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Tom Peters’Action ChroniclesEXCELLENCE. ALWAYS.Think-Do.ACTION.Grant+.4-40.1103


Think!vs.do!


“Never forget implementation , boys. In our work, it’s what I call the ‘last 98 percent’ of the client puzzle.”—Al McDonald, former Managing Director, McKinsey & Co, to a project team that included TP


The (Strange) Case of Peter Drucker & Michael Porter vs. The “Non-linearists”HERBERT SIMON. (Administrative Behavior.) JAMES MARCH. KARL WEICK. (The Social Psychology of Organizing.) EUGENE WEBB. Henry MINTZBERG. (The Rise and Fall of Strategic Planning.) JAMES UTTERBACK. THOMAS KUHN. (The Structure of Scientific Revolutions.)CHARLES LINDBLOM. Daniel goleman. INNOVATION BIOGRAPHERS.*(*Transcontinental Railroad, Electrification, Radio, Television, Containerization, DNA, Computers, Military History, Etc.)MOST POLITICAL SCIENTISTS. SILICON VALLEY. Etc.


“Linearist”: think!“Non-linearist”: do!


“Linearist”: Plan it!“Non-linearist”: Try it!


“Linearist”: hypothesize!“Non-linearist”: experiment!


“Linearist”: failure = unnecessary“Non-linearist”: failure = life


“Linearist”: a>b*“Non-linearist”: b>a***Attitude shapes behavior**Behavior shapes attitude


“Linearist”:deliberate!*“Non-linearist”:relentless!*** “Do it right the first time” (Hero: Phil Crosby) **Never retreat (Hero: U.S. Grant)


“Linearist”: logical!“Non-linearist”: passionate!


“Linearist”: give me genius!“Non-linearist”: give me luck!


“Linearist”: spotless academic record!“Non-linearist”: a.d.d.


“Linearist”: measured pace!“Non-linearist”: Tempo! Tempo! Tempo!


“Linearist”: think! Plan! (r.a.f.*)“Non-linearist”: Try it! Screw it up! Fix it! Try it again! (r.f.a.**) *Ready. Aim. Fire.**ready. Fire. Aim. (Or, circa 2006: fire. Fire. Fire.)


Cheap Shot“Linearist”: minimize cost.“Non-linearist”: maximize revenue.


“Linearist”: marketing rules.“Non-linearist”: sales rules.


“Linearist” Background: planning, marketing & finance.“Non-linearist”background: sales & operations.


“Linearist” likes: ideas.“Non-linearist” likes: people.


“Linearist” likes: parts.“Non-linearist” likes: wholes.


“Linearist” office: walls.“Non-linearist” office: none.


“Linearist” style: meetings.“Non-linearist” style: m.b.w.a.* *Managing by wandering around


“Linearist” reads: michael porter. Peter drucker.*“Non-linearist”reads: waterman & peters. Tom clancy.** *Michael & peter**Bob & tom & tom


“Linearist” reads: michael porter. Peter drucker.“Non-linearist”reads: doesn’t


“Linearist” preferred baseball score: 1-0.“Non-linearist” preferred baseball score: 11-9.


“Linearist” preferred football score: 7-0.“Non-linearist” preferred football score: 41-38.


“Linearist” criminal record: none.“Non-linearist” criminal record: disorderly conduct.Chronic jaywalking.


“Linearist” drives: lincoln town car. Ford explorer (weekends).“Non-linearist”drives: bmw. Harley-davidson (weekends).


The (Strange) Case of Peter Drucker & Michael Porter vs. The “Non-linearists”HERBERT SIMON. (Administrative Behavior.) JAMES MARCH. KARL WEICK. (The Social Psychology of Organizing.) EUGENE WEBB. Henry MINTZBERG. (The Rise and Fall of Strategic Planning.) JAMES UTTERBACK. THOMAS KUHN. (The Structure of Scientific Revolutions.)CHARLES LINDBLOM. Daniel goleman. INNOVATION BIOGRAPHERS.*(*Transcontinental Railroad, Electrification, Radio, Television, Containerization, DNA, Computers, Military History, Etc.)MOST POLITICAL SCIENTISTS. SILICON VALLEY. Etc.


EXCELLENCE.ACTION.


M.I.A.Action! *Implementation! **The Work Itself! ****R.F.A.**Execution***WOW Projects!


“We design intelligent strategies—but they fall miles short of their for one reason. Poor organizational effectiveness which in turn leads to a gaping ‘implementation deficit.’ Tom, I want you to get a handle on the best thinking and best practices from around the world.”—Ron Daniel (1977*)*TP/1977/first (?) Stanford Ph.D. thesis studying implementation per se.


1979-2006Still missing after all these years …


“Ninety percent of what we call ‘management’ consists of making it difficult for people to get things done.”– Peter Drucker


TP/BW on BigCo Sin #1:“too much talk, too little do”


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”


“Never forget implementation boys. In our work it’s what I call the ‘missing 98 percent’ of the client puzzle.”—Al McDonald, former Managing Director, McKinsey & Co, to a project team that included TP


“Operations ispolicy.”—Fred Malek (1974)“Execution is strategy.”—TP (1983)


“METABOLIC MANAGEMENT”


The Leadership111. Talent Management2. Metabolic Management3. Technology Management4. Barrier Management5. Forgetful Management6. Metaphysical Management7. Opportunity Management8. Portfolio Management9. Failure Management10. Cause Management11. Passion Management


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


“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


“How we feel about the evolving future tells us who we are as individuals and as a civilization:Do we search for stasis—a regulated, engineered world? Or do we embrace dynamism—a world of constant creation, discovery and competition?Do we value stability and control or evolution and learning? Do we think that progress requires a central blueprint, or do we see it as a decentralized, evolutionary process?? Do we see mistakes as permanent disasters, or the correctable byproducts of experimentation? Do we crave predictability or relish surprise? These two poles, stasis and dynamism, increasingly define our political, intellectual and cultural landscape.”—Virginia Postrel, The Future and Its Enemies


“If things seem under control, you’re just not going fast enough.”—Mario Andretti


“The most successful people are those who are good at plan B.”—James Yorke, mathematician, on chaos theory in The New Scientist


“I’m not comfortable unless I’m uncomfortable.”—Jay Chiat


“If it works, it’s obsolete.”—Marshall McLuhan


Boyd on TEMPO


He who has the quickest O.O.D.A. Loops* wins!*Observe. Orient. Decide. Act./Col. John Boyd


“The stuff has got to be implicit. If it is explicit, you can’t do it fast enough.”—John BoydBOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)


Tempo!*70-10*Boyd/O.O.D.A. Loops/Mike Leach/Texas Tech


70-10/Nebraska/ UnkQB 643 yards K.State/ Linemen spread wide/All legals go out for pass/Defenders confused & tire(Boyd/Tempo is not speed/“Re-arrange the mind of the enemy”—T.E. Lawrence)/“By changing the geometry of the game, and pushing the limits of space and time on the gridiron, Mike Leach is taking Texas Tech to some far out places.”—Michael Lewis (NY Times, onMike Leach/Texas Tech)


“In war, delay is fatal.”—Napoleon “The only way to whip an army is to go out and fight it.”—Grant“ … demonstrating the tactic that would become his hallmark: the immediate move to seek out the enemy and attack him”—John Mosier, on Grant“A good plan executed right now is far preferable to a ‘perfect’ plan executed next week.”—Patton


Relentless!**Churchill, Grant, Patton, Welch, Bossidy, Nardelli (GE execs), UPS, FedEx, Microsoft/Gates-Ballmer, Eisner, Weill, eBay, Nixon-Kissinger, Gerstner, Rice, Jordan, Armstrong


EXCELLENCE. ACTION.ROOTS.


GRANTNELSONBOYDFISHERBOSSIDYPEROTMASTERSHERBMcDONALDPETERS-WATERMANHAMLET+


GRANT


“The only way to whip an army is to go out and fight it.”—GrantSource: John Mosier, Grant


“He never credited the enemy with the capacity to take the offensive.”/185 “tenacity [like Wellington]”/187 “I haven’t despaired of whipping them yet” [at a very low point]/195 “Both sides seemed defeated and whoever assumed the offensive was sure to win.”/200 … “inchoate bond [between Grant and soldiers]”/201 … “The genius of Grant’s 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.”/202 “If anyone other than Grant had been in command, the Union army certainly would have retreated.”/204 Lincoln (urged to fire Grant): “I can’t spare this man; he fights.”/205 “Grant turned defeat into Union victory.”/206 “moved on intuition, which he often could not explain or justify.”/208 “instinctive recognition that victory lay in relentlessly hounding a defeated army into surrender.”/213 Nathan Bedford Forrest, successful Confederate commander: “amenable to no known rules of procedure, was a law unto himself for all military acts, and was constantly doing the unexpected at all times

and places.”/213


“The genius of Grant’s 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


“A generation of American officers had been schooled to believe the art of generalship required rigid adherence to certain textbook theorems.”/151 “The nature of Grant’s greatness has been a riddle to many observers. … did not hedge his bets … disregarded explicit instructions … nothing to fall back on … violating every maxim held dear by the military profession … new dimension: ability to learn from the battlefield … finished near the bottom of his [West Point] class in tactics … carried the fight to the enemy … maintain the momentum of the attack … military greatness is the ability to recognize and respond to opportunities presented.”/152-3 “Grant had an aversion to digging in.”/153 “Grant had an intangible advantage. He knew what he wanted.”/153 “Grant’s seven-mile dash changed the course of the war.”/157 “The one who attacks first will be victorious.”/158 “dogged”/159 “unconditional surrender”/162 “simplicity and determination”/166 “quickness of mind that allowed him to make on the spot adjustments … [his] battles were not elegant set-piece operations”/166 “[other Union general] preferred preparation to execution … became a friend of detail … suffered from ‘the slows’ …”/170 Message to Halleck from McClellan: “Do not hesitate to arrest him” [following great victory]/172 … “learned how to withstand attacks from the rear” [Army politics]/179


“The commanding general would be in the field”/228 Lincoln: “What I want, and what the people want, is generals who will fight battles and win victories. Grant has done this and I propose to stand by him.”/231 “retains his hold upon the affections of his men”/232 “Grant’s moral courage—his willingness to choose a path from which there could be no return—set him apart from most commanders … were [Grant and Lee] were uniquely willing to take full responsibility for their actions.”/233 “ … modest … honest … nothing could perturb … never faltered …”/233 “plan was breathtakingly simple but fraught with peril”/235 “demonstrating the flexibility that had become his hallmark”/238 “But like any West Point trained general, he had difficulty comprehending what Grant was up to …”/240 “recognized the value of momentum … throw off balance … blitzkrieg … traveling light … headquarters in the saddle”/243 “acted as quartermaster”/243 [rushed away so that he couldn’t receive Halleck’s order] … “like Lord Nelson … telescope to his blind eye” … “pressing ahead on his own”/245 “focus on the enemy’s weakness rather than his own”/250


“recognized the value of momentum … throw [opponent] off balance … blitzkrieg … traveling light … headquarters in the saddle”—Jean Edward Smith/GRANT


“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 on Simplicity, from Napoleon

on Project Management by Jerry Manas.


“Above all the troops appreciated Grant’s unassuming manner. Most generals went about attended by a retinue of immaculately tailored staff officers. Grant usually rode alone, except for an orderly or two to carry messages if the need arose. Another soldier said the soldiers looked on Grant ‘as a friendly partner, not an arbitrary commander.’ Instead of cheering as he rode by, they would ‘greet him as they would address one of their neighbors at home. ‘Good morning, General,’ ‘Pleasant day, General’ … There was no nonsense, no sentiment; only a plain businessman of the republic, there for the one single purpose of getting that command over the river in the shortest time possible.’” [Grant: 5-feet 8-inches with a slouch]/232 After the victory at Chattanooga: “The [Union senior] officers rode past the Confederates smugly without any sign of recognition except by one. ‘When General Grant reached the line of ragged, filthy, bloody, despairing prisoners strung out on each side of the bridge, he lifted his hat and held it over his head until he passed the last man of that living funeral cortege. He was the only officer in that whole train who recognized us as being on the face of the earth.’”/ 281 “Grant was unhappy about going into winter quarters. He saw no reason to keep the army idle, and the pause would give the rebels time to reorganize.”/282


“The [Union senior] officers rode past the Confederates smugly without any sign of recognition except by one. ‘When General Grant reached the line of ragged, filthy, bloody, despairing prisoners strung out on each side of the bridge, he lifted his hat and held it over his head until he passed the last man of that living funeral cortege. He was the only officer in that whole train who recognized us as being on the face of the earth.’*”

*quote within a quote from diary of a Confederate soldier


From LEE KENNETT’s SHERMAN: “Grant tended to be a simple listener when these two strategies [for taking Vicksburg] were being discussed. His own preference may have been impelled as much by natural inclination as by any arguments he heard. He wrote afterward: ‘One of my superstitions had always been when I started to go anywhere or to do anything, not to turn back, or stop, until the thing intended was accomplished.’”/ 202


CWVA to MBWA:“In these days of telegraph and steam I cancommand while traveling and visiting about.”—U.S. GrantManaging by wandering around”—HP circa 1980Source: Ulysses S. Grant, by Geoffrey Perret


TP’s take:Intuition takes precedence (listen attentively but act on intuition) … Move today > perfect plan tomorrow [subsequent Patton line] … Great advantage: When moving, you know what you’re up to and you’re moving [the one sitting still is, thence, always reactive] [Boyd: quickest O.O.D.A. loops/Observe. Orient. Decide. Act. Disorient enemy]… Action! ... Keep moving! … Engage! … Offense! [weakness-strength: can’t even imagine enemy counter-attacking; little conception of defense] … Momentum! …. Keep ’em off balance … … Adjust … Adapt … … Opportunism! … Constantly revise in accordance with conditions and opportunities in the field [life = excellence at “Plan B”] … Doggedness … Relentless!! [trait shaped in early childhood] … Never retreat … Simplicity! … Wide latitude for division commanders … minimum written orders, conferences, etc … keep his own council … HQ is Grant & his horse … no retinue! … commune with soldiers/exude quiet confidence/Approachable … decent … Self-accountability! … Evade orders (or ignore) … Share harm & hardship … total victory/ demand “unconditional surrender”—G’s first claim to fame [Nelson: other Admirals avoid loss, friend and foe as in Grant’s case vs Nelson’s seek victory] … [Life 101: politics between the Generals:

E.g., Grant & Halleck]


"The art of war is simple enough. Find out where your enemy is. Get at him as soon as you can. Strike at him as hard as you can and as often as you can, and keep moving on."—Grant, courtesy Richard Cauley at tompeters.com

(original source unknown)


“One of my superstitions had always been when I started to go anywhere or to do anything,not to turn back,or stop, until the thing intended was accomplished.”—Grant


NELSON


On NELSON:“[other] admirals more frightened of losing than anxious to win”


The Nelson Baker’s Dozen

1. Simple-clear scheme (“Plan”) (Not wildly imaginative) (Patton: “A good plan

executed with vigor right now tops a ‘perfect’ plan executed next week.”)2. SOARING/BOLD/CLEAR/UNEQUIVOCAL/WORTHY/NOBLE/INSPIRING

“GOAL”/“MISSION”/“PURPOSE”/“QUEST”3. “Conversation”: Engagement of All Leaders4. Leeway for Leaders: Select the Best/Dip Deep/Initiative demanded/Accountability

swift/Micromanagement absent5. LED BY “LOVE” (Lambert), NOT “AUTHORITY” (Identify with sailors!)6. Instinct/Seize the Moment/“Impetuosity” (Boyd’s “OODA Loops”: React more

quickly than opponent, destroy his “world view”)7. VIGOR! (Zander: leader as “Dispenser of Enthusiasm”)8. Peerless Basic Skills/Mastery of Craft (Seamanship)9. Workaholic! (“Duty” first, second, and third)10. LEAD BY CONFIDENT & DETERMINED & CONTINUOUS & VISIBLE EXAMPLE (In

Harm’s Way) (Gandhi: “You must be the change you wish to see in the world”/

Giuliani: Show up!)11. Genius (“Transform the world to conform to their ideas,” “Triumph over rules”)

(Gandhi, Lee-Singapore) , not Greatness (“Make the most of their world”)

12. Luck! (Right time, right place; survivor) (“Lucky Eagle” vs “Bold Eagle”)

13. Others principal shortcoming: “ADMIRALS MORE FRIGHTENED OF LOSING THAN ANXIOUS TO WIN”

Source: Andrew Lambert, Nelson: Britannia’s God of War


Nelson’s Way: A Baker’s Dozen/Short

1. Simple scheme.

2. Noble purpose!

3. Engage others.

4. Find great talent, let it soar!

5. Lead by Love!

6. Trust your gut, not the focus group: Seize the Moment!

7. Vigor!

8. Master your craft.

9. Work harder than the next person.

10. Show the way, walk the talk, exude confidence! Start a Passion

Epidemic!

11. Change the rules: Create your own game!

12. Shake of the pain, get back up off the ground, the timing may well be

right tomorrow! (E.g., Get lucky!)

13. By hook or by crook, quash your fear of failure, savor your quirkiness

and participate fully in the fray!

Source: Andrew Lambert, Nelson: Britannia’s God of War


BOYD


He who has the quickest “O.O.D.A. Loops”* wins!*Observe. Orient. Decide. Act. /Col. John Boyd


“Blitzkrieg is far more than lightning thrusts that most people think of when they hear the term; rather it was all about high operational tempo and the rapid exploitation of opportunity.”—Robert Coram, Boyd“Re-arrange the mind of the enemy”—T.E. Lawrence“Float like a butterfly, sting like a bee”—AliBOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)


F86 vs. MiG/Korea/10:1Bubble canopy (360 degree view)Full hydraulic controls (“The F86 driver could go from one maneuver to another faster than the MiG driver”)MiG: “faster in raw acceleration and turning ability”; F86: “quicker in changing maneuvers”BOYD:The Fighter Pilot Who Changed the Art of War (Robert Coram)


USMC COL Mike Wyly:“kept the enemy off-balance; they knew Delta Company [RVN] could show up anywhere, anytime”BOYD: The Fighter Pilot Who Changed the Art of War (Robert Coram)


FISHER


FisherismsDo 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.Source: Jan Morris, Fisher’s Face, Or, Getting to Know the Admiral


BOSSIDY


“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 is the jobof the businessleader.”—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


The Leader’s Seven Essential Behaviors*Know your people and your business*Insist on realism*Set clear goals and priorities*Follow through*Reward the doers*Expand people’s capabilities*Know yourselfSource: Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done


Action8/VPMR+/Peters on Bossidy*Knowledge/External Focus (Competitors/Customers)*Realism/Truth-telling*Vision*Projects(Must add up to Vision)*Milestones*Commitment/Energy*RapidReview*Consequences (+/-)


“The person who is a little less conceptual but is absolutely determined to succeed will usually find the right people and get them together to achieve objectives. I’m not knocking education or looking for dumb people. But if you have to choose between someone with a staggering IQ and an elite education who’s gliding along, and someone with a lower IQ but who is absolutely determined to succeed, you’ll always do better with the second person.”—Larry Bossidy (Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done)


Duct Tape Rules!“Andrew Higgins, who built landing craft in WWII, refused to hire graduates of engineering schools.He believed that they only teach you what you can’t do in engineering school. He started off with 20 employees, and by the middle of the war had 30,000 working for him. He turned out 20,000 landing craft. D.D. Eisenhower told me, ‘Andrew Higgins won the war for us. He did it without engineers.’”—Stephen Ambrose/Fast Company


PEROT


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


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


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


MASTERS


“This is so simple it sounds stupid, but it is amazing how few oil people really understand that you only find oil if you drill wells.You may think you’re finding it when you’re drawing maps and

studying logs, but you have to drill.”

Source: The Hunters, by John Masters, Canadian O & G wildcatter


You only find oil if you

drill wells.

Source: The Hunters, by John Masters, Canadian O & G wildcatter


drill.

Source: The Hunters, by John Masters, Canadian O & G wildcatter


HERB


doing things.— Herb Kelleher


McDONALD


“Never forget implementation boys. In our work it’s what I call the ‘missing 98 percent’ of the client puzzle.”—Al McDonald


PETERS-WATERMAN


“Do it. Fix it. Try it.”Tom Peters/Business Week/07.1978 (Principal #1/first anticipation of “Excellence”)


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”


PETERS: THE “ACT. THINK.”CHRONICLES


“Think”vs“Do”


A>BvsB>A


CK Chesterton:“How do I know what I think until I see what I say?”

Reporter:“Mr Drucker, why are you still giving speeches at 90?”

PD:“How else can I figure out what I’m thinking?”


TP:No plan, total accountabilityTK:Perfect plan, no accountability**LG & IBM


“My only goal is to have no goals.The goal, every time, is that film, that very moment.”—Bernardo Bertolucci


“Experiment fearlessly”Source: BW0821.06, Type A Organization Strategies/ “How to Hit a Moving Target”—Tactic #1


Power of the …“Small Win”/ String of(TP/1977; KW;EJW)


“We made mistakes, of course. Most of them were omissions we didn’t 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, we’re already on prototype versionNo. 5.By the time our rivals are ready with wires and screws, we are on versionNo. 10.It gets back to planning versus acting: We act from day one; others plan how to plan—for months.”—Bloomberg by Bloomberg


HAMLET+


“By indirections find directions out.”—Hamlet, II. i


“My only goal is to have no goals. The goal, every time, is that film, that very moment.”—Bernardo Bertolucci


EXCELLENCE. 4/40.


4/40


De-cent-ral-iz-a-tion!


“‘Decentralization’ is not a piece of paper. It’s notme. It’s either in your heart, or not.”—Brian Joffe/BIDvest


“If if feels painful and scary—that’s real delegation”—Caspian Woods, small biz owner


“HOW THE COAST GUARD GETS IT RIGHT”—Headline, Time, 10.31.2005*Autonomy*Flexibility*“Perhaps the most important distinction of the Coast Guard is that it trusts itself”


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


Ex-e-cu-tion!


“Execution is the jobof the businessleader.”—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


“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


“The person who is a little less conceptual but is absolutely determined to succeed will usually find the right people and get them together to achieve objectives. I’m not knocking education or looking for dumb people.But if you have to choose between someone with a staggering IQ and an elite education who’s gliding along, and someone with a lower IQ but who is absolutely determined to succeed, you’ll always do better with the second person.”—Larry Bossidy/Execution: The Discipline of Getting Things Done


"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


“Never forget implementation boys. In our work it’s what I call the ‘missing 98 percent’ of the client puzzle.”—Al McDonald


Ac-count-a-bil-ity!


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


“robust dialogue”—Larry Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done


“GE has set a standard of candor. … There is no puffery. … There isn’t an ounce of denial in the place.”—Kevin Sharer, CEO Amgen, on the “GE mystique” (Fortune)


6:15A.M.


????????Work Hard > Work Smart


A man approached JP 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,” JP 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.JP 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 …


1. Every morning, write a list of the things that need to be done that day.2.Do them.Source: Hugh MacLeod/tompeters.com/NPR


DECENTRALIZATION.EXECUTION.ACCOUTABILITY.6:15A.M.


EXCELLENCE. VALUE ADDED.UP THE LADDER.


$55B


And the “M” Stands for … ?Gerstner’s IBM:“Systems Integrator of choice.”/BW(“Lou, help us turn ‘all this’ into that long-promised ‘revolution.’ ” )IBM Global Services*(*Integrated Systems Services Corp.):$55B


Planetary Rainmaker-in-Chief!“Palmisano’s strategy is to expand tech’s borders by pushing users—and entire industries—toward radically different business models.The payoff for IBM would be access to an ocean of revenue—Palmisano estimates it at $500 billion a year—that technology companies have never been able to touch.”—Fortune


“By making the Global Delivery Model both legitimate and mainstream, we have brought the battle to our territory. That is, after all, the purpose of strategy. We have become the leaders, and incumbents [IBM, Accenture] are followers, forever playing catch-up. … However, creating a new business innovation is not enough for rules to be changed. The innovation must impact clients, competitors, investors, and society. We have seen all this in spades. Clients have embraced the model and are demanding it in even greater measure. The acuteness of their circumstance, coupled with the capability and value of our solution, has made the choice not a choice. Competitors have been dragged kicking and screaming to replicate what we do. They face trauma and disruption, but the game has changed forever.Investors have grasped that this is not a passing fancy, but a potential restructuring of the way the world operates and how value will be created in the future.”—Narayana Murthy, chairman’s letter, Infosys Annual Report


“Big Brown’s New Bag: UPSAims to Be theTraffic Manager for Corporate America”—Headline/BW/2004


“SCS”/Supply Chain Solutions: 750 locations; $2.5B; fastest growing division; 19 acquisitions, including a bankSource: Fast Company


MasterCard Advisors


“Security ‘devices’”to “Turnkey security solutions”(A/C, elevators, DIY, photo shops, etc, etc)


Home Depot Business ToolBox:Payroll processing. Credit card processing. Personnel paperwork. Mobile phones. Shipping. Health insurance. 12K customers (plumbers, electricians, small homebuilders and contractors).Source: Forbes, 0918.06


Gamechanging “Solutions”: Bet-the-CompanyIBMUPSXeroxMasterCardGEBestBuy


I. LAN Installation Co. (3%)II. Geek Squad. (30%.)III. Acquired by BestBuy.IV. Flagship of BestBuy Wholesale “Solutions” Strategy Makeover.


Huge:Customer Satisfactionversus Customer Success


Up,Up,Up, Upthe Value-added Ladder.


The Value-added Ladder/ STUFF ‘N’ THINGSGoods Raw Materials


The Value-added Ladder/Stuff & TRANSACTIONSServicesGoods Raw Materials


The Value-added Ladder/ OPPORTUNITY-SEEKINGGamechanging SolutionsServicesGoods Raw Materials


Era #1/Obvious Value: “Our ‘it’ works, is delivered on time” (“Close”)Era #2/Augmented Value: “How our ‘it’ can add value—a ‘useful it’ ” (“Solve”)Era #3/Complex Value Networks: “How our ‘system’ can change you and deliver ‘business advantage’ ” (“Culture-Strategic change”)Source: Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale


“The business of selling is not just about matching viable solutions to the customers that require them. It’s equally about managing the change process the customer will need to go through to implement the solution and achieve the value promised by the solution. One of the key differentiators of our position in the market is our attention to managing change and making change stick in our customers’ organization.”* (*E.g.: CRM failure rate/Gartner: 70%)—Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale


To The Mat: The“5 Damn Its”Women.PSF.Brand you.R.f.a.EXCELLENCE. ALWAYS.


EXCELLENCE.NECESSITY.OPPORTUNITY.


“ ‘Disintermediation’ is overrated. Those who fear disintermediation-outsourcing should in fact be afraid of irrelevance; ‘outsourcing’ is just another way of saying that …you’ve become irrelevant to your customers.”—John Battelle/Point/AdvertisingAge/07.05


Chicago:HRMAC


Sarah:“ Mom, what do you do?”Mom:“I’m ‘overhead.’”


“support function” / “cost center”/ “overhead”or …


Are you …“Rock Stars of the Age of Talent”


EXCELLENCE.SOLVE IT. NO OPTION.PSF. (PSF++)


Department Headto …Managing Partner, IS[HR, R&D, etc.]Inc.


“Typically in a mortgage company or financial services company, ‘risk management’ is an overhead, not a revenue center. We’ve become more than that.We pay for ourselves, and we actually make money for the company.”—Frank Eichorn, Director of Credit Risk Data Management Group, Wells Fargo Home Mortgage (Source: sas.com)


Mantra:“Eichorn it!”


Answer:PSF


Core Mechanism:“Game-changing Solutions”PSF(Professional Service Firm “model”/The Organizing Principle)+Brand You(“Distinct” or “Extinct”/The Talent) +Wow! Projects (“Different” vs “Better”/TheWork)


The New Enterprise Value-Added Equation/Mark2006(1) 100% “WOW PROJECTS” (New Org “DNA”/“The Work”)+ (2) Incredible “TALENT”Transformed into (3) Entrepreneurial “BRAND YOUs” and (4) Launched on Awesome “QUESTS FOR EXCELLENCE”= (5) Internal “Rockin’ PSFs” (Staff Depts. Morphed into Wildly Innovative Professional Service Firms) … (6) Which Coalesce to Transform the FEVP/Fundamental Enterprise Value Proposition from “Superior Products & Services” to “ENCOMPASSING SOLUTIONS” &“GAME-CHANGING CLIENT SUCCESS”


Big Idea/“Meta”-Idea/Premier “Engine of Value Added”(1) The Talent: “Best Roster” of Entrepreneurial-minded Brand Yous.(2) The (Virtual) Organization: Internal or External “PSF”/Professional Service Firmworking with “Best Anywhere” = Engine of Value Added through the Application of Creative “Intellectual Capital”(3) The Work Product: “Game Changer”/ “Gaspworthy” WOW Projects


Core Mechanism:“Game-changing Solutions”PSF(Professional Service Firm “model”/The Organizing Principle)+Brand You(“Distinct” or “Extinct”/The Talent) +Wow! Projects (“Different” vs “Better”/TheWork)


“Astonish me!”(SD).“Build something great!”(HY).“Make it immortal!”(DO)“Insanely great” (SJ)


“Solutions World”: TheMega-PSF


Big Idea:“Corporation” as Mega-“PSF”(Professional Service Firm*)* “Virtual” Collection of Entrepreneurially-minded Professionals (“Talent”/“Roster”) Creating/Applying Intellectual Capital (“Work Product”)


Core Mechanism:“Game-changing Solutions”Brand You(S)(“Distinct” or “Extinct”/The Talent) +Wow! Project(s) (“Different” vs “Better”/TheWork)=PSF(S)(Professional Service Firm “model”/The Organizing Principle)=“Corporation” as“Mega-PSF”


Agriculture Age (farmers)Industrial Age (factory workers)Information Age (knowledge workers)Conceptual Age*(creators)*Murakami Teruyasu: “Age of Creation Intensification”Source: Dan Pink, A Whole New Mind


The“PSF35”: Thirty-Five Professional Service Firm Marks of Excellence


The PSF35: The Work & The Legacy1.CRYSTAL CLEAR POINT OF VIEW

(E very Practice Group: “If you can’t explain your position in eight

words or less, you don’t have a position”—Seth Godin)2. DRAMATIC DIFFERENCE (“We are the only ones who do what

we do”—Jerry Garcia)3. Stretch Is Routine (“Never bite off less than you can chew”—anon.)4. Eye-Appetite for Game-changer Projects (Excellence at Assembling

“Best Team”—Fast) 5. “Playful” Clients (Adventurous folks who unfailingly Aim to Change

the World)6. Small “Uneconomic” Clients with Big Aims

7. Life Is Too Short to Work with Jerks (Fire lousy clients)8. OBSESSED WITH LEGACY (Practice Group and Individual: “Dent the

Universe”—Steve Jobs)9. Fire-on-the-spot Anyone Who Says, “Law/Architecture/Consulting/

I-banking/ Accounting/PR/Etc. has become a ‘commodity’ ”

10. Consistent with #9 above … DO NOT SHY AWAY FROM THE

WORD (IDEA) “RADICAL”


?????Do good (excellent?!) workMake a lot of money


Pointed Point of View!


R.POV8**Remarkable Point Of View/8 Words or less/“If you can’t state your position in eight words or less you don’t have a position.”—SG


“If you can’t write your movie idea on the back of a business card, you ain’t got a movie.”—Samuel Goldwyn


The PSF35: The Client Experience11. Always team with client: “full partners in achieving memorable results”(Wanted: “Chimeras of Moonstruck Minds”!)12. We will seek assistance Anywhere to assemble the Best-in- Planet Team for the Project13. Client Team Members routinely declare that working with us was “the Peak Experience of my Career”14. The job’s not done until implementation is “100.00% complete” (Those who don’t “get it” must go)15.IMPLEMENTATION IS NOTCOMPLETE UNTIL THE CLIENT HAS EXPERIENCED “CULTURE CHANGE”16.IMPLEMENTATION IS NOTCOMPLETE UNTIL SIGNIFICANT “TECHNOLOGY TRANSFER HAS TAKEN PLACE-ROOT(“Teach a man to fish …”)17.The Final Exam: DID WE MAKE A DRAMATIC, LASTING, GAME-CHANGING DIFFERENCE?


“The business of selling is not just about matching viable solutions to the customers that require them. It’s equally about managing the change process the customer will need to go through to implement the solution and achieve the value promised bythe solution.”*(*E.g.: CRM failure rate/Gartner: 70%)—Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale


UniCredit Group/ UniCredito Italiano* **—3rd party measurement—Customer-initiated measurement—Primary $$$$ incentives—“Factories”—Primary Corporate Initiative—Etc*#13**TP/#1


The PSF35: The People & The Leadership18. TALENT FANATICS (“Best-Coolest place to work”) (PERIOD)19. EYE FOR THE PECULIAR (Hiring: Go beyond “same old,

same old”) 20. Early Opportunities (vs. “Wait your turn”) 21. Up or Out (Based on “Legacy”/Mentoring as much as

“Billings”/“Rainmaking”)22. Slide the Old Aside/Make Room for Youth (Find oldsters

new roles?)23. TALENT IS OBSESSED WITH RENEWAL FROM DAY #1 TO

DAY #“R” [R = Retirement]24. Office/Practice Leaders Evaluated Primarily on

Mentoring-Team Building Skills

25. A “PROPRIETARY” TALENT DEVELOPMENT PROCESS (GE)

26. Team Leadership Skills Valued Early27. Partner with B.I.W. [Best In World] Outsiders as Needed

and to Infuse Different Views


The PSF35: The Firm & The Brand28. EAT-SLEEP-BREATHE-OOZE INTEGRITY (“My life is

my message”—Gandhi)

29. Excellence+ in EXECUTION … 100.00% of the Time

(No such thing as a “small sins”/World Series Ring to

the Batboy!) 30. “Drop everything”/“Swarm” to Support a Harried-On

The Verge Team31. SPEND AS AGGRESSIVELY ON R&D AS A TECH FIRM OR

CIRQUE DU SOLEIL

32. A PROPRIETARY METHODOLOGY (FBR, McKinsey, Chiat Day, IDEO, old EDS)33. Web (Technology) Obsession

34. BRAND/“LOVEMARK” MANIACS (Organize Around a Point

of View Worth BROADCASTING: “You must be the

change you wish to see in the world”—Gandhi)

35. PASSION! ENTHUSIASM! (Passion & Enthusiasm have as

much a place at the Head Table in a “PSF” as in a

widgets factory: “You can’t behave in a calm, rational

manner. You’ve got to be out there on the lunatic

fringe”—Jack Welch)


The PSF35: The Firm & The Brand28. EAT-SLEEP-BREATHE-OOZE INTEGRITY (“My life

is my message”—Gandhi)

29. Excellence+ in EXECUTION… 100.00% of the Time30. “Drop everything”/“Swarm” to Support a Harried-On

The Verge Team31. SPEND ON R&D LIKE A TECH FIRM.

32. A PROPRIETARY METHODOLOGY (FBR, McKinsey,

Chiat Day, IDEO, old EDS)

33. BRAND MANIACS(Organize Around a Point of View Worth

BROADCASTING)

34. PASSION! ENTHUSIASM!

35.EXCELLENCE. ALWAYS.


“PSF” NirvanaCounselorTrusted Advisor


Answer:PSF


PSF + BY + WP = VA


PSF + BY + WP + DD + E = UVA


PSF + BY + WP + DD + E = UVA


PSF (Professional Service Firm) + BY(Brand You) + WP (WOW Projects) + DD (Dramatic Difference) + E (Excellence) = UVA (Unassailable Value-Added)


Answer:PSF


“Big Brown’s New Bag: UPS Aims to Be theTraffic Manager for Corporate America”—Headline/BW/2004


I. LAN Installation Co. (3%)II. Geek Squad. (30%.)III. Acquired by BestBuy.IV. Flagship of BestBuy Wholesale “Solutions” Strategy Makeover.


Static/ImitativeIntegrity.Quality.Continuous Improvement.Superior Service (Exceeds Expectations.)Completely Satisfactory Transaction.Smooth Evolution.Market Share.Dynamic/DifferentDramatic Difference!Disruptive!Insanely Great! (Quality++++)Life-(Industry-)changing Experience!Game-changing!WOW!Surprise!Delight!Breathtaking!Punctuated Equilibrium!Market Creation!


EXCELLENCE =Flawless EXECUTION+ Continuous IMPROVEMENT+ Brilliantly Trained PEOPLE+Gamechanging QUESTS + WEIRD Rosters +GASPWORTHY Results


EXCELLENCE. ATTITUDE.TRANSFORMATION.PSF.


Are you the …“Principal Engine of Value Added”*E.g.: Your R&D budget as robust as the New Products team?


Fleet ManagerRolling Stock CostMinimization Officervs/orChief of Fleet Lifetime Value MaximizationStrategic Supply-chain ExecutiveCustomer Experience Director (via drivers)


“Purchasing Officer” Thrust #1:Cost (at All Costs*) Minimization Professional?Or/to:FullPartner-Leader in Lifetime Value-added Maximization?(*Lopez: “Arguably ‘Villain #1’ in GM tragedy”/Anon VSE-Spain)


HCare CIO: “Technology Executive”(workin’ in a hospital)Or/to:Full-scale, Accountable(life or death)Member-Partner of XYZ Hospital’s Senior Healing-Services Team(who happens to be a techie)


PSF Transformation: Credit Department/TrekWasIsCredit DeptFinancial ServicesHammer on dealers untilMake dealers successful so theythey payCAN payAR sold to 3rd partyTrek is the commercial financialcommercial co.Company23 employees12 employeesOversee peak AR of $70MOversee peak AR of $160MIdentify risky dealersIdentify opportunitiesCost CenterProfit CenterNo productsProducts: Consulting, MC/Visa,Stored value of gift cards, Gift cardperipherals, Online paymentsSource: John Burke/0330.06


Trapper: <$20 per beaver pelt.Source: WSJ


WDCP*:$150 to remove “problem beaver”; $750-$1,000 for flood-control piping … so that beavers can stay.*“Wildlife Damage-control Professional”Source: WSJ


The WOW! Project.


“Let’s make a dent in the universe!”—Steve Jobs


Your Current Project?1. Another day’s work/Pays the rent.4. Of value.7. Pretty Damn Cool/Definitely subversive.10.WE AIM TO CHANGE THE WORLD.(Insane!/Insanely Great!/WOW!)


“Astonish me!”(S.D).“Build something great!”(H.Y.).“Make it immortal!”(D.O.)


If you are not prepared to be fired over your beliefs … you are working on the wrong project.—TP


Will you actually remember it as worthwhile 10 years from now?”—S.H.


You! = Your Project Portfolio!


A “position” is not an “accomplishment.”—TP


WOW! Projects: Nuts & Bolts (a few)


Playmate!*Playpen!*Can be Client, supplier … as well as Insider


Playmate!*Playpen!Prototype!*Can be Client, supplier … as well as Insider


Where to look for “Playmates”: F.F.F.F.(Find a Fellow Freak Faraway)


Forward, march: The “Sri Lanka Stratagem”


Where NOT to look for “Playmates”:BIG Division, BIG Customer, BIG Vendor,UP


Culture of Prototyping“Effective prototyping may be the most valuable core competence an innovative organization can hope to have.”—Michael Schrage


Prototype mania/maniac!*


THE PROJECT 50


Starting aWOW! Projects Epidemic:Demos, Heroes, Stories!


Premise:“Ordering” Systemic Change is a Waste of Time!


“Somewhere in your organization, groups of people are already doing things differently and better. To create lasting change, find these areas of positive deviance and fan the flames.”—Richard Tanner Pascale & Jerry Sternin, “Your Company’s Secret Change Agents,” HBR


“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 (Mr ReGo)


Demos! Heroes! Stories!


Demo = Story“A key – perhaps the key – to leadership is the effective communication of a story.”—Howard Gardner, Leading Minds: An Anatomy of Leadership


Best story wins!


REAL Org Change:Demos & Models (“Model Installations,” “ReGo Labs”)/ Heroes(mostly extant: “burned to reinvent gov’t”)/ Stories&Storytellers (Props!)/ Chroniclers (Writers, Videographers, Pamphleteers, Etc.)/ Cheerleaders&Recognition(Pos>>Neg, Volume)/ New Language (Hot/Emotional/WOW)/ Seekers(networking mania)/ Protectors/ Support Groups/ End Runs—“Pull Strategy” (weird alliances, weird customers, weird suppliers, weird alumnae-JKC)/ Field “Real People” Focus(3 COs) (long way away)/Speed (O.O.D.A. Loops—act before the “bad guys” can react)C.f., Bob Stone, Lessons from an Uncivil Servant


JKC1. Scour for renegades; wine & dine.2. Go outside for funds.


JKC


“Make your ownMcKinsey”(AP)


Build a “School on top of a school”/Continuing-Exec Ed(The Parallel Universe Strategy)


Stories … Paint me a picture … Story “infrastructure” … Demos … Quick prototypes … Experiments … Heroes … Renegades … Skunkworks … Demo Funds … V.C. … G.M. … Roster … Portfolio … Stone’s Rules … JKC’s Rules


Tempo:He who has the quickest O.O.D.A. Loops* wins!*Observe. Orient. Decide. Act. / Col. John Boyd


Subversive ChangeBe(very)ware “genetic constraints” (history’s looong arm)You must “do” GandhiHire weird (fulltime or temp)Find the extant crazies (troll for them via offers to join weird project teams)Create a (quiet) “Crazies Club”/Keep extendin’ the WebCreate “boondocks projects” by the truckload (with partners of every flavor)Understand: Yours is a “protection racket”Sky High Standards!! (There’s a deadly serious reason for “all this”—life or death)TP Heroes: Allan Puckett; Bob Stone; Jill Ker Conway; Kelly Johnson; John Boyd


“Never doubt that a small group of committed people can change the world. Indeed it is the only thing that ever has.”—Margaret Mead


SP: “But can you turn a ‘defensive player’ into an ‘offensive player’?”TP:“Yes! Work with him/her to re-frame their principal project to the point that their ego is fully engaged and it becomes something of a ‘life compulsion.’ ” * *“If you and I had $150K in the bank and on the line and the day before the opening the Fire Inspector …”


EXCELLE ALWAYS.


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