The Challenge: To Create More Value in All Negotiations

The Challenge: To Create More Value in All Negotiations

THE RED CARPET STORE THE RED CARPET STORE (Joel Resnick/Flemington NJ) 1,600 cheeses

1,400 varieties of hot sauce 12,000 wines priced from $8 to $8,000 a bottle 6,000 Christmas ornaments 50,000 trims PASSION RETAIL SUPERSTARS: INSIDE THE 25 BEST INDEPENDENT STORES IN AMERICAGeorge Whalin

JUNGLE JIMS INTERNATIONAL MARKET, FAIRFIELD, OH: An adventure in shoppertainment, begins in the parking lot and goes on to 1,600 cheeses and, yes, 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 come 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. Retail Superstars: Inside the 25 Best

Independent Stores in America by George Whalin 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

Jims Group: Jim Penman.* 1982: Jims Mowing. Late 2000s: Jims Group. 3,200+ franchisees (Australia, NZ, worlds largest home franchise business. $320M (2012); HQ: Mooroobark/Victoria Canada, UK); $100K/franchise;

Cleaning. Dog washing. Handyman. Fencing. Paving. Pool care. Etc. Etc. People first. Private. Small staff. Franchisees can leave at will/no penalty. 0 or 1 complaint per year is norm; dump bad ones quickly. *The start: getting Ph.D. cross-cultural anthropology; mowing on the side !

The Magicians of Motueka (PLUS) W.A. Coppins Ltd.* (Coppins Sea Anchors/ PSA/para sea anchors) *Textiles, 1898; thrive on wicked problems

U.S. Navy STLVAST (Small To Large Vehicle At Sea Transfer); custom fabric from W. Wiggins Ltd./Wellington (specialty nylon, Dyneema, from DSM/Netherlands) e.g., BE THE BEST. ITS THE ONLY MARKET THATS NOT CROWDED.

From: Retail Superstars: Inside the 25 Best Independent Stores in America, George Whalin Going Social/Location and Size Independent: SM/SX/SE/SO/SB 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

We are the best teachers in the world on the fiberglass swimming pools. Now we say, subject of fiberglass swimming pools, and we also happen to build them.

-1/+1 S&P 500 +1/-1* *Every ! 2 weeks

Source: Richard Foster (via Rita McGrath/HBR/12.26.13 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 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 Buy a very large one and just

wait. obvious: Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics 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 MITTELSTAND* ** *agile creatures darting between the legs of

the multinational monsters (Bloomberg Businessweek, 10.10) **E.g. Goldmann Produktion Middle-sized NicheMicro-niche Dominators! I love Own a niche through Excellence!

#1 Failing 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 If I had to pick one failing of

they dont read enough. CEOs, its that In my whole life, I have known no wise people (over a broad subject matter area) who didnt read all

the time none. Zero. Youd be amazed at how much Warren [Buffett] reads and how much I read. Charlie Munger (Berkshire Hathaway)

LONG Tom Peters Re-Imagine ! EXCELLENCE MASTERY

Total Real Estate Training/Annual Education Conference Sydney/15-16 July 2014 Slides at tompeters.com (Also see our 23-part Master Compendium at excellencenow.com) EXECUTION Hiltons Law

CONRAD HILTON, at a gala celebrating his career, was called to the podium and What were the most important lessons you learned in your long and distinguished career? His answer asked,

Remember to tuck the shower curtain inside the bathtub. IS

EXECUTION STRATEGY. Fred Malek Amateurs talk about strategy. Professionals talk about logistics.* General Omar Bradley

Britain Against Napoleon: The Organization of Victory 1793-1815 *Also see: Roger Knight, COSTCO FIGURED OUT BIG, SIMPLE THINGS

THE AND EXECUTED WITH TOTAL FANATICISM. Charles Munger, Berkshire Hathaway

In real life, strategy is actually very straightforward. Pick a general and implement like hell. direction

Jack Welch EXECUTION IS THE JOB OF THE BUSINESS LEADER. Larry

Bossidy & Ram Charan/ Execution: The Discipline of Getting Things Done 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 OPERATIONALIZING: ITS GOTTA ADD UP!

(1) SUM OF PROJECTS = GOAL (VISION) (2) SUM OF MILESTONES = ON-TIME PROJECT (3) RAPID REVIEW + TRUTH-TELLING = ACCOUNTABILITY YOU BEAT

YOURSELF! Sports: EXPONENTIAL 1,000,000 Train Passengers Too Distracted By

Phones to Notice Gunman Headline, HuffingtonPost, 1009.13 G R I N enetics

obotics nformatics anotechnology The greatest shortcoming of the human race is our

inability to understand the exponential function. 1/721: Albert A. Bartlett 1,000,00 0

China/Foxconn: 1,000,00 0 robots/next 3 Automation has become so sophisticated that on a typical passenger flight, a human pilot

holds the controls for a grand total 3 minutes of . [Pilots] have become, its not much of an exaggeration to say, computer

operators. Source: Nicholas Carr, The Great Forgetting, The Atlantic, Atlantic, 11.13 Meet Your Next Surgeon: Dr. Robot Source: Feature/Fortune/15 JAN 2013/on Intuitive Surgicals da Vinci

/multiple bypass heart-surgery robot Robot Wars! The combination of new market rules and new technology was turning

the stock market into, in a war of robots. effect, Michael Lewis, Goldmans Geek Tragedy, Vanity Fair, 09.13

Human level capability has not turned out to be a special stopping point from an engineering perspective. . Steve, youre

costing me a hundred nanoseconds. Can you at least cross it diagonally? [$100B/Millisecond] Source: Michael Lewis, Lewis, Flash Boys (Dan Spivey, Spread Network, $300M, 3 milliseconds, 15-12, Chicago-NJ)

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. Source: Business Insider, 13 May 2014: A Hong Kong VC fund

has just appointed an algorithm to its board. Flash forward to dystopia. You work in a chic cubicle, sucking chicken-flavor sustenance from a tube. Youre furiously maneuvering with a joystick Your boss stops by and gives you a look. We need to talk about your loyalty to this The organization you work for has deduced that you

are considering quitting. It predicts your plans and intentions, possibly before you have even conceived them. company. Eric Siegel, Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie, or Die (based on a real case, an

HP Flight risk PA model developed by HR, with astronomical savings potential) 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 Great Restructuring. throes of a

Our technologies are racing ahead, but our skills and organizations are lagging behind. Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfee Circa 3013: And YOUTH Shall Lead Us 60 IS THE NEW 40!

70 IS THE NEW 50! And/Or 35 IS THE NEW 65?* *Pace of obsolescence STAGGERING/ACCELERATING IoE 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!] Internet of Everything The idea of the IoE* [Internet of Everything/Cisco Systems] is a networked connection of people,

processes, data and things, which is being facilitated by technology transitions such as increased mobility, cloud computing and the importance of big data. *Estimated market size, next decade: $14.4 trillion

Ford is working with the healthcare industry on a solution that would notify a nearby hospital if you were having a heart attack in your car, which can send an ambulance before you even know youre having one. Daniel Kellmereit & Daniel Obodovski, The Silent Intelligence: The Internet of Things

Walmart SV = 1,500 Social Business/ Customer Engagement+++ Customer engagement is

moving from relatively isolated market transactions to deeply connected and sustained social relationships. This basic change in how we do business will make an impact on just about everything we do. Social Business By Design: Transformative Social Media Strategies For the Connected Company Dion Hinchcliffe & Peter Kim

Biz 2014: Get Aboard the S-Train SM/Social Media. SX/Social eXecutives. SE/Social Employees. SO/Social Organization.

Collaborative Economy/Sharing Economy (Social Network Driven) *Airbnb *Uber ($10B) *Taskrabbit*Lyft *Sidecar *CrowdSpring *oDesk *Zirtual

*PopExpert *Techshop *Relayride *Etc. *Many, many Etcs. Amy Howell [social marketer extraordinaire,

ignites epidemics. In a good way, of course. Epidemics of excitement. Epidemics of business connections. Epidemics of influence. founder of Howell Marketing] Mark Schaeffer, ROI/Return on Influence: The Revolutionary Power of Klout, Social Scoring, and Influence Marketing

Were moving toward an age of nearly perfect information. Review sites, shopping apps on smartphones, an extended network of acquaintances available through social media, and unprecedented access to experts mean that consumers operate in a radically different, socially interactive information environment.* Consumers tend to make better decisions and become less susceptible to context or framing manipulations. For businesses, it means

marketing is changing forever. Itamar Simonson and Emanuel Rosen, Value: Absolute What Really Influences Customers in the Age of (Nearly) Perfect Information

*Google: ZMOT (ZERO Moment Of Truth) ZMOT : ZERO Moment Of Truth/Google*

You know what a moment of truth is. Its when a prospective customer decides either to take the next step in the purchase funnel, or to exit and seek other options. But what is a zero moment of truth? Many behaviors can serve as a zero moment of truth, but what binds them together is that the purchase is being researched and considered before the prospect even enters the classic sales funnel In its research, Google found that

84% of shoppers said the new mental model, ZMOT, shapes their decisions. Jay Baer, Youtility: Why Smart Marketing Is About Help, Not Hype *See www.zeromomentoftruth.com for ZMOT in book-length format I believe this is

the quest for what a personal computer really is. It is to capture ones entire life. Gordon Bell EXCELLENCE !

Excellence 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 Breakthrough 82* People! Customers! Action!

Values! *In Search of Excellence Why in the World did you go to Siberia? An emotional, vital, innovative, joyful, creative, entrepreneurial endeavor that elicits

maximum Enterprise* (*at its best): concerted human potential in the wholehearted pursuit of EXCELLENCE in service of others.** others **Employees, Customers, Suppliers, Communities, Owners, Temporary partners

ORGANIZATIONS EXIST TO SERVE. PERIOD. LEADERS LIVE TO SERVE. PERIOD. 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. Hard is Soft. Soft is hard. Hard Soft (numbers, plans)

(people/relationships) is Soft. is Hard. If I could have chosen not to tackle the IBM culture headon, I probably wouldnt have. My bias coming in was toward strategy, analysis and measurement. In comparison, changing the attitude and behaviors of hundreds of

Yet I came to see in my time at IBM that culture isnt just thousands of people is very, very hard. one aspect of the game IT IS THE GAME.

Excellence: NOT an Aspiration EXCELLENCE is not an "aspiration.

EXCELLENCE is THE NEXT FIVE MINUTES. Excellence is the next five minutes OR NOT. 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. Mr. Watson, how long does it take

to achieve Excellence? Source: Thomas Watson, legendary Chairman/CEO, IBM 1 minute One minute. You make up your mind

to never again do something that is not excellent. LEADERSHIP: Some Stuff I Think Is Important 25/50

MBWA Managing By Wandering Around 25

Im always stopping by our at least stores a week. 25

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 Schultz 50 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

unscheduled. percent 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. You = Your calendar/ Your calendar

NEVER lies. You = Your calendar* *The calendar NEVER lies.

Dennis, you need a To-dont List ! Questionable (Pitiful?) Judgment Skills

PLEASE CONSIDER: Multi-month/ continuing Study Group to assess (at a snails pace) the impact on day-to-day affairs of the limitations of judgment implied by Daniel Kahnemans

Thinking, Fast and Slow The first principle is that you must not fool yourself, and you are the easiest person to fool.

Richard Feynman ONE at a Time If there is any one secret to effectiveness, it is

concentration. Effective executives do first things first they do and one thing at a time.

Peter Drucker MBWA 4 MBWA 8 MBWA 12 The 4 most

important words in any organization are THE FOUR MOST IMPORTANT WORDS IN ANY ORGANIZATION WHAT DO YOU THINK?

ARE Source: courtesy Dave Wheeler, posted at tompeters.com 8 MBWA : Change the World With EIGHT Words

What do you think?* How can I help?** *Dave Wheeler: What are the four most important words in the bosss lexicon? **Boss as CHRO/Chief Hurdle Removal Officer ********************************** 12 MBWA : Change the World

With TWELVE Words What do you think?* How can I help?** What have you learned?*** *Dave Wheeler: What are the four most important words in the boss lexicon? **Boss as CHRO/Chief Hurdle Removal Officer ********************************** ***What (new thing) have you learned (in the last 24 hours)? ********************* * Should be able to get

immediate answer upon stopping anyone and What have you learned today? asking, WDYT =

Certification of me as a person of importance whose opinion is valued. ! Acknowledgement

The deepest principle in human nature is the craving* to be appreciated. William James *Craving, not wish or desire or longing/Dale Carnegie, How to Win Friends and Influence People (The BIG Secret of Dealing With People)

Employees who don't feel significant rarely make significant contributions. Mark Sanborn 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 ! Meeting Power

Bitch all you want, but meetings are what you (boss/leader) do! #1 Meetings =

leadership opportunity Meetings are #1 bosses do. Therefore, thing

100% of those meetings: EXCELLENCE. ENTHUSIASM. ENGAGEMENT. LEARNING. TEMPO. WORK-OF-ART. DAMN IT.

1 Mouth, 2 Ears The doctor interrupts after *

*Source: Jerome Groopman, How Doctors Think 18 18 seconds! [An obsession with] Listening is ... the ultimate mark of

Respect Listening is ... Listening is ... Listening is ... Listening is ... Listening is ... Listening is ... Listening is ...

the heart and soul of Engagement. the heart and soul of Kindness. the heart and soul of Thoughtfulness. the basis for true Collaboration. the basis for true Partnership. a Team Sport. a Developable Individual Skill.* (*Though women Listening is ...

Listening is ... Listening is ... Listening is ... the basis for Community. the bedrock of Joint Ventures that work. the bedrock of Joint Ventures that grow. the core of effective Cross-functional Communication.* (*Which is in turn Attribute #1 of

are far better at it than men.) organization effectiveness.) [cont.] . Best Listeners Win

IF YOU DONT LISTEN, YOU DONT SELL ANYTHING. Carolyn Marland *8 of 10 sales presentations fail *50% failed sales talking

at before listening! presentations Susan Scott, Let Silence Do the Heavy Listening, chapter title, Fierce Conversations: Achieving Success at Work and in Life, One Conversation at a Time 10 Essential Selling Principles Most Salespeople Get Wrong 1. Assuming the problem that the prospect communicates

is the real problem. 2. Thinking that your sales presentation will seal the deal. 3. Talking too much. 4. Believing that you can sell anybody anything. 5. Overeducating the prospect when you should be selling.

6. Failing to remember that salespeople are decisionmakers, too. 7. Reading minds. 8. Working as an unpaid consultant to seal the deal. 9. Being your own worst enemy. 10. Keeping your fingers crossed that a prospect doesnt notice a problem. Everyone has a story to tell, if only you have the

patience to wait for it and not get in the way of it. Charles McCarry, Christophers Ghosts I always write LISTEN on

the back of my hand before a meeting. Source: Tweet viewed @tom_peters 1 # 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. Listen = Profession = Study = practice = evaluation = Enterprise value *Listening is of the utmost strategic

importance! *Listening is a proper core value ! *Listening is trainable ! *Listening is a

! profession 95% K=R= P Courtesies of a small

and trivial character are the ones which strike deepest in the grateful and appreciating heart. Henry Clay 139,380 former patients from 225 hospitals:

Press Ganey Assoc: NONE of THE top 15 factors determining Satisfaction

Patient 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

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 interactionsalienating 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. Putting Patients First, First, Susan Frampton, Laura Gilpin, Patrick Charmel

(Griffin Hospital/Derby CT; Plantree Alliance) Kindness = Repeat Business = Profit. Responsiveness/ Apology/ Im sorry!

3 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, Goldsmith, What Got You Here Wont Get You There: How Successful People Become Even More Successful. With a new and forthcoming policy on apologies Toro, the lawn mower folks, reduced the average cost of settling a claim $115,000 in 1991 to

$35,000 in 2008 and the company hasnt been to trial in the last 15 years! from THERE ONCE WAS A TIME WHEN A Relationships

(of all varieties): 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. THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE RESPONSE TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM.*

PROBLEM *PERCEPTION IS ALL THERE IS! #1 People People People Business has to

give people enriching, rewarding lives 1/4,096: excellencenow.com Business has to give people enriching, or it's simply not

worth doing. rewarding lives Richard Branson 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 semipermanent) to the maximum extent of your abilities. The good news: This is also the #1 mid- to long-term profit maximization strategy! CORPORATE MANDATE #1 2014: Business Moral Imperative:

[INCREASE THE] SUM OF HUMAN WELLBEING. Source: Good Business, Mihaly Csikszentmihalyi It may sound radical, unconventional, and bordering on being a crazy business idea. Howeveras 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, 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

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 levelsand 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 The greatest satisfaction for management has come not from the financial growth of Camellia itself, but rather from having participated in the vast improvement in the living and working conditions of its employees, resulting from the investment of many

tens of millions of pounds into the tea gardens infrastructure of roads, factories, hospitals, employees housing and amenities. Within the Camellia Group there is a strong aesthetic dimension, an intention that it should comprise companies and assets of the highest quality, operating from inspiring offices and manufacturing in state of the Above all, there is a deep concern for the welfare of each employee. This arises not only from

a sense of humanity, but also from the conviction that the loyalty of a secure and enthusiastic employee will in the long-term prove to be an invaluable company asset. art facilities. Camellia: A Very Different Company ($600M/$160M/$100M)

You have to treat your employees like customers. Herb Kelleher, upon being asked his secret to success Source: Joe Nocera, NYT, Parting Words of an Airline Pioneer,

on the occasion of Herb 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 If you want staff to give great service, give great service to staff. Ari Weinzweig, Zingerman's

EXCELLENT customer experience depends entirely on EXCELLENT employee experience! If you want to WOW your FIRST

customers, you must WOW those who WOW the customers! "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" We are a Life Success

Company. Dave Liniger, founder, RE/MAX The organization would ultimately win not because it gave agents more money, but because it gave them a chance for better lives.Phil Harkins & Keith Hollihan,

Everybody Wins (the story of RE/MAX) Employees who don't feel significant rarely make significant contributions. Mark Sanborn

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 enhancing 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. 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 I start with the premise that the function of leadership is to

produce more leaders, not more followers. Ralph Nader 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. To be an effective

leader, you have to first have a desire and a commitment to helping people. Harry Rhoads, Co-founder and CEO, Washington Speakers Bureau LEADERS

DO PEOPLE. Tom, you left out one thing Tom, you left out one

Leaders enjoy leading! thing Unremarkable except for RESULTS: Superb people developer

(her/his folks are invariably amazed at what theyve accomplished!) Among the most effective leaders I have encountered and worked with in half a century, some have locked themselves into their offices and others were ultra-gregarious. Some were quick and impulsive, some studied the situation

and took forever to come to a decision. The one and only personality trait the effective ones did have in common was something they did not have: They had little or no charisma, and little use for the term. Peter Drucker, in Susan Cain,

Quiet: The Power of Introverts in a World That Cant Stop Talking LEADERS DO PEOPLE. PERIOD. Anon.

You CHOSE to be a boss/leader. Hence you CHOSE to devote the rest of your professional career to REMEMBER: DEVELOPING

PEOPLE. From sweaters to people!* Les Wexner: *Limited Brands founder Les Wexner queried on astounding longterm successsaid, in effect, it happened because he got

as excited about developing people as he had been about predicting fashion trends in his early years. PARCs Bob Taylor: CONNOISSEUR OF TALENT The leaders of Great Groups love talent

and know where to find revel in the talent of others. it. They Warren Bennis & Patricia Ward

Biederman, Organizing Genius The Memories That Matter 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 long shots (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. Imagine looking back 5 years from now on the prior 5 years: What will you be able to say about your PEOPLE DEVELOPMENT SCORECARD?

(What can you say about the last 5 years?) The Memories That Matter Joe J. Jones 1943 2013 Net Worth $21,543,672.48

Not. Hiring. Development can help great people be even betterbut if I had a dollar to spend, Id

70 cents spend getting the right person in the door. Paul Russell, Director, Leadership and Development, Google

the most important aspect of business and yet remains woefully misunderstood. In short, hiring is Source: Wall Street Journal, 10.29.08, review of Who: The A Method for Hiring,

Geoff Smart and Randy Street Observed closely: The use of I or We during a

job interview. I cant tell you how many times we passed up hotshots for guys we thought were better people and watched our guys do a lot better than the big names, not just in the classroom, but on the fieldand,

naturally, after they graduated, too. Again and again, the blue chips faded out, and our little up-and-comers clawed their way to allconference and All-America teams.Bo Schembechler (& John Bacon), Recruit for Character, Bos Lasting Lessons Its simple, really,

Tom. Hire for s, and, above all, promote for s. Starbucks regional manager,

on why so many smiles at Starbucks shops Put it in the FORMAL criteria list. DAMN IT! Andrew Carnegies Tombstone Inscription Here lies a man

Who knew how to enlist In his service Better men than himself. Source: Peter Drucker, The Practice of Management Quiet We live with a value system that I call the Extrovert Idealthe omnipresent belief that the ideal self is gregarious, alpha, and comfortable in the spotlight. The archetypal extrovert prefers action

to contemplation, risk-taking to heed-taking, certainty to doubt. We think that we value individuality, but all too often we admire one type of individual Introversion is now a second-class personality trait. The Extrovert Ideal has been documented in many studies. Talkative people, for example, are rated as smarter, better looking, more interesting, and more desirable as friends. Velocity of speech counts as well as volume: We rank fast talkers as more competent and likeable than slow ones. But we make a grave mistake

to embrace the Extrovert Ideal so unthinkingly. As the science journalist Winifred Gallagher writes, The glory of the disposition that stops to consider stimuli rather than rushing to engage with them is its long association with intellectual and artistic achievement. Neither E = mc squared or Paradise Lost was dashed off by a party animal. Even in less obviously introverted occupations, like finance, politics, and activism, some of the greatest leaps forward were made by introverts figures like Eleanor Roosevelt, Warren Buffett and Gandhi achieved what they did not in spite of but because

of their introversion. Susan Cain, Quiet: The Power of Introverts in a World That Cant Stop Talking 2/year = Legacy. Promotion Decisions life and death

decisions Source: Peter Drucker, The Practice of Management Evaluation. EVALUATING #1 PEOPLE =

DIFFERENTIATOR Source: Jack Welch, now Jeff Immelt on !!!!) GEs top strategic skill ( Self- Evaluation.

To develop others, start with yourself. Marshall Goldsmith How can a high-level leader like _____ be so out of touch with the truth about himself? Its more common than you

In fact, the higher up the ladder a leader climbs, the less accurate his selfassessment is likely to be. would imagine. The problem is an acute lack of feedback [especially on people issues]. Daniel Goleman (et al.), The New Leaders

Everyone thinks of changing the world, but no one thinks of changing himself. Leo Tolstoy The biggest

problem I shall ever face: the management of Dale Carnegie. Dale Carnegie, diary of 1 -Line Bosses (Cadre of) = Productivity Asset st

#1! 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? People leave managers not

companies. Dave Wheeler Is there ONE secret to productivity and employee satisfaction? YES! The Quality of your FULL CADRE of 1st-line Leaders.

Training = Investment #1! In the Army, 3-star generals worry about training. In most businesses, it's a

ho-hum mid-level staff function. Why is intensiveextensive training obvious for the army & navy & sports teams & performing arts not

groups--but for the average business? 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? Gamblin Man Bet: >> 5 of 10 CEOs see training

as expense rather than investment. Bet: >> 5 of 10 CEOs see training as defense rather than offense. Bet: >> 5 of 10 CEOs see training as necessary evil rather than strategic opportunity. Bet: >> 8 of 10 CEOs, in 45-min tour dhorizon of their business, would not mention

training. Addenda: The Mauritius Doctrine On 16 April 2014, I spoke to 1,300 SME chiefs in Mauritius at a conference organized by The National Productivity and Competitiveness Council, and that included the Vice Prime Minister. I upped the stridency of my tone relative not to government actionsbut relative to business obligation to develop its work force. Moreover, I asserted this was as true for a 6-person business as for a 6,000-person outfit. Yes wee companies can (and ought) become training/development maniacs.

Especially in uncertain times which are sapping global employment security, it is the foremost moral responsibility of businesses to abet the radical development of their employees. Honing my new/uncompromising message: National productivity improvement is less about a few giants than about incremental efforts by the great mass of small businesses.

But the truly radical notion is that training & development maniacs applies to the 5-person enterprise as much as it does to the giant. My training (& development) message in general is extreme. Skill Development (Doesnt Grow on Trees)

6/2/3 * Innovation: WTTMSW Plus 1

/48 (No kidding) Lesson48: WTTMS W WHOEVER

TRIES THE MOST STUFF WINS Excellence82: The Bedrock Eight Basics 1. 2.

3. 4. 5. 6. 7. 8. A Bias for Action Close to the Customer

Autonomy and Entrepreneurship Productivity Through People Hands On, Value-Driven Stick to the Knitting Simple Form, Lean Staff Simultaneous Loose-Tight Properties READY. FIRE!

AIM. H. Ross Perot (vs Aim! Aim! Aim!/EDS vs GM/1985) We made mistakes, of course. Most of them were omissions We fixed them by doing it over and over, again and again. We do the same today. While our we didnt think of when we initially wrote the software.

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 EXPERIMENT FEARLESSLY

Source: BusinessWeek, Type A Organization Strategies: How to Hit a Moving Target Tactic #1 RELENTLESS TRIAL AND ERROR Source: Wall Street Journal, Journal, cornerstone of effective approach to rebalancing company portfolios in the face of changing and uncertain global economic conditions (11.08.10)

WE HAVE A STRATEGIC PLAN. ITS CALLED DOING THINGS. Herb Kelleher FAIL. FORWARD. FAST.

High Tech CEO, Pennsylvania WTTMSASTMSUTFW WTTMSASTMSUTFW WHOEVER TRIES THE MOST STUFF

AND SCREWS THE MOST STUFF UP THE FASTEST WINS

We Are What We Eat You will become like the five people you associate with the mostthis can be either a blessing or a curse.

Billy Cox 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 WE ARE THE COMPANY WE KEEP! MANAGE IT! Whos the most interesting person youve met in the

last 90 days? How do I get in touch with them? Fred Smith What is your most marked characteristic? Vanity Fair:

Mike Bloomberg: Curiosity. The Perils of Normalcy Normal = 0

*There are for ZERO 800 normal people in the history books.

Innovate or Die: Measure It! Innovation Index: How many of your Top 5 Strategic Initiatives/Key Projects score 8 or higher [out of 10] on a

Weird/Profound/ Wow/Gamechanger Scale? (At least 3???) Some Value Added Strategies TGRs:

LBTs LITTLE = BIG Big carts = 1.5X Source: Walmart

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 twothirds. Natasha Dow Schull, Addiction By Design: Machine Gambling in Las Vegas 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)

and >TGR [Things Gone WRONG-Things Gone RIGHT] TGRs: 8/80

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, Conveyance: Kingfisher Air Location: Approach to New Delhi May I clean

your glasses, sir? Let me help you down the jetway. BEGINS (and ENDS) It

in the PARKING LOT* 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. 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

! DESIGN Design Rules! APPLE market cap > Exxon Mobil* *August 2011

Design is treated like a religion at BMW. Fortune E.g.

ZERO 2014: excuse for nonexcellent website! DESIGN = THE LAST WORD!

Hypothesis: Men CANNOT design for womens !!?? needs

this will be the womans century I speak to you with a feminine voice. Its the voice of democracy, of equality. that this will be

the womans century. I am certain, ladies and gentlemen, 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) Research suggests that to succeed, start by promoting women. Nicholas Kristof, Twitter, Women, and

Power, NYTimes, 1024.13 Forget CHINA, INDIA and the INTERNET: Economic Growth Is Driven by WOMEN. Source: Headline, Economist

W> 2X (C + I)* *Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could climb as high as $28 trillion

in the next five years. Their $13 trillion in total yearly earnings could reach $18 trillion in the same period. In aggregate, women represent a growth market bigger than China and India 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 Women are THE majority

market Fara Warner/The Power of the Purse Women as Decision Makers/Various sources Home Furnishings 94% Vacations 92% (Adventure Travel 70%/ $55B travel equipment) Houses

91% D.I.Y. (major home projects) 80% Consumer Electronics 51% (66% home computers) Cars 68% (influence 90%) All consumer purchases

83% * Bank Account 89% Household investment decisions 67% Small business loans/biz starts 70% Health Care 80% *In the USA women hold >50% managerial positions including >50% purchasing officer positions;

positions; hence women also make the majority of commercial purchasing decisions. War has broken out over your home-improvement dollar, and Lowes has superpower Home Depot on the defensive. Its not-so-secret ploy: Lure women.

Forbes.com MOST SIGNIFICANT VARIABLE in EVERY The

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

The Perfect Answer Jill and Jack buy slacks in black 2.6 vs. 21

Sales/Aftersales Process 1. 2. 3. 4. 5. Kick-off women Research women

Purchase men Ownership women Word-of-mouth women Source: Marti Barletta ! Women RULE

Research suggests that to succeed, start by promoting women. 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. Source: Nicholas Kristof, Twitter, Women, and Power, NYTimes, NYTimes, 1024.13 AS LEADERS,

WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure TITLE/ Special Report/ BusinessWeek Womens Strengths Match New

Economy Imperatives: Link [rather than rank] workers; favor interactivecollaborative leadership style [empowerment beats top-down decision making]; sustain fruitful collaborations; comfortable with sharing information; see redistribution of power as victory, not surrender; favor multi-dimensional feedback; value technical & interpersonal skills, individual & group contributions equally; readily accept ambiguity; honor

intuition as well as pure rationality; inherently flexible; appreciate cultural diversity. Source: Judy B. Rosener, Americas Competitive Secret: Women Managers Womens Negotiating Strengths *Ability to put themselves in their counterparts shoes *Comprehensive, attentive and detailed

communication style *Empathy that facilitates trust-building *Curious and attentive listening *Less competitive attitude *Strong sense of fairness and ability to persuade *Proactive risk manager *Collaborative decision-making Source: Horacio Falcao, Cover story/May 2006, World Business, Say It Like a Woman: Why the 21st-century negotiator will need the female

touch Warren Buffett Invests Like a Girl: And Why You Should Too Louann Lofton Portrait of a Female Investor 1. Trade less than men do

2. Exhibit less overconfidencemore likely to know what they dont know 3. Shun risk more than male investors do 4. Less optimistic, more realistic than their male counterparts 5. Put in more time and effort researching possible investmentsconsider details and alternate points of view 6. More immune to peer pressuretend to make decisions the same way regardless of whos watching

7. Learn from their mistakes 8. Have less testosterone than men do, making them less willing to take extreme risks, which, in turn, could lead to less extreme market cycles Warren Buffett Invests Like a Girl: And Why You Should Too, Louann Lofton, Chapter 2, The Science Behind the Girl Source: We the

(old farts like me) Got $$$$$$ 1/8/20 Date: 1/1/11

Activity: USA Boomers start turning 65 Rate: 1 EVERY 8 SECONDS Duration: 20 YEARS Impacted: EVERYTHING >[email protected] 0 !!!!!!!!!!!!!!!!!

PEOPLE TURNING 50 MORE THAN HALF OF TODAY HAVE THEIR ADULT LIFE AHEAD OF THEM.

BILL NOVELLI, 50+: IGNITING A REVOLUTION TO REINVENT AMERICA 7/13 Average # of cars purchased per household, lifetime: 13

Average # of cars bought per household after the head of household reaches age 50: 7 Source: Marti Barletta, PrimeTime Women

47X In 2009, households headed by adults ages 65 and older ... had 47 times as much net wealth as the typical

household headed by someone under 35 years of age. In 1984, this had been a less lopsided 10-to-1 ratio. Source: Pew Research/10.11 44-65: NEW CUSTOMER MAJORITY

Source: Ageless Marketing, David Wolfe & Robert Snyder BABY-BOOMER WOMEN: The Sweetest of Sweet Spots for Marketers David Wolfe and Robert Snyder, Ageless Marketing

Success >> Satisfaction M IBM IB to

$55B* *IBM Global Services/ Systems integrator of choice Planetary Rainmaker-in-Chief! [CEO Sam] Palmisanos strategy is to expand techs borders by pushing users and entire industriestoward

radically different business models. The payoff for IBM would be access to an ocean of revenuePalmisano estimates it at $500 billion a year that technology companies have never been able to touch.Fortune Huge: Customer Satisfaction with

product/Service to CUSTOMER SUCCESS PS UPS U

to Big Browns 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 Its all about solutions. We work with customers on creating and running better, stronger, cheaper supply chains. Bob Stoffel, UPS senior exec THE GIANT STALKING BIG OIL: Schlumberger

How Is Rewriting the Rules of the Energy Game.: IPM [Integrated Project Management] strays from [Schlumbergers] traditional role as a service provider and moves deeper into areas once dominated by the majors. Source: BusinessWeek cover story, January 2008

Well do just about anything an oilfield owner would want, from drilling to production. IPMs Chief:

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.

I. LAN Installation Co. II. Geek Squad. (3%) (30%.) III. Acquired by Best Buy. IV. FLAGSHIP OF BEST BUY WHOLESALE SOLUTIONS

STRATEGY MAKEOVER. Era #1/Obvious Value: Our it works, is delivered on time (Close) Era #2/Augmented Value: How our it can add valuea useful it (Solve) Era #3/Complex Value Networks: How

our system can change you and deliver BUSINESS ADVANTAGE (Culture-Strategic change) Source: Jeff Thull, The Prime Solution: Close the Value Gap, Increase Margins, and Win the Complex Sale ! 14,000

20,000 30 2014: Waaaaay Different Ways to Skin a Cat 14,000/eBay 20,000/Amazon 30/Craigslist

HOT Language INSANELY GREAT STEVE JOBS RADICALLY THRILLING BMW Kevin Roberts Credo

1. Ready. Fire! Aim. 2. 3. 4. 5. 6. 7. 8. 9.

If it aint broke ... Break it! Hire crazies. Ask dumb questions. Pursue failure. Lead, follow ... or get out of the way! Spread confusion. Ditch your office. Read odd stuff.

10. AVOID MODERATION! The reasonable man adapts himself to the world. The unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends upon the

unreasonable man. GB Shaw, Man and Superman: The Revolutionists' Handbook 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 We are crazy. We should do something when people say If people say something is good, it means someone else is

already doing it. it is crazy. Hajime Mitarai, Canon Astonish me! Sergei Diaghlev, to a lead dancer Build something great! Hiroshi Yamauchi/CEO Nintendo, to a game

designer Make it immortal! David Ogilvy, to an ad copywriter Raise your sights! Blaze new trails! Compete with the immortals!

David Ogilvy, on Ogilvy & Mathers corporate culture Wanted by Ogilvy & Mather International: Trumpeter Swans David Ogilvy Every project starts with the same question: How can we do what has never been done before? Stuart Hornery, Lend Lease Let us create such a building that future generations will take us for lunatics. church hierarchs at Seville

You cant behave in a calm, rational manner. Youve got to be out on the lunatic fringe. Jack Welch Note: TWO Americans; EIGHT non-Americans (Scotsman, 2 Japanese, Australian, Russian, German, Spaniard, Kiwi) !

! Excellence EXCELLENCE is not an aspiration. EXCELLENCE is THE NEXT FIVE MINUTES. (Or NOT.)

EXCELLENCE. Always. If not EXCELLENCE, what? If not EXCELLENCE now, when?

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