“Execution is strategy.” —Fred Malek

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NOTE: To appreciate this presentation [and ensure that it is not a mess], you need Microsoft fonts: “Showcard Gothic,” “Ravie,” “Chiller” and “Verdana”









“Execution is strategy.” —Fred Malek fffffii



“almost inhuman disinterestedness in … strategy” —Josiah Bunting on U.S. Grant (from Ulysses S. Grant)



MBWA















1982







Hard Is Soft Soft Is Hard



Hard Is Soft (Plans, #s) Soft Is Hard (people, customers, values, relationships))



2007 Siberia







2007 Sydney













“We are a ‘Life Success’ Company.” Dave Liniger, founder, RE/MAX











“The deepest human need is the need to be appreciated.” William James



“Buy in”- “Ownership”-Authorial bragging rights-“Born again” Champion = One Line of Code!



“Leaders ‘SERVE’ people. Period.” —inspired by Robert Greenleaf









TP: “How to flush $500,000 down the toilet in one easy lesson!!”



< CAPEX > People!





Our Mission To develop and manage talent; to apply that talent, throughout the world, for the benefit of clients; to do so in partnership; to do so with profit. WPP



Brand = Talent.



The 19 Es of Excellence





“Mr. Watson, how long does it take to achieve Excellence?”



“1 minute”



Some like it hot!



“Insanely Great”



“Radically thrilling” BMW



“You do not merely want to be the best of the best. You want to be considered the only ones who do what you do.” —Jerry Garcia









#1 Truthteller …



You = Your calendar* *Calendars never lie



“I used to have a rule for myself that at any point in time I wanted to have in mind — as it so happens, also in writing, on a little card I carried around with me — the three big things I was trying to get done. Three. Not two. Not four. Not five. Not ten. Three.” — Richard Haass, The Power to Persuade



Dennis, you need a … ‘To-don’t ’ List !”



“You must be the change you wish to see in the world.” Gandhi



“To develop others, start with yourself.” —Marshall Goldsmith



#1 Trait …



“I am a dispenser of enthusiasm.” —Ben Zander



“Nothing is so contagious as enthusiasm.” —Samuel Taylor Coleridge



Halt. Do. It. Now. …





Skip the map



“Mapping your competitive position” or …



1. Have you in the last 10 days … visited a customer? 2. Have you called a customer … TODAY?



The “Have you …” 50













Pursuing Discomfort!



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



“Do one thing every day that scares you.” —Eleanor Roosevelt



Kevin Roberts’ Credo 1. Ready. Fire! Aim. 2. If it ain’t 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!



The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo



“You miss 100% of the shots you never take.” —Wayne Gretzky



BIG?





Dick Kovacevich: You don’t get better by being bigger. You get worse.”



“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



“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



#4 Japan #2T USA #2T China



#4 Japan #3 USA #2 China #1 Germany



Reason!!! Mittelstand



Jim’s Group





1/40



try it. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Screw it up. Try it. Try it. Try it. Try it. Try it. Try it. Try it. Screw it up. it. Try it. Try it. try it. Try it. Screw it up. Try it. Try it. Try it.



“We have a ‘strategic plan.’ It’s called doing things.”Herb Kelleher









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



“Fail . Forward. Fast.” High Tech CEO, Pennsylvania



Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec





4/40





CF: 30% (no salesfolk) MH: 80% (salesfolk)





Small is (can often be) BIG





Behavioral Primacy! E.g.: plate size; location of platters, 6.5 feet Away = -63% “Seconds” Source: Brian Wansink, Mindless Eating (20 lbs per year; 200 decisions per day)









90K in U.S.A. ICUs on any given day; 178 steps/day in ICU. 50% stays result in “serious complication” Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07)



**Peter Pronovost, Johns Hopkins, 2001 **Checklist, line infections **1/3rd at least one error when he started **Nurses/permission to stop procedure if doc, other not following checklist **In 1 year, 10-day line-infection rate: 11% to … 0% Source: Atul Gawande, “The Checklist” (New Yorker, 1210.07)





















We Are What We Eat







Measure “Strangeness”/Portfolio Quality Staff Consultants Vendors Out-sourcing Partners (#, Quality) Innovation Alliance Partners Customers Competitors (who we “benchmark” against) Strategic Initiatives Product Portfolio (LineEx v. Leap) IS/IT Projects HQ Location Lunch Mates Language Board



The “Hang Out Axiom”: At its core, every (!!!) relationship-partnership decision (employee, vendor, customer, etc) is a strategic decision about: “Innovate, ‘Yes’ or ‘No’ ”



Axiom: Never use a vendor who is not in the top quartile (decile?) in their industry on R&D spending!* *Inspired by Hummingbird



“Normal” = “o for 800”



Diverse groups of problem solvers—groups of people with diverse tools—consistently 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 Diversity





“The Billion-man Research Team: Companies offering work to online communities are reaping the benefits of ‘crowdsourcing.’” —Headline, FT, 0110.07



Rob McEwen/CEO/ Goldcorp Inc./ Red Lake gold Source: Wikinomics: How Mass Collaboration Changes Everything, Don Tapscott & Anthony Williams



“The Bottleneck Is at the Top of the Bottle” “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: At the top!” — Gary Hamel/Harvard Business Review









Greater than …





“Women are the majority market” —Fara Warner/The Power of the Purse



“The most significant variable in every sales situation is the gender of the buyer, and more importantly, how the salesperson communicates to the buyer’s gender.” —Jeffery Tobias Halter, Selling to Men, Selling to Women







Cases! Cases! Cases! McDonald’s (“mom-centered” to “majority consumer”; not via kids) Home Depot (“Do it [everything!] Herself”) P&G (more than “house cleaner”) DeBeers (“right-hand rings”/$4B) AXA Financial Kodak (women = “emotional centers of the household”) Nike (> jock endorsements; new def sports; majority consumer) Avon Bratz (young girls want “friends,” not a blond stereotype) Source: Fara Warner/The Power of the Purse





AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” TITLE/ Special Report/ BusinessWeek



10.6









“One thing is certain: Women’s rise to power, which is linked to the increase in wealth per capita, is happening in all domains and at all levels of society. Women are no longer content to provide efficient labor or to be consumers with rising budgets and more autonomy to spend. … This is just the beginning. The phenomenon will only grow as girls prove to be more successful than boys in the school system. For a number of observers, we have already entered the age of ‘womenomics,’ the economy as thought out and practiced by a woman.” —Aude Zieseniss de Thuin, Financial Times, 10.03.2006



Where the Money is …





7/13



2000-2010 Stats 18-44: -1% 55+: +21% (55-64: +47%)



44-65: “New Customer Majority” * *45% larger than 18-43; 60% larger by 2010 Source: Ageless Marketing, David Wolfe & Robert Snyder





No “Anger Management,” Please!





“SkunkWorks”/ “ParallelUniverse” “the 1% solution” Source: Scott Bedbury (Others: 3M, Google, Shell, NAVFAC)



SkunkWorks/ “Skunks” (!!!)



“[CEO A.G.] Lafley has shifted P&G’s focus on inventing all its own products to developing others’ inventions at least half the time. One successful example Mr. Clean Magic Eraser, based on a product found in an Osaka market.” —Fortune



The “8Ps” of Innovation Success: Pissed off! [Determined to change the world] Passion!!!! [Persist, take the heat, sell] Prototypes. [Fast & Furious] pow!! [Insanely great!] Pals. [Buddies with different skills, recruiting ability] Protector. [Run cover, champion your cause] Politics. [Political skill] Persistence. [Can handle the bumps and U-turns]



Innovation Index: How many of your Top 5 Strategic Initiatives/Key Projects score 8 or higher [out of 10] on a “Weird”/ “Profound”/ “Wow”/“Game- changer” Scale?





XFX



X =XFX* *Excellence = Cross-functional Excellence







(Way) Underutilized Lever Space! Space! Space! Space!



The “XF-50”: 50 Ways to Enhance Cross-Functional Effectiveness and Deliver Speed, “Service Excellence” and “Value-added Customer ‘Solutions’”* *Entire “XF-50” List is an Appendix to the LONG version of this presentation, posted at tompeters.com



#1



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







#1. Strategic. Priority. Period.



#1A



#1 cause of Dis-satisfaction?



Employee retention & satisfaction: Overwhelmingly, based on the first-line manager! Source: Marcus Buckingham & Curt Coffman, First, Break All the Rules: What the World’s Greatest Managers Do Differently



#1B



2/year = legacy.



“Leaders ‘do’ people. Period.” —Anon.



“Leaders ‘SERVE’ people. Period.” —inspired by Robert Greenleaf



Tea Power



Give good tea!















“Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” —Henry Clay









Profitable







none!



Press Ganey Assoc: 139,380 former patients from 225 hospitals: none of THE top 15 factors determining Patient Satisfaction referred to patient’s health outcome P.S. directly related to Staff Interaction P.P.S. directly correlated with Employee Satisfaction Source: Putting Patients First, Susan Frampton, Laura Gilpin, Patrick Charmel



“Kindness is free.”



TGR





2-cent candy



Commerce Bank: From “Service” to “Experience” 7X. 730A-800P. F12A.



“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



W vs. >TGR [Things Gone WRONG/Things Gone RIGHT]



Hypothesis: DESIGN is the principal difference between love and hate!* *Not “like” and “dislike”



IBM



“M” = $0



IBM: $55B* *Also HP-EDS





Big Brown’s New Bag: UPS Aims to Be the Traffic Manager for Corporate America —Headline/BW “UPS wants to take over the sweet spot in the endless loop of goods, information and capital that all the packages [it moves] represent.” —ecompany.com (E.g., UPS Logistics manages the logistics of 4.5M Ford vehicles, from 21 mfg. sites to 6,000 NA dealers)



Huge: Customer Satisfaction versus Customer Success



The Value-added Ladder/TRANSFORMATION Customer Success/ Gamechanging Solutions Services Goods Raw Materials



The Real Deal

























The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo




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