF Our culture.) 10. Partner with
best-in-class only. Their pursuit of Excellence
helps us get beyond petty bickering. An all-star
team has little time for anything other than
delivering on the (big) Client promise. 11. All
functions are created equal! All functions
contribute equally! All All. 12. All functions
are PSFs, Professional Service Firms.
Professionalism is the watchwordand true
Professionalism rise above turf wars. You are
your projects, your legacy is your projectsand
the legacy will be skimpy indeed unless you pass,
with flying colors, the works well with others
exam! 13. We are all in sales! We all (a-l-l)
sell those Integrated Client Solutions. Good
salespeople dont blame others for screw-upsthe
Clint doesnt care. Good salespeople are
quarterbacks who make the system
work-deliver. 14. We all invest in wiring the
Client organizationwe develop comprehensive
relationships in every part (function, level) of
the Clients organization. We pay special
attention to the so-called lower levels, short
on glamour, long on the ability to make things
happen at the coalface. 15. We all live the
Brandwhich is Delivery of Matchless Integrated
Solutions which transform the Clients
organization. To live the brand is to become a
raving fan of XF co-operation.
151
C(I)gtC(E)Internal customer relations C(I)
are perhaps-often more important than external
relationships C(E). That is, if you Internal
Relationships are excellent, youll have your
whole company working for you to get your jobs to
the head of the queue.
152
16. We use the word partner until we want to
barf! (Words matter! A lot!) 17. We use the word
team until we want to barf. (Words matter! A
lot!) 18. We use the word us until we want to
barf. (Words matter! A lot!) 19. We obsessively
seek Inclusionand abhor exclusion. We want more
people from more places (internal, externalthe
whole supply chain) aboard in order to maximize
systemic benefits. 20. Buttons Badges matterwe
work relentlessly at team (XF team) identity and
solidarity. (Corny? Get over it.) 21. All
(almost all) rewards are team rewards. 22. We
keep base pay rather lowand give whopping
bonuses for excellent team delivery of seriously
cool cross-functional Client benefits. 23. WE
NEVER BLAME OTHER PARTS OF THE ORGANIZATION FOR
SCREWUPS. 24. WE TAKE THE HEATTHE WHOLE TEAM.
(For anything and everything.) (Losing, like
winning, is a team affair.) 25. BLAMING IS AN
AUTOMATIC FIRING OFFENSE. 26. Women rule.
Women are simply better at the XF communications
stuffless power obsessed, less hierarchically
inclined, more group-team oriented.
153
Womens Negotiating
StrengthsAbility to put themselves in their
counterparties shoesComprehensive, attentive
and detailed communication styleEmpathy that
facilitates trust-buildingCurious and attentive
listeningLess competitive attitudeStrong
sense of fairness and ability to
persuadeProactive risk managerCollaborative
decision-makingSource Horacio Falcao, Cover
story/May 2006, World Business, Say It Like a
Woman Why the 21st-century negotiator will need
the female touch
154
Womens Strengths Match New Economy Imperatives
Link rather than rank workers favor
interactive-collaborative leadership style
empowerment beats top-down decision making
sustain fruitful collaborations comfortable with
sharing information see redistribution of power
as victory, not surrender favor
multi-dimensional feedback value technical
interpersonal skills, individual group
contributions equally readily accept ambiguity
honor intuition as well as pure rationality
inherently flexible appreciate cultural
diversity. Judy B. Rosener, Americas
Competitive Secret Women Managers
155
TAKE THIS QUICK QUIZ Who manages more things
at once? Who puts more effort into their
appearance? Who usually takes care of the
details? Who finds it easier to meet new
people? Who asks more questions in a
conversation? Who is a better listener? Who
has more interest in communication skills? Who
is more inclined to get involved? Who
encourages harmony and agreement? Who has
better intuition? Who works with a longer to
do list? Who enjoys a recap to the days
events? Who is better at keeping in touch
with others?Source Selling Is a Womans Game
15 Powerful Reasons Why Women Can Outsell Men,
Nicki Joy Susan Kane-Benson
156
27. Every member of our team is an honored
contributor. XF project Excellence is an all
hands affair. 28. We are our XF Teams! XF
project teams are how we get things done. 29.
Wow Projects rule, large or smallWow projects
demand by definition XF Excellence. 30. We
routinely attempt to unearth and then reward
small gestures of XF co-operation. 31. We
invite Functional Bigwigs to our XF project team
reviews. 32. We insist on Client team
participationfrom all functions of the Client
organization. 33. An Open talent market helps
make the projects silo-free. People want in on
the project because of the opportunity to do
something memorableno one will tolerate delays
based on traditional functional squabbling. 34.
Flat! Flat Flattened Silos. Flat Excellence
based on XF project outcomes, not power-hoarding
within functional boundaries. 35. New C-level?
We more or less need a C-level job titled Chief
Bullshit Removal Officer. That is, some kind of
formal watchdog whose role in life is to make
cross-functionality work, and I.D. those who
dont get with the program. 36. Huge (H-U-G-E)
co-operation bonuses. Senior team members who
conspicuously shine in the working together bit
are rewarded or punished Big Time. (A million
bucks in one case I knowand a non-cooperating
very senior was sacked.)
157
James Robinson III 500K (on the spot,
collaboration)Alan Puckett Fire the best!
(failure to collaborate)
158
37. Get physical!! Co-location is the most
powerful culture changer. Physical X-functional
proximity is almost a guarantee (yup!) of
remarkably improved co-operationto aid this one
needs flexible workspaces that can be mobilized
for a team in a flash. 38. Ad hoc. To improve the
new X-functional Culture, little XF teams
should be formed on the spot to deal with an
urgent issuethey may live for but ten days, but
it helps the XF habit, making it normal to be
working the XF way. 39. Deep dip. Dive three
levels down in the organization to fill a senior
role with some one who has been pro-active on the
XF dimension. 40. Formal evaluations. Everyone,
starting with the receptionist, should have an
important XF rating component in their
evaluation. 41. Demand XF experience for,
especially, senior jobs. The military requires
all would-be generals and admirals to have served
a full tour in a job whose only goals were
cross-functional. Great idea! 42. Early project
management experience. Within days, literally,
of coming aboard folks should be running some
bit of a project, working with folks from other
functionshence, all this becomes as natural as
breathing. 43. Get em out with the customer.
Rarely does the accountant or bench scientist
call one the customer. Reverse that. Give
everyone more or less regular customer-facing
experiences. One learns quickly that the
customer is not interested in our in-house turf
battles!
159
44. Put it on theevery agenda. XF issues to
be resolved should be on every agendamorning
project team review, weekly exec team meeting,
etc. A next step within 24 hours (4?) ought to
be part of the resolution. 45. XF honest broker
or ombudsman. The ombudsman examines XF friction
events and acts as Conflict Resolution
Counselor. (Perhaps a formal conflict resolution
agreement?) 46. Lock it in! XF co-operation,
central to any value-added mission, should be an
explicit part of the Vision Statement. 47.
Promotions. Every promotion, no exceptions,
should put XF Excellence in the top 5 (3?)
evaluation criteria. 48. Pick partners based on
their co-operation proclivity. Everyone must be
on board if this thing is going to work hence
every vendor, among others, should be formally
evaluated on their commitment to XF
transparencye.g., can we access anyone at any
level in any function of their organization
without bureaucratic barriers? 49. Fire vendors
who dont get itmore than get it, welcome
it with open arms. 50. Jaw. Jaw. Jaw. Talk XF
cooperation-value-added at every opportunity.
Become a relentless bore! 51. Excellence! There
is a state of XF Excellence per se. Talk about
it. Pursue it. Aspire to nothing less.
160
X XFXExcellence Cross-functional
Excellence
161
C-levels to Abet Cross-functional Excellence
CGRO/Chief Grunge Removal OfficerCXFCO/Chief
Cross-functional Communication OfficerCIS-CDO/Chi
ef Information Sharing Common Database
OfficerCHRO(PMLC) /Chief Human Resources Officer
(Project Managers, Love and Care of)CPMFO/Chief
Project Management Finance OfficerCTAO/Chief
Team-space Assignments OfficerCE(XFNC) /Chief
Executioner (Cross-functional Non-cooperation!)C
XFBPDO/Chief Cross-functional Brownie-points
Dispensing Officer
162
In We have C-level officers for any damn thing
you can mention. So I thought Id add my voice to
the fray. If XF (Cross-functional) performance is
a/the paramount issue for modern enterprise
effectiveness (where one is bringing to bear the
wherewithal of the entire enterprise to provide
high-value, systemic solutions for customers),
then XFX/Cross-functional excellence is
necessarily priority 1. And we need an exec to
lead the chargetry these job titles on for size!
163
The XF Bible Building a Knowledge-driven
Organization Overcome Resistance to the Free
Flow of Ideas. Turn Knowledge into New Products
and Services. Move to a Knowledge-based Strategy
Robert Buckman
164
The 180-degree Middle Manager Flip _at_ Buckman
Labs From information choke points To
knowledge transfer facilitators, with 100
(!!!) of their rewards based on spurring
co-operation across former barriers.
165
Bob Buckman runs Buckman Labs, a half-billion
dollar, Memphis-based specialty chemicals
company. You might well roll your eyes at the
overused customer solutions monikerbut Buckman
does just that with panache and for profit,
creating and applying chemical compounds in
customized ways to deal with production and
cleanup issues for specific customer facilities
in the likes of the paper and leather-making
industries. The devotion to custom solutions is
the bedrock, the alpha to omega, of the firms
extraordinary new-product and financial record.
Those closer to the intellectual fray than me
claim that Bob gets inventor rights in the now
ubiquitous knowledge management arena. In any
event, this book is the Buckman Labs saga in
extraordinary detailit is particularly valuable
because it moves so far beyond the relatively
easy software-technology bit and emphasizes the
way in which a companys culture must be jerked
around 180-degrees to destroy former functional
barriers. E.g., middle managers, typically choke
points guarding information and access to their
domain, became knowledge transfer facilitators,
with 100 (!!!) of their rewards based on
spurring co-operation across former barriers.
166
appendix three
167
Attending to the Last 98 The New Management
Science, or Hard Is Soft, Soft Is
Hard Tom Peters/17 April 2008
168
Alternate title
169
Attending to the Last 98 flower power! Tom
Peters/17 April 2008
170
FLOWERPOWER
FLOWERPOWER
171
Hold in your mind the idea of flower
powermore to come!
172
S ƒ ( ___ ) Success Is a Function of
173
SF50 Success Is a Function of ... What
follows are not in fact true mathematical
formulaeobviously. Nonetheless, in tribute to my
own scientific background, and, more important,
that of many seminar participants, I have chosen
this formatwhich seems to work for those of my
ilk to whom it has been exposed
174
SF50 50 Equations on achieving success at
pretty much anything
175
S ƒ(DR -2L, -3L, 4L, IE) Success is a
function of Number and depth of relationships 2,
3, and 4 levels down inside and outside the
organization S ƒ(SDgtSU) Sucking down is more
important than sucking upthe idea is to have the
your entire organization working for you. S
ƒ(non-FF, non-FL) Number of friends not in my
function S ƒ(XFL/m) Number of lunches with
colleagues in other functions per month S
ƒ(FF) Number of friends in the finance
organization
176
Loser Hes such a suck-up!Winner
Hes such a suck-down.
177
Never waste a lunch! More or less
178
S ƒ(PKWP)S ƒ(PKLP) of people you
know in the wrong places people you know in
low places
179
???????Success doesnt depend on the number of
people you know it depends on the number of
people you know in high places!or Success
doesnt depend on the number of people you know
it depends on the number of people you know in
low places!
180
It helps to know people in high places!
181
It helps more to know people in low places!
182
Gust Avrakotos boiler room CIA palsWalters
enabler P.M. Thank You notesFlexirents XSecs
Customer PA lunchesAnybodys XSecAnybodys
PAAll customer Purchasing Dept
receptionistsSecy Chaffees letter
writerMcKinsey report prep staffMcKinsey
research staffAdmirals AideCongressional
Committee staff drafterCongressmans appropriate
LAAnybody in Finance
183
The previous entries are shorthand for stories
about low level relationships determining high
level decisionsor at least having surprising
impact. Flexirent is an Australian consumer
financial services company. Its offerings are
mostly made through retailersand following the
80-20 rule, a small of retailers control a
large share of Flexirents business. The
Executive Secretary-PA (Personal Assistant) to
Flexirents CEO is a bright, energetic, outgoing
person. Along the way, and not accidentally, she
has developed very close relationships to the Pas
of most of the CEOs of Flexirents major
customers. Among other things, she more or less
regularly (quarterly, roughly) takes her PA pals
out for lunch. The goal on both sides is clear,
understood and shamelessto enhance unvarnished
communications among these true power players.
One can only imagine the number of times, over,
say, five years, that this back channel (front
Channel, in reality) has paved the way for
success and staved off disasters. The rest of the
entries on the slide are of the same ilk.
184
S ƒ(OF) Number of oddball friends S
ƒ(PDL) Purposeful, deep listeningthis is very
hard S ƒ(DSTM, EH, TTAGFG) Dont shoot the
messengerembrace him! Truth-tellers are gifts
from God! S ƒ(EODD3MC) Number of
end-of-the-day difficult (youd rather avoid)
3-minutecalls that sooth raw feelings, mend
fences, etc. S ƒ(UFP, UFK, OAPS) Unsolicited
favors performed, UFs involving co-workers kids,
overt acts politeness-solicitude toward
co-workers spouses, parents, etc.
185
18 Source How Doctors Think, Jerome Groopman
186
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.

187
S ƒ(TSHRO) Time spent ... Hurdle Removing for
Others
188
Peter Drucker once famously said, Ninety-percent
of what we call management consists of making
it difficult for people to get things done.
There is more than a grain of truth to that. On
the other side, and there can be an other side,
I see the managers principal role as identifying
things that get in peoples way (by asking them!)
and meticulously getting those things out of
their way. Thence, you could cal the boss the
CIRO, or Chief Impedance Reduction Officer, or my
choice, CHR, Chief Hurdle Remover. In any event
the idea is that this is a/the primary task the
boss performsand that it is a systematic,
pro-active affair (e.g., on the daily agenda).
189
S ƒ(AC, PTS/OLC, SAPA) Absolute of
consultations, perception of being taken
seriously (Responsible for one line of code),
small acts of public appreciation S
ƒ(1D) Seeking the assignment of writing first
drafts, minutes, etc. (1787) S ƒ(SEAs) Number
of solid relationships with Executive
Assistants S ƒ(UL/w-m) useful lunches per
week, month S ƒ(FG, FOC-BOF, CMO) Favors
given, favors owed collectively, balance of
favors, conscious management thereof
190
Buy in- Ownership-Authorial bragging
rights-Born again Champion One Line of Code!
191
It works this way, Tom. Youre talking to a guy
whos important to implementation down where the
rubber meets the road. Hes skepticalhe either
really is, or its the act he chooses to play.
You go over the thing with him and he has a
thousand objections. You nod your head a lot, and
take copious notes. Then you go back to your
guys, and you find a few places where you can
very specifically accommodate him. You make the
changes, even if they are pretty ugly. Then you
go back to him, and show him exactly what youve
done. You have a born again supporter. You
took him seriouslyand through the changes, hes
now your co-inventor, your savior. Now hes doing
the selling for you. Hey, the whole damn thing
wouldnt have worked were it not for his
interjectionsthats the way he frames it to his
folks. I tell you, it never fails.Source
Australian IS-IT chief, mid-sized company in
financial services
192
S ƒ(SU) Showing up (Woody Allen, Delawares
ridiculous influence on the Constitution of the
USA) S ƒ(KSU, R) Keep showing up
relentlessness (U.S. Grant!!) S ƒ(DW,
TMSTTOG) Drill wells, try more stuff than the
other guy (John Masters, Mike Bloomberg)
193
Ninety percent of success is showing up.
Woody Allen
194
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
195
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
196
S ƒ(CM) Conscious calendar management (the
calendar never lies)
197
You Your calendarCalendars never lie!
198
You must be the change you wish to see in the
world.Gandhi
199
S ƒ(CPRM, TS) Conscious-planned Relationship
management, time spent thereon
200
R.O.I.R.
201
Far more important than ROI!
202
Return On Investment In Relationships
203
FYI Relationship power Monopoly power
204
The goal is clearan unfair share of attention
from an internal staffer, a vendor, a customer.
We unabashedly pursue through good-better-best
relationships de facto monopolythe
monopolization of other important folks love and
affection, as it were.
205
FYI Sustainable competitive advantage
Relationship-based advantage (period.)
206
Some Resources
Relationships The Managers Book of Decencies
How Small Gestures Build Great CompaniesSteve
Harrison RespectSara Lawrence-Lightfoot Hostmansh
ip The Art of Making People Feel Welcome Jan
Gunnarsson Olle Blohm (leader as host to his-
her employees) The SPEED of Trust The One Thing
that Changes EverythingStephen M.R.
Covey The Dream Manager Matthew Kelly The
Customer Comes Second Put Your People First and
Watch Em Kick ButtHal Rosenbluth and Diane
McFerrin Peters (no relationbe delighted if she
was) Crucial ConversationsKerry Patterson,
Joseph Grenny, Ron McMillan, Al Switzler
Crucial Confrontations Kerry Patterson, Joseph
Grenny, Ron McMillan, Al Switzler Influence
Science and PracticeRobert Cialdini Emotional
Intelligence Why It Can Matter More Than
IQDaniel Goleman
207
A few of my favorite reads on this
topicespecially 1. The idea of
competitive-advantage-through-decency is
extraordinary. Of course, we know thisbut to
see it spelled out this way may change the course
of your professional life.
208
S ƒ(TN/d, FG/m, AA/d) Thank you notes per Day,
flowers given per Month, Acts of Appreciation per
Day S ƒ(WLHAO) Willingness to laugh heartily
at oneself S ƒ(PTA100ATS, ENMF,
TTT) Proactive, timely, 100 apologies for tiny
screw-ups, even if not my fault (it always takes
two to tango) S ƒ(AMR, NBS-SG) Acceptance of
mutual responsibilities for all affairs, no
blame-shifting, scape-goating S ƒ(RP,
PRPgtgtP) Never forget, and act accordingly
Response to the screwup- problem and perception
thereof is (far, far) more important than the
problem itself! S ƒ(APLSLFCT) Awareness,
perception of little snubsand lightening fast
correction thereof
209
S ƒ(RCV) Reduced customer visits ( more time
on internal customer relationshipsthat allow
us to deliver on customer promises) S
ƒ(UPIATI) Understanding Perception is all
there is! S ƒ(EM/NSTLT FITU,
-80) Everything matters/No such thing as a
little thingetching of fly in the urinal in
Amsterdam airport reduces spillage by 80 S
ƒ(ALIOE) Attention to little Indicators Of
Excellencee.g. fresh flowers at the reception
desk S ƒ(GGT) Give good teaBen Franklin in
Paris in 1777, Norm Schwarzkopf with the Saudi
Crown Prince during Gulf War I effectiveness at
socializing with the power behind the throne

210
Give good tea!Norm S, Ben F
211
S ƒ(TN/d, FG/m, AA/d) Thank you notes per Day,
flowers given per Month, Acts of Appreciation per
Day S ƒ(WLHAO) Willingness to laugh heartily
at oneself S ƒ(RP, PRPgtgtP) Never forget, and
act accordingly Response to the screwup- problem
and perception thereof is (far, far) more
important than the problem itself! S
ƒ(APLSLFCT) Awareness, perception of little
snubsand lightening fast correction thereof
212
S ƒ(3XOC) Over-communicate (status,
problems) by a factor of three
213
THE PROBLEM IS RARELY/ NEVER THE PROBLEM. THE
RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING
THE REAL PROBLEM.

214
S ƒ(Thank you notes per Day,
flowers given per Month,
Acts of Appreciation per Week)
215
The deepest human need is the need to be
appreciated.William James
216
Courtesies of a small and trivial character are
the ones which strike deepest in the grateful and
appreciating heart. Henry Clay
217
S ƒ(PTA100ATS, ENMF, TTT) Proactive,
timely, 100 apologies for tiny screw-ups, even
if not my fault (it always takes two to tango) S
ƒ(AMR, NBS-SG) Acceptance of mutual
responsibilities for all affairs, no
blame-shifting, scape-goating
218
Power phrase Im really sorry.
219
Amazing how rare this iswhich of course is why
its so powerful
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