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“ 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 … Source: Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics. LONG Excellence. Always.

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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 Source: Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics


LONG

Excellence.

Always.

Gartner Group/PPM & IT Governance Summit

Tom Peters/San Diego/22 June 2011


NOTE:To appreciate this presentation [and ensure that it is not a mess], you need Microsoft fonts:Showcard Gothic,Ravie,ChillerandVerdana


What Works.What Doesnt.


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 Source: Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics


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 U.S. companies.They found thatnoneof the long-term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did.Financial Times


Dick Kovacevich:You dont get better by being bigger. You get worse.


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


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


When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs Investment Policy Committee, answered:Im sure there are success stories out there, but at this moment I draw a blank.Mark Sirower, The Synergy Trap


M & A success rate as measured by adding value to the

acquirer:15%

Source: Mark Sirower, The Synergy Trap


Spinoffs systematically perform better than IPOs track record, profits freed from the confines of the parent more entrepreneurial, more nimble.Jerry Knight/ Washington Post/


#4 Japan#3 USA#2 China#1 Germany


  • MittELstand*


*agile creatures darting between

the legs of the multinational monsters"

Source: Bloomberg BusinessWeek on the German MITTELSTAND


Seymour CTFairfield OHFrankenmuth MI


Basement Systems Inc.


Jungle Jims International Market, Fairfield, Ohio: An adventure in shoppertainment,as Jungle Jims call it, begins in the parking lot and goes on to 1,600 cheeses and, yes, 1,400 varieties of hot sauce not to mention 12,000 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.

Source: George Whalin, Retail Superstars


Be the best. Its the only market thats not crowded.

From: Retail Superstars: Inside the 25 Best

Independent Stores in America, George Whalin


What Works.What Doesnt.


No.Optimization Weve got to get this right. Perfectly compatibleSynergyBig


Dick Kovacevich:You dont get better by being bigger. You get worse.


It is generally much easier to kill an organization than change it substantially.Kevin Kelly, Out of Control


The secret of fast progress is inefficiency, fast and furious and numerous failures.Kevin Kelly


Regis McKenna*: A lot of companies in the Valley fail.Robert Noyce**:Maybe not enough fail.RM: What do you mean by that?RN:Whenever you fail, it means youre trying new things.*McKenna was the original Silicon Valley marketing guru**Robert Noyce was an Intel co-founder and one of the fathers of the modern information industry.Source: Fast Company


Once a system grows sufficiently complex and centralized, it doesnt matter how badly our best and brightest foul things up. Every crisis increases their authority, because they seem to be the only ones who understand the system well enough to fix it. But their fixes tend to make the system even more complex and centralized, and more vulnerable to the next national-security surprise, the next natural disaster, the next economic crisis. Ross Douthat/NYTimes on the financial crisis


Dont ever use that word synergy. Its a hideousword. The only thing that works is natural law.

Given enough time,

natural relationships will develop between our businesses.Barry Diller, responding to a

student question, address at the Harvard Business School

(from Marshall Goldsmith, What Got You Here Wont Get You There


Yes. SatisficeRequisite varietyRadical decentralizationResilienceFocus/Niche/Mittelstand


Rose gardeners face a choice every spring. The long-term fate of a rose garden depends on this decision. If you want to have the largest and most glorious roses of the neighborhood, you will prune hard. This represents a policy of low tolerance and tight control. You force the plant to make the maximum use of its available resources, by putting them into the the roses core business. Pruning hard is a dangerous policy in an unpredictable environment. Thus, if you are in a spot where you know nature may play tricks on you, you may opt for a policy of high tolerance. You will never have the biggest roses, but you have a much-enhanced chance of having roses every year. You will achieve a gradual renewal of the plant. In short, tolerant pruning achieves two ends: (1) It makes it easier to cope with unexpected environmental changes. (2) It leads to a continuous restructuring of the plant. The policy of tolerance admittedly wastes resourcesthe extra buds drain away nutrients from the main stem. But in an unpredictable environment, this policy of tolerance makes the rose healthier in the long run.Arie De Geus, The Living Company


What Matters.What Doesnt.


At a party given by a billionaire on Shelter Island, Kurt Vonnegut informs his pal, Joseph Heller, that their host, a hedge fund manager, had made more money in a single day than Heller had earned from his wildly popular novel Catch-22 over its whole history. Heller responds


At a party given by a billionaire on Shelter Island, Kurt Vonnegut informs his pal, Joseph Heller that their host, a hedge fund manager, had made more money in a single day than Heller had earned from his wildly popular novel Catch-22 over its whole history. Heller responds Yes, but I have something he will never have

Source: John Bogle, Enough. The Measures of Money, Business, and Life (Bogle is founder of the Vanguard Mutual Fund Group)


At a party given by a billionaire on Shelter Island, Kurt Vonnegut informs his pal, Joseph Heller that their host, a hedge fund manager, had made more money in a single day than Heller had earned from his wildly popular novel Catch-22 over its whole history. Heller responds Yes, but I have something he will never have

enough.

Source: John Bogle, Enough. The Measures of Money, Business, and Life (Bogle is founder of the Vanguard Mutual Fund Group)


Joe J. Jones 1942 2010 Net Worth$21,543,672.48


Managers have lost dignity over the past decade in the face of wide spread institutional breakdown of trust and self-policing in business. To regain societys trust, we believe that business leaders must embrace a way of looking at their role that goes beyond their responsibility to the shareholders to include a civic and personal commitment to their duty as institutional custodians. In other words, it is time that management became a profession.Rakesh Khurana & Nitin Nohria, Its Time To Make Management a True Profession, HBR/10.08


It is not enough for an agency to

be respected for its professional competence. Indeed, there isnt

much to choose between the competence of big agencies.

What so often makes the difference is the character of the men and women who represent the agency at the top level, with clients and the business community.

If they are respectedasadmirable people, the agency gets businesswhether from present clients or prospective ones. David Ogilvy


Organizations exist to serve. Period.

Leaders live to

serve. Period.


Excellence1982: The Bedrock Eight Basics

1. A Bias for Action

2. Close to the Customer

3. Autonomy and Entrepreneurship

4. Productivity Through People

5. Hands On, Value-Driven

6. Stick to the Knitting

7. Simple Form, Lean Staff

8. Simultaneous Loose-Tight

Properties


Breakthrough 82*

People!

Customers!

Action!

Values!

*In Search of Excellence


Hard Is SoftSoft Is Hard


On the face of it, shareholder value is the dumbest idea in the world. Shareholder value is a result, not a strategy. Your main constituencies

are your employees, your customers and your products.Jack Welch, FT, 0313.09, page 1


Hard Is Soft (Plans, #s)Soft Is Hard (people, customers, values, relationships)


[This years] graduates are told [by commencement speakers] to pursue happiness and joy. But, of course, when you read a biography of someone you admire, its rarely the things that made them happy that compel our admiration. Its the things they did to court unhappinessthe things they did that were arduous and miserable, which sometimes cost them friends and aroused hatred.Its excellence, not happiness, that we admire most.David Brooks,

Its Not About You, oped, New York Times, 30 May 2011


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


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


The Memories That Matter

The people you developed who went on to

stellar accomplishments inside or outside

the company.

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.

The people of all stripes who 2/5/10/20 years

later say You made a difference in my life,

Your belief in me changed everything.

The sort of/character of people you hired in general. (And the bad

apples you chucked out despite some stellar traits.)

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.


#1: Design Is Everything.


Design is everything.

Everything is design.

We are all designers.

The Power of Design: A Force for Transforming Everything, Richard Farson


Charles Handy: One bank is currently claiming to

leverage its global footprint to provide effective financial solutions for its customers by providing a gateway to diverse markets.


I assume that it is just saying that it isthere to


I assume that it is just saying that it isthere to help its customers wherever they are.Charles Handy


I make all the launch teams tell me what the magazines about infive 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 magazines


"I've never seen a job done by a team of five hundred that couldn't be done better by a team of fifty. Gordon Bell,

VAX operating system architect at DEC/

Industry guru par excellence

Computer Associates (quote approximate)


90K in U.S.A. ICUs on any given day; 178 discrete steps/day/patient in ICU.50%ICU stays result in serious complicationSource: Atul Gawande, The Checklist (New Yorker, 1210.07)


**Dr. Peter Pronovost, Johns Hopkins**Checklist/dealing with line infections**1/3rd lines, at least one procedural error when he started checklist program**Nurses/permission-requirement to stop procedure if doc, other not following checklist (BIG DEAL)**In 1 year, ICUs 10-day line-infection rate: 11% to 0%Source: Atul Gawande, The Checklist (New Yorker, 1210.07)


**Docs, nurses empowered/ encouraged to make own checklists on whatever process-procedure they choose**Within weeks, average stay inICU down 50%Source: Atul Gawande, The Checklist (New Yorker, 1210.07)


Appropriate systems standards:

Beauty.

Grace.

Clarity.

Simplicity.


You knowa design is goodwhenyou wanttolickit.Steve Jobs

Source: Design: Intelligence Made Visible,

Stephen Bayley & Terence Conran


Architect Rem Koolhaas on his drive for clarity-simplicity:Often my job is to undo things.Source: New Yorker


The art of war does not require complicated maneuvers; the simplest are the best and common sense is fundamental. From which one might wonder how it is generals make blunders; it

is because they try to be clever.Napoleon


#2: Whats ALWAYS #1.


XFX = #1*

*Cross-Functional eXcellence


Never waste a lunch!


The sacred 220 ABs.*

*At bats


Personal relationships are the fertile soil from which all advancement, all success, all achievement in real

life grow.Ben Stein


They brainstormed about how to turn this [catastrophic] mis-understanding around, and came up with a simple planevery day for the next three months she would have lunch or coffee with one of the partners. Today she is executive vice president for [Fortune 50 company].

Betsy Myers, on and extraordinarily talented professional who had been blocked from leadership positions in her firm, from Take the Lead: Motivate, Inspire, and Bring Out the Best in Yourself and Everyone Around You


George Crile (Charlie Wilsons War ) on Charlie Wilson:The way things normally work, if youre not Jewish you dont get into the Jewish caucus, but Charlie did. And if youre not black you dont get into the black caucus. But Charlie plays poker with the black caucus; they had a game, and hes the only white guy in it.The House [of Representatives], like any human institution, is moved by friendships, and no matter what people might think about Wilsons antics, they tend to like him and enjoy his company.


R.O.I.R. >R.O.I.


Return On Investment In Relationships


What PRECISELY is thisweeksRelationship Investment Plan?


Keep a short enemies list. One enemy can do more damage than the good done by a hundred friends.

Bill Walsh, The Score Takes Care of Itself (Walsh was the hall

of fame coach of the San Francisco 49ers football team)


XFXSocialAccelerators.

1. EVERYONEs [more or less] JOB #1: Make friends in other functions! (Purposefully. Consistently. Measurably.)

2. Do lunch with people in other functions!! Frequently!! (Minimum 10% to 25% for everyone? Measured.)

3. Ask peers in other functions for references so you can become conversant in their world. (Its one helluva sign of ... GIVE-A-DAMN-ism.)

4. Invite counterparts in other functions to your team meetings. Religiously. Ask them to present cool stuff from their world to your group. (B-I-G deal; useful and respectful.)

5. PROACTIVELY SEEK EXAMPLES OF TINY ACTS OF XFX TO ACKNOWLEDGEPRIVATELY AND PUBLICALLY. (Bosses: ONCE A DAY make a short call or visit or send an email of Thanks for some sort of XFX gesture by your folks and some other functions folks.)

6. Present counterparts in other functions awards for service to your group. Tiny awards at least weekly; and an Annual All-Star Supporters [from other groups] Banquet modeled after superstar salesperson banquets.

7. DiscussA SEPARATE AGENDA ITEMgood and problematic acts of cross-functional co-operation at every Team Meeting.


Present counterparts in other functions recognition/awards for service to your group:Tiny awards at least weekly. An Annual All-Star Supporters [from other groups] Banquet modeled after [and equivalent to!] superstar salesperson banquets.


XFX SocialAccelerators.

8. When someone in another function asks for assistance, respond with more alacrity than you would if it were the person in the cubicle next to yoursor even more than you would for a key external customer. (Remember, XFX is the key to Customer Retention which is in turn the key to all good things.)

9. Do not bad mouth ... the damned accountants, the bloody HR guy. Ever. (Bosses: Severe penalties for thisincluding public tongue-lashings.)

10. Get physical!! Co-location may well be the most powerful culture change lever. Physical X-functional proximity is almost a guarantee of remarkably improved co-operationto aid this one needs flexible workspaces that can be mobilized for a team in a flash.

11. Formal evaluations. Everyone, starting with the receptionist, should have a significant XF rating component in their evaluation. (The XFX Performance should be among the Top 3 items in all managers evaluations.)

12. Demand XF experience for, especially, senior jobs. For example, the U.S. military requires all would-be generals and admirals to have served a full tour in a job whose only goals were cross-functional achievements.

13. XFX is PERSONAL as well as about organizational effectiveness. PXFX [Personal XFX] is arguably the #1 Accelerant to personal successin terms of organizational career, freelancer/Brand You, or as entrepreneur.


Formal evaluations. Everyone, starting with the receptionist, should have a significant XFX rating component in their evaluation. (The XFX Performance should be among the Top 3 items in all managers evaluations.)


His habit was to let the locals get primary creditunheard of! Sometimes he disappeared into the woodwork entirely. He had the whole __PD working their butts off for him, including the [temperamental] Chief.close colleague of senior federal law enforcement officer


fYI


Womens Negotiating Strengths*Ability to put themselves in their counterparties 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-makingSource: Horacio Falcao, cover story, World Business, Say It Like a Woman: Why the 21st-century negotiator will need the female touch


Loser:Hes such a suck-up!Winner:Hes such a suck-down.


George Crile (Charlie Wilsons War) on Gust Avarkotos strategy:He had become something of a legend with these people who manned the underbelly of the Agency [CIA].


I got to know his secretaries.


I got to know his [Icahns] secretaries. They are always the keepers of everything.Dick Parsons, then CEO Time Warner, on dealing with an Icahn threat to his companyParsons is not a visionary. He is, instead, a master in the art of relationship.Bloomberg Businessweek (03.11)


Suck down for success!


S = (#&DR; -2L, -3L, -4L, I&E)

Success is a function of: Number and depth of relationships 2, 3, and 4 levels down inside and outside the organization

S = (SD>SU)

Sucking down is more important than sucking upthe idea is to have the [your] entire organization working for you.

S = (#non-FF, #non-FL)

Number of friends not in my function

S = (#XFL/m)

Number of lunches with colleagues in other

functions per month

S = (#FF)

Number of friends in the finance organization


75%* of effective project management is political mastery!

Believe it!


SIP: A ll success is a

Matter of implementation.

All implementation is

a matter of politics.


I believe that it is more important for a leader to be trained in psychiatry than cybernetics. The head of a big company recently said to me, I am no longer a Chairman. I have had to become a psychiatric nurse. Todays executive is under pressure unknown to the last generation.David Ogilvy


Promote into functional leadership positions based primarily on temperament.


Allied commands depend on mutual confidence

and this confidence is

gained, above all

through thedevelopment

offriendships.

General D.D. Eisenhower, Armchair General* *Perhaps his most outstanding ability [at West Point]

was the ease with which he made friends and earned the trust of fellow cadets who came from widely varied backgrounds; it was a quality that would pay great dividends during his future coalition command.


In the election in 1994, his smile was the campaign. That smiling iconic campaign posteron billboards, on highways, on street lamps, at tea shops and fruit stalls. It told black voters that he would be their champion and white voters that he would be their protector. It was the smile of the proverb tout comprendre, cest tout pardonerto understand is to forgive all. It was political Prozac for a nervous electorate.

From See the Good in Others, Mandelas Way:

Fifteen Lessons on Life, Love, and Courage, by Richard Stengel


#3: Whats ALWAYS #1.


Conrad Hilton


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


remember to tuck the shower curtain inside the bathtub.


You get em in the door with location, location, location. You keep em coming backwith the tucked-in shower curtain.**Profit rarely comes from transaction #1; it is a byproduct of transaction #2, #3, #4


Execution isstrategy.Fred Malek


In real life, strategy is actually very straightforward. Pick a general direction andimplementlikehell.Jack Welch


almost inhuman disinterestedness in strategyJosiah Bunting on U.S. Grant (from Ulysses S. Grant)


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


Execution is thejobof the businessleader.Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done


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


I saw that leaders placed too much emphasis on what some call high-level strategy, on intellectualizing and philosophizing, and not enough on implementation. People would agree on a project or initiative, and then nothing would come of it.Larry Bossidy & Ram Charan/Execution: The Discipline of Getting Things Done


Execution isasystematic processof rigorously discussing hows and whats, tenaciously following through, and ensuring accountability.Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done


Realism is the heart of execution. Larry Bossidy & Ram Charan/Execution: The Discipline of Getting Things Done


Does/will the next presentation you give/review allot more time to the process/details of implementing than to the analysis of problem/opportunity


Sports:You beat yourself!


#4: Whats ALWAYS #1.


The doctor

interrupts

after *

*Source: Jerome Groopman, How Doctors Think


18


18 seconds!


[An obsession with] 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 Skill.* (*Though women

are far better at it than men.)

Listening is ... the basis forCommunity.

Listening is ... the bedrock of Joint Ventures that work.

Listening is ... the bedrock of Joint Ventures thatgrow.

Listening is ... the core of effective Cross-functional

Communication* (*Which is in turn Attribute #1 of

organizational effectiveness.)

[cont.]


I wasnt bowled over by [David Boies] intelligence What impressed me was that when he asked a question, he waited for an answer. He not only listened he made me feel like I was the only person in the room.Lawyer Kevin _____, on his first, inadvertent meeting with renowned attorney David Boies, from Marshall Goldsmith, The One Skill That Separates, Fast Company


Could It Be This Simple?

In-effective leaders TALK.

Effective leaders LISTEN.

Inspiration: Multipliers: How the Best Leaders Make Everyone Smarter,

Liz Wiseman [Some hard evidence that effective leaders, in terms of % of elapsed meeting time, talk less than half as much as less effective leaders.]


Is there a full-bore training course in "Listening" for 100% of employees, CEO

to temps? If not, There [damnwell] ought to be.


"When I was in medical school, I spent hundreds of hours looking into a microscopea skill I never needed to know or ever use. YetI didn't have a single class that taught me communication or teamwork skillssomething I need every day I walk into the hospital. Peter Pronovost, Safe Patients, Smart Hospitals


#5: MBWA.


25


MBWAManaging By Wandering Around/HP


General David Petraeus White lines along the road:

Secure and serve the population.

Live among the people.

Promote reconciliation.

Move mounted, work dismounted;

situational awareness can only be

achieved by operating face-to-face,

not separated by ballistic glass.

Walk.*

David Petraeus, Mens Journal (06.08)

* I love that last one for its simplicity. David Petraeus


The first and greatest imperative of command is to be present in person. Those who impose risk must be seen to share it.John Keegan, The Mask of Command


Tom, let me tell you the definition of a good lending officer. After church on Sunday, on the way home with his family, he takes a little detour to drive by the factory he just lent money to. Doesnt go in or any such thing, just drives by and takes a look.


I call 60 CEOs [in the first week of the year] to wish them happy New Year. Hank Paulson, former CEO, Goldman Sachs (and U.S. Treasury Secretary)


Dov Frohman: The 50% Rule

Dov Frohman: Daydream!


You = Your calendar**The calendar neverlies.


Your calendar knowsPreciselywhat youreally care about.Doyou????


Dennis, you need a To-dont List !


Dont > Do** Donting must be systematic > WILLPOWER


If there is any one secret to effectiveness, it is concentration. Effective executives do first things first and they do one thing at a time.Peter Drucker


Its always showtime.David DAlessandro, Career Warfare


It is necessary for the President to be the nations No. 1 actor.FDR


It had been a scene that those in the room would long remember. Washington had performed his role to perfection. It was not enough that a leader look the part; by Washingtons rules he must know how to act it with self-command and precision.John Adams would later describe Washington approvingly as one of the great actors of the age.David McCullough, 1776, on Washington, when the situation was most dire, convincing the British that the Americans were a force to be reckoned with


You must bethe change you wish to see in the world.Gandhi


I am a dispenser of enthusiasm.Ben Zander


Nothing is so contagious as enthusiasm.Samuel Taylor Coleridge


Make it fun to work at your agency. Encourage exuberance. Get rid of sad dogs who spread doom.David Ogilvy


The leader must have infectious optimism. The final test of a leader is the feeling you have when you leave his presence after a conference. Have you a feeling of uplift and confidence?Field Marshall Bernard Montgomery


Sadly, passion is not a word often heard in the elephant organizations, nor in schools, where it can seem disruptive.Charles Handy, Alchemists


Ronald Reagan: radiated an almost transcendent happiness.Lou Cannon, Reagan biographer


People want to be part of something larger than themselves. They want to be part of something theyre really proud of, that theyll fight for,sacrifice for ,trust.Howard Schultz, Starbucks (IBD/09.05)


I never, ever thought of myself as a businessman.I was interested in creating things I would be proud of.Richard Branson


Youve got to be able to see the beauty in a hamburger bun.Ray Kroc


Storytelling is the core of culture.Branded Nation: The Marketing of Megachurch, College Inc., and Museumworld, James Twitchell


Although good business cases are developed through the use of numbers, they are typically approved on the basis of a story. Storytelling can translate those dry and abstract numbers into compelling pictures of a leaders goals. I saw it at the World Bank [where Denning was a senior executive] and have seen it in scores of other large organizations.

Stephen Denning, The Leaders Guide to Storytelling:

Mastering the Art and Discipline of Business Narrative


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


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


"Everyone thinks of changing the world, but no one thinks of changing himself" - Leo Tolstoy


"You will never change your life until you change something you do daily. The secret of your success is found in your daily routine."-- John C. Maxwell


#6: Im NOTKidding.


Bitch all you want, but meetings

are what you [boss] do!


Meetings = #1 leadership opportunity


Meetings are #1 thing bosses do. Therefore, 100% of those meetings:EXCELLENCE. ENTHUSIASM. TEMPO. WORK-OF-ART. DAMN IT.


Meeting:Every meeting that does not stir the imagination and curiosity of attendees and increase bonding and co-operation and engagement and sense of worth and motivate rapid action and enhance enthusiasm is a permanently lost opportunity.


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


FYI: This is not a rant about conducting better meetings.


#7: K = R = P


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)


"Let's not forget that small emotions are the great

captains of our lives."Van Gogh

When dealing with people, remember you are not dealing with creatures of logic, but

with creatures of emotion, creatures bristling with prejudice and motivated by pride and vanity.Dale Carnegie


I denied myself the pleasure of contradicting him abruptly and of showing immediately some absurdity in his proposition; and in answering I began by observing that in certain cases or circumstances his opinion would be right, but that in the present case there appeared or seemed to me some difference, etc. The conversation

I engaged in went more pleasantly; the modest way in which I proposed my opinions procured them a readier reception and less contradiction; I had less mortification when I was found to be in

the wrong, and I more easilyprevailed with others to give up their mistakes

and join with me when I happened to be

in the right.Benjamin Franklin


Press Ganey Assoc:139,380 former patients from 225 hospitals:noneof THE top 15 factors determining Patient Satisfaction referred to patients health outcome.Instead:directly related to StaffInteraction;directly correlated with Employee SatisfactionSource: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel


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 interact with them initially in a positive way.Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel (Griffin Hospital/Derby CT; Planetree Alliance)


K = R = P


Kindness =

Repeat Business =

Profit.


"Appreciative words are the most powerful force

for good on earth.

George W. Crane, physician, columnist

The two most powerful things in existence:

a kind word and a thoughtful gesture.

Ken Langone, co-founder, Home Depot


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.


With a new and forthcoming policy on apologies Toro, the lawn mower folks, reduced the average cost of settling a claim from $115,000 in 1991 to $35,000 in 2008and the company hasnt been to trial in the last 15 years!

The VA hospital in Lexington, Massachusetts, developed an approach, totally uncharacteristic in healthcare, to apologizing for errorseven when no patient request or claim was made.In 2000, the systemic mean VA hospital malpractice settlement throughout the United States was $413,000; the Lexington VA hospital settlement number was $36,000and there were far fewer per patient claims to begin with.)

Source: John Kador, Effective Apology


Relationships(of all varieties):THERE ONCE WAS A TIME WHEN A THREE-MINUTEPHONECALL WOULD HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE.*

*divorce, loss of a BILLION $$$ aircraft sale, etc., etc.


THE PROBLEM IS RARELY/NEVER THE PROBLEM. THERESPONSETO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM.*

*PERCEPTION IS ALL THERE IS!


Comeback

[big, quick response]

>>

Perfection


Edward VII

B. Franklin

Or Not: gen Clinton-gen Cornwallis-Yorktown


Berezovsky came under attack from the newly

powerful Primakov, and was shunned by most of the

political elite. Putin made a point of attending Berezovskys wifes birthday party. Berezovsky repaid Putin by championing his candidacy to run the F.S.B., Russias secret police, formerly the K.G.B., and ultimately by suggesting that the Family make him president.To sum up, the mans qualifications were: he did not take a bribe from a car dealership and had been unafraid to go to a party for an acquaintance who had fallen into disfavor.Dead Soul, Vanity Fair, October 2008


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,

Who Says Elephants Cant Dance


Read this

Influence: Science and Practice Robert Cialdini


#8: We Are What We Eat


You will become like the five people you associate with the mostthis can be either a blessing or a curse.Billy Cox


The Hang Out Axiom I: We are What We Eat/We Are the company

we keep


Measure/Manage: Portfolio Strangeness/QualityStaffConsultantsVendorsOut-sourcing Partners (#, Quality, Diversity)Innovation Alliance PartnersCustomersCompetitors (who we benchmark against)Strategic Initiatives Product Portfolio (Line extension v. Leap)IS/IT ProjectsHQ LocationLunch MatesLanguageBoardEtc.


The We are what we eat/ We are who we hang out with Axiom:At its core, every (!!!) relationship-partnership decision (employee, vendor, customer, etc, etc) is a strategic decision about:Innovate, Yes orNo


CUSTOMERS:Future-defining customers may account for only 2% to 3% of your total, but they represent a crucial window on the future.Adrian Slywotzky, Mercer Consultants


SUPPLIERS:There is an ominous downside to strategic supplier relationships. An SSR supplier is not likely to function as any more than a mirror to your organization. Fringe suppliers that offer innovative business practices need not apply.Wayne Burkan, Wide Angle Vision: Beat the Competition by Focusing on Fringe Competitors, Lost Customers, and Rogue Employees


Dont benchmark, futuremark!Impetus: The future is already here; its just not evenly distributed William Gibson


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


While everything may be better, it is also increasingly the same.Paul Goldberger, The Sameness of Things, New York Times


The short road to ruin is to emulate the methods of your adversary. Winston Churchill


COMPETITORS:The best swordsman in the world doesnt need to fear the second best swordsman in the world; no, the person for him to be afraid of is some ignorant antagonist who has never had a sword in his hand before; he doesnt do the thing he ought to do, and so the expert isnt prepared for him; he does the thing he ought not to do and often it catches the expert out and ends him on the spot.Mark Twain


Diverse groups of problem solversgroups of people with diverse toolsconsistently outperformed groups of the best and the brightest. If I formed two groups, one random (and therefore diverse) and one consisting of the best individual performers, the first group almost always did better. Diversitytrumped ability.Scott Page, The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies


Diversity perse is a key maybethekey to effective and innovative

decision making.


Where do good new ideas come from? Thats simple! From differences.Creativity comes from unlikely juxtapositions.The best way to maximize differences is to mix ages, cultures and disciplines.Nicholas Negroponte, MIT Media Lab


Whos the most interesting person youve met in the last 90 days? How do I get in touch with them?Fred Smith


Once a month on, say, a Friday, invite somebody intriguing, in any field, to have lunch with your gang. Call it: Freak Fridays


Vanity Fair:What is your most marked

characteristic?

Mike Bloomberg:Curiosity.


Forget>LearnThe problem is never how to get new, innovative thoughts into your mind, but how to get the old ones out.Dee Hock


#9: WTTMSW


READY.FIRE!AIM.H. Ross Perot (vs Aim! Aim! Aim!/EDS vs GM/1985)


Burt Rutan wasnt a fighter jock; he was an engineer who had been asked to figure out why the F-4 Phantom was flying pilots into the ground in Vietnam. While his fellow engineers attacked such tasks with calculators, Rutan insisted on considering the problem in the air. A near-fatal flight not only led to a critical F-4 modification, it also confirmed for Rutan a notion he had held ever since he had built model airplanes as a child.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.

Eric Abrahamson & David Freedman, Chapter 8, Messy Leadership, from A Perfect Mess: The Hidden Benefits of Disorder


1/45


Lesson45: WTTMSW


Whoever

Tries

The

Most

Stuff

Wins


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 toplanfor months.

Bloomberg by Bloomberg


Culture of PrototypingEffective prototyping may be themost valuablecore competence an innovative organization can hope to have.Michael Schrage


Think about It!?Innovation = Reaction to the PrototypeSource: Michael Schrage


Experiment fearlesslySource: BusinessWeek, Type A Organization Strategies: How to Hit a Moving TargetTactic #1


relentless trial and error*

*Cornerstone of effective approach to rebalancing company portfolios in the face of changing and uncertain global

economic conditions(Wall Street Journal, 11.08.10)


Demo

or die!

Source: This was the approach championed by NicholasNegroponte which vaulted his MITMediaLab to the forefront of IT-multimedia innovation. It was his successful alternative to the traditional

MIT-academic publish or perish. Negropontes rapid-prototyping version was emblematic of the times and the pace and the enormity

of the opportunity. (NYTimes/0426.11)


Demos! Heroes! Stories!


the 1% solution**Innovation grants, etc.Source: Scott Bedbury


Venture fund:Gerstner/Amex, Dow/Marriott, Grove/Intel, DuPont/AI, Bedbury/ Starbucks, etc.


Read ItRichard Farson & Ralph Keyes:Whoever Makes the Most Mistakes Wins: The Paradox of Innovation


Fail. Forward. Fast.High Tech CEO, Pennsylvania


Fail faster. Succeed Sooner.David Kelley/IDEO


Rewardexcellent failures.Punishmediocre successes.Phil Daniels, Sydney exec


"Barn's burnt down now I can see the moon."Masahide, Japanese poet


The Ultimate Try

it Strategy:

The case for decentralization


Rose gardeners face a choice every spring. The long-term fate of a rose garden depends on this decision. If you want to have the largest and most glorious roses of the neighborhood, you will prune hard. This represents a policy of low tolerance and tight control. You force the plant to make the maximum use of its available resources, by putting them into the the roses core business. Pruning hard is a dangerous policy in an unpredictable environment. Thus, if you are in a spot where you know nature may play tricks on you, you may opt for a policy of high tolerance. You will never have the biggest roses, but you have a much-enhanced chance of having roses every year. You will achieve a gradual renewal of the plant. In short, tolerant pruning achieves two ends: (1) It makes it easier to cope with unexpected environmental changes. (2) It leads to a continuous restructuring of the plant. The policy of tolerance admittedly wastes resourcesthe extra buds drain away nutrients from the main stem. But in an unpredictable environment, this policy of tolerance makes the rose healthier in the long run.Arie De Geus, The Living Company


The True Logic* of Decentralization:6 divisions = 6 tries6 divisions = 6 DIFFERENT leaders = 6 INDEPENDENT tries = Max probability of win6 divisions = 6 very DIFFERENT leaders = 6 very INDEPENDENT tries = Max probability of far out/3-sigma win*Driver: Law of Large #s


Decentralization vs Centralization = Thats AllThere Is(from childrearing 101 to the Federalist Papers to Org.2011)


Innovation Enemy #1I.C.D.Note 1:Inherent/Inevitable/Immutable Centralist DriftNote 2: Jim Burkes 1-word vocabulary: No.


Best practice = ZERO Standard Deviation


#10: Whats ALWAYS #1.


You have to treat your employees like customers.Herb Kelleher, upon being asked his secret to successSource: Joe Nocera, NYT, Parting Words of an Airline Pioneer,

on the occasion of Herb Kellehers retirement after 37 years at Southwest Airlines (SWAs pilots union took out a full-page ad in USA Today

thanking HK for all he had done) ; across the way in Dallas, American Airlines pilots were picketingAAs Annual Meeting)


"If you want staff to give great service, give great service to staff."Ari Weinzweig, Zingerman's


I put this first


A Nice Place to Work

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


EMPLOYEES FIRST, CUSTOMERS SECOND:

Turning Conventional Management Upside Down

Vineet Nayar/CEO/HCL Technologies


Business has to give people enriching, rewarding lives or it's simply not worth doing.

Richard Branson


Brand = Talent.


Our MissionTo 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.WPP


no less than Cathedralsin which the full and awesome power of the Imagination and Spirit and native Entrepreneurial flairof diverse individualsis unleashed in passionate pursuit of Excellence.


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.


The leaders of Great Groups love talent and know where to find it. They revelin the talent of others.Warren Bennis & Patricia Ward Biederman, Organizing Genius


PARCs Bob Taylor:Connoisseur of Talent


2/year = legacy.


Promotion Decisionslife and death decisionsSource: Peter Drucker, The Practice of Management


Les Wexner: From sweaters to people!


In most companies, the Talent Review Process is a farce. At GE, Jack Welch and his two top HR people visit each division for a day. They review the top 20 to 50 people by name. They talk about Talent Pool strengthening issues.The Talent Review Process is a contact sport at GE; it has the intensity and the importance of the budget process at most companies.Ed Michaels,War for Talent


Evaluating people = #1 differentiatorSource: Jack Welch/Jeff Immelt on GEs #1 strategic skill (!!!!)


Development can help great people be even betterbut if I had a dollar to spend, Id spend 70 cents getting the right person in the door.Paul Russell, Director, Leadership and Development, Google


What do managers do for a living?

Help!

Right?

How many of us could call ourselves professional helpers, meaning that we have studiedlike a professional mastering her musical crafthelping? (Not many, Id judge.)

Ed Schein:Helping: How to Offer, Give, and Receive Help

Last chapter: 7 principles. E.g.:

PRINCIPLE 2:Effective Help Occurs When the Helping Relationship Is

Perceived to Be Equitable.

PRINCIPLE 4:Everything You Say or Do Is an Intervention that

Determines the Future of the Relationship..

PRINCIPLE 5:Effective Helping Begins with Pure Inquiry.

PRINCIPLE 6:It Is the Client Who Owns the Problem.*

(Words matter!! Read a quote from NFL player-turned lawyer-turned professional football coach, calling his players my clients. (*Love the idea that the employee is a Client !)

Employee as Client!

Helping is what we [leaders] do for a living!

STUDY/PRACTICE helping as you would neurosurgery!

(Helping isyour neurosurgery!)


[MUST] Start with these two:

*Crucial Conversations

Kerry Patterson, Joseph

Grenny, Ron McMillan,

Al Switzler

*Crucial Confrontations

Kerry Patterson, Joseph

Grenny, Ron McMillan,

Al Switzler


Why Not?


There is more

than one way to skin a cat!*

*Every projectREQUIRES(if youre smart) an

outside look by one/some Seriously Weird Cat/s

in pursuit of whacked-out options.


14,00020,00030


14,000/eBay20,000/Amazon30/Craigslist


In Any Event ..


Excellence.Always. If notExcellence,what?If notExcellencenow, when?


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