The Challenge: To Create More Value in All Negotiations

1
LONG Tom Peters RE-IMAGINE EXCELLENCE. INNO
VATE. NOW. OR PERISH. 2014 PAI Market Partner
Conference 05 December/Punta Cana (slides at
tompeters.com also see excellencenow.com)
2
Meet Your Next Surgeon Dr. Robot
3
Meet Your Next Surgeon Dr. Robot Source
Feature/Fortune/15 JAN 2013/on Intuitive
Surgicals da Vinci /multiple bypass
heart-surgery robot (Almost all health care
people get is going to be done by algorithms
within a decade or two. Michael
Vassar/MetaMed)
4
The combination of new market rules and new
technology was turning the stock market into, in
effect, a war of robots. Michael Lewis,
Goldmans Geek Tragedy, Vanity Fair, 09.13
5
Steve, youre costing me a hundred nanoseconds.
1B/Millisecond Can you at least cross it
diagonally? Source Michael Lewis, Flash Boys
6
Lets Welcome Our Newest Board Member Just
like other members of the board, the algorithm
gets to vote on whether the firm makes an
investment in a specific company or not. The
program will be the sixth member of DKV's board.
Business Insider, 13 May 2014 A Hong Kong VC
fund has just appointed an algorithm to its
board.
7
Automation has become so sophisticated that on
a typical passenger flight, a human pilot holds
the controls for a grand total of 3 minutes.
Pilots have become, its not much of an
exaggeration to say, computer operators c.f.,
AF447. Nicholas Carr, the Atlantic, 11.13
8
The next frontier is a wireless technology
called v2x, which companies in America, Europe
and Japan are developing. It encapsulates
vehicle-to-vehicle and vehicle-to-infrastructure
communications. Special modems allow v2x-equipped
cars to talk to each other and to the world
around them. Mary Barra, CEO, GM, in the
Economist, The World in 2015, December 2014
9
SENSOR PILLS Proteus Digital Health is one of
several pioneers in sensor-based health
technology. They make a silicon chip the size of
a grain of sand that is embedded into a safely
digested pill that is swallowed. When the chip
mixes with stomach acids, the processor is
powered by the bodys electricity and transmits
data to a patch worn on the skin. That patch, in
turn, transmits data via Bluetooth to a mobile
app, which then transmits the data to a central
database where a health technician can verify if
a patient has taken her or his medications.
This is a bigger deal than it may seem. In
2012, it was estimated that people not taking
their prescribed medications cost 258 billion in
emergency room visits, hospitalization, and
doctor visits. An average of 130,000 Americans
die each year because they dont follow their
prescription regimens closely enough.. (The FDA
approved placebo testing in April 2012 sensor
pills are ticketed to come to market in 2015 or
2016.) Source Robert Scoble and Shel Israel,
Age of Context Mobile, Sensors, Data and the
Future of Privacy
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IoT/The Internet of Things IoE/The Internet of
Everything M2M/Machine-to-Machine Ubiquitous
computing Embedded computing Pervasive
computing Industrial Internet Etc.
More Than 50 BILLION connected devices by
2020 Ericsson Estimated 212 BILLION connected
devices by 2020IDC By 2025 IoT could be
applicable to 82 TRILLION of output or
approximately one half the global economyGE
(The WAGs to end all WAGs!)
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China/Foxconn 1,000,000 robots/next 3
years Source Race AGAINST the Machine, Erik
Brynjolfsson and Andrew McAfee
12
Since 1996, manufacturing employment in China
itself has actually fallen by an estimated 25
percent. Thats over 30 million fewer Chinese
workers in that sector, even while output soared
by 70 percent. Its not that American workers
are being replaced by Chinese workers. Its that
both American and Chinese workers are being made
more efficient by automation. Erik
Brynjolfsson and Andrew McAfee, The Second
Machine Age Work, Progress, and Prosperity in a
time of Brilliant Technologies
13
Ten Million Jobs at Risk from Advancing
Technology Up to 35 percent of Britain's jobs
will be eliminated by new computing and robotics
technology over the next 20 years, say experts
Deloitte/Oxford University. Headline,Telegraph
(UK), 11 November 2014 I believe that 90
percent of white-collar/knowledge-work
jobswhich are 80 percent of all jobsin the
U.S. will be either destroyed or altered beyond
recognition in the next 10 to 15 years. Tom
Peters, Cover,Time, 22 May 2000 The machine
plays no favorites between manual and white
collar labor. Norbert Wiener, 1958
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Software is eating the world. Marc Andreessen
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
The root of our problem is NOT that were 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
17
I would rather engage in a Twitter
conversation with a single customer than see our
company attempt to attract the attention of
millions in a coveted Super Bowl commercial. Why?
Because having people discuss your brand directly
with you, actually connecting one-to-one, is far
more valuablenot to mention far cheaper!
Consumers want to discuss what they like, the
companies they support, and the organizations and
leaders they resent. They want a community. They
want to be heard. If we engage employees,
customers, and prospective customers in
meaningful dialogue about their lives,
challenges, interests, and concerns, we can build
a community of trust, loyalty, andpossibly over
timehelp them become advocates and champions for
the brand. Peter Aceto, CEO, Tangerine (from
the Foreword to A World Gone Social How
Companies Must Adapt to Survive, by Ted Coine
Mark Babbit)
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Going Social Location and Size
Independent Today, despite the fact that were
just a little swimming pool company in Virginia,
we have the most trafficked swimming pool website
in the world. Five years ago, if youd asked me
and my business partners what we do, the answer
would have been simple, We build in-ground
fiberglass swimming pools. Now we say, We are
the best teachers in the world on the subject
of fiberglass swimming pools, and we also happen
to build them. Jay Baer, Youtility Why
Smart Marketing Is About Help, Not Hype
19
Walmart SV 1,500
20
Tom Peters RE-IMAGINE EXCELLENCE. INNOVATE.
NOW. OR PERISH. 2014 PAI Market Partner
Conference 05 December/Punta Cana (slides at
tompeters.com also see excellencenow.com)
21
Whats really interesting is that over the
next five years were going to see every industry
exposed to reinvention of how people put products
and services together, how work is done, what
kind of jobs and skills are needed, what can be
handled by technology. John Sculley, startup
investor, former Apple CEO
22
-1/1/2
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I am often asked by would-be entrepreneurs
seeking escape from life within huge corporate
structures, How do I build a small firm for
myself? The answer seems obvious Source
Paul Ormerod, Why Most Things Fail Evolution,
Extinction and Economics
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I am often asked by would-be entrepreneurs
seeking escape from life within huge corporate
structures, How do I build a small firm for
myself? The answer seems obvious Buy a very
large one and just wait. Paul Ormerod, Why
Most Things Fail Evolution, Extinction and
Economics
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SP 500 -1/1 Every 2 weeks! Source
Richard Foster (via Rita McGrath/HBR/12.26.13
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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
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Middle-sized Niche- Micro-niche Dominators!
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THE RED CARPET STORE (Joel Resnick/Flemington NJ)
29

• Basement Systems Inc. (Larry Janesky/Seymour
  CT)Dry Basement Science (100,000
  copies!)1990 0 2003 13M 2010
  80,000,000

30
The Magicians of Motueka the Mittelstand
Trifecta W.A. Coppins Ltd. (Coppins Sea
Anchors/ PSA/para sea anchors) Textiles,
1898 thrive on wicked problems e.g., U.S.
Navy STLVAST (Small To Large Vehicle At Sea
Transfer) custom fabric from W. Wiggins
Ltd./Wellington (specialty nylon, Dyneema,
from DSM/Netherlands)
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THE DOCK DOCTORS Custom Products Shoreline
Solutions Every waterfront property is
different, from the topography of the shoreline
to exposure and water depths. Our custom products
are designed and fabricated based on your
specific property and recreational needs. Whether
you are interested in a dock, stair system,
hillside elevator, or boat lift, we will design,
manufacture, and install a custom product to
accommodate your desires for a perfect
waterfront. We offer innovative solutions and
the most diverse waterfront product line on the
East Coast. Whether your project is unusual or
traditional, our years of experience consulting,
designing, and manufacturing commercial projects
for a variety of entities such as municipalities,
marina facilities, hydro plants, engineers, and
land planners. Marinas, piers, stairs, shoreside
platforms, and wetland and pedestrian walkways
piers, are only some of the examples of
commercial projects that we specialize in.
Commercial Division
32
Jims Mowing Canada Jims Mowing UK Jims
Antennas Jims Bookkeeping Jims Building
Maintenance Jims Carpet Cleaning Jims Car
Cleaning Jims Computer Services Jims Dog
Wash Jims Driving School Jims Fencing Jims
Floors Jims Painting Jims Paving Jims Pergolas
gazebos Jims Pool Care Jims Pressure
Cleaning Jims Roofing Jims Security Doors Jims
Trees Jims Window Cleaning Jims
Windscreens Note Download, free, Jim Penmans
book What Will They Franchise Next? The Story
of Jims Group
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Aizen Kobo Indigo Workshop
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Going Social Location and Size
Independent Today, despite the fact that were
just a little swimming pool company in Virginia,
we have the most trafficked swimming pool website
in the world. Five years ago, if youd asked me
and my business partners what we do, the answer
would have been simple, We build in-ground
fiberglass swimming pools. Now we say, We are
the best teachers in the world on the subject
of fiberglass swimming pools, and we also happen
to build them. Jay Baer, Youtility Why
Smart Marketing Is About Help, Not Hype
35
Retail Superstars Inside the 25 Best Independent
Stores in America by George Whalin
36
JUNGLE JIMS INTERNATIONAL MARKET, FAIRFIELD,
OH An adventure in shoppertainment, begins
in the parking lot and goes on to 1,600 cheeses
and 1,400 varieties of hot saucenot to mention
12,000 wines priced from 8-8,000 a bottle
all this is brought to you by 4,000 vendors.
Customers from every corner of the
globe. BRONNERS CHRISTMAS WONDERLAND,
FRANKENMUTH, MI, POP 5,000 98,000-square-foot
shop features 6,000 Christmas ornaments,
50,000 trims, and anything else you can name
pertaining to Christmas.
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BE THE BEST. ITS THE ONLY MARKET THATS NOT
CROWDED. From Retail Superstars Inside the 25
Best Independent Stores in America, George Whalin
38
MITTELSTAND agile creatures darting
between the legs of the multinational monsters
(Bloomberg BusinessWeek, 10.10)
39
Michael Raynor and Mumtaz Ahmed THE THREE
RULES How Exceptional Companies Think 1.
Better before cheaper. 2. Revenue before cost. 3.
There are no other rules. (From a database of
over 25,000 companies from hundreds of industries
covering 45 years, they uncovered 344 companies
that qualified as statistically
exceptional.) Jeff Colvin, Fortune The
Economy Is Scary But Smart Companies Can
Dominate They manage for valuenot for
EPS. They keep developing human capital. They get
radically customer-centric.
40
Commodity is a state of mind. ANYTHING can be
DRAMATICALLY differentiated.
41
Small Giants Companies that Chose to
Be Great Instead of Big (Bo
Burlingham) THEY CULTIVATED EXCEPTIONALLY
INTIMATE RELATIONSHIPS WITH CUSTOMERS AND
SUPPLIERS, based on personal contact, one-on-one
interaction, and mutual commitment to delivering
on promises. EACH COMPANY HAD AN
EXTRAORDINARILY INTIMATE RELATIONSHIP WITH THE
LOCAL CITY, TOWN, OR COUNTY in which it did
businessa relationship that went well beyond the
usual concept of giving back. The companies
had what struck me as UNUSUALLY INTIMATE
WORKPLACES. I noticed the PASSION that the
leaders brought to what the company did. THEY
LOVED THE SUBJECT MATTER, whether it be music,
safety lighting, food, special effects, constant
torque hinges, beer, records storage,
construction, dining, or fashion."
42
Where the 201,000 new private-sector jobs came
from 51 Small firms41 Medium-sized8
BigSource ADP National Employment Report/March
2011E.g., German MITTELSTAND
43
The average age of a startup founder is 40. And
high-growth startups are nearly twice as likely
to be launched by people over 55 as by people
20-34. Vivek Wadhwa, Kauffman foundation
(Time/0325.13)
44
0/800 Innovate or Perish/ Extreme Times
DEMAND Extreme Solutions
45
Normal 0 for 800 There are ZERO
normal people in the history books.
46
INSANELY GREATSTEVE JOBSRADICALLY
THRILLING BMW
47
Astonish me! (Sergei Diaghlev, to a lead
dancer)Build something great! (Hiroshi
Yamauchi, Nintendo, to a senior game designer)
Make it immortal! (David Ogilvy, to a
copywriter).
48
Let us create such a building that future
generations will take us for lunatics. the
church hierarchs at Seville, on a prospective
cathedral
49
You cant behave in a calm, rational manner.
Youve got to be out there on the lunatic
fringe. Jack Welch
50
We are crazy. We should do something when
people say it is crazy. If people say something
is good, it means someone else is already doing
it. Hajime Mitarai, CEO, Canon
51
Kevin Roberts Credo1. Ready.
Fire! Aim.2. If it aint broke ... Break it!3.
Hire crazies.4. Ask dumb questions.5. Pursue
failure.6. Lead, follow ... or get out of the
way!7. Spread confusion.8. Ditch your
office.9. Read odd stuff.10. AVOID MODERATION!
52
!
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EXCELLENCE!
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(No Transcript)
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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
56
Breakthrough 82 People! Customers! Action!
Values! In Search of Excellence
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EXCELLENCE is not a long-term "aspiration.
58
EXCELLENCE is not a long-term "aspiration.
EXCELLENCE is the ultimate short-term strategy.
EXCELLENCE is THE NEXT 5 MINUTES. (Or NOT.)
59
EXCELLENCE is not an "aspiration." EXCELLENCE is
THE NEXT FIVE MINUTES. EXCELLENCE is your next
conversation. Or not. EXCELLENCE is your next
meeting. Or not. EXCELLENCE is shutting up and
listeningreally listening. Or not. EXCELLENCE is
your next customer contact. Or not. EXCELLENCE is
saying Thank you for something small. Or
not. EXCELLENCE is the next time you shoulder
responsibility and apologize. Or not. EXCELLENCE
is waaay over-reacting to a screw-up. Or
not. EXCELLENCE is the flowers you brought to
work today. Or not. EXCELLENCE is lending a hand
to an outsider whos fallen behind schedule. Or
not. EXCELLENCE is bothering to learn the way
folks in finance (or IS or HR) think. Or
not. EXCELLENCE is waaay over-preparing for a
3-minute presentation. Or not. EXCELLENCE is
turning insignificant tasks into models of
EXCELLENCE. Or not.
60
Why in the World did you go to Siberia?
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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
62
It may sound radical, unconventional, and
bordering on being a crazy business idea.
However as ridiculous as it soundsjoy is the
core belief of our workplace. Joy is the reason
my company, Menlo Innovations, a customer
software design and development firm in Ann
Arbor, Michigan, exists. It defines what we do
and how we do it. It is the single shared belief
of our entire team. Richard Sheridan, Joy,
Inc. How We Built a Workplace People Love
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Hard is Soft. Soft is Hard.
64
1/48
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1/48/1966-2014 WTTMSW
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WHOEVER TRIES THE MOST STUFF WINS
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Excellence82 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
68
READY.FIRE!AIM.H. Ross Perot (vs Aim! Aim!
Aim! /EDS vs GM/1985)
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WE HAVE A STRATEGIC PLAN. ITS CALLED DOING
THINGS. Herb KelleherDONT PLAN. DO
STUFF.David Kelley/IDEO
70
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
71
You cant be a serious innovator unless and
until you are ready, willing and able to
seriously play. Serious play is not an
oxymoron it is the essence of innovation.
Michael Schrage, Serious Play
72
Learn not to be careful. Photographer Diane
Arbus to her students (Careful Stay on the
sidelines)
73
EXPERIMENT FEARLESSLYBusinessWeek, Type A
Organization Strategies How to Hit a Moving
TargetTactic 1RELENTLESS TRIAL AND
ERROR Source Wall Street Journal,
cornerstone of effective approach to
rebalancing company portfolios in the face of
changing and uncertain global economic conditions
74
Burt Rutan Scaled Composites wasnt a fighter
pilot he was an engineer who had been asked to
figure out why the U.S. Air Force 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
75
What are Rutans management rules? He insists he
doesnt have any. I dont like rules, he says.
Things are so easy to change if you dont write
them down. Rutan feels good management works in
much the same way good aircraft design does
Instead of trying to figure out the best way to
do something and sticking to it, just try out an
approach and keep fixing it. Eric
Abrahamson David Freedman, Chapter 8, Messy
Leadership, from A Perfect Mess The Hidden
Benefits of Disorder
76
A Rutan principle is that its useful to have
everyone questioning everything the company does
all the time, and especially have people
questioning their own work. Rutan makes sure that
when employees point out their mistakes, theyre
applauded rather than reprimanded. Eric
Abrahamson David Freedman, Chapter 8, Messy
Leadership, A Perfect Mess The Hidden Benefits
of Disorder
77
Bert Rutans No Rules RulesGet
going, now fix it after youve gotten
started.Forget best, forget rulesjust run
like mad and adjust fast.People with passion
and breadthgiven freedom from Day 1 to try
any-damn- thing. (Specialism secondary.)Everyo
ne questions everything (and everyone) all the
time. Applaud mistakesAND the person who
made them.
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FAIL. FORWARD. FAST.
79
FAIL. FORWARD. FAST.High Tech CEO,
Pennsylvania FAIL FASTER. SUCCEED SOONER.
David Kelley/IDEOMOVE FAST. BREAK THINGS.
Facebook
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Success, Honda said, can only be achieved
through repeated failure and introspection.
Success represents one percent of your work,
which results only from the ninety-nine percent
that is called failure. Jeffrey Rothfeder,
Driving Honda Inside the Worlds Most
Innovative Car Company
81
REWARD excellent failures. PUNISH mediocre
successes.Phil Daniels, Sydney exec
82
In business, you REWARD people for taking RISKS.
WHEN IT DOESNT WORK OUT YOU PROMOTE THEM
-BECAUSE THEY WERE WILLING TO TRY NEW THINGS. If
people tell me they skied all day and never fell
down, I tell them to try a different mountain.
Michael Bloomberg
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Ideas Economy CAN YOUR BUSINESS FAIL FAST
ENOUGH TO SUCCEED? Source ad for Economist
Conference/0328.13/Berkeley CA (caps are
Economist)
84
THE ESSENCE OF CAPITALISM IS ENCOURAGING
FAILURE, NOT REWARDING SUCCESS. Nassim Nicholas
Taleb/Antifragile
85
It is not enough to tolerate failureyou must
CELEBRATE failure. Richard Farson (Whoever
Makes the Most Mistakes Wins)
86
I am a dispenser of enthusiasm. Ben Zander,
symphony conductor and management guru
87
I What really matters is that companies that
dont continue to experimentcompanies that dont
embrace failure they eventually get in a
desperate position, where the only thing they can
do is make a Hail Mary bet at the end. Jeff
Bezos at Business Insider Ignition conference,
1202.14
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WTTMSASTMSUW
89
WHOEVER TRIES THE MOST STUFF AND
SCREWS THE MOST STUFF UP WINS
90
Tempo/ Temperament
91
WTTMSASTMSUTFW
92
WHOEVER TRIES THE MOST STUFF AND SCR
EWS THE MOST STUFF UP THE FASTEST WINS
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WHOEVER TRIES THE MOST STUFF AND SCR
EWS THE MOST STUFF UP THE FASTEST WINS
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If things seem under control, youre just not
going fast enough. Mario Andretti, race
driver Im not comfortable unless Im
uncomfortable. Jay Chiat If it works, its
obsolete. Marshall McLuhan
95
We eat change for breakfast. Harry
Quadracci, founder, QuadGraphics
96
Antifragile Things That GAIN From Disorder
Nassim Nicholas TalebNot to be confused with
RESILIENCE
97
We Are What We Eat
98
You will become like the five people you
associate with the most this can be either a
blessing or a curse. Billy Cox
99
Diversity IT IS HARDLY POSSIBLE TO OVERRATE THE
VALUE OF PLACING HUMAN BEINGS IN CONTACT WITH
PERSONS DIS-SIMILAR TO THEMSELVES, AND WITH MODES
OF THOUGHT AND ACTION UNLIKE THOSE WITH WHICH
THEY ARE FAMILIAR. SUCH COMMUNICATION HAS ALWAYS
BEEN, AND IS PECULIARLY IN THE PRESENT AGE, ONE
OF THE PRIMARY SOURCES OF PROGRESS. John Stuart
Mill
100
The We are what we eat axiom At its core,
every (!!!) relationship-partnership decision
(employee, vendor, customer, etc) is a strategic
decision about Innovate, Yes or No
101
The Bottleneck
102
The Bottleneck is at the Where are you
likely to find people with the least diversity of
experience, the largest investment in the past,
and the greatest reverence for industry dogma
Top of the Bottle. Gary Hamel/Harvard
Business Review
103
Whos the most interesting person youve met in
the last 90 days? How do I get in touch with
them? Fred Smith
104
Vanity Fair What is your most marked
characteristic? Mike Bloomberg Curiosity.
105
If I had to pick one failing of CEOs, its
that Co-founder of one of the largest
investment services firms in the USA/world
106
If I had to pick one failing of CEOs, its that
they dont read enough.
107
Do one thing every day that scares you.
Eleanor Roosevelt
108
INNOVATIONs BEDROCK MATCHLESS/ IMAGINATIVE
TALENT.
109
Business has to give people enriching,
rewarding lives
110
1/4,096 excellencenow.com Business has to give
people enriching, rewarding lives or it's
simply not worth doing. Richard Branson
111
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)
112
"If you want staff to give great service, give
great service to staff." Ari Weinzweig,
Zingerman's
113
In a world where customers wake up every morning
asking, Whats new, whats different, whats
amazing? success depends on a companys ability
to unleash initiative, imagination and passion of
employees at all levels and this can only happen
if all those folks are connected heart and soul
to their work their calling, their company
and their mission. John Mackey and Raj Sisoda,
Conscious Capitalism Liberating the Heroic
Spirit of Business
114
"When I hire someone, that's when I go to work
for them. John DiJulius, "What's the Secret to
Providing a World-class Customer Experience"
115
EXCELLENT customer experience depends entirely
on EXCELLENT employee experience! If you
want to WOW your customers, FIRST you must WOW
those who WOW the customers!
116
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 aiding 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.
117
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
118
CORPORATE MANDATE 1 2014 Your principal moral
obligation as a leader is to develop the
skillset, soft and hard, of every one of the
people in your charge (temporary as well as
semi-permanent) to the maximum extent of your
abilities. The good news This is also the 1
mid- to long-term profit maximization
strategy!
119
The role of the Director is to create a space
where the actors and actresses can become more
than theyve ever been before, more than theyve
dreamed of being. Robert Altman, Oscar
acceptance speech
120
Contrary to conventional corporate thinking,
treating retail workers much better may make
everyone (including their employers) much
richer. New York Times/ 01.05.14, Adam
Davidson, Planet Money/NPR (Cited in particular,
The Good Jobs Strategy, by M.I.T. professor
Zeynep Ton)
121
Wegmans (was 1 in USA) Container Store (was 1
in USA) Whole Foods Costco Publix Darden
Restaurants Build-A-Bear Workshops Starbucks
122
Training Investment 1!
123
Training Investment 1 In the Army, 3-star
generals worry about training. In most
businesses, the top training post is a ho hum
mid-level staff slot.
124
Is your CTO/Chief Training Officer your top paid
C-level job (other than CEO/COO)? Are your
top trainers paid/cherished as much as your top
marketers/ engineers?
125
Is your CTO/Chief Training Officer your top paid
C-level job (other than CEO/COO)? If not, why
not? Are your top trainers paid as much as your
top marketers and engineers? If not, why not? Are
your training courses so good they make you jump
with joy? If not, why not? Randomly stop an
employee in the hall Can she/he meticulously
describe her/his development plan for the next 12
months? If not, why not? Why is your world of
business any different than the (competitive)
world of rugby, football, opera, theater, the
military? If people/talent first and
hyper-intense continuous training are laughably
obviously for them, why not you?
126
Is your CTO/Chief Training Officer your top paid
C-level job (other than CEO/COO)? If not, why
not? Are your top trainers paid as much as your
top marketers and engineers? If not, why not? Are
your training courses so good they make you
giggle and tingle? If not, why not? Randomly
stop an employee in the hall Can she/he
meticulously describe her/his development plan
for the next 12 months? If not, why not? Why is
your world of business any different than the
(competitive) world of rugby, football, opera,
theater, the military? If people/talent first
and hyper-intense continuous training are
laughably obviously for them, why not you?
127
Gambling Man Bet 1 gtgt 5
of 10 CEOs see training as expense rather than
investment. Bet 2 gtgt 5 of 10 CEOs see training
as defense rather than offense. Bet 3 gtgt 5 of
10 CEOs see training as necessary evil rather
than strategic opportunity.
128
Bet 4 gtgt 8 of 10 CEOs, in 45-min tour
dhorizon of their biz, would NOT mention
training.
129
Training 1 Bottom Line NOBODY gets off the
hook! Training Development Maniac applies as
much to the leader of the 4-PERSON BUSINESS as
to the chief of the 44,444-person business.
130
3 Provide a pride- worthy job. 2 Help
people be successful at their current
job. 1 Help people grow/ prepare for an
uncertain future. Provide a secure
job.NOT POSSIBLE IN 2014. Societyand
profitabilitydemands this. (Or should!)
131
Hiring
132
Development can help great people be even
better but 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
133
2/Year Legacy
134
Promotion Decisionslife and death
decisionsSource Peter Drucker, The Practice
of Management
135
1st-Line Bosses (Cadre of) Productivity
Asset 1!
136
If the regimental commander lost most of his 2nd
lieutenants and 1st lieutenants and captains and
majors, it would be a tragedy. If he lost his
sergeants it would be a catastrophe. The Army and
the Navy are fully aware that success on the
battlefield is dependent to an extraordinary
degree on its Sergeants and Chief Petty Officers.
Does industry have the same awareness?
137
Employee retention satisfaction productivity
Overwhelmingly based on the first-line
manager!Source Marcus Buckingham Curt
Coffman, First, Break All the Rules What the
Worlds Greatest Managers Do Differently
138
People leave managers not companies. Dave
Wheeler
139
Is there ONE secret to productivity and
employee satisfaction? YES! The Quality of
your FULL CADRE of 1st-line Leaders.
140
COUNTER-ATTACK ADDING A STRATEGIC SERVICES
COMPONENT TO OUR PRODUCTS
141
Rolls-Royce now earns more from tasks such as
managing clients overall procurement strategies
and maintaining aerospace engines it sells than
it does from making them. Economist
142
You are headed for commodity hell if you dont
have services.Lou Gerstner
143
IBMtoIBM
144
UPS to UPS
145
UPS used to be a trucking company with
technology. Now its a technology company with
trucks. Forbes Its all about solutions.
We work with customers on creating and running
better, stronger, cheaper supply chains. Bob
Stoffel, UPS senior exec
146
The business of selling is not just about
matching viable solutions to the customers that
require them. Its 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.Je
ff Thull, The Prime Solution Close the Value
Gap, Increase Margins, and Win the Complex Sale
147
DESIGN PRIMACY
148
Design 1 APPLE market capitalization gt
Exxon Mobil August 2011
149
Design is TREATED LIKE A RELIGION at BMW.
Fortune
150
Hypothesis DESIGN is the principal difference
between love and hate!Not like and
dislike
151
Design is NEVER Neutral.
152
CDOChief Design Officer
153
Hypothesis Men CANNOT design for womens
needs!!??
154
Women BUY (Everything)!
155
Forget CHINA, INDIA and the INTERNET Economic
Growth Is Driven by WOMEN. Source Headline,
Economist
156

• W gt 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 combinedmore 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 thateven ones that
  are confidant that they have a winning strategy
  when it comes to women. Consider Dells
• Source Michael Silverstein and Kate Sayre, The
  Female Economy, HBR, 09.09

157
Women are THE majority market Fara
Warner/The Power of the Purse
158
Women as Decision Makers/Various SourcesHome
Furnishings 94Vacations 92 (Adventure
Travel 70/ 55B travel equipment)Houses
91D.I.Y. (major home projects) 80Consumer
Electronics 51 (66 home computers) Cars
68 (influence 90)All consumer purchases 83
Bank Account 89Household investment
decisions 67Small business loans/biz starts
70Health Care 80
159
The MOST SIGNIFICANT VARIABLE in EVERY sales
situation is the GENDER of the buyer, and more
importantly, how the salesperson communicates to
the buyers gender. Jeffery Tobias Halter,
Selling to Men, Selling to Women
160
The Perfect Answer
Jill and Jack buy slacks in black
161
(No Transcript)
162
Sales/After-sales Process 1.    Initiation 
Women 2.    Research Women 3.    Purchase 
Men 4.    Ownership Women 5.    Word-of-mouth
Women Source Martha Barletta, Marketing to
Women How to Increase Your Share of the Worlds
Largest Market
163
I speak to you with a feminine voice. Its the
voice of democracy, of equality. I am certain,
ladies and gentlemen, THAT THIS WILL BE THE
WOMANS CENTURY. In the Portuguese language,
words such as life, soul, and hope are of the
feminine gender, as are other words like courage
and sincerity. President Dilma Rousseff of
Brazil, 1st woman to keynote the United Nations
General Assembly (2011)
164
I speak to you with a feminine voice. Its the
voice of democracy, of equality. I am certain,
ladies and gentlemen, that this will be the
womans century. In the Portuguese language,
words such as life, soul, and hope are of the
feminine gender, as are other words like courage
and sincerity. President Dilma Rousseff of
Brazil, 1st woman to keynote the United Nations
General Assembly (2011)
165
AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measure TITLE/ Special
Report/ BusinessWeek
166
Research suggests that to succeed, start by
promoting women. Nicholas Kristof, Twitter,
Women, and Power, NYTimes In my experience,
women make much better executives than men.
Kip Tindell, CEO, Container Store
167
McKinsey Company found that the
international companies with more women on their
corporate boards far outperformed the average
company in return on equity and other measures.
Operating profit was 56 higher.
Nicholas Kristof, Twitter, Women, and Power,
NYTimes, 1024.13
168
8/80 EXPERIENCE DESIGN THE AGE OF
TGRs Things Gone RIGHT
169
Customers describing their service experience as
superior 8 Companies describing the service
experience they provide as superior
80 Source Bain Company survey of 362
companies, reported in John DiJulius, What's the
Secret to Providing a World-class Customer
Experience?
170
Conveyance Kingfisher Air Location Approach to
New Delhi
171
May I clean your glasses, sir?
172
It BEGINS (and ENDS) in the
173
PARKING LOTDisney
174
ltTGWand gtTGR(Things Gone WRONG-Things
Gone RIGHT)
175
TGRS. MANAGE EM. MEASURE EM. I use
manage-measure a lot. Translation These are
not soft ideas they are exceedingly important
things that can be managedAND measured.
176
Experiences are as distinct from services as
services are from goods. Joe Pine Jim
Gilmore, The Experience Economy Work Is Theatre
Every Business a Stage
177
CXOChief eXperience Officer
178
LBTs
179
Little BIGThank you, Mr. Prime Minister
180
Big carts 1.5X Source Walmart
181
Bag sizes New markets B Source
PepsiCo
182
2X When Friedman slightly curved the right
angle of an entrance corridor to one property, he
was amazed at the magnitude of change in
pedestrians behaviorthe percentage who entered
increased from one-third to nearly two-thirds.
Natasha Dow Schull, Addiction By Design
Machine Gambling in Las Vegas
183
Machine Gambling Pleasing odor 1 vs.
pleasing odor 2 45 revenue Source
Effects of Ambient Odors on Slot-Machine Useage
in Las Vegas Casinos, reported in Natasha Dow
Schull, Addiction By Design Machine Gambling in
Las Vegas (66 revenue, 85 profit)
184
(1) Amenable to rapid experimentation/
failure free (PR, ) (2) Quick to
implement/ Quick to Roll out (3) Inexpensive
to implement/Roll out (4) Huge
multiplier (5) An Attitude
185
LEADERSHIP For EXCELLENCE
186
MBWA
187
ManagingBy WanderingAround
188
Im always stopping by our storesat least 25
a week. Im also in other places Home Depot,
Whole Foods, Crate Barrel. I try to be a
sponge to pick up as much as I can. Howard
SchultzSource Fortune, Secrets of Greatness
189
Most managers spend a great deal of time
thinking about what they plan to do, but
relatively little time thinking about what they
plan not to do. As a result, they become so
caught up in fighting the fires of the moment
that they cannot really attend to the long-term
threats and risks facing the organization. So the
first soft skill of leadership the hard way is to
cultivate the perspective of Marcus Aurelius
avoid busyness, free up your time, stay focused
on what really matters. Let me put it bluntly
every leader should routinely keep a substantial
portion of his or her timeI would say as much as
50 percentunscheduled. Only when you have
substantial slop in your scheduleunscheduled
timewill you have the space to reflect on what
you are doing, learn from experience, and recover
from your inevitable mistakes. Leaders without
such free time end up tackling issues only when
there is an immediate or visible problem.
Managers typical response to my argument about
free time is, Thats all well and good, but
there are things I have to do. Yet we waste so
much time in unproductive activityit takes an
enormous effort on the part of the leader to keep
free time for the truly important things.
Dov Frohman ( Robert Howard), Leadership The
Hard Way Why Leadership Cant Be Taught And How
You Can Learn It Anyway (Chapter 5, The Soft
Skills Of Hard Leadership)
190
You Your calendarThe calendar NEVER lies.
191
The 4 most important words in any organization
are
192
THE FOUR MOST IMPORTANT WORDS IN ANY
ORGANIZATION ARE WHAT DO YOU THINK?
Source courtesy Dave Wheeler, posted at
tompeters.com
193
Employees who don't feel significant rarely make
significant contributions. Mark Sanborn
194
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
195
DRIVING INNOVATION EXCELLENCE1 Mouth,2 Ears
196
The doctor interrupts after Source
Jerome Groopman, How Doctors Think
197
18
198
18 seconds!
199
(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
organization effectiveness.) (cont.)
200
Best Listeners Win IF YOU DONT LISTEN, YOU
DONT SELL ANYTHING. Carolyn Marland
201
8 of 10 sales presentations fail50 failed
sales presentations talking at before
listening!Susan Scott, Let Silence Do the
Heavy Lifting, chapter title, Fierce
Conversations Achieving Success at Work and in
Life,One Conversation at a Time
202
Suggested Core Value 1 We are Effective
Listenerswe treat Listening EXCELLENCE as the
Centerpiece of our Commitment to Respect and
Engagement and Community and Growth.
203
CONRAD HILTON
204
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
205
Remember to tuck the shower curtain inside the
bathtub.
206
EXECUTION IS STRATEGY. Fred Malek
207
In real life, strategy is actually very
straightforward. Pick a general direction and
implement like hell. Jack Welch
208
COSTCO FIGURED OUT THE BIG, SIMPLE THINGS AND
EXECUTED WITH TOTAL FANATICISM. Charles
Munger, Berkshire Hathaway
209
!
210
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211
The reasonable man adapts himself to the world
the unreasonable one persists in trying to adapt
the world to himself. Therefore all progress
depends on the unreasonable man. G.B. Shaw, Man
and Superman The Revolutionists
Handbook Whenever anything is being
accomplished, it is being done, I have learned,
by a monomaniac with a mission. Peter Drucker