Leadership Lessons & Technological Revolution: Race Against the Machine

1. 1,000,000

2. 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 …

3. “Remember to tuck the shower curtain inside the bathtub.”

4. “Execution isstrategy.”—Fred Malek

5. LONG Tom Peters’ Re-ImagineEXCELLENCE! PULPIT // 2013 Stavanger Konserthus/25 September 2013 (Slides at tompeters.com and excellencenow.com)

6. Context

7. 1,000,000

8. China too/Foxconn: 1,000,000 robots in next 3 years Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfee

9. Post-Great Recession: Equipment expenditures +26%; payrolls flat/ “Great Recession … lack of hiring rather than increase in layoffs”/“… breakage of the historic link between value creation and job creation” The “U-shaped Curve” Phenomenon: High-skilled Waaaaay Up!!! Low-skilled: Stable/Up Middle: Down/Down/Down Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfee

10. “The root of our problem is not that we’re in a Great Recession or a Great Stagnation, but rather that we are in the early throes of a Great Restructuring. Our technologies are racing ahead, but our skills and organizations are lagging behind.” Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfee

11. “The median worker is losing the race against the machine.”—Erik Brynjolfsson and Andrew McAfee, Race Against the Machine

12. Legal industry/Pattern Recognition/ Discovery (e-discovery algorithms): 500 lawyers to … ONE Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfee

13. +400,000-2,000,000

14. “Algorithms have already written symphonies as moving as those composed by Beethoven, picked through legalese with the deftness of a senior law partner, diagnosed patients with more accuracy than a doctor, written news articles with the smooth hand of a seasonedreporter, and driven vehicles on urban highways with far better control than a human driver.” —Christopher Steiner,Automate This: How Algorithms Came to Rule the World

15. “Human level capability has not turned out to be a special stopping point from an engineering perspective. ….” Source: Illah Reza Nourbakhsh, Professor of Robotics, Carnegie Mellon, Robot Futures

16. GeneticsRoboticsInformaticsNanotechnology

17. Disruptive Technologies: Advances That Will Transform • Life, Business and the Global Economy • Mobile Internet • Automation of knowledge work • The Internet of Things • Cloud technology • Advanced robotics • Autonomous and near-autonomous vehicles • Next-generation genomics • Energy storage • 3D printing • Advanced materials • Advanced oil and gas recovery • Renewable energy • Source: McKinsey Global Institute/May 2013

18. Excellence!

19. “Why in the World did you go to Siberia?”

20. Enterprise* (*at its best):An emotional, vital, innovative, joyful, creative, entrepreneurial endeavor that elicits maximum concerted human potential in the wholehearted pursuit of EXCELLENCE in service of others.****Employees, Customers, Suppliers, Communities, Owners, Temporary partners

21. 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”

22. “Breakthrough” 82* People! Customers! Action! Values! *In Search of Excellence

23. A Culture of Excellence

24. Hard is Soft. Soft is Hard.

25. Hard [numbers, plans]is Soft. Soft [people/relationships]is Hard.

26. WSJ/0910.13: “What matters most to a company over time? Strategy or culture? Dominic Barton, MD, Mc Kinsey & Co.:“Culture.”

27. “If I could have chosen not to tackle the IBM culture head-on, I probably wouldn’t 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 isn’t just one aspect of the game—IT IS THE GAME.”—Lou Gerstner, Who Says Elephants Can’t Dance

28. Systems Have Their Place SECOND Place Case #1/United States Air Force Tactical Air Command/ GEN Bill Creech/“Drive bys” Case #2/Milliken & Company/CEO Roger Milliken/the 45-minute grilling Case #3/Johns Hopkins/Dr. Peter Pronovost/The (real) roots of checklist power Case #4/Commerce Bank/CEO Vernon Hill/The RED button commitment Case #5/Veterans Administration/Abrogating the “culture of hiding” Case #6/Mayo Clinic/Dr. William Mayo/Teamwork makes me “100 times better” Case #7/IBM/CEO Lou Gerstner flummoxed by ingrained beliefs Case #8/Germany’s Mittelstand/excellence-in-the-genes Case #9/Department of Defense/DASD Bob Stone/tracking down the extant ”Model Installation” superstars Case #10/Matthew Kelly/Housekeepers’ dreams Case #11/Toyota/Growth or bust

29. People First! People Second! Peopleeeeee Third! People Fourth! People Fifth! People Sixth! People Sixth!

30. 1/4,096: excellencenow.com “Business has to give people enriching, rewarding lives … or it's simply not worth doing.” —Richard Branson

31. A 15-Point Human Capital Development Manifesto • “Corporate social responsibility” starts at home—i.e., inside the enterprise! MAXIMIZING GDD/Gross Domestic Development of the workforce is the primary source of mid-term and beyond growth and profitability—and maximizes national productivity and wealth. • Regardless of the transient external situation, development of “human capital” is always the #1 priority. This is true in general, in particular in difficult times which demand resilience—and uniquely true in this age in which IMAGINATIVE brainwork is de facto the only plausible survival strategy for higher wage nations. (Generic “brainwork,” traditional and dominant “white-collar activities, is increasingly beingperformed by exponentially enhanced artificial intelligence.) • Source: A 15-Point Human Capital Asset Development Manifesto/ • World Strategy Forum/The New Rules: Reframing Capitalism/Seoul/0615.12

32. 1/4,096: excellencenow.com “Business has to give people enriching, rewarding lives … or it's simply not worth doing.” —Richard Branson

33. “You have to treat your employees like customers.”—Herb Kelleher, upon being asked his “secret to success”Source: Joe Nocera, NYT, “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s 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 picketingAA’s Annual Meeting)

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

35. Brand = Talent.

36. B(I) > B(O)

37. 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

38. … 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.

39. 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.

40. 7 Steps to Sustaining Success & Excellence You take care of the people. The people take care of the service. The service takes care of the customer. The customer takes care of the profit. The profit takes care of the re-investment. The re-investment takes care of the re-invention. The re-invention takes care of the future. (And at every step the only measure is EXCELLENCE.)

41. 7 Steps to Sustaining Success You take care of the people. The people take care of the service. The service takes care of the customer. The customer takes care of the profit. The profit takes care of the re-investment. The re-investment takes care of the re-invention. The re-invention takes care of the future. (And at every step the only measure is EXCELLENCE.)

42. 2/year.

43. Promotion Decisions“life and death decisions”Source: Peter Drucker, The Practice of Management

44. 2/year = legacy.

45. “A man should never be promoted to a managerial position if his vision focuses on people’s weaknessesrather than on their strengths.”—Peter Drucker,The Practice of Management

46. 70 Cents.

47. “Development can help great people be even better—but if I had a dollar to spend, I’d spend 70 cents getting the right person in the door.”—Paul Russell, Director, Leadership and Development, Google

48. “In short, hiring is the most important aspect of business and yet remainswoefully misunderstood.” Source: Wall Street Journal, 10.29.08, review of Who: The A Method for Hiring, Geoff Smart and Randy Street

49. “C-level”?!

50. In the Army, 3-star generals worry about training. In most businesses, it's a “ho hum” mid-level staff function.