New PP stuff. Tom Peters. 20.August.2010.

1. New PP stuff.Tom Peters.20.August.2010.

2. NOTE:To appreciate this presentation [and insure that it is not amess], you need Microsoft fonts:“Showcard Gothic,”“Ravie,”“Chiller”and “Verdana”

3. Problem #1.Opportunity #1.Slide #1.

4. XFX = #1

5. The Strategic Importance of XFX(Cross-functional eXcellence) I intend to start using this as a “stand alone” 1st slide. I believe that in most any organization of, say, more than a dozen people, the #1 issue is “cross-functional communication-integration.” It is both “Problem #1” and “Opportunity #1.” From intelligence pattern recognition to order execution to innovation, our INTERNAL barriers, not our competitors’ cleverness, are the principal impediment to effectiveness. I suspect we all agree with that. But is it—AND IT RARELY IS—literally seen as “SO1”—Strategic Opportunity #1? (Please do me the honor of thinking about this.)

6. Five Or Less Words To The Wise

7. EXCELLENCE/Five Or Less Words To The Wise 4 most important words: “What do you think?” (Dave Wheeler @ tompeters.com: “Most important 4 words in an organization.”) 4 most important words: “How can I help?” (Boss as CHRO/ Chief Hurdle Removal Officer) 2 most important words: “Thank you!” (Appreciation/ Recognition) 2 most important words: “All yours.” (“Hands-off” delegation/ Respect/Trust) 3 most important words: “I’m going out.” (MBWA/Managing By Wandering Around/In touch!) 2 most important words: “I’m sorry.” (Power of unconditional apology = Stunning! Marshall Goldsmith: #1 exec issue) 5 most important words: “Did you tell the customer?” (Over- communicate) 2 most important words: “She says …” (“She” is the customer!)

8. EXCELLENCE/Five Or Less Words To The Wise 2 most important words: “Yes ma’am.” (Women are more often than not the best managers.) 2 most important words: “Try it!” (My only “for sure” in 44 years: Herb Kelleher: “We have a strategic plan, it’s called doing things.”/Bill Parcells: “Blame no one. Expect nothing. Do something.”) 3 most important words: “Try it again!” (My only “for sure” 44 years: MOST TRIES WINS.) 2 most important words: “Good try!” (CELEBRATE “good failures.” Richard Farson/book: Whoever Makes the Most Mistakes Wins. Samuel Beckett: “Fail. Fail again. Fail better.”) 3 most important words: “At your service.” (Organizations exist to serve. Period. Leaders live to serve. Period.) 4 most important words: “How are we doing?” (To customers, regularly.) 4 most important words: “How was Mary’s recital?” (Know your employees’ kids.) 2 most important words: “Let’s party!” (Celebrate “small wins” at the drop of a hat.)

9. EXCELLENCE/Five Or Less Words To The Wise 1 most important word: “No.” (“To don’ts” > “To dos”) 1 most important word: “Yes.” (Hey, give it a shot/Anon. quote: “The best answer is always, ‘What the hell.’”/Wayne Gretzky: “You miss 100% of the shots you don’t take.”) 2 most important words: “Lunch today?” (“Social stuff” = Secret to problem/opportunity #1:/XFX/ cross-functional Excellence.) 4 most important words: “Thank Dick in accounting.” (Readily acknowledge help from other functions.) 2 most important words: “After you.” (Courtesy rules.) 3 most important words: “Thanks for coming.” (Civility. E.g., boss acknowledges employee coming to her/his office.) 2 most important words: “Great smile!” (Note & acknowledge good attitude.) 1 most important word: “Wow!” (The gold standard … for everything.) 1 most important word: “EXCELLENT!” (The … ONLY … acceptable standard/aspiration.)

10. X15/The Excellence 15+

11. The EXCELLENCE 15 People 1st/ “‘Cathedral’ for human development” Best 1st-line managers Quality of relationships (Internal/External) Try it! Try it again! Passion!/Energy!/Wow! Unstinting commitment to innovation by ALL Excellence at “Plan B”/Adaptability Fanatic about execution XFX/Cross-functional eXcellence Integrity/Decency/Thoughtfulness/Character LX/Listening eXcellence Commitment to SERVICE Commitment to EXCELLENCE Servant leadership

12. PXX = People. eXecution. eXcellence.

13. EXCELLENCE. Always.If not EXCELLENCE, what?If not EXCELLENCE now, when? EXCELLENCE is not an "aspiration."EXCELLENCE is not a "journey."EXCELLENCE is the next five minutes. Organizations exist to SERVE. Period.Leaders exist to SERVE. Period. SERVICE is a beautiful word. SERVICE is a beautiful word. SERVICE is character, community, commitment. (And profit.)SERVICE is a beautiful word. SERVICE is not "Wow." SERVICE is not "raving fans.“ SERVICE is not "a great experience." Service is "just" that—SERVICE.

14. 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 leaders—the alpha and the omega and everything in between—is 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. We—leaders of every stripe—are 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.

15. Zappos 10 Corporate ValuesDeliver “WOW!” through service.Embrace and drive change.Create fun and a little weirdness.Be adventurous, creative and open-minded.Pursue growth and learning.Build open and honest relationships with communication.Build a positive team and family spirit.Do more with less.Be passionate and determined.Be humble.

16. “Too Much Cost, Not Enough Value” “Too Much Speculation, Not Enough Investment” “Too Much Complexity, Not Enough Simplicity” “Too Much Counting, Not Enough Trust” “Too Much Business Conduct, Not Enough Professional Conduct” “Too Much Salesmanship, Not Enough Stewardship” “Too Much Focus on Things, Not Enough Focus on Commitment” “Too Many Twenty-first Century Values, Not Enough Eighteenth-Century Values” “Too Much ‘Success,’ Not Enough Character” Source: Jack Bogle, Enough! (chapter titles)

17. “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.’”— John Bogle, Enough. The Measures of Money, Business, and Life (Bogle is founder of the Vanguard Mutual Fund Group)

18. The “19 Es” of EXCELLENCE Enthusiasm! (Be an irresistible force of nature! Be fire! Light fires!) Exuberance! (Vibrate—cause earthquakes!) Execution! (Do it! Now! Get it done! Barriers are baloney! Excuses are for wimps! Accountability is gospel! Adhere to coach Bill Parcells’ doctrine: “Blame nobody!! Expect nothing!! Do something!!”) Empowerment! (Respect! Appreciation! Ask until you’re blue in the face, “What do you think?” Then: Listen! Liberate! 100.00% innovators!) Edginess! (Perpetually dance at the frontier and a little, or a lot, beyond.) Enraged! (Maintain a permanent state of mortal combat with the status-quo!) Engaged! (Addicted to MBWA/Managing By Wandering Around. In touch. Always.) Electronic! (Partner with the whole wide world 60/60/24/7 via all manner of electronic community building and entanglement. Crowdsourcing wins!) Encompassing! (Relentlessly pursue diversity of every flavor! Diversity per se generates big returns!) (Seeking superb leaders: Women rule!) Emotion! (The alpha! The omega! The essence of leadership! The essence of sales! The essence of design! The essence of life itself! Acknowledge it! Use it!) Empathy! (Connect! Connect! Connect! Click with others’ reality and aspirations! “Walk in the other person’s shoes”—until the soles have holes!) Ears! (Effective listening in every encounter: Strategic Advantage No. 1! Believe it!) Experience! (Life is theater! It’s always showtime! Make every contact a “Wow”! Standard: “Insanely Great”/Steve Jobs; “Radically Thrilling”/BMW.) Eliminate! (Keep it simple!! Furiously battle hyper-complexity and gobbledygook!!) Errorprone! (Ready! Fire! Aim! Try a lot of stuff, make a lot of booboos. CELEBRATE the booboos! Try more stuff, make more booboos! He who makes the most mistakes wins! Fail! Forward! Fast!) Evenhanded! (Straight as an arrow! Fair to a fault! Honest as Abe!) Expectations! (Michelangelo: “The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we hit it.”) Eudaimonia! (The essence of Aristotelian philosophy: True happiness is pursuit of the highest of human moral purpose. Be of service! Always!) EXCELLENCE! (The only standard! Never an exception! Start NOW! No excuses!)

19. Inno16

20. The INNO16: Innovation’s “Sixteen Imperatives” • Try it. (“1/40”: “Whoever tries the most stuff wins.”) • (“R.F.A.”/Ready. Fire. Aim.) • (2)Celebrate failure. • “Whoever makes the most mistakes wins.” • “Fail. Fail again. Fail better.” • “Reward excellent failures. Punish mediocre successes.” • (3)Decentralize. (Organic growth bias.) • (4) Parallel Universe. • 1% “play money” • Internal VC fund • “Skunkworks” • (5) “We are what we eat”: We are who we spend • time with.” • (6) “d”iversity. (Every dimension.) • (7) Co-invent with (all) outsiders. (Exploit electronic • communities.)

21. The INNO16: Innovation’s “Sixteen Imperatives” (Cont.) (8)“Strategic” Listening = Core competence. (9) Hire and promote 100% innovators. Innovator’s characteristic = Angry. CEO=Innovation “bias.” (“You must be …”/Gandhi) (10) XFX/Cross-functional Excellence!! (#1?) (11) Chief Complexity/Systems Destruction Officer. (12) R&D Equality. All functions equal. (VA centerpiece./All staff VA-meisters.) (13)Top quartile R&D spending(So, too, our partners.) (14) All projects (Must have something new.) (“WOW standard.”) (15) Fun! (Enjoy breaking the rules.) (16) All businesses!!

22. Jack Welch.+

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

24. “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

25. “Don’t ever use that word ‘synergy.’ It’s 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 Won’t Get You There)

26. “If it ain’t broke, break it.”—Steve Bechtel (??) “Only the paranoid survive.”—Andy Grove

27. kindness.

28. K = R = PKindness = Repeat business = Profit.

29. K = R = P/Kindness = Repeat business = Profit/Kindness: Kind. Thoughtful. Decent. Caring. Attentive. Engaged. Listens well/obsessively. Appreciative. Open. Visible. Honest. Responsive. On time all the time. Apologizes with dispatch for screwups. “Over”-reacts to screwups of any magnitude. “Professional” in all dealings. Optimistic. Understand that kindness to staff breeds kindness to others/outsiders. Applies throughout the “supply chain.” Applies to 100% of customer’s staff. Explicit part of values statement. Basis for evaluation of 100% of our staff.

30. “One kind word can warm three winter months.”– Japanese Proverb

31. “The deepest principle of human nature is the craving to be appreciated.”—William James (in Timeless Wisdom, compiled by Gary Fenchuk)

32. Equations/Expanded: X = S = P eXcellence = Satisfied customers = Profit X + K = R = P+ eXcellence + Kindness = Repeat business = Profit+ X + K + W = R + N = P++ eXcellence + Kindness + Wow = Repeat business + New business = Profits++

33. Helen Keller.Mother Teresa.

34. “I long to accomplish a great and noble task, but it is my chief duty to accomplish humble tasks as though they were great and noble.”—Helen Keller

35. “We do no great things, only small things with great love.”—Mother Teresa

36. Epigraphs. The little big things.

37. “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)

38. “We don’t take people to the elevator—we take them down to the street.—David Ogilvy

39. mandela.

40. “In the election in 1994, his smile was the campaign. That smiling iconic campaign poster—on 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, c’est tout pardoner’—to understand is to forgive all. It was political Prozac for a nervous electorate.” From “See the Good in Others,” Mandela’s Way: Fifteen Lessons on Life, Love, and Courage, by Richard Stengel

41. “Ultimately the smile was symbolic of how Mandela molded himself. At every stage of his life he decided who he wanted to be and created the appearance—and then the reality—of that person. He became who he wanted to be.” From “See the Good in Others,” Mandela’s Way: Fifteen Lessons on Life, Love, and Courage, by Richard Stengel

42. “Some call it a blind spot, others naïveté, but Mandela sees almost everyone as virtuous until proven otherwise. He starts with an assumption you are dealing with him in good faith. He believes that, just as pretending to be brave can lead to acts of real bravery, seeing the good in other people improves the chances that they will reveal their better selves.” From “See the Good in Others,” Mandela’s Way: Fifteen Lessons on Life, Love, and Courage, by Richard Stengel

43. “Mandela sees the good in others both because it is in his nature and in his interest. At times that has meant being blindsided, but he has always been willing to take that risk. And it is a risk. … Mandela goes out on a limb and makes himself vulnerable by trusting others. … We rarely equate risk with trying to see what is decent, honest, and good in the people in our daily lives. ... ‘People will feel I see too much good in people, and I’ve tried to adjust because whether it is so or not, it is something I think is profitable. It’s a good thing to assume, to act on the basis that others are men of integrity and honor, because you need to attract integrity and honor. I believe in that.’” From “See the Good in Others,” Mandela’s Way: Fifteen Lessons on Life, Love, and Courage, by Richard Stengel

44. “Mandela … consciously chose to err on the side of generosity. By behaving honorably, even to people who may not deserve it, he believes you can influence them to behave more honorably than they otherwise would. This sometimes proved to be a useful tactic, particularly after he was released from prison, when his open, trusting attitude made him appear to be a man who could rise above bitterness. When he urged South Africans to ‘forget the past,’ most of them believed that he had. This had a double effect: It made whites trust Mandela more and it made them feel more generous toward the people they had so recently oppressed.” From “See the Good in Others,” Mandela’s Way: Fifteen Lessons on Life, Love, and Courage, by Richard Stengel

45. Women.Power.New World Order.

46. “We Did It!”–Economist cover, Jan 02.2010, as women surpass 50% in U.S. workforce/ “Women’s economic empowerment is arguably the biggest social change of our times.”

47. “All signs point to a new era of women in charge—socially, economically and politically.” —Alex Beam, “Women Rule,” International Herald/Jan 15 “A Tradition Falls and Women Rise: A Changing Germany Seeks to Blend Family, Careers and Schooling”—p.1, International Herald /Jan 18

48. W > 2X (C + I)* *“Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could climb as high as $28 trillion in the next five years. Their $13 trillion in total yearly earnings could reach $18 trillion in the same period. In aggregate, women represent a growth market bigger than China and India combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer. And yet many companies do just that—even ones that are confidant that they have a winning strategy when it comes to women. Consider Dell’s …” —Michael Silverstein and Kate Sayre, “The Female Economy,” HBR, 09.09

49. “What do growth, expansion and prosperity have in common? In French grammar they are feminine and when it comes to facts and figures they are feminine as well. Forget China, India and even new technologies – for the past 10 years the number one vector for global growth has been women.” Source: “Women Are Drivers of Global Growth,” Aude Zieseniss de Thuin, founder and president of the Women’s Forum for the Economy and Society (FT)

50. “Since 1970, women have held two out of three new jobs. According to The Economist, which compiled studies from a number of research firms, the arrival of this new workforce has done more to encourage global growth than increases in capital investment and improvements in productivity. ‘Over the last 10 years the increase in women [in the workplace] in developed countries has made more of a contribution to global growth than China has,’ concludes the British weekly.” Source: “Women Are Drivers of Global Growth,” Aude Zieseniss de Thuin, founder and president of the Women’s Forum for the Economy and Society (FT)