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The Challenge: To Create More Value in All Negotiations

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


1
(No Transcript)
2
LONGTom Peters EXCELLENCE. ALWAYS.ZIM
Integrated Shipping ServicesNEWAVE08/AgenTeam02
July 2008/Macau (Taipa-Coloane)
3
NOTE To appreciate this presentation and
ensure that it is not a mess, you need Microsoft
fonts Showcard Gothic, Ravie, Chiller
and Verdana
4
Auckland/pmtaipei/vpsingapore/pmbangkok/dpmfla
ndersamsterdam/MPsbarcelona/maKuala
Lumpur/CMlisbon/madublin/pmbuenos airessão
pauloWarsaw/MPslondon/mpsmilanSEOUL/Mamexico
d.f./mistanbul/dpmdubai/rfmoman/rfmusastockho
lm/mpsmauritius/pmjohannesburgbucharest/CM
5
Slides at tompeters.com
6
Thank you Ike, Ben and Delaware
7
Allied commands depend on mutual confidence
and this confidence is gained, above all
through the development of friendships.
General D.D. Eisenhower, Armchair General
(05.08)Perhaps his most outstanding ability
at West Point was the ease with which he made
friends and earned the trust of fellow cadets
who came from widely varied backgrounds it was
a quality that would pay great dividends during
his future coalition command
8
Give good tea!
9
eighty percent of success is showing up.
Woody Allen
10
l (21) L(-21)
11
Thank you Rich!
12
Mapping your competitive position or
Rich DAveni/HBR
13
The Have you 50See Appendix One
14
1. Have you in the last 10 days
visited a customer?2. Have you called a
customer TODAY?
Note See APPENDIX ONE
for full list
15
We Have Thank you, Howard!
16
Internal organizational excellence Deepest
Blue Ocean
17
New technology, by itself, has little economic
benefit. The economic benefits arise not from
innovation itself, but from the entrepreneurs who
eventually discover ways to put innovation to
practical use and, most critically, from the
organizational changes through which businesses
reshape themselves to take advantage of new
technology. Marc Levinson, The Box How the
Shipping Container Made the World Smaller and
the World Economy Bigger
18
Thank you , Phil
19
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
20
Thank you, Eleanor
21
Do one thing every day that scares you.
Eleanor Roosevelt
22
1
23
I am often asked by would-be entrepreneurs
seeking escape from life within huge corporate
structures, How do I build a small firm for
myself? The answer seems obvious Buy a very
large one and just wait. Paul Ormerod, Why
Most Things Fail Evolution, Extinction and
Economics
24
Mr. Foster and his McKinsey colleagues collected
detailed performance data stretching back 40
years for 1,000 U.S. companies. They found that
none of the long-term survivors managed to
outperform the market. Worse, the longer
companies had been in the database, the worse
they did. Financial Times
25
Dick Kovacevich You dont get better by being
bigger. You get worse.
26
Data drawn from the real world attest to a fact
that is beyond our control Everything in
existence tends to deteriorate. Norberto
Odebrecht, Education Through Work
27
1.1
28
1 Exporter?
29
4 Japan3 USA2 China1 Germany
30
Reason!!!Mittelstand
31
Or Goldmann Produktions(11/50/5M/dip and
coat, expensive pigments vs through coloring,
fades Bekro Chemie)
32
2
33
1/42
34
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
35
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
36
Experiment fearlesslySource BW0821.06, Type
A Organization Strategies/ How to Hit a Moving
TargetTactic 1
37
Culture of PrototypingEffective prototyping
may be the most valuable core competence an
innovative organization can hope to have.
Michael Schrage

38
FAIL, FAIL AGAIN. FAIL BETTER. Samuel Beckett
39
You miss 100 of the shots you never take.
Wayne Gretzky
40
Excellence1982 The Bedrock Eight Basics 1. A
Bias for Action 2. Close to the Customer 3.
Autonomy and Entrepreneurship 4. Productivity
Through People 5. Hands On, Value-Driven 6. Stick
to the Knitting 7. Simple Form, Lean Staff 8.
Simultaneous Loose-Tight Properties
41
2.1
42
Speed/ Tempo/o.o.d.a. loops/ Metabolic
Management
43
Messin with their minds He who has the quickest
O.O.D.A. Loops wins!Observe. Orient.
Decide. Act. /Col. John Boyd
44
3
45
2-5/42
46
De-cent-ral-iz-a-tion!
47
Enemy 1I.C.D.Note 1 Inherent/Inevitable/Imm
utable Centralist DriftNote 2 Jim Burkes
1-word vocabulary No.
48
The True Logic of Decentralization6 divisions
6 tries6 divisions 6 DIFFERENT leaders
6 INDEPENDENT tries Max probability of
win6 divisions 6 very DIFFERENT leaders 6
very INDEPENDENT tries Max probability of
far out/3-sigma winDriver Law of
Large s
49
Best practice ZERO Standard Deviation
50
Parallel Universe China!!!!!!!
51
Decentralization vs Centralization Thats All
There Is (from childrearing 101 to the
Federalist Papers to Org.2007)
52
Ex-e-cu-tion!
53
Execution is the job of the business leader.
Larry Bossidy Ram Charan/ Execution The
Discipline of Getting Things Done
54
(1) sum of Projects Goal
(Vision) (2) sum of Milestones
project(3) rapid Review
Truth-telling accountability
55
Ac-count-a-bil-ity!
56
GE has set a standard of candor. There is no
puffery. There isnt an ounce of denial in the
place. Kevin Sharer, CEO Amgen, on the GE
mystique (Fortune)
57
CF 30 (no salesfolk)MH 80 (salesfolk)
58
615A.M.
59
DECENTRALIZATION.EXECUTION.ACCOUTABILITY.61
5A.M.
60
3.1
61
K.i.s.s.Keep It Simple, Stupid
62
Case The simple Checklist!
63
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)
64
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)
65
Docs, nurses make own checklists on whatever
process-procedure they chooseWithin weeks,
average stay in ICU down 50Source Atul
Gawande, The Checklist (New Yorker, 1210.07)
66
Beware of the tyranny of making Small Changes to
Small Things. Rather, make Big Changes to Big
Things. Roger Enrico, former Chairman, PepsiCo
67
Beware of the tyranny of making Small Changes
to Small Things. Rather, make Big Changes to Big
Things using Small, Almost Invisible
Straightforward Levers with Big Systemic Impact.
TP
68
Everything matters -80 Source Nudge,
Richard Thaler and Cass Sunstein, etching of fly
in the urinal reduces spillage by 80,
Schiphol Airport
69
4
70
1/42
71
X XFXExcellence Cross-functional
Excellence
72
Stanford/Hagadorn/Interdisciplinary raison
dêtreConoco/geologists-geophysicistsOld
HP/RD-SalesSchlumberger IPM-IBM Global
Services- UPS Logistics, HP-EDS (bet the
company on integrating others product and
service delivery throughout the supply
chain)GSK/7 CEDDsChiat/DayBatalden/DHMC/
clinical microsystemsJCS assignment
pre-FlagEtc.Etc.
73
The XF-50 50 Ways to Enhance Cross-Functional
Effectiveness and Deliver Speed, Service
Excellence and Value-added Customer Solutions
74
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.
75
Never waste a lunch!
76
???? XF lunches Measure!
77
???????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!
78
Promote FRSs (Friction Reduction
Specialistsnobody can figure out what they do
but when theyre around things mysteriously get
done (Women? Not clear)FRSs kin to HROs, IROs
(Hurdle Removal Officers, Impedance Reduction
Officers)
79
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.
80
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.
81
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.)
82
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!
83
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.
84
1. Most Tries Wins2. DECENTRALIZATION.3.
EXECUTION.4. ACCOUTABILITY.5. 615A.M.6. XFX
85
(No Transcript)
86
5
87
Hard Is SoftSoft Is Hard
88
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
89
5.1
90
Hard Is SoftSoft Is Hard
91
R.O.I.R.
92
Return On Investment In Relationships
93
The capacity to develop close and enduring
relationships is the mark of a leader.
Unfortunately, many leaders of major companies
believe their job is to create the strategy,
organization structure and organizational
processesthen they just delegate the work to be
done, remaining aloof from the people doing the
work. Bill George, Authentic Leadership
94
FYI Relationship power Monopoly power
95
FYI Sustainable competitive advantage
Relationship-based advantage (period.)
96
5.2
97
The four most important words in any
organization are What do you think?
Source courtesy Dave Wheeler, posted at
tompeters.com, source of original unknown
(0609.08)
98
18 Source How Doctors Think, Jerome Groopman
99
5.3
100
Hard Is SoftSoft Is Hard
101
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.

102
THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE
RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING
THE REAL PROBLEM.

103
5.4
104
Courtesies of a small and trivial character are
the ones which strike deepest in the grateful and
appreciating heart. Henry Clay
105
The Managers Book of Decencies How Small
/gestures Build Great Companies. Steve
Harrison, Adecco
106
5.5
107
Attending to the Last 98 The New
Management Science, or Hard Is Soft, Soft
Is Hard NOTE Complete section at APPENDIX 2
108
S f( ___ ) Success Is a Function of
109
S ƒ(DR -2L, -3L, 4L IE) 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 entire
organization working for you. S ƒ(non-FF,
non-FL) Number of friends, number of lunches
with people not in my function S ƒ(FF) Number
of friends in the finance function-organization S
ƒ(OF) Oddball friends S ƒ(PDL) Purposeful,
deep listeningthis is very hard
110
6
111
EXCELLENCE. VALUE ADDED.UP THE LADDER.NoT
Optional.
112
The Value-added Ladder/ BEDROCK Raw
MaterialsFarmers and Miners (Degree
Weightlifting)
113
The Value-added Ladder/ THINGSGoods Raw
Materials Engineers and Factory Workers
(Degree Engineering)
114
The Value-added Ladder/TRANSACTIONSServicesGo
ods Raw Materials Clerks (Degree Process
Engineering)
115
6.1
116
LEAVE IT TO BEAVER.
117
Trapper lt20 per beaver pelt.Source WSJ
118
wdcp/Wildlife Damage-control Professional
150 to remove problem beaver 750-1,000
for flood-control piping so that beavers can
stay. Source WSJ
119
Trapper RedneckWDCP PSF/ Professional
Services Provider
120
7X to 40Xfor Solution rather than
service transaction
121
EXCELLENCE.VALUE-ADDED LADDER. SOLVE IT.
122
M 0
123
IBM 55BAlso HP-EDS
124
And the M Stands for ?Gerstners IBM
Systems Integrator of choice./BW (Lou, help
us turn all this into that long-promised
revolution. ) IBM Global Services
(Integrated Systems Services Corp.) 55B
125
Planetary Rainmaker-in-Chief!Palmisanos
strategy is to expand techs borders by pushing
usersand entire industriestoward radically
different business models. The payoff for IBM
would be access to an ocean of revenuePalmisano
estimates it at 500 billion a year that
technology companies have never been able to
touch. Fortune
126
By making the Global Delivery Model both
legitimate and mainstream, we have brought the
battle to our territory. That is, after all, the
purpose of strategy. We have become the leaders,
and incumbents IBM, Accenture are followers,
forever playing catch-up. However, creating a
new business innovation is not enough for rules
to be changed. The innovation must impact
clients, competitors, investors, and society. We
have seen all this in spades. Clients have
embraced the model and are demanding it in even
greater measure. The acuteness of their
circumstance, coupled with the capability and
value of our solution, has made the choice not a
choice. Competitors have been dragged kicking and
screaming to replicate what we do. They face
trauma and disruption, but the game has changed
forever. Investors have grasped that this is not
a passing fancy, but a potential restructuring of
the way the world operates and how value will be
created in the future. Narayana Murthy,
chairmans letter, Infosys Annual Report
127
THE GIANT STALKING BIG OIL How Schlumberger Is
Rewriting the Rules of the Energy Game. IPM
Integrated Project Management strays from
Schlumbergers traditional role as a service
provider and moves deeper into areas once
dominated by the majors. Source BusinessWeek
cover story, January 2008
128
Big Browns New Bag UPS Aims to Be the Traffic
Manager for Corporate America Headline/BW
UPS wants to take over the sweet spot in the
endless loop of goods, information and capital
that all the packages it moves represent.
ecompany.com (E.g., UPS Logistics manages the
logistics of 4.5M Ford vehicles, from 21 mfg.
sites to 6,000 NA dealers)
129
MasterCard Advisors
130
We want to be the air traffic controllers of
electrons.Bob Nardelli, GE Power Systems
131
California Closets a whole-life upgrade, not
just a tidy bedroom. WSJ/0329.07, Why the
Container-Store Guy Wants to Be Your Therapist
132
Huge Customer Satisfaction versus Customer
Success
133
Customer Satisfaction to Customer Success
Were getting better at Six Sigma every day.
But we really need to think about the customers
profitability Are customers bottom lines really
benefiting from what we provide them? Bob
Nardelli, then chief of GE Power Systems
134
The Value-added Ladder/TRANSFORMATION Customer
Success/ Gamechanging SolutionsServicesGoods
Raw Materials
135
The business of selling is not just about
matching viable solutions to the customers that
require them. Its equally about managing the
change process the customer will need to go
through to implement the solution and achieve the
value promised by the solution. One of the key
differentiators of our position in the market is
our attention to managing change and making
change stick in our customers organization.
(E.g. CRM failure rate/Gartner 70) Jeff
Thull, The Prime Solution Close the Value Gap,
Increase Margins, and Win the Complex Sale
136
Era 1/Obvious Value Our it works, is
delivered on time (Close)Era 2/Augmented
Value How our it can add valuea useful it
(Solve)Era 3/Complex Value Networks How
our system can change you and deliver business
advantage (Culture-Strategic
change)Source Jeff Thull, The Prime Solution
Close the Value Gap, Increase Margins, and Win
the Complex Sale
137
The Value-added Ladder/TRANSFORMATION Customer
Success through Implemented Gamechanging
SolutionsServicesGoods Raw Materials
Subject-matter Professionals and Organization
Effectiveness Experts (Degree MBA,
Organizational Psychology)
138
6.1.1
139
EXCELLENCE.SOLVE IT. NO OPTION.PSF. (PSF)
140
Organizations will still be critically important
in the world, but as organizers, not
employers! Charles Handy
141
Department Head to Managing Partner, IS
HR, RD, etc. Inc.
142
AnswerPSF
143
Are you the Principal Engine of Value
AddedE.g. Your RD budget as robust as the
New Products team?
144
6.1.2
145
The PSF35 Thirty-Five Professional Service
Firm Marks of Excellence
146
The PSF35 The Work The Legacy1.
CRYSTAL CLEAR POINT OF VIEW (E very
Practice Group If you cant explain your
position in eight words or less, you dont
have a positionSeth Godin)2. DRAMATIC
DIFFERENCE (We are the only ones who do what
we doJerry Garcia)3. Stretch Is Routine
(Never bite off less than you can
chewanon.)4. Eye-Appetite for Game-changer
Projects (Excellence at Assembling Best
TeamFast) 5. Playful Clients (Adventurous
folks who unfailingly Aim to Change the
World)6. Small Uneconomic Clients with Big
Aims 7. Life Is Too Short to Work with Jerks
(Fire lousy clients)8. OBSESSED WITH LEGACY
(Practice Group and Individual Dent the
UniverseSteve Jobs)9. Fire-on-the-spot Anyone
Who Says, Law/Architecture/Consulting/
I-banking/ Accounting/PR/Etc. has become a
commodity 10. Consistent with 9 above DO
NOT SHY AWAY FROM THE WORD (IDEA)
RADICAL
147
Pointed Point of View!
148
The PSF35 The Client
Experience11. Always team with client full
partners in achieving memorable results
(Wanted Chimeras of Moonstruck
Minds!)12. We will seek assistance Anywhere to
assemble the Best-in- Planet Team for the
Project13. Client Team Members routinely declare
that working with us was the Peak
Experience of my Career14. The jobs not done
until implementation is 100.00 complete
(Those who dont get it must go)15.
IMPLEMENTATION IS NOT COMPLETE UNTIL THE
CLIENT HAS EXPERIENCED CULTURE CHANGE16.
IMPLEMENTATION IS NOT COMPLETE UNTIL
SIGNIFICANT TECHNOLOGY TRANSFER HAS TAKEN
PLACE-ROOT (Teach a man to fish )17. The
Final Exam DID WE MAKE A DRAMATIC,
LASTING, GAME-CHANGING DIFFERENCE?
149
The business of selling is not just about
matching viable solutions to the customers that
require them. Its equally about managing the
change process the customer will need to go
through to implement the solution and achieve the
value promised by the solution. (E.g. CRM
failure rate/Gartner 70) Jeff Thull, The
Prime Solution Close the Value Gap, Increase
Margins, and Win the Complex Sale
150
UniCredit Group/
UniCredito Italiano 3rd party
measurementCustomer-initiated
measurementPrimary incentivesFactories
Primary Corporate InitiativeEtc13TP/1
151
Ideal finance staffer Full-scale business
partner CFO? to the/each department she
serves.
152
Ideal finance staffer Full-scale business
partner CFO? to the/each department she
serves. Not copobsessed instead with
value-added Integration first, stovepipe
secondary MBWA/bigtime Networker to the rest
of Finance
153
The PSF35 The People The
Leadership18. TALENT FANATICS (Best-Coolest
place to work) (PERIOD)19. EYE FOR THE PECULIAR
(Hiring Go beyond same old, same old)
20. Early Opportunities (vs. Wait your turn)
21. Up or Out (Based on Legacy/Mentoring as
much as Billings/Rainmaking)22. Slide
the Old Aside/Make Room for Youth (Find oldsters
new roles?)23. TALENT IS OBSESSED WITH
RENEWAL FROM DAY 1 TO DAY R R
Retirement24. Office/Practice Leaders Evaluated
Primarily on Mentoring-Team Building
Skills 25. A PROPRIETARY TALENT DEVELOPMENT
PROCESS (GE) 26. Team Leadership Skills Valued
Early27. Partner with B.I.W. Best In World
Outsiders as Needed and to Infuse Different
Views
154
The PSF35 The Firm The
Brand28. EAT-SLEEP-BREATHE-OOZE INTEGRITY (My
life is my messageGandhi) 29. Excellence
in EXECUTION 100.00 of the Time30. Drop
everything/Swarm to Support a Harried-On
The Verge Team31. SPEND ON RD LIKE A TECH
FIRM. 32. A PROPRIETARY METHODOLOGY (FBR,
McKinsey, Chiat Day, IDEO, old EDS) 33.
BRAND MANIACS (Organize Around a Point of View
Worth BROADCASTING) 34. PASSION!
ENTHUSIASM! 35. EXCELLENCE. ALWAYS.
155
Static/ImitativeIntegrity.Quality.Continuous
Improvement.Superior Service (Exceeds
Expectations.)Completely Satisfactory
Transaction.Smooth Evolution.Market
Share.Dynamic/DifferentDramatic
Difference!Disruptive!Insanely Great!
(Quality)Life-(Industry-)changing
Experience!Game-changing!WOW!Surprise!Delight!
Breathtaking!Punctuated Equilibrium!Market
Creation!
156
EXCELLENCE Flawless EXECUTION Continuous
IMPROVEMENT Brilliantly Trained
PEOPLEGamechanging QUESTS WEIRD Rosters
GASPWORTHY Results
157
6.1.3
158
Psf.Bedrock.
159
Purchasing Officer Thrust 1 Cost (at All
Costs) Minimization Professional? Or/to Full
Partner-Leader in Lifetime Value-added
Maximization?(Lopez Arguably Villain 1 in
GM tragedy/Anon VSE-Spain)
160
Fleet ManagerRolling Stock Cost Minimization
Officervs/orChief of Fleet Lifetime Value
Maximization Strategic Supply-chain
Executive Customer Experience Director (via
drivers)
161
HCare CIO Technology Executive (workin in a
hospital) Or/to Full-scale, Accountable (life
or death) Member-Partner of XYZ Hospitals
Senior Healing-Services Team (who happens to be a
techie)
162
PSF Transformation Credit
Department/TrekWas
IsCredit Dept
Financial
ServicesHammer on dealers until
Make dealers successful so theythey pay
CAN payAR
sold to 3rd party Trek is
the commercial financialcommercial co.
Company23 employees
12 employeesOversee
peak AR of 70M Oversee peak AR of
160MIdentify risky dealers
Identify opportunitiesCost Center
Profit CenterNo
products
Products Consulting, MC/Visa,
Stored
value of gift cards, Gift card

peripherals, Online paymentsSource John
Burke/0330.06
163
Big Idea Corporation as Mega-PSF
(Professional Service Firm) Virtual
Collection of Entrepreneurially-minded
Professionals (Talent/Roster)
Creating/Applying Intellectual Capital (Work
Product)
164
Are you the Principal Engine of Value
AddedE.g. Your RD budget as robust as the
New Products team?
165
The FEVP/Fundamental Enterprise Value-Added
Proposition-Equation/Mark2008(1) 100 WOW
PROJECTS (New Org DNA/The Work) (2)
Incredible TALENT Transformed into (3)
Entrepreneurial BRAND YOUs and (4) Given
Room-to-Roam Launched on Awesome QUESTS
(5) Internal Rockin PSFs (Staff Depts. Morphed
into Wildly Innovative Professional Service
Firms) (6) Which Coalesce to Transform the
FEVP/Fundamental Enterprise Value Proposition
from Superior Products Services to
ENCOMPASSING SOLUTIONS GAME-CHANGING CLIENT
SUCCESS
166
6.2
167
EXCELLENCE.VALUE-ADDED LADDER. EXPERIENCE
IT.
168
Experiences are as distinct from services as
services are from goods. Joe Pine Jim
Gilmore, The Experience Economy Work Is Theatre
Every Business a Stage
169
The Starbucks Fix Is on We have
identified a third place. And I really
believe that sets us apart. The third place is
that place thats not work or home. Its the
place our customers come for refuge. Nancy
Orsolini, District Manager
170
Experience Rebel Lifestyle!What we sell is
the ability for a 43-year-old accountant to dress
in black leather, ride through small towns and
have people be afraid of him.Harley exec,
quoted in Results-Based Leadership
171
The Value-added Ladder/ MEMORABLE
CONNECTIONSpellbinding ExperiencesCustomer
Success/Implemented Gamechanging
SolutionsServicesGoods Raw MaterialsTheatric
al Skills (Degree Theater Arts)
172
Beyond the Transaction/ Satisfaction
MentalityGood hotel/ Happy guest/ Exceeded
Expectationsvs. Great Vacation/ Great
Conference/ Operation Personal Renewal
173
ltTGWvs. gtTGRThings Gone WRONG/Things Gone
RIGHT
174
2-cent candy
175
3-cent lemon!
176
CXOChief eXperience Officer
177
(No Transcript)
178
7
179
We are the company we keep
180
The Hang Out Axiom At its core, every (!!!)
relationship-partnership decision (employee,
vendor, customer, etc) is a strategic decision
about Innovate, Yes or No
181
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
182
Diverse groups of problem solversgroups of
people with diverse toolsconsistently
outperformed groups of the best and the
brightest. If I formed two groups, one random
(and therefore diverse) and one consisting of the
best individual performers, the first group
almost always did better. Diversity trumped
ability. Scott Page, The Difference How the
Power of Diversity Creates Better Groups, Firms,
Schools, and Societies Diversity
183
8
184
TP How to flush 500,000 down the toilet in
one easy lesson!!
185
lt CAPEXgt People!
186
Brand Talent.
187
8.1
188
Hire very good people!
189
We believe companies can increase their market
cap 50 percent in 3 years. Steve Macadam at
Georgia-Pacific changed 20 of his 40 box plant
managers to put more talented, higher paid
managers in charge. He increased profitability
from 25 million to 80 million in 2 years.
Ed Michaels, War for Talent
190
8.2
191
PUT HR AT THE HEAD OF THE HEAD TABLE. BEST
PEOPLE. NOBLEST MISSION.
192
8.3
193
2/year legacy.
194
8.4
195
1 cause ofDis-satisfaction?
196
Employee retention satisfaction
Overwhelmingly, based on their immediate
manager!Source Marcus Buckingham Curt
Coffman, First, Break All the Rules What the
Worlds Greatest Managers Do Differently
197
8.5
198
Leaders do people. Period. Anon.
199
The leaders of Great Groups love talent and
know where to find it. They revel in the talent
of others. Warren Bennis Patricia Ward
Biederman, Organizing Genius
200
PARCs Bob Taylor Connoisseur of Talent
(from Warren Bennis Patricia Ward Biederman,
Organizing Genius)
201
8.6
202
Leaders SERVE people. Period. inspired by
Robert Greenleaf
203
no less than Cathedrals in which the full and
awesome power of the Imagination and Spirit and
native Entrepreneurial flair of diverse
individuals is unleashed in passionate pursuit of
Excellence.
204
9
205
EXCELLENCE. BEDROCK.LEADERSHIP. THE 9Ps.
206
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
207
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
208
People want to be part of something larger than
themselves. They want to be part of something
theyre really proud of, that theyll fight for,
sacrifice for , trust. Howard Schultz,
Starbucks (IBD/09.05)
209
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
210
I am a Dispenser of Enthusiasm!Ben Zander
211
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
212
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
213
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
214
MBWA
215
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
216
You must be the change you wish to see in the
world.Gandhi
217
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
218
Relentless One of my superstitions had always
been when I started to go anywhere or to do
anything, not to turn back , or stop, until the
thing intended was accomplished. Grant
219
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
220
Leaders do people. Period. Anon.
221
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
222
Do one thing every day that scares you.
Eleanor Roosevelt
223
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
224
On NELSON other admirals more frightened of
losing than anxious to win
225
PURPOSE.PASSION.Potential.Presence.Personal.P
ERSISTENCE.PEOPLE. Potent.Positive.
226
10
227
Excellence can be obtained if you ... care
more than others think is wise ... risk
more than others think is safe ... dream
more than others think is practical ...
expect more than others think is
possible. Source Anon. (Posted _at_ tompeters.com
by K.Sriram, November 27, 2006 117 AM)
228
Excellence Is a Universal Striving. If Not
Excellence, What? If not excellence now, when?
229
Appendix one
230
The Have you 50
231
Mapping your competitive position or
232
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.
233
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)
234
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.)
235
1. Have you in the last 10 days visited a
customer?2. Have you called a customer TODAY?
236
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
f(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!!!
237
I posted this at tompeters.com on New Years Eve
2007.
238
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?
239
UniCredit Group/
UniCredito Italiano 3rd party
measurementCustomer-initiated
measurementPrimary incentivesFactories
Primary Corporate InitiativeEtc13TP/1
240
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.
241
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?
242
You Your calendarCalendars never lie
243
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?
244
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?
245
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?
246
Appendix TWO
247
Attending to the Last 98 The New Management
Science, or Hard Is Soft, Soft Is
Hard
248
Alternate title
249
Attending to the Last 98 flower power! Tom
Peters/17 April 2008
250
FLOWERPOWER
FLOWERPOWER
251
Hold in your mind the idea of flower
powermore to come!
252
S ƒ ( ___ ) Success Is a Function of
253
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
254
SF50 50 Equations on achieving success at
pretty much anything
255
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
256
Loser Hes such a suck-up!Winner
Hes such a suck-down.
257
Never waste a lunch! More or less
258
S ƒ(PKWP)S ƒ(PKLP) of people you
know in the wrong places people you know in
low places
259
It helps to know people in high places!
260
It helps more to know people in low places!
261
Gust Avarkotos 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
262
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.
263
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.
264
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.

265
S ƒ(TSHRO) Time spent ... Hurdle Removing for
Others
266
Peter Drucker once famously
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