1
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
2
LONG Excellence. Always. Gartner Group/PPM
IT Governance Summit Tom Peters/San Diego/22
June 2011
3
NOTE To appreciate this presentation and
ensure that it is not a mess, you need Microsoft
fonts Showcard Gothic, Ravie, Chiller
and Verdana
4
What Works.What Doesnt.
5
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
6
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
7
Mr. Foster and his McKinsey colleagues collected
detailed performance data stretching back 40
years for 1,000 U.S. companies. They found that
none of the long-term survivors managed to
outperform the market. Worse, the longer
companies had been in the database, the worse
they did. Financial Times
8
Dick Kovacevich You dont get better by being
bigger. You get worse.
9
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
10
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
11
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
12
M A success rate as measured by adding value
to the acquirer 15 Source Mark Sirower, The
Synergy Trap
13
Spinoffs systematically perform better than
IPOs track record, profits freed from the
confines of the parent more entrepreneurial,
more nimble. Jerry Knight/ Washington Post/
14
4 Japan3 USA2 China1 Germany
15

• MittELstand

16
agile creatures darting between the
legs of the multinational monsters" Source
Bloomberg BusinessWeek on the German MITTELSTAND
17
Seymour CTFairfield OHFrankenmuth MI
18
Basement Systems Inc.
19
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
20
Be the best. Its the only market thats not
crowded. From Retail Superstars Inside the 25
Best Independent Stores in America, George Whalin
21
What Works.What Doesnt.
22
No.Optimization Weve got to get this
right. Perfectly compatibleSynergyBig
23
Dick Kovacevich You dont get better by being
bigger. You get worse.
24
It is generally much easier to kill an
organization than change it substantially.
Kevin Kelly, Out of Control
25
The secret of fast progress is inefficiency,
fast and furious and numerous failures.Kevin
Kelly
26
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 guruRobert Noyce was an
Intel co-founder and one of the fathers of the
modern information industry.Source Fast Company
27
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
28
Dont ever use that word synergy. Its a
hideous word. 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
29
Yes. SatisficeRequisite
varietyRadical decentralizationResilience
Focus/Niche/Mittelstand
30
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
31
What Matters.What Doesnt.
32
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
33
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)
34
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)
35
Joe J. Jones 1942 2010 Net
Worth21,543,672.48
36
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
37
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
respected as admirable people, the agency gets
businesswhether from present clients or
prospective ones. David Ogilvy
38
Organizations exist to serve. Period. Leaders
live to serve. Period.
39
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
40
Breakthrough 82 People! Customers! Action!
Values! In Search of Excellence
41
Hard Is SoftSoft Is Hard
42
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
43
Hard Is Soft (Plans, s)Soft Is Hard (people,
customers, values, relationships)
44
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
45
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
46
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
47
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.
48
1 Design Is Everything.
49
Design is everything. Everything is
design. We are all designers. The Power of
Design A Force for Transforming Everything,
Richard Farson
50
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.
51
I assume that it is just saying that it is there
to
52
I assume that it is just saying that it is there
to help its customers wherever they are.
Charles Handy
53
I make all the launch teams tell me what the
magazines about in five words or less. You
cant run alongside millions of consumers and
explain what you mean. It forces some discipline
on you. Ann Moore, CEO, Time Inc., on new
magazines
54
"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)
55
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)
56
Dr. Peter Pronovost, Johns HopkinsChecklist/d
ealing with line infections1/3rd lines,
at least one procedural error when he started
checklist programNurses/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)
57
Docs, nurses empowered/ encouraged to make
own checklists on whatever
process-procedure they chooseWithin weeks,
average stay in ICU down 50Source Atul
Gawande, The Checklist (New Yorker, 1210.07)
58
Appropriate systems standards Beauty. Grace.
Clarity. Simplicity.
59
You know a design is good when you want to lick
it. Steve Jobs Source Design Intelligence
Made Visible, Stephen Bayley Terence Conran
60
Architect Rem Koolhaas on his drive for
clarity-simplicity Often my job is to undo
things.Source New Yorker
61
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
62
2 Whats ALWAYS 1.
63
XFX 1 Cross-Functional eXcellence
64
Never waste a lunch!
65
The sacred 220 ABs. At bats
66
Personal relationships are the fertile soil
from which all advancement, all success, all
achievement in real life grow. Ben Stein
67
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
68
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.
69
R.O.I.R. gtR.O.I.
70
Return On Investment In Relationships
71
What PRECISELY is this weeks Relationship
Investment Plan?
72
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)
73
XFX Social Accelerators. 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.
74
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.
75
XFX Social Accelerators. 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.

76
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.)
77
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
78
fYI
79
Womens Negotiating
StrengthsAbility to put themselves in their
counterparties shoesComprehensive, attentive
and detailed communication styleEmpathy that
facilitates trust-buildingCurious and attentive
listeningLess competitive attitudeStrong
sense of fairness and ability to
persuadeProactive risk managerCollaborative
decision-makingSource Horacio Falcao, cover
story, World Business, Say It Like a Woman Why
the 21st-century negotiator will need the female
touch
80
Loser Hes such a suck-up!Winner
Hes such a suck-down.
81
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.
82
I got to know his secretaries.
83
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)
84
Suck down for success!
85
S ƒ(DR -2L, -3L, -4L, IE) Success is a
function of Number and depth of relationships 2,
3, and 4 levels down inside and outside the
organization S ƒ(SDgtSU) Sucking down is more
important than sucking upthe idea is to have the
your entire organization working for you. S
ƒ(non-FF, non-FL) Number of friends not in my
function S ƒ(XFL/m) Number of lunches with
colleagues in other functions per month S
ƒ(FF) Number of friends in the finance
organization
86
75 of effective project management is political
mastery! Believe it!
87
SIP A ll success is a Matter of
implementation. All implementation is a matter
of politics.
88
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
89
Promote into functional leadership positions
based primarily on temperament.
90
Allied commands depend on mutual confidence and
this confidence is gained, above all through
the development of friendships. 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.
91
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
92
3 Whats ALWAYS 1.
93
Conrad Hilton
94
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
95
remember to tuck the shower curtain inside the
bathtub.
96
You get em in the door with location, location,
location. You keep em coming back with the
tucked-in shower curtain. Profit rarely comes
from transaction 1 it is a byproduct of
transaction 2, 3, 4
97
Execution is strategy. Fred Malek
98
In real life, strategy is actually very
straightforward. Pick a general direction and
implement like hell. Jack Welch
99
almost inhuman disinterestedness in strategy
Josiah Bunting on U.S. Grant (from Ulysses S.
Grant)
100
Costco figured out the big, simple things and
executed with total fanaticism. Charles
Munger, Berkshire Hathaway
101
Execution is the job of the business
leader.Larry Bossidy Ram Charan/ Execution
The Discipline of Getting Things Done
102
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 played or does she keep
wandering back to strategy or philosophy?
Larry Bossidy, Execution
103
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
104
Execution is a systematic process of
rigorously discussing hows and whats,
tenaciously following through, and ensuring
accountability. Larry Bossidy Ram Charan/
Execution The Discipline of Getting Things Done
105
Realism is the heart of execution. Larry
Bossidy Ram Charan/Execution The Discipline
of Getting Things Done
106
Does/will the next presentation you
give/review allot more time to the
process/details of implementing than to the
analysis of problem/opportunity
107
Sports You beat yourself!
108
4 Whats ALWAYS 1.
109
The doctor interrupts after Source
Jerome Groopman, How Doctors Think
110
18
111
18 seconds!
112
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 for
Community. Listening is ... the bedrock of Joint
Ventures that work. Listening is ... the bedrock
of Joint Ventures that grow. Listening is ... the
core of effective Cross-functional
Communication (Which is in turn
Attribute 1 of
organizational effectiveness.) cont.
113
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
114
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.
115
Is there a full-bore training course in
"Listening" for 100 of employees, CEO to temps?
If not, There damn well ought to be.
116
"When I was in medical school, I spent hundreds
of hours looking into a microscopea skill I
never needed to know or ever use. Yet I 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  
117
5 MBWA.
118
25
119
MBWAManaging By Wandering Around/HP
120
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
121
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
122
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.
123
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)
124
Dov Frohman The 50 Rule Dov Frohman
Daydream!
125
You Your calendarThe calendar never lies.
126
Your calendar knows Precisely what youreally
care about. Do you????
127
Dennis, you need a To-dont List !
128
Dont gt Do Donting must be systematic gt
WILLPOWER
129
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
130
Its always showtime. David DAlessandro,
Career Warfare
131
It is necessary for the President to be the
nations No. 1 actor.FDR
132
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
133
You must be the change you wish to see in the
world.Gandhi
134
I am a dispenser of enthusiasm. Ben Zander
135
Nothing is so contagious as enthusiasm.
Samuel Taylor Coleridge
136
Make it fun to work at your agency. Encourage
exuberance. Get rid of sad dogs who spread doom.
David Ogilvy
137
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
138
Sadly, passion is not a word often heard in
the elephant organizations, nor in schools, where
it can seem disruptive. Charles Handy,
Alchemists
139
Ronald Reagan radiated an almost transcendent
happiness. Lou Cannon, Reagan biographer
140
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)
141
I never, ever thought of myself as a
businessman. I was interested in creating things
I would be proud of. Richard Branson
142
Youve got to be able to see the beauty in a
hamburger bun. Ray Kroc
143
Storytelling is the core of culture.
Branded Nation The Marketing of Megachurch,
College Inc., and Museumworld, James Twitchell
144
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
145
Being aware of yourself and how you affect
everyone around you is what distinguishes a
superior leader. Edie Seashore (Strategy
Business 45)
146
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
147
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
148
"Everyone thinks of changing the world, but no
one thinks of changing himself" - Leo Tolstoy
149
"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
150
6 Im NOTKidding.
151
Bitch all you want, but meetings are what you
boss do!
152
Meetings 1 leadership opportunity
153
Meetings are 1 thing bosses do. Therefore, 100
of those meetings EXCELLENCE. ENTHUSIASM. TEMPO.
WORK-OF-ART. DAMN IT.
154
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.
155
Meeting Theater of inquiry and persuasion and
motivation and engagement and enhanced teamwork
156
FYI This is not a rant about conducting
better meetings.
157
7 K R P
158
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)
159
"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
160
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 easily
prevailed with others to give up their mistakes
and join with me when I happened to be in the
right. Benjamin Franklin
161
Press Ganey Assoc 139,380 former patients from
225 hospitalsnone of THE top 15 factors
determining Patient Satisfaction referred to
patients health outcome.Instead directly
related to Staff Interaction directly correlated
with Employee Satisfaction Source Putting
Patients First, Susan Frampton, Laura Gilpin,
Patrick Charmel
162
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 interactionsalienatin
g 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)
163
K R P
164
Kindness Repeat Business Profit.
165
"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
166
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.
167
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
36,000 and there were far fewer per patient
claims to begin with.) Source John Kador,
Effective Apology
168
Relationships (of all varieties) THERE ONCE WAS
A TIME WHEN A THREE-MINUTE PHONE CALL WOULD HAVE
AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT
RESULTED IN A COMPLETE RUPTURE. divorce, loss
of a BILLION aircraft sale, etc., etc.

169
THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE
RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING
THE REAL PROBLEM. PERCEPTION IS ALL THERE IS!

170
Comeback big, quick response gtgt Perfection
171
Edward VII B. Franklin Or Not gen Clinton-gen
Cornwallis-Yorktown
172
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
173
If I could have chosen not to tackle the IBM
culture head-on, I probably wouldnt have. My
bias coming in was toward strategy, analysis and
measurement. In comparison, changing the attitude
and behaviors of hundreds of thousands of people
is very, very hard. Yet I came to see in my
time at IBM that culture isnt just one aspect of
the game it is the game. Lou Gerstner, Who
Says Elephants Cant Dance
174
Read this Influence Science and Practice
Robert Cialdini
175
8 We Are What We Eat
176
You will become like the five people you
associate with the mostthis can be either a
blessing or a curse. Billy Cox
177
The Hang Out Axiom I We are What We Eat/We Are
the company we keep
178
Measure/Manage Portfolio Strangeness/QualityS
taffConsultantsVendorsOut-sourcing Partners
(, Quality, Diversity)Innovation Alliance
PartnersCustomersCompetitors (who we
benchmark against) Strategic Initiatives
Product Portfolio (Line extension v. Leap)IS/IT
ProjectsHQ LocationLunch MatesLanguageBoardEt
c.
179
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 or No
180
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
181
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
182
Dont benchmark, futuremark! Impetus The
future is already here its just not evenly
distributed William Gibson
183
Companies have defined so much best practice
that they are now more or less identical.
Jesper Kunde, Unique Now ... or Never
184
While everything may be better, it is also
increasingly the same.Paul Goldberger, The
Sameness of Things, New York Times
185
The short road to ruin is to emulate the
methods of your adversary. Winston Churchill
186
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
187
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. Diversity trumped
ability. Scott Page, The Difference How the
Power of Diversity Creates Better Groups, Firms,
Schools, and Societies
188
Diversity per se is a key maybe the key
to effective and innovative decision making.
189
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190
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
191
Whos the most interesting person youve met in
the last 90 days? How do I get in touch with
them? Fred Smith
192
Once a month on, say, a Friday, invite somebody
intriguing, in any field, to have lunch with
your gang. Call it Freak Fridays
193
Vanity Fair What is your most marked
characteristic? Mike Bloomberg Curiosity.
194
ForgetgtLearnThe problem is never how to get
new, innovative thoughts into your mind, but how
to get the old ones out. Dee Hock
195
9 WTTMSW
196
READY.FIRE!AIM.H. Ross Perot (vs Aim! Aim!
Aim! /EDS vs GM/1985)
197
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
198
1/45
199
Lesson45 WTTMSW
200
Whoever Tries The Most Stuff Wins
201
We made mistakes, of course. Most of them were
omissions we didnt think of when we initially
wrote the software. We fixed them by doing it
over and over, again and again. We do the same
today. While our competitors are still sucking
their thumbs trying to make the design perfect,
were already on prototype version 5. By the
time our rivals are ready with wires and screws,
we are on version 10. It gets back to planning
versus acting We act from day one others plan
how to planfor months. Bloomberg by
Bloomberg
202
Culture of PrototypingEffective prototyping
may be the most valuable core competence an
innovative organization can hope to have.
Michael Schrage

203
Think about It!?Innovation Reaction to the
PrototypeSource Michael Schrage
204
Experiment fearlesslySource BusinessWeek,
Type A Organization Strategies How to Hit a
Moving TargetTactic 1
205
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)
206
Demo or die! Source This was the approach
championed by Nicholas Negroponte which vaulted
his MIT Media Lab 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)
207
Demos! Heroes! Stories!
208
the 1 solutionInnovation grants,
etc.Source Scott Bedbury
209
Venture fund Gerstner/Amex, Dow/Marriott,
Grove/Intel, DuPont/AI, Bedbury/ Starbucks, etc.
210
Read ItRichard Farson Ralph Keyes Whoever
Makes the Most Mistakes Wins The Paradox of
Innovation
211
Fail. Forward. Fast.High Tech CEO,
Pennsylvania
212
Fail faster. Succeed Sooner.David
Kelley/IDEO
213
Reward excellent failures. Punish mediocre
successes.Phil Daniels, Sydney exec
214
"Barn's burnt down now I can see the moon."
Masahide, Japanese poet
215
The Ultimate Try it Strategy The case for
decentralization
216
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
217
The True Logic of Decentralization6 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 winDriver Law of
Large s
218
Decentralization vs Centralization Thats All
There Is (from childrearing 101 to the
Federalist Papers to Org.2011)
219
Innovation Enemy 1I.C.D.Note 1
Inherent/Inevitable/Immutable Centralist
DriftNote 2 Jim Burkes 1-word vocabulary No.
220
Best practice ZERO Standard Deviation
221
10 Whats ALWAYS 1.
222
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 picketing AAs
Annual Meeting)
223
"If you want staff to give great service, give
great service to staff." Ari Weinzweig,
Zingerman's
224
I put this first
225
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
226
EMPLOYEES FIRST, CUSTOMERS SECOND Turning
Conventional Management Upside Down Vineet
Nayar/CEO/HCL Technologies
227
Business has to give people enriching, rewarding
lives or it's simply not worth doing.
Richard Branson
228
Brand Talent.
229
Our MissionTo develop and manage talentto
apply that talent,throughout the world, for the
benefit of clientsto do so in partnership to
do so with profit.WPP
230
no less than Cathedrals in which the full and
awesome power of the Imagination and Spirit and
native Entrepreneurial flair of diverse
individuals is unleashed in passionate pursuit of
Excellence.
231
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.
232
The leaders of Great Groups love talent
and know where to find it. They revel in the
talent of others. Warren Bennis Patricia
Ward Biederman, Organizing Genius
233
PARCs Bob Taylor Connoisseur of Talent
234
2/year legacy.
235
Promotion Decisionslife and death
decisionsSource Peter Drucker, The Practice
of Management
236
Les Wexner From sweaters to people!
237
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
238
Evaluating people 1 differentiatorSource
Jack Welch/Jeff Immelt on GEs 1 strategic skill
(!!!!)
239
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
240
What do managers do for a living? Help! Right? Ho
w 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 is your neurosurgery!)
241
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242
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
243
Why Not?
244
There is more than one way to skin a
cat! Every project REQUIRES (if youre smart)
an outside look by one/some Seriously Weird
Cat/s in pursuit of whacked-out options.
245
14,00020,00030
246
14,000/eBay20,000/Amazon30/Craigslist
247
In Any Event ..
248
Excellence. Always. If not Excellence,
what?If not Excellence now, when?