Excellence.

NO EXCUSES!

57 Ways to Launch Your Journey.

NOW.

Tom Peters
06 March 2014

1
This plea for Excellence is a product of Twitter,
where I hang out. A lot. Usually, my practice is a comment here
and a comment theredriven by ire or whimsy or something
Ive read or observed. But a while backand for a whileI
adopted the habit of going off on a subject for a semi-extended
period of time. Many rejoinders and amendments and (oft
brilliant) extensions were added by colleagues from all over the
globe.

So far, some 57 tweetstreams (or their equivalent from

some related environments) have passed (my) musterand are
included herein.

There is a lot of bold type and a lot of RED ink and a lot of
!
(red) exclamation marks ( ) in what follows. First, because I
believe this is important stuff. And second, because I am certain
there are no excuses for not cherrypicking one or two items for
your T.T.D.N. list. (Things To Do NOW.)

Excellence.
No Excuses.
Now.

2
 Epigraph: The ACCELERATING Rate of Change

The greatest
shortcoming of the
human race is our
inability to
understand the
exponential
function. Albert A. Bartlett*

*from Erik Brynjolfsson and Andrew McAfee, The Second Machine Age,
Moores Law and the Second Half of the Chessboard/Change is not the
issuechange has always been with us. But this time may truly be different. The
ACCELERATION of change is unprecedentedhence, the time for requisite action
is severely compressed.)

3
 Excellence 57. NO EXCUSES.
1. Change. Focus/obsess on allies. And allies and allies. And MORE allies. Dont allow
yourself to be distracted or sidetracked by foes.

2. Do good work. Youll spend most of your waking hours at work. Make the best of itor
you will have thrown away your life. (Strong words. Warranted.)

3. Start the day on a high/Close the week with a bang. Bring a SMILE to work.
IMMEDIATELY get out and about (MBWA). Etc. Call it the little BIG things starter
kit. First TEN MINUTES determine the flow of the day. Days end: More MBWA.
Offer thanks for a job well donelittle stuff more than big stuff. Call three
customers. Thank two people in other functions who lent a hand.

4. Time spent on relationships/network building. Its the ULTIMATE CAPITAL

INVESTMENT.

5. Training. Training must go from second best to the very top of the heap. The training
boss should sit next door to the CEO. Training courses should unfailingly make you
gasp at their quality.

6. People development. Priority #1 is no less than a MORAL OBLIGATION to let

nothing get in the way of helping our peopleeach and every onegrow and prosper
and achieve beyond their wildest dreams. (Hint: Youll make a lot of money along the
way.)

7. The BIG DUH. Taking care of peopleeven in retailPAYS!

8. Joy. Damn it. (Why not?)

9. WOW-ification. Ugly word. Magnificent aspiration. (Necessary, too, in a hyper-

competitive world.)

10. Firstline LEADERSHIP mattersa lot! The #1 variable determining enterprise

productivity is the quality of the full cadre of 1st-line leaders. (Recruit em and train
em accordingly.)

11. Get aboard the S-train or else. SM/Social Media. SX/Social eXecutive/SE/Social
Employees. SO/Social Organization. (ALL HANDS.) SB/Social Business. Cacophonous
engagement of oneAND ALL!with every aspect of the enterprise, inside and out, is
determining the difference between winners and losers.

12. The sharing economy. Sharing pays! Sharing (more) pays (more)!

13. The hang out factor. Little or nothing is more important than MANAGING your
Hang Out Portfolio! We are indeed what we eatand who we spend time with.

14. Calendar supremacy. You ARE how you spend your time. PERIOD.

4
15. Civility. Civility allows you to sleep at night. Civility is (also) a STUNNING competitive
advantage.

16. Politics. IMPLEMENTATION is politics. (Get over it.) (Master it.)

17. EXCELLENT Meetings. Meetings are what bosses do. Meetings are de facto
Leadership Opportunity #1. Act accordingly. (Few do.)

18. Email EXCELLENCE. Why not?

19. The reaction is more important than the action. The problem is rarely the problem. The
RESPONSE to the problem is invariably the problem.

20. Thank you! Acknowledge and Appreciate are perhaps the two most powerful words
in the leaders language.

21. ACKNOWLEDGEMENT Power. (Continued. Why? Said power is AWESOME.)

22. Listen up! Make 2014: The Year of the EAR. Listening = Skill #1.

23. TALK. LISTEN. WRITE. The UN-studied big three.

24. Have you The 50 Have Yous.

25. 2013-14/New Years Week. BEGINNINGS and ENDINGS matter. A LOT.

26. The delicacy of the helping process. We suck at giving criticism. (It matters. A LOT.)

27. EXCELLENCE. The 5-minute Rule. (PLUS more.)

28. Organizations exist to SERVE. PERIOD.

29. Shareholder value MYTH. Shareholders need not come 1st among corporate priorities.

30. Putting People REALLY First. (REALLY.)

31. Limits to strategy. Winners focus on EXECUTION.

32. Only one can be the cheapest. DESIGN as D.I.C./Differentiator-In-Chief.

33. RADICAL Personal Development. Its the only survival strategy amidst the
economic/tech tsunami. Start ASAP.

34. 100% of us ENTREPRENEURS. We are ready! (It turns out.)

35. Benchmarking. Effective benchmarking is NOT about copyingit IS about learning

and adapting to circumstances.

36. B-I-G? Over-rated!

5
37. Judgment. OUR JUDGMENT STINKS. PERIOD. (And there are tons of research to
prove that VERY uncomfortable point.)

38. Culture comes FIRST. If (hyper-hardnosed) former IBM CEO Lou Gerstner says it,
it must be so!

39. This will be the womens century. Women BUY. Women RULE.

40. The THREE Rules. Taking the high road to success.

41. The PI6. Or: Personal Impact SIX. Short and (I hope) sweet.

42. BIGGEST Life Decision. Your call ONE DAY AT A TIME.

43. Read! Read! Read some more! One of the premier investment bankers in the world
declares CEOs #1 problem to be a failure to read enough.

44. The Middle Class Is Toast. (Ye gads.) (And then an antidote!)

45. WOW. NOW. The Project 50. The Brand You 50. The Professional Service Firm 50.

46. Full STEAM Ahead. Call for an Education Revolution. ASAP.

47. 47 questions for newly anointed CEOs. Do you leave 50% of your time unscheduled?
(And 46 others.)

48. Ready. Fire. Aim. The ACTION Imperativenow more than ever.

49. The LAST word. (For now.)

50. The LAST word (Version TWO). People REALLY Firstor else.

51. The LAST word (Version THREE). Do (NOW) or Die.

52. The LAST word (Version FOUR). Implementation: The last 99%.

53. The LAST word (Version FIVE). The only thing we have to fear is the absence of fear.

54. The LAST word (Version SIX). We ALL have what it takes to be entrepreneurial.

55. PSF or bust! Becoming a (full-fledged) PROFESSIONAL SERVICE FIRM.

56. The LAST word (Version SEVEN). Nothing half way! Use your last ounce of energy!

57. The LAST word (Version EIGHT). Nobody knows anything. Hmmmmm ......

Appendix: Systems Have Their Place: SECOND Place.

6
2014.0306/406 pages/52,465 words

I. Change/Change Agents
The A-squared Approach: Allies & Action

Not sure what triggered it, but I went on a Twitter rampage this morning
(Thursday, 11/21/13) on the topic of change. Herewith, FYI:

Change agentry: Forget the word enemies. Focus on/obsess on ...

ALLIES.
Big change is not about fighting the bad guys. Its about surrounding them with
your continuously recruited allies.

Success at change: Building a stable of allies. Failure: Pissing and moaning and
picking fights.

Change agent time distribution: 50% recruiting Allies. 40% tending Allies. 10%

other. 0% fighting enemies.

Change: Allies do not automatically remain allies. Tend them and do NOT NOT
NOT neglect themthe latter is a common sin.

Change the 4F Way: F F F F ind a ellow

(Change agents need playmates and distant playpens.)

reak araway.

7
 small
Change: Rack up and log

wins like a maniac.

Change you want: Its already happening somewhere. Find it!

Some people look for things that

Change the Bob Stone way:
went wrong and try to fix them. I look for things
that went right, and try to build off them.
Dotcom movement worked big time.
Losses as critical as wins:
Astonishing amount of experimentation in brief
period. Ls as/more important than Ws.
Change is about end runsnot a smash-mouth plunge down the middle.

Allies: Recruit the quiet ones as much or more than the noisy ones.

If you cant find allies, youre probably perceived as too far out. Find the sweet
spot: Exciting/edgy w/o scaring the shit outta people.

A rigid stance nearly always generates an equally rigid response.

Change: Making loud noises is usually a losers strategy.

If you are really passionate, you tend to confront. Confrontation NEVER results in
victory; it just entrenches your opponents and increases their determination to stop
you. You play into the bad guys hands: I knew he was a jackass. Never put him on
the agenda again.

8
 Action Rules! 1 Thing (Only) Ive Learned in 48 Years!
A Bias for Action. (No. 1/Basics of Excellence/In Search of Excellence/1982)

Ready. Fire. Aim.

(H. Ross Perot on EDS; as compared to GMs Ready. Aim. Aim. Aim. Aim. Aim. )
Just do it! (Nike)
Move fast, break things. (Facebook)
Experiment fearlessly. (Trait #1/Great innovator companies/Bloomberg Businessweek)
Relentless trial and error. (Corporate Survival Trait #1 in crazy times/Wall Street Journal)
You miss 100% of the shots you never take. (Wayne Gretzky)
Fail. Forward. Fast. (Tech exec/Philadelphia)
CAN YOUR BUSINESS FAIL FAST ENOUGH TO SUCCEED? (Economist conf. title)
Fail faster, succeed sooner. (David Kelley/IDEO)
No matter. Try again. Fail again. Fail better. (Samuel Beckett)
Reward excellent failures. Punish mediocre successes. (Phil Daniels/Australian businessman)
Whoever Makes the Most Mistakes Wins. (Richard Farson/book title)
The Silicon Valley of today is built less atop the spires of earlier triumphs than upon the
rubble of earlier debacles. (Paul Saffo/tech futurist/Palo Alto)
The secret of fast progress is inefficiency: fast/furious/numerous failures. (K. Kelly)
S.A.V./Screw Around Vigorously (TP: only possible success strategy for crazy times)

Demo or die. (MIT Media Lab credo)

Dont plan. Do stuff. (David Kelley/IDEO)
Effective prototyping may be the most valuable core competence an innovative
organization can hope to have./Minimize mean time to prototype. (M. Schrage/MIT)
This is so simple it sounds stupid. You only find oil if you drill wells. (J. Masters/wildcatter)
We have a strategic plan. Its called doing things. (Herb Kelleher/Southwest Airlines)

Can do! (Motto/U.S. Navy Seabees/my starting point in 1966 in Vietnam)

Execution is strategy. (Fred Malek)
WD40 (Water Displacement, 40 tries to get it right)
BLAME NO ONE. EXPECT NOTHING. DO
SOMETHING. (NFL coach Bill Parcells/locker-room poster)
Quality is a probabilistic function of quantity. (M. Gladwell/Creation Myth/re J.S. Bach)
Ever notice that What the hell is always the right decision? (Anon. screenwriter)

W.T.T.M.S.W. /Whoever Tries The Most Stuff Wins.

WTTMSASTMSUW/Whoever Tries The Most Stuff And Screws The Most Stuff Up Wins.
WTTMSASTMSUTFW/Whoever Tries The Most Stuff And Screws The Most Stuff Up
The Fastest Wins.

9
 WTTMSW:

Whoever
Tries
The
Most
Stuff
Wins.
10
(Trying a lotta stuff/WTTMSW writ
large: Trial and error, many many
many trials and many many many
errors very very very rapidly will be the
rulethink dotcom boom and bust and
the incredibly valuable residual in terms
of entrepreneurial training and ideas
surfaced and approaches rejected.
Tolerance for rapid learningand
unlearningwill be a, even THE
most valued skill. FYI: Gamers
instinctively get thislots of trials,
lots of errors, as fast as possiblein
ways their error-avoiding elders can
only imagine; hence, for this reason
among many, the revolution is/will be
to a very significant degree be led by
youth.)

11
Change: Recruit allies 2 or 3 levels down ... the magicians who reside where the
real work is done and the place from which the system can be indirectly
manipulated. I.e., Suck down for success/Make friends in low places.

Change: ALLIES. ALLIES. ALLIES. ALLIES.

ALLIES. ALLIES. (Then more ALLIES.)
Change agents: Commit no minor sins. Dont let the bad guys find a narrow
opening and bring you down for trivial reasons.

Change agents: Keep a civil tongue at all costs.

Winners: Recruit/nurture allies; try lotsa stuff; stay under the radar. Losers: Go toe
to toe with the establishment; seek the spotlight.

Speak not ill of

Change agents:

thine enemies.
the walls have keen ears.
Even to pals in private. All

Change agents: No: Charts and graphs. Instead: Demos. Demos. Then more demos.

Success is more about momentum and

Change:
growing excitement around small wins than it is
about big wins.
Change: Engage your allies in the design processeven if it introduces impurities.
They must FEEL true ownership.

100% of change-that-works is NON-linear. (A wonderful saying: Winners are the

ones who are good at Plan B. Or, Id say, Plan Z.)

12
.,

Suck down
for success.*
Make friends
in low
places.
*Sucking up is for suckers.

13
Change: Joyfully let/encourage your allies to take

100%
theyre involved in.
credit for the small wins

Serious change includes bad days, bad weeks, bad months, perhaps bad years.

Change agents: Re-read all emails THREE times before sending.

Social Media is a marvel. But do NOT shortchange face-to-face with Allies.

Successful small wins

Change agents:

with outsiders provide enormous

street cred.* (*And, increasingly, Co-invention
is EVERYTHING.)

Change agents: Preaching to the choir is just fine. More than fine: It produces a

If the members of the choir

multiplier effect:

preach to their choirs, it becomes a ...

MOVEMENT!
Greatest waste of time? Trying to convert non-believers. Instead, surround em.
That is, you dont convert. They discovercome to appreciate what youre
doing because a couple of their pals have joined up.

14
#1 role of
allies?
Recruit more
allies!*
*Hence allies perceived ownership is all-
importantallies have to do it their way to abet that
sense of ownership. Give em space: No doctrinal
rigidity, please!

15
 Aiming for An Allys Ownership

The following are simplistic, but give a flavor of the approach to prospective
allies. I repeat: They are not helpers. They are stakeholders with as much
ownership/skin-in-the-game as you.

Herewith:

Hey, Ive been working on this idea; actually weve both talked
about the issue before. Want to add your $2.22 [not $0.02] and
help me develop it? Who knows, could be fun.

We ran a little two-bit trial on part of this new program. Results

look pretty good. Any chance youd tweak it and try it with your
team?

Ive gotten these great results from this system tweak. But your
group is very different from mine. If you like the data, would you
consider doing something akin to it, using your parameters, at
your place?

I tested this idea and had some pretty good results. Then Nancy
James re-designed it big time for her departmentand had
promising results. Your department is more like hers than mine.
If youre interested, Im sure shed be delighted to go through it
with you.
Etc.

Etc.

16
All alliances are social
regardless of the role of self-
interest. Tend to the social
partor perish.

Allied commands depend

on mutual confidence, and
this confidence is
gained, above all, through
the development of
friendships.General D.D. Eisenhower,
on managing the impossiblethe D-Day alliance

17
 ALLIES.
Change I:

ALLIES. ALLIES.
ALLIES. ALLIES.
ALLIES. (Then
more ALLIES.)

Suck DOWN
Change II:

for success.

Change III: Demo. NOW.

18
 ONE More/LAST Time:

Allies, Not Adversaries

Overcoming resistance to change is the quintessential B.S./misguided/stupid/
ignorant approach to getting (important) things done.

Let me set you straight in precisely SEVENTEEN words:

not about vanquishing enemies.

Implementing desired change is

Implementing desired change is about recruiting and nurturing allies.

That is the difference between Negative & Positive.

That is the difference between Enemies & Friends.

That is the difference between Fear & Fun.

That is the difference between Night & Day.

That is the difference between Hell & Heaven.

That is the difference between Failure & Success.

Q.E.D.
19
 II. Do Good Work

I admit Ive tired of Garrison Keillor, but I do like his tag line:
Be well. Do good work. Keep in touch. My comments follow:

Do good
Garrison Keillor:

work.
today for you stack up on that metric?
That is a powerful sentiment. How does

Good work: Of service to our clients. Of service to our peers. Of service to our
community. Commited to personal growth. Pushing the limits.

By definition do good work revolves around the phrase

of service.
Good work: Help others grow. Infectious enthusiasm. Always approachable. A
ready smile. Keeping promises. Learning. Learning. Learning.

Good work: The quality of the experience of producing the product is as important
as the product itself.

Not sure why do good work struck me so hard. I guess I realize what a
monumental challenge it is to live up to day in and day out.

20
 Most of our
Good work:

conscious life will be

at work. Like it or
not. Waste your work
life and you have
effectively wasted
your life.

21
 III. Must Do Top-of-the-Morning Rituals
I launched the day with a few quick starter-to-dos for bosses. They were vigorously
retweeted, so I decided to post them here. FYI:

MBWA. (Managing By Wandering Around.)

NOW.
PLEASE.
Take someone in another function to lunch. TODAY. DAMN IT.

Thank someone for bringing a SMILE

to work today. Do it in the next ... 30 MINUTES.

Boss: Observe yourself closely over the next 60 MINUTES. Did you LISTEN more
than you talked?

At the beginning of your next meeting THANK two people for SOMETHING.

THANK YOU for reading these tweets. Have a great day.

22
Monday/Tomorrow/Courtesy NFL/National Football

Script
League:

your first 5-10

plays. (I.e., carefully launch
the day/week in a purposeful fashion.)

23
 Close-the-Week/Friday Rituals

Have you prepped for your first meeting with your team today with the same care
youd put into a presentation to your boss? THIS is MORE important!

The first ten minutes set the tone for

Bosses:

the day. PERIOD.

Bosses/Repeat: MBWA for the first 15-30 minutes after arrival at the office.
Bosses: MBWA, last 15-30 minutes of the day/Friday. Thank a minimum of THREE
people for something they did this week.

Bosses: Take someone new and different to lunch today.

Bosses: Re MBWA, saying thanks a couple of times, etc., how about a daily rituals
list carried in your pocket to remind you of this stuff?

Bosses: How about a promise to yourself not to email/text/etc. any of your team this
weekend?

Bosses: Like my old White House boss, set aside a half hour this afternoon to

CALL 3-5 outsider folks who gave your team a hand this week.
(WH boss) was the busiest guy I ever met, yet he did (his late-in-the-day
Thank you ritual) EVERY day. And most calls were down to someone
whod offered a helping hand.

Lot of (my WH bosss) calls (this was the old days) were to secretaries/PAs of those
above him: His secretaries network was his secret weapon.

Bosses/FACT: Projects succeed/fail because of cooperation from OTHER functions.

Find 2-3 of those other function folks to thank today.

Suck DOWN for success!

Bosses/REMEMBER:

(Its the efforts/energy of the network

below you that makes you a hero or a
goat!)

24
I wrote In Search of Excellence about ONE thing: MBWA.
Being in touch,
MBWA:

being human,
emphasizing
so-called soft
factors, which are in
fact true hard
factors that drive
success/growth/
profitability.
25
 MBWA 25
Im always stopping by our stores

at least 25 a week.
Im also in other places: Home Depot,
Whole Foods, Crate & Barrel. I try to be a
sponge to pick up as much as I can.
Howard Schultz

26
 MBWA 4-8-12
MBWA 4: The four most important words in any
organization are

WHAT DO YOU THINK?

Source: Dave Wheeler, posted at tompeters.com

MBWA 8: Change the World with 8 Words

What do you think?

How can I help?*
*Boss as CHRO/Chief Hurdle Removal Officer

MBWA 12 : Change the World With 12 Words

What do you think?

How can I help?
What have you learned?*
*What (new thing) have you learned (in the last 24 hours)?

27
 IV. Its All About RELATIONSHIPS
Its All About the NETWORK

R.O.I.R. (Return On Investment in

> R.O.I.
Relationships)

Investment in ones network is the ultimate

CAPITAL investment!

Investment in ones network should

be thoughtful, consistent, opposite
of catch as catch can.
Lisa Radin Would you call that: Human Capital ?

Call it human
Call it CAPITAL. Period.

capital & accountants [damn them] will

call it soft dollars.
Lisa Radin: You are right.

28
Is anything MORE
important than
methodical
investment in ones
Network?
Supremely
stupid
question.
Of course not!
29
 V. My Training/Development
Obsession
I just scored Birthday #71. I am more determined than ever to shout/scream about
CEOs (and other bosses at all levels) finally Putting People Firstas their mission
statements say, but which is contradicted by their actions. As tech change
accelerates, this becomes more important with each passing day.

At an event in Milan (11/05), I passed out one item to the several thousand

attendees. I labeled it my #1 Belief. To wit:

Your principal moral obligation as a leader is to develop the skillset, soft and
hard, of every one of the people in your charge (temporary as well as semi-
permanent) to the maximum extent of your abilities. The good news: This is also the #1
mid- to long-term ... profit maximization strategy!

Related to the statement-of-principle above, I fired off (right term) on Sunday

(11/03) a series of tweets on training. Herewith:

Is your CTO/Chief Training Officer your top paid C-level job (other than
CEO/COO)?
If not, why not?
Are your top trainers paid as much as your top marketers?
If not, why not?

Are your training courses

so good they make you
giggle?
If not, why not?

30
Randomly stop an employee in the
hall: Can she/he describe her/his
development plan for the next 12
months?
If not, why not?
Sunday/NFL game day (as this was written): Players are our most important
asset. No shit, Sherlock. Football is a competitive BUSINESS.
If people first is obvious for them, why not you?
Study/inhale Matthew Kellys book The Dream Manager. Its about a fictional
sanitary services company. But its not fictional. I met the companys CEO.
If them, why not you?
Check out a Marine E-6 (senior sergeant): Ask him/her about training and
development objectives, and the intensity of the approach thereto.
If him, why not you?

Want to understand training in a

super high-tech business? Talk to
the commanding officer (effectively
CTO) of a boomer/U.S. Navy
nuclear sub patrolling the sea with
nuclear-armed missiles on board.
If them, why not you?

31
Is your CTO/Chief
Training Officer your
top paid C-level
job (other than
CEO/COO)?
Are your top trainers
paid/cherished as
much as your top
marketers/
engineers?
32
(I would guess that most
CEOs see IT investments as
a strategic necessity, but
see training expenses as a
necessary evil.TP)

(In a connected economy,

an employee investment is
also a company brand
investment.Vala Afshar)

33
 Addenda: Training Is Not a Do To:
The-Prep-Is-The-Thing!

The Sochi Olympics should remind us that extensive training is

not something bosses do to people.

Training = Success.
Junior/senior. Age 17 (young Olympian) or 71 (me).

(My take: Many [most?] organizations training is treated de facto

penalty administered to rather than a magnificent

growth opportunity.)

You do not achieve mastery during the game or the

Mastery is
speech or the concert.

achieved in the (only) (invisible)

preparation stage.
34
(It often seems to me that the attitude
toward training is, another damn cost
item, or How bloody much do we
have to do? On the receiving end,
given the half-assed attention to the
product (the training itself), the attitude
is, How much of this shit do we have to
go through? Instead I seeand I
think everyone should seetraining as
THE COOLEST THING
EVER. The matchless opportunity to
help people Growand to help our
organization achieve Excellence, which
in turn can be translated into Ecstatic
Customersand, then, Ecstatic
Shareholders. This whole topic, as
ordinarily approached PISSES ME
OFF SOOOOOO MUCH I QUAKE &
SHAKE.)

35
 joy
If there is no and

exhilaration
in preparing, success odds are Z-E-R-O.

Training should be
the highlight. Event
an afterthought.
basically decided before you step in the field/stage.)
(Event

36
 The
Hall of fame football coach Bill Walsh on prep:

score takes care of

itself.
Basketball coach John Wooden, perhaps the best coach of anything, ever:

I was never much of

a game coach, but I
was a pretty good
practice coach.

37
Training is
tippy top mgt
job: military,
cops, firemen,
arts. Corps:
mid-level
middle mgr.
38
For me, the pleasure is in increasing, at1A.M. before a 9 A.M.
speech, the font size of a single word Ive decided to emphasize on
PowerPoint slide #39.

My speech is effectively
over before I step on stage.

You clearly
Trevor Gay: Would rather hear

prepared for that That was than

great!

Any idiot can be psyched & up when he steps on the field on

game day. Key is being psyched &

up & 1st on the practice

field.

39
Twitter comment by org development group: We
can help by
integrating learning into work and ditching the term
training.

NO! NO! NO!

NO cover-ups!

WONDERFUL
Training thing!

WONDERFUL
Training word!

GREAT BEG
Make it so people for it!

I LOVE to train.

I LOVE to improve. (Age 71.)

40
 6-2-3

SIX MONTHS
*It takes Jerry Seinfeld

to develop TWOTHREE MINUTES

of new material
(Source: Documentary, Comedian)

41
 Gamblin Man

> 5 of 10 CEOs see training as

Bet:

expense rather than investment.

> 5 of 10 CEOs see training as
Bet:

defense rather than offense.

> 5 of 10 CEOs see training as
Bet:

necessary evil rather than

strategic opportunity.
> 8 of 10 CEOs, in a 45-min
Bet:

tour dhorizon of their biz, would

not mention training.

42
 Its been 12 years
Rick Taylor:

since Ive been offered

training in anything.
Corporations see it as an
expense, not investment.

Shit hits fan, Great Recession:

Container Store

boosts
front-line sales training.

RARE!!
43
 VI. Leadership2014: Job #1
Employee development is decidedly NOT an HR term; it is a reason for
being, along with service to ones customers:

Your principal moral

obligation as a leader is to
develop the skillset, soft
and hard, of every one of
the people in your charge
(temporary as well as semi-
permanent) to the maximum
extent of your abilities. The
good news: This is also the
#1 mid- to long-term ... profit
maximization strategy!
44
 Developing People: The Memories That Matter
I shall tell you a great secret, my friend. Do not wait for the last
judgment; it takes place every day.Albert Camus

In a month, as I write, Ill be 68. No matter how hard one tries to be forward focused,
at that age there is a frequent urge to sum things up. As one does look back, there is
a certain class of memories that stand out. I know my own storyand Ive talked to
many others. When you look back at what really mattersits rarely the numbers.
Make no mistake, as you soldier on, your tiny or huge enterprise must be profitable to
survive. Wanna do great things? Well, check the cash flow statement first. True, but
still the summing up statement is far more about the basics of human behavior and
character than about the angle of incline of a market share graph. What follows is,
then, in a fashion, the memories that matteror will matter. Why point this out?
Because to get the tally right on this one at age 68, the sorts of things enumerated here
must have been top of mind throughout your careeri.e., today, tomorrow, this
week, this month, this year.

The memories that matter/that will matter:

The people you developed who went on to stellar accomplishments inside or outside
the company. (A reputation as a peerless people developer.)

The (no more than) two or three people you developed who went on to create stellar
institutions of their own.

The longshots (people with a certain something) you bet on who surprised
themselvesand your peers.

******************************

Selection of General Officers in the Indian (or Any Other) Army

It occurred during a seminar in Mumbai. I was having an exchange with a senior

general officer in the Indian Army. In particular, we were talking about promotions
to senior rank. I said that I thought the principal criterion was not excellence at
concocting strategy or the like. Instead, I suggested the one question/the first and
most important query of candidates for a senior promotion:

45
In the last year (or 3 years, or duration of current job), name the three people
whose growth youve most contributed to. Please explain where they were at the
beginning of the year, where they are today, and where they are heading in the next 12
months. Please explain in painstaking detail your development strategy in each
case. Please tell me your biggest development disappointmentlooking back, could
you or would you have done anything differently? Please tell me about your greatest
development triumphand disasterin the last five years. What are the three big
things youve learned about helping people grow along the way?

Bottom line/Accomplishment #1 = The people we develop who execute and carry

the torch for the things we care aboutand then take the organization up, up and far
beyond what we or they had imagined possible.

******************************

Leadership hiring criteria:

The sort of/character of people you hired in general. (And the bad apples you
chucked out despite some stellar traits.)

The people of all stripes who 5/10/20 years later say, You made
a difference in my life, Your belief in me changed
everything.
A handful of projects (a half dozen at most) you doggedly pursued that still make
you smile and which fundamentally changed the way things are done inside or
outside the company/industry.

The supercharged camaraderie of a handful of Great Teams aiming to change the

world.

Belly laughs at some of the stupid-insane things you and your mates tried.

Less than a closet full of I should have

A frighteningly consistent record of having invariably said, Go for it!

Not intervening in the face of considerable lossrecognizing that to develop top
talent means tolerating failures and allowing the person who screwed up to work
her or his own way through and out of a self-created mess.

A stoic unwillingness to badmouth otherseven in private.

Dealing with one or more crises with particular/memorable aplomb.

46
Demanding CIVILITY regardless of circumstances.
Turning around one or two or so truly dreadful situationsand watching almost
everyone involved rise to the occasion (often to their own surprise) and acquire a
renewed sense of purpose in the process.

Leaving something behind of demonstrably lasting worth. (On short as well as long
assignments.)

Unremarkable Except For

******************************

I was talking with a friend about another friend. We marveled at his results
frankly, he wasnt a very impressive fellow in the traditional boss-like sense. But
then my friend said, You know, Ive seen him working with people. He has what
youve got to call a magic touch. His quiet dialogues seem to leave the other person
energized and confident.

Impressive in conventional terms?

Perhaps not.
Impressive/awesome at people development?
Absolutely!
And that, in the end is the name of the Great Results Game.

Bottom line: Unremarkableexcept for RESULTS. A superb

people developerher/his folks invariably amazed at what
theyve been able to accomplish.
******************************

Having almost always (99% of the time) put Quality and Excellence ahead of
Quantity. (At times an unpopular approach.)

A few critical instances where you stopped short and could have done more
but to have done so would have compromised your and your teams character
and integrity.

A sense of time well and honorably spent.

The expression of simple human kindness and considerationno matter how

harried you may be/may have been.

47
Understood that your demeanor/expression of character always sets the tone
especially in difficult situations.

Have never (rarely) let your external expression of enthusiasm/determination flag

the rougher the times, the more your expressed energy and bedrock optimism and
sense of humor shows.

The respect of your peers.

A stoic unwillingness to badmouth otherseven in private.

An invariant creed: When something goes amiss, The buck

stops with me; when something goes right, It was their doing,
not mine.
A Mandela-like nave belief that others will rise to the occasion if given the
opportunity.

An abiding appreciation that tough times make the woman/man. Expressions of

characterand the moment seizedwhen the yogurt hits the fan and others slink
into their closets or exhibit a nasty streak is the Ultimate Performance Measure.

A reputation for eschewing the trappings of power. (Strong self-management of

tendencies toward arrogance or dismissiveness.)

Intense, even driven but not to the point of being careless of others in the
process of forging ahead.

******************************

Life is not a journey to the grave with the intention of arriving

safely in one pretty and well preserved piece, but to skid across
the line broadside, thoroughly used up, worn out, leaking oil,
shouting GERONIMO!Bill McKenna, professional motorcycle racer
******************************

Willing time and again to be surprised by ways of doing things that are inconsistent
with your certain hypotheses.

Humility in the face of others, at every level, who know more than you about the
way things really are.

48
Having bitten your tongue on a thousand occasionsand listened, really really
listened. (And been constantly delighted when, as a result, you invariably learned
something new and invariably increased your connection with the speaker.)

Unalloyed pleasure in being informed of the fallaciousness of

your beliefs by someone 15 years your junior and several
rungs below you on the hierarchical ladder.
Selflessness. (A sterling reputation as a guy always willing to help out with alacrity
despite personal cost and with no desire whatsoever to get points for your
effort..)

As thoughtful and respectful, or more so, toward thine enemies as toward friends
and supporters

Always and relentlessly put at the top of your list/any list being first and foremost

of service to your internal and external constituents.

(Employees/Peers/Customers/Vendors/Community.)

Treated the term servant leadership as holy writ. (And preached servant
leadership to othersnew non-managerial hire, age 18, or old pro, age 48.)

Created the sort of workplaces youd like your kids to inhabit. (Explicitly conscious
of this Would I want my kids to work here? litmus test.)

A certifiable nut about quality and safety and integrity. (More or less
regardless of any costs.)

A notable few circumstances where you resigned rather than compromise your
bedrock beliefs.

Perfectionism just short of the paralyzing variety.

A self- and relentlessly enforced group-standard of

EXCELLENCE-in-all-we-do/EXCELLENCE in our
behavior toward one another.

Bon chance!
Remember: today, tomorrow, this week, this month

49
 ******************************

In a way, the world is a great liar.

It shows you it worships and admires money, but at the

end of the day it doesnt. It says it adores fame and
celebrity, but it doesnt, not really. The world admires,
and wants to hold on to, and not lose, goodness. It
admires virtue. At the end it gives its greatest tributes to
generosity, honesty, courage, mercy, talents well used,
talents that, brought into the world, make it better. Thats
what it really admires. Thats what we talk about in
eulogies, because thats whats important. We dont say,
The thing about Joe was he was rich!

We say, if we can

The thing about Joe

was he took good
care of people.
Peggy Noonan, A Lifes Lesson, on the astounding response to the passing of
Tim Russert, the Wall Street Journal, June 21-22, 2008

******************************

50
VII. BREAKTHROUGH* 2014 ! (*Duh.)
From the New York Times/01.05.14, courtesy Adam Davidson, Planet Money/NPR:

Contrary to
conventional
corporate thinking,
treating retail
workers much better
may make everyone
(including their
employers) much
richer. **
**Cited in particular, The Good Jobs Strategy, by M.I.T. professor Zeynep Ton.

51
 VIII. Joy! (Why Not?)
If you think the three
FUN. JOY. WORK.

are incompatible and you

are a leader, Id beg you to
take a hike. (Seriously.)

Is your team having

FUN today?
fault. Soooooo?
If not, its 100% your (leaders)

With the likes of the fun-joy-work quote, Im NOT trying to inspire you!! Im
simply asking you to think about it and perhaps talk about it.

Anon. (name withheld by me): Our IT reorg the last 3 years hasnt been fun and
many key people have left/leaving. The leader has stopped asking
that question.

52
Fun is wholly unrelated to funny. To, I hope, state the obvious. And fun is
*
hardly antithetical to seriousin fact, they are handmaidens. (Doesnt get much
better than serious fun.) And it doesnt mean that some bad days dont simply

Instead,
suck. deep fun
is
about enjoying our teammates
companysharing in their successes
and screw-ups; dropping what were
doing, even when were on deadline,
to help a teammate in a bind; seeking
to change the game with our current
project, even if its a wee project;
etc.; etc.
(*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: How the Worlds Best Companies Stimulate to Innovate)

53
FUN.
JOY.
WORK.
(Plausible.)
(Compatible.)
(Effective.)

(TODAY.)

54
 IX. The WOW-ification Imperative*
(*Okay. Its an ugly word. But this is my screedand it works for me. You suit
yourself. Many in the Twitter Gang approveda few groaned.)

How many of your Top

Innovation Index:

Five Projects score 8 or higher (out

of 10) on a Weird/Profound/
WOW/Game-changer Scale?
Move every project
WOW-ification Index:

(definition) that scores 6 or less two

notches up on the WOW-ification
Scale within the next two weeks. If
your principal current project scores
6 or less, bring it up one (or two!)
notches by noon on Monday.** (**This
tweet was written on a Sunday.)

55
 MORE.
WOW.
NOW.*

*Sorry, couldnt resist.

56
 WOW-ish Words
Shamelessly Uttered By Real People

Zappos 10 Corporate Values

Deliver WOW!
Embrace and drive change.
through service.

Create fun and a little weirdness.

Be adventurous, creative, and open-minded.
Pursue growth and learning.
Build open and honest relationships with communication.
Build a positive team and family spirit.
Do more with less.
Be passionate and determined.
Be humble.

Insanely great Steve Jobs

Radically thrilling BMW

57
Astonish me! Sergei Diaghlev

Build something great!

Hiroshi Yamauchi/CEO Nintendo, to a game designer

Make it immortal!
David Ogilvy, to an ad copywriter

You know a design is good when you want to

lick it.Steve Jobs

Raise your sights!

Blaze new trails!
Compete with the immortals!
David Ogilvy, on Ogilvy & Mathers corporate culture

Wanted by Ogilvy & Mather International:

Trumpeter Swans
David Ogilvy

58
Every project we undertake
starts with the same
question: How can we do
what has never been done
before?
Stuart Hornery, Lend Lease

Let us create such a building that future

generations will take us for lunatics.
the church hierarchs at Seville

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, former CEO, Canon

59
 Kevin Roberts Credo

1. Ready. Fire! Aim.

2. If it aint broke ... Break it!
3. Hire crazies.
4. Ask dumb questions.
5. Pursue failure.
6. Lead, follow ... or get out of the way!
7. Spread confusion.
8. Ditch your office.
9. Read odd stuff.

10. Avoid moderation!

You cant behave in a calm, rational manner.
Youve got to be out there on the lunatic fringe.
Jack Welch

I WANT TO BE
THOROUGHLY USED UP
WHEN I DIE. Life is no brief candle to me. It is a
sort of splendid torch which I have got hold of for the moment, and I want to make it
burn as brightly as possible before handing it on to future generations.
George Bernard Shaw

60
If you ask me what I have come to do in this world,
I am here
I who am an artist, I will reply:

to live my life out loud.

mile Zola

If I had any epitaph that I would rather have more

than any other, it would be to say that I had
disturbed the sleep of my generation.Adlai Stevenson

Life is not a journey to the grave with the intention of arriving safely in one pretty
and well preserved piece, but to skid across the line broadside, thoroughly used up,
worn out, leaking oil, shouting

GERONIMO! Bill McKenna, professional motorcycle racer

61
 X. Best or Bust: 1st-Line Leadership
The Heart of EXCELLENCE

Is there a secret to productivity and employee satisfaction? Yes! The quality of

your cadre of 1st-line managers.

How do I know 1st-line managers singly/collectively are major assets?

Ask a general or an admiral about the
Simple:
importance of their cadres of sergeants or chief
petty officers.
In great armies, the job of generals is to back
up their sergeants.COL Tom Wilhelm, from Robert Kaplan,
The Man Who Would Be Khan, the Atlantic

Are you clear that a 1st-line boss is a full-fledged

LEADER? (NEVER use any other term.)

Many take 1st-line bosses seriously. I urge you to take the cadre thereof
INSANELY seriously.

People leave
managers, not
companies. Dave Wheeler*
(*Among others, Wheelers assertion re FIRST-LINE LEADERSHIP is
supported by Buckingham & Coffmans masterwork, First, Break All the Rules:
What the Worlds Greatest Managers Do Differently.)

62
 10 Questions Concerning Your First-line Supervisors

1. Are you, Big Boss, a formal student of first-line supervisor behavioral

excellence?* (*Yes, this sort of thing can be formally studied.)
2. Do you absolutely understand and act upon the fact that the first-line boss is the
KEY LEADERSHIP ROLE in the organization? Technical mastery is
importantbut secondary.
3. Does HR single out first-line supervisors individually and collectively for tracking
purposes and special/over the top developmental attention?
4. Do you spend gobs and gobs (and then more and more gobs and gobs) of time
selecting the first-line supervisors? Are your selection criteria consistent with the
enormity of the impact that first-line bosses will subsequently have?
ABSOLUTE BEST TRAINING &
5. Do you have the

CONTINUING DEVELOPMENT
PROGRAMS IN THE INDUSTRY (or some subset
thereof) for first-line supervisors?
6. Do you formally and rigorously MENTOR first-line supervisors?
7. Are you willing, pain notwithstanding, to leave a first-line supervisor slot open
until you can fill the slot with somebody spectacular? (And are you willing to use
some word like spectacular in judging applicants for the job?)
8. Is it possible that PROMOTION
DECISIONS for first-line supervisors are
as, or even more, important than promotion
decisions for the likes of VP slots? (Hint: Yes.)
9. Do you consider and evaluate the quality of your full set/CADRE of
first-line supervisors?
10. Are your first-line supervisors accorded the respect that the power of their
position merits?

63
Is there ONE
secret to
productivity and
employee
satisfaction?

YES!
The Quality of your
Full Cadre of
First-line Leaders.
64
Suggested addition to your Statement of Core Values:

We are obsessed with

developing a cadre of first-
line managers that is second
to nonewe understand that
this cadre per se is arguably
one of our top two or three
most important
STRATEGIC ASSETS.

65
 Selecting That (SUPERSTAR) First-line Leader

life and
Promotion Decisions:

death decisions.

A man should be never

promoted to a managerial position if
his vision focuses on peoples
weaknesses rather than on their
strengths.

Source: Peter Drucker, The Practice of Management

66
 XI. The S-Train Imperative
SM/Social Media. SX/Social
The S train:

eXecutives. SE/Social Employees.

SO/Social Organization. SB/Social

Business. Any way you look at it, its a full-fledged REVOLUTION!

It is axiomatic: SM/Social Media is wasted (almost a total waste?) without

SE/Social Employees & SX/Social eXecutives & SO/Social Organization.

Can you have social hot spots in an organization & still play the Social Business
Game effectively? I mostly dont think so. Its pretty close to all or nothing.
Can you have a social business if the CEO doesnt play (i.e., is not a Social
eXecutive)? I border on saying/believing No way!

The CEO should focus continuous/concentrated energy on creating/maintaining/

SM/SX/SE/
adjusting the culture:

SO/SB is a culture
play, pure and
simple.
67
Whole point of an effective Social Business: Everyone plays.

Marketing is the least

of it. (Yes, I said LEAST of it.)

EVERY function
plays a crucial role.
The interaction PER
SE puts the value
added into the value
added proposition.
Power of the social is aborted if several bits/functions de facto or de jure opt out.

HR by definition is (should be!) at the center of the vortex if you truly want
everyone to play The Great Social Game.
Can there be vigorous tension/disagreement within a committed Social Org? Not
only Yes but Damn well better be. Thats the true nature of the Value Add.

68
 Biz 2014: Get Aboard the S-Train !

SM/Social Media.
SX/Social eXecutives.
SE/Social Employees.
SO/Social Organization.
SB/Social Business.

69
 SocialBiz 2017: No Option !
Branding is about
Everything AND
Everyone =
Social Media/
Social Executives/
Social Employees/
Social Organization/
Social Business =
Table stakes by 2017.

70
 A Few of My Favorite Social Quotes

Winning in Marketplace2014/A Helping Ethos!

Today, despite the fact that were just a little swimming pool company in Virginia, we
have the most trafficked swimming pool website in the world. Five years ago, if youd
asked me and my business partners what we do, the answer would have been simple,
We are the
We build in-ground fiberglass swimming pools Now we say,
best teachers in the world on the subject of
fiberglass swimming pools, and we happen to build
them as well.Marcus Sheridan, River Pools and Spas (from Jay Baer,
Youtility: Why Smart Marketing Is About Help, Not Hype)

What if instead of trying to be amazing you just focused on being useful? What if
you decided to inform rather than promote? You know that expression, If you give a
man a fish, you feed him for a day. If you teach a man to fish, you feed him for a
lifetime? Well, the same is true for marketing: If you sell something, you make a
customer today; if you help someone, you make a customer for life. I call this
Youtility is marketing upside down. Instead
Youtility.
of marketing thats needed by companies, Youtility
is marketing thats wanted by customers. Youtility is
massively useful information, provided for free, that
creates longterm trust and kinship between your
company and your customers. The way customers gather
information about companies and make purchase decisions has changed.
Jay Baer, Youtility: Why Smart Marketing Is About Help, Not Hype

71
We are the best
teachers in the world
on the subject of
fiberglass swimming
pools, and we happen
to build them as
well. Marcus Sheridan, River Pools and Spas
(Apologies for stating the obvious: The point here is
underscoring the possibility of a pipsqueak company
becoming CENTER-OF-THE-UNIVERSE relative to its
area of expertise.)

72
 The Emergent Meaning of Engagement
Customer engagement is moving from relatively
isolated market transactions to deeply connected
and sustained social relationships. This basic change in how we
do business will make an impact on just about everything we do.Social Business
By Design: Transformative Social Media Strategies for the Connected Company
Dion Hinchcliffe & Peter Kim

Marbles, a Ball, and Social Employees at IBM

Picture a ball and a bag of marbles side by side. The two items might have the same
volumethat is, if you dropped them into a bucket, they would displace the same
because a
amount of water. The difference, however, lies in the surface area,
bag of marbles is comprised of several individual
pieces, the combined surface area of all the marbles
far outstrips the surface area of a single ball. The
expanded surface area represents a social brands increased diversity. These surfaces
connect and interact with each other in unique ways, offering customers and
employees alike a variety of paths toward a myriad of solutions. If none of the paths
prove to be suitable, social employees can carve out new paths on their own.
Ethan McCarty, Director of Enterprise Social Strategy, IBM (from Cheryl
Burgess & Mark Burgess, The Social Employee)

IBM Social Business Markers/2005-2012

*433,000 employees on IBM Connection
*26,000 individual blogs
*91,000 communities
*62,000 wikis
*50,000,000 IMs/day
*200,000 employees on Facebook
*295,000 employees/800,000 followers
of the brand
*35,000 on Twitter

Source: IBM case, in Cheryl Burgess & Mark Burgess, The Social Employee

73
 Seven Characteristics of the Social Employee
1. Engaged
2. Expects Integration of the Personal and Professional
3. Buys Into the Brands Story
4. Born Collaborator
5. Listens
6. Customer-Centric
7. Empowered Change Agent [TP: A bazillion miles beyond lip service!]
Source: Cheryl Burgess & Mark Burgess, The Social Employee

Social Survival Manifesto

1. Hiding is not an option.
2. Face it, you are outnumbered. (Level playing field, arrogance denied.)
3. You no longer control the message.
4. Try acting like a human being.
5. Learn to listen, or else. (REALLY listening to others is a must.)
6. Admit that you dont have all the answers.
7. Speak plainly and seek to inform.
8. Quit being a monolith. (Your employees, speaking online as
individuals, are a crucial resource can be managed through frameworks that
ENCOURAGE participation.)
9. Try being less evil.
10. Pay it forward, now. (Internet culture is largely built on the principle of the
Gift Economy give value away to your online communities.)

Source: Tom Liacas, socialdisruptions.com

74
 The Connection Machine
Once thinking is public, connections take over. Anyone whos Googled a favorite
hobby, food, or political subject has discovered some teeming site devoted to servicing
the infinitesimal fraction of the public that shares their otherwise obscure obsession.
(Mine: guitar pedals, modular origami, and the 1970s anime show Battle of the
Propelled by the hyperlink, the Internet is a
Planets.)
connection-making machine. And making
connections is a big deal in the history of thought.
Clive Thompson, THINKING OUT LOUD: How Successful Networks Nurture
Good Ideas, Atlantic/10.13

75
 XII. The Sharing Economy
The sharing economy is the rageand, indeed, it is the real thing. The idea stems
from an eternal verity. E.g., the quote below dates to 1868:

Cast your
bread upon
the waters &
it will come
back
buttered. Louisa May Alcott

76
Sharing matters.
Now more than ever.
(Its a Share or
else economy.)
Sharing is fun.
Sharing is
contagious.
Sharing works.
Gear up.
SHARE.
NOW.
77
 XIII. The (All Powerful) Hang Out Axiom:
Diversity (lower case d diversity) Rules

In every aspect of life, achieving true diversity is a winning strategy. And it must be
constantly worked at. Homogeneity is always the default state.

I call it lower case d diversity: diversity on any damned dimension you can
imagine.

Forget quotas, but when you squint

I call it the squint test.
at an exec team photo, it ought to look more or less
(more more than less) like the market being served.

Women buy the lions share of

Squint test redux:

retail AND commercial goods.* Does your top

team reflect that? (If it doesnt,

youre an idiot.)
Diversity battlecry: Fight RHS! (Rampant Homogeneity Syndrome.)

Gary Hamel: The bottleneck is at the top of the bottle. Worst cases of
RHS/Rampant Homogeneity Syndrome are boards and top teams.

Diversity: You will become like the five people you associate with the most; this can
be either a blessing or a curse.Billy Cox

You are what you eat.Victor Lindlahr/nutritionist/1942 You ARE who you
hang out with.T. Peters

78
(*Forget China,
India, and the
Internet: Economic
Growth Is Driven by
Women. Headline, Economist )

79
 It is hardly possible to
Diversity:

overrate the value of placing

human beings in contact
with persons dis-similar
to themselves, and with
modes of thought and action
unlike those with which they
are familiar. Such
communication has always
been, and is peculiarly in the
present age, one of the
primary sources of
progress.John Stuart Mill (1806-1873)

80
 Hang out with cool and thou
Diversity:
shalt become more cool. Hang out
with dull and thou shalt become
more dull.

hang out with

Diversity: Your
portfolio can/should be as
carefully concocted/managed/
measured as your strategic planit
IS your de facto strategic plan!
Diversity: Every
relationship-
partnership decision (employee/
vendor/customer/etc.) is a strategic
decision: Innovate,Yes or No.

81
 The bottleneck is at
Diversity:

the top of the bottle. Where

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

82
Diversity matters: Boards. Exec teams. Customers. Vendors. Consultants.
Employees. Benchmarks. Who you go to lunch with. Etc.

Diversity: Future-defining customers may account for only 2-3% of the total, but
they represent a crucial window on the future.A. Slywotzky

Diversity: Dont benchmark, Futuremark! (Source unk.) (Tommorow is being

played out today SOMEWHERE.)

Diversity: Dont benchmark, Othermark! (Source unk.) (Look waaaay outside

your industry for lessons.)

Diversity: Companies have defined so much best practice that they are now more
or less identical.Jesper Kunde/Unique Now or Never

Diversity: While everything may be better, it is also increasingly the same.

P. Goldberger on retail, The Sameness of Things, NYTimes

The short road to ruin

Diversity:

is to emulate the methods of

your adversary. Winston Churchill

Do one thing every

Diversity seeking:

day that scares you. Eleanor Roosevelt*

(*This is INCREDIBLY hard.)

Diversity seeking: Hire (explicitly) for curiosity.

83
 23 Flavors of Hanging Out*

*Customers
*Vendors
*Out-sourcing Partners
*Acquisitions
*Purposeful Theft
*Diversity/diversity
*Diversity/Women
*Diversity/Crowd-sourcing
*Diversity/Weird
*Diversity/Deep-dip Promotions
*Benchmarks
*Curiosity
*Calendar
*MBWA
*Lunch/General
*Lunch/Other Functions
*Lunch/Underbelly
*Physical Co-location
*HQ Location
*Top Team
*Board of Directors
*Brand You
*Anti-gravity/Solitude

*From my paper, Innovation Strategy Mainstay: The Hang

Out Axiom (available at tompeters.com).

84
 220 = 220 = #1
About 220 work days per year.

Hence: 220 lunches per year.

Hence: 220 hang out opportunities served up
on a platter.

Lunch hour passes solo: Hang out opportunity lost

forever.
Lunch with pals: Expand-through-new-hangouts
opportunity lost forever.
Lost lunch = Evaporated-gone-kaput-wasted
opportunity to raise ones I2Q/Innovators IQ.

220 lunches = #1*

STRATEGIC Growth
Opportunity?
(*NO KIDDING!)

85
 Fight RHS!
Diversity battlecry:

(Rampant
Homogeneity
Syndrome.)

You will
Diversity/Hang Out Axiom/Billy Cox:

become like the five

people you associate
with the most; this
can be either a
blessing or a curse.
86
 XIV. The Ultimate Truthteller: TIME!
Your calendar never lies.
Your calendar always
knows.
(Do you?????)
The way we spend our time
is our priorities.
The way we spend our time
is our strategy.
The way we spend our time
is what we (really) care
about.
The way we spend our time
is what we are.
87
Your calendar
NEVER lies.
PERIOD.

88
 The Rule of 50 & the Power of Daydreams

Most managers spend a great deal of time

thinking about what they plan to do, but
relatively little time thinking about what

they plan not to do. As a result, they

become so caught up in fighting the fires of the moment that they cannot really
attend to the long-term threats and risks facing the organization. So the first soft
skill of leadership the hard way is to cultivate the perspective of Marcus Aurelius:

Let
avoid busyness, free up your time, stay focused on what really matters.

me put it bluntly: every leader should

routinely keep a substantial portion of his
or her timeI would say as much as

50 percentunscheduled. Only
when you have substantial slop in your
scheduleunscheduled timewill you
have the space to reflect on what you are
doing, learn from experience, and recover
from your inevitable mistakes. Leaders without such
free time end up tackling issues only when there is an immediate or visible problem.
Managers typical response to my argument about free time is, Thats all well and
good, but there are things I have to do. Yet we waste so much time in unproductive
activityit takes an enormous effort on the part of the leader to keep free time for
the truly important things.

89
The Discipline of Daydreaming: Nearly every major decision of my business
career was, to some degree, the result of daydreaming. To be sure, in every case I
had to collect a lot of data, do detailed analysis, and make a data-based argument to
convince superiors, colleagues and business partners. But that all came later.

In the beginning, there was

the daydream.
By daydreaming, I mean loose, unstructured thinking with no particular goal in
mind. In fact, I think daydreaming is a distinctive mode of cognition especially
well suited to the complex, fuzzy problems that characterize a more turbulent
business environment. Daydreaming is an effective way of coping with
complexity. When a problem has a high degree of complexity, the level of detail can
be overwhelming. The more one focuses on the details, the more one risks being lost

Every child knows how

in them.

to daydream. But many,

perhaps most, lose the
capacity as they grow up.

Source: Dov Frohman (& Robert Howard), Leadership the Hard Way:
Why Leadership Cant Be TaughtAnd How You Can Learn It Anyway
(Chapter 5, The Soft Skills of Hard Leadership)

90
 Calendar Query #1

(Precisely)
how are you
going to make
the next 15
minutes
matter?
91
 XV. Civility !
Marissa Mayer keeps execs waiting in place for hours for a meeting she called. (Per
Vanity Fair) Contemptible behavior by any measure.* (*Marissa Mayer has a lot of
company in the less-than-civil-behavior league. But a timely article in VF enraged
meand triggered this twitterant.)

Marissa Mayer keeps execs waiting for hours: Can you imagine Warren
Buffett doing that?
Dave Farley: Astonishingly rude! I gave my former CEOs 15-30 minutes, then Id
leave. If one tolerates rudeness (abuse), it never ends.

No one is so good at what they do to get a bye for rude behavior. Un-productive
doesnt faze me. Un-civil/purposeful incivility turns me purple with rage.

Im quite sure Ms. Mayer has no interest in meeting me. I know I have no interest in
meeting her.

As a 71-year-old, Id prefer my tombstone not say, He made a lot of $$$, but at the
end of the day he was a real shit.

Reading recommendation for Ms. Mayer: Rules of Civil Behavior in Company &
Conversation, by George Washington

Always
My favorite in G.Washingtons book on civil behavior:

stand when someone, junior

or senior, enters the room.
(Im loath to admit itbut sometimes Im distracted and violate this rule. I kick
myself for days. Same with failure to make eye contact.)

Paul Walker: And move out from behind your desk if you have one.

John Grinnell: Civil behavior is called civil for a reason. Its the basis of
civilization. Hard earned, can be lost.

92
Hyper-disciplined Marissa Mayer never keeps outsiders waiting, which makes her
(hence purposeful) behavior toward insiders even more contemptible.

More important to be on
My rule:

time for insider meetings

than outsider meetings.
(Happy insiders yield better
resultswhich makes
outsider meetings easier.)
Internal courtesy sets
Tim Brander:

the tone for external

relationships.
I might be tempted to keep someone waiting, but I would feel the lingering sting of
my mothers roundhouse slap and mend my ways posthaste. Dave Wheeler:

MBMR. Management By
Moms Rules. Good Home Training applied can be a
performance multiplier and persona differentiator.

Richard Branson: Respect is how to treat everyone, not just those

you want to impress.

93
Stretching only a little, Id say sales is easy if you have a reasonably good product
and unreasonably good manners. :-)

We are not a
Vala Afshar:

team because we
work together. We
are a team because
we respect, trust, and
care for each other.
Sunny Bindra: Youre not running late, youre rude and selfish.

Craig Lorne:
Rudeness is lifeblood of forgetting who you serve.
Good CEOs support the customers and staff and value follows.

Horatio Nelson: I
have always been a quarter of an hour before my
time, and it has made a man of me.
Since showing up is 80% of winning the game, we should bless the laties for
making it so easy for us ontimies to win.

(For NFL nuts re this stream, Tom Landry and Bill Walsh were first and foremost
gentleman. Fact: Fits comfortably with fierce competitiveness.)

94
There is a
time and place
for civility. All
the time.
Every place.
Manners =
Respect.
95
M.R.I. most means

respectful interpretation
of what someones saying to you. I dont need
everyone to be best friends, but I need to have
a team with M.R.I. So you can say anything
to anyone as long as you say it the right way.
Maybe you need to practice with, Can you
help me understand why you dont want to do
this or why you wanted to do that. I just
make it so its a human environment.
Robin Domeniconi, CMO. Rue La La, a flash sale web site (from Adam Bryant,
Quick and Nimble: Lessons from Leading CEOs on How to Create a Culture of
Innovation)

The Managers Book of

FYI/Reading recommendation:
Decencies: How Small Gestures Build Great
Companies.Steve Harrison, Adecco

96
 Simple as K.R.P. (No kidding.)

Courtesies of a small and trivial character are the

ones which strike deepest in the grateful and appreciating
heart.Henry Clay, American Statesman (1777-1852)

The above is a STRATEGIC statement.

(40 years of observation and participation say: Biz is lost more through
singular and collective small behavioral slip-ups than
through performance shortfalls.)

K=R=P
Kindness = Repeat Business = Profit.
E.g. 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 interactionsalienating
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

97
interact with them initially in a positive way.Putting Patients First, Susan
Frampton, Laura Gilpin, Patrick Charmel (Griffin Hospital/Derby CT; Planetree
Alliance)
E.g. I regard apologizing as the most magical, healing, restorative
gesture human beings can make. It is the centerpiece of my work with
executives who want to get better.Marshall Goldsmith, What Got You Here
Wont Get You There: How Successful People Become Even More Successful.

Kindness:
Thoughtful.
Decent.
Caring.
Attentive.
Engaged.
Listens well/obsessively.
Appreciative.
Open.
Visible.
Honest.
Responsive.
On time all the time.
Apologizes with dispatch for screw-ups.
Over-reacts to screw-ups of any magnitude.
Professional in all dealings.
Optimistic.
Understands that kindness to staff breeds kindness
to others/outsiders.
Applies throughout the supply chain.
Applies to 100% of customers staff.
Explicit part of values statement.
Basis for evaluation of 100% of our staff.

Kindness WORKS!
Kindness PAYS!
98
 XVI. Politics Is Life. The Rest Is

The definition of politics is: The essence of getting things done.

Politics is the lifeblood of getting ANYTHING done.

If you dislike politics, then you dislike implementation. PERIOD.

Im flabbergasted by anyone not understanding that to get anything done he/she

must pursue/achieve mastery of politics/political process.

If you dislike politics, then it is a dreadful mistake to be in charge of anything.

To hate all politics is to hate the fact that you were born into the human race.

Politics haters are the same ones who tell the jokes about Getting things done
would be a walk in the park if not for the damn people.

Glen Flook: OMG how truelife is a political process.

Emmanuel Gobillot: You are so right. Politics is the engine of power. Dismiss
either and you are dismissing humanitys search for meaning.

The most activist political bodies I know are

families with two teenage kids. Inspiring
aspirations, treachery, etc., etc.
There will always be hierarchy. There will always be politics. The idea is to do it
well and toward an honorable end.

Brian Scatland: Majoring in political science served my business career better than
my MBA.

Read Robert Caros Master of the Senate. LBJ was a Master Scientist of the political
process!

99
Want to save the world? Polio vaccine is useless unless you master the politics of
distribution in an impoverished setting!

A process not based on messy human reality is pie-in-the-sky.

If you dislike politics, then

you dislike implementation.
PERIOD.
If you dislike politics, then it
is a dreadful mistake to be in
charge of anything.
To hate all politics is to hate
the fact that you were born
into the human race.

100
If you give a shit about something, youll automatically go political to gain others
support.

Ive never observed a big company thats not very political. Great NewYorker
article on the new super-companies (Google, et al.); they are fundamentally the
same as old supercos in terms of hierarchy, power plays and power trips, politics.

Who says politics is not rational? An asinine notion. Its political process, but
rational if you are a student of politics. If youre not, then leading anything is the
wrong career choice.

Politics = Life:

Good restaurants.
Bad restaurants.
Good politics.
Bad politics.

Yawn.

101
Im flabbergasted
(careful word choice)
by anyone not
understanding that to
get anything done
he/she must
pursue/achieve
mastery of
politics/political
process.
102
 XVII. Meetings EXCELLENCE

Like it or lump it: Meetings are what bosses do. Get over it. Act
accordingly.

Will (this meeting)

THE meeting issue for boss/chair is:

be a Model of Excellence?
Excellence standard applies as
much to a meeting as to
ballet/football.
Theater is event. Football game is event. Surgery is event. And meeting is event. Its
up to you whether the standard is mediocrity or excellence.

Meeting: Theater of inquiry and persuasion and motivation and engagement and
enhanced teamwork.

Boss: If staff leaves morning meeting less than inspired then you pissed
the day away due to gross negligence.

Boss: Only ONE key word concerning EVERY meeting.

PREPARATION.
Grade yourself on meeting prep today. Be tough. Odds of 4.0 GPA low.

103
Meetings = #1 leadership opportunity. PERIOD.

Every meeting that does not stir the

imagination and curiosity of attendees and
increase bonding and cooperation and
engagement and sense of worth and motivate
rapid action and enhance enthusiasm is a
permanently lost opportunity.
The key word is NOT control. The keyword IS Excellence.

Does your organization have

a full-fledged training
course titled Conducting
Excellent Meetings? If not,
why not?
I am not in the least bit interested in better/well run meetings. I am interested in
EXCELLENT meetings. For heavens sake, why not?

Scheduling is your personal responsibility. A failing grade almost guarantees failing

longterm performance.

Over-scheduling is a mortal,
not venial, sin.
104
I am not in the least
bit interested in
better/well run
meetings. I am
interested in
EXCELLENT
meetings. For
heavens sake,
why not?

105
 XVIII. Email Excellence (Why Not?)
17 January 2014: Thank you Chris Christie: Anyone who puts anything in any
email that might embarrass him/her next week, next month, in 2024, is an
IDIOT.

A sloppy* email is a total piece of

crap. STOP!
(*Sloppy: Ungrammatical. Poorly argued. Equivocalcould be interpreted multiple
ways. Flippantly critical of someone/anyone. Rude. Etc. Etc. I.e., unprofessional.)

On The Ball Theory: Write, rewrite, wait, and then sendthe modern version of
think before you speak!

Assume your bosss boss will read any

email you write.
Assume your least supportive colleagues
will read any email you write.
Assume one or > one customer will read
any email you write.

106
Assume that any clever email you
write will go viral.

(Assume your mom will read any email

you write. Sorry, couldnt resist.)

Medieval times (1999): Oral hissy fit would mostly evaporate in 4-5 days. Modern
times, no matter how limited the distribution, it may go viral.

Hasty emotional response is the nightmare scenario!

Same rules for personal emails as professional ones. Personal emails frequently
are not personal.

EMAIL.
EXCELLENCE.
Make this duo a tautologynot an oxymoron.

107
 XIX. The Response Is The Problem

I call it Service Rule #1A

The problem is
rarely/never the
problem. The
response to the
problem invariably
ends up being the
real problem.*
*This sounds like an exaggeration. It is NOT. From screwed-up U.S. presidencies
to losing multi-billion-$$ sales, it seems invariably to be a clumsy response to
something (initially) relatively small that sets in motion a full-fledged meltdown.

108
 Service Rule #1B
The 3-minute Rule
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.*
*So make the call. Set aside, in an organized fashion, a time block to make such calls.

109
 Service Rule #1C
Employees FIRST!
David Spellman:

Customers
will only love
a company
that loves its
employees.
110
 My corollary is,
BCMac:

How we treat one

another is ultimately
how we treat the
clients.
Ive always said
Vala Afshar:

You cant remain a

great company on the
outside if you arent
one on the inside.
NOT
TP/FYI: This is guru bullshit. This is hard-nosed fact.

111
 Service Rule #1D
ADDICTED to Helping
Twitter comment: If a window of opportunity opens, do not pass it by or close it.

There is no if: A window of opportunity opens

EVERY day for

EVERY
out, unbidden, for 10 minutes.
one of use.g., helping someone

If you dont help someone out in some little way every day (at work) you are only
half a human.

Instinctively helping others at work (little hand on

little thing) is the single best builder of a
positive/people-centric/customer-centric culture.

Helping (on every dimension and throughout our community of stakeholders) is

not soft. It is the core of a profit-maximizing STRATEGY.

Stuff like listening and helping are the core of STRATEGY. (Not mere tactics.)

112
Doug Shaw: I have a few key principles I operate by. Offering help is
the first one. Thats where it all starts.
(Doug Shaw: Heres the full set. Offer help. Experiment. Stay in touch. Speak your
mind. Lead by example. Be genuinely interested in people.)

Helping someone out is not nice; as a practice, it

is a CSA/Core Strategic Asset.
Vala Afshar: If you are not helpful, you are not influential.

Patricia Martin: Small stuff done well breeds confidence and opens field of
possibilities, too.

Were looking to establish a full-fledged

ADDICTION
(to helping).

Excellence is fun. Small stuff is more important than big stuff to make it habit-
forming & spread the contagion.

Practice of Excellence: ALL MOTIVATION IS

SELF-MOTIVATION. PERIOD.
(Boss just creates a platform, offers encouragement.)

A social business feels like a village

Vala Afshar:
people know your name, doors are open late, lights
are always on, and people care.
Frankly, thats why its [a social business] not an engineered system, but a
way of being

113
If you dont
help someone
out in some (little)

way every day

(at work) you are

only half a
human.*
*Intentionally strong language!

114
 XX. Christmas Thank You Chronicles

PLEASE consider this. Monday 23rd [December, 2013] or Fri 27th or Mon 30th or

Tues 31st: CALL 10-50

em for their support in 2013.
people to thank

The two most important words in a leaders language:

Acknowledge &
Appreciate.
ass off on acknowledgement/appreciation.
So at years end work your

21 Dec/I have decided to bug you every day until New Years Eve to CALL 10-50
people to thank them for their support in 2013.

David Ivers: It works well Tom! I personally delivered to the 14 people on my team
a handwritten Christmas Card with a small Lindt Chocs box.

21 Dec/Christmas gift from you today. If shopping, be especially courteous to

grouches and smile at stressed-out staff even if service is sub-par.

21 Dec/Best Christmas gift Ive heard of this year: Customer brings a cup of coffee
mid-morning to our beleaguered local postal clerk.

21 Dec/If, like many of us, youre shopping today, enjoy the madness. Engage the
madness in the spirit of Christmas.

21 Dec/Saturday before Christmas. Cherish the madness. Youre only here for a
little while.

115
21 Dec/ Be present today.
greatest gift you can give.
Its the

21 Dec/The worse your voice, the more vigorously you should sing the Carol. Its
about spirit, not 6-sigma quality.

21 Dec/Pop into a church and light a candle for someone sick today. (Even if you are
a strict non-believer.)

21 Dec/Make those calls to thank people for their support. Promise: You will
enjoy it immensely. (We all need a kick in the ass. Once you start, youll really
get off on it.)

On your advice, Ive been doing

21 Dec/John Barnes:

this for 3 years, always one of the professional

highlights of the year.
Dave Wheeler: And spend a few words/seconds to thank your frontline team

individually and personally! Cost minimal. ROI monstrous!

21 Dec/Dave: Cost < 0 because it ends up making you feel good at least as much as
recipient!

21 Dec/Nosy me. Asked grocery checkout person how many say Happy Holidays.
She said probably 1 in 4 or 5, less by late afternoon.

21 Dec/Real key is making kind comment WITH EYE

CONTACT. Otherwise the gesture is diminished by three-quarters.
Trevor Gay: Best gift Ive had this Christmas was the chat I had with the homeless
guy when I took my dog for walk today. Feel blessed.

Monday 12/23: Go on a Thank you binge. DAMN IT.

The degree to which the average analytically trained businessperson fails to
appreciate TYP/Thank You Power is staggering/pathetic.

116
If you feel awkward
saying Thank
you, its because
you havent practiced
enough.

117
If you feel awkward saying Thank you, tell the person you are thanking that you
feel awkward. Zounds. The credit you will get.

Can you say Thank you too much?

Doubtless, yes. But in the human
races first 60,000 or so years, no one
has overdone it so far.
I worry about Syrian civil war & 7,999,999 other things. That people will say thank
you too much didnt make my Top 8,000,000 Worries list.

Steve Pfistner: Ah, the joy of affirming another fellow humanoid.

Affirming another humanoidLove it!

Handwritten notes make me weak in the knees.

An almost guarantee: Even if your

first Thank yous seem forced, the
response will be so overwhelming
that youll soon be in the groove.
At the very least, you can do a Hey, thanks, bro, somehow we survived another
year.

Mike Ferguson: Youre saying I have to make a call, not email, right? I thought so.
Okay okay okay.

Ever heard the phrase Bet your sweet ass?

118
 This is one of those things that I just
Cindy Starks:

dont understand. Ive tried. Why is it so hard

for people to say Thank You or Thanks?
I am as befuddled as you are.

Drew: The importance of Thank you is drilled into children, yet often lost on adults.
Its something I had to relearn.

Jeff Hathaway: Things like Thank you should be on the list called assumptions,
especially for leaders. Maybe why the future is brighter for Women?

John Hinton III: I always say Please and Thank you. You never know what type
of day someone is having. Best way to convey appreciation.

#1 reason
John Wheaton (engineering chief):

engineers leave biz is

they are not
appreciated.
Damn right, John. We engineers are human, too. :-)

119
John Wheaton: Say [Thank you] in Monday meetings. Say it on rounds. The more
you say it the easier it is.

Catherine Huggins: Expressing thanks is just another way of acknowledging life is

bigger than any one individual.

Lisa Rokusek: Often it takes the doing of gratitude to ignite the feeling. We cant let a
lack of feeling stop us from grateful actions.

Lars Leafblad (fundraiser): The five seconds of silence I experience when I call a
donor for no other reason than thank you is deafening!

In my experience the
Trevor Gay:

most well received Thank

you is one for doing your
routine task.
Amen!!!!!!!! My version: No one ever has an average day. Theres always
something worth noting.

The Power of Thanks is well supported by science, too:

http://news.harvard.edu/gazette/story/2013/03/the-power-of-thanks/

120
 XXI. The (Awesome) Power of
Acknowledgement

The deepest principle in human nature is the craving to

be appreciated.William James

The two most powerful things in existence: a kind word

and a thoughtful gesture.Ken Langone

Good leaders make people

feel that theyre at the very
heart of things, not at the
periphery. Warren Bennis

Leadership is about how you make people feelabout

you, about the project or work youre doing together,
and especially about themselves.Betsy Myers, Take the Lead:
Motivate, Inspire, and Bring Out the Best in Yourself and Everyone Around You

The philosopher Isaiah Berlin remarked that Churchill

idealized his countrymen with such intensity that in the
end they approached his ideal and began to see
themselves as he saw them.Robert Kaplan, Warrior Politics: Why
Leadership Demands a Pagan Ethos

121
Employees who
dont feel significant
rarely make
significant
contributions.
Mark Sanborn

122
 Night and Day: Yes, AND

Yes, but

(= Thanks for the comment and here is whats

WRONG with it MIXED MESSAGE/
NEGATIVE)

Yes, and
(= That was a terrific comment, AND perhaps we
could even go farther POSITIVE)

FYI: This is a BIG DEAL.

123
The (Awesome) Power of Acknowledgement:
NOTEBOOK Power
Whenever you are interviewing or meeting with someone carry (without
fail) a notebook.
Take notes.

To be sure, youll doubtless hear something worth recording. But, mainly

(without fail) you will gain the enduring respect of the person you are
interacting with.

Why?

I think
By recording their ideas you are saying, in effect,

you have something

to say worthy of
recording and I wish
to capture it for
eternity.
124
Always carry the notebook. Take copious notes. Record info. AND: Its the ultimate
form of flattery/acknowledgement/respect.

Joel Heffner/ Creativity Kit: Field Notes

Notebook + Pencil
Stefan Stern: The bosses who dont take notes may also be the ones who say Got
it! too quickly when in truth they arent really listening.

Sachin Shah: I got our EOs asst to take notes in her meetings so she could listen.
She estimated $50k gain in her productivity.

In your last
Note to bosses:

conversation with an
employee, how many
pages of notes did
you take?
(Query to bosses: In your last conversation with an
employee, did you listen at least 75% of
the time?)

125
XXII. Listening Is Job #1/Make 2014
The Year of the Ear
REALLY: Nothing but nothing but nothing is more important than listening! I will
have to admit that the next three pages are not from a tweetstream. Its just that I
cant publish any paper without making my STRATEGIC listening plea.

Listening is ...
(And when you read listening, please substitute OBSESSION with listening.)

Listening is ... the ultimate mark of Respect.

Listening is ... the heart and soul of Engagement.
Listening is ... the heart and soul of Kindness.
Listening is ... the heart and soul of Thoughtfulness.
Listening is ... the basis for true Collaboration.
Listening is ... the basis for true Partnership.
Listening is ... a Team Sport.
Listening is ... a Developable Individual Professional Skill.*
(*Though women are instinctively far better at it than men.)
Listening is ... the basis for Community.
Listening is ... the bedrock of Joint Ventures that work.
Listening is ... the bedrock of Joint Ventures that last.
Listening is ... the core of effective Cross-functional Communication.*
(*Which is in turn Attribute #1 of organizational effectiveness.**)
(**I know, I keep repeating thisonly because Attribute #1 is no exaggeration.)
Listening is ... the engine of superior EXECUTION.
Listening is ... the key to making the Sale.
Listening is ... the key to Keeping the Customers Business.
Listening is ... the engine of Network development.
Listening is ... the engine of Network maintenance.
Listening is ... the engine of Network expansion.
Listening is ... Learning.
Listening is ... the sine qua non of Renewal.
Listening is ... the sine qua non of Creativity.
Listening is ... the sine qua non of Innovation.
Listening is ... the core of taking Diverse opinions aboard.

126
FYI:Harvard Med School doc
Jerome Groopman, in his book
How Doctors Think, tells us that the
patient is the doctors best source of
evidence about the patients
problem. Then, citing hard-nosed
research, Groopman asks, On
average, how long does the patient
speak before the doc interrupts?

Answer?

18 seconds.

127
Our work, our
relationships, and, in
fact, our very lives
succeed or fail
gradually, then
suddenlyone
conversation
at a time.
Source: Susan Scott, Fierce Conversations: Achieving Success at Work and in Life,
One Conversation at a Time

128
Listening is ... Strategy.
Listening is ... Source #1 of Value added.

Listening is ... Differentiator #1.

Listening is ... Profitable.*
(*The R.O.I. from listening is higher than from any other single activity.)
Listening underpins ... Commitment to EXCELLENCE.

Do you agree with the above?

(Frankly, thats a set-up question. How could you not agree?)
(I hope.)

If you agree, shouldnt listening be ... a Core Value?

If you agree, shouldnt listening be ... perhaps Core Value #1?*
(* We are Effective Listenerswe treat Listening EXCELLENCE as the
Centerpiece of our Commitment to Respect and Engagement and Community and
Growthor some such.)
If you agree, shouldnt listening be ... a Core Competence?
If you agree, shouldnt listening be ... Core Competence #1?

******************************

Shouldnt listening be Core Competence #1?

******************************

If you agree, shouldnt listening be ... an explicit agenda item at every Meeting?
If you agree, shouldnt listening be ... our Strategyper se? (Listening = Strategy.)
If you agree, shouldnt listening be ... the #1 skill we look for in Hiring (for every
job)?
If you agree, shouldnt listening be ... the #1 attribute we examine in our Evaluations?
If you agree, shouldnt listening be ... the #1 skill we look for in Promotion decisions?
If you agree, shouldnt listening be ... the #1 Training priority at every stage of
everyones careerfrom Day #1 to Day LAST?

If you agree, what are you going to do about it ... in the next 30 MINUTES?
If you agree, what are you going to do about it ... at your NEXT meeting?
If you agree, what are you going to do about it ... by the end of the DAY?
If you agree, what are you going to do about it ... in the next 30 DAYS?
If you agree, what are you going to do about it ... in the next 12 MONTHS?

129
Its amazing how this seemingly small
thingsimply paying fierce attention to
another, really asking, really listening,
even during a brief conversationcan
evoke such a wholehearted response.
Susan Scott, Fierce Conversations: Achieving Success at Work and in Life One
Conversation at a Time

Let Silence Do the Heavy Lifting

chapter title from Susan Scott, Fierce Conversations: Achieving Success at Work
and in Life One Conversation at a Time

There is a profound difference between

having a title and being someone to
whom people commit at the deepest level. If
we wish to accomplish great things
in our organizations, we must come to
terms with a basic human need: a universal
longing to be known.Susan Scott, Be Here, Be Prepared to
Be Nowhere Else, chapter title, Fierce Conversations: Achieving Success at Work
and in Life One Conversation at a Time

130
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

131
Suggested addition to your statement of Core

We are Effective
Values:

Listenerswe treat
Listening
EXCELLENCE as
the Centerpiece of
our Commitment to
Respect and
Engagement and
Community and
Growth.
132
 Nothing
Mikael Pawlo/tweet:

beats eye-to-eye or
ear-to-ear. Asking
questions and
listening with a smile
is raw power.
TP: Amen.

133
8 of 10 sales presentations fail

50% failed sales

talking
presentations:
at before
listening!
Source: Susan Scott, Let Silence Do the Heavy Listening, chapter title, Fierce
Conversations: Achieving Success at Work and in Life, One Conversation at a Time

134
 The Good Listeners Rules

Exists totally for the given conversation. There

is nothing else on earth
of importance for those 45 minutes.

To co-opt a great book: fierce attentiveness.

(Susan Scott, Fierce Conversations)

Keep your f-ing mouth shut.

Gives the other person time to stumble toward clarity

without interruption.
NEVER finishes the other persons sentence.

Becomes invisible; make the other person the centerpiece.

Do not EVER take a call, even from your boss.

Takes (extensive) notes.

Calls (emails) a couple of hours later to thank the other for

their time.
Calls the next day with a couple of follow-up queries.

Leaves it mostly open-ended; does not conclude with your view of the world.

Doesnt pontificate for even 17 seconds!

Tom Asacker: It
doesnt matter what people think about you.
Rather how you make them feel about themselves in your
presence.
TP: Stunningly well said.

135
 I always write
Manager, from Twitter:

LISTEN on the
back of my hand
before a meeting.

EVERYONE has a
story to tell, if only
you have the patience
to wait for it and not
get in the way of it.
Charles McCarry, Christophers Ghosts

136
 Listening-as-PROFESSION

I consider bosses of units > 25 employees with no

FORMAL
substantial

LISTENING TRAINING
to be guilty of dereliction of duty.

Simply put, I think many people

Tim Baker:
underestimate the effort proper listening requires.

If you aint exhausted [after a serious conversation],

then you werent really listening. (That
is not a throwaway line.)

Really listening is literally

the most exhausting activity
I knowthat includes
vigorous physical activities.

137
Saurabh Gupta: Not only effort but concentration as well.

John Morrison: Its not listening; its absorbing ...

TP: [Listening is] a lotta stuff. Acknowledging is a good part of the

definition, too.

Trevor Gay: I've a friend-mental health counselor; if he sees 3 patients a day he is

exhausted & its TOO BUSY.

David Spellman: I taught a management class yesterday

on 5 levels of listening: Ignoring,
Pretending, Selective, Attentive, and
Empathic. KEY skill set.

TP: Bravo!
A few years ago [I] co-authored book
Cary Cooper:
titled Shut Up & Listen!

TP: Bravo!
House of Faith (Twitter I.D.): Listening is a lost art today. The ability to talk over
another is prized. Loose lips still sink ships!

138
Tim Baker: There are those who listen and there are those who are just waiting to
talk (again) (and again).

Preparing retort while another talking = Anti-listening.

McKinsey (in my time): ZERO interest in topic per se, 100% prepping to demo
intellectual horsepower w/ a clever retort.

Susan Cain addresses this brilliantly in her book Quiet. (Alas,

research clearly indicates we evaluate the talk
over types as smarter. More fools us ) !

Then there's my motto: 100% of

communication failures are my
fault. (It is up to me as communicator to figure out how to be effective in
communicating with any given person in the immediate context of the exchange
e.g., theyre having a bad day, good day, etc.)

FYI, if you do public speaking, listening to your audience is still skill #1. I bet I

make 200 adjustments in a 1-hour speech based on what I hear.

Rich McDonald: DITTO! Its why I dont memorize ANY scientific presentations;

& listen to their

I listen to audiences words

eyes/grunts/hand gestures/posture.

139
Key word (re listening):

PRACTICE!
Effective listening is a

PROFESSION!
Its no different than neurosurgery or particle
physics. Study and practice and refresh
accordingly.

Professional Skill #1 for

every leader is

LISTENING! (Does 1
b.school in 20 teach it as a full-blown core course?)

140
B.School: 3 finance courses, 3 accounting
courses, 3 marketing courses,

ZERO listening courses.

IMPEACH the Dean/s!
No listening course at your b.school?
Demand a full tuition refund with
interest plus a letter of apology
signed by the dean.

When have managers ever been trained to

Cary Cooper:
be on receive rather than transmit? Our
B.Schools dont teach it, neither do exec
programs!

: Forget a course on listening, why

Edward Nevraumont
not start with a class? Most B.Schools throw their
hands in the air on Leadership in general.

141
All generals, admirals, and
CEOs should attend a
listening refresher course
annually!
(Margot Durkin: And school principals, too!)

The soft skills are

Chris Oestereich:

anything but!

EVERY boss needs a NBB/

No Bullshit Buddy

to give him/her* regular feedback on listening

behavior. (*FYI: Evidence and anecdote both crystal

clear: WOMEN are, indeed, better

listenersand, yes, more often than not better
leadersthan men.)

142
Trevor Gay: I once had a boss who regularly

Have you
asked me;

given your
team a good
listening to
lately?
(Last word: A key reason In Search of Excellence was successful: Bob
Waterman was/is a peerless listener!)

143
 LISTENING Redux: Quiet, Please!
We live with a value system that I call the Extrovert Idealthe omnipresent belief
that the ideal self is gregarious, alpha, and comfortable in the spotlight. The
archetypal extrovert prefers action to contemplation, risk-taking to heed-taking,
certainty to doubt. We think that we value individuality, but all too often we
admire one type of individual Introversion is now a second-class personality trait.
The Extrovert Ideal has been documented in many studies. Talkative people, for
example, are rated as smarter, better looking, more interesting, and more desirable
as friends. Velocity of speech counts as well as volume: We rank fast talkers as more

But we make a
competent and likeable than slow ones.

grave mistake to embrace the

Extrovert Ideal so unthinkingly. As the
science journalist Winifred Gallagher writes, The glory of the disposition that stops
to consider stimuli rather than rushing to engage with them is its long association
with intellectual and artistic achievement. Neither E = mc squared or Paradise Lost
was dashed off by a party animal. Even in less obviously introverted occupations,
like finance, politics, and activism, some of the greatest leaps forward were made by
introverts figures like Eleanor Roosevelt, Warren Buffett and Gandhi achieved
what they did not in spite of, but because of their introversion.Susan Cain,
Quiet: The Power of Introverts in a World That Cant Stop Talking

If you are a manager, remember

that one third to one half of your
workforce is probably introverted,
whether they appear that way or not.
Think twice about how you design your organizations office space.
Dont expect introverts to get jazzed up about open office plans or, for
that matter, lunchtime birthday parties or teambuilding retreats. Make
the most of introverts strengthsthese are the people who can help you
think deeply, strategize, solve complex problems, and spot canaries in
your coal mine.

144
Also remember the dangers of the new groupthink. If its creativity
youre after, ask your employees to solve problems alone before sharing
their ideas Dont mistake assertiveness or elegance for good ideas. If
you have a proactive workforce (and I hope you do), remember that
they may perform better under an introverted leader than under an
extroverted or charismatic one.Susan Cain,
Quiet: The Power of Introverts in a World That Cant Stop Talking

The next time you see a

person with a composed face
and a soft voice, remember
that inside her mind she
might be solving an
equation, composing a
sonnet, designing a hat. She
might, that is, be deploying
the power of quiet. Susan Cain, Quiet:
The Power of Introverts in a World That Cant Stop Talking

145
 XXIII. The BIG THREE

Do?
What do we (actually)

TALK. (Present.)

LISTEN.
WRITE.
Why have we most likely never studied the first
two* (*especially #2/Listening), and probably not
studied the third since high school?

Anybody up for MASTERY?

146
The Big Three Plus ONE: Body Language RULES
So: PAY ATTENTION.
(Damn it.)

Research indicates the pitch, volume, and

pace of your voice affect what people think you

said about five times as much as the

actual words you used.Stanford Business/Spring 2012/on the
work of Prof. Deborah Gruenfeld

[Professor Linda Gruenfeld] pulls bits and pieces from

her brain in order to persuade her audience with rational
arguments. Yet her research tells herand youthat it
isnt the quality of her arguments that will persuade
people. It is, rather, how she conveys it. Your status, she
says, is determined by physical attributes and nonverbal
cues. People decide if you are competent in less than 100
milliseconds.Stanford Business/Spring 2012

I know that everything I do in the hallway is more

important than anything I say in the meeting.
CEO/telecom company, in Carol Kinsey Goman, The Silent Language of Leaders:
How Body Language Can Helpor HurtHow You Lead

147
Mandela, a model host [in his prison hospital
room] smiled grandly, put [Justice Minister Kobie]
Coetzee at his ease, and almost immediately, to their
quietly contained surprise, prisoner and jailer found
themselves chatting amiably. [It
had mostly]
to do with body language, with the
impact Mandelas manner had on
people he met. First there was his
erect posture. Then there was the
way he shook hands. The effect was
both regal and intimidating, were it
not for Mandelas warm gaze and his
big, easy smile. Coetzee was surprised by
Mandelas willingness to talk in Afrikaans, his
knowledge of Afrikaans history. Coetzee: He was a
born leader. And he was affable. He was obviously well
liked by the hospital staff and yet he was respected even
though they knew he was a prisoner.John Carlin, Playing the
Enemy: Nelson Mandela and the Game that Made a Nation (Mandela meets
surreptitiously with justice minister after decades in prisonand turns on the
charm.)

148
Albert Mehrabians (directional) 7-38-55 Rule* **

Your words: 7%
Your tone of voice:38%
Your body language: 55%
*7% of message pertaining to feelings and attitudes is in the words that are spoken.

38% of message pertaining to feelings and attitudes is paralinguistic (the way that
the words are said).

55% of message pertaining to feelings and attitudes is in facial expression.

(**WARNING: This research is somewhat controversial.)

149
 XXIV. The 50 Have Yous
While waiting in the Albany airport to board a Southwest Airlines flight to Reagan one
morning, I happened across the latest Harvard Business Review, on the cover of
which was a bright yellow lead article sticker. On it were the words Mapping your
competitive position. It referred to a feature article by my friend and admired
colleague Rich DAveni.

Richs work is uniformly goodand I have said as much publicly on many many
occasions dating back 15 years. Moreover, Im sure this article is first-rate, too
though I admit 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
invariably have us do, I instead wondered about some practical stuff, which I believe
is far, far more important to the short- and long-term strategic health of the
enterprise, tiny or enormous.

Hence, rather than an emphasis on competitive maps or looking for a blue ocean
(empty space, per the popular book Blue Ocean Strategy), I urge you to pay attention
to my 50 Have Yous, as I call them. The list could easily be three times as longbut
this ought to keep you occupied for a while. Of course, the underlying hypothesis is
that if you proactively do the small stuff below, your competitive position will
improve so much that mapping will become a secondary issue!

Herewith:

1. Have you called a customer ... TODAY?

2. Have you in the last 10 days ... visited a customer?
3. Have you in the last 60-90 days ... had a seminar in which several folks from a key
customers operation (different levels, different functions, different divisions)
interacted, via facilitator, with various of your folks? (Goal: Fully integrates us with
our key customersand makes it clear we want to get to know them on all levels.)
4. Have you thanked a front-line employee for a small act of helpfulness ... in the last
three days?

150
5. Have you thanked a front-line employee for a small act of helpfulness in the last ...

THREE HOURS?
6. Have you thanked a front-line employee for carrying around a great attitude ...
TODAY?
7. Have you in the last week recognizedpubliclyone of your folks for a small act
of cross-functional cooperation? (Small, social acts enhancing cross-functional
bonding may be my Obsession #1.)
8. Have you in the last week recognizedpubliclyone of their folks (another
function) for a small act of cross-functional cooperation with your gang?
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. Pity.)
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

Boss as
specifically you can do to remove a hurdle? (

CHRO, Chief Hurdle

Removal Officer. Peter Drucker: Ninety percent
of what we call management is doing things that make it more difficult to get
things done.)
13. Have you celebrated in the last week a small (or large!) milestone reached?
(I.e., are you a milestone fanatic? Are you a celebration fanatic?)
14. Have you in the last week or month revised some estimate in the wrong
direction (i.e., acknowledged that things were more problematic than previously
estimated) and apologized for making a lousy estimate? (Somehow
or other
you must publicly reward the telling of difficult truths
and the reporting of bad news.)
15. Have you installed in your tenure a very comprehensive customer satisfaction
scheme for all your internal customers? (With major consequences for hitting or
missing the mark.)
16. Have you in the last six months made a week-long, visible, very intensive visit-
tour of external customers operations?

151
 Have you in the last 60 days called an abrupt
17.
halt to a meeting and ordered everyone to get
out of the office and into the field immediately
with the order to fix (f-i-x, finito!) some/any
nagging small problem through immediate
practical action?
18. Have you in the last week had a rather thorough discussion of a trivial cool
design thing someone has come acrossaway from your industry or your
functionat a website or in a product or its packaging? And do you urge/insist that
everyone (every one) be on the lookout for, bring in, and present incredibly cool
stuff Ive found from everyday life?
19. Have you in the last two weeks had an informal meetingat least an hour
longwith a front-line employee to discuss things we do right, things we do
wrong, and What would it take to turn this job into something approaching their
dream job?
20. Have you in the last 60 days had a general meeting to discuss things we do
wrong ... that we can fix in the next 14 days? (With follow-up exactly 14 days later.)
21. Have you had, in the last year, a one-day, intense offsite with each of your
principal internal customersfollowed by a substantial celebration of things gone
right on both parties parts?
Have you in the last week privately pushed
22.
someone to do some family thing that you fear
might be overwhelmed by internal deadline
pressure?
23. Have you learned the names of the children of everyone who reports to you? (If
not, you have 30 days to fix it.)
24. Have you taken, in the last month (two weeks?), an interesting-weird outsider to
lunch? And, do you keep careful track of weirdo lunches?

Have you in the last month invited

25.

an interesting-weird outsider to sit

in on an important meeting?
26. Have you, in the last three days, discussed in a meeting something interesting,
beyond your industry, that you ran across while reading, etc.? (This means more
than an email from you with a cyberlink or two.)
27. Have you in the last 24 hours injected into a meeting I ran across this
interesting idea in (strange place)?

152
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 situation
restaurant, car wash, etc.? (And then discussed the relevance to your workand
then implemented on-the-spot some little thing from what they learned?)

Have you in the last 30 days

29.

examined in detail (hour by hour)

your calendar to evaluate the degree
to which time actually spent
mirrors your espoused priorities?
(And repeated this exercise with everyone on the team.)
30. Have you in the last two months had a presentation to your group by a weird
outsider?
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/customer/internal customer organization (and in your organization)?
32. Have you in the last two months had a presentation to the group of a cool,
beyond-our-industry idea by two of your folks?
33. Have you at every meeting today (and forevermore) redirected the conversation
to the practicalities of implementation concerning some issue before the group?
34. Have you at every meeting today (and forevermore) had an end-of-meeting

discussion on action items to be dealt with in the next 4, 24,

48 hours? (And then made this list publicand followed up in 4 or 24 or 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 a local-national poll of best places to work?
36. Have you in the last month approved a cool-different-very different training
course for one of your folks?
37. Have you in the last month taught a front-line training course?

153
 Have you in the last week
38.

discussed the idea of

Excellence per se? (What it means, how to get
there, concerning a current project.)
39. Have you in the last week discussed the idea of

Wow?
into an ongoing routine project.)
(What it means, how to inject it

40. Have you in the last 45 days assessed some major internal process in terms of the
details of the experience, as well as results it provides to external or internal
customers?
41. Have you in the last month had one of your folks attend a meeting you were
supposed to go to, which therefore gives them unusual exposure to senior folks?
42. Have you in the last 60 (30?) (15?) (7?) 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.)

154
 Have you ... in the last
45.

week ... looked around you

(eyeballed) to assess
whether the diversity of the
group pretty accurately
mirrors the diversity of the
market being served?
(And began to act on the disparity, if it exists?)
46. Have you in the last day at some meeting gone out of your way to make sure that
a normally reticent person has been engaged in a conversationand then thanked
him or her, perhaps privately, for their contribution?
47. Have you in the last four months had a half-day, full-team session specifically
aimed at checking on the corporate culture and the degree we are true to itwith
(And with
presentations by relatively junior folks, including front-line folks?
a determined effort to keep the conversation restricted
to real world small casesnot theory.)
48. Have you in the last six months talked about the Internal Brand Promisei.e.,
what you and the organization promise to employees in terms of respect and growth
opportunities?
49. Have you in the last year had a full-day off-site to talk about individual (and
group) aspirations?

50. Have you called a customer ... TODAY?

(51. Have you mapped your competitive position since you finished this checklist?
Now its okay to do.)

155
 Have You ... Started?
Obviously I hope youll use this list. Perhaps as follows:

(1) Circulate to your team.

(2) Agree on no more than a half-dozen items to act as a Starter Action List.

(3) Pick ONE item.

(4) Do it TODAY.
(5) Repeat once a week.

156
 XXV. 2013-14/New Years Week

This week you get a twofer. An ending and a beginning. Beginnings and
endings are all-important. Act accordingly.
As year closes, emphasize that we are a team moving forward. Use the word

We per se until youre blue in the face.

Bosses. This week collect folks 2013 stories. With mouth mostly shut, ears open,
encourage energetic commitment to personal growth in 2014.

Good or not so good results, most folks have done their bit to contribute. Show your
appreciation this week.

Pope Francis has made an enormous impact

on an enormous institution with his way of
being. Apply to your wee corner of the world
this week.
Bad year? It happens. Be a paragon of grace and thoughtfulness.

Good year or not so good year, end it on a high with an un-showy show of energy
and enthusiasm and appreciation and joie de vivre.

Make 2014 the year of committed servant leadership.

2014: Thought for those NOT Every

in formal leadership slots:

day, on or off the job, offers up a plethora of

leadership opportunities! Go for it!

157
May each and every one of
those you are privileged to
lead have a 2014 marked by
accomplishment and growth.
Make 2014 the year of
committed servant
leadership.

158
Thought for 2014 for those not in formal leadership

Every day, on or
slots:

off the job, offers

every one of us a
plethora of
leadership
opportunities!
Go for it.

159
 XXVI. Criticism, (Severe) Limits Thereto

Criticism poorly given rarely leads to

Remember:

correction. It leads to evasionavoiding the

task in the future.
Joel Heffner: Coaching is like walking on eggs; any dope can criticize.

Try Ed Scheins book Helping: How to Offer, Give, and Receive Help.

Helping is far more

delicate than
neurosurgery!
Vala Afshar: Most people will do better work and put greater effort under a spirit
of approval than under a spirit of criticism.

Wendy Maynard: Positivity goes a long way, as does asking people what they think
went well.

Wendy Maynard: Theres just been too much emphasis in management about
constructive criticism; it can easily be abused.

Rich McDonald: Why many bosses stinkthey watch too many military movies
and forget that in-your-face degrading remarks never work for anyone.

Most people were criticized unfairly

Wendy Maynard:

as kids. As managers, they simply repeat the

bad patterns.

160
 XXVII. E xcellence
Remember (per me): Excellence is not an aspiration. Excellence is the next five
minutes. Or not.

John Miller: You are only 5 minutes max away from Excellence.

Excellence is not a
culture. Excellence is your
next email or
IM or 30-second chance
meeting in the hall.
If you are a big cheese, Excellence that translates into $$$ is about your interactions
during the elevator ride to the top floor.

If ever there were a day for Excellence via MBWA, its tomorrow [12/31/13].

Remember, Excellence is the work that gets done on the real or metaphorical lower
floors. Camp out there this week.

Vala Afshar: The Foundation of Excellence is:

Grace
Dignity
Humility
Grit
Optimism

161
 NOT a goal.
Excellence is
Excellence IS a way of life.
Or not.

Excellence is NOT an
institutional choice.
Excellence IS a personal choice.
Or not.

Excellence is NOT an
aspiration.
Excellence IS the next 5 minutes.
Or not.

162
Excellence is
not an
aspiration.
Excellence is
the next five
minutes.
Or not.
163
EXCELLENCE is not an aspiration.
EXCELLENCE is THE NEXT FIVE MINUTES.

EXCELLENCE is your next conversation.

Or not.
EXCELLENCE is your next meeting.
Or not.
EXCELLENCE is shutting up and listeningreally listening.
Or not.
EXCELLENCE is your next customer contact.
Or not.
EXCELLENCE is saying Thank you for something small.
Or not.
EXCELLENCE is the next time you shoulder responsibility and apologize.
Or not.
EXCELLENCE is waaay over-reacting to a screw-up.
Or not.
EXCELLENCE is the flowers you brought to work today.
Or not.
EXCELLENCE is lending a hand to an outsider whos fallen behind schedule.
Or not.
EXCELLENCE is bothering to learn the way folks in finance (or IS or HR) think.
Or not.
EXCELLENCE is waaay over-preparing for a 3-minute presentation.
Or not.
EXCELLENCE is turning insignificant tasks into models of EXCELLENCE.
Or not.

164
Q: Mr. Watson [CEO/IBM],
how long does it
take to become
excellent?
A: One minute. That

is how long it takes

you to decide to never
again accept
anything less than
excellence from
yourself.
165
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: posted @ tompeters.com by K.Sriram

166
 The 19 Es of EXCELLENCE
Enthusiasm! (Be an irresistible force of nature! Be fire! Light fires!)
Exuberance! (Vibratecause earthquakes!)
Execution! (Do it! Now! Get it done! Barriers are baloney! Excuses are for
wimps! Accountability is gospel! Adhere to coach Bill Parcells
doctrine: Blame no one!! Expect nothing!! Do something!!)
Empowerment! (Respect! Appreciation! Ask until youre blue in the face, What
do you think? Then: Listen! Liberate! 100.00% innovators!)
Edginess! (Perpetually dance at the frontier and a little, or a lot, beyond.)
Enraged! (Maintain a permanent state of mortal combat with the status-quo!)
Engaged! (Addicted to MBWA/Managing By Wandering Around. In touch. Always.)
Electronic! (Partner with the whole wide world 60/60/24/7 via all manner of
electronic community building and entanglement. Crowdsourcing wins!)
Encompassing! (Relentlessly pursue diversity of every flavor! Diversity per se
generates big returns!) (Seeking superb leaders: Women rule!)
Emotion! (The alpha! The omega! The essence of leadership! The essence of sales!
The essence of design! The essence of life itself! Acknowledge it! Use it!)
Empathy! (Connect! Connect! Connect! Click with others reality and aspirations!
Walk in the other persons shoesuntil the soles have holes!)
Ears! (Effective listening in every encounter: Strategic Advantage No.1! Believe it!)
Experience! (Life is theater! Its always showtime! Make every contact a Wow!
Standard: Insanely Great/Steve Jobs; Radically Thrilling/BMW.)
Eliminate! (Keep it simple!! Furiously battle hyper-complexity and gobbledygook!!)
Errorprone! (Ready! Fire! Aim! Try a lot of stuff, make a lot of boo-boos.
CELEBRATE the boo-boos! Try more stuff, make more boo-boos!
He who makes the most mistakes wins! Fail! Forward! Fast!)
Evenhanded! (Straight as an arrow! Fair to a fault! Honest as Abe!)
Expectations! (Michelangelo: The greatest danger for most of us is not that our
aim is too high and we miss it, but that it is too low and we hit it.)
Eudaimonia! (The essence of Aristotelian philosophy: True happiness is pursuit of
the highest of human moral purpose. Be of service! Always!)
EXCELLENCE! (The only standard! Never an exception! Start NOW! No excuses!)

167
 In Search of Excellence in SIX Words:

Hard is soft.
Soft is hard.*

*The hard numbers and the plans are the true soft stuff. The soft
relationships and commitment to Excellence and integrity-in-all-we-do are the true
hard stuff.

168
Excellence!
Now!
More Than Ever!

Excellence is the best defense.

Excellence is the best offense.
Excellence is the answer in good times.
Excellence is the answer in tough times.
Excellence is about the big things.
Excellence is about the little things.
Excellence is a design good enough to lick/S. Jobs.
Excellence is a relationship.
Excellence is a philosophy.
Excellence is an aspiration.
Excellence is immoderate.
Excellence is a pragmatic standard.
Excellence is execution.
Excellence is selfish.
Excellence is selfless.
Excellence keeps you awake.
Excellence lets you sleep well.
Excellence is a moving target.
Excellence knows no bounds.

169
 EXCELLENCE. In TWO Pages

1. People first, second, third, fourth /The business of leaders is people:

to inspire/engage/provide a trajectory of opportunityenterprise of every
size and type as cathedral for human development. When I hire someone,
thats when I go to work for them.John DiJulius
1A. Customer comes 2nd. If you want to best Wow! customers then you must
first Wow! those who serve the customers/If you want staff to give great service,
give great service to staff.Ari Weinzweig, Zingermans/You have to treat your employees like
customers.Herb Kelleher, on his #1 secret to success.
1B. Managers sole raison detre: Make each of my team members successful!
1C. Effective organizations: No bit players!
1D. Appreciation. Acknowledgement. The deepest human need is the need to be
appreciated.Believe it! A few kind words are often remembered for years!
1E. First-line supervisors. Every organizations most important leadership
cadre. Productivity is largely determined by the caliber of the first-line boss. Selection and
development of your sergeants must become an obsessionalmost all do a half-assed job.
1F. Weird. There are no normals in the history books!/Insure a healthy supply of oddballs/
Diversity of every flavor = Fresh perspectives! Better decisions!
1G. Memories That Matter. And dont. People stuff sticks with you: Youll look back on
the handful of people you developed who proceeded to change the worldand the multitude (if
youve earned it) who say, I grew most when I worked with you. Ever seen a tombstone
engraved with the deceaseds net worth?

2. You/me. Businesses no longer coddle. Youre in charge!/Brand youstand out for

something valuable, or else; learn something new every day, or else!/Distinct or Extinct!

3. Organizations Exist to Serve. PERIOD.

4. EXECUTION. Dont forget to tuck the shower curtain into the bath tub.Conrad Hilton on his
sweat the details obsession and #1 success secret/Execution is strategy.Fred Malek/
Execution is the leaders job #1.Larry Bossidy
4A. They do ONE BIG THING at a time.Drucker on successful managers #1 trait.
4B. Resilience circa 2011: Understand it. Hire for it. Promote for it. Obsess on it.

5. MBWA/Managing By Wandering Around: Starbucks Schultz visits 25 stores a week/

In touch is not optional/You = Your calendar/Calendars never lie!
5A. Listening per se = Candidate for Core Value #1. Listening per se is a profession./If
you dont listen, you dont sell anything./Docs interrupt patients after 18 seconds. And you?
5B. What do you think? How can I help? MBWA 8/Eight words, repeated like a
mantra while wandering around that unlock engagement/success for multitudes.
5C. Innovate by Hanging out. You are what you eat./You will become like the five people
you associate with the mosta blessing or a curse./Want cool? Expose yourself to
cool!/Manage hanging out zealously-formallywith customers, interesting outsiders, etc.
5D. K = R = P (Kindness = Repeat business = Profit.) Hard is soft. Soft is hard.
#1 finding from In Search of Excellence. Kindness is hardand the payoff in $$$$.
5E. Apology powerawesome power: A 3-minute Im sorry call heals anythingdo it
religiously!/Over-the-top response to even a small boo-boo strengthens customer relationships!

170
6. Little BIG Things/Focus on multipliers: Walmart goes to big shopping cart = +50%
big stuff sales boost!/Wash your Handssave thousands of lives per year in hospitals!
6A. Little BIG Things: SMEs are the bedrock of all economies. Nurture them. SMEs battle cry
per George Whalin: Be the best. Its the only market thats not crowded.

7. Apple > Exxon in market cap courtesy DESIGN! The big Duh: Cool beats
un- cool!/Design is candidate for the best way to differentiate goods-services in competitive
markets.
7A. TGRs/Things Gone Right. Wagon Wheel restaurant, Gill MAclean restroom with fresh
flowerswe remember such touches more or less forever./Manage-measure TGRs.
7B. Scintillating Experiences. Howard Schultz on Starbucks: At our core, were a coffee
company, but the opportunity we have to extend the brand is beyond coffee; its entertainment.

8. WOMEN Buy! WOMEN Rule! WOMENs World! Women buy 80% of everything
$28T world market/Why Warren Buffett Invests Like a Girle.g., studies harder, holds longer,
less frenzied buying and selling/Womens leadership style fits 21 st century less-hierarchical
enterprise./Evidence is clearWomen well on the way to 21st century economic
domination! Brazils President Dilma Rousseff at UN: This is the century of women.

9. Web-Social Media. Everyone becomes our valued partner, a member of our

communityand a watchdog./The Power of Co-creationmy Top Biz Book for 2010/
Social Media can be the lynchpin of transformative strategyfor organizations of every shape
and size!

10. Value added via transformation from Customer satisfaction to customer

successhuge difference-opportunity!/E.g., IBM Global Services, went from afterthought
to $60B/UPS Logistics/MasterCard Advisors/IDEO, help clients create a culture of innovation/
The Geek SquadBestBuys #1 strategic point of differentiation.

11. Innovation secret #1: Most tries wins./A Bias for ActionExcellence trait #1,
In Search of Excellence/Ready. Fire! Aim.Ross Perot//Instead of trying to figure out the best
way to do something and sticking to it, just try out an approach and keep fixing it.Bert Rutan
11A. Try a lot = Fail a lot/Fail. Forward. Fast./Fail faster, succeed sooner.David
Kelley/Reward excellent failures, punish mediocre successes./Whoever Makes the Most
Mistakes WinsRichard Farson
11B. You miss 100% of the shots you never take.Wayne Gretzky

12. Live WOW!/Zappos creed WOW Customers/eBay 14,000 employees, Amazon 20,000
employees, Craigs List 30 employees; regardless of issue, Wheres your Wild and Wooly Craigs
List Option?/Final point in superstar adman Kevin Roberts Credo: Avoid moderation!

13. EXCELLENCE is a personal choice not an institutional choice!

EXCELLENCE is not an aspirationits the next five minutes!
13A. EXCELLENCE. Always. If not EXCELLENCE, What?
If not EXCELLENCE Now, When?

171
 EXCELLENCE Redux
Five (or Less) Words to the Wise

4 most important words: What do you think?

(Most important words in any organization.
Dave Wheeler)

4 most important words: How can I help? (Boss as CHRO/

Chief Hurdle Removal Officer.)
2 most important words: Thank you! (Appreciation/
Acknowledgement/Recognition.)
2 most important words: All yours. (Hands-off delegation/
Respect/Trust.)
3 most important words: Im going out. (MBWA/Managing By
Wandering Around/In touch!)
2 most important words: Im sorry. (Stunning power of unconditional
Apology! Marshall Goldsmith: #1 exec issue.)

5 most important words: What did you learn today?

(Grow or die.)
5 most important words: Did you tell the customer? (Over-
communicate.)
2 most important words: She says (She is the customer!)
1 most important word: No. (To donts > To dos.)
1 most important word: One! (Best bosses do one big thing at a
time.Drucker)
1 most important word: Yes. (Anon. quote: The best answer is
always What the hell./Wayne Gretzky: You
miss 100% of the shots you never take.)
3 most important words: Lets do lunch! (Social accelerators =
secret to problem/opportunity #1: XFX/
cross-functional Excellence.)
4 most important words: Thank Susan in accounting. (Readily/
constantly/profusely acknowledge
help from other functions.)
2 most important words: After you. (Courtesy rules.)
3 most important words: Thanks for coming. (Civility. E.g., boss
acknowledges an employee for coming to
her/his office.)
2 most important words: Great smile! (Acknowledge good attitude!)
1 most important word: Wow! (Avoid moderation.K. Roberts)
1 most important word: EXCELLENCE! (Why else bother?)
2 most important words: Excellence. NOW. (The next 5 minutes.
Or not.)

172
 XXVIII. Organizations Exist to Serve:
Why Else Get Out of Bed in the Morning?
Organizations exist to serve. Period.
Leaders live to serve. Period.
Passionate servant leaders, determined to create a legacy of earthshaking
transformation in their domain (a 600SF retail space, a 4-person training
department, an urban school, a rural school, a city, a nation), create/must
necessarily create organizations which are no less than cathedrals in which the full
and awesome power of the Imagination and Spirit and native Entrepreneurial flair
(We are all entrepreneurs.Muhammad Yunus) of diverse individuals
(100% creative Talentfrom checkout to lab, from Apple to Wegmans to
Janes one-person accountancy in Invercargill, NZ) is unleashed in passionate
pursuit of jointly perceived soaring purpose (= win a Nobel peace prize like Yunus,
or at least do something worthy of bragging about 25 years from now to your
grandkids) and personal and client service Excellence.

Such Talent unbound pursue Questsrapidly and relentlessly experimenting and

failing and trying againwhich surprise and surpass and redefine the expectations
of the individual and the servant leader alike. The collective products of these
Quests offer the best chance of achieving rapid organizational and individual
adaptation to fast-transforming environments, and provide the nutrition for
continuing (and sometimes dramatic) re-imaginings which re-draw the boundaries
of industries and communities and human achievement and the very conception of
what is possible.

In turn, such organizations, bent upon excellence and re-imaginings based on

maximizing human creativity and achievement, will automatically create cadres of
imaginative and inspiring and determined servant leaders who stick around to take
the organization to another level, and then anotheror, equally or more important,
leave to spread the virus of Freedom-Creativity-Excellence-Transforming-Purpose
by pathfinding new streets, highways, and alleyways which vitalize and revitalize,
through creative destruction, Entrepreneurial Capitalism, which is the best hope for
maximizing collective human Freedom, Happiness, Prosperity, Wellbeingand,
one prays, some measure of Peace on Earth.

173
 Oath of Office: Managers/Servant Leaders
Our goal is to serve our customers brilliantly and profitably over
the long haul.
Serving our customers brilliantly and profitably over the long
haul is a product of brilliantly serving, over the long haul, the
people who serve the customer.

Hence, our job as leadersthe alpha and

the omega and everything in betweenis
abetting the sustained growth and success
and engagement and enthusiasm and
commitment to Excellence of those, one at
a time, who directly or indirectly serve the
ultimate customer.
Weleaders of every stripeare in the Human Growth and
Development and Success and Aspiration to Excellence
business. We (leaders) only grow when they (each and
every one of our colleagues) are growing.
We (leaders) only succeed when they (each and every one of
our colleagues) are succeeding.
We (leaders) only energetically march toward Excellence when
they (each and every one of our colleagues) are
energetically marching toward Excellence.
Period.

174
Organizations
exist to serve.
PERIOD.
Leaders live to
serve.
PERIOD.
175
 Problems Revealed:
Run Up to the Great Recession,
When Is Enough ENOUGH?

Too Much Cost, Not Enough Value

Too Much Speculation, Not Enough Investment
Too Much Complexity, Not Enough Simplicity
Too Much Counting, Not Enough Trust
Too Much Business Conduct, Not Enough
Professional Conduct
Too Much Salesmanship, Not Enough
Stewardship
Too Much Focus on Things, Not Enough Focus
on Commitment
Too Many Twenty-first Century Values,
Not Enough Eighteenth-Century Values
Too Much Success, Not Enough Character

Source: Chapter titles from Jack Bogle Enough

176
 XXIX. The Shareholder Value Myth
The notion that corporate law requires directors,
executives, and employees to maximize shareholder
wealth simply isnt true. There is no solid legal support
for the claim that directors and executives in U.S. public
corporations have an enforceable legal duty to maximize

shareholder wealth. The idea is fable.

Lynn Stout, The Shareholder Value Myth: How Putting Shareholders First Harms
Investors, Corporations, and the Public

Courts uniformly refuse to actually impose sanctions on

directors or executives for failing to pursue one purpose
over another. In particular, courts refuse to hold directors
of public corporations legally accountable for failing to
maximize shareholder wealth.Lynn Stout, The Shareholder Value
Myth: How Putting Shareholders First Harms Investors, Corporations, and the Public

From a legal perspective, shareholders do not, and

cannot, own corporations. Corporations are
independent legal entities that own themselves, just
as human beings own themselves. Shareholders
own shares of stock. A share of stock is simply a contract
between the shareholder and the corporation, a contract
that gives the shareholder very limited rights under
limited circumstances. In this sense, stockholders are no
different from bondholders, suppliers, and employees. All
have contractual relationships with the corporate entity.
None owns the company itself.Lynn Stout,
The Shareholder Value Myth: How Putting Shareholders First Harms Investors,
Corporations, and the Public

177
Courts uniformly refuse to actually impose sanctions on
directors or executives for failing to pursue one purpose
over another. In particular, courts refuse to hold directors
of public corporations legally accountable for failing to
maximize shareholder wealth.Lynn Stout, The Shareholder Value
Myth: How Putting Shareholders First Harms Investors, Corporations, and the Public

[a corporation] can be formed to

conduct or promote any
lawful business or purpose.
from Delaware corporate code (no mandate for shareholder primacy), per Lynn
Stout, The Shareholder Value Myth: How Putting Shareholders First Harms
Investors, Corporations, and the Public

What about shareholders rights to sue corporate

officers and directors for breach of fiduciary duty if they
fail to maximize shareholder wealth? Such a right turns
out to be illusory. Executives and directors duty of
loyalty to the corporation bars them from using
their corporate positions to enrich themselves at the
firms expense, but unconflicted directors remain
legally free to pursue almost any other goal.
Lynn Stout, The Shareholder Value Myth: How Putting Shareholders First Harms
Investors, Corporations, and the Public

178
On the face of it,
shareholder value is the
dumbest idea in the world.
Shareholder value is a
result, not a strategy.
Your main concerns are
your employees, your
customers and your
products.Jack Welch (Yes, THAT Jack Welch,
longtime primo vociferous promoter of shareholder primacy,
FT, 0313.09, page 1)

I told my board that if they want to get the share price up

50% in 12-18 months, I can do it without raising a sweat.
But it will destroy the longterm prospects of the
companyand theyll have to do it without me.
CEO, large ($10B+) electronic components company

179
 XXX. People (REALLY) First

EXCELLENT
customer experience
depends entirely on
EXCELLENT
employee experience!

If you want to WOW your

customers, FIRST
you must WOW those who
WOW the customers!
180
 Customers will only love a
David Spellman:

company that loves its employees.

My corollary is, How we treat
BCMac:

one another is ultimately how we

treat the clients.
Employees who dont
Mark Sanborn:

feel significant rarely make

significant contributions.
Ive always said You cant
Vala Afshar:

remain a great company on the

outside if you arent one on the
inside.

181
(PLEASE.
PLEASE.
PLEASE.
Tell me why
this is so f-ing
hard to
understand?)
182
Business has to give people
enriching, rewarding lives
or its simply not worth
doing. #1Richard Branson (FYI: my favorite quote)

You have to treat your

employees like customers.
Herb Kelleher, upon being asked his secret to success

If you want staff to give

great service, give great
service to staff. Ari Weinzweig, Zingermans

183
When I hire
someone,
thats when I
go to work for
them. John DiJulius,

Whats the Secret to Providing a World-class Customer Experience

184
An organization can only
become the-best-version-of-
itself 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.
Matthew Kelly, The Dream Manager

185
The path to a hostmanship culture paradoxically does
not go through the guest. In fact it wouldnt be totally
wrong to say that the guest has nothing to do with it. True
hostmanship leaders focus on their employees. What
drives exceptionalism is finding the right people and
getting them to love their work and see it as a passion. ...
The guest comes into the picture only when you are ready

Would you prefer to stay

to ask,

at a hotel where the staff

love their work or where
management has made
customers its highest
priority? We went through the hotel and
made a ... consideration renovation. Instead of redoing
bathrooms, dining rooms, and guest rooms, we gave
employees new uniforms, bought flowers and fruit, and
changed colors. Our focus was totally on the staff. They
were the ones we wanted to make happy. We wanted them
to wake up every morning excited about a new day at
work.Jan Gunnarsson and Olle Blohm,
Hostmanship: The Art of Making People Feel Welcome.

186
We are a Life Success
Company.
Dave Liniger, founder, RE/MAX (The
organization would
ultimately win not because it gave agents more money, but
because it gave them a chance for better lives.Phil Harkins
& Keith Hollihan, Everybody Wins, the story of RE/MAX)

Some of our people spend

their entire working lives in
our agency. We do our
damnedest to make it a
happy experience. I put this
first, believing that superior
service to our clients, and
profits for our stockholders,
depend on it.
David Ogilvy, on Ogilvy & Mathers corporate culture

187
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

The key difference between checkers and chess is

that in checkers the pieces all move the same way,
whereas in chess all the pieces move differently.
Discover what is unique about each person and
capitalize on it.Marcus Buckingham

188
I cant tell you how many times we passed up
hotshots for guys we thought were better people and
watched our guys do a lot better than the big names,
not just in the classroom, but on the fieldand,
naturally, after they graduated, too. Again and
again, the blue chips faded out, and our little up-
and-comers clawed their way to all-conference and
All-America teams.Coach Bo Schembechler (& John Bacon),
Recruit for Character, Bos Lasting Lessons

The one piece of advice which will contribute

to making you a better leader, will provide you
with greater happiness, and will advance your
career more than any other advice ... and it
doesnt call for a special personality or any
certain chemistry ... and anyone can do it, and

its this: You must care.

LTGEN Melvin Zais

We are ladies and gentlemen serving

ladies and gentlemen.Ritz-Carlton Credo (In the hotel
business, members of front-line staff have historically been treated more like cannon
fodder than ladies and gentlemen:e.g., turnover > 100% per annum.)

189
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

190
Groups become great only when everyone
in them, leaders and members alike, is free
to do his or her absolute best. The best
thing a leader can do for a Great Group is
to allow its members to discover their
greatness.
Warren Bennis and Patricia Ward Biederman, Organizing Genius

I have always believed that

the purpose of the
corporation is to be a
blessing to the employees.
Boyd Clarke, former CEO, The Tom Peters Company

To be an effective leader, you have to first

have a desire and a commitment to helping
people.
Harry Rhoads, Co-founder and CEO, Washington Speakers Bureau

191
EMPLOYEES FIRST,
CUSTOMERS SECOND:
Turning Conventional
Management Upside Down
by Vineet Nayar/CEO/HCL Technologies

The Customer Comes

Second: Put Your People
First and Watch Em
Kick Butt by Hal Rosenbluth (former CEO,
Rosenbluth International) and Diane McFerrin Peters

192
From the New York Times/01.05.14, courtesy Adam Davidson, Planet Money/NPR:

Contrary to
conventional
corporate thinking,
treating retail
workers much better
may make everyone
(including their
employers) much
richer. * **
*Duh!
**Cited in particular, The Good Jobs Strategy, by M.I.T. professor Zeynep Ton.

193
Oath of Office: Managers/Servant Leaders
Our goal is to serve our customers brilliantly and profitably over
the long haul.
Serving our customers brilliantly and profitably over the long
haul is a product of brilliantly serving, over the long haul, the
people who serve the customer.

Hence, our job as leadersthe alpha and the

omega and everything in betweenis
abetting the sustained growth and success
and engagement and enthusiasm and
commitment to Excellence of those, one at a
time, who directly or indirectly serve the
ultimate customer.
Weleaders of every stripeare in the Human Growth and
Development and Success and Aspiration to Excellence business.
We (leaders) only grow when they (each and every one of our
colleagues) are growing.
We (leaders) only succeed when they (each and every one of our
colleagues) are succeeding.
We (leaders) only energetically march toward Excellence when
they (each and every one of our colleagues) are energetically
marching toward Excellence.
Period.

194
 Your principal moral
TJP/TIB* #1:

obligation as a leader is to
develop the skillset, soft
and hard, of every one of
the people in your charge
(temporary as well as semi-
permanent) to the maximum
extent of your abilities. The
good news: This is also the
#1 mid- to long-term
profit maximization
strategy!

*This I Believe (The TIB List idea is courtesy architect Bill Caudill.)

195
Imagine looking back 5 years from now on the prior
What will you be
5 years:

able to say (in

exacting detail)
about your
PEOPLE
DEVELOPMENT
SCORECARD?*
*Its the people development stuff youll remember mostand assess
yourself on mostwhen you look back, at age 70, on your career as a
leader: I gave Ellen Smith the boost that launched her magnificent
career. (Etc.)

196
 FYI:

Your LEGACY
= TWO Promotion
Decisions/Year*

*Think about it. Top

promotion decision deserves as much
care as an Acquisition decision! (Same same.)

197
Excellent organizations: 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.

I start with the premise that the

function of leadership is to produce
more leaders, not more followers.
Ralph Nader

WPP: Our Mission*

TO DEVELOP AND MANAGE TALENT;

TO APPLY THAT TALENT,
THROUGHOUT THE WORLD,
FOR THE BENEFIT OF CLIENTS;
TO DO SO IN PARTNERSHIP;
TO DO SO WITH PROFIT.

*STARTS with/emerges from TALENT. Profit is important but

DERIVATIVE!

198
7 Steps to Sustaining Success*
You take care of the people.
The people take care of the service
The service takes care of the customer.
The customer takes care of the profit.
The profit takes care of the
re-investment.
The re-investment takes care of the
re-invention.
The re-invention takes care of
the future.
(And at every step the only measure is
EXCELLENCE.)

You take
*To extract the obvious, it all starts with:

care of the people!

199
In a world where customers wake
up every morning asking, Whats
new, whats different, whats
amazing? success depends on a
companys ability to unleash
initiative, imagination, and passion
of employees at all levelsand this can only
happen if all those folks are connected heart and soul to
their work [their calling], their company and their
mission.John Mackey and Raj Sisoda, Conscious Capitalism: Liberating the
Heroic Spirit of Business

Leadership is a gift. Its given by those who follow. You

have to be worthy of it.General Mark Welsh, Commander, U.S. Air
Forces Europe

ORGANIZATIONS EXIST TO SERVE.

PERIOD.
LEADERS LIVE TO SERVE.
PERIOD.

200
Addenda/People (REALLY) First:
15 Point Human Capital Development Manifesto

Reframing Capitalism:
A 15 Point Human
Capital Development
Manifesto/HCDM
at the Enterprise &
National Government Level

Tom Peters
14 June 2012
World Strategy Forum
The New Rules: Reframing Capitalism
Seoul, Korea

201
Tom Peters/Seoul, Korea/0614.12/modified 0621.2012

Reframing Capitalism: A 15-Point Human

Capital Development Manifesto/HCDM at the
Enterprise and National Government Level

In some sense you can argue that the science fiction scenario is already starting to
happen. The computers are in control. We just live in their world.Danny Hillis

Human creativity is the ultimate economic resource.Richard Florida

Every child is born an artist. The trick is to remain an artist.Picasso

Knowledge becomes obsolete incredibly fast. The continuing professional education

of adults is the No. 1 industry in the next 30 years.Peter Drucker

If you want staff to give great service, give great service to staff.Ari Weinzweig

In mid-June 2012 I spoke at a major event in Seoul, Korea, World Strategy Forum/
The New Rules: Reframing Capitalism. Predictably the discussion focused on global
financial infrastructure. To ignore that would have been insanity. On the other
hand, I believe that employment/unemployment is even more affected by the
changing nature of workand the wildly accelerating effectiveness of technology,
such as artificial intelligence, in encompassing activities that employ tens of millions
of people, especially in the OECD nations. I believe this is, in the mid- to long-term,
our #1 problemand #1 opportunity. Confronting the nature and extent of future
employment is required for reasons of economic survival and growthand for
reasons of social and political stability. Having created here in a single paragraph
the oceanic basis for what follows, I must admit that it was a mundane question
(Question #1) in an interview before my speech that triggered this manifesto.
Namely: Dr. Peters, how would you define the perhaps changing nature of
corporate social responsibility in these uncertain times? Herewith, in effect my
responsewhich, quite honestly, came as a surprise to me:

1. Corporate social responsibility starts at homei.e., inside the enterprise!

MAXIMIZING GDD/Gross Domestic Development of the workforce is the primary
source of mid-term and beyond growth and profitabilityand maximizes national
productivity and wealth. (The profitability axiom: If you want to serve the customer
with uniform Excellence, then you must FIRST effectively and faithfully serve those
who serve the customeri.e. our employees, via maximizing tools and professional
development.)

202
2. Regardless of the transient external situation, development of human capital is
always the #1 priority. This is true in general, in particular in difficult times which
demand resilienceand uniquely true in this age in which IMAGINATIVE
brainwork is de facto the only plausible survival strategy for higher wage nations.
(Generic brainwork, traditional and dominant white-collar activities, is
increasingly being performed by exponentially enhanced artificial intelligence.
Please see Appendix ONE.)

3. Three-star generals and admirals (and symphony conductors and sports coaches
and police chiefs and fire chiefs) OBSESS about training. Why is it an almost dead
certainty that in a random 30-minute interview you are unlikely to hear a CEO
touch upon this topic? (I would hazard a guess that most CEOs see IT investments
as a strategic necessity, but see training expenses as a necessary evil.)

4. Proposition/axiom: The CTO/Chief TRAINING Officer is arguably the #1 staff

job in the enterprise, at least on a par with, say, the CFO or CIO or head of R&D.
(Again, external circumstancessee immediately aboveare forcing our hand.)

5. The training budget takes precedence over the capital budget. PERIOD. Its
easier and more satisfying to get your picture taken next to a new machine. But how
do you get a photo of a new and much improved attitude in a key distribution
center? The catch: The odds are 25:1 that the new attitude will add more to the
bottom line than will the glorious state-of-the-art machine.

******************************

In the 3rd quarter of 2011 manufacturing output went up 4.7 percentone heck of an
accomplishment. But there was a catch, and a big one. Gross hours worked in
manufacturing went down 0.6 percent. Such ratios are becoming commonplaceand
in services as much or more than in manufacturing. As we automate damn near
everything and as that trend accelerates (been in an auto plant latelywhere are the
people?), output is dramatically outstripping labor usage. Great for productivity,
borderline terrifying for workers. This manifesto is written with such numbers in
mindnot only does that not mean that its neo-Luddite, but in fact the opposite.
Timid strategies will not address the employment issue. Education and job content
must be turned upside downin short order.

******************************

6. Human capital development should routinely sit atop any agenda or document
associated with enterprise strategy. Most any initiative you undertake should
formally address implications for and contributions to human capital asset
development.

203
7. Every individual on the payroll should have a benchmarked professional growth
strategy. Every leader at every level should be evaluated in no small measure on the
collective effectiveness of individual growth strategiesthat is, each individuals
absolute growth is of direct relevance to every leaders assessed performance.

8. Given that we ceaselessly lament the leadership deficit, it is imperative, and

just plain vanilla common sense, that we maximize the rate of development of
women leaders at every levellittle if anything has a higher priority. (It is an
outrage that this has not been the case until nowand is still not the case in far too
many institutions.) (And, while there are no guarantees, women are more likely
dispositionally to take a shine to the imperative of maximizing human asset
development.)

9. Maximum utilization of and continued development of older workers (to age

70or even beyond?) is a source of immense organizational and national growth
and wealth. The rapidly aging population, with oldies far more healthy and vital
than ever, ought to be an opportunity rather than a pain-in-the-butt to deal with.

******************************

I was intimidated by the conference title Reframing capitalismand the fact that a
passel of Nobel laureates in economics would be addressing the issue. Then it occurred
to me that the mid- to long-term reframing was more about recasting the nature of
work/jobs in, for example, the face of 2020s artificial intelligence than about whether
the Spanish bailout is $100 billion or $400 billionas nontrivial as the latter is. I.e.,
what the hell will the worlds four billion or so workers be doing, say, 10 years from
now? Im not sure that sophisticated econometric analyses will be all that helpful in
determining an answer.

******************************

10. The practical key to all human asset development activities is the 1st-line
manager. (Sergeants run the Army is an accurate, commonplace observation
supported by immense development resources.) Hence development of the full cadre
of 1st-line managers is an urgentand invariably underplayedstrategic
imperative. Arguably, the collective quality and development trajectory of 1st-line
leaders is an organizations #1 human asset development priority. (Consistent with
all the above, the 1st-line leaders skill at people development is her or his top
priorityfor which she or he must be rigorously and continually trained.)

11. The national education infrastructurefrom kindergarten through continuing

adult educationmay well be National Priority #1. Moreover, the educational
infrastructure must be altered radically to underpin support for the creative jobs
that will be more or less the sole basis of future employment and national growth
and wealth creation.

204
12. Associated with the accelerated priority of the national education infrastructure
is a dramatically enhanced and appreciated and compensated role for our
teachersthis status enhancement must necessarily be accompanied by rigorous
accountability. There is no doubt that teaching (instilling) insatiable curiosity,
say, which is the #1 attribute of a creative person, is no easy task; however, there is
no way that it can be ducked if one looks at future definitions of employability.

13. The majority of us work in small enterprises; hence national growth objectives
based upon human capital development MUST necessarily extend downward to
even 1-person enterprises. Collective productivity improvement through human
capital development among small businesses has an unimaginably largeand
undervaluedpayoff. While many small businesses appreciate the notion, they are
unprepared to take the steps necessary to engage their, say, dozen employees in
seeking quantum leaps in creative work content and productivity improvements.

14. Needless to say, the activities imagined here will only be possible if abetted by a
peerless National Information and Communication Infrastructure. Indeed, the work
referred to here is being doneand the need is appreciated and reasonably well
funded. The effort must not falter; the new information-based tools and
accompanying infrastructure are the coin of the realm.

15. Associated with the above is a RADICAL reorientation of leadership education

and developmentthroughout the enterprise/education/continuing education
establishment. (E.g., among other things, the MBA and executive education will
require open-heart surgeryaimed at shifting focus from finance and marketing to
human resource development.) To deal with the most likely future employment
scenarios, leaders will need to be masters of the liberal artssaid arts are, again,
the determinant of responding to the emerging world.

The agenda implied by the above manifesto is boldand its moorings are a long way
from where we are today. But this or something rather like it fall into a category
labelednot optional.

205
XXXI. Overdoing Strategy/Dealing
With Strategic Disruption as Individuals

Amateurs talk about strategy. Professionals talk about logistics.General Omar

Bradley

Great 12/28/13 Financial Times book review: Britain Against Napoleon: The
Organization of Victory. Chalk up the win as due to superior management/logistics.

Dont
Former McKinsey MD to team, on over-emphasizing strategy:

forget the implementation part, boys.

Its that all-important last 99%.
Jack Welch on strategy: Pick a general direction and then implement like hell.

TP: Could we call it WTFWUT* rather than strategy? [*WhatThe F*** Were
Up To] Strategy is too grand a word for me.

Glen Taylor: Like sportsyour competitors already know your strategy Success =
focus on execution needed to win.

Clay Christensen [and his obsession with disruption] be damned; message for you
and me: FIRST, get so frigging good at something that you have reason to worry
about being disrupted.

If you spend your life worrying about

disruption, you wont have time to
get good enough at anything to be
disrupted.

206
Amateurs
talk about
strategy.
Professionals
talk about
logistics.
General Omar Bradley

207
Conrad Hilton, at a gala celebrating his career, was called to the podium and asked,
What were the most important lessons you learned
in your long and distinguished career?

His answer (in full!)

Remember to
tuck the
shower
curtain inside
the bathtub.*
*You get em in the door with location, location, location. You keep em coming
back with the tucked in shower curtain. (NB: Profit rarely comes from
visit/transaction #1; it is a byproduct of coming back/transaction #2, #3, #4, ...)

208
In real life, strategy
is actually very
straightforward. Pick
a general direction
and
implement
like hell. Jack Welch

(When assessing candidates, the first thing I looked for

was energy and enthusiasm for execution. Does she talk
about the thrill of getting things done, the obstacles
overcome, the role her people playedor does she keep
wandering back to strategy or philosophy?
Larry Bossidy, Execution)

209
Costco figured out
the big, simple things
and
executed with
total
fanaticism.
Charles Munger, Berkshire Hathaway

210
 XXXII. Only One Can Be the Cheapest

Only one company can be the cheapest. All others

must use design. Rodney Fitch,

Fitch & Co. (Source: Insights, definitions of design, the Design Council [UK])

Design RULES: APPLE

market cap surpasses that
of Exxon Mobil! (*August 2011)

With its carefully conceived mix of colors and textures, aromas and music,
STARBUCKS is
Starbuscks is more indicative of our era than the iMac.
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 Aesthetic Value Is
Remaking Commerce, Culture and Consciousness

211
Hypothesis:

DESIGN is the principal difference

between LOVE and HATE

Design is NEVER NEUTRAL.

You know a design

is good when you
want to lick it.
Steve Jobs (Design: Intelligence Made Visible, Stephen Bayley & Terence Conran)

Ann Landers as management guru:

Three criteria for products, projects, a communication etc:

Good.
True.
Helpful.

212
Businesspeople dont need to understand

designers better. Businesspeople need to be

designers.Roger Martin/Rotman Mgt School/University of Toronto

Design: The Words We Use:

If you cant write your movie idea on the back of a business
card, you aint got a movie.Samuel Goldwyn

I make all the launch teams tell me what the magazines about in five words or less.
You cant run alongside millions of consumers and explain what you mean. It forces
some discipline on you.Ann Moore, CEO, Time Inc., on new mags

If you cant state your position in eight words or less, you dont have a position.
Seth Godin

The difference between the right word and the

almost right word is the difference between
lightning and the lightning bug.Mark Twain

Design is everything.
Everything is design.
We are all designers.
Richard Farson, The Power of Design: A Force for Transforming Everything
(Farson says I said this; I say Farson said it. Truth: ?)

213
Design is
treated like a
religion at
BMW. Fortune

214
Design is

* The reception area

* The rest rooms!
* Dialogues at the call center
* Every electronic (or paper) form
* Every business process map
* Every email
* Every meeting agenda/setting/etc.
* Every square meter of every facility
* Every new product proposal
* Every manual
* Every customer contact
* A consideration in every promotion decision
* The presence & ubiquity of
an Aesthetic Sensibility/
Design Mindfulness
* An encompassing design review process
* Etc.
* Etc.

215
Action*: Initiate a Design Review
(Of Everything)
(TODAY)

*Boss or temp on a two-day assignment.

216
(Last word: Men cannot !!??
design for womens tastes/needs )

217
 XXXIII. Radical Personal Development
This riff took place @ 9AM on 1 January 2014:

Accelerating tech changes/etc. = Middle class in tank; good jobs falling to

algorithmic automation and offshoring. ONLY answer/ONLY chance:
Determined/intensive commitment to personal growth. Start date: 1/1/14.

Public policy is largely irrelevant. Revolutionary econ structural change is here-to-

stay. Only defense is personal development. NOW!

You totally misunderstand overall econ context

if you choose not to start today on

RPD /Radical Personal

Development.
If Reps & Dems were all geniuses & worked together, econ tsunami would still
thunder in. Answer is RPD/Radical Personal Development. PERIOD.

Remember: Excellent Brand You portfolio is

about self-LESS-ness, not self-ISH-ness. You
are as good as the network you develop-
nurture. PERIOD.
Beating econ revolution: Invest in your network (help/share). Hit the books (study).
Work your ass off. WOW-ify every project. Start: TODAY.
I like RPD. Just bought http://RadicalPersonalDevelopment.com.

218
Beating* the
economic/tech
revolution: Invest in
your network (share).
Hit the books (study).
Work your ass off.
WOW-ify every
project. Start:
TODAY.

*The ONLY way to win/thrive.

219
(The median worker is
losing the race against the
machine. )
Erik Brynjolfsson/Andrew McAfee/Race Against The Machine

(The root of our problem is

not that were in a Great
Recession or a Great
Stagnation, but rather that
we are in the early throes of
a Great Restructuring. Our
technologies are racing
ahead, but our skills and
organizations are lagging
behind. )
Erik Brynjolfsson/Andrew McAfee/Race Against The Machine

220
RPD or bust. Start date: TODAY. Tomorrow: TOO LATE.

Do SOMETHING. NOW.
RPD/Today: Download an interesting book. Schedule a lunch with someone
interesting THIS WEEK. Concoct a next step to WOW-ify a current project
TODAY.

RPD/Today: Check out MOOCs. Work with a pal on a reading list for the next 6
months. Call a good professional pal: Noodle on creating a Club RPD.

Boss & RPD: Your job is safer

if every one of your team
members is committed to
RPD/Radical Personal
Development. Actively
support one and all!
Bosses supporting RPD/Radical Personal Development: Read Matthew Kellys
The Dream Manager.
Bosses/In the next two weeks: Plan a sit-down meeting with each of your team
members concerning her/his RPD/Radical Personal Development aspirations.

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

Groups become great only when everyone

in them, leaders and members alike, is free
to do his or her absolute best. The best
thing a leader can do for a Great Group is
to allow its members to discover their
greatness.Warren Bennis and
Patricia Ward Biederman, Organizing Genius

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

222
When I hire someone,
thats when I go to work for
them.John DiJulius, Whats the Secret to Providing
a World-Class Customer Experience

I start with the premise that

the function of leadership is
to produce more leaders, not
more followers. Ralph Nader

223
 XXXIV. FUNDAMENTALLY

We Are Ready!

All human
beings are
entrepreneurs.
When we were in the caves we were all self-
employed ... finding our food, feeding
ourselves. Thats where human history
began. ... As civilization came we suppressed
it. We became labor because they stamped us,
You are labor. We forgot that we are
entrepreneurs.Muhammad Yunus

224
(We are in no danger of running out
of new combinations to try. Even if
technology froze today, we have more
possible ways of configuring the
different applications, machines, tasks,
and distribution channels to create new
processes and products than we could
ever exhaust.Erik Brynjolfsson and Andrew McAfee, Race
Against The Machine: How the Digital Revolution Is Accelerating Innovation, Driving

Productivity, and Irreversibly Transforming Employment and the Economy )

225
 XXXV. Benchmarking, Problems Therewith

Benchmarking Rule #1: Best practices are to be

learned from, NOT mimicked/treated as
law. Best practices must ALWAYS
be adapted to local conditions!
Benchmarking Rule #2: When pursuing best

practices, DONT benchmark.

FUTUREMARK. Tomorrows
stars are already out there. Find em!
DONT benchmark.
Benchmarking Rule #3:

OTHERMARK. Tech company

can adopt WOW service practice
from, say, a local restaurant or car dealer.
Benchmarking Rule #4: Make benchmarking

EVERYONEs biz. Ask all to collect

best practices from everyday life. Share
WEEKLY.
226
Corporate governance (Twitter I.D.): Healthcares service standard shouldnt be
other HC providers. It should be Zappos.

One of VAs biggest breakthroughs apparently started with a nurses observation

from the local Burger King. (Use of barcoding.)

Examples of excellence are

Adam Jacoby:

everywhere. The art is in customization &

execution. Dont settle for others best.
The setting need not be grand! We can also
learn powerful tidbitsor morefrom the
corner store! (If our eyes are always open.)
(My book The Little BIG Things opens
with the sparkling restroom in a small
restaurant in Gill, Massachusetts.)
Lots of small biz owners are refugees from big businesstrying to right worst
practices they were muzzled by.

Corporate governance: Yes, and I discovered my corner shop owner was a PhD in
economics and an MBA. Talked for full hour on service!

Sandy Maxey: As currently used, benchmarking is a tool of self-reinforcing smug

complacencynot about innovation.

TP: Alas, I have no choice but to agree.

227
Best practices are
to be learned from,
NOT mimicked/
treated as dogma.
Best Practices
must ALWAYS
be adapted to
LOCAL
conditions!
228
 XXXVI. W-A-A-Y Overemphasizing Big Stuff
(And other issues concerning small businesses and growth businesses)

Why is the business literature

overwhelmingly about giant
corporations or self-help for
individuals? Wheres stuff on 2-50
person companywhere the large
majority of us work?
Its partially because gurus like me historically get off on interviewing the Jack
Welches of the world.

Frankly, I think the gurus or academics disdain or ignore these companies.

There is no time that is bad for a start-up if you are passionate about something and
can beg, borrow, or steal a few bucks.

My focus here is not on entrepreneurs and start-ups. Im thinking more about an

existing 2-50 person company that someones aiming to make supercool.

My real target is a 17-person

company that someone wants to
guide to excellence, stellar
productivity, and a best place to
work.
Comment: Isnt the focus on scalability (growth & replication)?

229
If I never hear the term scalable my life will be immeasurably happier.
Comment: Isnt every company into growth? Using giants as benchmarks?
Response: What about a local auto dealership or community bank? Not aiming for
$10B in assets or $250M in sales.

Small Giants: Companies

My favorite book on non-monsters:
That Choose to Be Great Instead of Big, Bo Burlingham.
Retail Superstars: The Best 25
My #2 fav on non-monsters:
Independent Stores in America, George Whalin.
Comment re fighting perils of size: Richard Branson used to say automatically
Jack Welch used to say he
break it up when it gets to 50 employees.
wanted every piece of GE to be run like an excellent
small biz.
Robert Cook: I worked in one of Jack Welchs businesses; always pushing team to
understand their customers but run your own business or else.

In a way we tried to de facto focus on the working size bits in In Search of

Excellence. Avoided CEOs. Aimed to extract lessons from the person running a
$50M division.

New aim: I want my bit Tingleworthy.

Wow-ify that little sucker til its Tingleworthy! Okay?

Yes, like a great rock bands growth comes

Glen Taylor:
when you make ravenous fans of what you do. If its
not tingleworthy, who gives a sh*t.
Beautiful, brother! Beautifully beautiful!

Woody Zuill: I am fully in alignment on this. If Not Tingle Now, When?

Adam Jacoby: In my last biz we called it creating a World of Wow.

Love it!

230
Wow-ify that
little sucker
til its
Tingleworthy!
(What else?)

231
Jerry Garcia: We dont want to be the best of the best. We want to be the only
ones who do what we do.

Per my 1999 PSF Model, a small business is also a

25-person logistics department in a $250M business
unit. (PSF = Professional Service Firm.)
Training Inc., a 14-person unit in a 50-
Small biz:
person HR dept. in a $200M biz unit in a $3B corp.
Comment: Training unit is different from small business.
Excellence for that 14-person training dept. dittos
the 14-person retailer in my book. Shooting for
Tingleworthiness or bust.
Carlo Navato: And thats what matters right? Authentic, original, visceral, bang!

Start-ups are not particularly a young persons affair: In fact, in the U.S. most
start-ups are older folks, many many 50+/50++.

Comment: Aversion to scalability cannot hold for tech/Web.

There is no tech. There are 23,000,000 different flavors thereof. Minimum.

I venture to say that if you are focused on

scalability from the start, you are doomed.
To aspire to be Facebook is arrogance beyond measure. To use FB as a model is
insane.

I admire boldness. But the fact that there are a handful of bazillion-$$ companies is
of no use whatsoever to a start-up.

Protagonist (Twitter I.D.): Scale this sucker and monetize it and sell it. Me: Lets
do seriously/embarrassingly cool shit!

232
 Training
Small (entrepreneurial) biz:

Inc., a 14-person
unit* in a 50-person
HR department in a
$200M biz unit in
a $3B corporation
aiming for
Excellence & WOW!

* PSF /Professional Service Firm. (See my Professional Service

Firm 50: Fifty Ways to Transform Your Department Into A Professional Service
Firm Whose Trademarks Are Passion and Innovation.)

233
Comment: FB focused their product to make it great by scaling slowly, college by
college. Thats what a great biz does.

Most of the Web successes I know come from a superb niche idea; if it begins to gain
traction, then worry about growth/replication/scaling.

Personally, Id rather have $5M in

venture money than $25M; in the
latter case Id be perpetually pushed
to do good enough work and grow
(scale) as fast as I can. (Somewhat parallel: I
negotiated a low advance for book #2 so I wouldnt be forced to try to quickly copy
#1 while it was hot.)

234
Protagonist: Its good enough; so
scale it, monetize it, and sell it.

Lets do
Me:

seriously
cool shit.
Now!

235
 B-I-G: Over-rated? !
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

Mr. Foster and his McKinsey colleagues collected detailed performance data
stretching back 40 years for 1,000 [large] 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

Its just a fact: Survivors underperform.Dick Foster

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

236
Not a single
company that
qualified as having
made a sustained
transformation
ignited its leap with a
big acquisition or
merger. Moreover, comparison companiesthose that failed
to make a leap or, if they did, failed to sustain itoften tried to make themselves
great with a big acquisition or merger. They failed to grasp the simple truth that
while you can buy your way to growth, you cannot buy your way to greatness.
Jim Collins/Time

237
 Retail Superstars:
Inside the 25 Best Independent Stores in America
by George Whalin

Jungle Jims International Market, Fairfield, Ohio: An

adventure in shoppertainment, as Jungle Jims calls it, begins in the parking lot

and goes on to 1,600 1,400cheeses and, yes, varieties of hot

saucenot to mention12,000 wines priced from $8 to $8,000 a bottle;

all this is brought to you by 4,000 vendors. Customers come from every corner of
the globe.

Bronners Christmas Wonderland, Frankenmuth,

Michigan, pop 5,000: 98,000-square-foot shop features the likes of

6,000 Christmas ornaments, 50,000 trims, and anything else

you can name if it pertains to Christmas.

Lessons (for Everyone) from Retail Superstars!

1. Courses/Workshops/Demos/Engagement
2. Instructional Guides/Material/Books
3. Events & Events & Events
4. Create Community of Customers
5. Destination
6. Women-as-lead-Customers
7. FANATICS: Staff Selection/Training/Retention
8. Fanaticism/Execution
9. Design/Atmospherics/Ambience
10. Tableaus/Products-in-Use
11. Flow/Starts & Finishes (Disney-like)
12. 100% Orchestrated Experience/Focus: Moments of Truth
13. Constant Experimentation/Pursue Little BIG Things
14. Social Media/Ongoing Conversation with Customers
15. Community Star
16. Aim High
17. PASSION

238
1,600
cheeses.

1,400varieties of hot sauce.

12,000 wines priced from $8 to $8,000 a bottle.

6,000 Christmas ornaments.

50,000 trims.

PASSION.
239
 Small Giants:
Companies That Choose to Be Great Instead of Big
by Bo Burlingham

They cultivated exceptionally intimate

relationships with customers and
suppliers, based on personal contact,
one-on-one interaction, and mutual
commitment to delivering on promises.
Each company had an extraordinarily intimate relationship with the local city,
town, or county in which it did businessa relationship that went well beyond the
usual concept of giving back.

The companies had what struck me as unusually intimate workplaces.

I noticed the passion that the leaders

brought to what the company did. They
loved the subject matter, whether it be
music, safety lighting, food, special
effects, constant torque hinges, beer,
records storage, construction, dining, or
fashion.

240
... agile
creatures
darting
between the
legs of the
multinational
monsters ...
Bloomberg BusinessWeek on the peerless, economy-driving

German MITTELSTAND

241
 XXXVII. Judgment:
Questionable Quality Thereof

Docs over-rely on clinical evidencea handful of distorted memories about old

cases. There are a jillion research studies on that.

(I mis-spoke on jillion studies re faulty clinical judgment. Number is probably a

few thousand.)

Ive been studying faulty judgment for 41 years. And research waaaaaay
predates me.

Turns out most professionals are shitty decision makers. They over-rely on
clinical experiencei.e., very low n/sample size.

Require as basic text in med school: Daniel

Thinking,
Kahnemans
Fast & Slow.
Clinical judgment is in general laughable.

Clinicians (a) are dealing with a small sample of data; and (b) their judgment is
overwhelmed by a tiny sample-within-the-small-sample which is the extreme events
they actually recall.

My friends and I laugh hysterically after close study of Kahneman. ALL

professionals tend to be pathetic/horrid/wretched decision makers.

The power of clinical judgment? Most/all fund managers suck over even the mid-
term, let alone the long-term. Try a Vanguard PURE Index fund if you want results.
(THIS IS NOT A RECOMMENDATION.)

Re clinical judgment: HR experts are being made to look like, um, non-geniuses
re hiring, etc., by Big Data/algorithms.

242
 The funny
Re judgment:
thing is how
relatively simple the
algorithm can be that
tops professional
human judgment.

243
The research, alas, snickers at common sense, too. Common sense is more or less a
synonym for faulty judgment.

Mr. Gladwell gave us Blink. Research is clear: Intuition is laughably bad in most
cases.

Kahnemans data suggest thinking

out of the box is the supreme enemy
of sound decision making.
CDC uses Big Data VERY accurately to predict the path of a flu outbreak. Odd
correlations are better predictors than local disease data.

The days of sampling are coming to an end. Big Data often deals with population
data.

NYC software start-up looks forward to the day when data studs will make more
or less 100% of medical clinical judgments. (I do not exaggerateit may or
may not be true; but even the fact that its thinkable enough to attract big venture
money is telling.)

Tom Asaker: Your judgment is probably decent. Unfortunately, your desires

overrule it most of the time.
Tom, I think theres truth to thatbut my confidence wanes by the hour. Its more
fundamental than emotional roadblocks. We are always dealing with small samples.

The first principle is that you must not fool yourself, and you are the easiest person
to fool.Richard Feynman (courtesy Tim Fargo)

This tweetstream constitutes bitter medicine. And the Big Data, etc., etc., road has a
million twists & turns ahead. There is only one sin: Keeping ones head in the sand.

STUDY. STUDY.
Hence:

STUDY.
244
Aint it a bitch to
learn definitively that
your judgment
sucks?* Im joking
but Im not. And: I
sure as hell aint
exempting myself!

*For a definitive list of 166 cognitive biases, see

http://en.wikipedia.org/wiki/List_of_cognitive_biases.

245
I have spent a lot of time in the last 12 months in
denial concerning this stuff. Im still in denial
but a lot less so than a year ago. I have now
reached the point of being genuinely

OPEN-MINDED.
New World Order: FOUR MINUTES after your [Stefan Sterns] tweet [about
Julian Birkinshaws book Becoming a Better Boss], I COMPLETED downloading it
onto my iPad.

Stefan Stern: HNY. [Happy New Year.]

Tim Fargo: The consistent problem is, even with data: It often gets shaped to
support our prior opinion or discarded if not in agreement. Humans!!!

Usually we shoehorn new data [from info that is inconsistent with our extant beliefs]
into our prior model; our beliefs are untainted by the new contradictory evidence.

Cindy Potts: Maybe excessive comfort in your judgment is a sign youve stopped
growing/learning.

TP: Uncomfortable discussion [for many]. Losing followers. Cool.

246
The first principle is
that you must not
fool yourself, and you
are the easiest person
to fool.* Richard Feynman (courtesy Tim Fargo)

*Repeat: I do not view this

tweetstream as negative. We simply
need to educate ourselves and strip off
the rose-colored glassesbetter
judgments, or at least less-bad
judgments, may well ensue. But:

Blinders NEVER pay!

247
 XXXVIII. Culture Comes FIRST
What matters most to a company over
WSJ/0910.13:
time? Strategy or culture?
Dominic Barton,* MD, McKinsey & Co.: Culture.
Culture
Bill Walsh,* NFL Hall of Fame Coach:

precedes positive results. It

doesnt get tacked on as an afterthought on the
way to the victory stand.
If I could have chosen not
Lou Gerstner,* former CEO, IBM:
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.
*Note that all three of these CEOs are/were charter members of the Hard-ass
School of Management. This was a realization that emerged for each one
over time, but is stated hereUNEQUIVOCALLY.

248
 Hard is soft!
Soft is hard!*

*People. Customers. Values. Corporate culture. Somemost?call these variables soft. Instead they say
with a near sneer: Show me the numbers and the plans!

Surely there is room (and need!) for the numbers and a plan. But they are the real soft stuffmalleable and
manipulable. (As we saw/continue to see time and again during the 2007+ economic crisis.)

The truly hard stuff cannot be faked or exaggerated: The relationships with our customers and our own
people and our communities. The spirit and grit of the enterprise. Integrity. A willingness to laugh at good tries
that go awrythe heart of innovation success. And so on.

Hard is soft. Soft is hard.

In Search of EXCELLENCE in just SIX words!

249
 Culture With a 100X BANG

hundreds
I am

of times better here

[than in my prior hospital
assignment] because of the support
system. Its like you are working in
an organism; you are not a single
cell when you are out there
practicing.Dr. Nina Schwenk, Mayo Clinic*

*One of the two core values instilled by Dr. William Mayo (Mayo Clinic) in

1910 was, effectively, practicing team medicine. Designing the practice

around the patient, or patient-centered care, as some call its rare manifestation today,
was the other core value. At Mayo, upon occasion prominent M.D.s have been asked to
leave because of their inability to fully grasp the team-practice concept.

250
 Culture UNVARNISHED

There is a ton of high falutin stuff written about corporate culturehey, Ive
written some of it. But the unvarnished flavors appeal most to me. Former Burger
King CEO Barry Gibbons is a pal. He orchestrated a magical turnaround at a
troubled firm at a tough time. And the heart of the matter, which he largely
achieved, is describedUNVARNISHEDhere:

I didnt have a mission statement

at Burger King. I had a dream. Very
simple. It was something like,
Burger King is
250,000 people, every
one of whom gives a
shit. Every one. Accounting.
Systems. Not just the drive-through.
Everyone is in the brand. Thats
what were talking about, nothing
less.

251
 Culture Give-A-Shit-ism
Forget culture/vision/stories/narratives. Skip the pseudo-technical
language. Dont call the consultants or coaches. Inspired by ex-BK chief Barry
Gibbons, how about

Plain-Vanilla-Insanely-Important-Self-
Managed-Give-A-Shit-ism? Give-A-Shit
about each other, about the work,
about the community.
#1: A desperate need
Give-A-Shit-ism Attribute

(desperate, not urgent; need, not

desire) to help others grow.
Mike Brown: Commit to your peoples growth or dont come at all.

Respect is by far the most powerful

motivator of them all.
Philip Hopewell on respect: Lean forward and
listen.
TP: That simple tweet must be read carefully to have the impact it deserves.

Thank
More, subtle but not subtle, adapted from a tweet by Trevor Gay: Its
you for the ordinary, not the extraordinary, that matters
most. Thats the true sign of your awareness!

252
 Culture ADDENDA

My lifes work (redux): Hard is soft. Soft is hard. Hence, I am adding an

APPENDIX on Culture to this treatise, Excellence. NO EXCUSES. It is
an updated version of a paper I drafted in 2012: Systems Have Their Place:
SECOND Place. The foreword thereto:

There is no doubt whatsoever about the importance of systems

even in a 1-person business. For most of us, the to do lista
system if ever there were oneis an imperative aid to making it
through the day. On the other hand, there is an other hand. That
to do list is utterly worthless without the will and discipline to
follow up with executioni.e., actually doing the to dos. And
if that execution and doing involves others help, as it usually
does, then our attitude will differentiate between success and
failure.

Fact is, we could get by without the systemthe to do list

per se. But we could not get by or get anything done without the
culturethe discipline to follow up and attitude required to
effectively work with others.

Hence, the title of this essay: Systems Have Their Place:

SECOND Place. Herein are 10 casesfrom the U.S. Air Force
to Mayo Clinic to Toyotain which systems, though of the
utmost importance, were toothless without the right
organizational culture to abet and sustain performance
excellence.

(If youre interested, as noted, the entire paper is added at the end as an Appendix.)

253
XXXIX. Women BUY! Women RULE!
This Will Be the Womens Century

I speak to you with a feminine voice. Its the voice of

democracy, of equality. I am certain, ladies and gentlemen, that
this will be the womens century. In
the Portuguese language, words such as life, soul, and hope are
of the feminine gender, as are other words like courage and
sincerity.President Dilma Rousseff of Brazil, first woman to keynote the
United Nations General Assembly

Forget China, India and the Internet: Economic

Growth Is Driven by Women. (Headline.) Even today in
the modern, developed world, surveys show that parents still prefer to
have a boy rather than a girl. One longstanding reason boys have been
seen as a greater blessing has been that they are expected to become
better economic providers for their parents old age. Yet it is time for
parents to think again. Girls may now be a better investment. Girls
get better grades in school than boys, and in most developed countries
more women than men go to university. Women will thus be better
equipped for the new jobs of the 21st century, in which brains
count a lot more than brawn. And women are more likely to
provide sound advice on investing their parents nest egge.g.:
surveys show that women consistently achieve higher financial
returns than men do. Furthermore, the increase in female
employment in the rich world has been the main driving force of growth
in the last couple of decades. Those women have contributed more to
global GDP growth than have either new technology or the new giants,
India and China.

Source: Economist

254
 W > 2X (C + I)*
*Women now drive the global economy. Globally, they
control about $20 trillion in consumer spending, and
that figure could climb as high as $28 trillion in the next
five years. Their $13 trillion in total yearly earnings could reach $18
trillion in the same period. In aggregate, women represent a growth
market bigger than China and India combinedmore than twice as big
in fact. Given those numbers, it would be foolish to ignore or
underestimate the female consumer. And yet many companies do just
thateven ones that are confidant that they have a winning strategy
when it comes to women.
Source: Michael Silverstein and Kate Sayre, The Female Economy,
Harvard Business Review
Women as Decision Makers/Various sources
Home Furnishings 94%
Vacations 92% (Adventure Travel 70%/$55B travel equipment)
Houses 91%
D.I.Y. (major home projects) 80%
Consumer Electronics 51% (66% home computers)
Cars 68% (influence 90%)
All consumer purchases 83% *
Bank Account 89%
Household investment decisions 67%
Small business loans/biz starts 70%
Health Care 80%

*In the USA women hold > 50% managerial positions

including > 50% purchasing officer positions; hence women also
make the majority of commercial purchasing decisions (Martha
Barletta/TrendSight Group).

255
Women ARE the majority market.
Fara Warner/The Power of the Purse

Female users are the unsung heroines behind the most

engaging, fastest growing, and valuable consumer
internet and e-commerce companies. Especially when it comes
to social and shopping, women rule the Internet. In e-commerce, female
purchasing power is clear. Sites like Zappos, Groupon, Gilt Groupe,
Etsy, and Diapers are all driven by a majority of female customers.
According to Gilt Groupe, women are 70% of the customers and 74%
of revenue. But whats different now is an exciting new crop of e-
commerce companies. One Kings Lane, Plum District, Stella & Dot,
Rent the Runway, Modcloth, BirchBox, Shoedazzle, Zazzle, and
Shopkick are just a few examples of companies leveraging girl power.
The majority of these companies were also founded by women, which is
also an exciting trend. And take a look at four of the new
horsemen of the consumer webFacebook, Zygna,
Groupon, and Twitter. The majority of all four properties
users are female. Make that horsewomen.
So, if youre at a consumer web company, how can this insight help
you? Would you like to lower your cost of customer acquisition? Or
grow revenue faster? Maybe you would benefit from having a larger
base of female customers. Do you do enough product and user interface
testing with female users? Have you figured out how to truly unleash
the shopping and social power of women? You could also take a
look at your team. Do you have women in key positions?
Aileen Lee, Kleiner Perkins Caufield & Byers (05.06.2011)

256
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.
Source: Women Are Drivers of Global Growth, Aude Zieseniss de Thuin, founder
and president of the Womens Forum for the Economy and Society (Financial
Times)

Some Suggested (REQUIRED) Reading

**Marketing to Women: How to Increase Your Share of
the Worlds Largest Market, by Martha Barletta
**The Power of the Purse: How Smart Businesses Are
Adapting to the Worlds Most Important Consumers,
by Fara Warner
**Why She Buys: The New Strategy for Reaching the
Worlds Most Powerful Consumers, by Bridget Brennan
(Key word: Worldthis applies literally everywhere)
**What Women Want: The Global Market Turns Female
Friendly, by Paco Underhill
**The Soccer Mom Myth: Todays Female Consumer, Who
She Really Is, Why She Really Buys, by Michele Miller
and Holly Buchanan
**Influence: How Womens Soaring Economic Power
Will Transform Our World for the Better, by
Maddy Dychtwald
**The Female Brain, by Louann Brizendine, M.D.

257
Headline 2020: Women Hold
Professional Jobs
80 Percent of Management and

Source: The Extreme Future: The Top Trends That Will Reshape the World in the
Next 20 Years, James Canton

AS LEADERS, WOMEN
RULE: New Studies find that female managers outshine their
male counterparts in almost every measure
Source: TITLE/Special Report/BusinessWeek

Womens Strengths Match New Economy

Imperatives: Link [rather than rank] workers; favor
interactive-collaborative leadership style [empowerment
beats top-down decision making]; sustain fruitful
collaborations; comfortable with sharing information;
see redistribution of power as victory, not surrender;
favor multi-dimensional feedback; value technical &
interpersonal skills, individual and group contributions
equally; readily accept ambiguity; honor intuition as
well as pure rationality; inherently flexible; appreciate
cultural diversity.
Source: Judy B. Rosener, Americas Competitive Secret: Women Managers

258
Womens Negotiating Strengths
*Ability to put themselves in their
counterparts shoes
*Comprehensive, attentive, and detailed
communication style
*Empathy that facilitates trust-building
*Curious and attentive listening
*Less competitive attitude
*Strong sense of fairness and ability to persuade
*Proactive risk manager
*Collaborative decision-making
Source: Horacio Falcao, Cover story/May 2006, World Business, Say It Like a
Woman: Why the 21st-century negotiator will need the female touch

Power Women 100/Forbes 10.25.10

26 female CEOs of Public Companies:

Vs. Men/Market: +28%* (*Post-appointment)

Vs. Industry: +15%

McKinsey & Company found that

the international companies with
more women on their corporate
boards far outperformed the average
company in return on equity and
other measures. Operating profit was
56 percent higher.
259
Research suggests that to succeed,
start by promoting women.
Source: Nicholas Kristof, Twitter, Women, and Power, New York Times, 1024.13

TAKE THIS QUICK QUIZ: Who manages more things at once?

Who puts more effort into their appearance? Who usually
takes care of the details? Who finds it easier to meet new
people? Who asks more questions in a conversation? Who is
a better listener? Who has more interest in communication
skills? Who is more inclined to get involved? Who
encourages harmony and agreement? Who has better
intuition? Who works with a longer to do list? Who enjoys
a recap to the days events? Who is better at keeping in touch
with others?

Selling Is a Womans Game:

Source/from the back cover:
15 Powerful Reasons Why Women Can Outsell
Men, Nicki Joy & Susan Kane-Benson

Women Beat Men at Art of

InvestingHeadline, Miami Herald, reporting on a study by Profs.
Terrance Odean and Brad Barber, UC Davis (Cause: Guys are in and out of
stocks more often; women choose carefully and hold on for the long term)

260
 Portrait of a Female Investor

1. Trade less than men do

2. Exhibit less overconfidencemore likely to know
what they dont know
3. Shun risk more than male investors do
4. Less optimistic, more realistic than their male
counterparts
5. Put in more time and effort researching possible
investmentsconsider details and alternate points
of view
6. More immune to peer pressuretend to make
decisions the same way regardless of whos watching
7. Learn from their mistakes
8. Have less testosterone than men do, making them
less willing to take extreme risks, which, in turn
could lead to less extreme market cycles
Source: Warren Buffett Invests Like a Girl: And Why You Should Too,
Louann Lofton, Ch 2, The Science Behind the Girl

The growth and success of women-owned businesses is

one of the most profound changes taking place in the
business world today.Margaret Heffernan, How She Does It
*U.S. firms owned/controlled by Women: 10.6 million (48% of all firms)
*Growth rate of Women-owned firms vs. all firms: 3X
*Rate of jobs created by Women-owned firms vs. all firms: 2X
*Ratio: total payroll Women-owned firms vs. total F500 firms: > 1.0
*Ratio of likelihood of Women-owned firms staying in business vs. all
firms: > 1.0
*Growth rate of Women-owned companies with revenues of
> $1,000,000 and > 100 employees vs. all firms: 2X
Source: Margaret Heffernan, How She Does It

261
Warren
Buffett
Invests Like a
Girl: And
Why You
Should, Too
Louann Lofton

262
Girls are the new boys.The Daily Mail, 0425.2007, Why todays women
want a girl

Boys Falling Seven Years Behind Girls

at GCSE Levelheadline, Weekly Telegraph, UK, 10.25.06

THE NEW GENDER GAP: From kindergarten to grad school,

boys are becoming the second sexCover story, BusinessWeek

Women < 30 in big USA cities (as of 2005)*: Earnings > Male counterparts.
(117%)Paco Underhill, What Women Want

Investment in girls education may well be the

highest-return investment available in the
developing world.
Larry Summers (as chief economist at the World Bank)

There are countless reasons rescuing girls is the right thing to do. Its also the smart
thing to do. Consider the virtuous circle: An extra year of primary school boosts girls
eventual wages by 10-20%. An extra year of secondary school adds 15-25%. Girls who
stay in school for seven or more years marry four years later and have two fewer
children than girls who drop out. Fewer dependents per worker allows for greater
economic growth. When girls and women earn income, they re-
invest 90% in their families. They buy books, medicine, bed nets.
For men the figure is more like 30-40%. Investment in girls education
may well be the highest-return investment available in the developing world, Larry
Summers wrote when he was chief economist at the World Bank. The benefits are so
obvious, you wonder why we havent paid attention. Less than two cents of every
development dollar goes to girlsand that is a victory compared to a few years ago
when it was something like one-half cent. Roughly 9 of 10 youth programs are aimed
at boys.

Nancy Gibbs, The Best Investment: If you really want to fight poverty, fuel
growth and combat extremism, try girl power, Time (0214.2011)

Progress is achieved through women.Bernard Kouchner, founder,

Doctors Without Borders (and French foreign minister)

263
 XL. The THREE Rules* **
(*With which I am in full agreement)

(**And then three MORE with which I am in full agreement)

From Michael Raynor and Mumtaz Ahmeds

THE THREE RULES: How Exceptional Companies

Think**:

1. Better before cheaper.

2. Revenue before cost.
3. There are no other rules.

**From a database of over 25,000 companies from hundreds of industries covering

45 years, they uncovered 344 companies that qualified as statistically exceptional.

264
 The Economy Is Scary
But Smart Companies Can Dominate

They manage for valuenot for EPS.

They keep developing human capital.
They get radically customer-centric.

Source: Goeff Colvin, Fortune

265
 XLI. PI6/Personal Impact SIX

Outwork em.
Outread em.
Outlast em.
Show Up.
LISTEN.
Keep an Open Mind.

266
 Big SIX (Redux)*

1. Hello.
2. Thank you.
3. Eye contact.
4. Fierce listening.
5. What do you think?
6. How can I help?
*Another Big 6, posted by me at Twitter and applauded by the twitterati.

267
 XLII. BLD

You can take

Fact:

any damned
attitude you
choose to
work today!
(Its your BLD/ Biggest Life Decision.)
268
 Work On Me FIRST
Everyone thinks of changing the world, but no one
thinks of changing himself.Leo Tolstoy

To develop others, start

with yourself. Marshall Goldsmith

Being aware of yourself and how you affect

everyone around you is what distinguishes a
superior leader.Edie Seashore (strategy + business #45)

Leadership is self-knowledge. Successful leaders

are those who are conscious about their behavior
and the impact it has on the people around them.
They are willing to examine what behaviors of their
own may be getting in the way. The toughest
person you will ever lead is yourself. We cant
effectively lead others unless we can
lead ourselves.Betsy Myers, Take the Lead: Motivate, Inspire,
and Bring Out the Best in Yourself and Everyone Around You

269
How can a high-level leader like _____ be so out
of touch with the truth about himself? Its more
common than you would imagine. In fact, the
higher up the ladder a leader climbs,
the less accurate his self-assessment
is likely to be. The problem is an acute lack of
feedback [especially on people issues].
Daniel Goleman (et al.), The New Leaders

Work on me
first. Kerry Patterson (et al.), Crucial Conversations

270
You will never change your life until you change
The secret of
something you do daily.

your success is found in

your daily routine. John C. Maxwell

The biggest problem I shall

ever face: the management
of Dale Carnegie.
Dale Carnegie, diary of

271
 XLII. Hit the Books. HARD.

If I had to pick one

failing of CEOs,
its that they dont
read enough.
Co-founder of one of the worlds largest and successful
investment services firms in the USA/world (from a dinner
discussionNovember 2013)

272
 Some Stuff to Read NOW:
The (Utterly Insane*) (*And Getting
Evermore Insane) New World Order
Let me be clear. This is my recent reading list for me. There is rhyme
and reason to itits an effort to try to at least stay close to the hyper-changing

action. But it is NOT a systematic best of in any way, shape, or form.

Race Against The Machine: How the Digital Revolution Is Accelerating Innovation,
Driving Productivity, and Irreversibly Transforming Employment and the Economy
Eric Brynjolfsson & Andrew McAfee
The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant
TechnologiesErik Brynjolfsson & Andrew McAfee
The Soft Edge: Where Great Companies Find Lasting SuccessRich Karlgaard
Average Is Over: Welcome to the Hyper-MeritocracyTyler Cowen
Big-Bang Disruption: A New Kind of Innovator Can Wipe Out Incumbents
in a FlashLarry Downes & Paul Nunes
The Crowdsourced Performance Review: How to Use the Power of Social Recognition
to Transform Employee PerformanceEric Mosley
Addiction by Design: Machine Gambling In Las VegasNatasha Dow Schll
Antifragile: Things That Gain from DisorderNassim Nicholas Taleb
Automate This: How Algorithms Came to Rule Our WorldChristopher Steiner
Big Data: A Revolution That Will Transform How We Live, Work, and Think
Viktor Mayer-Schnberger & Kenneth Cukier
Conscious Capitalism: Liberating the Heroic Spirit of BusinessJohn Mackey &
Raj Sisodia
Enough. True Measures of Money, Business, and LifeJohn Bogle
Creation: How Science Is Reinventing Life ItselfAdam Rutherford
AmpedDaniel Wilson
Employees First, Customers Second: Turning Conventional Management Upside
DownVineet Nayar
Everything Bad Is Good For You: How Todays Popular Culture Is Actually Making
Us SmarterSteven Johnson
Extra Lives: Why Video Games MatterTom Bissell
Fab: The Coming Revolution on Your Desktopfrom Personal Computers to Personal
FabricationNeil Gershenfeld

273
Fast Future: How the Millennial Generation Is Shaping Our WorldDavid Burstein
The Filter Bubble: What the Internet Is Hiding From YouEli Pariser
For the Win: How Game Thinking Can Revolutionize Your Business
Kevin Werbach & Dan Hunter
The Gamification Revolution: How Leaders Leverage Game Mechanics to Crush the
CompetitionGabe Zichermann & Joselin Linder
How to Create a Mind: The Secret of Human Thought RevealedRay Kurzweil
Join the Club: How Peer Pressure Can Transform the WorldTina Rosenberg
Knowledge and Power: The Information Theory of Capitalism and How It Is
Revolutionizing Our WorldGeorge Gilder
The Lean Startup: How Todays Entrepreneurs Use Continuous Innovation to Create
Radically Successful BusinessesEric Ries
Loyalty 3.0: How Big Data and Gamification Are Revolutionizing Customer and
Employee EngagementRajat Paharia
Makers: The New Industrial RevolutionChris Anderson
Minecraft: The Unlikely Tale of Markus Notch Persson and the Game That
Changed EverythingDaniel Goldberg & Linus Larsson
Models Behaving Badly: Why Confusing Illusion with Reality Can Lead to Disaster on
Wall Street and in LifeEmanuel Derman
Better, Stronger, Faster: The Myth of an American Decline and the Rise of a New
EconomyDaniel Gross
Numbersense: How to Use Big Data to Your AdvantageKaiser Fung
Open Services Innovation: Rethinking Your Business to Grow and Compete in a New
EraHenry Chesbrough
The Org: The Underlying Logic of the OfficeRay Fisman & Tim Sullivan
The Power of Co-Creation: Build It with Them to Boost Growth, Productivity, and
ProfitsVenkat Ramaswamy & Francis Gouillart
Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie, or Die
Eric Siegel
Present Shock: When Everything Happens NowDouglas Rushkoff
Quiet: The Power of Introverts in a World That Cant Stop TalkingSusan Cain
Reality Is Broken: Why Games Make Us Better and How They Can Change the
WorldJane McGonigal
Women and Gaming: The Sims and 21st Century LearningJames Paul Gee &
Elisabeth Hayes
Writing on the Wall: Social Mediathe First 2,000 YearsTom Standage
The Everything Store: Jeff Bezos and the Age of AmazonBrad Stone
Rewire: Digital Cosmopolitans in the Age of ConnectionEthan Zuckerman
Robot FuturesIllah Reza Nourbakhsh
The Rise of the Creative ClassRichard Florida
The Singularity Is Near: When Humans Transcend BiologyRay Kurzweil

274
The Shareholder Value Myth: How Putting Shareholders First Harms Investors,
Corporations, and the PublicLynn Stout
The Signal and the Noise: Why So Many Predictions FailBut Some Dont
Nate Silver
Smart Business, Social Business: A Playbook for Social Media in Your Organization
Michael Brito
Social Business By Design: Transformative Social Media Strategies for the Connected
CompanyDion Hinchcliffe & Peter Kim
The Social Employee: How Great Companies Make Social Media Work
Cheryl Burgess & Mark Burgess
The Social Organization: How to Use Social Media to Tap the Collective Genius of
Your Customers and EmployeesAnthony Bradley & Mark McDonald
The Social Conquest of EarthEdward O. Wilson
Taming the Big Data Tidal Wave: Finding Opportunities in Huge Data Streams with
Advanced AnalyticsBill Franks
Thinking, Fast and SlowDaniel Kahneman
Predictably Irrational: The Hidden Forces That Shape Our DecisionsDan Ariely
To Save Everything, Click Here: The Folly of Technological Solutionism
Evgeny Morozov
Tubes: A Journey to the Center of the InternetAndrew Blum
Virus of the Mind: The New Science of the MemeRichard Brodie
The Meme MachineSusan Blackmore
Memetics: Memes and the Science of Cultural EvolutionTim Tyler
The Smart Swarm: How Understanding Flocks, Schools, and Colonies Can Make Us
Better at Communicating, Decision Making, and Getting Things DonePeter Miller
Wait: The Art and Science of DelayFrank Partnoy
Wired For War: The Robotics Revolution and Conflict in the 21st Century
P.W. Singer
You Are Not a Gadget: A ManifestoJaron Lanier
Youtility: Why Smart Marketing is about Help not HypeJay Baer
The Rise of the Expert CompanyHow Visionary Companies Are Using Artificial
Intelligence to Achieve Higher Productivity and ProfitsEdward Feigenbaum,
Pamela McCorduck, and Penny Nii
Redesigning Humans: Choosing Our Genes, Changing Our FutureGregory Stock
Wetware: A Computer in Every Living CellDennis Bray
Worm: The First Digital World WarMark Bowden
The Department of Mad Scientists: How DARPA Is Remaking Our World, from the
Internet to Artificial LimbsMichael Belfiore
The Coming Jobs WarJim Clifton
Future Perfect: The Case for Progress in a Networked AgeSteven Johnson
Not For Profit: Why Democracy Needs the HumanitiesMartha Nussbaum

275
 Some (Other) (Very Good) Stuff to Read:
Mostly New, All Eternal Verities
Better By Mistake: The Unexpected Results of Being WrongAlina Tugend
Being Wrong: Adventures in the Margin of ErrorKathryn Schulz
The Collaborative Habit: Life Lessons For Working TogetherTwyla Tharp
& Jesse Kornbluth
Command and Control: Nuclear Weapons, the Damascus Accident, and the Illusion of
SafetyEric Schlosser
The Cost of Bad Behavior: How Incivility Is Damaging Your Business and to Do
About ItChristine Pearson & Christine Porath
Choosing Civility: The Twenty-five Rules of Considerate ConductP.M. Forni
Creative Confidence: Unleashing the Creative Potential Within Us AllTom Kelley
& David Kelley
Crucial Confrontations: Tools for Resolving Broken Promises, Violated Expectations,
and Bad BehaviorKerry Patterson, Joseph Grenny, Ron McMillan & Al Switzler
Crucial Conversations: Tools for Talking When Stakes Are HighKerry Patterson,
Joseph Grenny, Ron McMillan & Al Switzler
Fierce Conversations: Achieving Success at Work and in Life, One Conversation at a
TimeSusan Scott
Listening Pays: Achieve Significance Through the Power of Listening
Rick Bommelje
Power Listening: Mastering the Most Critical Skill of AllBernard Ferrari
Flow: The Psychology of Optimal ExperienceMihaly Csikszentmihalyi
Fooled By Randomness: The Hidden Role of Change in Life and in the Markets
Nassim Nicholas Taleb
Helping: How to Offer, Give , and Receive HelpEdgar Schein
How to Win Friends and Influence PeopleDale Carnegie
Influence: The Psychology of PersuasionRobert Cialdini
The Leader Who Had No Title: A Modern Fable on Real Success in Business and in
LifeRobin Sharma
Management Lessons From Mayo Clinic: Inside One of the Worlds Most Admired
Service OrganizationsLeonard Berry & Kent Seltman
Practice Perfect: 42 Rules for Getting Better at Getting BetterDoug Lemov,
Erica Woolway, and Katie Yezzi
Turn the Ship Around!: How to Create Leadership at Every LevelDavid Marquet
What You Can Change And What You Cant: The Complete Guide to Successful
Self-ImprovementMartin Seligman
The Little Book of Talent: 52 Tips for Improving Your SkillsDaniel Coyle
The Power of Positive Deviance: How Unlikely Innovators Solve the Worlds Toughest
ProblemsRichard Pascale, Jerry Sternin & Monique Sternin
Retail Superstars: Inside the 25 Best Independent Stores in America
George Whalin
Lords of Strategy: The Secret Intellectual History of the New Corporate World
Walter Kiechel

276
 XLIII. The Second Machine Age
by Erik Brynjolfsson and Andrew McAfee

The greatest shortcoming of the human race is our inability to understand the
exponential function.Albert A. Bartlett (from Erik Brynjolfsson and Andrew
McAfee, The Second Machine Age, Moores Law and the Second Half of the
Chessboard)

The issue, circa 2014, is not big change, it is

ACCELERATING Big Change. Time to adapt is

evaporating!

[Some argue] that the true work of innovation is not coming up with something big
and new, but instead recombining things that already exist. And the more closely we
look, the more this recombinant view makes sense.

TP: Creativitythat matters is not predominantly of the gee

whiz variety. Creativity is the ability to integrate stuff, a
very different kettle of fish.
Organizational Coinvention [coinvention of organization and technology]: While
a one-for-one substitution of machines sometimes occurs, a broader reorganization
in business culture may have been an even more important path for skill-based
change. ... [In some industries], each dollar of computer capital was often the
catalyst for more than ten dollars of complimentary investments in organization
capital.

The new stuff is only part of the point.

TP:

Complete re-invention of organizations

and networks of organizations is the
real payoff!

277
The greatest
shortcoming of the
human race is our
inability to
understand the
exponential
function. Albert A. Bartlett (from Erik
Brynjolfsson and Andrew McAfee, The Second Machine Age, Moores Law and the
Second Half of the Chessboard)

278
(1) Person interviewed by the authors re TurboTax: No way. I dont use an H&R
Block tax preparer any more. Ive switched to TurboTax software. Its only $49 and
much quicker and more accurate. Brynjolfsson and McAfee: The creators of
TurboTax are better offbut tens of thousands of tax preparers now find their jobs
and incomes threatened.

(2) CEO interviewed by the authors says he installed new infotech equipment
before the Great Recession, but did not cut payroll when profits were soaring. And
then: When the recession came, business as usual was obviously not sustainable,
which made it easier to implement a round of painful streamlining and layoffs. As
the recession ended and profits and demand returned, the jobs doing routine work
were not restored.

(3) For most of the nineteenth and twentieth centuries, employment usually
rebounded after each recession, but since the 1990s employment didnt recover
briskly after recessions. Its not coincidence that as the computerization of the
economy advanced, post-recession hiring patterns changed.

These three quotes are the heart of

TP:

the matter.
Every digital app developer, no matter how humble its offices or how few its staff,
almost automatically becomes a micro-multinational, reaching global audiences.

TP: A wonderful story.

The Gross National Product does not include

the beauty of our poetry or the intelligence of
our public debate. It measures neither our wit
nor our courage, neither our wisdom nor our
learning, neither our compassion nor our
devotion. It measures everything, in short,
except that which makes life worthwhile.RFK
TP: GDP is an important measure. PERIOD. But it aint the whole ball gamenot
by a long shot!

279
 Race AGAINST The Machine:
How the Digital Revolution Is Accelerating
Innovation, Driving Productivity, and Irreversibly
Transforming Employment and the Economy
by Erik Brynjolfsson and Andrew McAfee

The root of our problem is not that were in a Great Recession or a Great Stagnation,
Great Restructuring
but rather that we are in the early throes of a . Our
technologies are racing ahead, but our skills and organizations are lagging behind.

The median worker is losing the race against the

machine.Erik Brynjolfsson and Andrew McAfee, Race Against the
Machine

... breakage of the historic link between value creation and job creation .../Great
Recession: ... lack of hiring rather than increase in layoffs ...

40 Years: Median inflation-adjusted wages, men 30-50 with jobs, 1969-2009: $33K,
-27%The Slow Disappearance of the American Working Man, Bloomberg
Businessweek/08.11.13

The U-shaped Curve Phenomenon:

High-skilled:Waaaaay Up!!!
Low-skilled: Stable/Up.
Middle: Down/Down/Down.

TP: Yikes.
280
 XLIV. So I Missed By 5-10 Years. SO WHAT?
Thrive Through WOW. NOW.
Or else. (Not Pretty.)
I SAID 2015.
It looks more like itll be 2020, maybe 2025.

Self-congratulatory remarks are to be avoided like the plague. Nonetheless, I must

acknowledge that I began the 22 May 2000 Time cover story I authored (What Will
We Do For Work?) with this: I believe that ninety percent of white-
collar jobs in the U.S. will be either destroyed or altered beyond
recognition in the next 10 to 15 years. The three causes I enumerated
were destructive (game-changing) competition, technology/artificial intelligence
(algorithmic substitution), and globalization/outsourcing.

The prior year, 1999, I had published a three-book set, jointly called The Work
Matters. The three:

The Project50: Fifty Ways to Transform

Every Task into a Project That Matters!

The Brand You50: Fifty Ways to Transform

Yourself from an Employee into a Brand That
Shouts Distinction, Commitment, and Passion!

The Professional Service Firm50:

Fifty Ways to Transform Your Department into a
Professional Service Firm Whose Trademarks Are
Passion and Innovation!

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In 2014, this 3-pronged revolution has not progressed as much as I supposed. But
there is little doubt that the acceleration of change will more or less bring it to its
(frightening) apex in the next 5-10 years.

But why oh why oh why must it be frightening? Why not

Liberating?
Fun?
Exciting?
Wall-To-Wall WOW?
Though a word would be changed here and there if the pub date was 2014 instead of
1999, the logic would not have changed one dollop. There was a quote I used in
1999: A bureaucrat is an expensive microchip.

Indeed.

And the answer? Or, rather THE answer is in my (not so) humble opinion
High Value Added Projects. Those projects would be manned (and womaned) by
free=spirited, imaginative people, whom I label Brand Yous. And the configuration
of these groups would mimic, in my (not so) humble opinion, something not so new;
namely professional service firms.

To use my shorthand:

WOW Projects.
Brand You(s).
PSFs.

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I will go a step further in this space and provide the three 50 Lists. Ill just use the
item titles, which will at times be a bit too shorthand-ish. But Im sure youll get the
drift.

Here we go:

The Project 50:

All Work Becomes WOW Projects
I. Create!
Whats with this so-called inventing/finding a WOW! Project? You get an
assignment, right?

1. Reframe:Never ... Ever! ... Accept a project/

assignment as given!
2. Translate your daily experiences into cool stuff to do.

2A. Become a Benchmarking Fanatic: Look at every-small-thing-that-happens-to-

you as a Golden Learning Opportunity.

3. Improve your vocabulary! Learn to love WOW! Use the word.

WOW!

4. There are no small projects: In every little form or procedure, in every

little problem there usually lurks a B-I-G Project!

4A. Convert todays annoying chore into a WOW! Project. The B-I-G Idea:
Theres no such thing as a GIVEN.

5. Put on the brakes! Dont betray WOW!

6. Love makes the world go round!

7. Will itthe project, our babybe beautiful? Yes ... beautiful!

8. Design-Is-It. I.e.: One of the single most powerful forces in the whole bloody
universe.

9. Is the project revolutionary? (Are you sure?)

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10. Is the Web factored into the project? In a B-I-G way?

11. Impact. Henry James asked this, as his ultimate question, of an artists work:
Was it worth doing?
11A. Made anybody(s) angry lately?

12. Raving Fans!

12A. Women-as-Raving Fans. Women take to products/servicesand, thence,

project deliverablesfor (very) different reasons than men.

13. Pirates-on-the-high-seas. We are on a Mission/Crusade. We plan

to upset the applecart (convention wisdom) Big Time ... and Make a Damn
Difference.

14. If you can (hint: you can!), create a place. That is ... pirates need ships at sea
and caves on land. (Safe houses in spy-speak.)

15. Put it in your resume. Now! Picture yourself crossing the finish line.

16. Think RAINBOW!

17. Think ... or rethink ... or reframe ... your concept ... Into a business plan.

18. Think/obsess ... D-E-A-D-L-I-N-E. Be ridiculously/absurdly/insanely demanding

of yourself/your little band of renegades.

19. Find a Wise Friend. WOW Projects Aint Easy! They Stretch You, Stress You,
and Often Vex You. And the Organization.

20. Findand then nurturea few (very few) co-conspirators.

20A. Find at least one user/co-conspirator. NOW. Think user from the start.

21. Consider carrying around a little card that reads:

WOW!
BEAUTIFUL!
REVOLUTIONARY!
IMPACT!
RAVING FANS!

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II. Sell!
Who ever heard of a sales chapter in a project management book?

Damn few is the answer. (None?) And therein lies the problem. WOW! Projects must
be sold ... to team members, higher-ups, freaky first-users, and ultimately customers-at-
large. Learning to s-e-l-l is a hefty part of the battle; it forces clarity, focus, drive, faith.

22. Be S-U-C-C-I-N-C-T. Describe your project (its benefits and its WOW!) in T-H-
R-E-E minutes.

22A. Metaphor time! The pitchand every aspect of the projectworks best if
there is a compelling theme/image/hook that makes the whole thing cohere,
resonate, and vibrate with life.

23. Sales means selling ... Everyone!

24. Hey: WOW! Project Life = Sales. Right? So ... work consciously on BUZZ. Get
visible and stay visible.

25. Do your Community Work. Start to Expand the Network! A.S.A.P.

26. Last is as good as first. If they support you ... they are your friends.

27. Preach to the choir! Never forget your friends!

28. Dont try to convert your enemies. Dont waste time on them.

29. Create an A-Team Advisory Board.

30. Become a Master Bootstrapper. You heard it here first: Too much initial money
... kills!

31. Think B-E-T-A! As in ... Beta Site(s). You

need customer-partners
... as safe-haven testing grounds for rough prototypes.

III. Implement!
Implementation means a detailed plan. Right? Right! Clear assignments of
responsibility? Right again! But ... again ... thats little more than the least of it.

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32. Chunk! Chunk! Chunk! Weve gotta break itour project, now on the
movedown into tidbit/do-it-today/do-it-in-the-next-four-hours pieces.

33. Live ... Eat ... Sleep ... Breathe: Prototype! I.e.: Become an unabashed
Prototyping Fanatic.

33A. Teach prototyping. Prototyping is a corporate culture issue. I.e.: Work to

create a Culture of Prototyping.

34. Play! Find playmates!

35. Scrunch the Feedback Loops!

36. Blow
it up! Play ... and Destruction ... are
handmaidens.
37. Keep recruiting! Iron Law: WOW Projects call for WOW! People. Never stop
recruiting!

37A. Wanted: Court Jester.

38. Make a B-I-G binder! This is the Project Bible. Its the Master Document ... the
macro-map.

39. List mania. Ye shall make lists ... and the lists shall make ye omniscient. (No
joke.)

40. Think (live/sleep/eat/breathe) Timeline/Milestones.

40A. Wanted: Ms. Last Two Percent!

41. Master the 15-Minute Meeting. You can change (or at least organize) the world
in 15 minutes!

42. C-E-L-E-B-R-A-T-E!

42A. Celebrate failures!

43. Station break! The keynote here is action. Exactly right! But: Dont allow the
action fanaticism to steer you off course re
WOW!/Beauty/Revolution/Impact!/Raving Fans.

44. A project has an Identity. Its alive. Project = Life ... Spirit ... Personality.

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45. Cast the net a little/lot farther afield.

46. Its the U-S-E-R, stupid! Never lose sight of the user community.

47. Concoct a B.M.P./Buzz-Management Program. Marketing is Implementation.

IV. Exit!
A time to each and every thing!

48. SELL OUT! Itsbeen us against them ... and one

heck of a ride. But now the time has come to dance with
the suits ... if we really want full impact.
48A. Recruit a Mr. Follow-up ... who is as passionate as you are! (And L-O-V-E-S
Administration.)

49. Seed your freaks into the mainstream ... where they can become mutant viruses
for your (quirky) Point of View!

50. Write up the project history. Throw a Grand Celebratory

Bash!

The Brand You50

Distinct or Extinct

Or: Fifty ways to transform yourself from an employee into a brand that shouts
distinction, commitment, and passion!

1. Its
up to you ... and you alone. Coping rests on your
shoulders. Forget they. This is your life. Period.
1A. When was the last time you asked: What do I want to be?

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2. Youve gotta! Finally: Its the White Collar Revolution! You have no option:
The White Collar Revolution is about to swallow
me/you/us!
3. Answer (my best) (my only????) to the White Collar Revolution: Brand
yourself.

3A. Holy Toledo! Brand You magnified. What if we each had personal Market
Cap?

4. Start now: Use some subset of these fourvery practical!Brand You

assessment tools:

One: Make a Personal Brand Equity Evaluation.

Two: Develop a one-eighth (or one-quarter) page Yellow
Pages ad for Brand You/Me & Co.
Three: Create an eight-word Personal Positioning
Statement.
Four: How about a bumper sticker that describes your
essence?
4A. We need a snapshot!

5. Forget job. Forget tasks.

5A. Commit yourself wholeheartedly to ... the Project Life.

6. Package yourself. Axiom: You (Me!) are a package!

7. INC. yourself.

8. Brand You/Me Inc. is about what you value.

9. Brand You/Me Inc. requires a rich portfolio of attributes and skills.

9A. The big hat rack! Another take: Brand You warriors must wear lots of hats.

10. Ready to play the great game of business?

11. Give the world a clear picture of who you are.

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12. Think job title!

13. You are what you do.

14. Message to Brand You wannabe: Embrace real-world politics of

implementation.

15. Turn crappy little tasks into gold. (VCJ: Volunteer for
Crummy Jobs.)
15A. Work with what youve got! (Damn it!)(And make it special.) (Damn it!)

16. Master bootstrapping.

17. The Brand You nub: A sterling portfolio of WOW! Projects.

17A. You are the WOW!-ness of every project.

18. Focus. Clutter kills WOW.

19. You Are Your Clients I: Think Client.

20. You Are Your Clients II: Obsess on Clients.

21. Competence. You (Me!) have got to be noticeably good at S-O-M-E-T-H-I-N-G.

22. You Are Your Rolodex I. Manage the hell out of your community/network!
Brand You is personal. But its not a loners world.

22A. Loyalty. New loyalty. Not logo loyalty. But Rolodex loyalty. Network loyalty.
Community loyalty. Extended family loyalty.

23. You Are ... Your Rolodex II. You are as broad/wise as your collection of freaks!

24. Design matters! The Big Idea: You (as in Brand You) are a designer. Period.

25. Become a line extension master.

26. You are your Big Ideas.

27. To steer Me Inc. through the white water of change is to dare. Daily.

28. Submit to the performance.

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(29. B-o-s-s-e-s: Brand You should be your cup of tea!)

30. Identity!

31. Remember: a brand is a trust mark.

32. Obsess on your calling cards! It all starts when/where it starts.

33. Build a website that wows. (Period.)

34. Join Toastmasters. You are your own P.R. Agency.

Spreaders of gloom are rarely
35. How about learned optimism?
never!?successful Brand Yous.
36. Renew! Renew! Renew! Renewal = Job 1 For Brand You. Period.

37. Investin yourself. A formal Renewal Investment Plan

(R.I.P.) is a must!
38. Whet your appetite. Again. Again. And yet again.
Learn from ... anyone. Anywhere. Any time. BECOME
A SPONGE ... for Cool Stuff. (Work on exposing
yourself to Cool Stuff.)
******************************

A 50LIST WITHIN A 50LIST: THE RENEWAL50

1. Go to the nearest magazine shop. Now. Spend 20 minutes. Pick up 20twenty!magazines. None
should be ones you normally read. Spend the better part of a day perusing them. Tear stuff out.
Make notes. Create files. Goal: Stretch! Repeat ... monthly ... or at least bimonthly.

2. Go to the Web. Now. Relax. Follow your bliss! Visit at least 15 sites you havent visited before.
Follow any chain that is even a little intriguing. Bookmark a few of the best. Repeat ... at least once a
week.

3. Take off this Wednesday afternoon. Wander the closest mall ... for two hours. Note the stuff you
like. (And hate.) Products, merchandising, whatever. Repeat ... bimonthly.

4. Buy a packet of 3 x 5-inch note cards. Carry them around with you. Always. Record cool stuff.
Awful stuff. Daily. Review your card pack every Sunday. (Obsess on this!)

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5. Going the same place for vacation next year? Why not someplace new? Why not one of those
university-sponsored 12-day trips to explore some weird phenomenon?

6. Project stuck in a rut? Look through your Rolodex. Whos the oddest duck in there? Call her/him.
Invite her/him to lunch. Pick her/his brain for a couple of hours about your project.

7. Create a new habit: Visit your Rolodex. Once a month. Pick a name of someone interesting youve
lost touch with. Take her/him to lunch ... next week.

8. New habit: Youre in a meeting. Someone you dont know makes an interesting contribution. Invite
him/her to lunch ... in the next two weeks.

9. You run across somebody interesting. As a matter of course, ask her (him) whats the best thing
she/hes read in the last 90 days. Order it from Amazon.com ... this afternoon.

10. Take tomorrow afternoon off. Rain or shine. Wander a corner of the city youve never explored
before.

11. Go to the local Rite Aid. Buy a $2 notebook. Title it Observations I. Start recording. Now.
Anything and everything. (Now = Now.)

12. Going out this Saturday night? Go some place new.

13. Having a dinner party next Sunday? Invite somebodyinterestingyouve never invited before.
(Odds are, he/she wont accept. So what? Go for it. Its just like selling encyclopedias. No ring
doorbell = No sale.)

14. Go past a kiosk advertising local Community College Courses for this fall. (Or one of the Learning
Annex catalogues.) Grab a copy. Look it over this evening. Pick a couple of interesting courses and
topics youve always wanted to know more about. Call the professor (with a little detective work, you
can find her). If youre intrigued, sign up and ... at least ... go to the orientation session.

15. Read a provocative article in a business journal. Triggers a thought? Email the author. So what if
you never hear back? (The odds are actually pretty high that you will. Trust me.)

16. At church this Sunday, the pastor announces a new fund drive. Sure youre busy. (Who isnt?) Go
to the organizing meeting after services. Sign up!

17. Youre working with your 13-year-old on his science project. You find youre having fun. Go to
school with him tomorrow ... and volunteer to talk to the class about the topic.

18. A crummy little assignment comes along. But it would give you a chance to work with a group of
people youve never worked with before. Take the assignment.

19. Youre really pissed off at whats going on in your kids school. So run for the school board.

20. You arent really interested in changing jobs. But theres a neat job fair in the next town this
weekend. Go.

21. An old college pal of yours invites you to go on a long weekend by the lake. You never do things like
that. Go.

22. A really cool job opening overseas comes up. It fits your skill set. You couldnt possibly consider it.
Youve got a nine-year-old and your husband is content with his job. At least call someone ... and
find out more about it.

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23. Youre on the fast track. But a fascinating job opens up ... far away. It looks like a detour. But you
could learn something really new. Really cool. Go talk to the guy/gal about it. (Now.)

24. The eighth grade teacher is looking for chaperones for the trip to the natural history museum.
Youre a law firm partner, for Gods sake, making $350,000 a year. Volunteer.

25. You love taking pictures. You pick up a brochure advertising a four-day photography workshop in
Maine next summer. Go to the workshop.

26. A friend of yours, a small-business owner, is going to Thailand on a sourcing trip. She invites you to
join her. Go.

27. Theres a great ball game on ESPN in an hour. Forget it. Go on that walk you love ... that you
havent taken for a year.

28. Im not much on planning. But how about sitting down with your spouse/significant other and
making a list of three or four things youve been meaning to do that are novel ... then coming up
with a scheme for doing at least one of them in the next nine months?

29. Youve a-l-w-a-y-s wanted to go to the Yucatan. So at least call a travel agent ... this week. (How
about right now?)

30. You know the action is at the front line. Spend a month (two days a week) on a self-styled
training program that rotates you through all the front-line jobs in the hotel/distribution
center/whatever.

31. Ask a first-line supervisor who the most motivated clerk in the store is. Take him/her to lunch ... in
the next three weeks.

32. You spot a Cool Article in the division newsletter. Call the person involved. Take her/him to lunch.
Tomorrow. Learn more. (Repeat.) (Regularly.)

33. You and your spouse go to a great play this Saturday. On Monday, call the director and ask
him/her if you can come by and chat some time in the next two weeks. (If the chat goes well, ask
her/him to come in and address your 18 colleagues in the Accounting Dept. at a Brown Bag Lunch
Session later this month.)

34. Institute a monthly Brown Bag Lunch Session. Encourage all your colleagues to nominate
interesting people to be invited. Criterion: I wouldnt have expected us to invite ___.

35. Volunteer to take charge of recruiting for the next year/six months. Seek out input/applications
from places the unit has never approached before.

36. Consider a ... four-month sabbatical.

37. Get up from your desk. Now. Take a two-hour walk on the beach. In the hills. Whatever. Repeat ...
once every couple of weeks. (Weekly?)

38. Seriously consider approaching your boss about working a day a week at home.

39. Take the door off your office.

40. Youve got a couple of pals who are readers. Start a Reading Group that gets together every third
Thursday. Include stuff thats pretty far out. (Invite a noteworthy local author to talk to your group
now and again.)

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41. Join Toastmasters. (I know its a repeat. Its important!)

42. Pen an article for the division newsletter.

43. In the quarterly alumni magazine, you read about a pal whos chosen to do something offbeat with
her life. Call her. Tomorrow. (Or today.)

44. Buy that surprisingly colorful outfit you saw yesterday. Wear it to work. Tomorrow.

45. Develop a set of probing questions to use at meetings. Will this really make a difference? Will
anybody remember what were doing here two years from now? Can we brag to our spouse/kids
about this project?

46. Assess every project you propose by the WOW!/Is it Worth Doing? criteria.

47. Call the Principal Client for your last project. Ask her to lunch. Within the next two weeks.
Conduct a no-holds-barred debriefing on how you and your team did ... and might have done. Now.

48. Call the wisest person you know. (A fabulous professor you had 15 years ago?) Ask her/him to
lunch. Ask her/him if he or she would be willing to sit with you for a couple of hours every quarter to
talk about what youve done/where youre going. (Try it. It cant hurt.)

49. Become a Cub Scout/Brownie troop leader. Or direct your kids play at school. The idea: Spend
more time around children ... theyre fascinating ... spontaneous ... and wise.

50. Build a great sandcastle!

******************************

38A. Love
the plateau. Learningthe essence of Brand
Youis not a smooth ride. (You get stuck at times.)
39. Me Inc. needs a great board of directors.

40. Brand You/Me Inc. needs a front line university to call your own.

41. Never neglect the Talent Scout Mode ... even if you are a junior individual
contributor.

42. Make our/my/your organizationMe & Co., Brand Youspecial from the
get-go!

43. Brand Yous lead! At all ages!

44. Become a power freak.

45. Whats your formal word-of-mouth marketing plan?

45A. P-l-e-a-s-e answer: Do I r-e-a-l-l-y have a product?

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46. One woman/man global powerhouse is not an oxymoron in the new millennium.

47. Sell!

48. Are you a closer? Brand Yous have got to ask for the business.
49. Brand Yous are dis-loyal! (To a particular corporate logo.)

50. Welcome to Free Agent Nation.

PSF50:
The Professional Service Firm Is Exclusively
Devoted to High Value Added Work
(a Sparkling Collection of WOW Projects)

I. PSF = Inc. + Clients + Projects!

1. Think Inc.
It all starts in your head. Imagine: You
are no longer HR
Director. You are Managing Partner/Managing
Director of HR Inc. ... a wholly owned subsidiary of the
ABC Division of the XYZ Corp.
1A. Commit Cool.

2. Think (eat ... sleep ... breathe ... talk up) C-L-I-E-N-T. Period. Client service is the
name of the game.

3. Select Clients very carefully. Its axiomatic: Youre as goodor as badas the
character of your Client List. In a very real sense, you are your Client List!

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3A. Seek out Clients who are Leaders.

3B. F-I-R-E Clients ... upon occasion.

4. Turn e-v-e-r-y task into a ... Project. PSF = Client. PSF = Project.
4A. The Work Matters!

5. Become a Catalyst for Revolution. (Why not?) (What else?)

II. Portfolio Quality!

6. Visit every client. Initiate a deep and ongoing dialogue with ... every ... client.

7. Create an immodest Current Projects List. YouDept.

head turned
Managing Partner of HR Inc. (Etc.)are your Project
List.
8. You are a Venture Capitalist. I.e.: What does your project list/project
portfolio add up to? Is it exciting? (How exciting?) Is it bland?

9. Conduct a weeklyor a more frequentformal Current Projects Review. The

project-list-is-us. So ... now weve got to start managing the Hell out of it.

9A. Words ... matter. E.g.: Engagement.

III. Impact!
10. Transform every Job into a WOW! Project.

11. Never EVER Compromise Your Identity.

12. Pursue ... P-A-S-S-I-O-N.

13. MEASURE: Did we make an impact?

14. Toms Epithet No.1: Thoroughly professional ... but not provocative. The
pressing question: Was it far enough out? Was itour workas crazy as these
(clearly) crazy times demand?

15. L-E-A-D your Client!

295
16. Another-flavor-of-WOW: Politics. PSF mantra: We
are not scornful
of the grubby politics of getting things done. We
embrace them as the sine qua non of effective
implementation.
17. PSF success boils down to ... the fine art of balance.

18. Accounting (etc.) is a performing art.

19. Speaking of accounting ... remember the bottom line: Business-ing.

20. Got any quirky projects on the list? If you want some great stuff to happen ...
well ... you have absolutely no alternative: Your portfolio has to include some Truly
Freaky Stuff.

21. Think ... LEGACY. Question to ask yourself: Whatif anythingwill my

three years as Managing Partner of Purchasing Inc. be remembered for?

22. Pitch in ... or bail out!

22A. Practice serial monogamy. Or: One is a beautiful word!

23. PSFs need Vision Statements. Period.

23A. We help people!

IV. Live With Em!

24. Make Clients an integral part of every project team.

24A. Cohabit with the Client!

24B. Turn the Client into an expert! Openly, purposefully share your knowledge
and wisdom.

24C. Engage Clients in a measured risk progression process.

25. Insist ... that Clients submit a formal evaluation of your people (and their
people) at the end of each project.

296
25A. Think external. Think independent.

26. Client-centric = PSF Imperative. Period. But dont lose your independent voice.
Think Client. AND: Stay autonomous.

27. Bring in wild and wooly outsiders. E-x-p-a-n-d the

box.

V. A Culture of Urgency!
28. Create a sense of urgency/excitement/vibrancy/buzz.

29. Hot Teams thrive in Hot Spaces!

30. Celebrate ... constantly. Celebrate any success.

30A. Projects-worth-doing are bumpy. There are bad days at the office. Dealing
with the emotional roller coaster called PSF-on-a-Holy-Mission takes thoughtful
effort!

30B. You need a clown!

31. Love thy support staff.

32. You
need a rabid scheduler! Project(s) Life =
Deadline Life. Each projectin the unit as a whole/the
PSFneeds a deadlines/scheduling/milestones freak.
32A. Were in this for the money! WOW is the Point. But ... big but ... it must be
Work Worth Paying For. So ... charge appropriately.

33. Pay attention to the hard stuff ... e.g.: methodology.

34. Embrace marketing.

VI. Knowledge-Is-Us!
35. Become a Research & Development Evangelist.
35A. Devote a sizable share of effort/revenues to Knowledge Development.

297
36. Turn your current portfolio of projects into a ... Research & Development
playground/gold mine.

37. Think ... DESIGN . Are beauty/grace/elegance operative

words ... relative to every project?

38. Evaluate the possible bases of PSF Competitive advantage. Nobodyand no

PSFis great at everything. The essence of PSF market strategy and positioning
is Know thy strengths. (And weaknesses.)

VII. Talent!
39. T-H-I-N-K ... connoisseur of talent. Professional Service Firm = Talent. Period.

39A. We want to be a Magnet for Talent.

40. Cherish instability! Mix up teams!
40A. Mix redux: Encourage turnover!

41. Demand that every PSF member be known for ... something.

41A. Admiration beats affection.

42. Champion passion. Champion perfection.

43. Create stories/mythology around project winners.

44. T-R-A-I-N. Teach the Professional Service Firm Basics ... with a vengeance.

45. Provide project management-leadership opportunities ... A.S.A.P.

Cherish great listening

46.

skills.
47. Geeksthe antisocial, masterful diggers-of-obscure-factsshould be adored!

298
48. Challenge! Challenge! Challenge! Demand ... the impossible. From everyone.
(Obviously: starting with yourself.)

VIII. Its Ours!

49. Think ... Dream ... Act: WOW! Beauty! Impact! Distinction!

50. We own this place! The mantra-to-end-all-mantras in

PSF-land: We are HR Inc. This is our joint. It is our
life. We are in charge. Excellence is in our hands ... to
choose ... or lose.

299
 XLV. Full Stea m Ahead!

Science
Technology
Engineering
Mathematics

Science
Technology
Engineering

A rts

Mathematics

300
Human creativity is
the ultimate
economic resource.
Richard Florida

Every child is born

an artist. The trick is
to remain an artist.
Picasso

301
It is commonplace when discussing education
(frequently described as the imperative
though unrealizedNational Priority #1) to
obsess on math proficiency and, more broadly,
STEM (Science Technology Engineering
Mathematics). STEM is no doubt significant to
a landscape being transformed by technology.
Yet I vehemently favor the formulation labeled

STE A M. (President John Maeda of

RISD/Rhode Island School of Design coined
the new flavor.) The A thats added to STEM
is for the Arts. The arts are not merely about
being well rounded or some such; they are to
some extent whats left as AI/robotics
vacuum up traditional high-end knowledge
work occupations. Consider the worlds most
valuable companyApple. While its T and
E (tech/engineering) are exceptional, it is the
A that has made all the differenceor,
rather, the A ingeniously blended with S, T, E,
and M.

Microsoft never had the humanities or liberal

arts in its DNA.Steve Jobs

302
The (partial) logic behind adding an A to STEM:

I believe that ninety percent

of white-collar/knowledge-
work jobs (which are 80
percent of all jobs) in the
U.S. will be either destroyed
or altered beyond
recognition in the next 10 to
15 years.
Cover story/Time/22 May 2000/Tom Peters

303
 The (VERY) Best and (VERY) Brightest

The very best and the very

brightest and the most
energetic and enthusiastic
and entrepreneurial and
tech-savvy of our university

graduates must must,

not shouldbe
lured into teaching!

304
Finding and educating these new-criteria teachers
requires a revolution in both content and the
incentive structure needed to attract the best of
the bestandto induce them to
experiment boldly once aboard the
education train.
In my opinion, the impact of the new technologies
is such that we need a very young teacher corps
one that has the demographics and restless
mindset of Facebook or Twitter or Google new-
hires.

(I had no intention of writing anything like this [a

short 3013 paper], but as I wrote I found myself
almost pounding the keyboard into mush. Like it
or not, complex problems call for complex solutions.
Yet I am coming to see the simple solution of
BBFs/Best & Brightest & Feistiests,
as I am now calling them, becoming the base for a
transformed teacher corps as a national necessity
on a par with national security; in fact, obviously, it
is an issue of national security.)

305
 XLVI. Some (Wacky-but-VERY-real) Stuff

There is no order to what follows. It is simply a collection of rather provocative

quotes from my recent new stuff reading. Principal topics: Algorithmic
determinism, Big Data, Social Business, and gamification.

The ( VERY) BIG 4: GRIN*

Genetics
Robotics
Informatics
Nanotechnology
*Decision #1: GRIN and BEAR it? GRIN, get to work,
and SAVOR it?

Disruptive Technologies: Advances That Will

Transform Life, Business and the Global Economy
Mobile Internet
Automation of knowledge work
The Internet of Things
Cloud technology
Advanced robotics
Autonomous and near-autonomous vehicles
Next-generation genomics
Energy storage
3D printing
Advanced materials
Advanced oil and gas recovery
Renewable energy

Source: McKinsey Global Institute/May 2013

306
Human level capability has not
turned out to be a special stopping
point from an engineering
perspective. .Illah Reza Nourbakhsh, Robot Futures

The combination of new market rules and new

technology was turning the stock market into a

war of robots.
Michael Lewis, Goldmans Geek Tragedy (Vanity Fair)

The root of our problem is not that were in a

Great Recession or a Great Stagnation, but rather
that we are in the early throes of a Great
Restructuring. Our technologies are
racing ahead, but our skills and organizations
are lagging behind.
Erik Brynjolfsson and Andrew McAfee Race Against the Machine

307
The median
worker is
losing the
race against
the machine.
Erik Brynjolfsson and Andrew McAfee, Race Against the Machine

A bureaucrat is an expensive microchip.

Dan Sullivan, consultant and executive coach

Meet Your Next Surgeon: Dr.

RobotFortune/15 JAN 2013/on Intuitive Surgicals da Vinci/multiple
bypass heart-surgery robot

308
Automation has become so sophisticated that on a

a human
typical passenger flight

pilot holds the

controls for a grand
total of 3 minutes.
[Pilots] have become, its not much of an
exaggeration to say, computer operators.
Nicholas Carr, The Great Forgetting, The Atlantic, 11.13

Curing Short Attention Spans: My Busy Bucket will ship a

plastic tub containing two hundred dollars worth of books, CDs,
DVDs, puzzles, crafts, and toys (mostly wooden ones from
Europe) to your offspring, and after twenty-one or thirty days,
depending on your plan, a very nice FedEx man will make the
package go bye-bye. The exact assortment of amusements is
tailored to the munchkins age (newborn to six) and the
customer-selected theme (such as dress-up, sports, superheroes,
princess/fairy).
Patricia Marx, Outsource Yourself, the New Yorker, 01.14.2013 (on Audrey
Zardkoohi & Elizabeth Baumgarten, founders of the toy rental company Busy
Bucket)

309
The prospect of contracting a gofer on an a la
carte basis is enticing.
For instance,
wouldnt it be convenient if I could
outsource someone to write a
paragraph here, explaining the
history of outsourcing in America?
Good idea! I went ahead and commissioned just
such a paragraph from Get Friday, a virtual
personal assistant- firm based in Bangalore. The
paragraph arrived in my in-box ten days after I
ordered it. It was 1,356 words. There is a
bibliography with eleven sources. At $14 an hour
for seven hours of work, the cost came to $98.
Patricia Marx, Outsource Yourself, the New
Yorker, 01.14.2013 (Marx describes in detail
contracting out everything associated with hosting
her book clubincluding the provision of witty
comments on Proust, since she hadnt had time to
read the bookexcellent comments only set her
back $5; the
writer/contractor turned
out to be a 14-year-old girl from New
Jersey.)

310
Algorithms have already written
symphonies as moving as those
composed by Beethoven, picked
through legalese with the deftness of
a senior law partner, diagnosed
patients with more accuracy than a
doctor, written news articles with the
smooth hand of a seasoned reporter,
and driven vehicles on urban
highways with far better control than
a human driver.Christopher Steiner, Automate This: How
Algorithms Came to Rule the World

Shades of Ned Ludd: When

Emmy [algorithm] produced
orchestral pieces so impressive that some music scholars
failed to identify them as the work of a machine, [Prof.
David] Cope instantly created legions of enemies. At
an academic conference in Germany, one of his peers
walked up to him and whacked him on the nose.
Christopher Steiner, Automate This: How Algorithms Came to Rule the World

311
Customer engagement is moving from relatively isolated
market transactions to deeply connected and sustained
social relationships. This basic change in how we do
business will make an impact on just about everything
we do.Dion Hinchcliffe & Peter Kim, Social Business By Design:
Transformative Social Media Strategies For the Connected Company

Social Survival Manifesto*

1. Hiding is not an option.

2. Face it, you are outnumbered. (level playing field,
arrogance denied)
3. You no longer control the message.
4. Try acting like a human being.
5. Learn to listen, or else. (REALLY listening to
others is a must.)
6. Admit that you dont have all the answers.
7. Speak plainly and seek to inform.
8. Quit being a monolith. (Your employees, speaking
online as individuals, are a crucial resource can be
managed through frameworks that ENCOURAGE
participation.)
9. Try being less evil.
10. Pay it forward, now. (Internet culture is largely
built on the principal of the Gift Economy
give value away to your online communities.)

*Tom Liacas; socialdisruptions.com

312
 Winning in Marketplace 2013: An Ethos of Helping ZMOT:
ZERO Moment Of Truth/Google*

You know what a moment of truth is. Its when a

prospective customer decides either to take the next step
in the purchase funnel, or to exit and seek other options.
But what is a zero moment of truth? Many behaviors
can serve as a zero moment of truth, but what binds them
together is that the purchase is being researched and
considered before the prospect even enters the classic
sales funnel In its research, Google found that

84% of shoppers said the new mental

model, ZMOT, shapes their decisions.
Jay Baer, Youtility: Why Smart Marketing Is About Help, Not Hype

*See www.zeromomentoftruth.com for ZMOT in book-length format

Social Business By Design: Transformative Social Media

Strategies For the Connected Company (Donald Hinchcliffe & Peter Kim)
Teva Canada: Supply chain excellence achieved. Share-
Point/troubleshooting/Strategy-Nets/hooked to other functions;
Moxie social tools, document editing, etc.

IBM: Social business tools/30 percent drop in project

completion time/300K on LinkedIn, 200K on Facebook.

313
MillerCoors: Gender imbalance. Women of Sales peer support.
Private network. Attrition plummeted.

Bloomberg: Mobi social media analytics prelude to stock

performance.

Intuit: TurboTax struggling against H&R Block temp

staffing/customers #1 asset/Live Community, focused on help
with transactions.

Seven Characteristics of the Social Employee

1. Engaged
2. Expects Integration of the Personal and
Professional
3. Buys into the Brands Story
4. Born Collaborator
5. Listens
6. Customer-Centric
7. Empowered Change Agent
Source: Cheryl Burgess & Mark Burgess, The Social Employee

314
 Picture a ball and a
Marbles, a Ball and Social Employees ay IBM:
bag of marbles side by side. The two items might
have the same volumethat is, if you dropped them
into a bucket, they would displace the same amount
of water. The difference, however, lies in the
surface area, Because a bag of marbles is comprised
of several individual pieces, the combined surface
area of all the marbles far outstrips the surface area
of a single ball. The expanded surface area
represents a social brands increased diversity.
These surfaces connect and interact with each other
in unique ways, offering customers and employees
alike a variety of paths toward a myriad of
solutions. If none of the paths prove to be suitable,
social employees can carve out new paths on their
own.Ethan McCarty, Director of Enterprise Social Strategy, IBM (from
Cheryl Burgess & Mark Burgess, The Social Employee)

IBM Social Business Markers/2005-2012

*433,000 employees on IBM Connection
*26,000 individual blogs
*91,000 communities
*62,000 wikis
*50,000,000 IMs/day
*200,000 employees on Facebook
*295, 000 employees/800,000 followers of the brand
*35,000 on Twitter
Source: IBM case, in Cheryl Burgess & Mark Burgess, The Social Employee

315
 Gamification presents the best tools
Gamification:
humanity has ever had to create and sustain
engagement in people.Gabe Zichermann & Joselin Linder,
Gamification: How Leaders Leverage Game Mechanics to Crush the Competition

The popularity of an unwinnable game like Tetris completely

upends the stereotype that gamers are highly competitive people
who care more about winning than anything else. Competition
and winning are not defining traits of gamesnor are they
defining interests of the people who love to play them. Many
gamers would rather keep playing than win. In high-feedback
games, the state of being intensely engaged may ultimately be
more pleasurable than the satisfaction of winning.
Jane McGonigal, Reality Is Broken: Why Games Make Us Better and How They
Can Change the World

The kind of thinking on my bedroom floor [as a boy, playing

APBA, Strat-o-Matic, Statis Pro Baseball] became an everyday
component of mass entertainment. [This book] is the story of how
systems analysis, probability theory, pattern recognition, and
amazingly enoughold-fashioned patience became
indispensable tools for anyone trying to make sense of pop
culture. The truth of my solitary obsession with modeling
complex simulations is now ordinary behavior for most
consumers of digital-age entertainment. This kind of education is
not happening in classrooms or museums; its happening in
living rooms and basements, on PCs and television screens. This
is the Sleeper Curve [from Woody Allens movie Sleeper]
Steven Johnson, Everything Bad Is Good For You: How Todays Popular Culture Is
Actually Making Us Smarter

316
 Fun from games arises out of
It Aint About the Ws and Ls:
mastery. It arises out of comprehension. It is the act
of solving puzzles that makes games fun. In other
words, with games, learning is the drug.
Raph Koster, A Theory of Fun For Game Designers

Towards Addiction to LEARNING: When I enter a video game, I

learn something about a fictitious world. And in that video game,
Im allowed to go at my own pace. Im constantly assessed
assessment becomes my friend. I feel good when I master the
next level. If you could only take that experience of a video game
back into student learning, we could make learning addictive. My
deep, deep desire is to find a magic formula for learning in the
online age that would make it as addictive as playing video
games.Sebastian Thrum, founder, Udacity, lead developer of Google Glass,
etc. (Foreign Affairs, 11-12.13)

Work.com/Salesforce.com:
suite of mobile apps that enabled
people inside the organization to provide instant feedback to their
co-workers for a job well done Facebook-style newsfeed,
badges, leaderboards, point systems turned the review process
into something people actually want to do Gabe Zichermann &
Joselin Linder, The Gamification Revolution: How Leaders Leverage Game
Mechanics to Crush the Competition

Idea Street/UK Department of Work and Pensions (28% UK budget): Staff

provide innovative ideas and vote for the best ones first nine
months: $16 million in savings meaning was within the game
itself, not the external reward Gabe Zichermann & Joselin Linder,
The Gamification Revolution: How Leaders Leverage Game Mechanics to Crush the
Competition

317
Why exactly are we competing with each
other to do the dirty work? Were playing a free
online game called Chore Wars
and it
just so happens that ridding our real-world
kingdom of toilet stains is worth more
experience points, or XP, than any other chore
in our apartment. A mom in Texas describes
a typical Chore Wars experience: We have
three kids, ages 9, 8, and 7. I sat down with
the kids, showed them their characters and
the adventures, and they literally jumped
up and ran off to complete their chosen
task. Ive never seen my 8-year-old son
make his bed. I nearly fainted when my
husband cleaned out the toaster oven.
Jane McGonigal, Reality Is Broken: Why Games Make Us Better and How They
Can Change the World

318
When I work with experimental digital gadgets, I am always
reminded of how small changes in the details of a digital design
can have profound unforeseen effects on the experiences of the
The slightest
people who are playing with it.

change in something as seemingly

trivial as the ease of use of a button
can sometimes alter behavior
patterns. For instance, Stanford
University researcher Jeremy
Bailinson has demonstrated that
changing the height of ones avatars
in immersive virtual reality
transforms self-esteem and social
self-perception. Technologies are extensions of
ourselves, and, like the avatars in Jeremys lab, our identities can
be shifted by the quirks of gadgets. It is impossible to work with
information technology without also engaging in social
engineering.Jaron Lanier, You Are Not a Gadget

319
[Michael Vassar/ MetaMed founder] is
creating a better information system and new class
of people to manage it. Almost
all
healthcare people get is going to be
donehopefullyby algorithms
within a decade or two. We used to rely on
doctors to be experts, and weve crowded them into
being something like factory workers, where their
job is to see one patient every 8 to 11 minutes and
implement a by-the-book solution. Im talking
about creating a new expert profession

medical quants, almost like

hedgefund managers, who could do the high-level
analytical work of directing all the information that
flows into the worlds hard drives. Doctors would
now be aided by Vassars new information experts
who would be aided by advanced artificial
intelligence.New York/0624.13

320
When you ask [Cloudera founder Jeffrey]
Hammerbacher what he sees as the most promising
field that could be hacked by people like himself, he
responds with two words: Medical diagnostics.
And clearly doctors should be watching their backs,
but they should be extra vigilant knowing that the
smartest guys of our generationpeople like
Hammerbacherare gunning for them. The
targets on their backs will only grow
larger as their complication rates,
their test results and their practices
are scrutinized by the unyielding eye
of algorithms built by smart
engineers. Doctors arent going away, but those
who want to ensure their employment in the future
should find ways to be exceptional. Bots can handle
the grunt work, the work that falls to our average
practitioners.
Christopher Steiner, Automate This: How
Algorithms Came to Rule the World

321
Automate
This: How
Algorithms
Came to Rule
the World
Christopher Steiner

322
[These HP] pioneers may not realize just how big a shift
this practice is from a cultural standpoint. The computer
is doing more than obeying the usual mechanical orders
to retain facts and figures. Its producing new
information thats so powerful, it must be handled with a
new kind of care. Were in a new world in which systems
not only divine new, important information, but must
carefully manage it as well.Eric Siegel, Predictive Analytics: The
Power to Predict Who Will Click, Buy, Lie, or Die (based on a real case, an HP
Flight risk PA model developed by HR, with astronomical savings potential)

1-800-FLOWERS improved its ability to

detect fraud by considering the social
connections between prospective
perpetrators.Eric Siegel, Predictive Analytics: The Power to Predict
Who Will Click, Buy, Lie, or Die

Aviva, a large insurance firm, has studied the idea of

using credit reports and consumer-marketing data as
proxies for the analysis of blood and urine samples for
certain applicants. The intent is to identify those who may
be at higher risk of illnesses like high blood pressure,
diabetes, or depression. The method uses lifestyle data
that includes hundreds of variables such as hobbies, the
websites people visit, and the amount of television they
watch, as well as estimates of their income. Avivas
predictive model, developed by Deloitte Consulting, was
considered successful at identifying health risks.
Viktor Mayer-Schonberger and Kenneth Cukier, Big Data: A Revolution That
Will Transform How We Live, Work, and Think

323
By harnessing the wisdom of crowds, many subjective
observations taken together provide a more objective and
accurate picture of an employees performance than a
single subjective judgment. It averages out prejudice or
baggage on the part of both manager and employee.Eric
Mosley, The Crowd Sourced Performance Review

Some people rush for a deal, others think that the deal
means the merchandise is subpar. Just by eliminating the
persuasion styles that rub people the wrong way [as
deduced from prior Web behavior patterns], [the
marketer] found he could increase the effectiveness of
marketing materials from 30 to 40 percent.Eli Pariser,
The Filter Bubble: How the New, Personalized Web Is Changing What We Read and
How We Think

Analytics can yield literally hundreds of millions of

data pointsfar too many for human intuition to
make any sense of the data. So in conjunction with
the ability to store very big data about online
behavior, researchers have developed strong tools
for data mining, statistically evaluating correlations
between many types and sources of data to expose
hidden patterns and connections. The
patterns
predict human behaviorand even
hidden human motivations.
Illah Reza Nourbakhsh, Robot Futures

324
Predictions based on correlations
lie at the heart of big data.
Viktor Mayer-Schonberger and Kenneth Cukier, Big Data: A Revolution That
Will Transform How We Live, Work, and Think

Flash forward to dystopia. You work in a chic

cubicle, sucking chicken-flavor sustenance from a
tube. Youre furiously maneuvering with a joystick
Your boss stops by and gives you a look. We
need to talk about your loyalty to this company.
The organization you work for has deduced that you

It predicts
are considering quitting.

your plans and

intentions, possibly
before you have even
conceived them. Eric Siegel,
Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie, or Die (based on
a real case, an HP Flight risk PA model developed by HR, with astronomical
savings potential)

325
LinkedIn offers a career trajectory prediction by
comparing your resume to other peoples who are in your
field but further along. LinkedIn can forecast where
youll be in five years. As a service to customers, its
pretty useful. But imagine if LinkedIn offered the data to
corporate clients to weed out people who are forecast to be
losers. It
seems unfair for banks to
discriminate against you because
your high school buddy is bad at
paying his bills or because you like
something that a lot of loan
defaulters also like. And that points to a basic
problem with induction, the logical method by which
algorithms use data to make predictions.Eli Pariser,
The Filter Bubble: How the New, Personalized Web Is Changing What We Read and
How We Think

With new forms of sentiment analysis its now possible

to guess what mood ones in. People use substantially
more positive words when theyre up Eli Pariser,
The Filter Bubble: How the New, Personalized Web Is Changing What We Read and
How We Think

326
I believe this is the
quest for what a
personal computer
really is. It is
to capture ones
entire life. Gordon Bell

327
Internet of
Things: The algorithms created by
Nests machine-learning expertsand the troves of data
generated by those algorithmsare just as important as
the sleek materials carefully selected by its industrial
designers. By tracking its users and subtly influencing
their behaviors, Nest Learning Thermostat transcends its
pedestrian product category. Nest has similar hopes for
what has always been a prosaic device, the smoke alarm.
Yes, the Nest Protect does what every similar device
doesgoes off when smoke or CO reaches dangerous
levelsbut it does much more, by using sensors to
distinguish between smoke and steam, Internet
connectivity to tell you where the danger is, a calculated
tone of voice to convey a personality, and warm lighting
to guide you in the darkness. In other words, Nest isnt
only about beautifying the thermostat or adding features

Were about
to the lowly smoke detector.

creating the conscious

home, Nest CEO Fadell. Left unsaid is a

grander vision, with even bigger implications, many

devices sensing the environment, talking to one another,
and doing our bidding unprompted.Steven Levy,
Where Theres Smoke , Wired, 11.2013

328
Internet of
Everything: The idea of the
IoE* [Internet of Everything/Cisco Systems/Estimated
market size, next decade: $14.4 trillion] is a networked
connection of people, processes, data, and things,
which is being facilitated by technology transitions
such as increased mobility, cloud computing, and
the importance of big data.
Source: The Big Switch, Capital Insights

Robotics will drive this very innovation. Landing

page tuning will bust out of the Internet and become
interaction tuning. Companies will apply their
analytics engines to all interaction opportunities
with people everywhere: online, in the car, in a
supermarket isle, on the sidewalk, and of course in
your home.Illah Reza Nourbakhsh, Robot Futures

329
 XLVII. 47 Questions for Newby CEOs
A reporter asked me to think about a couple of questions a new
CEO ought to ask her/himself. I stoppedfor nowat 47:

Can you imagine your tombstone having your net worth carved in it? Of course you
cant. (I hope.) So what would you like on the tombstone?

How would you explain what you do to your 10-year-old daughter? (Aim for 25/50
words or less.)

How would you explain your most recent major decision to your 10-year-old
daughter? (Aim for 25/50 words or less.)

Did you miss half your 13-year-old daughters soccer games this year? (Ill
guarantee that if you live to be 109, youll never forgive yourself no matter how
many zeros in your net worth.)

List your Top Five active projects: How many score 8 or higher on a 10-point WOW
Scale?

Are your training courses so damn good they make you giggle?

Can every employee, when stopped by you in the hall, describe her or his personal
development strategy for 2014? (Is it radical?)

Is your CTO/Chief Training Officer on a par (e.g.,

pay, perks, pecking order) with your
CFO/CIO/CMO?

Have you (I HOPE) read Forbes publisher Rich Karlgaards superb

The Soft Edge?

330
 How
List your Top Five active projects:

many score 8
or higher on a
10-point
WOW
Scale?*
*TODAY. Take ONE project. Figure outwith your teamhow to
move it up ONE notch on the WOW Scale. (I call this, God help me WOW-
ification.)

331
Whenever you read this: Have you modeled Unadulterated Excellence in the last 30
minutes?

Do you have enough freaky customers in your portfolio, pushing you to the limit day
in and day out?

If you got run over by a bus, could you guarantee that your successor is BETTER
than you are?

Have you thanked 10 people for SOMETHING today?

At years end do you call 25-50 people to thank them for their support during the
prior 12 months? (Inspired by Hank Paulson.)

Is EVERY meeting a Paragon of Excellence? (To a large extent, like it or not,

meetings are what you do.)

Do you ever act like an asshole? (Guess what, dude, you cant get away with ityou
are NOT Steve Jobs.)

Do you have an implicit bias for capital investments over people investments?

(Think VERY carefully about this.)

VERY
Are you a good listener? (Odds are

high that you are not AND that youre getting worse. Nothing is more
important. It is a subject that can be studied and mastered.)

Are you a PROFESIONAL listener?

Are you a PROFESIONAL at hiring?
Are you a PROFESIONAL at evaluating people?

332
How many-off-the-charts crazy new people have
you had lunch with in the last 90 days? (Inspired by FedEx
CEO Fred Smith.)

Do you read enough? (10:1 says the answer is No.) (Inspired by one of USAs top
10 investment bankers who said not reading enough is the number ONE failing of
CEOs.)

If all of your traditional marketing programs were shut down tomorrow, would
your extant Social Media programs carry the load?

Do you think the whole social media/social employee/social business thing

is overblown? (It may be, but are you sure? Good chance its underblown. How
do you plan to test the overblown/underblown hypothesis?) (In any event, STUDY
like a maniac.)

Do you think the whole big data thing is overblown? (It may be, but are you
sure? Good chance its underblown. How do you plan to test the
overblown/underblown hypothesis?) (In any event, STUDY like a maniac.)

Do you make eye contact 100% of the time?

Do you practice Intense MBWA (Managing By Wandering Around) EVERY day?
(Courtesy, in effect, Starbucks Howard Schultz, who visits a minimum of 25 shops
per week.)

To what degree can you say you are honestly (regularly, intensively) in touch with
folks three levels down in the organizationwhere the real work gets done?

Are you over-reliant on email, or do you still use the phone regularly?

Do you reward imaginative failures that lead to significant learning? (Courtesy a

successful Aussie exec who says his philosophy is, Reward excellent failures, punish
mediocre successes.)

How many physical visits to key customers have you

made this quarter?
Do you have a rigid/near-religious routine of
calling a key contact at each of your top 10 (25?)
customers once a month?

333
Are you sure that you are not so intimidating that you cause people not to share
(Hint, you
priority problems with you early on when they are fixable?
think you are approachableodds are you are
alone in that assessment.)
Women buy the lions share of retail AND commercial goods. Does your top team

(If it doesnt, youre an

reflect that?

idiot.)
Is your top team a paragon of diversity? Or did they all go
to Stanford? (I went to Stanford. It is, of course, the best university in the world.
But lack of top-team diversity is a huge mistake. Inspired by Billy Cox: You will
become like the five people you associate with the most; this can be either a blessing
or a curse.)

Have you read and attentively studied and widely shared Daniel Kahnemans book
Thinking, Fast and Slow? (It will shake your confidence in your and your colleagues
judgment/decision-making skillsthats a good thing.)

Do you think your intuition is good? (I dontand I dont even know you.)

Is 50% of your time unscheduled? (Courtesy Intel

superstar Dov Frohmans book Leadership the Hard Way. Frohman says over-
scheduling and failure to daydream are CEOs two top failings.)

Is your full cadre of first-line bosses staggeringly talented and well

trained/mentored/compensated? (The population of 1st-line bosses is unmistakably
the #1 determinant of productivity/employee retention.)

Do you have an implicit bias toward noisy, aggressive people? (You probably do.
Read the book Quietand realize that shortchanging introverts is a strategic
mistake.)

334
Do you acknowledge that failed cross-functional communication/cooperation/
synergy is the #1 cause of delays of EVERYTHING? (It is.) Do you work
VISIBLY on this EVERY day? (Inspired by Mayo ClinicMC fires top docs who
fail to buy into team medicine.)

Do you acknowledge that there are about 500 ways

to de-motivate people, and about 5 ways to motivate
themand act accordingly?
Do you quickly get tired of people who constantly say the sky is falling? (Well, I
do, too. But sometimes it is falling. I pray you are an optimist; I pray that you have
a few pessimistic pals whom you do not dismiss out of hand.)

Do you acknowledge that acquisitions rarely live up to their billingthe billing that
was so gloriously touted by you? And do you acknowledge that when acquisitions
blow up it is usually courtesy a culture clash which you didnt look at hard
enough during the vetting process? (If you dont acknowledge that, you are wrong.
PERIOD.)

In presentations you review, is there as much/more text devoted to implementation

as there is to problem/opportunity analysis?

Is your strategic plan > 2 pages? (If yes for shame.) (Courtesy Larry Bossidy.)

335
 XLVIII. The ONLY Thing Ive Learned
(NO Bull)

1/48*

*The One & Only one thing Ive learned for sure since 196648 years.

336
 In Search of Excellence/1982
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

337
 A Bias for Action, 1966-2014
Let me not weary you with a long tale of the work that led to In Search of
Excellence. I will simply say that the research was done and the writing had been
outlined. It included, as centerpiece, eight chapters that were the heart of the
matterthe Eight Basics of Excellence. Well, of course, something had to come
first. People as asset #1? Getting close and then closer to the customer?
Internal entrepreneurship? Great candidates all! But we (my co-author Bob
Waterman and I) chosewithout any hesitationanother that we labeled
A Bias for Action. In our travels, we had concluded that big
businesses # 1 problem was, to use our shorthand, Too much talk,
too little do. As the norm, companies were weighed down with
bureaucracy to the sinking point. (Indeed, some did sink.) But the companies we
most admired3M was a classic examplewere inclined to generate an idea, test it
in a flash, correct it in a flash, again and again, and then again, until it was
discarded or became the basis for something new. Something had to be #1. And that
characteristic, that shut up and do now bias for action was it.

That was some time in 1980, two years before the book was published. And here it is
2014. Fully thirty-four years later. And I still have not changed my mind. A lot has
changed to say the least, but now, more than ever, those who get an inkling and try
it in a flash and fix it in a flash are still the pick of the litter. From Google or
Facebook to GE and the stores on main street in your town.

As I look back, 1966 was actually the personal launch of this paramount idea for
me. After college, I went into the U.S. Navytheyd paid my way through school.
And, skipping steps, became an officer in a Seabee battalion. (Seabees stand for
C.B., construction battalionscombat engineering units that by and large support
U.S. Marine Corps ground units.) The motto of the Bees, from the start in 1942
was Can do. Or: Stop the talk, start the do. It was embedded in a history
dating to World War II and the important battle for Guadalcanal. And 24 years
later I was living the legend in Danang, Vietnam. My CO/Commanding Officer
epitomized Can do. And, in retrospect, directly anticipated A Bias for Action. I
heard Shut up and get in the field and do itbarriers are 100% irrelevant so
many times that my brain ached.

And, to essentially repeat, 48 years later, my beliefs havent changed one bit
except to get stronger with the passage of time. Heaven knows, in 2014 a bias for
action has become the age for actionas everything moves/accelerates faster
and faster.

338
 1/48: Action Rules! The 1 Thing (Only) Ive Learned (For Sure) in 48 Years!

A Bias for Action. (No. 1/Basics of Excellence/In Search of Excellence/1982)

Ready.
Fire.
Aim.
(H. Ross Perot on EDS; as compared to GMs Ready. Aim. Aim. Aim. Aim. Aim. )

Just do it! (Nike)

Move fast, break things. (Facebook)

Experiment fearlessly. (Trait #1/Great innovator companies/Bloomberg Businessweek)

Relentless trial and error. (Corporate Survival Trait #1 in crazy times/Wall Street Journal)

You miss 100% of the shots you never take. (Wayne Gretzky)
Fail. Forward. Fast. (Tech exec/Philadelphia)

CAN YOUR BUSINESS FAIL FAST ENOUGH TO SUCCEED? (Economist conf. title)

Fail faster, succeed sooner. (David Kelley/IDEO)

No matter.
Try again.
Fail again.
Fail better.
(Samuel Beckett)

Reward excellent failures. Punish mediocre successes. (Phil Daniels/Australian businessman)

Whoever Makes the Most Mistakes Wins. (Richard Farson/book title)

The Silicon Valley of today is built less atop the spires of earlier triumphs than upon the
rubble of earlier debacles. (Paul Saffo/tech futurist/Palo Alto)

The secret of fast progress is inefficiency: fast/furious/numerous failures. (K. Kelly)

339
S.A.V./Screw Around Vigorously (TP: only possible success strategy for crazy times)

Demo or die. (MIT Media Lab credo)

Dont plan. Do stuff. (David Kelley/IDEO)

Effective prototyping may be the most valuable core competence an innovative

organization can hope to have./Minimize mean time to prototype. (M. Schrage/MIT)

This is so simple it sounds stupid. You only find oil if you drill wells. (J. Masters/wildcatter)

We have a strategic plan. Its called doing things. (Herb Kelleher/Southwest Airlines)

Can do! (Motto/U.S. Navy Seabees/My starting point in 1966 in Vietnam)

Execution is strategy. (Fred Malek)

WD40 (Water Displacement, 40 tries to get it right.)

BLAME NO ONE.
EXPECT NOTHING.
DO SOMETHING.
(NFL coach Bill Parcells/locker-room poster)

Quality is a probabilistic function of quantity. (M. Gladwell/Creation Myth/re J.S. Bach)

Ever notice that What the hell is always the right decision? (Anon. screenwriter)

I think it is very important for you to do two things: act on your temporary
conviction as if it was a real conviction; and when you realize that you are wrong,
correct course very quickly. (Andy Grove)

Active mutators in placid times tend to die off. They are selected against. Reluctant
mutators in quickly changing times are also selected against. (Carl Sagan & Ann Druyan,
Shadows of Forgotten Ancestors)

If things seem under control, youre just not going fast

enough. (Mario Andretti)
The most successful people are those who are good at plan B. (James Yorke,
mathematician)

Im not comfortable unless Im uncomfortable. (Jay Chiat)

340
If it works, its obsolete. (Marshall McLuhan)
The only way to whip an army is to go out and fight it. (Ulysses S. Grant)

The genius of Grants command style lay in its simplicity. Grant never burdened
his division commanders with excessive detail. no elaborate staff conferences, no
written orders prescribing deployment. Grant recognized the battlefield was in
flux. By not specifying movements in detail, he left his subordinate commanders free
to exploit whatever opportunities developed.Jean Edward Smith, GRANT

Execution is the job of the business leader. (Larry Bossidy)

Do right and damn the odds.

Stagnation is the curse of life.
The best is the cheapest.
Emotion can sway the world.
Mad things come off.
Haste in all things.
Any fool can obey orders.
History is a record of exploded ideas.
Life is phrases.
First Sea Lord Admiral John Fiaher

W.T.T.M.S.W. /Whoever Tries The Most Stuff Wins.

WTTMSASTMSUW/Whoever Tries The Most Stuff And Screws The Most Stuff Up Wins.
WTTMSASTMSUTFW/Whoever Tries The Most Stuff And Screws The Most Stuff Up
The Fastest Wins.

341
 Ready.
Fire.
Aim.

H. Ross Perot/EDS founder, former GM board member: The first EDSer to see a snake
kills it. At GM, the first thing you do is organize a committee on snakes. Then you bring in a
consultant who knows a lot about snakes. Third thing you do is talk about it for a year.

342
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 plan
for months. Bloomberg by Bloomberg

343
When assessing candidates,
the first thing I looked for
was energy and enthusiasm

for execution.
Does she talk about the thrill
of getting things done, the
obstacles overcome, the role
her people playedor does
she keep wandering back to
strategy or philosophy?
Larry Bossidy, from Execution: The Discipline of Getting Things Done

344
A man approached J.P. Morgan, held up an envelope, and said,
Sir, in my hand I hold a guaranteed formula for success, which
I will gladly sell you for $25,000.

Sir, J.P. Morgan replied, I do not know what is in the envelope,

however if you show me, and I like it, I give you my word as a gentleman
that I will pay you what you ask.

The man agreed to the terms, and handed over the envelope.
J.P. Morgan opened it, and extracted a single sheet of paper.
He gave it one look, a mere glance, then handed the piece of paper back
to the gent.

And paid him the

agreed-upon $25,000

The formula:

1. Every morning, write a

list of the things that
need to be done that day.

2. Do them.

345
Can do!
Motto/U.S. Navy Seabees
(My starting point in 1966 in Vietnam/48 years ago)

346
Screw it.
Just do it.
Richard Branson

347
Ever notice
What the
that
hell is always
the right decision?
Anon. screenwriter

348
We have a
strategic
plan. Its
called doing
things.
Herb Kelleher/Southwest Airlines

349
You miss
100% of the
shots you
never take.
Wayne Gretzky

350
BLAME NO ONE.
EXPECT NOTHING.
DO SOMETHING.
NFL coach Bill Parcells
(locker-room poster)

351
Intelligent people
can always come up
with intelligent
reasons to do
nothing. Scott Simon

Thinking is the enemy of

creativity. Its self-conscious
and anything self-conscious
is lousy. You simply must
Do things. Ray Bradbury

352
Demo or die.
M IT Media Lab credo

353
Effective
prototyping may be
the most valuable
core competence an
innovative
organization can
hope to have.
Michael Schrage

354
The way to make a better
aircraft wasnt to sit around
perfecting a design, it was to
get something up in the air
and see what happens, then
try to fix whatever goes
wrong.
Instead of trying to figure
out the best way to do
something and sticking to it,
just try out an approach and
keep fixing it.
Eric Abrahamson & David Freedman, Chapter 8, Messy Leadership, from A
Perfect Mess: The Hidden Benefits of Disorder (on Burt Rutan, perhaps the worlds
best aircraft designer and developer)

355
Dont plan.
Do stuff. David Kelley/IDEO

Fail faster,
succeed
sooner.
David Kelley/IDEO

356
Stay
Hungry.
Stay
Foolish.
Stewart Brand (generally attributed to Steve Jobs)

357
Learn not to
be careful.
Photographer Diane Arbus to her students (Careful = Glued
to the sidelines, from Harriet Rubin in The Princessa)

358
No matter.
Try again.
Fail again.
Fail better.
Samuel Beckett

359
Reward excellent failures.
Punish mediocre successes.
Phil Daniels/Australian businessman

360
Im not comfortable
unless Im
uncomfortable.
Jay Chiat

If it works, its
obsolete. Marshall McLuhan

361
Execution is
strategy. Fred Malek

362
Execution is
the job of the
business
leader.
Larry Bossidy

363
Do right and damn the odds.
Stagnation is the curse of life.
The best is the cheapest.
Emotion can sway the world.
Mad things come off.
Haste in all things.
Any fool can obey orders.
History is a record of exploded ideas.
Life is phrases.
First Sea Lord Admiral John Fisher

364
 1/48*: WTTMSW

Whoever
Tries
The
Most
Stuff
Wins.
*TP/1966-2014

365
(WTTMSW Writ VERY Large: Trial
and error, many many many trials and
many many many errors very very very
rapidly will be the rulethink dotcom
boom and bust and, in fact, the incredibly
valuable residual in terms of
entrepreneurial training and ideas
surfaced and approaches rejected.
Tolerance for rapid learningand
unlearningwill be a, perhaps THE,
most valued skill. FYI: Gamers
instinctively get thislots of trials, lots
of errors, as fast as possiblein ways their
error-avoiding elders can only imagine;
hence, for this reason among many, the
revolution is/will be to a very significant
degree led by youth.)

366
Experiment
fearlessly BusinessWeek,

Type A Organization Strategies: How to Hit a Moving Target

Tactic #1

Relentless
trial and
error Wall Street Journal, cornerstone of

effective approach to rebalancing company portfolios in the face of

changing and uncertain global economic conditions

367
 XLIX. The LAST Word* (*For Now)

Be the best.
Its the only
market thats
not crowded.
George Whalin (from Retail Superstars: Inside the 25 Best Independent
Stores in America) (Sure, its obviousbut thats the point. Amidst the madness that
leads us to go this way, then that way, then the other way, its important to
remember that being bloody damn good at SOMETHING was and is and will
be the immutable bedrock of everything else.) (FYI: Retail Superstars is a marvel
even if you are in HR or finance. Its 25 stories/sagas/tales about the unbridled
power of imaginationsagas of people who have turned the ordinary into the
extraordinary with such vigor that it makes oneor me, anywaygiggle at times.
FYI: In the same vein, read/ingest Bo Burlinghams Small Giants: Companies That
Choose to Be Great Instead of Big.)

368
(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

(Theres no use trying, said Alice.

One cannot believe impossible
things. I daresay you havent had
much practice, said the Queen.
When I was your age, I always did it
for half an hour a day. Why,
sometimes Ive believed as many as
six impossible things before
breakfast. )
Lewis Carroll

369
 L. The LAST Word (Version TWO)

Business has to
1/4,096*:

give people
enriching, rewarding
lives or its simply
not worth doing.
Richard Branson

*A year ago I posted everything I know at a new site, excellencenow.com. It ended up being a
4,096-slide, 23-part PowerPoint presentation. Some ONE slide had to go FIRST. And
capture the spirit of the whole shebang. I chose Mr. Bransons quote above to fill the bill. After all,
what could possibly be more important???????

370
 LI. The LAST Word (Version THREE)

You miss
1T/4,096*:

100% of the
shots you
never take. Wayne Gretsky

*This one tied for first among 4,096 with Mr. Branson. Bob Waterman and I put Bias For Action
at the top of the list of eight winners traits in In Search of Excellence. Meant it then. More important
than ever now. Plus: Its a great life lesson for thee & me. I also like this kin from an anonymous
Hollywood screenwriter: Ever notice that What the hell is always the right
decision?

371
 LII. The LAST Word (Version FOUR)

Execution is
Strategy.
Fred Malek*

*Superstar private-sector entrepreneur (my White House boss, 1974)

372
 LIII. The LAST Word (Version FIVE)

Do
Do or Die/Innovate or Die*:

one thing
every day that
scares you.
Eleanor Roosevelt

*The world of enterprise is living on the edge. So, too, you and I. Hence, we must thrust ourselves
into the discomfort zone each and every dayto even have a chance of thriving. The problem is,
and its a huge one: The seemingly simple advice here aint simple at all. The near at hand is onerous
enoughtheres no time left to venture out into the unknown. But there must be timeyou must
make the time. And preferably, per Ms. Roosevelt, each and every day. (See also our discussion here
about what I call the Hang Out Axiom.)

373
 LIV. The LAST Word (Version SIX)

All human
beings are
entrepreneurs.
When we were in the caves we were all self-
employed ... finding our food, feeding
ourselves. Thats where human history
began. ... As civilization came we suppressed
it. We became labor because they stamped us,
You are labor. We forgot that we are
entrepreneurs.Muhammad Yunus

374
 LV. The LAST Word (Version SEVEN)

That word: PSF*

(*Professional Service Firm)

Add (SIGNIFICANT) value or

THE (only plausible) survival

trick, I fervently believe, is becoming a de facto (or de jure) PSF. A
business that adds value, stands for

EXCELLENCE &
WOW and executes like a maniac. We are all

entrepreneurs: The
electrician. The software coder.
The logistics genius. And the driver (below) of a
16-wheeler who turns his office/workplace
into Rolling Magic.

375
376
LVI. The LAST Word (Version EIGHT)

Life is not a journey to the

grave with the intention of
arriving safely in one pretty
and well preserved piece, but
to skid across the line
broadside, thoroughly used
up, worn out, leaking oil,
shouting
GERONIMO!
Bill McKenna
(professional motorcycle racer)

377
 LVII. The LAST Word (Version NINE)

Nobody
knows
anything.
William Goldman,
screenwriter extraordinaire

As I walk down the street today (1 FEB 2014) in the small town in New
Zealand (Takaka) where my wife and I spend the North American
winter, I cant help but wonder, Well, will things here really be all that
different a decade from now? Yknow, Im not all that sure they wont
be. And: Im not all that sure they will be.

Cheers, Tom

378
 Appendix

Systems Have Their Place:

SECOND Place

Tom Peters
01 March 2014

379
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 gameit
is the game.
Lou Gerstner, former chairman, IBM

380
 Foreword

There is no doubt whatsoever about the importance of

systemseven in a 1-person business. For most of us, the
to do lista system if ever there were oneis an
imperative aid to making it through the day. On the other
hand, there is an other hand. That to do list is utterly
worthless without the will and discipline to follow up with
executioni.e., actually doing the to dos. And if that
execution and doing involves others help, as it usually
does, then our attitude will differentiate between success
and failure.

Fact is, we could get by without the systemthe to do

list per se. But we could not get by or get anything done
without the culturethe discipline to follow up and
attitude required to effectively work with others.

Hence, the title of this paper: Systems Have Their Place:

SECOND Place. Herein are 10 casesfrom the U.S.
Air Force to Mayo Clinic to Toyotain which systems,
though of the utmost importance, were toothless without the
right organizational culture to abet and sustain
performance excellence.

381
 Systems Have Their Place: SECOND Place

With ISO 9000 [quality standards] you can still have terrible products.
You can certify a manufacturer that makes life jackets from concrete,
as long as those jackets are made according to the documented
procedures and the company provides next of kin with instructions on how
to complain about defects. Thats absurd.Richard Buetow, Motorola

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 gameit is the game.Lou Gerstner, former chairman, IBM

The research that eventually resulted in the publication of In Search of Excellence began
in 1977. The story is rather long, but the bottom line is that American business was under
frontal, and successful, assault, mainly from quality-obsessed Japanese enterprise. The
problem, in my and my colleagues view, was largely one of misdirected priorities
namely, American managers overwhelming emphasis on business strategy and the
numbers first and foremostat the expense of people and quality and execution.
Eventually, my partner Bob Waterman and I locked onto a group of American companies
(subsequently labeled the excellent companies) that were mostly doing it right, also
in the face of stiff competition, and had never lost their focus on what we labeled the
basics. Our shorthand for the research results was captured in six words: Hard is soft.
Soft is hard.

Hard is soft: The typical base of modern management is mechanicalemphasizing

numbers and systems. Yet there is nothing easier than fudging the numbers (look at the
likes of Enron and Lehman Brothers); and, alas, most systems quickly become hothouses
for exponentially increasing and inevitably debilitating bureaucracy. That is, these hard
ideas, the bread and butter of MBA programs and consultancies, are anything but hard,
inviolable truths. Both numbers and systems are, to be sure, unquestionably imperative
for running the small business as well as the giantbut they are not the bedrock.

Note: This paper indirectly stems from the current American presidential primaries. Two candidates suggested that the
Department of Defenses wasteful ways could be curbed by ordering the adoption of 6-sigma management. Having
put in two years of Pentagon duty as a naval officer (1969-1970), I was struck by the hilarity of such a notion; Id
observed the adoption of miracle systems before in the DOD (PPBS/Program Planning and Budgeting System, the
brainchild of Robert McNamara), and watched their inevitable byproductsmore bureaucracy and more waste,.
Moreover, ideas like this, and the issues associated therewith, are near the heart of my last 35 years of professional
work. Hence, with some outside urging, and with no political axe to grind on this score, I prepared this brief paper.

382
With ISO 9000 [quality
standards] you can still
have terrible products. You
can certify a manufacturer
that makes life jackets
from concrete, as long as
those jackets are made
according to the documented
procedures and the company
provides next of kin with
instructions on how to
complain about defects.
Thats absurd. Richard Buetow, Motorola

383
Soft is hard: We did discover bedrock. It came in the form of deep-seated respect for the
work force; managers who were out of their offices and engaged where the work was
done (MBWA, or Managing By Wandering Around, as Hewlett-Packard called it); an
abiding emphasis on trying it (whatever it!) rather than talking it to death and then
accepting the failures that accompany a bias for action as we labeled this phenomenon;
keeping constantly and intimately in touch with customers; and managing via a small
set of inviolable core values. These soft ideas, largely AWOL on the American
management scene circa 1980, were in fact the hard infrastructure of excellence.

Paralleling our work, the quality movement took off, and enough quality gurus
sprouted to fill a sizeable sports stadium. Without a shadow of doubt, the newfound
emphasis on quality produced a raft of scintillating success storiessome of which
produced extraordinary growth in profitability and market share. Yet a closer look reveals
that for every quality program success there were scores of misfiresprograms, often
absorbing vast amounts of time and sums of money, that produced little or nothing in the
way of better quality or improved financial results, and in some situations made a
slumping organization even more sluggish.

Though its foolhardy to make such an assertion, in my view there was a singular reason
for the mixed bag of results; and it was predictable from our excellence researchtoo
much reliance on the apparently hard procedures of, say, six-sigma programs and not
enough attention to those underlying, apparently soft attributes such as the respect for
and engagement of the workforce and a personal commitment to excellence.

To support my point, Ill offer up ten case studies (more accurately, snapshots) of quality
programs, often in incredibly resistant environments, that did produce remarkable results.
It turns out that they have two principal elements in common:

* Passionate local leadership

* A bedrock corporate culture that supports (or comes to support) an ethos of superior,
quality work, courtesy of an engaged and respected and appreciated workforceand,
indeed, an unwavering moment-to-moment commitment to no less than excellence

(There is an eleventh case study, which focuses on failurethat is, the at least short-term
demolition of a culture of quality that had previously consistently produced earth-
shattering results.)

Herewith the cases:

Case #1/United States Air Force Tactical Air Command/GEN Bill Creech/Drive bys
Case #2/Milliken & Company/CEO Roger Milliken/the 45-minute grilling
Case #3/Johns Hopkins/Dr. Peter Pronovost/The roots of checklist power
Case #4/Commerce Bank/CEO Vernon Hill/The RED button commitment
Case #5/Veterans Administration/Abrogating the culture of hiding
Case #6/Mayo Clinic/Dr. William Mayo/Teamwork makes me 100 times better
Case #7/IBM/CEO Lou Gerstner flummoxed by ingrained beliefs

384
 Peters & Waterman 1977-present:

Hard is soft!
Soft is hard!

Source: In Search of Excellence: Lessons from Americas Best-run Companies/October 1982 (NB:
Research reported at forbes.com demonstrated that the companies in this book outperformed the stock
market, 1982-2002, by a wide margin.)

385
Case #8/Germanys Mittelstand/excellence-in-the-genes
Case #9/Department of Defense/DASD Bob Stone/tracking down the extant
Model Installation superstars
Case #10/Matthew Kelly/Housekeepers dreams
Case #11/Toyota/Growth or bust

Case #1/United States Air Force Tactical Air Command

Youve doubtless seen or heard of flyoversthe U.S. Air Force Thunderbirds or the
Navys Blue Angels honoring some significant event with their spectacular aerobatics.
But how about the Drive by?

General Bill Creech was the 4-star general who commanded the USAFs Tactical Air
Command. He was a nut about improving the quality of everythingand wildly
successful at doing just that. (He increased battle-readiness dramaticallyand in the
process also saved a bushel of money.) Sure, there were new systems and procedures. But
they were, in fact, the least of it. For example, Creech figured that the key to quality was
not the already super-motivated high-visibility USAF pilots, but, rather, the supporting
cast of thousands upon thousands who stood behind them such as the brilliantly trained
mechanics and technicians and logisticians. Like most supporting casts, these folks were
effectively invisible, defining un-sung in its literal meaning. Creech moved heaven and
earth to change all that. Among other things, at TACs Langley VA headquarters, he had
regular Drive bys. The mechanics and others would polish their gear and spit shine
their shoes and vehicles and, with families and friends and the brass in attendance, hold a
celebratory event in which the supporting staff and equipment would parade full dress
around the base grounds. There were a hundred things like this, quintessential soft stuff
that added up to a matchless, all hands enthusiasm for and commitment to quality
workwith no less than staggering results. Moreover, Creech painstakingly developed a
cadre of acolytes, generals who subsequently infused this ethos into other commands.

While the new systems that supported the quality

program were imperative, it was the new culture
of all-hands engagement, quality-or-bust as only
acceptable outcome, and General Creechs
passionate, dogged personal engagement that made
the difference.

386
(NB/Small world: Oddly enough, as I was writing this I ran into, on a hike in New
Zealand, a retired USAF pilot. Unbidden, he got to talking about the F-16 rides hed
given to low-ranking airmen whod performed their supporting work notably well. I
really took those rides seriously, Tom, as seriously as a combat-training sortie, he said.
We were really trying to honor the amazing work these guys were doing that kept us
flying. At the time of his comment, he had no idea that Id ever heard of General Creech
or, for that matter, TAC!)

(NB: In this paper, I chose to use interchangeably the likes of Six-Sigma, TQM/Total
Quality Management, Deming Principles, Crosbys Do It Right the First Time, and
General Creechs own Six Pillars. As a result, many readers will doubtless scream
bloody murder. But my point is simple: Coherent approaches are vitally important! But it
really doesnt matter much which one, among the tested ones, you chooseas long as the
culture is right and the passionate-determined leadership is in place.)

Case #2/Milliken & Company

I met Bill Creech and Roger Milliken at about the same time, in the mid-80s. Roger ran
Milliken & Co., the textile giant performing brilliantly against all odds in an industry
under crippling assault. In dedicating my 1987 book Thriving on Chaos to him, I labeled
Milliken & Co.s commitment to quality the best Id ever seen. There was indeed a
quality guru (Phil Crosby as I recall) and new systems had been installed, damn good
ones. But make no mistake, the culture of quality and war on de-motivating
bureaucratic roadblocks that Roger Milliken installed and oversaw with unrelenting (the
word was invented to describe Roger) determination made all the difference.

Consider one small, but typical example. When, say, a plant manager from afar arrived
at the airport nearest to corporate headquarters, he would invariably be met by Mr.
Milliken, as the boss was called by all except his brothers, and a 45-minute ride would
ensuejust the two of them and the driver. The plant manager knew what was coming
a non-stop grilling by Mr. M on one and only one topic, progress since the last grilling on
the quality program and environment thereof. It was a good idea in terms of your future
welfare to have something45 minutes of significant somethings!to say on the way to
Spartanburg, SC.

And now consider one big example. Milliken was very formal (Mr. M) and rank-
conscious to a fault. Yet when Roger decided to create the role of company president, he
passed over all the long-in-line and faithfully serving top candidates and selected Tom
Malone for the highly visible new slot. Malone had run a small unitbut had become
ardent cheerleader-in-chief for the most successful implementation of the quality strategy
and ethos in the multi-billion dollar company. The signal Toms deep dip promotion
sent? Very loud and very clear: Get aboard the quality culture train or else.

387
Quality guru? Yes, Milliken had one. Supporting
systems? Yes, good ones! But the defining
difference was sustained and unwavering leadership
from the top and the development of a quality
culture in the face of the industrys abiding
culture, which was, in effect, exclusively focused
on competing through cost cutting.

Case #3/Johns Hopkins

Patient safety is a hot topic, as it well should bedepending on how you add up the stats,
American hospitals alone kill 100K to perhaps even 500K of us per year via largely
unforced errors. Near the head of the parade of crusaders for change is Johns Hopkins
Dr. Peter Pronovost, appropriately called the father of the widely touted use of
checklists in hospitalsand said by one high and mighty source to have saved more
lives than any other doctor in America over the last decade! Used appropriately, and they
very slowly but somewhat surely are coming to be, checklists can result in mind-boggling
reductions in errorse.g., 80% or 90% or even more in places of consequence.

The key phrase, however, is used appropriately. In his book (with Eric Vohr) Safe
Patients, Smart Hospitals, Dr. Pronovost takes us through the trials and enormous
tribulations of getting checklists righti.e., unleashing the full potential of this
obvious and simple tool, initially at a renowned institution (Hopkins) where the
traditional medical hierarchy was deeply entrenched. The key, as is invariably the case in
such circumstances, was tackling and then, over time, dramatically altering institutional
culture. For one example among dozens, or hundreds, nurses must be permitted
required!to immediately intervene with docs who skip a checklist step. Talk about 20-
megaton culture change in an environment where all too many (alas, most) M.D.s treat
the likes of nurses with blatant disrespect (alas, blatant is the appropriate adjective)!

Taking a somewhat closer look, we find that Peter Pronovosts work was to a large extent
triggered by the unnecessary loss of a child, Josie King, at Johns Hopkins Hospital. (The
event triggered many things at Hopkins as well as elsewhere and is chronicled in Josies
Story: A Mothers Inspiring Crusade to Make Medical Care Safe, by the deceased childs

388
When I was in medical
school, I spent hundreds of
hours looking into a
microscopea skill I never
needed to know or ever use.
Yet I didnt have a single
class that taught me
communication or teamwork
skillssomething I need
every day I walk into the
hospital.
Dr. Peter Pronovost

389
now-crusading mother, Sorrel King.) In his own book, Dr. Pronovost discusses Josies
care, or lack thereof, at a critical moment in the context of a wrongheaded corporate
culture:

The nurses said they tried to voice their concerns up the chain
of commandbut no action was taken. The way communication
was organized at Hopkins, as it is at most hospitals, did not make
this easy. Nurses would have to talk to residents, who then passed
the message on to chief residents or fellows, who would then talk
to the attending surgeons. It is common for the opinion of lower
levels of the hierarchy to be discounted and often ignored by
higher-ups. If someone jumps rank or seeks approval from
another surgeon outside of the chain or in any way circumvents
this hierarchy, the penalty is often public humiliation and
reprimand.
Wowand, sadly, no surprise whatsoever.

Dr. Pronovost examined the roots of such death-dealing behavior, as reflected in his own
training regimen, When I was in medical school, I spent hundreds of hours looking into
a microscopea skill I never needed to know or ever use. Yet I didnt have a single class
that taught me communication or teamwork skillssomething I need every day I walk
into the hospital. Indeed it is precisely the likes of a rare culture of teamwork, or the
characteristic absence thereof, that makes the apparently straightforward implementation
of the simple checklist rise or falland accounts for the majority of those 100K+
unnecessary hospital deaths due to preventable errors.

The importance of the system, that is, the

checklist per se, is irrefutable! Usefulness of the
checklist without culture change, however, was/is
marginal or zero or even a step back. (That is, done
wrong the checklist becomes another mandated
bureaucratic annoyancewhich may well worsen
rather than improve the already lousy coordination
among key actors such as doctors and nurses.)

390
Case #4/Commerce Bank

Commerce Bank (now part of TD Bank) created a revolution of sorts in East Coast
consumer banking by creating an atmosphere that welcomed customers at a time when
most banks seemed to be going out of their way to alienate their retail clientele. In this
case-lette Ill focus on one tiny part of one customer-friendly system. Founder Vernon
Hill (with Bob Andelman), in Fans! Not Customers. How Commerce Bank Created a
Super-growth Business in a No-growth Industry, explains: 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.

Its a system, sure, but its 95% a transparent

culture-enhancement devicethe focus is on
attitude far more than process. That is, the message
is, For Gods sake, we beg each and every one of
you to please help improve the quality of the
customer experience!

Case #5/Veterans Administration

Surprising many, Veterans Administration hospitals again and again rank at the top of
every list on patient safety/quality of care evaluations. One key reason is the success of
the VA staff at developing an understanding of the nature and source of medical errors.
That sounds obvious, but as things are, the health care system in general seems perversely
designed to keep people (docs, etc.) from admitting and thence analyzing errors. The
VAs Ken Kizer calls it a culture of cover-up that pervades healthcare. It contrasts
sharply with the airline industry. When a plane crashes, says James Bagian, M.D.
and former astronaut, now working with the VA, they ask, What happened? In
medicine they ask: Whose fault was it? The latter, of course, is a perfect device for
insuring silence.

391
The VA frontally attacked this pervasive and deadly culture of cover-upand replaced
it with a culture based on learning from errors. The new idea, as brilliantly reported in
Phillip Longmans Best Care Anywhere: Why VA Healthcare Is Better Than Yours,
was looking for solutions, not seeking to fix blame on individuals except in the most
egregious cases. The good (incredible!) news was that as the culture change around
admitting errors/learning from errors was established, and as the process came to be seen
as trustworthy, there was a resulting thirty-fold increase in the number of
medical mistakes and adverse events that got reported to the Patient Safety Event
Registry. And the exponentially greater understanding of the source and nature of errors
led in turn to procedural and cultural alterations that make the VA the shining example it
has become.

Once more the story is indeed one of a spectacularly

useful system enabled, however, courtesy
mind-boggling, genetic-level culture change,
which in turn was enabled by a grassroots-led,
passionately pursued (for over a decade) revolution.

******************************

Success Key #1: Directly confronting and

excising the deeply entrenched culture
of coverup that pervades medical
practice at all levelsand replacing it with a
culture of learning.
******************************

392
Case #6/Mayo Clinic
Dr. Pronovost may not have had any team training, but there are a few examples of
healthcare organizations that got it right from the start. One of the two core values
instilled by Dr. William Mayo (Mayo Clinic) in 1910 was, effectively, practicing team
medicine. (Designing the practice around the patient, or patient-centered care as some
call its rare manifestation today, was the other core value.)

The potency of Mayos team-based culture? Consider this from Dr. Nina Schwenk, a
Mayo newcomer: I am hundreds of times better here [than in my prior hospital
assignment] because of the support system. Its like you are working in an organism; you
are not a single cell when you are out there practicing. (Yes, thats not a misprint:
hundreds of times better.) Such a culture lends itself to the safer and more effective
practice of medicine, for which Mayo may have few if any worldwide peers.

Again: To be sure there are numerous formal

systems at Mayo, but the healthful elixir that
matters is a peerless culture of cooperationthat
dates back to William Mayos inspired leadership a
century ago.
(NB: The Mayo examples come from Leonard Berry and Kent Seltmans superb
Management Lessons from Mayo Clinic. In fact, I cannot resist one more jaw-dropping
cultural commentary from Berry and Seltman. It typically boggles the mind of
healthcare professionals in my seminars, who are used to the strict separation of
disciplines and hierarchies of authority and power in their own institutions. To wit:
A Mayo surgeon recalled an incident that occurred shortly after he had joined the Mayo
surgical staff. He was seeing patients in the Clinic one afternoon when he received a call
from one of the most experienced and renowned surgeons on the Mayo Clinic staff. The
senior surgeon stated over the phone that that he was in the operating room performing a
complex procedure. He explained the findings and asked his junior colleague whether or
not what he, the senior was planning seemed appropriate. The junior surgeon was
dumbfounded that that he would receive a call like this. Nonetheless, a few minutes of
discussion ensued, a decision was made, and the senior surgeon proceeded with the
operation. A major consequence was that the junior surgeon learned the importance of
inter-operative consultation for the patients benefit even among surgeons with many
years of surgical experience. Berry and Seltman also report, another jaw-dropper, that a
senior Mayo oversight team more or less routinely disciplines, or even releases, doctors,
regardless of technical reputation, who repeatedly fail to practice team medicine.)

393
(NB: And one more, per my lights, blockbuster: The authors report that in the course of
a typical Mayo hiring interview, the candidate is asked to describe a successful project
she or he led. The interviewers make careful note of the frequency with which the

candidate uses We
teams activities!)
rather than I to describe her or his

******************************

hundreds
I am

of times better here

[than in my prior hospital
assignment] because of the support
system. Its like you are working in
an organism; you are not a single
cell when you are out there
practicing.Dr. Nina Schwenk, Mayo Clinic
******************************

394
Case #7/IBM

I first met Lou Gerstner when I was at McKinsey & Co. in the late 70s. The phrase
tough as nails was invented for the likes of Lou. Only GEs Jack Welch, among CEOs
Ive met, including generals who ran their nations armed forces, is in the same league.
Gerstner was also the quintessential McKinsey proponent of Gimme the facts, period.
He was, in short, an analysts analystand a superb one at that. My work on organization
effectiveness was in its infancy, and though mandated by the Firms managing director
(de facto CEO), Gerstner thought it was, well, crap. Too soft by an order of magnitude!

Time passed, I co-wrote a book about excellence with Bob Waterman (our motto, recall,
was Hard is soft. Soft is hard.), and Gerstner after a couple of very successful stops-at-
the-top, such as American Express, was called in as CEO to save (or dismantle) a
staggering IBM. His success was mindboggling, and like so many CEOs in those days, he
wrote about it after the fact; i.e., Who Says Elephants Cant Dance. No surprise, I was
completely taken by a paragraph that appeared in the introduction:

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.

Gerstner extolling the utter inescapable necessity of wholesale culture

change? You could indeed have knocked me over with the proverbial
feather! Though not directly on the topic of quality, this is in many ways
the crowning example in this brief set. Did Gerstner forget about the
analytics during his decade-long sojourn at IBM? You gotta be kidding!
His love affair with the hard facts was never far from the surface. And
yet, he faced the hardest of all facts, namely that soft really is hard.
That without tackling the bedrock (hard, eh?) culture issues, a dramatic
shift in corporate performance, even survival, was not possible. Lou also
came to appreciate that to make such a change he absolutely needed
voluntary buy-in, not merely a mandate from the top, In the end, he said
in his book, management doesnt change culture. Management invites
the workforce itself to change the culture.

Lou Gerstner?

Invite?
Wow!

395
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

396
Case #8/Germanys Mighty Mittelstand

Germanys extraordinary economic performance, particularly as high-end manufactured

products exporter, is not by and large built on the backs of a few giant institutions such as
Siemens or Daimler-Benz. Instead the acknowledged bedrock is a stellar set of middle-
sized firmsthe so-called Mittelstand. I studied them closely and even did a PBS
television special featuring several Mittelstand firmsit was more or less their first
American public exposure.

The world of management thinking, at the time of my Mittelstand research, in about

1990, was as always awash in buzzphrasesnone more commonplace than
empowerment. Yet as I toured these wildly successful German firms, the spearcarriers
for the nations export excellence, I never once heard empowerment (in English or its
German equivalent) or continuous improvement or their ilk. Never = Never. Over time
I came to appreciate what I think is the key success factorand my work over the last 20
years has reinforced that notion. In a word (or words) respect/mutual appreciation.
Superior quality is more or less instinctive in German enterprise; and beneath that
instinctive, it is a byproduct to a significant degree of the ubiquity of the apprenticeship
education and development process. That process provides a common background and
cultural appreciation of superior workmanship among junior and senior workers and
their junior and senior bossesall the way to the CEO. I observed any number of un-
staged exchanges between the CEO-owner (boss of a billion dollar firm) and a 19-year-
old line employee that could only be labeled as conversations among colleagues. (Most of
us, to put it mildly, think of Germans as rigid and hierarchicalI was taken aback, Ill be
the first to admit.) That is, there is widespread respect for and appreciation of
craftsmanship and quality work and the initiative required to make it all workand
hence no need for the big boss to call in pricey HR consultants and launch an
empowerment initiative. Could it be so simple? Of course not! On the other hand, the
commonality of my experience throughout visits to a half-dozen companies, ranging from
toymakers (Playmobil) to machine-tool manufacturers (Trumpf), I believe strongly
supports the argument presented here.

I am hardly saying that systems and measures

are not a big part of life in a Mittelstand firm.
I am suggesting that they play a supporting role
to an incredibly powerful and remarkably
widespread national culture of quality work and

397
self-managed employee on-the-job
performance, commitment, accountability, and
growth. Empowerment consultants need not
apply. (Id also add that virtually all the workforce
is unionizeda stereotypical image of union
workers focused on gettin the day behind them is
distinctly the wrong image.)

Case #9/Department of Defense Model Installations

Bob Stone was the director of Vice President Al Gores mostly invisible and surprisingly
effective re-inventing government program. His approach at the White House was
developed a decade before. When I first met Bob, he was Deputy Assistant Secretary of
Defense for Installations, in effect responsible for the status and development of all of our
military facilities. He re-defined his DOD task as a headlong effort to achieve nothing
short of global excellence. His approach fascinated mehe turned his back on
programs and systems, though he is as much a conservative systems guy as anyone
Ive met. In short, he knew from long and frustrating experience that clever new
systems and programs launched with promises of transformation were invariably
dead ends in governmentthat is, their main products were increased bureaucracy and
constant gaming.

Stones extraordinarily effective approach was built around a set of what he labeled
Model Installations. Given the size of the defense facilities establishment, he figured
that there were mavericks out there already doing it right, in fact very right, despite a
gazillion bureaucratic impediments; hence, rather than have brilliant staff analysts
invent improvement programs, he cited and publicly honored some small number of
stalwart bases as Model Installations. He invited (shades of Gerstner at IBM) others
to learn from the stars approacheswhich had invariably produced results that put their
peers to shame. Stone succinctly captured the notion this way: Some people look for
things that went wrong and try to fix them. I look for things that went right, and try to
build off them. And build off them he did!

(Along the way, Stone did attend to the systems per seand took gargantuan steps to de-
bureaucratize them. For example, the principal DOD facilities management guidance
document was reduced from 450 pages to eight pages! Stone told me he had wanted to
produce the 8-page version in a pocket-size formathowever higher-level DOD
guidance, beyond his remit, would not permit official documents being printed and
distributed in such a revolutionary format. Ah )

398
Some people look
for things that went
wrong and try to fix
them. I look for
things that went
right, and try to build
off them. Bob Stone

399
Once more, Im not, to put it mildly, describing an
environment short on systems and procedures and
measuresbut I am describing a context in which
local leadership (the model-installation
commanders) and a carefully nurtured culture of
mutual respect and appreciation of excellence are
the dominant drivers of success.

Case #10/Housekeepers Dreams

The single staff person who has the most face-to-face interaction with the hotel guest is
the housekeeper you cross paths with in the corridor and who is responsible for the little
things in your room that are not in the least bit little. We guests all know intellectually
were sleeping in a room where a thousand others have slept or expressed unattractive
habits, but we dont want to be reminded by the work of a sloppy housekeeper. All that
said, the housekeeper is typically the most lightly regarded member of staffhence,
among other things, high turnover and anything but a commitment to service and guest
experience excellence. Maybe its the residual engineer/MBA in me, but I shy away from
books with titles like The Dream Manager. But killing idle time in an airport will cause
all sorts of odd behavior. Which is to say I aimlessly picked up Matthew Kellys The
Dream Manager in the Atlanta airportand was instantly hooked. Though written in
parable form (I have trouble with that, too), it is the story of a real and outstanding
(growth, profits, customer loyalty) cleaning services companythat is, a collection of
thousands of de facto housekeepers! (The company chose to remain anonymous
imaging it would be seen by employees as exploitative; I was later thrilled to meet the
CEO of the very real firm.)

Kelly, or, rather, the companys leaders, made an obvious assertion (after the factI
admit to being bowled over by the obvious time and again) that everyoneyes, including
housekeepers!has dreams. That housekeeper from God knows where is likely a single
mom with two kids and three jobs who imagines another more satisfying life if only, say,
she could get a community college certificate in business administration or hospitality.
Though the CC certificate will not directly make her a better cleaner, it will make her a
more fulfilled personwhich will indeed doubtless make her a better housekeeper. (It
does indeed work!) Given all this, then, the managers first job becomes explicitly
helping front-line folks achieve their dreamshence, a dream manager.

400
Kelly brilliantly describes the guiding corporate philosophy:

An organization can only become the-best-version-of-

itself to the extent that the people who drive that
organization are striving to become better-versions-of-
themselves. The question, then, 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.

Perhaps youd say, as I did at first (yes, even me,

Mr. Soft is hard), that dream manager is a bit
over the top. Yet it worksand has produced
bottom-line excellence and service excellence for
years. And once more, as I talked with Kelly and
then the company founder, I discovered that, of
course, there are procedure manuals and time-
tested systemsdamn good ones, in fact. But its
not those manuals that have produced the
exceptional resultsits a clutch of mere
housekeepers pursuing their dreams and becoming
more effective and fulfilled human beings.

401
We all have
dreams.Matthew Kelly

We are ladies and

gentlemen serving
ladies and
gentlemen.
from the Ritz-Carlton Credo

402
NB: The Ritz-Carlton hotels, under the inspired leadership of Horst Schulze, set a
We are ladies
standard for hotel service quality. The organizations credo:
and gentlemen serving ladies and gentlemen. Sound
mundane? Well, its not. Perhaps the large majority of the front-line staff who almost
singlehandedly shape the customer experiencehousekeepers reduxhave been treated
like anything but ladies and gentlemen. A single word (lady or gentleman) does
not excellence makebut it sure as hell helps! As to the idea (Id say profound idea) of
employees as customers, the remarkable Herb Kelleher, Southwest Airlines founder
and longtime CEO, always insisted that there was a single primary underpinning for his
companys excellence in a brutally competitive environment: You have to treat your
employees like customers. Related favorites of mine: From health and beauty-salon
chain founder John DiJulius: When I hire someone, thats when I go to work for them.
And Arie Weinsweig, founder of the world renowned food emporium Zingermans: If
you want staff to give great service, give great service to staff. (NB: At the Ritz-Carlton,
those housekeepers are permitted to spend $1,000+ to fix a guest problemwithout the
approval of management. A lot of middle-managers are not allowed that much
leeway!)

Case #11/Toyota
Toyotas systems have long been the envy of the worldensuring quality matched by
none. Or so was the case for several decades. In the last few years, alas, Toyota has
become a poster child for quality problems, some of which are purported to have resulted
in fatalities. While its admittedly absurd to pin a problem of this magnitude on a single
variable, it seems almost certainly to be more or less the case in this instance.

Closing in on a then-stumbling GM, Toyota pulled out all the stops in a rush to become
the worlds largest car company in terms of sales. While the objective was achieved, it
seems to have come at the expense of a proud culture of quality and excellence, which
was effectively replaced by a culture of more along the lines of growth-at-all-costs.

As a result of the ensuing quality missteps, which clearly dented customers faith in the
product, top leadership was revamped, apologies were made by the Toyoda family, and
new family leadership was installed at the topthe results, happily, are promising.

403
When we speak of Japans enterprise success, particularly
in the quality and continuous improvement arena, we talk
often of systemsCI/continuous improvement or lean
production or the Deming Principles. Dr. Demings
approach did work miracles in Japan, but the lessons
extracted therefrom were misleading. Deming may have
had a scheme, but it was based almost entirely on
an enabling corporate culture of employee commitment
to quality; moreover, in Japan, the existing national
culture and approach to work were tailor-made for
implementing Demings prescriptions. Of course, as
suggested in this brief example from Toyota, even the
most effective of corporate cultures can be torpedoed, at
least in the short term.

The most effective cultures imaginablee.g., Toyotas

can slip, slip badly, and slip astonishingly quickly.
Sustaining a culture of quality and excellence is a daily
affair. And a conscious daily affair! Leaders at all levels
must explicitly assess their daily performance to gauge the
degree to which they have stayed true (or not) to the
cultural imperatives of an organization devoted to
matchless quality and an invariant standard of
excellence.

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 Systems Have Their Place: SECOND Place
These eleven case studies capture the lions share of the organizational universe. E.g.:
the public as well as the private sector. Our fastest growing industry, healthcare, as
well as the poster child for embattled industries, textiles. Non-USA entitiesToyota and
the German Mittelstandas well as American institutions. The life of USAF pilotsand
the life of hotel housekeepers. The stories are, obviously, intentionally repetitive. They
effectively make the same point again and again: Systems and procedures are necessary
but no where nearly sufficient. In fact, in the absence of fired up local leadership and a
supportive organizational culture that starts with respect for the contribution of every
employee, elaborate systems can readily become additional bureaucratic drag.

To an extent, this discussion is pessimistic. There are no miracle cures. There are no
clever systems that will in and of themselves carry the day. If you dont have an effective
culture taking the lead, you are pretty much doomed to marginal improvement, or, God
help you, steps back by merely installing a system, no matter how ingenious or how
highly touted it may be.

Hard is soft.
In the end:

Soft is hard. The traditionally

viewed soft variables such as institutional
culture and inspired leadership are the principal
keys to successor failure.

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 Closing notes:
(1) While I have consistently indicated to the contrary, one might assume that I am giving
systems short shrift. To be sure, I am emphasizing the incompletenessand often
problematic natureof a strategy that envisions superior systems as a be all and end all.
But, trained as I am, first and foremost, as an engineer, I am hardly indisposed to superior
systemsorganizations do indeed need to be organized, and systems are the scaffolding
for effectively organized affairs. In fact, an approach to doing business that brushed off
systems and effectively stopped with a culture that was, say, highly supportive of staff
would also by and large be dysfunctional. In short, one needs both superb systems and a
culture that unmistakably puts people first in pursuit of quality and overall excellence.
The purpose of and impetus for this paper is, then, primarily is to act as a corrective to the
traditional approach that, so often, emphasizes systems and de-emphasizesor
ignores!the sort of organizational cultures described briefly in the cases above.

(2) A related point, a source of continued irritation to me: I am not talking about
balancea word I dislike! That is, the cases above are do not balance culture and
systemsthey are, de facto, cases of, if you will, double excellence. The systems at,
say, TAC are superband the TAC culture instilled by General Creech is appropriate to
maximizing the value of those systems and, hence, producing overall excellence and
superior results.

Culture first, systems imperative-but-second

but for sustaining excellence in quality and
productivity and performance excellence.

Youve gotta do both with panache !

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