Paul Omerod: “I am often asked … “I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build.
Download ReportTranscript Paul Omerod: “I am often asked … “I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build.
Paul Omerod: “I am often asked … “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 … “I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for Buy a very large one and just wait.” myself?’ The answer seems obvious: —Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics “Data drawn from the real world attest to a fact that is beyond Everything in existence tends to deteriorate.” our control: —Norberto Odebrecht, Education Through Work LONG Re-Imagine: Excellence NOW Tom Peters/20 August 2012 PwC Annual Partners Meeting (slides @ tompeters.com) Service/ Excellence/ Immoderation Service Organizations exist to serve. Period. Leaders live to serve. Period. 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.** **Employees, Customers, Suppliers, Communities, Owners, Temporary partners Excellence1982: 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” “Breakthrough” 82* People! Customers! Action! Values! *In Search of Excellence Hard is Soft. Soft is Hard. EXCELLENCE is not an "aspiration.” EXCELLENCE is … THE NEXT FIVE MINUTES. EXCELLENCE is not an "aspiration." EXCELLENCE is … THE NEXT FIVE MINUTES. EXCELLENCE Or not. EXCELLENCE Or not. EXCELLENCE Or not. EXCELLENCE Or not. EXCELLENCE Or not. EXCELLENCE Or not. EXCELLENCE Or not. EXCELLENCE Or not. EXCELLENCE Or not. EXCELLENCE Or not. EXCELLENCE Or not. EXCELLENCE Or not. is your next conversation. is your next meeting. is shutting up and listening—really listening. is your next customer contact. is saying “Thank you” for something “small.” is the next time you shoulder responsibility and apologize. is waaay over-reacting to a screw-up. is the flowers you brought to work today. is lending a hand to an “outsider” who’s fallen behind schedule. is bothering to learn the way folks in finance [or IS or HR] think. is waaay “over”-preparing for a 3-minute presentation. is turning “insignificant” tasks into models of … EXCELLENCE. EXCELLENCE is … THE NEXT FIVE MINUTES. Or not. EXCELLENCE is a personal choice … not an institutional choice! Immoderation Kevin Roberts’ Credo 1. Ready. Fire! Aim. 2. 3. 4. 5. 6. 7. 8. 9. If it ain’t 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 Word according to Mr. Hilton 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 “When assessing candidates, the first thing I looked for was energy and enthusiasm for execution. Does she talk about the thrill of getting things done, the obstacles overcome, the role her people played —or does she keep wandering back to strategy or philosophy?” —Larry Bossidy, Execution “In real life, strategy is actually very straightforward. Pick a general direction … and implement like hell.” —Jack Welch A Professional Just Like You? “The doctor interrupts after …* *Source: Jerome Groopman, How Doctors Think 18 … seconds! [An obsession with] Listening is ... the ultimate mark of Listening Listening Listening Listening Listening Listening Listening is is is is is is is ... ... ... ... ... ... ... Listening Listening Listening Listening is is is 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 are far better at it than men.) 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 organizational effectiveness.) [cont.] Respect . Listening Listening Listening Listening Listening Listening Listening Listening Listening Listening Listening Listening Listening Listening Listening Listening Listening is is is is is is is is is is is is is is is is is ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... EXECUTION the engine of superior . the key to making the Sale. the key to Keeping the Customer’s Business. Service. the engine of Network development. the engine of Network maintenance. the engine of Network expansion. Social Networking’s “secret weapon.” Learning. the sine qua non of Renewal. the sine qua non of Creativity. the sine qua non of Innovation. the core of taking diverse opinions aboard. Strategy. Source #1 of “Value-added.” Differentiator #1. Profitable.* (*The “R.O.I.” from listening is higher than from any other single activity.) Listening is … the bedrock which underpins a Commitment to EXCELLENCE! If you agree with the above, shouldn’t listening be ... a Core Value? If you agree with the above, shouldn’t listening be ... perhaps Core Value #1?* (*“We are Effective Listeners— we treat Listening EXCELLENCE as the Centerpiece of our Commitment to Respect and Engagement and Community and Growth.”) If you agree, shouldn’t listening be If you agree, shouldn’t listening be #1? If you agree, shouldn’t listening be item” at every Meeting? If you agree, shouldn’t listening be se? (Listening = Strategy.) If you agree, shouldn’t listening be for in Hiring (for every job)? ... a Core Competence? ... Core Competence ... an explicit “agenda ... our Strategy—per ... the #1 skill we look Message: Listening is a … profession! Remember what your grandmother Told You … “Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” —Henry Clay, American Statesman (1777-1852) K=R=P Kindness = Repeat Business = Profit. Kindness … WORKS! Kindness … PAYS! K = R = P/Kindness = Repeat business = Profit Kindness: Kind. Thoughtful. Decent. Caring. Attentive. Engaged. Listens well/obsessively. Appreciative. Open. Visible. Honest. Responsive. On time all the time. Apologizes with dispatch for screw-ups. “Over”-reacts to screw-ups of any magnitude. “Professional” in all dealings. Optimistic. Understands that kindness to staff breeds kindness to others/outsiders. Applies throughout the “supply chain.” Applies to 100% of customer’s staff. Explicit part of values statement. Basis for evaluation of 100% of our staff. R.O.I.R. > R.O.I. Return On Investment In Relationships Cross-border Conversations hundreds of times better here “I am [than in my because of the support system. It’s like you were working in an organism; you are not a single cell when you are out there practicing.’” — prior hospital assignment] quote from Dr. Nina Schwenk, in Chapter 3, “Practicing Team Medicine,” from Leonard Berry & Kent Seltman, from Management Lessons From Mayo Clinic "It became necessary to develop medicine as a cooperative science; the clinician, the specialist, the laboratory workers, the nurses uniting for the good of the patient, each assisting in the elucidation of the problem at hand, and each dependent upon the other for support.” —Dr. William Mayo, 1910 "The personnel committees on all three campuses have become aggressive in addressing the issue of physicians who are not living the Mayo value of exhibiting respectful, collegial behavior to all team members. Some physicians have been suspended without pay or terminated.” —Leonard Barry & Kent Seltman, Management Lessons from Mayo Clinic “Observed closely: The use of ‘we’ ‘I’ or during a job interview.” Source: Leonard Berry & Kent Seltman, chapter 6, “Hiring for Values,” Management Lessons From Mayo Clinic “Allied commands depend on mutual confidence and this confidence is gained, above all development of friendships.” through the —General D.D. Eisenhower, Armchair General* *“Perhaps his most outstanding ability [at West Point] he made friends and earned the trust of fellow cadets who came from widely varied backgrounds; it was a quality that would pay was the ease with which great dividends during his future coalition command.” Never waste a lunch!* *The sacred 220 ABs. “Success doesn’t depend on the number of people you know; it depends on the number of people you know in high places!” or “Success doesn’t depend on the number of people you know; it depends on the number of people you know in low places!” “I got to know his [Icahn’s] secretaries. They are always the keepers of everything.” —Dick Parsons, then CEO Time Warner, on dealing with an Icahn threat to his company “Parsons is not a visionary. He is, instead, a master in the art of relationship.” —Bloomberg BusinessWeek (03.11) Which customers first? “You have to treat your employees like customers.” —Herb Kelleher, upon being asked his “secret to success” Source: Joe Nocera, NYT, “Parting Words of an Airline Pioneer,” on the occasion of Herb Kelleher’s retirement after 37 years at Southwest Airlines (SWA’s pilots union took out a full-page ad in USA Today thanking HK for all he had done) ; across the way in Dallas, American Airlines’ pilots were picketing AA’s Annual Meeting) … no less than Cathedrals in which the full and awesome power of the Imagination and Spirit and native Entrepreneurial flair of diverse individuals is unleashed in passionate pursuit of … Excellence. “Business has to give people enriching, or it's simply not worth doing.” rewarding lives … —Richard Branson "Leadership is a gift. It's given by those who follow. You have to be worthy of it.” —USAF General Mark Walsh 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 longshots (people with “a certain something”) you bet on who surprised themselves—and 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.” The Memories That Matter Belly laughs at some of the stupid-insane things you and your mates tried. Less than a closet full of “I should have …” A frighteningly consistent record of having invariably said, “Go for it!” Not intervening in the face of considerable loss—recognizing that to develop top talent means tolerating failures and allowing the person who screwed up to work their own way through and out of their self-created mess. Dealing with one or more crises with particular/memorable aplomb. CIVILITY Demanding … … regardless of circumstances. Turning around one or two or so truly dreadful situations—and watching almost everyone involved rise to the occasion (often to their own surprise) and acquire a renewed sense of purpose in the process. Leaving something behind of demonstrable-lasting worth. (On short as well as long assignments.) The Memories That Matter Having almost always (99% of the time) put “Quality” and “Excellence” ahead of “Quantity.” (At times an unpopular approach.) A few “critical” instances where you stopped short and could have “done more”—but to have done so would have compromised your and your team’s character and integrity. A sense of time well and honorably spent. The expression of “simple” human kindness and consideration—no matter how harried you may be/may have been. Understood that your demeanor/expression of character always set the tone—especially in difficult situations. Never (rarely) let your external expression of enthusiasm/ determination flag—the rougher the times, the more your expressed energy and bedrock optimism and sense of humor showed. The respect of your peers. A stoic unwillingness to badmouth others—even in private. The Memories That Matter An invariant creed: When something goes amiss, “The buck stops with me”; when something goes right, it was their doing, not yours. A Mandela-like “naïve” belief that others will rise to the occasion if given the opportunity. A reputation for eschewing the “trappings of power.” (Strong selfmanagement of tendencies toward arrogance or dismissiveness.) Intense, even “driven” … but not to the point of being careless of others in the process of forging ahead. Willing time and again to be surprised by ways of doing things that are inconsistent with your “certain hypotheses.” Humility in the face of others, at every level, who know more than you about “the way things really are.” Bit your tongue on a thousand occasions—and listened, really really listened. (And been constantly delighted when, as a result, you invariably learned something new and invariably increased your connection with the speaker.) The Memories That Matter Unalloyed pleasure in being informed of the fallaciousness of your beliefs by someone 15 years your junior and several rungs below you on the hierarchical ladder. Selflessness. (A sterling reputation as “a guy always willing to help out with alacrity despite personal cost.”) As thoughtful and respectful, or more so, toward thine “enemies” as toward friends and supporters. Always and relentlessly put at the top of your list/any list being first and foremost “of service” to your internal and external constituents. (Employees/Peers/ Customers/Vendors/Community.) Treated the term “servant leadership” as holy writ. (And “preached” “servant leadership” to others—new “non-managerial” hire or old pro, age 18 or 48.) The Memories That Matter Created the sort of workplaces you’d like your kids to inhabit. (Explicitly conscious of this “Would I want my kids to work here?” litmus test.) A “certifiable” “nut” about quality and safety and integrity. (More or less regardless of any costs.) A notable few circumstances where you resigned rather than compromise your bedrock beliefs. Perfectionism just short of the paralyzing variety. A self- and relentlessly enforced group standard of “EXCELLENCE-in-all-we-do”/“EXCELLENCE in our behavior toward one another.” Joe J. Jones 1942 – 2010 Net Worth $21,543,672.48 From sweaters to people! Les Wexner: Andrew Carnegie’s 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 starts at home “Being aware of yourself and how you affect everyone around you is what distinguishes a superior leader.” —Edie Seashore (Strategy + Business #45) “How can a high-level leader like _____ be so out of touch with the truth about himself? It’s In fact, the higher up the ladder a leader climbs, the less accurate his selfassessment is likely to be. more common than you 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 You are What You Eat “You will become like the five people you associate with the most—this 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’ ” “Who’s the most interesting person you’ve met in the last 90 days? How do I get in touch with her or him?” —Fred Smith Vanity Fair: “What is your most marked characteristic?” Mike Bloomberg: “Curiosity.” “There is not a sprig of grass that shoots uninteresting to me.” —Thomas Jefferson “Do one thing every day that scares you.” —Eleanor Roosevelt “The Bottleneck … “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 /46 Lesson46: WTTMTW Whoever Tries The Most Things Wins Better yet: WTTMTTFW Whoever Tries The Most Things The Fastest Wins “You miss 100% of the shots you never take.” —Wayne Gretzky In Search of Excellence /1982: 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 14,000 20,000 30 14,000 20,000 14,000/eBay 20,000/Amazon 30/Craigslist “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 “We all agree your theory is crazy. The question, which divides us, is whether it is crazy enough.” —Niels Bohr, to Wolfgang Pauli “There’s no use trying,’ said Alice. ‘One cannot believe impossible things.’ ‘I daresay you haven’t had much practice,’ said the Queen. ‘When I was your age, I always did it for half an hour a day. Why, sometimes I’ve believed as many as six impossible things before breakfast.’” — Lewis Carroll Where’s your “Craig’s List Every project: [WOW!] option”? Obvious “Forget China, India and the Internet: Economic Growth Is Driven by Women.” Source: Headline, Economist W = 28T > 2(C + I)* *Women = $28 trillion > twice China + India combined “AS LEADERS, WOMEN RULE: New Studies find that female managers outshine their male counterparts in almost every measure” TITLE/ Special Report/ BusinessWeek GREAT Professional Service Firms 1. Stunning commitment to integrity. 2. Counselors/trusted advisors first. not not not not 3. We are in a commodity business. (If it is a “commodity business,” then I/Tom Peters am a commodity?) 4. 5. 6. 7. 8. listeners Stellar —to our Clients. Stellar listeners—to our fellow partners. Stellar listeners—to our most junior associates. (!!!!!) Stellar listeners—to every member of staff. Insatiable curiosity marks 100% of us. Extreme Service 9. We live to serve/ ethic. 10. Our leaders are servant leaders. (Every partner is a leader/servant leader first.) 11. Deeply ingrained sense of fairness. 12. Hustlers—but thoughtful to a fault! 13. “Service ethic” means … service to one another as much as service to clients! 14. Drop everything to assist a colleague in need—central to our overall ethos. 15. A compensation scheme that unmistakably and visibly and dramatically rewards partner co-operation in developing and serving and retaining clients. Toss “lousy colleagues” [bad teammates] out on their derrieres. 16. We will not tolerate less than class-A supportiveness; we will toss out top “rainmakers” who do not subscribe to our abiding teamwork ethic. Intellectual point of view that is Distinct/Exciting/Constantly refreshed. 17. 18. We listen intently, but we also push our clients to explore significantly new approaches to doing business. 19. We insist, as best we can, that every client consider and test discontinuous change. 20. We understand that implementing our advice may require “culture change” in the client’s operation; we will leave a practical framework-process behind to help the client embrace and execute such excruciatingly difficult change. 21. We will stretch our clients to the limits—but not suggest actions that are beyond the reach of implementation in the mid-term future. (“Never give an order that cannot be obeyed.”—MacArthur.) 22. We will intimately assist the client in achieving nearterm “small wins” that signify and exemplify the changes the client intends to embrace. 23. Every partner must have a point of view of note—and a point of view that is recognized far beyond our firm’s borders. The definition of the very best partners is that they are “insanely great” (thanks, Steve Jobs) mentors! 24. 25. Equal compensation/recognition to top “rainmakers,” “intellectuals,” and “magical mentors.” 26. We are all “rainmakers”—responsible for making it clear to the client that he-she made a great decision in associating with us. Invest heavily in ideas—this means significant time and $$$$$$$. 27. 28. Invest heavily in training and retraining. (Our training will feature working with clients to implement our ideas, the managerial aspect of directing client engagements, the theory and art and practice of leadership, listening and presenting, and understanding the “business principals” that are essential to our economic survival.) 29. Technology pioneers. (Yes, “pioneers.”) A decent/significant share of oddballs/disturbers-of-the-peace. (Often 30. irritating people; get over it.) 31. Relatively high turnover and very high diversity (background, gender, etc.) in top leadership posts and committees. 32. Quality >> Quantity. (Big is fine as a byproduct of Great Work. “Big for big’s sake” is un-fine; economies of scale are over-rated.) 33. Significant portfolio of “interesting” clients. (I.e. clients that lead us-drag us into new pastures.) 34. A clear understanding that the “middle market” is often the key to success and vitality—we will not be conned by some specious/ego-centric need to be associated with the likes of the “Fortune 100.” 35. Willingness to dump bad-demotivating-enervating clients (even big ones). 36. Understand that we are running a for-profit enterprise. Cash flow matters! (A lot.) 37. In love with our work! (Expunge those who are not in love with their work—dump the burnouts.) 38. Sense of fun. (Yes, damn it.) (Make it a fun place to work—David Ogilvy.) 39. Professional to a fault (we love the word “professional”) …. but not pompous. 40. “d”iversity—diversity of every flavor one can imagine. 41. Notable-visible respect for the ideas of young associates. (!!!!!!) 42. Practice-as-teamwork. (Teammate-ism rewarded, lack thereof punished with extreme prejudice.) 43. Deep bench. “Supporting cast,” notably starting with receptionist, must be of same quality as partners—there are no “bit players” in our business! 44. Age gracefully gives way to youth—regeneration a deep-seated guiding belief. 45. Youth gracefully gives way to age—our most effective elders have much to teach us when, especially, it comes to client retention. 46. Hard work expected and cherished—workaholism for workaholism’s sake assiduously guarded against. 47. Proud of our culture, guard our culture zealously—but even “great cultures” age. (And at the least become horribly elaborated.) 48. Rigorous evaluations of client satisfaction by more or less disinterested parties. 49. Sky-high time investment in our evaluation process. 50. My legacy (as a partner) is: Being “of service.” Developing people. Being a good colleague—which absorbed lots of my time. Doing consistently superior (sky high) quality work. Adding materially to the ideas base of the Firm. Insuring the continuity of the firm— culturally and financially. Being a paragon of integrity and decency. Leaving gracefully. 51. “Execution is strategy.” (Thanks, Fred Malek.) 52. My word is my bond. Wow! (Why not? What else?) 54. Excellence! PERIOD! (Why not? 53. What else?) “Be the best. It’s the only market that’s not crowded.” 55. —George Whalin 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 Excellence. Always. If not Excellence, what? If not Excellence now, when?