The Challenge: To Create More Value in All Negotiations

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Tom Peters Excellence. Always. Breukelen
/21 April 2009
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NOTE To appreciate this presentation and
ensure that it is not a mess, you need Microsoft
fonts Showcard Gothic, Ravie, Chiller
and Verdana
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Tom Peters Excellence. now. More than
ever. Breukelen/21 April 2009
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Conrad Hilton, at a gala celebrating his career,
was asked, What was the most important lesson
youve learned in you long and distinguished
career? His immediate answer
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remember to tuck the shower curtain inside the
bathtub
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Execution is strategy. Fred Malek
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MBWA
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Part ONE
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1
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Little BIG
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2
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7X. 730A-800P. F12A.730AM 715AM.800PM
815PM.
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No 2Yes Bank
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2,000,000
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The Commerce Bank Model every computer at
commerce bank has a special red key on it
that says, found something stupid that we are
doing that interferes with our ability to service
the customer? Tell us about it, and if we agree,
we will give you 50.Source Fans! Not
customers. How Commerce Bank Created a
Super-growth Business in a No-growth Industry,
Vernon Hill Bob Andelman
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3
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Dont like it? Dont pay. Source Granite Rock
Co.
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4
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It BEGINS (and ENDS) in the
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parking lotDisney
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5
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2X Source Container Store/increase average
sale per shopper
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6
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(1) LAN Installation Co. (3) (2) Geek Squad
(30) (3) Best Buy contracts (4) Best Buy
purchases (5) Best Buys brand promise
Source Best Buy (Circuit City fire senior,
hire junior)
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7
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Bag sizes New markets B Source
PepsiCo
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8
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Big carts 1.5X Source WalMart
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9
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none!
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Press Ganey Assoc 139,380 former patients from
225 hospitalsnone of THE top 15 factors
determining Patient Satisfaction referred to
patients health outcomeP.S. directly related
to Staff InteractionP.P.S. directly correlated
with Employee Satisfaction Source Putting
Patients First, Susan Frampton, Laura Gilpin,
Patrick Charmel
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Kindness is free.
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There is a misconception that supportive
interactions require more staff or more time and
are therefore more costly. Although labor costs
are a substantial part of any hospital budget,
the interactions themselves add nothing to the
budget. Kindness is free. Listening to patients
or answering their questions costs nothing. It
can be argued that negative interactionsalienatin
g patients, being non-responsive to their needs
or limiting their sense of controlcan be very
costly. Angry, frustrated or frightened
patients may be combative, withdrawn and less
cooperativerequiring far more time than it
would have taken to interact with them initially
in a positive way. Putting Patients First,
Susan Frampton, Laura Gilpin, Patrick Charmel
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Courtesies of a small and trivial character are
the ones which strike deepest in the grateful and
appreciating heart. Henry Clay
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Perception is all there is
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Comeback big, quick response gtgt Perfection
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ltTGWand gtTGRThings Gone WRONG-Things
Gone RIGHT
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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
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100 purchase/ 3-cent lemon National Brand/
2-cent candy
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10
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Acquire vs maintain 5X Recession goal Higher
market share current
customers
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(1) Amenable to rapid
experimentation/failure free (No bad
PR, No ) (2) Quick to implement/Quick to
Roll out (3) Inexpensive to implement/
Roll out (4) Huge multiplier (5) An
Attitude (6) Does not by and large require a
power position from which to
launch experiments.
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• Half-day/25 ideas
• One week/5 experiments
• (3) One month/Select best 2
• (4) 60-90 days/Roll out

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Little BIG
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Design is everything. Everything is
design. We are all designers. Inspiration
The Power of Design A Force for Transforming
Everything, Richard Farson
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Power Freaks Move Things Around!
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gt100 feet 100 miles
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Geologists Geophysicists A little bit of
love Oil
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see green recover 20 faster
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Round 2X/allx
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6.5 feet Away
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6.5 feet Away -63 SecondsPlate
size, etc, first serving dish
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Paint it white! On Hashem Akbaris
Lawrence Livermore labs powerful program to
significantly reduce greenhouse gas emissions
using conservative assumptions, it could
reduce 44 billion tons of CO2 emissions by
cooling buildings, roads, entire cities (The
Guardian, 0116.09)
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Socks 10,000
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Broken windows Clean the streets, fix the
broken windows, ticket the open-beer-can holders,
etc, etc Sense of order Crime way down
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80
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Everything matters -80 Source Nudge,
Richard Thaler and Cass Sunstein, etching of fly
in the urinal reduces spillage by 80,
Schiphol Airport
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Part TWO
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13
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The most significant variable in every sales
situation is the gender of the buyer, and more
importantly, how the salesperson communicates to
the buyers gender. Jeffery Tobias Halter,
Selling to Men, Selling to Women
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The Perfect Answer
Jill and Jack buy slacks in black
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(No Transcript)
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Forget China, India and the Internet Economic
Growth Is Driven by Women. Source Headline,
Economist
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Since 1970, women have held two out of every
three new jobs created. FT, 10.03.2006
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Women are the majority market Fara
Warner/The Power of the Purse
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Goldman Sachs in Tokyo has developed an index of
115 companies poised to benefit from womens
increased purchasing power over the past decade
the value of shares in Goldmans basket has risen
by 96, against the Tokyo stockmarkets rise of
13. Economist, April 15
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Cases! Cases! Cases!McDonalds
(mom-centered to majority consumer not via
kids)Home Depot (Do it everything!
Herself)PG (more than house cleaner)
DeBeers (right-hand rings/4B)AXA
FinancialKodak (women emotional centers of
the household)Nike (gt jock endorsements new
def sports majority consumer)AvonBratz (young
girls want friends, not a blond
stereotype)Source Fara Warner/The Power of the
Purse
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We simply had stopped being relevant to women.
Kay Napier, SVP Marketing (Fara Warner, The
Power of the Purse, From Minority to Majority
McDonalds Discovers the Woman Inside the Mom)
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Women dont buy brands. They join
them.EVEolution
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2.6 vs. 21
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People powered Age 3 days, baby girls 2X eye
contact. Source Martha Barletta, Marketing to
Women
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Women speak and hear a language of connection
and intimacy, and men speak and hear a language
of status and independence. Men communicate to
obtain information, establish their status, and
show independence. Women communicate to create
relationships, encourage interaction, and
exchange feelings. Judy Rosener, Americas
Competitive Secret
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13A
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AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measure TITLE/ Special
Report/ BusinessWeek
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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?
78
One thing is certain Womens rise to power,
which is linked to the increase in wealth per
capita, is happening in all domains and at all
levels of society. Women are no longer content to
provide efficient labor or to be consumers with
rising budgets and more autonomy to spend.
This is just the beginning. The phenomenon will
only grow as girls prove to be more successful
than boys in the school system. For a number of
observers, we have already entered the age of
womenomics, the economy as thought out and
practiced by a woman. Aude Zieseniss de Thuin,
Financial Times, 10.03.2006
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Womenomics, the economy as thought out and
practiced by a woman. Aude Zieseniss de Thuin,
Financial Times, 10.03.2006
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94 of loans to womenMicrolending
Banker to the poor Grameen Bank Muhammad
Yunus 2006 Nobel Peace Prize winner
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!!!!!!!!!!!!!!!!! People turning 50 today have
more than half of their adult life ahead of
them. Bill Novelli, 50 Igniting a Revolution
to Reinvent America
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7/13
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2000-2010 Stats18-44 -155 21(55-64
47)
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44-65 New Customer Majority 45 larger
than 18-43 60 larger by 2010Source Ageless
Marketing, David Wolfe Robert Snyder
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Baby-boomer Women The Sweetest of Sweet Spots
for Marketers David Wolfe and Robert Snyder,
Ageless Marketing
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Fifty-four years of age has been the highest
cutoff point for any marketing initiative Ive
ever been involved in. Which is pretty weird when
you consider age 50 is right about when people
who have worked all their lives start to have
some money to spend. Marti Barletta, PrimeTime
Women
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One particularly puzzling category of
youth-obsession is the highly coveted target of
men 18-34, and its always referred to as highly
coveted category. Marketers have been distracted
by men age 18-34 because they are getting harder
to reach. So what? Who wants to reach them?
Beyond fast food and beer, they dont buy much of
anything. The theory is that if you get them
while theyre young, theyre yours for life.
What nonsense! Marti Barletta, PrimeTime Women
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Marketers attempts at reaching those over 50
have been miserably unsuccessful. No markets
motivations and needs are so poorly understood.
Peter Francese, founding publisher, American
Demographics
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We are the Aussies Kiwis Americans
Canadians. We are the Western Europeans
Japanese. We are the fastest growing, the
biggest, the wealthiest, the boldest, the most
(yes) ambitious, the most experimental
exploratory, the most different, the most
indulgent, the most difficult demanding, the
most service experience obsessed, the most
vigorous, (the least vigorous,) the most health
conscious, the most female, the most
profoundly important commercial market in the
history of the worldand we will be the Center of
your universe for the next twenty-five years.
We have arrived!
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Up, Up, Up, Up the Value-added Ladder.
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EXCELLENCE.VALUE-ADDED LADDER. NO LESS THAN
BUSINESS ADVANTAGE.
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M 0
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IBM 55BAlso HP-EDS
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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
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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
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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
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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)
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Huge Customer Satisfaction versus Customer
Success
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The Value-added Ladder/TRANSFORMATION Customer
Success/ Gamechanging SolutionsServicesGoods
Raw Materials
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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
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The Value-added Ladder/TRANSFORMATION Customer
Success through Implemented Gamechanging
SolutionsServicesGoods Raw Materials
Subject-matter Professionals and Organization
Effectiveness Experts (Degree MBA,
Organizational Psychology)
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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
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Model PSFProfessional Services Firm
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EXCELLENCE.VALUE-ADDED LADDER. SPELLBINDING
EXPERIENCE.SOUL THROUGH DESIGN.
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All Equal Except At Sony we assume that all
products of our competitors have basically the
same technology, price, performance and features.
Design is the only thing that differentiates one
product from another in the marketplace. Norio
Ohga
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Design is treated like a religion at BMW.
Fortune
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We dont have a good language to talk about
this kind of thing. In most peoples
vocabularies, design means veneer. But to me,
nothing could be further from the meaning of
design. Design is the fundamental soul of a
man-made creation. Steve Jobs
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With its carefully conceived mix of colors and
textures, aromas and music, Starbucks is more
indicative of our era than the iMac. It is to the
Age of Aesthetics what McDonalds was to the Age
of Convenience or Ford was to the Age of Mass
Productionthe touchstone success story, the
exemplar of the aesthetic imperative. Every
Starbucks store is carefully designed to enhance
the quality of everything the customers see,
touch, hear, smell or taste, writes CEO Howard
Schultz. -Virginia Postrel, The Substance of
Style How the Rise of AestheticValue Is
Remaking Commerce, Culture and Consciousness
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Business people dont need to understand
designers better. Businesspeople need to be
designers. Roger Martin/Dean/Rotman Management
School/University of Toronto
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Hypothesis DESIGN is the principal difference
between love and hate!
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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
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Lisbon/New BizWeeks to
Minutes (!!!!)
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• Beauty
• Grace
• Clarity
• Simplicity

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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)
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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)
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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)
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Business people dont need to understand
designers better. Businesspeople need to be
designers. Roger Martin/Dean/Rotman Management
School/University of Toronto
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The Value-added Ladder/ MEMORABLE
CONNECTIONSpellbinding Experiences viaSoul
Through Design Customer Success/Implemented
Gamechanging SolutionsServicesGoods Raw
MaterialsBlending Beauty, Usability,
Theatricality (Degree MFA/Master of Fine Arts,
D-school, Cultural Anthropology)
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Message (?????) Men cannot design for womens
needs.
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Part THREE
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try it. Try it. Try it. Try it. Try it. Try it.
Try it. Try it. Screw it up. Try it. Try it. Try
it. Try it. Try it. Try it. Try it. Screw it up.
it. Try it. Try it. try it. Try it. Screw it up.
Try it. Try it. Try it.
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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
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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
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We have a strategic plan. Its called doing
things. Herb Kelleher
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Experiment fearlesslySource BW0821.06, Type
A Organization Strategies/ How to Hit a Moving
TargetTactic 1
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You cant be a serious innovator unless and
until you are ready, willing and able to
seriously play. Serious play is not an
oxymoron it is the essence of innovation.
Michael Schrage, Serious Play
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Culture of PrototypingEffective prototyping
may be the most valuable core competence an
innovative organization can hope to have.
Michael Schrage

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Think about It!?Innovation Reaction to the
PrototypeSource Michael Schrage
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SkunkWorks/ ParallelUniversethe 1
solutionSource Scott Bedbury (Others 3M,
Google, Shell, NAVFAC)
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Fail . Forward. Fast.High Tech CEO,
Pennsylvania
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FAIL, FAIL AGAIN. FAIL BETTER. Samuel Beckett
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Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
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In business, you reward people for taking risks.
When it doesnt work out you promote them-because
they were willing to try new things. If people
tell me they skied all day and never fell down, I
tell them to try a different mountain.
Michael Bloomberg
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The secret of fast progress is inefficiency,
fast and furious and numerous failures.Kevin
Kelly
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Excellence1982 The Bedrock Eight Basics 1. A
Bias for Action 2. Close to the Customer 3.
Autonomy and Entrepreneurship 4. Productivity
Through People 5. Hands On, Value-Driven 6. Stick
to the Knitting 7. Simple Form, Lean Staff 8.
Simultaneous Loose-Tight Properties
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You miss 100 of the shots you never take.
Wayne Gretzky
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The Venturesome Economy How Innovation Sustains
Prosperity in a More Connected World By Amar
Bhide
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Sustainable Innovation Systemic. Very complex.
The NECESSARY COMBINATION (very dense network) of
EVERYTHING from the development of the Basic
Science to numerous INTERMEDIATE Stages to Sales
Recruiting and Training and Ads. Essential
Clever and numerous AGGRESSIVE CONSUMERS
(venturesome consumption). Path to success or
failure UNPREDICTABLE. FYI The World is NOT
FLAT. From Transistor at Bell Labs to on-line
gamers. Source Amar Bhide, The Venturesome
Economy How Innovation Sustains Prosperity in a
More Connected World
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Sustainable Innovation Systemic. Very complex.
The COMBINATION (very dense network) of
EVERYTHING from the Basic Science to Sales
Recruiting and Training and Ads. Essential
Clever and numerous PIONEER CONSUMERS
(venturesome consumption). Path to success or
failure UNPREDICTABLE. Of modest value
origin mostly irrelevant unless the ENTIRE
INNOVATION CHAIN is in place and aggressively
interacting-competing. Source Amar Bhide, The
Venturesome Economy How Innovation Sustains
Prosperity in a More Connected World
145

• Sustainable Innovation /Breakthrough Ideas
• High of Stages/Stages-
• within Stages
• Importance of
• Intermediate Stages
• (3) Engaged Mega-scrum
• of Users/Consumers
• as Participative/Decisive
• Pull Mechanism (eg UPS
• vs. FedEx)
• Source Amar Bhide, The Venturesome Economy How
  Innovation
• Sustains
  Prosperity in a More Connected World

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1913 32 1960 26 1980 22 2000
27 2007 26 Source The Future of American
Power, Fareed Zakaria, Foreign
Affairs, vol 87, no. 3 U.S. share of world
output
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4/40
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De-cent-ral-iz-a-tion!
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Enemy 1I.C.D.Note 1 Inherent/Inevitable/Imm
utable Centralist DriftNote 2 Jim Burkes
1-word vocabulary No.
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Decentralization is not a piece of paper. Its
not me. Its either in your heart, or not.
Brian Joffe/BIDvest
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If it feels painful and scarythats real
delegation Caspian Woods, small biz owner
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Best practice ZERO Standard Deviation
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Cisco, CEO John Chambers argues, is the best
possible model for how a global business can
operate as a distributed idea engine where
leadership emerges organically, unfettered by a
central command. Revolution in San Jose, Fast
Company, Dec-Jan 08-09 (Chambers We now have a
whole pool of talent who can lead these working
groupslike mini CEOs and COOs.) (Top blog
engineering director 5 levels down)
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Ex-e-cu-tion!
156
Execution is strategy. Fred Malek
157
Execution is the job of the business leader.
Larry Bossidy Ram Charan/ Execution The
Discipline of Getting Things Done
158
Costco figured out the big, simple things and
executed with total fanaticism. Charles
Munger, Berkshire Hathaway
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Excellence in Execution Deepest Blue Ocean
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Ac-count-a-bil-ity!
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CF 30 (no salesfolk)MH 80 (salesfolk)
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615A.M.
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DECENTRALIZATION.EXECUTION.ACCOUTABILITY.61
5A.M.
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Part FOUR
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I am constantly asked for strategies/
'secrets' for surviving the recession. I try to
appear wise and informedand parade original,
sophisticated thoughts. But if you want to know
whats really going through my head, see the list
that follows.
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Forty-four Secrets and clever Strategies For
dealing with the Recession of 2008-XXXX
168
44 Secrets and Clever Strategies For Dealing
with the Recession of 2008-XXXX You come
earlier. You leave later. You work harder. You
may well work for less and, if so, you adapt
to the untoward circumstances with a
smileeven if it kills you inside. You volunteer
to do more. You dig deep and always bring a good
attitude to work. You fake it if your good
attitude flags. You literally practice your "game
face" in the mirror in the morning, and in the
loo mid-morning. You give new meaning to the
idea and intensive practice of visible
management.
169
44 Secrets and Clever Strategies For Dealing
with the Recession of 2008-XXXX You take better
than usual care of yourself and encourage
others to do the samephysical well-being
determines mental well-being and response to
stress. You shrug off shit that flows downhill in
your directionbuy a shovel or a pre-worn
raincoat on eBay. You try to forget about the
good old days nostalgia is self-destructive. Y
ou buck yourself up with the thought that
this too shall passbut then remind yourself
that it might not pass any time soon, and so
you re-dedicate yourself to making the
absolute best of what you have now.
170
44 Secrets and Clever Strategies For Dealing
with the Recession of 2008-XXXX You work the
phones and then work the phones some moreand
stay in touch with positively everyone. You
frequently invent breaks from routine,
including weird oneschangeups prevent
wallowing and bring a fresh perspective. You
eschew all forms of personal excess. You
simplify. You sweat the details as never
before. You sweat the details as never
before. You sweat the details as never
before. You raise to the sky and maintain at all
costs the Standards of Excellence by which you
unfailingly evaluate your own performance. You
are maniacal when it comes to responding to
even the slightest screwup.
171
44 Secrets and Clever Strategies For Dealing
with the Recession of 2008-XXXX You find ways to
be around young people and to keep young
people aroundthey are less likely to be
members of the sky is falling school. You
learn new tricks of your trade. You remind
yourself that this is not just something to be
gotten throughit is the Final Exam of
character. You network like a demon. You network
inside the companyget to know more of the
folks who do the real work. You network outside
the companyget to know more of the folks who
do the real work in vendor-customer outfits.
172
44 Secrets and Clever Strategies For Dealing
with the Recession of 2008-XXXX You thank others
by the truckload if good things happenand take
the heat yourself if bad things happen. You
behave kindly, but you don't sugarcoat or hide
the truth--humans are startlingly resilient
and rumors are the real killers. You treat small
successes as if they were Superbowl
victoriesand celebrate and commend
accordingly. You shrug off the losses (ignoring
what's going on in your tummy), and get back on
the horse and immediately try again. You avoid
negative people to the extent you canpollution
kills. You eventually read the gloom-sprayers
the riot act. 
173
44 Secrets and Clever Strategies For Dealing
with the Recession of 2008-XXXX You give new
meaning to the word "thoughtful. You dont put
limits on the flowers budget bright and
colorful works marvels. You redouble, re-triple
your efforts to "walk in your customer's
shoes." (Especially if the shoes smell.) You
mind your mannersand accept others lack of
manners in the face of their strains. You are
kind to all mankind. You keep your shoes
shined. You leave the blame game at the office
door. You call out the congenital politicians in
no uncertain terms. You become a paragon of
personal accountability. And then you pray.
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20
175
Skip the map!
176
Mapping your competitive position or
177
The Have you 50
178
1. Have you in the last 10 days
visited a customer?2. Have you called a
customer TODAY?
179
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.)
180
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?
181
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?
182
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?
183
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?
184
Part FIVE
185
21
186
BIG?
187
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
188
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
189
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
190
22
191
4 Japan2T USA2T China
192
4 Japan3 USA2 China1 Germany
193
Reason!!!Mittelstand
194
23
195
Jim Penman/Jims Group
196
Jims Mowing Canada Jims Mowing UK Jims
Antennas Jims Bookkeeping Jims Building
Maintenance Jims Carpet Cleaning Jims Car
Cleaning Jims Computer Services Jims Dog
Wash Jims Driving School Jims Fencing Jims
Floors Jims Painting Jims Paving Jims Pergolas
gazebos Jims Pool Care Jims Pressure
Cleaning Jims Roofing Jims Security Doors Jims
Trees Jims Window Cleaning Jims
Windscreens Note Download, free, Jim Penmans
book What Will They Franchise Next? The Story
of Jims Group
197
Lived in same town all adult lifeFirst
generation thats wealthy/ no parental
supportDont look like millionaires, dont
dress like millionaires, dont eat like
millionaires, dont act like millionairesMany
of the types of businesses they are in could
be classified as dull- normal. They are
welding contractors, auctioneers, scrap-metal
dealers, lessors of portable toilets, dry
cleaners, re-builders of diesel engines, paving
contractors Source The Millionaire Next
Door, Thomas Stanley William Danko
198
Part SIX
199
24
200
1982
201
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
202
Breakthrough 82 People! Customers! Action!
Values! In Search of Excellence
203
Hard Is SoftSoft Is Hard
204
Hard Is Soft (Plans, s)Soft Is Hard (people,
customers, values, relationships))
205
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
206
it is the game.
207
30-fold!
208
Ken Kizer/VA 1997 culture of cover-up that
pervades healthcare Patient Safety Event
Registry looking for systemic solutions, not
seeking to fix blame on individuals except in the
most egregious cases. The good news was a
thirty-fold increase in the number of medical
mistakes and adverse events that got reported.
National Center for Patient Safety Ann Arbor
209
25
210
2007Siberia
211
Why in the World did you go to Siberia?
212
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
213
26
214
2007Sydney
215
Organizations exist to serve. Period. Leaders
live to serve. Period.
216
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.
217
27
218
We are a Life Success Company.Dave Liniger,
founder, RE/MAX
219
Managing winds up being the management of the
allocation of resources against tasks. Leadership
focuses on people. My definition of a leader is
someone who helps people succeed. Carol Bartz,
Yahoo!
220
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.
221
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
222
No matter what the situation, the great
managers first response is always to think
about the individual concerned and how things can
be arranged to help that individual experience
success. Marcus Buckingham, The One Thing You
Need to Know
223
You have to treat your employees like
customers. Herb Kelleher, complete answer, upon
being asked his secrets to success Source
Joe Nocera, NYT, Parting Words of an Airline
Pioneer, on the occasion of Herb Kellehers
retirement after 37 years at Southwest Airlines
(SWAs pilots union took out a full-page ad in
USA Today thanking HK for all he had done across
the way in Dallas American Airlines pilots were
picketing the Annual Meeting)
224
The Customer Comes Second Hal Rosenbluth and
Diane McFerrin Peters (no relation)
225
Business has to give people enriching, rewarding
lives, or it's simply not worth doing. Richard
Branson
226
28
227
Leaders SERVE people. Period. inspired by
Robert Greenleaf
228
Good News 2009 Leadership is a sacred
trust.President, classroom teacher, CEO, shop
foreman
229
29
230
The four most important words in any
organization are
231
The four most important words in any
organization are What do you think?
Source courtesy Dave Wheeler, posted at
tompeters.com
232
Tomorrow How many times will you ask the
question? Count Practice makes better This
is a STRATEGIC skill.
233
The doctor interrupts after Source Jerome
Groupman, How Doctors Think
234
18
235
Listening is of the utmost strategic
importance!Listening is trainable !(
Strategic listening will be a core course in
TPs MBA/GTD curriculum!)
236
30
237
The deepest human need is the need to be
appreciated.William James
238
Thank you 10 years
239

• It was much later that I realized Dads secret.
  He gained respect by giving it. He talked and
  listened to the fourth-grade kids in Spring
  Valley who shined shoes the same way he talked
  and listened to a bishop or a college president.
  He was seriously interested in who you were and
  what you had to say.
• Sara Lawrence-Lightfoot, Respect

240
31
241
1 Resource for Troubled Times Committed. Engag
ed. Growing. Respected. Trusted. Informed. People.

242
32
243
TP How to flush 500,000 down the toilet in
one easy lesson!!
244
lt CAPEXgt People!
245
1/Wegmans
246
Brand Talent.
247
Our MissionTo develop and manage talentto
apply that talent,throughout the world, for the
benefit of clientsto do so in partnership to
do so with profit.WPP
248
Ben Changes His BHAG! Big Hairy Audacious
Goal/Jim Collins
249
33
250
Profitable
251
We are thoughtful in all we do.
252
Thoughtfulness is key to customer
retention. Thoughtfulness is key to employee
recruitment and satisfaction. Thoughtfulness
is key to brand perception. Thoughtfulness is key
to your ability to look in the mirror and tell
your kids about your job. Thoughtfulness is
free. Thoughtfulness is key to speeding things
up it reduces friction. Thoughtfulness is key
to transparency and even cost containmentit
abets rather than stifles truth-telling.
253
There is a misconception that supportive
interactions require more staff or more time and
are therefore more costly. Although labor costs
are a substantial part of any hospital budget,
the interactions themselves add nothing to the
budget. Kindness is free. Listening to patients
or answering their questions costs nothing. It
can be argued that negative interactionsalienatin
g patients, being non-responsive to their needs
or limiting their sense of controlcan be very
costly. Angry, frustrated or frightened
patients may be combative, withdrawn and less
cooperativerequiring far more time than it
would have taken to interact with them initially
in a positive way. Putting Patients First,
Susan Frampton, Laura Gilpin, Patrick Charmel
254
34
255
1
256
1.Strategic.Priority.Period.
257
Development can help great people be even
better but if I had a dollar to spend, Id spend
70 cents getting the right person in the door.
Paul Russell, Director, Leadership
Development, Google
258
In short, hiring is the most important aspect
of business and yet remains woefully
misunderstood. Source Wall Street Journal,
10.29.08, review of Who The A Method for
Hiring, Geoff Smart and Randy Street
259
35
260
1 cause ofDis-satisfaction?
261
Employee retention satisfaction
Overwhelmingly, based on the first-line
manager!Source Marcus Buckingham Curt
Coffman, First, Break All the Rules What the
Worlds Greatest Managers Do Differently
262
36
263
2/year legacy.
264
37
265
Leaders do people. Period. Anon.
266
38
267
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
268
39
269
Rob McEwen/CEO/Goldcorp Inc./Red Lake
goldSource Wikinomics How Mass Collaboration
Changes Everything, Don Tapscott Anthony
Williams
270
The Billion-man Research Team Companies
offering work to online communities are reaping
the benefits of crowdsourcing. Headline,
FT, 0110.07
271
40
272
In Blackburn, four-year-olds are making
podcasts. In Suffolk, the sometimes tedious and
impractical ritual of morning Assembly has been
replaced in one school by a news video compiled
by pupils posting it on YouTube means parents
can watch as welland they do. Learners at all
stages and ages, from all over the world, are
downloading free tutorials while they replenish
their iPods, courtesy of iTunes U. Source
The Guardian, 0113.09, Resource 2009, a preview
of BETT 2009
273
41
274
Normal o for 800
275
All You Need to Know About Sources of
Innovation Angry people! angry with the
status quo
276
42
277
The Bottleneck Is at the Top of the
BottleWhere are you likely to find people
with the least diversity of experience, the
largest investment in the past, and the greatest
reverence for industry dogma At the top!
Gary Hamel/Harvard Business Review
278
43
279
We are the company we keep
280
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
281
You will become like the five people you
associate with the mostthis can be either a
blessing or a curse. Billy Cox
282
The We are what we eat axiom At its core,
every (!!!) relationship-partnership decision
(employee, vendor, customer, etc) is a strategic
decision about Innovate, Yes or No
283
The We are what we eat Axiom II Hang out
with cool and thou shalT become more cool. Hang
out with dull and thou shalT become more dull.
Period.
284
CEO A.G. Lafley has shifted PGs focus on
inventing all its own products to developing
others inventions at least half the time. One
successful example, Mr. Clean Magic Eraser,
based on a product found in an Osaka market.
Fortune
285
Axiom Never use a vendor who is not in the top
quartile (decile?) in their industry on RD
spending!Inspired by Hummingbird
286
How do dominant companies lose their position?
Two-thirds of the time, they pick the wrong
competitor to worry about. Don Listwin, CEO,
Openwave Systems/WSJ
287
Kodak . FujiGM . FordFord . GMIBM .
Siemens, FujitsuSears . KmartXerox . Kodak,
IBM
288
Benchmarking, Perils of The best swordsman in
the world doesnt need to fear the second best
swordsman in the world no, the person for him to
be afraid of is some ignorant antagonist who has
never had a sword in his hand before he doesnt
do the thing he ought to do, and so the expert
isnt prepared for him he does the thing he
ought not to do and often it catches the expert
out and ends him on the spot. Mark Twain
289
Dont benchmark, futuremark! Impetus The
future is already here its just not evenly
distributed William Gibson
290
Freak Fridays once a month invite somebody
interesting, in any field, to have lunch with
your gang
291
We are crazy. We should do something when
people say it is crazy. If people say something
is good, it means someone else is already doing
it.Hajime Mitarai, Canon
292
Whos the most interesting person youve met in
the last 90 days? How do I get in touch with
them? Fred Smith
293
Vanity Fair What is your most marked
characteristic? Mike Bloomberg Curiosity.
294
You will become like the five people you
associate with the mostthis can be either a
blessing or a curse. Billy Cox
295
44
296
Innovation Index How many of your Top 5
Strategic Initiatives/Key Projects score 8 or
higher out of 10 on a Weird/ Profound/
Wow/Game- changer Scale?
297
Iron Innovation Equality Law The quality and
quantity and imaginativeness of innovation shall
be the same in all functions e.g., in HR and
purchasing as much as in marketing or product
development.
298
-C RD
299
45
300
XFX
301
X XFXExcellence Cross-functional
Excellence
302
Never waste a lunch!
303
???? XF lunches Measure!
304
(Way) Underutilized LeverSpace!Space!Space!Sp
ace!
305
The XF-50 50 Ways to Enhance Cross-Functional
Effectiveness and Deliver Speed, Service
Excellence and Value-added Customer
SolutionsEntire XF-50 List is an
Appendix to the LONG version of this
presentation, posted at tompeters.com
306
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.
307
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